October 31, 2023

SUMMARY OF FINANCIAL STATEMENTS (Consolidated)
Second Quarter Results for the Fiscal Year Ending March 31, 2024

[Japanese GAAP]

Name of listed company:
JSP Corporation
Stock Exchange Listed: Tokyo Stock Exchange
Code Number: 7942
URL: https://www.co-jsp.co.jp/english/
Representative: Tomohiko Okubo, President, Representative Director
Contact person: Yasushi Komori, Director, Executive Officer,
General Manager, Accounting Department, Finance & Accounting Division
Phone: +81-3-6212-6306
Scheduled date of filing of Quarterly Report:
November 7, 2023
Scheduled date of payment of dividend:
December 4, 2023
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for analysts)

Note: The original disclosure in Japanese was released on October 31, 2023 at 15:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Second Quarter Results (April 1, 2023 to September 30, 2023) for the Fiscal Year Ending March 31, 2024
(1) Consolidated business performance(Percentages represent year-on-year changes)
Net sales

Operating profit

Million yen%

Million yenProfit attributable toowners of parent

Ordinary profit%

Million yen%

66,432
3.4
3,247 131.3
3,617
94.4
Six months ended Sep. 30, 2023
64,25215.4
1,404 (53.0)
1,860(39.6)
Six months ended Sep. 30, 2022
Note: Comprehensive income:Six months ended Sep. 30, 2023:
7,748 million yen (down 1.9%)
Six months ended Sep. 30, 2022:
7,897 million yen (up 71.4%)

2,795
1,378%

102.8(39.5)

Fully diluted net
income per share

Net income per share
YenYen

93.80
46.26

Six months ended Sep. 30, 2023
Six months ended Sep. 30, 2022

Million yen-(2) Consolidated financial position
Total assets
As of Sep. 30, 2023
As of Mar. 31, 2023
Reference: Shareholders’ equity:Net assets

Million yen

Shareholders’ equity ratio Net assets per share

Million yen

152,063
103,126
144,528
96,123As of Sep. 30, 2023: 98,478 million yen As of Mar. 31, 2023:%Yen64.8
3,303.74
63.5
3,076.73
91,711 million yen

2. Dividends
1Q-end2Q-endYen

Annual dividends per share
3Q-endYear-end
Yen

Yen

25.00
Fiscal year ended Mar. 31, 2023
Fiscal year ending Mar. 31, 2024
25.00
Fiscal year ending Mar. 31, 2024
(forecasts)
Note: Revisions to the most recently announced dividend forecast: NoneTotalYen

Yen-

25.00

50.00

-

25.00

50.00

3. Forecast for Consolidated Business Performance in the Fiscal Year Ending March 31, 2024
(Percentages represent year-on-year changes)(April 1, 2023 to March 31, 2024)
Net sales
Million yen

Operating profit%

Million yen

Ordinary profit%

Million yen%

Profit attributable toowners of parent

Million yen%

Net incomeper shareYen

136,000
3.36,300
113.1
6,800
102.2
5,000
97.5
167.74
Full year
Note: Revisions to the most recently announced consolidated forecast: Yes
Please refer to “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast
and Other Forward-looking Statements” on page 3 of the attached documents.

* Notes(1) Changes in principal subsidiaries during the period (changes in specified subsidiaries resulting in changes in thescope of consolidation): None
Newly added: -Excluded: -(2) Application of special accounting methods in the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of shares outstanding (common stock)1) Number of shares outstanding at the end of the period including treasury shares
As of Sep. 30, 2023:

31,413,473 shares

As of Mar. 31, 2023:

31,413,473 shares

As of Mar. 31, 2023:

1,605,300 shares

Six months ended Sep. 30, 2022:

29,808,343 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2023:

1,605,444 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2023:

29,808,104 shares* The current quarterly financial report is not subject to quarterly review by certified public accountants or an auditing firm.
* Cautionary statement with respect to forward-looking statements
Forecasts of future performance in this report are based on assumptions judged to be valid and information currently available toJSP. Actual results may differ significantly from these forecasts for a number of factors. Please refer to “1. Qualitative Information
on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements”
on page 3 of the attached documents for assumptions for forecasts and notes of caution for usage.

