Consolidated Financial Results (Japanese Accounting Standards) for the First Three
Quarters of the Fiscal Year Ending March 31, 2024
February 8, 2024
Company name:

Ahresty Corporation

Code Number:5852

URL: https://www.ahresty.co.jp

Representative:(Title)President & COO

Contact for inquiries: (Title)
Planned date for filing ofquarterly securities report:

Stock Exchange Listing: Tokyo(Name) Shinichi Takahashi

Director and Managing Executive Officer,(Name) Hideki Nariya

Chief of General Administrative Command

TEL +81-3-6369-8660

Planned date for start of

February 8, 2024

dividend payment:

Supplementary documents for quarterly results:

Yes

Quarterly results briefing:No－(Amounts of less than 1 million yen are rounded off.)
1. Consolidated results for the first three quarters of the year ending March 2024 (from April 1, 2023 to December 31, 2023)(1) Consolidated operating results (for the nine months ended December 31, 2023)(% shows year-on-year change from previous year)
Net salesFirst three quarters of year
ending March 2024
First three quarters of year
ended March 2023
(Notes) 1. Comprehensive income:Operating income

Net income attributable toowners of parent

Recurring income

million yen%

million yen%

million yen%

million yen%

118,812

13.8

1,642

－

1,813

－

1,255

－

104,379

24.7

(466)

－

(118)

－

(475)

－

First three quarters of year ending March 2024: 5,664 million yen (-7.9%)
First three quarters of year ended March 2023: 6,151million yen (－%)

(Reference) EBITDA:
First three quarters of year ending March 2024: 11,172 million yen (22.0%) First three quarters of year ended March 2023: 9,155 million yen(43.3%)* EBITDA = operating income + depreciation and amortization

Net income per share

Fully diluted net income per share

yen

yen

First three quarters of year ending March 2024

48.79

48.47

First three quarters of year ended March 2023

(18.36)－(2) Consolidated financial position
Total assets

Net assets

Equity ratio

million yen

million yen%

First three quarters of year ending March 2024

142,259

61,486

43.1

Year ended March 2023

137,069

56,64941.2(Reference) Shareholders’ equity: First three quarters of year ending March 2024: 61,368 million yen Year ended March 2023: 56,527 million yen

2. Dividend payments
Dividend per share
End of first quarter
Year ended March
2023
Year ending March
2024
Year ending March2024 (Forecast)End of second quarterEnd of third quarter

yen

yen

yen

yen

yen

－

5.00

－

5.00

10.00

－

10.00

－
10.00

20.00

(Note) Revisions to dividend forecast published most recently:

No

- 1 -

End of year

For the year

3. Forecast of consolidated results for year ending March 2024 (from April 1, 2023 to March 31, 2024)(% shows the year-on-year change)
Net sales

Operating income

Recurring income

Net income
attributable to ownersof parent

Net income per
sharemillion yen%

million yen%

million yen%

million yen%

yen

155,000

10.0

2,400

－

2,200

－

1,400

－

54.16

Full year(Notes) 1. Revisions to consolidated results forecast published most recently: No* Notes:(1) Significant changes to subsidiaries during the current term (changes for a specified subsidiary accompanying achange in the scope of consolidation): No(2) Application of specific accounting treatment to the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies and changes in or restatement of accounting estimates(i)

Changes in accounting policies associated with revision of accounting
standards, etc.:

No(ii) Changes in accounting policies other than (i):No

(iii) Changes in accounting estimates:No(iv) Restatement:No(4) Number of shares outstanding (Common stock)(i)

Number of shares outstanding at endof period (including treasury shares)

3Q of year ending
March 2024

26,076,717 sharesYear ended March
2023

26,076,717 shares(ii)

Number of treasury shares at end of

3Q of year ending
March 2024

744,415 sharesYear ended March
2023

149,822 shares

3Q of year ending
March 2024

25,725,483 shares

3Q of year ended
March 2023

25,906,263 sharesperiod(iii) Average number of shares (for first
three quarters)*

Quarterly consolidated financial statements are placed outside the scope of quarterly reviews performed by a certified
public accountant or an audit corporation.

*

Explanation for appropriate use of financial forecasts and other special remarks
The forecasts presented herein are based on information currently available and certain assumptions deemed
reasonable by the Company, and actual results may differ significantly from these forecasts due to various factors.
For notes on the use of the business forecasts and assumptions as the basis for the results forecasts, please see “1.
Qualitative Information on Consolidated Operating Results, etc. for First Three Quarters (3) Explanation ofConsolidated Earnings Forecasts and Other Information for Future Outlook” on page 3 of the accompanying
materials.

