This is an English translation of an excerpt of the flash report of the financial results issued in Japanese.
The figures for these financial statements are prepared in accordance with the accounting principles based on Japanese law.

Consolidated Financial Results for the Third Quarter of Fiscal Year 2023
(Japanese GAAP)
April 13, 2023
Listed company nameSuminoe Textile Co., Ltd.
Listed on the Tokyo Stock Exchange
Code number
3501
URL: https://suminoe.co.jp/
Representative(Title) President(Name) Teppei Nagata
Responsible contact person (Title) Managing Director, General Manager, Corporate Planning Department(Name) Hiroaki Usugi(Phone) +81-6-6251-6803
Scheduled date of filing of quarterly report: April 13, 2023 Scheduled date of dividend payment: ―Preparation of supplementary explanatory documents for quarterly financial results: No
Holding analyst meeting for quarterly financial results: No(Amounts are rounded down to the nearest million yen) (Figures in brackets are negative)

1. Consolidated Financial Results for the 3rd Quarter of FY2023 (June 1, 2022 to February 28, 2023)(1) Consolidated Operating Results (accumulation)(% change from the previous year)
Net sales

Operating income

Profit attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

68,837

15.2

78

－

360

(24.1)(680)－

59,759

2.3

(311)

－

474

(29.1)(338)－

Q3 of FY ending May 31,
2023
Q3 of FY ended May 31,
2022(Note) Comprehensive income

Q3 of FY ending May 31, 2023: 479 million yen (― %)Q3 of FY ended May 31, 2022: (86) million yen (―%)
Profit per share Basic

Profit per share Diluted

Yen

Yen

(107.29)－(53.50)－Q3 of FY ending May 31,
2023
Q3 of FY ended May 31,
2022(2) Consolidated Financial Position
Total assets

Equity ratio

Million yen

Million yen%

88,66933,40431.6

84,80133,44833.4

Q3 of FY ending May 31,
2023
FY2022(Reference) Shareholders’ equity

Net assets

Q3 of FY ending May 31, 2023: 28,052 million yen

FY2022: 28,304 million yen

2. Dividend Information
Dividend per shareFirst quarter
Yen

Second quarter Third quarter End of the year
Yen

Yen

Yen

AnnualYen

FY2022
35.00
35.00
70.00
－
－
FY202335.00－－
FY2023 (Forecast)
20.00
55.00
(Note) Revision of the latest dividend forecast: Yes
For dividend forecast, please refer to “Notice on the Revisions to the Business Forecast and Dividend Forecast” which we haveannounced today.

3. Forecast of Consolidated Financial Results for FY2023 (June 1, 2022 to May 31, 2023)

Net sales
Million yen

Operating income%

Million yen(% change from the previous fiscal year)
Profit attributable toProfit per shareowners of parent
Basic

Ordinary income%

Million yen%

Million yen%

Yen

Full year
94,00015.0
1,100 893.9
1,300
36.8
200 (28.9)
31.55(Note) Revision of the latest forecasts of operational results: Yes
For the revisions to the business forecast, please refer to “Notice on the Revisions to the Business Forecast and Dividend Forecast”
which we have announced today.

*Notes(1) Major changes in significant consolidated subsidiaries during the period (changes in specified subsidiaries
accompanying change in the scope of consolidation): No(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements: No(3) Changes in accounting policies, financial estimates and restatements
(i)
(ii)
(iii)
(iv)

Changes in accounting policies due to revisions of accounting standards: No
Changes in accounting policies other than (i) above: No
Changes in financial estimates: No
Restatements of financial statements: No(4) Number of shares issued (common stock)(i)

Number of shares issued at the end of the period(including treasury stock)(ii)

Number of treasury shares at the end of the period(iii)

Average number of shares outstanding during theperiod (quarterly consolidated cumulative period)

Q3 of
FY2023Q3 of
FY2023Q3 of
FY2023

7,682,162 shares

FY2022

7,682,162 shares

1,338,421 shares

FY2022

1,350,807 shares

6,338,812 shares

Q3 of
FY2022

6,326,331 shares(Note) The summary of quarterly financial results is outside the scope of quarterly review by a certified public accountant
or an accounting firm.
(Note) Explanation on the appropriate use of forecasts and other special issues(Note on the forward-looking statements)
The forward-looking statements in this document concerning forecasts of performance, etc. are based on
currently available information, and contain uncertain factors. The actual performance may be significantly
different from the forecasts due to various factors.

