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.

February 10, 2023

Summary of Consolidated Financial Results
For the Third Quarter of the Year Ending March 2023
(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:
Takaki Nagamori, President
Inquiries:
Hideo Masuda, Director, Managing Executive Officer
Telephone:+81-3-3527-2150
Scheduled date for filing quarterly securities report:
February 13, 2023
Scheduled date for Commencement of dividend payments:―
Supplementary information for the quarterly financial statements to be prepared: None
Meeting to explain the quarterly financial statements to be held: None
(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Third Quarter of the Year Ending March 2023
(April 01, 2022 - December 31, 2022)(1) Consolidated Results of Operations (cumulative)(Percentage figures denote change from the same period in the previous year)
Sales

Operating Income

Yen in million%

Yen in million%

Yen in million%

Yen in million%

41,9336.8

1,267(63.6)

1,370(61.7)

1,247(39.7)

39,2552.0

3,483(28.9)

3,574(28.9)

2,067(37.3)

3rd Quarter of the YearEnding March, 2023
3rd Quarter of the Year
Ended March, 2022
Note: Comprehensive income

Third Quarter of the Year ending March 2023:
Third Quarter of the Year ended March 2022:

Net income per share

3rd Quarter of the YearEnding March, 2023
3rd Quarter of the Year
Ended March, 2022Net income attributableto owners of parent

Ordinary Income

Diluted net income
per share

YenYen

36.07

35.73

60.18

59.57

¥1,436 million¥2,077 million[(30.8)%][(42.1)%]

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Yen in millions

Yen in millions%

3rd Quarter of the YearEnding March 2023

86,85036,508

39.9

Year Ended March 2022

74,60235,753

45.5

Reference:

Shareholders’ Equity
Third Quarter of the Year Ending March 2023:
Year Ended March 2022

¥34,619 million¥33,977 million

2. Dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

YenYenYen

Yen

Year Ended March 2022

―

17.00

―

13.00

30.00

Year Ending March 2023

―

10.00

―
10.00

20.00

Year Ending March 2023
(Estimate)Year-end―

Total

Note: Changes from the latest forecasts released: None

3．Forecast for the Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)(Percentage figures denote change from the same period in the previous year)
Sales

Full Year

Operating Income

Yen in millions%

Yen in millions

55,0007.0

1,300

Note: Changes from the latest forecasts released: Yes

Net income attributableto owners of parent

Ordinary Income% Yen in millions(59.5)

1,400

Net income
per share%

Yen in millions%Yen(57.7)

1,250(45.2)

36.13

* Notes(1) Changes in significant subsidiaries during the period(Changes in specified subsidiaries resulting in the change in scope of consolidation): Yes
NEW :

0

Excluded :1（LEC Home Products Co.,Ltd）(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) Retrospective restatements: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury stock)
3rd Quarter of the Year Ending March 2023

38,165,340 sharesYear Ended March 2022

38,165,340 shares(ii) Number of treasury stock at the end of the period3rd Quarter of the Year Ending March 2023

3,501,447 sharesYear Ended March 2022

3,686,447 shares(iii) Average number of issued shares during the period (cumulative from the beginning of the fiscal year)
3rd Quarter of the Year Ending March 2023

34,565,002 shares

3rd Quarter of the Year Ended March 2022

34,358,312 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* 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. Due to unforeseen
circumstances, however, actual results may differ significantly from such forecasts due to various risks anduncertainties. For more information regarding assumptions made when formulating earnings projections andmatters to note when using these projections, please see “(3)Explanation of Consolidated Earnings Forecasts
and Other Projections” on page two of the 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 Third Quarter of FY3/23

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 Earnings Forecasts and Other Projections……….….………………………2
2. Quarterly Consolidated Financial Statements and Primary Notes……………………………………………...3(1) Quarterly Consolidated Balance Sheet ….…………………………………………………………………3(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income...…………...5(3) Notes to Quarterly Financial Statements…………………………………………………………………..7(Notes to going concern assumptions).………………………………………………………….…………7(Notes in the event of significant changes in shareholders’ equity)………….………………………71

LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/23

1. Qualitative Information on Quarterly Financial Performance(1) Explanation of Operating Results
During 3Q of the fiscal year ending March 31, 2023, although there was a sudden spread of the COVID-19
caused by the omicron variant, the Japanese economy continued to recover as the government lifted its restrictions
on movement. On the other hand, future prospects remain uncertain due to factors such as supply chain
disruptions caused by the lockdown in China, increase in energy and raw material prices and the yen's
depreciation, fluctuations in the financial and capital markets amid tightening monetary policy amid global
inflationary pressure.
In the Household Products Business, the Lec Group belonging to, the business environment remained severe as
consumers became more budget-minded due to the sharp depreciation of the yen and the rise in prices of energy
and raw materials.
In this environment, the LEC Group focused on new product development and expanded its business by holding
a new product presentation. We worked to strengthen our price competitiveness by renewing our products andreducing costs to cope with rising procurement costs due to the depreciation of the yen and soaring raw material
prices, as well as rising transportation costs.
As a result of the above, net sales for 3Q of the fiscal year ending March 31, 2023 amounted to 41,933 million
yen, (up 6.8% year on year). Operating income was 1,267 million yen (down 63.6% year on year) due to thedepreciation of the yen and increases in various costs including raw materials and import expenses, and ordinary
income was 1,370 million yen (down 61.7% year on year). Net income attributable to owners of parent was 1,247
million yen (down 39.7% year on year) due to subsidy income.
Results by product category are as follows.
(Millions of yen)
Product Category
Household products
Cleaning･Sanitary consumables
OthersPrevious period
Sep.30, 2021-Dec.31,2021
16,934
15,369
6,951

Current period
Sep.30, 2022-Dec.31,2022
18,013
16,798
7,120

Year-over-year
6.4%
9.3%
2.4%

Total
39,25541,933
6.8%
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, Anti-virus products, Cosmetics, Home appliances, Food, etc.

