November 2, 2023

Consolidated Financial Statements – Summary(Six months ended September 30, 2023)
This document is an English translation of the Japanese-language original. All financial information has been
prepared in accordance with accounting principles generally accepted in Japan.
Company Name:GUNZE LIMITED

Securities Code:3002

Stock Market Listings:

Tokyo

URL:

https://www.gunze.co.jp/

Representative:

Toshiyasu Saguchi, President and Representative Director

Contact:

Junko Nakashima, General Manager, Corporate Communications

Tel:+81 (6) 6348-1314

Filing of Quarterly Securities Report (Shihanki hokokusho) (Scheduled):

November 13, 2023

Start of Distribution of Dividend (Scheduled):–

Preparation of Supplementary Materials for Quarterly Financial Results:

Yes

Holding of Presentation of Quarterly Financial Results:

Yes (for institutional investors/analysts)

1. Consolidated Operating Results for the six months ended September 30, 2023 (April 1, 2023 to
September 30, 2023)(1) Consolidated operating results(Amounts less than one million yen are omitted)(Percentages represent year-over-year changes)

Net sales

Operating profit

Six months ended¥ millions%¥ millions%
September 30, 2023
65,153 (3.3)
3,230 15.1
September 30, 2022
67,350 13.4
2,806 (16.0)
Note: Comprehensive income
Six months ended September 30, 2023: ¥5,143 million [9.4%]
Six months ended September 30, 2022: ¥4,703 million [(0.8)%]
EPS
Six months ended
September 30, 2023
September 30, 2022¥

155.85
127.68

Ordinary profit

Profit attributable toowners of parent¥ millions¥ millions

%

3,280
3,087

6.3
(18.1)

%

2,657
2,206

20.4
(55.9)

Diluted EPS¥
155.49127.38(2) Consolidated financial position
Total assets

Net assets¥ millions¥ millions%¥

120,353
117,691

71.9
69.8

6,936.93
6,789.78

As of September 30, 2023
164,745
As of March 31, 2023
165,927
Reference: Total equity
As of September 30, 2023: ¥118,386 million

Equity ratio

Net assets per share

As of March 31, 2023: ¥115,757 million

2. Dividends
Annual dividends per share (¥)
1st quarter-end

2nd quarter-end

3rd quarter-end

Year-end

Total

¥

¥

¥

¥

¥

FY2022−−−147.00
FY2023−−
FY2023 (projected)−
150.00(Note) Revision to the projected dividends announced most recently: None

147.00150.003. Projected results for FY2023 (April 1, 2023 to March 31, 2024)
Net sales
FY2023 full year

Operating profit%¥ millions%¥ millions%

140,000

2.9

7,500

29.0

7,500

24.6

Profit attributable toowners of parent
FY2023 full year

Ordinary profit¥ millions

EPS¥ millions

%

¥

4,800

6.6

281.37(Note) Revision to the projected results announced most recently: None

Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries during the period
accompanied by changes in the scope of consolidation): No(2) Application of an accounting method specific to the preparation of quarterly consolidated financial
statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement after error corrections(a) Changes in accounting policies due to revisions to accounting standards and other regulations: No(b) Changes in accounting policies other than (a) above: No(c) Changes in accounting estimates: No(d) Restatement after error corrections: No(4) Number of shares issued and outstanding (common stock)(a) Number of shares at the end of period (including treasury stock):
As of September 30, 2023: 17,293,516 shares
As of March 31, 2023: 17,293,516 shares(b) Treasury stock at the end of period:
As of September 30, 2023: 227,434 shares
As of March 31, 2023: 244,692 shares(c) Average number of shares during the period:
Six months ended September 30, 2023: 17,053,657 shares
Six months ended September 30, 2022: 17,280,751 shares* This summary of quarterly consolidated results is exempt from the quarterly review procedures by certified
public accountants or an audit corporation.
* Notes regarding the proper use of projections of the results and other matters
Projections of results and future developments are based on information available to the Company at the current
time, as well as certain assumptions judged by the Company to be reasonable. Various factors could cause
actual results to differ materially from these projections. For the assumptions that form the basis of the projected
results and notes regarding the use of projections, see “(3) Explanation of Consolidated Financial Results
Forecast and Other Forward-looking Information” of “1. Qualitative Information on Quarterly Financial
Results for the Period under Review” on page 3 of attached materials.

