Consolidated Financial Results < under Japanese GAAP >For Nine Months Ended December 31 ,2023
February 9 ,2024

Company name:
Listing:
Securities code:
URL:
Representative:

Kitagawa Corporation
Tokyo Stock Exchange
6317
https://www.kiw.co.jp/
Yuji Kitagawa, Representative Director, Chairman, President and Executive Officer
Hiroshi Kitagawa, Representative Director & Vice Chairman and Executive Officer,
Inquiries:
General Manager of Business Management Division
Telephone:+81-847-45-4560
February 9 ,2024
Scheduled date to file quarterly securities report:―Scheduled date to commence dividend payments:No
Preparation of supplementary material on quarterly financial results:
NoHolding of quarterly financial results briefing:(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for nine months ended December 31 ,2023(from April 1 ,2023 to December 31 ,2023)（1）Consolidated operating results(％ indicate change from same period of the previous fiscal year.)Net sales

Operating profit

Millions of yen
Nine Months ended% Millions of yen%
December 31 ,2023
45,7898.3
1,204―December 31 ,2022
42,2732.8(380)―
Comprehensive income :For nine months ended December 31 ,2023
NoteMillions of yen

1,834
253

For nine months ended December 31 ,2022

Basic earnings
per share

Nine Months ended
December 31 ,2023
December 31 ,2022

Diluted earnings
per shareYen
154.60(39.68)

Profit attributable toowners of parent

Ordinary profit% Millions of yen
622.4
1,427
(84.7)(367)
2,545 million yen
2,073 million yen
Ratio of ordinary
profit to total assets

Return on equity

Yen
―
―%
3.8(1.0)%――
22.8 %
53.0 %

Ratio of operating
profit to net sales

%
2.4
0.3%
2.6(0.9)(2) Consolidated financial position
Total assets
As ofDecember 31 ,2023
March 31 ,2023
Reference:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%yen

79,771
74,48039,23637,066

49.2
49.5

4,249.97
3,993.20

EquityAs of December 31 ,2023

39,230 million yen

As of March 31 ,2023

36,864 million yen

2. Dividends
dividends per share
AnnualPayout ratio（consolidated）

Dividends to netassets(consolidated)

End of 2Q

End of 3Q

YenYen

Yen

Yen

Yen

Millions of yen%%

FY March 2023

―

30.00

―

0.00

30.00

276―

0.8

FY March 2024
FY March 2024
(forecast)

―0.00

―

025.9

1.0Note:Year-end

Total dividends
paid（annual）

End of 1Q

40.00

Revisions to the forecast of cash dividends most recently announced:

40.00

33.6
Yes

－1－3. Consolidated Financial Forecast(April 1 ,2023 through March 31 ,2024)(％ indicate change from full of the previous fiscal year.)Net sales
Millions of yen

Full year
Note:61,450Operating income%
2.9%1,250 541.2

Millions of yen

Profit attributable toowners of parent

ordinary income
Millions of yen

1,850%
78.8

Revisions to the financial results forcast announced most recently:

Millions of yen

1,100%―

yen

119.16

Yes

Notes
Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in(1)
scope of consolidation):
Newly included:
Excluded: ―Profit per share

No―

(2)

Accounting policies adopted specially for the preparation of quarterly consolidated finaicial statements:

No(3)Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations:(ii) Changes in accounting policies due to other reasons:(iii) Changes in accounting estimates:(iv) Restatement:

NoNo
NoNo

(4)

Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of December 31 ,2023
As of March 31 ,2023

9,650,803
9,650,803

shares420,062
419,082

shares9,231,252
9,264,468

sharesshares(ii) Number of treasury shares at the end of the period
As of December 31 ,2023
As of March 31 ,2023

shares(iii) Average number of shares outstanding during the period
For nine months ended December 31 ,2023
For nine months ended December 31 ,2022

sharesQuarterly financial results reports are not audited by certified public accountants or auditing firms.
Explanation for the appropriate use of performance forecasts and other special notes:
The statements regarding forecast of financial results in this report are based on the information that is available, as well asestimates, assumptions and projections that are believed to be reasonable at the time of publication, and they are not meant to be acommitment by the Company. Therefore, there might be cases in which actual results differ from forecast values.