(2) Explanation of Financial Position
As of December 31, 2022, total assets increased 12,248 million yen from the end of the previous fiscal year to
86,850 million yen.
Current assets increased 12,782 million yen to 54,487 million yen. This was mainly due to an increase 7,303
million yen in cash and deposits, 2,707 million yen in notes and accounts receivable - trade, and 1,803 million yen
in securities.
Non-current assets decreased 534 million yen to 32,363 million yen mainly due to 210 million yen decrease ininvestments and other assets, and 204 million yen decrease in intangible assets.
Liabilities increased 11,493 million yen from the end of the previous fiscal year to 50,342 million yen.
Current liabilities increased 2,069 million yen to 14,129 million yen. This was mainly due to an increase 1,000
million yen in short-term borrowings, and 768 million yen increase in current portion of long-term loans payable.
Non-current liabilities increased 9,423 million yen from the end of the previous fiscal year to 36,212 million yen
mainly due to an increase 8,388 million yen in long-term borrowings.
Net assets increased 754 million yen from the end of the previous fiscal year to 36,508 million yen. This was
mainly due to an increase 432 million yen in retained earnings.

(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
With regard to the earnings forecast for the fiscal year ending March 31, 2023, the full-year earnings forecast
announced on August 5, 2022 has been revised based on the results for the third quarters of the current fiscal year.

2LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/23

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet
FY3/22(As of Mar. 31, 2022)(Millions of yen)
3Q of FY3/23(As of Dec. 31, 2022)

Cash and deposits

21,21028,514

Notes and accounts receivable - trade

8,055

10,762

-

1,803

7,582

8,918

592

607

Raw materials and supplies

2,299

2,619

Other

2,004

1,270

Allowance for doubtful accounts

(40)

(8)

41,70454,487

Buildings and structures, net

8,416

8,094

Machinery, equipment and vehicles, net

8,912

7,590

Other, net

8,350

9,875

Total property, plant and equipment

25,67925,559Goodwill

265

154

Other

688

595

Total intangible assets

953

749

Investment securities

4,188

4,433

Other

2,081

1,622

Allowance for doubtful accounts

（6）

（0）

Total investments and other assets

6,264

6,054

32,89732,36374,60286,850AssetsCurrent assets

Securities
Merchandise and finished goods
Work in process

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets

Total non-current assets
Total assets

3LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/23

FY3/22(As of Mar. 31, 2022)(Millions of yen)
3Q of FY3/23(As of Dec. 31, 2022)

2,477

2,692

200

1,200

6,376

7,144

Income taxes payable

36299Provision for bonuses

387

188

Provision for disaster losses

35

35

Other

2,221

2,769

Total current liabilities

12,06014,129Long-term borrowings

25,20433,592

Reserve for stock benefits

274

274

Retirement benefit liability

386

356

Asset retirement obligations

27

27

Other

895

1,960

26,78836,212

38,84850,342

Share capital

5,491

5,491

Capital surplus

7,232

7,233

Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term borrowings
Current portion of long-term borrowings

Non-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Retained earnings

21,44521,878Treasury shares(2,240)(2,108)

Total shareholders' equity

31,92932,494

Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

1,077

1,279

222

37

Foreign currency translation adjustment

784

838

Remeasurements of defined benefit plans

(35)

(31)

Total accumulated other comprehensive income

2,048

2,124

Subscription rights to shares

206

206

Non-controlling interests

1,570

1,682

Total net assets

35,75336,50874,60286,850Accumulated other comprehensive income

Total liabilities and net assets

4LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/23(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statements of Income
For the Nine-month Period
First nine-month of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)(Millions of yen)First nine-month of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)

Sales

39,25541,933

Cost of sales

25,76530,442Gross profit

13,49011,491

Selling, general and administrative expenses

10,006

10,223Operating income

3,483

1,267

Interest income

1512

Dividend income

65

89

Foreign exchange gains

-

52

Other

134

116

Total non-operating income

215

270

Interest expenses

67

104

Share of loss of entities accounted for using equity method

27

56

Foreign exchange losses

8-

Other

20

5

Total non-operating expenses

124

167

3,574

1,370

Subsidy income-

564

Gain on reversal of foreign currency translation adjustment-249

Total extraordinary income-

813

Loss on retirement of non-current assets

43

Total extraordinary losses

43

Net income before income taxes

3,570

2,181

Income taxes-current

1,255

230

Income taxes – deferred148588

Total income taxes

1,404

819

Net income

2,166

1,361

98

114

2,067

1,247

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses

Net income attributable to non-controlling interests
Net income attributable to owners of parent

5LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/23

Quarterly Consolidated Statement of Comprehensive Income
For the Nine-month Period(Millions of yen)First nine-month of FY3/22 First nine-month of FY3/23(Apr. 1, 2021 – Dec. 31, 2021) (Apr. 1, 2022 – Dec. 31, 2022)
Net income

2,166

1,361

Valuation difference on available-for-sale securities

(258)

202

Deferred gains or losses on hedges

(68)

(186)

Foreign currency translation adjustment

231

54

63(88)

74

2,077

1,436

1,979

1,323

97112

Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensiveinterests

incomeattributabletonon-controlling6

LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/23(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.

7