Table of contents of attached document

1. Qualitative information for the third quarter of the fiscal year under review………………………………………P. 2(1) Explanation of business results ………………………………………………………………………………...P. 2(2) Explanation of financial position …………………………………………………………………………….P. 7(3) Explanation of future forecast information including forecast of consolidated business results …………….P. 7

2. Consolidated quarterly financial statements and major notes……………………………………………………P. 8(1) Consolidated quarterly balance sheet ………………………………………………………………………….P. 8(2) Consolidated quarterly statement of income and comprehensive income…………………………………….P. 10
Consolidated quarterly statement of income(The third quarter of FY2023)………………………………………………………………………………P. 10
Consolidated quarterly statements of comprehensive income(The third quarter of FY2023)……………………………………………………………………………P. 11(3) Major notes on consolidated quarterly financial statements …………………………………………………P. 12(Notes on assumption of going concern) …………………………………………………………….……P. 12(Notes on significant changes in shareholders’ equity) ……………………………………………………P. 12(Segment information) ………………………………………………………………………………………P. 12―1―1. Qualitative information for the third quarter of the fiscal year under review(1) Explanation of business results
During the first nine months of the consolidated fiscal year ending May 31, 2023 the Japanese economy
maintained a moderate recovery trend supported by a move toward the normalization of social and economic activities
for the new normal on the back of the easing of behavioral restrictions against COVID-19. On the other hand,prospects remain unpredictable with raw material prices and energy costs remaining at high levels and the short supply
of components continuing due to geopolitical risks such as the Ukraine crisis, and concerns over drastic fluctuations inforeign exchange rates arising from worldwide financial tightening together with economic downside risks.
In the interior industry, which relates to the Company’s business, the domestic new housing starts and the floorarea of nonresidential construction starts remained almost at the same level as in the previous fiscal year. Moreover,automobile production in the Japanese market was up 11.6% year on year. Both production and sales in overseas
markets increased and exceeded the results for the same period of the previous year.
The Group has been promoting its medium- to long-term management targets, “SUMINOE GROUP WAY 20222024-2027,” which is now in its second year.
In the Interior Fitting Segment, the Company focuses on increasing sales of environment-friendly and functional
products, such as ECOS®, eco-friendly carpet tiles under the horizontal recycling system. In 2022, the Company won
the FY2022 Resources Recirculation Technologies and Systems Award, conferred by the Director-General of theIndustrial Science and Technology Policy and Environment Bureau, Ministry of Economy, Trade and Industry, inrecognition of its social contribution through the reduction of waste realized through a recycling system of
construction materials. Furthermore, the Company is striving to expand the scope of its Space Design Business,
which involves designing an entire space, with the expectation of generating synergy among Group companies. We
will reinforce our competitive edge by flexibly satisfying customer needs in the entire Interior Fitting Segment whileworking to raise awareness of the SUMINOE brand.
In the Automotive Textiles and Traffic Facilities Segment, we focus on technology development and increasingorders received for non-textile products such as artificial leather in the automotive textiles business, while also
striving to provide high value-added products. In addition, due to soaring raw material prices, we are continuing towork on cost reductions by optimizing raw material procurement and production bases for global models. In the
traffic facilities business, the Company is striving to manufacture and distribute high-performance fabric materials
while making efforts to increase sales of seat cushion materials and safety products for railways and buses. We areprepared to quickly respond to the recovery of demand on the back of the increase in number of passengers of railway
and bus operators.
In the Functional Materials Segment, the Company completed in the previous fiscal year the consolidation ofplants in China and Vietnam, which were the production bases for fabric-coated heating products. Starting from thecurrent fiscal year, the plant in Vietnam has become the main plant for the production of fabric-coated heatingproducts. By diversifying regional risks and building an optimal supply system, we will promote responses to theuncertain external environment. Furthermore, by strengthening collaboration with the Technology and Production
Headquarters as the development divisions, the Company works to increase the value of its businesses and products
and enhance its development sales capability, focusing on securing order receipts in existing businesses andpromoting the development and sales of new functional processed products that meet market needs, as well as theapplication of smart textile technology.
We will celebrate the 140th anniversary of the Company’s foundation in 2023. Taking this opportunity, we areworking on the Company’s branding in pursuit of improvement in corporate brand value. We will also discuss how
we should contribute to society through not only profits but also our business, and we rebuild the SUMINOEGROUP’s unique manufacturing toward the future.