- 2 -Accompanying Materials - Contents
1. Qualitative Information on Consolidated Operating Results, etc. for First Three Quarters

2(1) Qualitative Information on Operating Results2(2) Qualitative Information on Financial Position

3(3) Qualitative Information on Consolidated Earnings Forecasts and Other Information for Future Outlook

3

2. Consolidated Quarterly Financial Statements and Key Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income

6

Quarterly Consolidated Income Statement
First Three Quarters

6

Quarterly Consolidated Statement of Comprehensive Income
First Three Quarters

7(3) Notes

8(Notes on Going Concern Assumption)

8(Notes on Significant Change in Amount of Shareholders’ Equity)

8(Segment Information, etc.)

9(Important Subsequent Events)

10

- 3 -

1. Qualitative Information on Consolidated Operating Results, etc. for First Three Quarters(1) Qualitative Information on Operating Results
During the first three quarters of the consolidated fiscal year under review, the world economy continued to see a slowdown due
to factors such as the ongoing high raw material and energy prices, continued tight monetary policies by central banks of various
countries, and the stagnant recovery of the Chinese economy. In the U.S., while the significant raising of the interest rate affected
the overall economy, workforce shortages in the labor market and supply constraints in the supply chain eased, simultaneously
accelerating the normalization of economic activities and the rapid slowdown of inflation. The U.S. economy is therefore
expected to avoid negative growth despite the ongoing slowdown trend. As for the Chinese economy, a slowdown in growth
seems inevitable against the backdrop of the prolonged weakness in consumer confidence, the U.S.-China conflict, andadjustments in the real estate sector. The Japanese economy is also expected to recover only moderately due to a lull in therecovery in service consumption and inbound demand, as well as a slowdown in overseas economies and sluggish growth in net
employment compensation.
Under these economic circumstances, during the first three quarters of the consolidated fiscal year under review, the Ahresty
Group’s business performance continued to be on a recovery track due to the recovery in the volume of orders received in linewith the global easing of the shortage of semiconductors in car production. In Asia, we faced difficulty due to the impact of theintensification of competition between Japanese automobile companies and local manufacturers in the Chinese market. However,overall, we achieved surpluses in all segments for the third quarter alone. In addition, we were able to record surpluses for
operating income, recurring income, and net income thanks to the advancement in the shift of the rise in energy prices into selling
prices. Seeing the recovery in the volume of orders received, the Ahresty Group continued efforts to establish an efficient
production system, reduce capital investment by promoting the utilization of idle internal facilities, etc., and strengthen its
business structure through starting or expanding businesses with companies with an advantage in parts for electric vehicles.
Starting from the previous consolidated fiscal year, the Ahresty Group has promoted its 10-year Business Plan, a long-term
management plan toward fiscal 2030, and the 2224 Medium-Term Management Plan, the milestone plan for the first three yearsof the 10-year Business Plan. Under the 2224 Medium-Term Management Plan, in response to changes in the external
environment, such as the acceleration of electrification of automobiles and moves toward carbon neutrality, we set “establishing
low-cost, highly productive MONOZUKURI,” “reducing CO2 emissions in production,” and “shifting the business portfolio to
predominantly parts for electric vehicles” as the pillars of our strategy. Based on these pillars, we are making efforts to secure
net sales, improve productivity, and enhance our earnings strength. Furthermore, we formulated financial strategies for the 10year Business Plan in June last year, aiming to achieve, in addition to the income targets that had already been released, an equity
ratio of 40%, a dividend payout ratio of 35%, capital investment of 140 billion yen, and an ROE of 9%, as the four pillar financial
targets for the period of the 10-year Business Plan.
Consequently, for the first three quarters of the consolidated fiscal year under review, the Group recorded net sales of¥118,812 million (up 13.8% year on year), operating income of ¥1,642 million (an operating loss of ¥466 million for the first
three quarters of the previous year), recurring income of ¥1,813 million (a recurring loss of ¥118 million for the first threequarters of the previous year), and net income attributable to owners of parent of ¥1,255 million (a net loss attributable to ownersof parent of ¥475 million in the first three quarters of the previous year).
Operating results by segment are as follows:(i) Die Casting Business: Japan
