Newly Listed Company Introduction Report (Issued by The Stock Research Center)

EDP (7794 TSE Growth) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - July 7 ,2022
Leveraging AIST patents to manufacture and sell diamond seeds for jewelry
This report is an English translation of part of the report issued on July 1, 2022.
For inquiries concerning the report, please contract info@stock-r.org【7794 EDP Sector：Other Products】
Fiscal YearNet sales

YoY

OperatingprofitYoY

Ordinary
profitYoYProfitYoY

EPSBPSDPS(mn yen)(%)(mn yen)(%)(mn yen)(%)(mn yen)

(%)

(yen)

(yen)

(yen)

Mar.2021

1,139

61.9

267

250.2

270

265.2

253

166.5 131.5

762.1

0.0

Mar. 2022

1,562

37.1

520

94.4

527

95.0

374

48.0 174.1

-0.0

2,415

55.0

762

46.3

737

43.6

486

24.6 197.5-0.0

Mar. 2023

fNote: Non-consolidated basis. Figures for the fiscal year ending March 2023 are the company's forecasts.
It conducted 1-to-100 stock split on November 18, 2021. Per share indicies are adjusted retroactively.

Conducts Diamond Single Crystal Manufacturing, Sales, and Development
Business
EDP Corporation is in the business of manufacturing, selling, and developing diamond
single crystals, which are synthetically fabricated and sold for the jewelry and electronicmaterials fields.
The company was established in September 2009 for the purpose of commercializing thelarge diamond single crystal production technology developed by the National Institute ofAdvanced Industrial Science and Technology (AIST). President and representative director
Naoji Fujimori served as the director of the Diamond Research Center at AIST prior tofounding EDP.
In addition to jewelry applications, diamonds are widely used as abrasive grains for thecutting and polishing of hard materials such as stone, due to their high hardness.
Diamonds are generally considered to occur in nature, but the fact is that most of theindustrial diamonds in use today are created through artificial synthesis. Natural diamonds
had traditionally been used in jewelry, but synthetic diamonds began to appear about 10years ago and a substantial amount of synthetic jewels are sold in jewelry stores and online
today. Such synthetic jewels are called laboratory-grown diamonds (LGDs).

Product Offerings
The company offers products in four categories. The product categories are the Synthetic
Jewel/Diamond Seeds, which are the raw materials for LGD production, theSemiconductor/Diamond Substrates for semiconductor substrate materials, etc., theApplication Product/Heat Spreaders, Optical Windows, such as X-ray and infrared lightwindow materials and heat sinks to remove heat from devices, and the Cutting
Tool/Diamond Tool Blanks, which includes precision processing cutting tools. TheSynthetic Jewel/Diamond Seeds accounted for 93.5% of net sales for the first threequarters of fiscal year ended March 2022, the Semiconductor/Diamond Substrates for
2.7%, Application Product/Heat Spreaders, Optical Windows for 1.9%, and Cutting
Tool/Diamond Tool Blanks for 1.9%.

Newly Listed Company Introduction Report

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not be copied, reprinted, quoted, etc. without permission.

Newly Listed Company Introduction Report (Issued by The Stock Research Center)

EDP (7794 TSE Growth) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - July 7 ,2022
Financial Statements

Statement of income

Fiscal Year

Mar.2020(mn yen)Mar.2021(%)(mn yen)Mar. 2022(%)(mn yen)(%)

Net sales

704

100.0

1,139

100.0

1,562

100.0

Cost of sales

475

67.5

670

58.8

723

46.3

Gross profit

228

32.5

469

41.2

839

53.7

Selling, general and administrative expenses

152

21.6

201

17.7

318

20.4

Operating profit

76

10.8

267

23.552033.3

Non-operating income

0-

13-

29-

Non-operating expenses

2-

10-

21-

Ordinary profit

74

10.5

270

23.8

527

33.8

Profit before income taxes

74

10.5

268

23.6

516

33.1

Net profit

95

13.5

253

22.2

374

24.0

Balance sheet

Fiscal Year

Mar.2020(mn yen)Current assets

Mar.2021(%)(mn yen)Mar. 2022(%)(mn yen)

(%)

585

37.8

1,186

52.0

1,418

50.3

372

24.0

948

41.6

1,066

37.9

Accounts receivable-trade

63

4.1

100

4.4

137

4.9

Inventories

107

7.0

104

4.6

171

6.1

963

62.21,094

48.0

1,398

49.7

897

57.9

1,002

44.0

1,335

47.4

6

0.4

6

0.3

5

0.2

Cash and deposits

Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets
Current liabilities

60

3.9

85

3.7

57

2.0

1,549

100.0

2,280

100.0

2,817

100.0

251

16.3

344

15.1

357

12.7

Accounts payable - trade

100.7

10

0.5

18

0.6

Current portion of long-term borrowings

48

3.1

190

8.3

89

3.2

Accounts payable

157

10.1

61

2.7

96

3.4

Non-current liabilities

401

25.9

300

13.2

415

14.7

363

23.5

261

11.5

350

12.4

895

57.8

1,634

71.7

2,045

72.6

895

57.8

1,634

71.7

2,045

72.6

Long-term borrowings
Net assets
Owners' equity

Mar.2020

Mar.2021

Mar. 2022(mn yen)(mn yen)(mn yen)

191

440

635

159

195

231

Cash flows from investing activities-434-401-545

Cash flows from financing activities

309

525

15---

Net increase in cash and cash equivalents

68575

118

Cash and cash equivalents

372

948

1,066

Statement of cash flows

Fiscal Year

Cash flows from operating activities
Depreciation

Dividends paid

Note:Non-consolidated basis.
Source: Prepared by Stock Research Center based on the notifiable prospectus.

Newly Listed Company Introduction Report

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The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
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no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

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