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 2, 2024

Consolidated Financial Statements – Summary(Three months ended June 30, 2024)
All financial information has been prepared in accordance with accounting principles generally acceptedin 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, Corporate Officer, General Manager, Corporate
Communications

Tel:+81 (6) 6348-1314

Start of Distribution of Dividend (Scheduled):–

Preparation of Supplementary Materials for Financial Results:

No

Holding of Presentation of Financial Results:

No

1. Consolidated Operating Results for the three months ended June 30, 2024 (April 1, 2024 to June 30,2024)(1) Consolidated operating results(Amounts less than one million yen are omitted)(Percentages represent year-over-year changes)

Net sales

Operating profit

Three months ended¥ millions%¥ millions%
June 30, 2024
33,382
5.3
2,083 37.5
June 30, 2023
31,706 (0.5)
1,515 21.0
Note: Comprehensive income
Three months ended June 30, 2024: ¥2,657 million [2.7%]
Three months ended June 30, 2023: ¥2,587 million [(2.1)%]
Three months ended
June 30, 2024
June 30, 2023

EPS
¥

95.98
93.05

Ordinary profit¥ millions

2,272
1,640

Diluted EPS
¥
95.75
92.84

%

38.5
4.5

Profit attributable toowners of parent¥ millions

1,600
1,586

%

0.9
35.4

(2) Consolidated financial position
Total assets

Net assets¥ millions¥ millions

As of June 30, 2024
165,028
As of March 31, 2024
161,971
Reference: Total equity
As of June 30, 2024: ¥118,665 million

Equity ratio

Net assets per share%

120,565
120,467

¥

71.9
73.2

7,114.32
7,112.73

As of March 31, 2024: ¥118,642 million

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

2nd quarter-end

3rd quarter-end

Year-end

Total

FY2023−−−153.00
FY2024−FY2024 (projected)−−
157.00(Note) Revision to the projected dividends announced most recently: None

153.00157.003. Projected results for FY2024 (April 1, 2024 to March 31, 2025)(Percentages represent year-over-year changes)

Net sales

FY2024 full year

¥ millions

140,000%

5.4

Profit attributable toowners of parent
FY2024 full year

Operating profit¥ millions

%

9,000

32.8

EPS

¥ millions

%

¥

7,500

46.8

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

Ordinary profit¥ millions

9,000

%

32.9

Notes(1) Significant changes in the scope of consolidation during the period: 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 June 30, 2024: 17,293,516 shares
As of March 31, 2024: 17,293,516 shares(b) Treasury stock at the end of period:
As of June 30, 2024: 613,644 shares
As of March 31, 2024: 613,226 shares(c) Average number of shares during the period:
Three months ended June 30, 2024: 16,680,041 shares
Three months ended June 30, 2023: 17,048,701 shares* Review of the Japanese-language originals of the attached quarterly consolidated financial statements bycertified public accountants or an audit corporation: Yes (voluntary)* 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 ...............................................................4(1) Quarterly Consolidated Balance Sheets ................................................................................................4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income .........................................................................................................................6
Quarterly Consolidated Statements of Income ......................................................................................6
For the three months ended June 30 ....................................................................................................6
Quarterly Consolidated Statements of Comprehensive Income ............................................................7
For the three months ended June 30 ....................................................................................................7(3) Notes to Quarterly Consolidated Financial Statements .........................................................................8(Notes regarding assumptions of continuing operations) ...................................................................8(Notes in the case of significant changes in shareholders’ equity) .....................................................8(Application of an accounting method specific to the preparation of quarterly consolidated financial
statements) ..........................................................................................................................................8(Changes in accounting policies, changes in accounting estimates, and restatement after error
corrections) .........................................................................................................................................8(Segment information, etc.) ................................................................................................................9(Notes regarding statements of cash flows) ......................................................................................10(Significant subsequent events) ........................................................................................................10
Independent Auditor’s Interim Review Report on the Quarterly Consolidated Financial Statements ........... 111

