Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

August 9, 2024

Summary of Consolidated Financial Results
For the First Quarter of the Year Ending March 31, 2025
(Under Japanese GAAP)
Company name:
LEC, Inc.
Stock exchange listing: Tokyo Stock Exchange, Prime Market
Stock code:
7874
URL:
https://www.lecinc.co.jp/en
Representative:
Mitsuo Aoki, Chairperson and President
Inquiries:
Hideo Masuda, Director, Managing Executive OfficerTelephone:+81-3-3527-2150
Scheduled date for commencement of dividend payments: ―Supplementary information for the financial statements to be prepared: None
Meeting to explain the financial statements to be held: None
(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the First Quarter of the Year Ending March 31, 2025 (from April 1, 2024
to June 30, 2024)(1) Consolidated Results of Operations (cumulative)(Percentage figures denote change from the same period in the previous year)
Net sales
Millions of yen

1st Quarter of the YearEnding March 31,2025
1st Quarter of the Year
Ended March 31, 2024
Note: Comprehensive income

Operating profit

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen%

Millions of yen%

8.4

886

45.1

1,139

66.6

811

122.6

14,861 11.3

611

(26.7)

683(13.5)

364(62.2)First Quarter of the Year ending March 31, 2025: ¥835 million
First Quarter of the Year ended March 31, 2024: ¥978 million[(14.6)%][3.9%]

16,104

Basic earnings
per share
1st Quarter of the YearEnding March 31, 2025
1st Quarter of the Year
Ended March 31, 2024

Diluted earnings
per share
Yen

Yen

23.29

23.08

10.52

10.42

(2) Consolidated Financial Position
Total assets

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

As of June 30, 2024

86,75037,52741.5

As of March 31, 2024

89,24437,593

39.8

Reference: Shareholders’ Equity As of June 30, 2024: ¥35,962 million
As of March 31, 2024: ¥35,559 million

2. Dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen

10.00

―10.0020.0010.00

―

10.00

20.00

Year Ended―
March 31, 2024
Year Ending―March 31, 2025
Year Ending
March 31, 2025
(Estimate)
Note: Changes from the latest forecasts released: None

Year-endTotal

3. Forecast for the Year Ending March 31, 2025 (from April 1, 2024 to March 31, 2025)(Percentage figures denote change from the same period in the previous year)
Net sales
Millions of yen
First half
Full Year

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basic earnings
per share%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

31,600 6.4
64,000 5.3

1,000
1,500

6.8(7.9)

1,200
1,650

15.5(2.2)

820
1,000

72.9
25.6

23.54
28.73

Note: Changes from the latest forecasts released: Yes* Notes(1) Significant changes in the scope of consolidation during the period: None
New : 0Excluded : 0(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions of accounting standards and other regulations: None(ii) Changes in accounting policies other than (ⅰ): None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury stock)
1st Quarter of the Year Ending March 31, 2025

38,165,340 sharesYear Ended March 31, 2024

38,165,340 shares(ii) Number of treasury stock at the end of the period
1st Quarter of the Year Ending March 31, 2025

3,373,892 sharesYear Ended March 31, 2024

3,294,292 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscalyear)
1st Quarter of the Year Ending March 31, 2025

34,854,934 shares

1st Quarter of the Year Ended March 31, 2024

34,668,797 shares* Review of the Japanese-language originals of the attached quarterly consolidated financial statements bycertified public accountants or an audit firm: None
* Explanation of the appropriate use of business forecasts and other remarks
Business forecasts contained in this report are based on information available to the Company and on a certain
assumption the Company considers reasonable on the date of this report’s announcement, and it does notconstitute the Company’s intention to promise the accomplishment of the forecasts. Actual results may differ
significantly from such forecasts due to various risks and uncertainties. For more information regarding
assumptions made when formulating earnings projections and matters to note when using these projections,please see “(3) Explanation of Consolidated Forecast and Other Forward-looking Statements” on page three ofthe accompanying materials.
In addition, the Company has introduced ESOP, and the Company shares owned by ESOP are included intreasury stock.