JSP Corporation (7942) Second Quarter Results for the Fiscal Year Ending March 31, 2024

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first half of the current fiscal year, the influence of the COVID-19 pandemic on economic activity has been
gradually alleviating. However, the global economy has been displaying growing indications of slowdown owing to
the prolonged situation in Ukraine, escalating resource and energy prices, and the implementation of a monetary
tightening policy aimed at curbing inflation. The Japanese economy exhibited a modest upturn, primarily driven by anupswing in personal consumption, among other factors. This improvement was facilitated by the relaxation of pandemic
restrictions following the shift of the disease to category 5 under the Infectious Disease Control Law. Nevertheless, theeconomic outlook remains uncertain due to inflation, the negative effect of soft overseas demand on production andexports, and fluctuations in financial and capital markets.
The foamed plastics industry in Japan faced serious challenges as the recovery in demand came to a standstill and raw
material prices and the cost of utilities increased.
Under these circumstances, JSP is working to further increase its corporate value by implementing reform strategies
such as improving profitability, increasing growth potential and tackling sustainability management challenges toexpand the value we provide for both economic value and social value to our customers and to address social issues
and fortifying the management base. They are the basic concepts underlying the medium-term business plan, “Changefor Growth.”
Sales were higher than one year earlier mainly because of higher overseas sales volume and revisions of prices of JSP
products. The operating profit increased from one year earlier because of higher sales and reduction in costs.
Net sales in the first half were 66,432 million yen, up 3.4% from the same period of the previous fiscal year. Operating
profit increased 131.3% to 3,247 million yen, ordinary profit increased 94.4% to 3,617 million yen and profit
attributable to owners of parent increased 102.8% to 2,795 million yen.
Results by business segment were as follows.
Extrusion Business
Sales of materials for household products, mainly STYRENPAPER, a foamed polystyrene sheet used in food packaging,decreased. This was mainly the result of lower sales volume for STYRENPAPER in the food tray category and for
MIRABOARD, a material used for advertising displays.
Sales were lower than one year earlier for industrial products, including MIRAMAT, a foamed polyethylene sheet usedfor industrial packaging materials and flat panel displays. The sales volume of value-added products and generalpurpose products decreased.
Sales of MIRAFOAM, an extruded board made of foamed polystyrene, and other construction and civil engineering
materials increased because of product price revisions and the higher sales volume of value-added products, althoughthe sales volume of materials used for civil engineering applications decreased and the sales volume of materials forfabrication in the building construction and housing markets unchanged from one year earlier.
Total sales in this segment decreased as the total sales volume decreased despite product price revisions. Earnings
decreased because the sales volume of value-added products declined and cost of utilities increased.
As a result, extrusion business sales decreased 0.2% to 20,823 million yen and operating profit decreased 4.7% to1,012 million yen.
Bead Business
Sales of high-performance products, mainly ARPRO/P-BLOCK, an expanded polypropylene product manufactured
and sold worldwide, increased because of higher sales volume mainly due to strong performance in the non-automotivesector.
In Japan, the automotive sector witnessed an increase in sales volume, while the sales volume of FOAMCORE, ahybrid molding product, remained steady year on year. In North America, sales volume of returnable containers andother products increased, although the automotive sector experienced a decline. In South America, sales volume in theautomotive sector increased. In Europe, the sales volume in the HVAC and other sectors was higher, although the sales

1JSP Corporation (7942) Second Quarter Results for the Fiscal Year Ending March 31, 2024

volume declined in the automotive sector. In Asia, the sales volume declined in China and in Taiwan where thepackaging materials sector performed well in the same period of the previous fiscal year.
Sales of expandable polystyrene bead products, chiefly STYRODIA, decreased mainly due to lower sales volume
because of lower demand for these products in the fisheries and agriculture sectors.
Total sales in this segment increased because of higher sales volume of high-performance products and product pricerevisions, although sales volume was down. Earnings increased due to higher sales and cost reduction, despite thehigher cost of utilities and personnel expenses.
As a result, sales in the bead business increased 6.3% to 42,738 million yen and operating profit increased 266.6% to2,779 million yen.
Other
Sales of general packaging materials decreased in Japan due to lower demand in the automotive parts transportationand other market sectors. In China, lower demand for packaging materials for many types of components resulted inlower sales.
As a result, sales in the other segment decreased 9.6% to 2,870 million yen and operating profit decreased 68.8% to 26
million yen.
(2) Financial Position
Total assets as of September 30, 2023 were 152,063 million yen, up 7,534 million yen from March 31, 2023. Current
assets increased 5,306 million yen to 79,128 million yen mainly due to increases in notes and accounts receivable-tradeof 2,809 million yen and electronically recorded monetary claims-operating of 2,229 million yen. Non-current assets
increased 2,228 million yen to 72,934 million yen due to an increase in machinery, equipment and vehicles, net of
1,054 million yen.
Total liabilities as of September 30, 2023 were 48,936 million yen, up 531 million yen from March 31, 2023. Current
liabilities increased 243 million yen to 36,687 million yen mainly due to increases in notes and accounts payable-tradeof 1,022 million yen and other current liabilities of 1,058 million yen due to an increase in accrued expenses, while
there was a decrease in short-term borrowings of 2,346 million yen. Non-current liabilities increased 287 million yen
to 12,248 million yen.
As a result, net assets totaled 103,126 million yen and the shareholders’ equity ratio increased 1.3 percentage points to64.8%.
A summary of cash flows and major components are as follows.
Net cash provided by operating activities totaled 5,204 million yen, an increase of 3,427 million yen from the same
period of the previous fiscal year. Inflows included 3,601 million yen from profit before income taxes, 3,642 million
yen from depreciation and a 1,224 million yen increase in trade payables. Outflows included an increase in tradereceivables of 3,865 million yen.
Net cash used in investing activities totaled 3,400 million yen, an increase of 216 million yen from the same period of
the previous fiscal year. Outflows included 3,261 million yen for the purchase of non-current assets.
Net cash used in financing activities totaled 3,506 million yen, compared with net cash provided of 1,412 million yen
in the same period of the previous fiscal year. Inflows included proceeds from long-term borrowings of 2,500 millionyen. Outflows included 2,461 million yen from a net decrease in short-term borrowings, 2,430 million yen for therepayment of long-term borrowings and cash dividends paid of 745 million yen.
As a result, cash and cash equivalents totaled 14,175 million yen as of September 30, 2023, down 521 million yen fromMarch 31, 2023.