In the Japanese automobile market, as car production recovered due to the stabilization of supply of semiconductors,
resulting in an increase in the volume of orders received, our net sales increased to ¥47,910 million (up 8.9% year on year).
On the profitability side, despite the ongoing high energy prices, etc., the segment recorded a profit of ¥598 million (up266.0% year on year) due to the recovery in orders received.
(ii) Die Casting Business: North America
In the automobile market in North America, as car production recovered due to the stabilization of supply of semiconductors,
resulting in an increase in the volume of orders received, our net sales increased to ¥35,447 million (up 32.2% year on year).
On the profitability side, despite an increase in manufacturing costs due to the rise in labor costs, etc., the segment recorded
a profit of ¥948 million (a segment loss of ¥926 million was recorded a year earlier) due to the recovery in orders received,
which was associated with a recovery in production.
(iii) Die Casting Business: Asia
In the automobile market in Asia, despite an increase in the volume of orders received thanks to the start of mass productionof new products at our plant in India, net sales decreased 0.3% year on year to ¥24,912 million due to a decline in the volume- 4 -of orders received in China, reflecting stagnant sales of our major customers in the Chinese market. On the profitability side,
the segment recorded a loss of ¥850 million (a segment income of ¥23 million was recorded a year earlier) due to the decreasein orders received associated with a decrease in production in China and the impact of higher costs pertaining to the ongoing
instability in production of some products in India.
(iv) Aluminum BusinessIn the Aluminum Business, the sales weight decreased 12.0% year on year. Net sales decreased 10.1% year on year to ¥5,417
million due to the decline in aluminum prices. On the profitability side, the segment recorded a profit of ¥130 million (down
44.5% year on year) due to the impact of the decrease in sales weight.
(v) Proprietary Products BusinessIn the Proprietary Products Business, net sales increased 99.1% year on year to ¥5,125 million, mainly reflecting an increasein orders for projects for the main customers, such as a clean room at a semiconductor-related company. On the profitability
front, the segment achieved a stable profit of ¥741 million (up 370.1% year on year) partly due to the increase in net sales.
(2) Qualitative Information on Financial Position(i) Assets, liabilities and net assets(Assets)
Total assets at the end of the consolidated third quarter under review increased by ¥5,189 million from the end of the previous
consolidated fiscal year, to ¥142,259 million. Current assets stood at ¥62,320 million, an increase of ¥1,020 million from the endof the previous consolidated fiscal year. This was mainly due to an increase of ¥3,381 million in notes and accounts receivable
despite decreases of ¥2,102 million in cash and time deposits and ¥294 million in inventories. Fixed assets were ¥79,938 million,up ¥4,169 million from the end of the previous consolidated fiscal year. This was due chiefly to an increase of ¥3,117 million intangible fixed assets.
(Liabilities)
Liabilities at the end of the consolidated third quarter under review increased ¥353 million from the end of the previous
consolidated fiscal year to ¥80,773 million. Current liabilities stood at ¥58,952 million, a decrease of ¥324 million from the endof the previous consolidated fiscal year. The principal factors contributing to this result included increases of ¥2,484 million innotes and accounts payable, ¥987 million in advances received included in Others, ¥843 million in obligations for equipment
also included in Others, ¥476 million in accrued consumption taxes and others, ¥414 million in accrued expenses, and ¥378
million in accounts payable, in contrast to decreases of ¥4,689 million in short-term loans payable, ¥726 million in the current
portion of long-term loans payable, and ¥477 million in bonus allowances. Long-term liabilities stood at ¥21,820 million, an
increase of ¥677 million from the end of the previous consolidated fiscal year. This was mainly due to an increase of ¥531 million
in long-term loans payable.
(Net assets)
Net assets at the end of the consolidated third quarter under review increased ¥4,836 million from the end of the previous
consolidated fiscal year, to ¥61,486 million. This was attributable primarily to increases of ¥869 million in retained earnings and¥4,275 million in foreign currency translation adjustments.
As a result, the equity ratio was up from 41.24% at the end of the previous consolidated fiscal year to 43.14%.

(3) Qualitative Information on Consolidated Earnings Forecasts and Other Information for Future Outlook
No changes have been made to the consolidated financial forecasts announced on October 25, 2023 for the full-year forecasts
for the fiscal year ending March 31, 2024.

