Consolidated Financial Results < under Japanese GAAP >For Six Months Ended September 30 ,2023
November 10 ,2023

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
November 10 ,2023
Scheduled date to file quarterly securities report:―
Scheduled date to commence dividend payments:
Yes
Preparation of supplementary material on quarterly financial results:
Yes(for institutional investors and analysts)
Holding of quarterly financial results briefing:(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for six months ended September 30 ,2023(from April 1 ,2023 to September 30 ,2023)（1）Consolidated operating results(％ indicate change from same period of the previous fiscal year.)Net sales

Operating profit

Millions of yen
Six Months ended% Millions of yen%
September 30 ,2023
30,1297.3
802―September 30 ,2022
28,0701.6
50(94.9)
Comprehensive income :For six months ended September 30 ,2023
NoteMillions of yen

1,307
607

For six months ended September 30 ,2022

Basic earnings
per share

Six Months ended
September 30 ,2023
September 30 ,2022

Diluted earnings
per shareYen
125.36
3.24

Profit attributable toowners of parent

Ordinary profit% Millions of yen
115.4
1,157
(50.9)
30
1,592 million yen
1,233 million yen
Ratio of ordinary
profit to total assets

Return on equity

Yen
―
―

%
3.1
0.1

%
―
(95.4)
29.1 %(6.9) %

Ratio of operating
profit to net sales

%
1.7
0.8

%
2.7
0.2

(2) Consolidated financial position
Total assets
As of
September 30 ,2023
March 31 ,2023
Reference:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

yen

79,42074,48038,28337,06648.2
49.5

4,146.53
3,993.20

EquityAs of September 30 ,2023

38,276 million yen

As of March 31 ,2023

36,864 million yen

2. Dividends
dividends per share

Dividends to net
assets(consolidated)

End of 3Q

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

FY March 2023

―

30.00

―

0.00

30.00

276

1542.3

1.3

FY March 2024
FY March 2024
(forecast)

―

0.00

0

23.9

0.7

―

AnnualPayout ratio（consolidated）

End of 2Q

Note:

Year-end

Total dividends
paid（annual）

End of 1Q

30.00

Revisions to the forecast of cash dividends most recently announced:

30.00

33.0
No

－1－

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

Full year
Note:61,450Operating income

%
2.9

%
1,000 412.9

Millions of yen

Profit attributable toowners of parent

ordinary income
Millions of yen

1,600

%
54.7

Revisions to the financial results forcast announced most recently:

Millions of yen

840

%
―

yen

90.99

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:

No
No
No
No

(4)

Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of September 30 ,2023
As of March 31 ,2023

9,650,803
9,650,803

shares419,742
419,082

shares9,231,381
9,280,694

sharesshares(ii) Number of treasury shares at the end of the period
As of September 30 ,2023
As of March 31 ,2023

shares(iii) Average number of shares outstanding during the period
For six months ended September 30 ,2023
For six months ended September 30 ,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 as
estimates, 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 ofAssetsCurrent 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
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
Total non-current assets
Total assets－3－

March 31,2023

September 30 ,2023

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

8,780
11,530
7,177
4,544
6,365
3,106
1,472
(17)
42,960

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

7,691
12,404
6,449
26,546

―
604
604
8,226
34,461
74,480

666
573
1,240
8,673
36,45979,420(Millions of yen)
As of
Liabilities
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

September 30 ,2023

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

4,559
7,156
4,935
10
4,454
685
573
52
2
4,652
27,081

―
7,514
30
5,241
699
13,48637,413

5
7,584
29
5,454
982
14,055
41,137

8,640
5,084
20,103(793)
33,0348,640
5,080
21,077(794)
34,003

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

1,688
2,567
17
4,273
6
38,28379,420(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income( Consolidated Statements of Income)(Millions of yen)
For the six months ended
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
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
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Restructuring expenses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit attributable to owners of parent－5－

September 30 ,2022

September 30 ,2023

28,07024,858
3,211
3,161
50

30,12926,118
4,010
3,208
802

24
61
163
214
77
86
627

59
52
77
240
113
126
670

68
1
70
607

139
25
164
1,307

99
―
99

―
587
587

136
244
380
326
288
77
366
(40)
(70)
30

90
―
90
1,804
554
119
674
1,130
(27)
1,157

( Consolidated Statements of Comprehensive Income)(Millions of yen)
For the six 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－

September 30 ,2022

September 30 ,2023

(40)

1,130

(27)
1,194
61

109
299
28

45

25

1,273
1,233

462
1,592

1,095
138

1,601
(9)

(3) Consolidated Statements of Cash Flows(Millions of yen)
For the six months ended
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted
for using equity method
Loss (gain) on sale of property, plant and equipment
Loss on retirement of property, plant and equipment
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period－7－

September 30,2022

September 30,2023

326
1,560
(2)
(15)
119
(86)
68

1,804
1,711
(0)
8
151
(112)
139

(163)

(77)

(99)
136
―
2,320
(486)
(761)
(396)
280
2,800
88
(66)
(846)
1,975

―
90
(587)
987
(1,300)(733)
29(1,045)
1,065
110
(141)
(278)
755

(1,343)182(5)―(1,607)
4
(8)
739

―

(1,140)11(29)(1,185)35(30)(2,006)

674
―
(561)
(199)
(234)

550
1,900
(558)
(0)
―

―

(375)

(25)
(346)
299
742
8,600
9,342

(28)
1,487
122
358
8,148
8,507

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 second quarter of the previous fiscal year has been changed in the same manner.
The six months ended September 30 ,2022
1.Sales and Profit or Loss by reportable segments(Millions of yen)
Reportable segment
Kitagawa
Globalhand
Company

Kitagawa
Sun
TechCompany

Kitagawa
Material
Technology
Company

Other

Total

Total

Net sales
4,737

Unaffiliated customers

Operating profit (loss)

13,072

27,881

28,070

6

0

77

83

―

83

10,071

13,14927,965

188

28,153

575

772

(883)

464

(94)

369

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

Six months ended September 30 ,2022

Reportable segment total

464

Earnings for Other(94)

Corporate expenses（note）

(319)
50

Operating profit in consolidated financial statements
Note:

188

4,744

Intersegment
Total

10,071

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

－8－

The Six months ended September 30 ,2023
1.Sales and Profit or Loss by reportable segments(Millions of yen)
Reportable segment
Kitagawa
Globalhand
Company

Kitagawa
Sun
TechCompany

Kitagawa
Material
Technology
Company

Other

Total

Total

Net sales
4,901

Unaffiliated customers

Operating profit (loss)

14,50329,736

392

78

0

72

151

―

151

10,33014,57629,887392

30,280

484

567

205

1,257

(21)

1,236

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

Six months ended September 30 ,2023
1,257

Reportable segment total
Earnings for Other(21)

Corporate expenses（note）(434)

Operating profit in consolidated financial statements

802

Note:

30,1294,980

Intersegment
Total

10,330

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 thesecond 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 second quarterof the current consolidated fiscal year.

－9－