―2―

Under these circumstances, our consolidated quarterly results for the third quarter of this fiscal year are as
follows.
Net sales increased to 68,837 million yen, a year-on-yearincrease of 15.2%, and operating income was 78 million yen(operating loss of 311 million yen in the same period of theprevious fiscal year). These results were attributable to anincrease in domestic automobile production by Japanese car
manufacturers in addition to the favorable impact of foreignexchange rates in the Automotive Textiles and Traffic Facilities
Segment, and also a large order received for commercial carpetsby the Interior Fittings Segment. Ordinary income fell by
24.1% year on year to 360 million yen, due to the absence ofsubsidy income received in the same period of the previous
fiscal year after the finalization of loan repayment waivers
under “Paycheck Protection Program” in the United States.
Furthermore, extraordinary loss includes an impairment loss onproperty, plant and equipment due to a transfer of non-current
assets. As a result, loss attributable to owners of parent was 680
million yen (loss attributable to owners of parent of 338 million
yen in the same period of the previous fiscal year).

The performance by segment is as described below.
Net sales
Segments

Interior Fittings
Automotive Textiles andTraffic Facilities
Functional Materials
Other
Total
Adjustment
Consolidated

Amount(Million yen)Segment income (loss)
YY Change(%)

Amount(Million yen)

YY Change(%)

26,019

＋12.9

401

＋2.1

39,530

＋18.2

1,038

＋53.6

3,003

(1.9)

146

－

283

＋24.5

45

＋53.2

68,837

＋15.2

1,632

＋55.7

－

－

(1,554)－

68,837

＋15.2

78

－

―3―

(Interior Fittings Segment)
Net sales increased by 12.9% year on year to 26,019
million yen, and segment income was increased by 2.1%
year on year to 401 million yen, reflecting a large order
received for commercial carpets, steady growth in curtain
sales and partly due to the effect of price revisions for wallcoverings.
In commercial carpets, ECOS®, eco-friendly carpet
tiles under the horizontal recycling system, were adopted ina large-sized office building property. Consequently, net
sales of commercial carpets as a whole grew by 16.7% year
on year.
Sales of household carpets were down 13.8% year
on year due to a significant reactionary fall in demand fromthe elevated levels of stay-at-home demand during the
COVID-19 pandemic.
In curtains, sales of mode S Curtain Vol. 10 for
general households, which was launched in July 2022,
showed steady growth and U Life Curtain Vol. 10 also
recorded strong sales. As a result, net sales of curtains as awhole were up 3.9% year on year.
Net sales of wall coverings increased by 9.8% year on
year, reflecting price revisions to cover soaring raw material
prices and robust sales of a catalogue of fusuma paper,
Keisho Vol. 32, which was launched in February 2023.
In the Space Design Business, net sales in CPO Co.,
Ltd. and PRETERIOR-TEXTILE Inc., which became aconsolidated subsidiary in January 2022, contributed to theresults.

―4―

(Automotive Textiles and Traffic Facilities Segment)
Together with robust sales of domestic automotiverelated sales, sales of overseas automotive-related
products also increased, mainly due to the favorable
impact of foreign exchange rates. As a result, net sales in
the Automotive Textiles and Traffic Facilities Segment as
a whole grew by 18.2% year on year to 39,530 million
yen. Segment income increased by 53.6% year on year to
1,038 million yen, reflecting strong growth in Southeast
Asia and improved profit in North and Central America
despite sharp increases in raw material prices, energy
costs and distribution costs in addition to a decrease insales at our business bases in China.
In the automotive textiles business, domestic
production increased due to the easing of the shortage ofsemiconductors and other components. As a result,domestic sales increased by 9.5% year on year. Sales in
the overseas market were negatively affected by thechange in the status of behavioral restrictions against
COVID-19 at our business sites in China and also by the
production of new cars for which orders were received.
Meanwhile, both the effect of foreign exchange androbust sales of automobiles in Southeast Asia due torecovery from the COVID-19 pandemic contributed to anincrease in net sales outside Japan by 25.0% year on year.
In the traffic facilities business, the number ofrailway and bus passengers has a tendency to increase on
the back of the easing of behavior restrictions against
COVID-19. Sales of products for railway vehicles
increased over the year on year because refurbishingworks have shown a recovery trend. Moreover, demandfor our interior products for buses was on a recovery
trend. As a result, net sales in the traffic facilities businessas a whole exceeded the results for the same period of theprevious fiscal year.