(Attachment)
Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review ................................2(1) Explanation of Business Results ...........................................................................................................2(2) Explanation of Financial Position .........................................................................................................3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ......3
2. Quarterly Consolidated Financial Statements and Primary Notes ...............................................................5(1) Quarterly Consolidated Balance Sheets ................................................................................................5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income .........................................................................................................................7(3) Quarterly Consolidated Statements of Cash Flows ...............................................................................9(4) Notes to Quarterly Consolidated Financial Statements ....................................................................... 11(Notes regarding assumptions of continuing operations) ................................................................. 11(Notes in the case of significant changes in shareholders’ equity) ................................................... 11(Application of an accounting method specific to the preparation of quarterly consolidated financial
statements) ........................................................................................................................................ 11(Changes in accounting policies, changes or restatement of accounting estimates) ........................ 11(Segment information, etc.) ..............................................................................................................12(Significant subsequent events) ........................................................................................................13
3. Supplementary Information .......................................................................................................................14

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Business Results(Overview of Results for the Period under Review)
During the six months ended September 30, 2023 (April 1, 2023 - September 30, 2023), the Japanese economy
showed signs of a moderate recovery, as social and economic activities progressed toward normal primarily owing
to the easing of restrictions on activities resulting from the downgrade of COVID-19 to the Category V. The
economic outlook, however, remains unclear, with the continuing rise in prices associated with soaring raw
material and energy prices against a backdrop of the yen’s depreciation due to the differences in monetary policies
in Japan and overseas, as well as concerns of a slowdown in the overseas economy and geopolitical problems.
Amid this operating environment, the GUNZE Group continued to pursue the four basic strategies of “Creationof new value,” “Capital cost-focused management,” “Evolution of corporate constitution,” and “Environmentally
responsible management” in the second year of its new medium-term management plan, “VISION 2030 stage 1.”
By segment, the functional solutions business was impacted by the slowdown in demand for films due to rising
prices and the high prices of raw materials and fuels. In the medical business, while sales of new products ofbioabsorbable medical materials were strong and sales expanded favorably in China, sales of medical lasers
struggled. In the apparel business, with the ongoing recovery trend in sales, profitability improved as the Company
proceeded with price revision including adding value to its products. The lifestyle creations business performed
strongly thanks to the lifting of restrictions on activities. Consequently, for the period under review, net sales
decreased by 3.3% year-on-year to ¥65,153 million, operating profit increased by 15.1% year-on-year to ¥3,230
million, ordinary profit increased by 6.3% year-on-year to ¥3,280 million, and profit attributable to owners ofparent increased by 20.4% year-on-year to ¥2,657 million on a consolidated basis.
(Results by Business Segment)
Categories of the reportable segments have been changed starting from the first quarter of the fiscal year ending
March 31, 2024. The following year-on-year comparison has been made using the figures for the corresponding
period of the previous fiscal year that were reclassified based on the revised reportable segments.
[Functional Solutions]
In plastic films, sales of packaging films in the US remained strong, although the business was impacted bystagnant demand in Japan and Asia. In engineering plastics, despite the slowdown in sales to the office equipment
market, products for semiconductors and general industries performed strongly. Electronic components bore thebrunt of stagnant market conditions in its touch panel products for China.
As a result of the above, the functional solutions business recorded net sales of ¥24,251 million (down by 2.4%
year-on-year) and operating profit of ¥2,937 million (down by 5.7% year-on-year).
[Medical]In the medical business, although an adhesion prevention agent, a new product, and products for China
performed strongly, orders for medical lasers decreased primarily due to the decreased number of openings ofaesthetic and medical institutions and their reduced capital investments after the COVID-19 pandemic.
As a result of the above, the medical business recorded net sales of ¥5,492 million (down by 2.5% year-onyear) and operating profit of ¥907 million (down by 15.8 % year-on-year).
[Apparel]In the apparel business, despite the growth of e-commerce and the channel for company-owned stores, which
are being strengthened, the mass retailer channels struggled, while the business was also impacted by the delay inthe rollout of autumn and winter items as a result of the record-breaking late-summer heat. The Company will2