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 three months ended June 30, 2024 (April 1, 2024 - June 30, 2024), the Japanese economy was on amoderate recovery path due to the improvement in business sentiment, movement toward increasing income andother factors. The economic outlook, however, remains unclear due to factors including the rise in prices
associated with soaring labor and logistics costs in addition to raw material prices, and rapid exchange rate
fluctuations, as well as the globally unstable political situation. Amid this operating environment, the GUNZEGroup continued to pursue the four basic strategies of “Creation of new value,” “Capital cost-focusedmanagement,” “Evolution of corporate constitution,” and “Environmentally responsible management” in the lastyear of its medium-term management plan, “VISION 2030 stage 1.”
The GUNZE Group’s operating results for the period under review are as follows:
Net sales:
Operating profit:
Ordinary profit:
Profit attributable to owners of parent:¥33,382 million¥2,083 million¥2,272 million¥1,600 million(up by 5.3% year-on-year)(up by 37.5% year-on-year)(up by 38.5% year-on-year)(up by 0.9% year-on-year)

Net sales increased due to the strong performance of the functional solutions business where the materials
category was on a recovery trend and the medical business where new products and products for China expanded.
Operating profit and ordinary profit increased primarily owing to the profit increase in the functional solutions
business and the medical business, as well as the restructuring in the sports club field. Profit attributable to ownersof parent slightly increased mainly due to a decrease in gain on sale of investment securities(Results by Business Segment)[Functional Solutions]
The functional solutions business recorded net sales of ¥12,650 million (up by 11.7% year-on-year) and an
operating profit of ¥1,665 million (up by 17.0% year-on-year).
<Major factors in the changes>
In plastic films, sales in Japan remained strong, although the business was impacted by stagnant demand
overseas.
In engineering plastics, in addition to the recovery of the office equipment market, products for semiconductors
performed strongly.
[Medical]
The medical business recorded net sales of ¥3,109 million (up by 28.5% year-on-year) and an operating profitof ¥594 million (up by 28.2% year-on-year).
<Major factors in the changes>Market penetration of new products including adhesion prevention agent progressed in Japan.
Sales of products for China, with a focus on the tissue reinforcement felt, expanded.

2

[Apparel]
The apparel business recorded net sales of ¥14,795 million (up by 1.5% year-on-year). Operating profit was¥563 million (up by 64.0% year-on-year) due to the effect of business restructuring and other factors, despite an
unfavorable impact of exchange rates.
<Major factors in the changes>
In the apparel business, although sales of products sold throughout the year stagnated, seasonal items performed
strongly.
Sales through the e-commerce and the Direct to Consumer channel of company-owned stores continued toperform strongly.
[Lifestyle Creations]
The lifestyle creation business recorded net sales of ¥3,024 million (down by 15.0% year-on-year) and an
operating profit of ¥150 million (down by 13.0% year-on-year).
<Major factors in the changes>

The real estate category recorded a decline in both revenue and profit due to the impact of sales of idle land
redevelopment in the previous fiscal year and the increased burden of depreciation for shopping centers.
The sports club business improved the profitability, although its sales decreased due to the re-examining of
unprofitable stores.
(2) Explanation of Financial Position
As of June 30, 2024, total assets were ¥165,028 million, an increase of ¥3,057 million compared to the end of
the previous fiscal year. The main components of the increase included a ¥2,111 million increase in other, net inproperty, plant and equipment (construction in progress, etc.) and a ¥749 million increase in merchandise andfinished goods.
Total liabilities were ¥44,463 million, an increase of ¥2,959 million compared to the end of the previous fiscal
year. The main components of the increase included a ¥4,007 million increase in long- and short-term borrowings
including commercial papers, while the main components of a decrease included a ¥844 million decrease inprovision for bonuses.
Net assets were ¥120,565 million, an increase of ¥98 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 ¥1,600 million and a ¥1,117 million increase in foreign currency translation adjustment, while the main
components of a decrease included dividends paid of ¥2,552 million.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
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, 2025, which was announced on May 14, 2024.

3

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2024
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

4

As of June 30, 2024

10,81811,30827,58827,36524,706
7,425
6,026
4,245
(13)
80,79625,456
7,751
6,324
4,129
(13)
82,322

36,191
13,601
10,4793,325
63,597
1,928

35,955
13,366
10,5095,436
65,268
1,846

6,833
8,884
(69)
15,64881,174
161,971

6,525
9,108
(43)
15,59082,706
165,028

(Million yen)
As of March 31, 2024
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
Provision for business restructuring
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

5

As of June 30, 2024

8,286
252
−
462
1,357
1,405
1,783
11,342
24,890

8,547
457
4,200
491
810
560
1,603
11,591
28,262

8,230
3,937
3,986
458
16,61341,503

7,805
3,920
4,018
456
16,20044,46326,071
6,565
81,576(2,974)111,239

26,071
6,565
80,624(2,976)110,285

2,438
156
(13)
4,118
702
7,403
124
1,700
120,467
161,971

2,267
221
(13)
5,236
667
8,380
124
1,775
120,565
165,028

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income
Quarterly Consolidated Statements of Income
For the three months ended June 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
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the three months ended
June 30, 2023
31,706
21,708
9,997
8,482
1,515