LEC, Inc. (7874) Financial Results for the First Quarter of FY3/25

Accompanying Materials ― Contents
1. Qualitative Information on Quarterly Financial Performance ............................................................................. 2(1) Explanation of Operating Results .................................................................................................................. 2(2) Explanation of Financial Position .................................................................................................................. 2(3) Explanation of Consolidated Forecast and Other Forward-looking Statements ............................................ 3
2. Quarterly Consolidated Financial Statements and Primary Notes ....................................................................... 4(1) Quarterly Consolidated Balance Sheet ........................................................................................................... 4(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income........................ 6
Quarterly Consolidated Statement of Income ................................................................................................ 6For the Three-month Period ........................................................................................................................... 6
Quarterly Consolidated Statement of Comprehensive Income ...................................................................... 7For the Three-month Period ........................................................................................................................... 7(3) Notes to Quarterly Financial Statements......................................................................................................... 8(Notes to going concern assumptions).............................................................................................................. 8(Notes in the event of significant changes in shareholders’ equity) ................................................................. 8(Notes to segment information, etc.) ................................................................................................................ 8(Notes on the statements of cash flows)........................................................................................................... 81

LEC, Inc. (7874) Financial Results for the First Quarter of FY3/25

1. Qualitative Information on Quarterly Financial Performance(1) Explanation of Operating Results
During the three months ended June 30, 2024, the Japanese economy continued on a moderate recovery trend,
supported by improvements in the employment and income environment and demand from travelers to Japan. However,
the outlook remained uncertain due to factors such as prolonged conflicts in Ukraine and the Middle East leading tosoaring energy and raw material prices, rapid fluctuations in the foreign exchange market, and economic slowdown in
China among other factors.
In the Household Products Business, the industry LEC Group belongs to, the business environment remained severe
as consumers’ budget-mindedness intensified. This was due to factors such as the prolonged negative real wage situation
where wage increases failed to keep pace with rising prices, despite gradual improvements in the employment andincome environment.
In this environment, the LEC Group focused on developing various character goods of choice tailored to the tastesof consumers and products that meet the needs of budget-conscious consumers. The Group also aimed to expand its
business through active promotional activities, including new product announcements. Additionally, as procurement
costs remained high due to the depreciation of the yen and rising raw material prices, and various expenses includingtransportation costs continued to rise, we continued to focus on improving productivity by updating products andrevamping production process, striving to reduce costs.
As a result of the above, net sales during the three months ended June 30, 2024, amounted to 16,104 million yen(up 8.4% year on year), due to increased sales of new character-related goods and other products. Despite increases invarious costs including those related to the weak yen, raw materials, and import expenses, operating profit was 886
million yen (up 45.1% year on year) and ordinary profit was 1,139 million yen (up 66.6% year on year) due to improved
profit margins resulting from the effect of increased revenue. Profit attributable to owners of parent was 811 millionyen (up 122.6% year on year), partly due to a decrease in tax expenses resulting from a reduction in the valuation
allowance following the decision to dissolve a consolidated subsidiary.
Results by product category are as follows.
(Millions of yen)
Product Category
Household products
Cleaning/Sanitary consumables
Others
Total

Previous period
Apr. 1, 2023 - Jun. 30,
2023
6,355
5,317
3,188
14,861

Current period
Apr. 1, 2024 - Jun. 30,
2024
6,752
6,064
3,287
16,104Year-over-year
6.2%
14.1%
3.1%
8.4%

Notes: Representative products of each product category are as follows:
Household products…Plastic products, Chemical synthetic products, Metal products, Textile products, etc.
Cleaning･Sanitary consumables …Paper/Water/Urethane cleaning consumables, Nonwoven fabric sanitary consumables, Detergents, etc.
Others…Anti-insect/virus products, Cosmetics, Home appliances, Food, etc.