continue to pursue growth strategies through a shift to the Direct to Consumer channel and improve profits throughprice revisions. In innerwear, high value-added products that aligned with customer needs performed strongly. In
legwear, the Company has been continuously advancing structural reforms in an effort to improve profitability.
As a result of the above, the apparel business recorded net sales of ¥29,373 million (down by 2.4% year-onyear) and operating profit of ¥775 million (up by 305.9% year-on-year).
[Lifestyle Creations]
The real estate category recorded a decline in revenue due to the recording of sales of idle land redevelopmentin the previous fiscal year. Both the shopping center and the sports club businesses are back on the recovery trackfollowing the lifting of pandemic restrictions.
As a result of the above, the lifestyle creations business recorded net sales of ¥6,428 million (down by 10.4%
year-on-year) and operating profit of ¥297 million (up by 49.4% year-on-year).
(2) Explanation of Financial Position
As of September 30, 2023, total assets were ¥164,745 million, a decrease of ¥1,181 million compared to theend of the previous fiscal year. The main components of the increase included a ¥2,142 million increase inmerchandise and finished goods, while the main components of the decrease were a ¥2,047 million decrease ininvestment securities primarily due to sale of cross-shareholdings and a ¥1,914 million decrease in other current
assets (accounts receivable-other, etc.).
Total liabilities were ¥44,392 million, a decrease of ¥3,843 million compared to the end of the previous fiscal
year. The main components of the decrease included a ¥1,698 million decrease in long- and short-term borrowings
including commercial papers, a ¥1,773 million decrease in other current liabilities (accounts payable - other, etc.),
and a ¥1,221 million decrease in notes and accounts payable - trade.
Net assets were ¥120,353 million, an increase of ¥2,662 million compared to the end of the previous fiscal year.
The main components of the increase included the recording of profit attributable to owners of parent amounting
to ¥2,657 million and a ¥1,470 million increase in foreign currency translation adjustment, while the main
components of the decrease included dividends paid of ¥ 2,505 million.
(Cash Flows)
As of September 30, 2023, consolidated cash and cash equivalents were ¥10,886 million, a decrease of ¥660
million compared to the end of the previous fiscal year. Below is an overview of cash flows and reasons for changes
during the period under review.
Net cash provided by operating activities for the period under review totaled ¥3,552 million, an increase of¥5,600 million compared to the corresponding period of the previous year. The major components of cash inflows
included profit before income taxes of ¥3,865 million, depreciation of ¥3,018 million, and income taxes refund of¥1,225 million, while the main components of cash outflows included a ¥1,928 million increase in inventories anda ¥1,486 million decrease in trade payables.
Net cash used in investing activities was ¥63 million, an increase of ¥2,612 million compared to thecorresponding period of the previous fiscal year. The main components of cash inflows included ¥4,595 million inproceeds from sale of investment securities, while the main components of outflows included purchase of noncurrent assets amounting to ¥3,626 million and purchase of investment securities amounting to ¥980 million.
Net cash used in financing activities totaled ¥4,822 million, a decrease of ¥4,462 million compared to thecorresponding period of the previous fiscal year. The main components of cash outflows included ¥2,495 million
spent for dividends paid and a ¥1,877 million decrease in short-term borrowings and commercial papers.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information3

Because the consolidated financial results for the period under review have been almost in line with expectations,the Company has decided not to change its earlier consolidated financial results forecast for the fiscal year ending
March 31, 2024, which was announced on May 12, 2023.

4

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise 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
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of September 30, 2023

11,547

10,88627,12927,807

24,114
7,128
7,054
6,622
(16)
83,58026,257
8,021
6,540
4,708
(17)
84,20336,657
10,39810,446
5,614
63,117
1,446

36,25810,447
10,4896,018
63,213
1,600

11,6986,151(67)
17,782
82,346
165,927

9,650
6,144
(66)
15,72780,541
164,745(Million yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Commercial papers
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Long-term leasehold and guarantee deposits received
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
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of September 30, 2023

10,010
6,077
−
438
263
1,353
11,90730,052

8,788
1,226
3,500
471
1,123
1,383
10,134
26,627

8,638
4,494
4,220
830
18,183
48,235

8,258
4,618
4,082
805
17,764
44,392

26,071
6,566
78,972(1,044)
110,566

26,071
6,568
79,124(970)
110,793

2,464
(144)
(13)
2,941
(56)
5,191
124
1,808
117,691
165,927

3,060
166
(13)
4,411
(33)
7,592
124
1,842
120,353
164,745

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income
Quarterly Consolidated Statements of Income
For the six months ended September 30(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income from non-current assets
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses on non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Loss on sales of investments in capital
Loss on COVID
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the six months ended
September 30, 2022
67,35047,33620,013
17,2062,806

For the six months ended
September 30, 2023
65,15344,64020,513
17,283
3,230

22
268
215
170
154
831

41
251
227
22
78
621

80
208
262
551
3,087

155
219
195
571
3,280

352
0
7
359

7
700
−
707

135
40
115
11
301
3,145
914
2,231
24
2,206

122
−
−
−
122
3,865
1,196
2,669
11
2,657

7

Quarterly Consolidated Statements of Comprehensive Income
For the six months ended September 30(Million yen)

