February 9, 2024

Consolidated Earnings Report for the Fiscal Year Ended December 31, 2023（Japanese GAAP）
These financial statements have been prepared for reference in accordance with accounting principles and practices
generally accepted in Japan.
Company name: Star Micronics Co., Ltd.
Stock listing: Tokyo Stock Exchange
Code: 7718
URL https://www.star-m.jp
Representative Director: Mamoru Sato, President and CEO
Inquiries: Seigo Sato, Senior Executive Officer, General Manager, Corporate Headquarters
TEL: 054 -263-1111
Scheduled annual general meeting of shareholders: March 28, 2024 Scheduled payment of dividends: March 12, 2024
Scheduled release of FY2023 business report: March 28, 2024
Preparation of supplementary explanatory materials for earnings report: Yes
Earnings presentation: Yes(Figures less than one million are rounded down)

1. Consolidated Results for the Fiscal Year Ended December 31, 2023 (From January 1, 2023 to December 31, 2023）(Percentages represent changes over the previous fiscal year)(1) Consolidated Operating Results
Net Income
Net Sales
Operating Income
Ordinary Income
Attributable to
Owners of Parent
Year Ended December 31, 2023
Year Ended December 31, 2022(¥ million)%(¥ million)%(¥ million)%(¥ million)%

78,19687,368(10.5)
35.7

10,35013,925(25.7)
87.8

10,96014,199(22.8)
82.2

8,175
10,298(20.6)
79.4(Note) Comprehensive income
Year Ended December 31, 2023 ¥11,755 million [(23.5)%] Year Ended December 31 2022 ¥15,374 million [74.0%]
Net Income
per Share

Diluted Net Income Ratio of Net Income to
Ratio of Ordinary
Shareholders' Equity Income to Total Assets
per Share

(¥)

(¥)

%

218.89218.17
10.7
Year Ended December 31, 2022
271.14270.01
15.4
Reference: Equity in earnings of affiliated companies
Year Ended December 31, 2023 ¥(2) million
Year Ended December 31, 2022
Year Ended December 31, 2023

Ratio of Operating
Income to Net Sales

%

%

11.4
15.6

13.2
15.9

¥0 million(2) Consolidated Financial Position
Total Assets
As of December 31, 2023
As of December 31, 2022

Net Assets

Net Assets per
Share

Equity Ratio(¥ million)(¥ million)%(¥)

93,39899,53880,34673,08885.6
73.0

2,178.54
1,928.77

Reference: Shareholders' Equity
As of December 31, 2023

¥79,964 million

As of December 31, 2022

¥72,628 million(3) Consolidated Cash Flows
Operating
Activities

Investing
Activities

Financing
Activities

Year-end Cash andCash Equivalents(¥ million)(¥ million)(¥ million)(¥ million)

7,126
7,523

(2,038)(2,633)(5,054)(4,624)31,43429,564

Dividends per Share
2Q
3Q
YearEnd
End
End

Full
Year

Year Ended December 31, 2023
Year Ended December 31, 2022

2. Dividends
1Q
End
(¥)

FY 2022
FY 2023
FY 2024 (Projected)

－
－
－

(¥)

30.00
30.00
30.00

(¥)

－
－
－

Dividends
Total(Total)Dividend
Payout Ratio

Dividend on
Equity Ratio(Consolidated)(Consolidated)

(¥)

(¥)

(¥ million)

%

%

40.00
30.00
30.00

70.00
60.00
60.00

2,637
2,217

25.8
27.4
43.2

4.0
2.9

3. Consolidated Outlook for the Fiscal Year Ending December 31, 2024（From January 1, 2024 to December 31, 2024)(Percentages represent changes over the previous fiscal year)

Net Sales

Operating Income

Ordinary Income

Net Income
Attributable to
Owners of Parent

Net Income
per Share(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥)

27,44065,800(36.1)(15.9)

1,900
7,000

(74.3)(32.4)

2,000
7,200

(73.7)(34.3)

1,300
5,100

(75.2)(37.6)

35.42
138.94

Interim term
Full Year*Note(1) Significant changes in subsidiaries during the period under review (changes in certain specified subsidiaries
resulting in revised scope of consolidation): None
New company: － (Company name), Excluded company: － (Company name)(2) Changes in accounting policies, estimates and restatement or corrections(i) Changes associated with revised accounting standards: Yes(ii) Changes other than those in (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatement: None
(3) Number of shares issued and outstanding (Common stock)(i) Number of shares issued and outstanding at period-end (Including treasury stock)
As of December 31, 2023
41,921,434 shares As of December 31, 2022
42,465,134 shares(ii) Number of treasury stock at period-end
As of December 31, 2023
5,215,874 shares As of December 31, 2022
4,809,548 shares(iii) Average number of outstanding shares
As of December 31, 2023
37,349,647 shares As of December 31, 2022
37,982,790 shares(Reference) Overview of Non-consolidated Financial Results(Non-consolidated Results for the Fiscal Year Ended December 31, 2023 (From January 1, 2023 to December 31, 2023）(1) Non-consolidated Operating Results(Percentages represent changes over the previous fiscal year)

Net SalesYear Ended December 31, 2023
Year Ended December 31, 2022

Operating Income

Ordinary Income%(¥ million)%(¥ million)%(38.0)
304.4

9,733
8,563

13.7
86.8

8,309
6,485

28.1
50.4

(¥ million)%(¥ million)