(2) Explanation of Financial Position
As of June 30, 2024, total assets decreased 2,494 million yen from the end of the previous fiscal year to 86,750
million yen.
Current assets decreased 4,085 million yen from the end of the previous fiscal year to 53,370 million yen, mainly
due to a decrease of 4,155 million yen in cash and deposits.
Non-current assets increased 1,590 million yen from the end of the previous fiscal year to 33,379 million yen,mainly due to a 2,759 million yen increase in intangible assets, and decreases of 669 million yen in property, plant andequipment and 498 million yen in investments and other assets.
Liabilities decreased 2,427 million yen from the end of the previous fiscal year to 49,222 million yen.
Current liabilities decreased 2,620 million yen from the end of the previous fiscal year to 9,491 million yen. Thiswas mainly due to decreases of 1,403 million yen in current portion of long-term borrowings, 436 million yen in income
taxes payable, and 400 million yen in short-term borrowings.
Non-current liabilities increased 192 million yen from the end of the previous fiscal year to 39,731 million yen,mainly due to a 369 million yen increase in long-term borrowings.
Net assets decreased 66 million yen from the end of the previous fiscal year to 37,527 million yen, mainly due to a462 million yen increase in retained earnings and a 436 million yen decrease in non-controlling interests.
2LEC, Inc. (7874) Financial Results for the First Quarter of FY3/25(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
There have been revisions made to the consolidated performance forecasts for the first half and the full year ending
March 31, 2025, which were announced on May 10, 2024, based on the results for the three months ended June 30,2024.

3

LEC, Inc. (7874) Financial Results for the First Quarter of FY3/25

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
FY3/24As of Mar. 31, 2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-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
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4First quarter of FY3/25
As of Jun. 30, 2024

33,001
10,686
470
9,457
619
2,317
907
(4)
57,45528,845
11,318
770
8,778
652
2,176
828
(0)
53,370

7,831
5,752
9,712
23,296

7,721
5,572
9,334
22,627

4
461
465

2,802
422
3,224

6,645
1,380(0)8,026
31,78889,244

6,151
1,376
(0)
7,52733,379
86,750LEC, Inc. (7874) Financial Results for the First Quarter of FY3/25(Millions of yen)
FY3/24As of Mar. 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for product warranties
Provision for bonuses
Provision for loss on disaster
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for share awards
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilitiesTotal 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-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5First quarter of FY3/25
As of Jun. 30, 2024

2,242400
5,303
790
34404
352,901
12,111

2,342
―
3,900
353
8
213
35
2,637
9,491

37,030
269
312
27
1,898
39,53951,65037,400
267
302
27
1,733
39,731
49,222

5,491
7,236
21,655(1,967)32,415

5,491
7,213
22,118(2,027)32,795

2,425

2,296

2759
(43)

5906
(42)

3,143

3,167

206
1,828
37,59389,244

173
1,391
37,52786,750LEC, Inc. (7874) Financial Results for the First Quarter of FY3/25(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
For the Three-month Period(Millions of yen)First three months of FY3/24(Apr. 1, 2023 – Jun. 30, 2023)

First three months of FY3/25(Apr. 1, 2024 – Jun. 30, 2024)

14,861
10,765
4,095
3,483
611

16,104
11,809
4,295
3,409
886

348
―
3547
134

961
96―
145
312

44

56

15―

10
62683

―
259
1,1390―
0683
203
73
277
406
41364―
145
145
994
310
(127)
182
811
(0)
811

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of shares of subsidiaries and associates
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6LEC, Inc. (7874) Financial Results for the First Quarter of FY3/25

Quarterly Consolidated Statement of Comprehensive Income
For the Three-month Period(Millions of yen)First three months of FY3/24(Apr. 1, 2023 – Jun. 30, 2023)

First three months of FY3/25(Apr. 1, 2024 – Jun. 30, 2024)

406

811

186
359
25
1572
978(128)
3147
123835934

835

430Profit
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7LEC, Inc. (7874) Financial Results for the First Quarter of FY3/25(3) Notes to Quarterly Financial Statements(Notes to going concern assumptions)None to be reported.
(Notes in the event of significant changes in shareholders’ equity)
None to be reported.
(Notes to segment information, etc.)
The Group is mainly engaged in the planning, manufacture, and sale of Household products. Accordingly, thesegment information is omitted because the Group has a single segment, the “Household products and ApparelBusiness.”(Notes on the statements of cash flows)
The Company has not prepared quarterly consolidated statements of cash flows for the first three months of thefiscal year ending March 31, 2025. However, depreciation (including amortization of intangible assets excluding
goodwill) and amortization of goodwill for the first three-month period are as follows:First three months of FY3/24(Apr. 1, 2023 – Jun. 30, 2023)(Millions of yen)First three months of FY3/25(Apr. 1, 2024 – Jun. 30, 2024)

Depreciation

928756

Amortization of goodwill3728