－2－Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofAssets
Current assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assetsNon-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Total non-current assets
Total assets－3－

March 31,2023

December 31 ,2023

8,413
12,605
6,502
3,979
4,687
3,038
810
(18)
40,018

9,906
10,640
7,160
4,560
7,075
3,192
1,017
(16)
43,536

6,635
12,083
6,912
25,631

7,552
12,217
6,384
26,154

―
604
604
8,226
34,46174,480

644
571
1,216
8,864
36,23579,771

(Millions of yen)
As ofLiabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for product warranties
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Provision for environmental measures
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－4－March 31,2023

December 31 ,2023

5,314
6,761
3,810
―
2,359
279
547
99
24
4,730
23,927

4,451
6,578
5,435
104,389
364
151
48―
4,828
26,257

―
7,514
30
5,241
699
13,48637,413

5
7,513
29
5,534
1,195
14,27740,5358,640
5,084
20,103(793)
33,034

8,640
5,080
21,346(794)
34,273

1,579
2,259
(9)
3,829
202
37,06674,480

1,705
3,220
30
4,957
5
39,236
79,771

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income( Consolidated Statements of Income)(Millions of yen)
For the nine months ended
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Gain on sale of scraps
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Provision for product warranties
Restructuring expenses
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent－5－

December 31 ,2022

December 31 ,2023

42,27337,893
4,379
4,759
(380)

45,78939,666
6,123
4,919
1,204

39
111
202
114
150
133
751

87
94
113
237
189
212
934

115
2
117
253

228
75
304
1,834

98
―
―
98

―
587
105
693

20
172
16
241
450
(97)
154
267
422
(519)
(152)
(367)

―
223
―
―223
2,303
560
343
904
1,399
(27)
1,427

( Consolidated Statements of Comprehensive Income)(Millions of yen)
For the nine months ended
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests－6－December 31 ,2022

December 31 ,2023(519)

1,399

202
2,232
89

126
938
41

68

39

2,593
2,073

1,146
2,545

1,939
134

2,555(9)Segment Information
Industry Segment Information
Since the first quarter of the current consolidated fiscal year, the order in which segment information are listed has been changed.
Accordingly, the order in which segment information are listed for the third quarter of the previous fiscal year has been changed in the same manner.
The nine months ended December 31 ,2022
1.Sales and Profit or Loss by reportable segments(Millions of yen)
Reportable segment
Kitagawa
GlobalhandCompanyKitagawa
SunTechCompany

Kitagawa
MaterialTechnologyCompany

OtherTotalTotal

Net sales
7,250

Unaffiliated customers

Operating profit (loss)

19,49642,03842,273

70

128

135

0

135

15,291

19,62442,173235

42,409890

1,016(1,713)

193

(139)

53

2.Difference between reportable segment total and consolidated financial statement amounts and main factors in the difference(related to difference adjustment)(Millions of yen)
Earnings

Nine months ended December 31 ,2022

Reportable segment total

193

Earnings for Other(139)

Corporate expenses（note）(434)

Operating profit in consolidated financial statements

(380)

Note:

235

7,258

Intersegment
Total

15,291

Corporate expenses are expenses of administrative divisions of company that are not attributable to reportable segments.

－7－

The nine months ended December 31 ,2023
1.Sales and Profit or Loss by reportable segments(Millions of yen)
Reportable segment
Kitagawa
GlobalhandCompany

Kitagawa
SunTechCompany

Kitagawa
MaterialTechnologyCompany

Other

Total

Total

Net sales
6,954

Unaffiliated customers

Operating profit (loss)

22,26044,721

1,068900112

202

―202

15,507

22,372

44,923

1,068

45,992

581

933

198

1,713

71

1,784

2.Difference between reportable segment total and consolidated financial statement amounts and main factors in the difference(related to difference adjustment)(Millions of yen)
Earnings

Nine months ended Decemner 31 ,2023
1,713

Reportable segment total

71

Earnings for Other
Corporate expenses（note）(580)

Operating profit in consolidated financial statements

1,204

Note:

45,7897,044Intersegment
Total

15,506

Corporate expenses are expenses of administrative divisions of company that are not attributable to reportable segments
and include expenses related to the acquisition of shares of subsidiaries.

3.Information on Impairment Loss on Fixed Assets and Goodwill, etc. by Reportable Segments(Significant Changes in the amount of Goodwill)
In "Other" category, Goodwill increased due to the acquisition of Kemet Japan Co.,Ltd. and System Seiko Co.,Ltd. as subsidiaries during the second
quarter of the current fiscal year through the acquisition of their shares.The increase in goodwill amounted to 666 million yen in thethird quarter of the current fiscal year.
This amount is tentatively calculated since the allocation of the acquisition cost has not been completed as of the end of the third quarterof the current consolidated fiscal year.

－8－