For the three months ended
June 30, 2024
33,382
22,636
10,745
8,662
2,083

18
218
146
35
36
456

8
135
168
70
46
429

94
140
95
330
1,640

22
161
55
239
2,272

3
657
661

0
144
145

49
49
2,252
646
1,606
20
1,586

48
48
2,369
726
1,642
41
1,600

6

Quarterly Consolidated Statements of Comprehensive Income
For the three months ended June 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 three months ended
June 30, 2023
1,606

For the three months ended
June 30, 2024
1,642

462
253
254
11
981
2,587

(171)
65
1,155
(34)
1,014
2,657

2,537

2,577

49

79

7

(3) 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, 2025 and then multiplying profit before
income taxes for the three months ended June 30, 2024 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 in accounting estimates, and restatement after error corrections)None applicable8

(Segment information, etc.)[Segment Information]
Three Months Ended June 30, 2023 (April 1, 2023 - June 30, 2023)
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

11,1902,420

14,5503,545

31,706−31,706

Intersegment sales andtransfers

136

0

32

12

182

(182)

−

Total

11,3262,420

14,583

3,557

31,888(182)

31,706

1,423

463

343

172

2,403

(888)

1,515

Segment profit

Notes:
1. The ¥(888) 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.

Three Months Ended June 30, 2024 (April 1, 2024 - June 30, 2024)
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

12,493

3,109

14,763

3,015

33,382−33,382

Intersegment sales andtransfers

156

－

31

9

198

(198)

−

Total

12,6503,109

14,795

3,024

33,580(198)

33,382

1,665

594

563

150

2,973

(890)

2,083

Segment profit

Notes:
1. The ¥(890) 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.

9(Notes regarding statements of cash flows)
The Company has not prepared the quarterly consolidated statements of cash flows for the three months ended
June 30, 2024. Depreciation (including amortization for intangible assets) and amortization of goodwill for thethree months ended June 30 are as follows:(Millions of yen)
For the three months ended
For the three months ended
June 30, 2023
June 30, 2024
Depreciation
1,486
1,673
Amortization of goodwill
26
11(Significant subsequent events)
None applicable10Independent Auditor’s Interim Review Report on the Quarterly Consolidated Financial Statements
August 1, 2024
To the Board of Directors of
GUNZE LIMITED

Kyoritsu Audit Corporation
Osaka Office
Representative
Partner,Engagement
Partner

Certified public
Kiyoshi Asada
accountant

Engagement
Partner

Certified public
Tatsuya Teshimaaccountant

Auditor’s Conclusion
We have conducted an interim review of the quarterly consolidated financial statements of GUNZE LIMITED for the first quarteraccounting period (from April 1, 2024 to June 30, 2024) and the cumulative first quarter (from April 1, 2024 to June 30, 2024) of the
fiscal year from April 1, 2024 to March 31, 2025 included in the “Attachment” of the summary of quarterly consolidated results, namely,
the quarterly consolidated balance sheets, quarterly consolidated statements of income, quarterly consolidated statements ofcomprehensive income, and notes thereto.
In the interim review that we conducted, we found no instances that would lead us to believe that the above quarterly consolidated
financial statements were not prepared in all material respects in accordance with Article 4, Paragraph 1 of the Tokyo Stock Exchange’s
Standards for Preparation of Quarterly Financial Statements and accounting standards for quarterly financial statements that are
generally accepted in Japan (however, omissions set forth in Article 4, Paragraph 2 of the Standards for Preparation of Quarterly
Financial Statements apply).
Basis for Auditor’s Conclusion
We conducted our interim review in accordance with the interim review standards that are generally accepted in Japan. Our
responsibilities under the interim review standards are described in “Auditor’s Responsibilities in Interim Review of Quarterly
Consolidated Financial Statements.” Pursuant to the rules on professional ethics in Japan, we are independent from the Company andits consolidated subsidiaries, and have fulfilled our other ethical responsibilities as an auditor. We believe that we have obtained theevidence to form a basis for our conclusion.
Responsibility of Management, Corporate Auditors and the Board of Corporate Auditors with Respect to Quarterly Consolidated
Financial Statements
The responsibility of management is to prepare quarterly financial statements in accordance with Article 4, Paragraph 1 of the Tokyo
Stock Exchange's Standards for Preparation of Quarterly Financial Statements and accounting standards for quarterly financial
statements that are generally accepted in Japan (however, omissions set forth in Article 4, Paragraph 2 of the Standards for Preparationof Quarterly Financial Statements apply). This includes designing and operating internal controls that management deems necessary inorder to prepare quarterly consolidated financial statements free of material misstatements, whether due to fraud or error.