- 5 -2. Consolidated Quarterly Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheet(Million yen)
Consolidated first three quarters
Previous consolidated fiscal year
under review(March 31, 2023)(December 31, 2023)(Assets)
Current assets
Cash and time deposits
Trade notes and accounts receivable, and contract
assetsElectronically recorded monetary claims –operatingMerchandise and products
Partly finished goods
Raw materials and inventories
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures, net
Machinery and delivery equipment, net
LandConstruction in progress
Others, net
Total tangible fixed assets
Intangible fixed assets
Investments and other assets
Investment securities
OthersAllowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets(Liabilities)
Current liabilities
Notes and accounts payable
Electronically recorded obligations – operating
Short-term loans
Current portion of long-term loans
Accrued income taxes
Bonus allowances
Provision for product warranties
OthersTotal current liabilities
Long-term liabilities
Long-term loans
Long-term accounts payable
Net defined benefit liability
OthersTotal long-term liabilities
Total liabilities- 6 -12,991

10,88927,14030,179

4,116

4,459

6,304
5,637
3,462
1,823
(176)
61,299

5,194
6,274
3,640
1,816
(133)
62,32013,52136,362
5,076
7,221
7,721
69,903
1,642

13,74437,173
5,122
9,061
7,918
73,021
1,663

1,261
2,978
(15)
4,223
75,769137,069

1,319
3,949
(15)
5,253
79,938142,259

11,6709,144
18,59910,600
147
1,530
53
7,532
59,277

13,434
9,864
13,910
9,873
242
1,052
58
10,516
58,952

14,319
123
3,305
3,393
21,14280,41914,851
120
3,363
3,485
21,82080,773

(Million yen)
Consolidated first three quarters
Previous consolidated fiscal year
under review(March 31, 2023)(December 31, 2023)(Net assets)
Shareholders’ equity
Common stock
Additional paid-in capital
Retained earnings
Treasury stock
Total shareholders’ equity
Other accumulated comprehensive income
Difference on revaluation of other marketablesecurities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other accumulated comprehensive income
Share warrants
Total net assets
Total liabilities and net assets

- 7 -

6,964
10,20630,454(58)
47,566

6,964
10,22331,323(513)
47,997

538

595

9,026
(604)
8,961
121
56,649137,069

13,302(527)
13,370117
61,486142,259(2) Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Income Statement(First Three Quarters)

Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income (or loss)
Non-operating income
Interest income
Dividends received
Foreign currency exchange gain
Gain on sales of scraps
Employment adjustment subsidies
OthersTotal non-operating income
Non-operating expenses
Interest expenses
OthersTotal non-operating expenses
Recurring income (or loss)
Extraordinary gains
Gain on sales of fixed assets
Gain on sales of investment securities
Subsidy income
Total extraordinary gains
Extraordinary losses
Loss on sales and retirement of fixed assets
Loss related to Chinese businessTotal extraordinary losses
Income (loss) before income taxes and others
Income taxes and enterprise taxes
Deferred income taxes
Total income taxes
Net income (loss)
Net income (loss) attributable to owners of parent(Million yen)
Nine months ended December 31, Nine months ended December 31,
2022
2023
(April 1, 2022 to(April 1, 2023 to
December 31, 2022)
December 31, 2023)
104,379
118,812
97,056
108,470
7,322
10,341
7,789
8,699
(466)
1,642

- 8 -

34
44
463
180
127
47
898

88
47
344
216
－
60
756

509
42
551
(118)

557
28
586
1,813

75
－
113
189

19
34
137
191

158
－
158
(88)
412
(25)
387
(475)
(475)

184
426
610
1,393
446
(308)
138
1,255
1,255

Quarterly Consolidated Statement of Comprehensive Income(First Three Quarters)

Net income (loss)
Other comprehensive income
Difference on revaluation of other marketablesecurities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests(Million yen)
Nine months ended December 31, Nine months ended December 31,
2022
2023
(April 1, 2022 to(April 1, 2023 to
December 31, 2022)
December 31, 2023)
(475)
1,255

- 9 -

(65)

57

6,621
70
6,627
6,151

4,275
76
4,409
5,664

6,151
－

5,664
－

(3) Notes(Notes on Going Concern Assumption)
Not applicable.
(Notes on Significant Change in the Amount of Shareholders’ Equity)(Acquisition of own shares)
The Company resolved at its Board of Directors’ meeting held on April 27, 2023 to purchase its own shares (purchase period:
from May 19, 2023 to December 31, 2023), and purchased 499 million yen of its treasury stock (679,200 shares) during the ninemonth period of the consolidated fiscal year under review.
(Disposal of treasury stock)
The Company resolved at its Board of Directors’ meeting held on June 22, 2023 to dispose of treasury shares for delivery as
stock compensation, and disposed of them during the nine-month period of the fiscal year under review. As a result, treasury
stock decreased by ¥43 million (85,015 shares).
(Reversal of general reserve)
The Company resolved at its Board of Directors’ meeting held on May 18, 2023 to reverse its general reserve for the purpose of
enabling shareholder returns in response to changes in the future business environment and flexible capital policies, andimplemented a reversal of 2,000 million yen in general reserve on the same day to complement a loss of retained earnings brought
forward.
This had no impact on the total amount of shareholders’ equity.