―5―

(Functional Materials Segment)
Sales of fabric-coated heating products such as
electric carpets, one of our core products, remained
almost at the same level as in the same period of theprevious fiscal year, reflecting the effect of price revisions
to cover higher raw material prices despite a decrease in
new orders for delivery in 2022. Orders received for floor
materials for bathrooms grew steadily, and filters forrefrigerators among deodorizing and filter-related
products also showed brisk sales on the back of neworders received. On the other hand, deodorizing filters for
air cleaners experienced sluggish sales due to a negative
repercussion of demand during the COVID-19 pandemic.
As a consequence, net sales in the Functional Materials
Segment as a whole decreased by 1.9% year on year to
3,003 million yen. As to profits, segment income was 146
million yen (segment loss of 50 million yen in the same
period of the previous year) reflecting the completion of
the consolidation of plants in China and Vietnam in theprevious fiscal year.

―6―(2) Explanation of financial position
Total assets at the end of the third consolidated accounting quarter under review amounted to 88,669 million
yen, an increase of 3,868 million yen from the end of the previous consolidated fiscal year, due to an increase in tradereceivables.
Liabilities grew to 55,265 million yen, an increase of 3,913 million yen, due to an increase in trade payable andloans payable.
Net assets shrank to 33,404 million yen, a decrease of 44 million yen, due to a decrease in retained earnings
despite an increase in valuation difference on available-for-sale securities.

(3) Explanation of future forecast information including forecast of consolidated business results
Based on the business performance as of today, we have revised the full-year forecast announced on July 15, 2022
for the consolidated fiscal year ending May 2023. For details, please refer to “Notice on the Revisions to the Business
Forecast and Dividend Forecast” which we have announced today.

―7―2. Consolidated quarterly financial statements and major notes(1) Consolidated quarterly balance sheet(Unit: million yen)
FY2022(As of May 31, 2022)

Q3 of FY2023(As of February 28, 2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims operating
Merchandise and finished goods

8,150

6,375

13,816

15,673

6,171

7,532

10,187

10,223Work in process
Raw materials and supplies

1,828
3,605

2,127
4,543

Other
Allowance for doubtful accounts

3,017
(27)

2,899
(27)

Total current assets

46,74949,348Land
Other, net

16,13813,415

16,635
13,331

Total property, plant and equipment

Non-current assets
Property, plant and equipment

29,55329,966

Intangible assets
Investments and other assets

1,834

1,790

Investment securities
Deferred tax assets

4,304
1,416

5,104
1,397

Other
Allowance for doubtful accounts

1,159
(216)

1,214
(152)

Total investments and other assets
Total non-current assets
Total assets

―8―

6,663

7,564

38,051

39,32184,801

88,669(Unit: million yen)
FY2022(As of May 31, 2022)

Q3 of FY2023(As of February 28, 2023)

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

12,0634,700

11,509
6,887

Short-term loans payable
Income taxes payable

12,399507

13,865409

Provision for demolition costs
Other

33
5,342

－
3,999

Total current liabilities

35,04636,672

1,000
5,600

1,000
7,914

308
137

310
134

Net defined benefit liability
Other

4,197
5,062

4,150
5,083

Total non-current liabilities

16,306

18,59351,35255,265

Shareholders’ equity
Capital stock

9,554

9,554

Capital surplus
Retained earnings

2,626
11,4802,611
10,356

Treasury shares(3,949)(3,913)

Total shareholders’ equity

19,711

18,608

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

545

1,206

58

18

Revaluation reserve for land
Foreign currency translation adjustment

6,922
1,170

6,922
1,345

Remeasurements of defined benefit plans

(104)

(49)

Total accumulated other comprehensive income

Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefit

Total liabilities
Net assets

8,593

9,444

Non-controlling interests

5,144

5,351

Total net assets

33,44833,40484,801

88,669Total liabilities and net assets―9―(2) Consolidated quarterly statement of income and comprehensive income
Consolidated quarterly statement of income(The third quarter of FY2023)

Net sales
Cost of sales

Q3 of FY2022(June 1, 2021 to
February 28, 2022)
59,75947,556(Unit: million yen)Q3 of FY2023(June 1, 2022 toFebruary 28, 2023)
68,837
55,109Gross profit

12,203

13,727

Selling, general and administrative expenses

12,514

13,648Operating income (loss)

(311)

78

Non-operating income
Interest income

19

22

91

80

Dividend income
Share of income of entities accounted for using equity
methodForeign exchange gains
Real estate rent