(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
In the second half of the current fiscal year, risk concerning the Ukraine crisis remains high and there is now additional

2

JSP Corporation (7942) Second Quarter Results for the Fiscal Year Ending March 31, 2024

risk involving the crisis in the Middle East. The automobile industry strike in the United States is another source ofuncertainty. As a result, we expect that the global economy will remain uncertain for a while. The outlook for energy
prices includes a limited ability to increase the supply of crude oil and rising uncertainty about the supply caused byfurther growth in geopolitical risk. However, the energy prices are expected to remain at the current level due to thepossibility of slowing economic growth in Europe, the United States and other major countries caused by monetary
tightening and sluggish economic growth in China.
Extrusion BusinessIn the household product materials category, which is mainly STYRENPAPER, a foamed polystyrene sheet used infood packaging, we expect that the sales volume of materials for food trays and of MIRABOARD, a material used foradvertising displays, will be slightly below the forecast announced on July 31, 2023.
For industrial packaging products, mainly MIRAMAT, foamed polyethylene sheet used for industrial packaging
materials and flat panel displays, we originally expected demand outside Japan to recover in the second half but now
anticipate no change in demand.
In the category of construction and civil engineering materials, mainly MIRAFORM, extruded board made of foamed
polystyrene, the sales volume of residential thermal insulation materials is expected to remain low because of concerns
about a decline in home purchase sentiment caused by the rising cost of building materials and other reasons.
Although cost cutting activities, such as measures for boosting productivity and lowering fixed expenses, arecontinuing, the outlook for the extrusion business is for lower sales and earnings than in the previous forecast becauseof a decline in sales volumes.
Bead BusinessWe expect that sales growth of ARPRO/P-BLOCK, an expanded polypropylene product manufactured and soldworldwide, will be higher than in the previous forecast because of the outlook for a large volume of automobile
production and strong demand in non-automotive sectors, especially in Europe and the United States. We forecast
higher earnings in this business due to the larger sales volume, declining prices of raw materials in North America, andrevisions to assumptions about exchange rates.
For beads, mainly STYRODIA expandable polystyrene bead products, we expect that sales will be less than in ourprevious forecast because of weak demand in the fisheries sector and in other markets. Earnings are expected to belower than the previous forecast due to the outlook for an increase in the cost of styrene monomer.
Overall, in this business we forecast that sales volume will stay at the same level as the previous forecast, sales will
increase due to the positive effect of exchange rates, and earnings will be higher than the previous forecast.
OtherWe forecast sales and earnings will be about the same as in the previous forecast.
As a result, the consolidated forecast for the fiscal year ending March 31, 2024 was revised as follows.

3

JSP Corporation (7942) Second Quarter Results for the Fiscal Year Ending March 31, 2024

Revision to Consolidated Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)

Previous forecast (A)Revised forecast (B)Change (B – A)
Percentage change (%)(Reference)Previous fiscal year results(Fiscal year ended Mar. 31, 2023)

Net sales

OperatingprofitOrdinary
profitProfit attributableto owners of parent

Net income
per share

Million yen

Million yen

Million yen

Million yen

Yen

135,000

5,600

5,900

4,300

144.26

136,000

6,300

6,800

5,000

167.741,000

700

900700

-

0.7

12.5

15.3

16.3

-

131,714

2,956

3,363

2,531

84.91

Assumptions
Dubai crude oil (USD/BL)
JPY/USD
Exchange rates
JPY/EUR
JPY/CNY

Previous forecast

Revised forecast8085140142

150

153

20.0

20.0

Note: The above forecasts are based on all information currently available and the actual results may differ due tovarious factors.

* This summary report is solely a translation of “Kessan Tanshin” (in Japanese, including the attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

4