- 10 -

(Segment Information, etc.)
Segment Information
I. Nine months ended December 31, 2022 (April 1, 2022 to December 31, 2022)
1. Information on sales and income or losses by reported segment, and information on the breakdown of revenue(Million yen)
Reported segments
Die Casting Business
Proprietary
Total
Aluminum
Products
North
BusinessJapan
AsiaBusiness
America
Net sales
Revenue from contracts with
43,98626,80924,981
6,027
2,574 104,379
customers
Sales to external customers
43,98626,80924,981
6,027
2,574 104,379
Intersegment sales or transfers
2,126
14
1,739
1,272
25
5,178
Total
46,112
26,824
26,7217,300
2,599 109,558
Segment profit (or loss)
163
(926)
23
235
157
(345)
2. Total amount of profit or loss in reported segments, difference from the amount posted in the quarterly consolidated
statement of income, and important details of the difference (Difference adjustment)(Million yen)
ProfitAmountTotal in reported segments(345)

Elimination of intersegment transactions(120)

Operating income (or loss) in the quarterly
consolidated statement of income(466)

3. Impairment losses in fixed assets or goodwill by reported segment
Not applicable.
II. Nine months ended December 31, 2023 (April 1, 2023 to December 31, 2023)
1. Information on sales and income or losses by reported segment, and information on the breakdown of revenue(Million yen)
Reported segments
Die Casting Business
Proprietary
Total
Aluminum
Products
North
BusinessJapan
AsiaBusiness
America
Net sales
Revenue from contracts with
47,91035,447
24,912
5,417
5,125 118,812
customers
Sales to external customers
47,91035,447
24,912
5,417
5,125 118,812
Intersegment sales or transfers
2,697
6
1,424
1,966
16
6,112
Total
50,60835,453
26,337
7,383
5,141 124,925
Segment profit (or loss)
598
948
(850)
130
741
1,568
2. Total amount of profit or loss in reported segments, difference from the amount posted in the quarterly consolidated
statement of income, and important details of the difference (Difference adjustment)(Million yen)
ProfitAmountTotal in reported segments
1,568
Elimination of intersegment transactions
74
Operating income in quarterly consolidated
1,642
statement of income
3. Impairment losses in fixed assets or goodwill by reported segment
In the Die Casting Business: Asia segment, an impairment loss of ¥327 million on tangible fixed assets, including diesfor the die-cast products for which the planned mass production was suspended, was recorded.

- 11 -(Important Subsequent Events)(Acquisition and cancellation of treasury shares)
At its Board of Directors’ meeting held on February 8, 2024, the Company resolved matters related to acquisition of treasury
shares pursuant to the provisions of Article 459, Paragraph 1 of the Companies Act and Article 41 of the Articles of Incorporationof the Company, and also resolved matters related to cancellation of treasury shares pursuant to the provision of Article 178 of
the Companies Act. The acquisition and cancellation of treasury shares are scheduled to be implemented as follows.
1. Reason for the acquisition and cancellation of treasury shares
Based on its long-term management plan “10-Year Business Plan” and its financial strategies, the Company has beenpromoting the execution of strategic capital policies aimed at achieving both a sound financial position and shareholder
returns. As part of this effort, the Company shall launch share buyback programs to enable flexible acquisition of its own
shares while comprehensively considering factors such as investment opportunities, financial conditions, stock price, etc.
At the same time, for the purpose of raising the ratio of shares in circulation and further improving its capital efficiency,
the Company will implement the cancellation of treasury shares.
2. Details of the acquisition(1)(2)

Type of shares to be purchased:
Number of shares to be purchased:

Common stock of the Company
600,000 at maximum

(3)
(4)

Total acquisition price of shares:
Period of acquisition of own shares:

500 million yen at maximum
February 19, 2024 to August 31, 2024

3. Details of the cancellation(1)(2)

Type of shares to be canceled:Number of shares to be canceled:

Common stock of the Company
530,000 (2.03% of the total number of shares outstanding before(3)

Scheduled date of cancellation

cancellation)
February 19, 2024

(4)

Total number of shares outstanding aftercancellation:

25,546,717 shares- 12 -