17

21

12
200

183
202

Dividend income of insurance
Other

514
137

－
144

Total non-operating income

993

655

Non-operating expenses
Interest expenses

155

297

Rent expenses on real estates
Other

23
27

31
44

Total non-operating expenses

207

373

474

360

Gain on sales of non-current assets
Gain on sales of investment securities

3
93

33
44

Total extraordinary income

9778

Ordinary income
Extraordinary income

Extraordinary loss
Loss on sales and retirement of non-current assets

75

15

Impairment loss
Loss on valuation of investment securities

－
0

183

Total extraordinary loss

75

199

Profit (loss) before income taxes

496

239

Income taxes – current

459

645

Income taxes – deferred

70

(28)

Total income taxes

530

616

Profit (loss)

(33)

(377)

Profit attributable to non-controlling interests

305

302

Profit (loss) attributable to owners of parent

(338)

(680)

―10―

－

Consolidated quarterly statements of comprehensive income(The third quarter of FY2023)(33)(Unit: million yen)Q3 of FY2023(June 1, 2022 toFebruary 28, 2023)(377)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(331)
0

661
(42)

Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

254
22

180
55

0

2

(53)

856

Comprehensive income

(86)

479

Comprehensive income attributable to:
Owners of parent

(438)

170

351

308

Q3 of FY2022(June 1, 2021 to
February 28, 2022)
Profit (loss)
Other comprehensive income

Non-controlling interests―11―(3) Major notes on consolidated quarterly financial statements(Notes on assumption of going concern)
Not applicable.

(Notes on significant changes in shareholders’ equity)
Not applicable.

(Segment information)I

Q3 of FY2022 (June 1, 2021 to February 28, 2022)
1. Information on net sales and income or loss by reportable segment
Reportable Segments
Interior
Fittings
Net sales
Net sales to outside
customers
Inter-segment sales andtransfers

Automotive
Textiles and Functional
Traffic
Materials
Facilities

Total

Other
(Note 1)

Total

(Unit: million yen)
Figures in
consolidated
Adjustment quarterly(Note 2) statement ofincome(Note 3)23,03633,432

3,062

59,531

227

59,759－59,759

553

26

0

580

108

689

(689)

－

Total

23,59033,458

3,063

60,112336

60,448(689)

59,759Segment income (loss)

393

676

(50)

1,019

29

1,049

(1,360)(311)(Note) 1. Other represents businesses that are not included in reportable segments, such as the physical property and performance
inspection businesses.
2. Adjustment of (1,360) million yen in segment income (loss) includes eliminations among segments of 21 million yen andcorporate expenses unallocated to relevant reportable segments of (1,381) million yen.
Unallocated corporate expenses mainly consist of expenses for the Administrative division and R&D division that do notbelong to any reportable segment.
3. Segment income (loss) is adjusted with operating loss in consolidated quarterly statement of income.

2. Information on impairment loss on non-current assets or goodwill, etc. by reportable segment
Omitted as it is not significant.

II

Q3 of FY2023 (June 1, 2022 to February 28, 2023)
1. Information on net sales and income or loss by reportable segment
Reportable Segments
Interior
Fittings

Net sales
Net sales to outside
customers
Inter-segment sales andtransfers
Total
Segment income

Automotive
Textiles and Functional
Traffic
Materials
Facilities

Total

Other
(Note 1)

Total

(Unit: million yen)
Figures in
consolidated
Adjustment quarterly(Note 2) statement ofincome(Note 3)26,01939,5303,003

68,553283

68,837－

68,837

503

26

0

530

105

636

(636)

－

26,52239,557

3,004

69,084389

69,473(636)

68,837

401

1,038

146

1,586

45

1,632

(1,554)78(Note) 1. Other represents businesses that are not included in reportable segments, such as the physical property and performance
inspection businesses.
2. Adjustment of (1,554) million yen in segment income includes eliminations among segments of 47 million yen andcorporate expenses unallocated to relevant reportable segments of (1,601) million yen.
Unallocated corporate expenses mainly consist of expenses for the Administrative division and R&D division that do notbelong to any reportable segment.

―12―

3. Segment income is adjusted with operating income in consolidated quarterly statement of income.

2. Information on impairment loss on non-current assets or goodwill, etc. by reportable segment
Impairment loss on non-current assets has been recorded in the Interior Fittings Segment and the Automotive Textiles andTraffic Facilities Segment. The amount of the impairment loss recorded for the nine months ended February 28, 2023 was 180
million yen in the Interior Fittings Segment and 3 million yen in the Automotive Textiles and Traffic Facilities Segment.

―13―