ProfitOther 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

For the six months ended
September 30, 2022
2,231

For the six months ended
September 30, 2023
2,669

147
109
2,211
4
2,472
4,703

595
311
1,543
23
2,473
5,143

4,518

5,058

185

84

8

(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
For the six months ended
September 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale and retirement of non-current assets
Loss (gain) on sale and valuation of investment
securities
Loss on COVID
Other loss (gain)
Decrease (increase) in notes and accounts receivable trade and contract assets
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in trade payables
Increase (decrease) in leasehold and guarantee deposits
received
Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities
SubtotalInterest and dividends received
Interest paid
Payments for loss on COVID
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of non-current assets
Proceeds from sale of non-current assets
Payments for retirement of non-current assets
Purchase of investment securities
Proceeds from sale of investment securities
Decrease (increase) in loans receivable
Other, net
Net cash provided by (used in) investing activities

9

For the six months ended
September 30, 2023

3,145
2,895
66
(6)
(499)
(23)
(291)
80
3
(217)

3,865
3,018
37
0
(172)
23
(293)
155
6
115

(0)

(700)

115
(6)

−
(6)

(1,683)(266)(2,124)65(799)(1,928)611(1,486)

(127)

(194)

(664)
(65)
(136)
282
(99)
(96)
(1,998)(2,048)

(546)
(3)
2,234
285
(193)
−
1,225
3,552

(2,311)553(121)(1,525)619(0)
109(2,676)(3,626)
25
(98)
(980)
4,549
(18)
85
(63)

For the six months ended
September 30, 2022
Cash flows from financing activities
Increase (decrease) in short-term borrowings andcommercial papers
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from sale of treasury shares
Dividends paid
Dividends paid to non-controlling interests
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

10

For the six months ended
September 30, 2023

2,489

(1,877)

(438)
(1)
71
(2,406)
(65)
(8)
(360)
443
(4,641)
14,469
9,828

(456)
(2)
78
(2,495)(50)(17)(4,822)672(660)
11,547
10,886

(4) Notes to Quarterly Consolidated Financial Statements(Notes regarding assumptions of continuing operations)None applicable(Notes in the case of significant changes in shareholders’ equity)
None applicable(Application of an accounting method specific to the preparation of quarterly consolidated financial statements)(Calculation of income tax expenses)
The Company calculates income tax expenses by reasonably estimating the effective tax rate expected to be
imposed on profit before income taxes for the fiscal year ending March 31, 2024 and then multiplying profit before
income taxes for the six months ended September 30, 2023 by the effective tax rate thus estimated.
However, in cases where calculating tax expenses using the estimated effective tax rate yields a result that isnotably lacking rationality, tax expenses will be calculated using the statutory effective tax rate.
(Changes in accounting policies, changes or restatement of accounting estimates)
None applicable11

(Segment information, etc.)[Segment Information]
Six Months Ended September 30, 2022 (April 1, 2022 - September 30, 2022)
1. Information on Net Sales and Profit/Loss of Each Reportable Segment(Millions of yen)
Reportable segments
Functional
solutions

MedicalLifestylecreationsApparelTotal

Adjustment(Note 1)

Consolidated(Note 2)

Net sales
Sales to customers

24,5885,629

29,9987,133

67,350−67,350Intersegment sales andtransfers

248

1

83

38

372

(372)

−

Total

24,836

5,631

30,082

7,172

67,722(372)

67,350

Segment profit

3,114

1,078

190

198

4,582

(1,775)2,806

Notes:
1. The ¥(1,775) million segment profit adjustment consists of overall costs not allocated to reportable segments. Overall costs refer
to SG&A expenses not allocated to reportable segments.
2. Segment profit total was adjusted to be consistent with the operating profit recorded on the Quarterly Consolidated Statements ofIncome.

Six Months Ended September 30, 2023 (April 1, 2023 - September 30, 2023)
1. Information on Net Sales and Profit/Loss of Each Reportable Segment(Millions of yen)
Reportable segments
Functional
solutions

MedicalApparelLifestylecreations

Total

Adjustment(Note 1)

Consolidated(Note 2)

Net sales
Sales to customers

23,9685,491

29,294

6,398

65,153−65,153

Intersegment sales andtransfers

283

0

78

30

392

(392)

−

Total

24,251

5,492

29,373

6,428

65,546(392)

65,153

Segment profit

2,937

907

775

297

4,918

(1,687)

3,230

Notes:
1. The ¥(1,687) million segment profit adjustment consists of overall costs not allocated to reportable segments. Overall costs refer
to SG&A expenses not allocated to reportable segments.
2. Segment profit total was adjusted to be consistent with the operating profit recorded on the Quarterly Consolidated Statements ofIncome.