11

In preparing the quarterly consolidated financial statements, management is responsible for evaluating whether it is appropriate toprepare the quarterly consolidated financial statements based on the premise of a going concern, and for disclosing matters relating togoing concern if required based on Article 4, Paragraph 1 of the Tokyo Stock Exchange’s Standards for Preparation of Quarterly
Financial Statements and accounting standards for quarterly financial statements that are generally accepted in Japan (however,omissions set forth in Article 4, Paragraph 2 of the Standards for Preparation of Quarterly Financial Statements apply).
The Corporate Auditors and Board of Corporate Auditors are responsible for monitoring the execution of Directors’ duties related
to designing and operating the financial reporting process.
Auditor’s Responsibilities in the Interim Review of Quarterly Consolidated Financial Statements
The auditor’s responsibility is to express a conclusion with respect to the quarterly consolidated financial statements from an
independent standpoint in an interim review report based on the interim review it has performed.
The auditor shall exercise professional judgment throughout the interim review process in accordance with interim review standards
generally accepted in Japan, and perform the following while maintaining professional skepticism:
・ Primarily, make inquiries of management, persons responsible for financial and accounting matters, and others, and perform
analytical procedures and other interim review procedures. Interim review procedures are limited procedures relative to audits ofannual financial statements conducted in accordance with auditing standards generally accepted in Japan.
・ If it is determined that there is material uncertainty regarding events or circumstances that would raise substantial doubts about
factors relating to the premise of a going concern, the auditor shall conclude, based on the evidence obtained, whether there are any
factors that lead the auditor to believe that the quarterly consolidated financial statements have not been prepared in accordancewith Article 4, Paragraph 1 of the Tokyo Stock Exchange's Standards for Preparation of Quarterly Financial Statements and theaccounting standards for quarterly financial statements that are generally accepted in Japan (however, omissions set forth in Article
4, Paragraph 2 of the Standards for Preparation of Quarterly Financial Statements apply). Moreover, if there is material uncertainty
regarding the premise of a going concern, the auditor is required to call attention to the notes to the quarterly consolidated financial
statements in the interim review report, or to express a qualified or negative conclusion on the quarterly consolidated financial
statements if the notes to the quarterly consolidated financial statements regarding material uncertainty are not adequate. The
auditor’s conclusion is based on evidence obtained up to the date of the interim review report, but future events or circumstances
may prevent the company from continuing as a going concern.
・ Evaluate whether there are any matters that lead the auditor to believe that the presentation and notes of the quarterly consolidated
financial statements have not been prepared in accordance with Article 4, Paragraph 1 of the Tokyo Stock Exchange’s Standards
for Preparation of Quarterly Financial Statements and accounting standards for quarterly financial statements generally accepted inJapan (however, omissions set out in Article 4, Paragraph 2 of the Standards for Preparation of Quarterly Financial Statements
apply).
・ Obtain evidence regarding financial information of the Company and its consolidated subsidiaries that forms the basis for expressing
conclusions about the quarterly consolidated financial statements. The auditor is responsible for directing, supervising, andreviewing of the interim review of the quarterly consolidated financial statements. The auditor is solely responsible for the auditor's
conclusions.
The auditor shall report to the Corporate Auditors and of Board of Corporate Auditors on the planned scope of the interim review,
its timing, and any significant findings from the interim review.
The auditor shall report to the Corporate Auditors and of Board of Corporate Auditors regarding the compliance with provisions
related to professional ethics in Japan regarding independence, as well as on any matters that are reasonably considered to affect theauditor’s independence, and details of any measures that are taken to remove impediments, or any safeguards adopted to reduce
impediments to an acceptable level.
Conflicts of Interest
There are no special interests between the audit corporation or its engagement partners and the Company or its consolidated
subsidiaries that should be disclosed in accordance with the provisions of the Certified Public Accountants Act.

12

End
Notes 1. The original copy of the above interim review report is kept separately by the Company (the company
disclosing the quarterly consolidated financial statements).
2. XBRL data and HTML data are not included within the scope of the interim review report.

13