2. Matters on Changes in Reportable Segments, etc.
To clarify its position as a growth driver in the ongoing medium-term management plan, “VISION 2030 stage
1,” the medical business, which was previously included in the “Functional solutions” segment, has become aseparate the “Medical” segment starting from the first quarter of the fiscal year ending March 31, 2024. As a result,
the reportable segments of the GUNZE Group comprise “Functional solutions,” “Medical,” “Apparel,” and“Lifestyle creations.”
Segment information for the six months ended September 30, 2022 has been prepared based on the revised
reportable segments.
12

(Significant subsequent events)
None applicable13

3. Supplementary Information
Overview of Consolidated Results<Overview of Results>･The functional solutions business was impacted by the slowdown in demand for films due to rising prices and the high prices of raw
materials and fuels.
･The medical business saw strong sales of new products of bioabsorbable medical materials and favorable sales expansion in China
but sales of lasers struggled.
･The apparel business, with the ongoing recovery trend in sales, saw profitability improve as the Company proceeded with pricerevision including adding value to its products.
･The lifestyle creation business performed strongly thanks to the lifting of restrictions on activities.
<Main Extraordinary Income or Losses>･Gain on sale of investment securities: ¥0.7 billion<Forecasts for the Fiscal Year Ending March 31, 2024>･Because the consolidated financial results for the six months ended September 30, 2023, have been almost in line with expectations,the Company has decided not to change its previously announced consolidated financial results forecast.
･Annual dividend payment is scheduled to be ¥150 per share. (¥147 per share in the previous fiscal year)(1) Operating Results for the Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023)(Millions of yen)Six months ended
Six months ended
September 30, 2023 September 30, 2022

Change<Upper figures inbrackets %><(3.3)>Net sales

65,15367,350(2,196)<15.1>

Operating profit

3,230

2,806

423
<6.3>

Ordinary profit

3,280

3,087

Profit attributable to owners of parent

193<20.4>

2,657

2,206

Financing income/expenses
Interest/Dividends received
Interest expenses
Capital expenditures
Depreciation

137
293
(155)
1,765
3,056

210
291
(80)
3,326
2,962

451
(72)
2
(75)
(1,561)94

As of September 30,
2023

As of March 31,
2023

Total assets

164,745

165,927

Inventories

40,81838,927

Non-current assets

80,541

82,346

Net assets

120,353

117,691

Change<Upper figures inbrackets %><(0.7)>

Acquisition of treasury shares, etc.
Treasury shares acquired
Treasury shares disposed
Treasury shares held at the end of the previous fiscal year
Treasury shares held at the end of the period(Thousands of shares)
0
17
244
227

14

(1,181)<4.9>
2,521<(2.2)>(1,804)
<2.3>
2,662

(Amount)¥2 million¥76 million¥1,044million¥970 million

(2) Results by Business Segment(Millions of yen)Six months ended
September 30, 2023
AmountWeightOperating profit

Net sales

Segment
Functional Solutions
MedicalApparelLifestyle Creations
Subtotal
Elimination
Consolidated
Functional Solutions
MedicalApparelLifestyle Creations
Subtotal
Elimination
Consolidated

Six months ended
September 30, 2022
AmountWeightChangeAmount%24,251

37.0

24,836

36.7

(584)

5,492

8.4

5,631

8.3

(138)

(2.4)
(2.5)

29,37344.8

30,082

44.4

(709)

(2.4)

6,428

9.8

7,172

10.6

(743)

(10.4)

65,546100.0

67,722100.0(2,175)

(3.2)

(392)

(372)

(20)

–

65,15367,350(2,196)

(3.3)
(5.7)

2,937

59.7

3,114

68.0

(176)

907

18.5

1,078

23.5

(170)

(15.8)

775

15.8

190

4.1

584

305.9

297

6.0

198

4.4

98

49.4

4,918

100.0

4,582

100.0

335

7.3

(1,687)(1,775)

87

–

3,230

2,806

423

15.1

(3) Significant Financial Indicators

Operating profit to total assets ratio
Ordinary profit to total assets ratio
Operating profit to net sales ratio
Ordinary profit to net sales ratio

%
%
%
%

Six months ended
September 30, 2023
2.0
2.0
5.0
5.0

Equity ratio
ROE
Earnings per share
Diluted earnings per share
Net assets per share

%
%
¥
¥
¥

71.9
2.3
155.85155.496,936.93

Item(4) Cash Flows
Cash Flow Activity

70.1
1.9
127.68127.386,654.01

Change
0.3
0.1
0.8
0.4
1.8
0.4
28.17
28.11
282.92(Millions of yen)Six months Six months
ended
ended
ChangeSeptember September
30, 2023 30, 2022

Breakdown of Major Components

Profit before income taxes: 3,865; Depreciation: 3,018;
Income taxes refund: 1,225; Increase in inventories:
5,600 (1,928); Decrease in trade payables: (1,486)
Proceeds from sale of investment securities: 4,549;
Purchase of non-current assets: (3,626); Purchase of
2,612 investment securities: (980)
Dividends paid: (2,495); Decrease in short-term(4,462) borrowings and commercial papers: (1,877)

Operating activities

3,552(2,048)Investing activities(63)(2,676)(4,822)

(360)

672

443

229

(660)

(4,641)

3,980

10,886

9,828

1,058

Financing activities
Effect of exchange rate change on
cash and cash equivalents
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at end of
periodSix months ended
September 30, 2022
1.7
1.9
4.2
4.6

15

(5) Capital Expenditures and Depreciation and Amortization by Segment(Millions of yen)

FY2023 Plan
Item

Capital expenditures*Incl. intangible
assetsDepreciation* Incl. amortizationof goodwill

AmountFY2022

WeightResults for
six months
ended
September
30, 2023

Amount

49.1

753

4,816

YoY

Weight50.1

ChangeFunctional Solutions

5,400

584

MedicalApparel

1,000

9.1

107

553

5.8

447

2,100

19.1

433

1,493

15.6

607

Lifestyle Creations

1,700

15.5

314

2,053

21.4

(353)

Corporate
Total

800

7.2

158

680

7.1

120

11,000

100.0

1,765

9,597

100.0

1,403

Functional Solutions

2,600

40.0

1,203

2,423

41.2

177

500

7.7

201

371

6.3

129

MedicalApparel

1,400

21.5

646

1,250

21.2

150

Lifestyle Creations

1,500

23.1

673

1,370

23.2

130

Corporate
Total

500

15.4

333

478

8.1

22

6,500

100.0

3,056

5,894

100.0

606

Main Investment Plans for FY2023
・Plastic film production resource-circulating factory and equipment:
・Expansion of the medical factory/automation of production facilities:
・Renewal of the apparel SCM system:
・Renovation of the commercial facilities:¥3,000 million¥300 million¥600 million¥600 million(6) FY2023 Forecast

Item
Net sales
Operating profit
Ordinary profit
Profit attributable to owners ofparent(Millions of yen)

FY2023 Forecast

FY2022 Results

ChangeAmountChange (%)

140,000
7,500
7,500

136,030
5,812
6,021

3,970
1,688
1,479

2.9
29.0
24.6

4,800

4,501

299

6.6

16

(7) Forecast of Results by Segment

Operating profit

Net sales

Item
Functional Solutions
MedicalApparelLifestyle Creations
Subtotal
Elimination
Consolidated
Functional Solutions
MedicalApparelLifestyle Creations
Subtotal
Elimination
Consolidated(Millions of yen)

FY2023 Forecast
AmountWeightFY2022 Results
AmountWeightChangeAmountChange (%)

51,80036.8

49,555

36.2

2,245

4.5

12,0008.5

10,957

8.0

1,043

9.5

63,30044.9

60,986

44.6

2,314

3.8

13,8009.8

15,32711.2(1,527)(10.0)

140,900

100.0

136,827

100.0

4,073

3.0

(900)

(797)

(103)

–

140,000

136,030

3,970

2.9

7,100

61.2

6,835

72.8

265

3.9

2,300

19.8

2,082

22.1

218

10.5

1,400

12.1

(222)

(2.4)

1,622

–

800

6.9

705

7.5

95

13.5

11,600

100.0

9,401

100.0

2,199

23.4

(4,100)(3,588)

(512)

–

7,500

5,812

1,688

29.0

The above figures remain unchanged from the financial results forecast for the fiscal year ending March 31, 2024, which was announced
on May 12, 2023.

17