41,23548,375(14.8)
41.9

4,528
7,303

Net Income
per Share
Year Ended December 31, 2023
Year Ended December 31, 2022

Net Income

Diluted Net Income
per Share(¥)(¥)

222.48170.74221.75170.02(2) Non-consolidated Financial Position
Total Assets
As of December 31, 2023
As of December 31, 2022

Net Assets

Net Assets per
Share

Equity Ratio(¥ million)(¥ million)%(¥)

57,20264,46749,04845,17185.3
69.5

1,328.79
1,190.25

Reference: Shareholders' Equity
As of December 31, 2023

¥48,774 million

As of December 31, 2022

¥44,819 million* This earnings report is not included in the scope of the audit or the certified public accountant.
* Regarding the appropriate use of earnings projections and other noteworthy matters
The above projections are based on information available at the time of release of this report and certain assumptions
the Company considers reasonable. The Company does not promise that these projections will be achieved. Actual
results may differ materially from projections due to a variety of factors. For information regarding the assumptions andother matters related to earnings projections in this report, refer to “(4) Future Outlook” under “1. Overview ofOperating Results and Financial Position” on page 3.

○(Attached Documents) Index
1. Overview of Operationg Results and Financial Position .................................................................................

2(1) Overview of Operating Results for the Year Ended December 31, 2023 ..................................................

2(2) Overview of Financial Position for the Year Ended December 31, 2023 ..................................................

2(3) Overview of Cash Flows for the Year Ended December 31, 2023 .............................................................

3(4) Future Outlook ..............................................................................................................................................

3(5) Basic Dividend Policy and Dividends for This Fiscal Year and the Next Fiscal Year ..............................

4

2. Basic Policy regarding the Selection of Accounting Standards .......................................................................

4

3. Consolidated Financial Statements and Major Notes ......................................................................................

5(1) Consolidated Balance Sheet ..........................................................................................................................

5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ................

7(2) Consolidated Statement of Income ..............................................................................................................

7(2) Consolidated Statement of Comprehensive Income ...................................................................................

8(3) Consolidated Statement of Changes in Equity ...........................................................................................

9(4) Consolidated Statement of Cash Flows ......................................................................................................

11(5) Notes to Consolidated Financial Statements .............................................................................................

12(Note on Going Concern Assumption) ........................................................................................................

12(Changes in Accounting Policies) .................................................................................................................

12(Segment Information) .................................................................................................................................

13(Per Share Information) ...............................................................................................................................

15(Signisficant Subsequent Events) .................................................................................................................

161

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results for the Year Ended December 31, 2023
Looking at fiscal 2023, the fiscal year ended December 31, 2023, the outlook for the economy remained uncertain
throughout the period under review. Despite an overall modest recovery amid signs of a lull in the surge in resource
prices and prolonged inflation, this uncertainty largely reflects growing concerns surrounding the threat of an
economic recession owing to the prolonged upswing in interest rates in the U.S. and Europe, deteriorating market
conditions and slowing investment in China, and fluctuations in foreign currency exchange rates.
In each of the major markets in which the Star Micronics Group operates, demand for POS printers was generally
weak. In addition, demand for the Group’s mainstay machine tools in overseas markets, which had previously
remained high, stalled with little or no forward momentum. Exacerbating these difficult trends, demand in Japan also
failed to recover.
Under these circumstances, the Star Micronics Group reported sales of ¥78,196 million for the he fiscal year underreview, down 10.5% compared with the previous fiscal year. Despite the overall impact of depreciation in the valueof the yen, this was mainly due to a decline in sales of the Company’s mainstay machine tools. From a profit
perspective, operating income declined 25.7%, to ¥10,350 million. Ordinary income decreased 22.8%, to ¥10,960
million. Net income attributable to owners of parent fell 20.6%, to ¥8,175 million.
Meanwhile, Smart Solution Technology, Inc. (SST) was included in the Company’s scope of consolidation and theSpecial Products Segment effective from the first half of the fiscal year under review.
Performance by segment was as follows:(Special Products)
Sales of POS printers declined. This largely reflected the downturn in mPOS demand, which had remained robust.
Looking at trends by geographic region, sales in the U.S. market decreased substantially owing to the downturn in
mPOS demand. Sales in the European market were essentially unchanged from the previous fiscal year due to theimpact of such factors as the yen’s depreciation. Meanwhile, despite weak market conditions throughout thedomestic market, sales in Japan increased significantly compared with the previous fiscal year owing to theinclusion of SST in the Company’s scope of consolidation.
Accounting for these factors, sales decreased 10.3% compared with the previous fiscal year, to ¥16,111 million.
Operating income declined substantially year on year, to ¥1,953 million, down 48.0%.
(Machine Tools)
Sales of CNC automatic lathes decreased. Notwithstanding progress from the beginning of the fiscal year underreview to reduce the order backlog from the previous fiscal year mainly in the U.S. and European markets, thisdecrease was mainly due to delays in market recovery in China. By geographic region, sales in the U.S. declined
overall owing to sluggish market condition, which largely reflected such factors as the prolonged upswing in interest
rates. In addition, sales in the European market increased significantly centered mainly on automotive-related
products. Meanwhile, sales decreased substantially in the Asian market. This was mainly attributable to weak salesof automotive- and telecommunications-related products on the back of the continued cautious approach toward
capital investment in China over the latter half of the previous fiscal year and other factors. Sales declined
significantly in the domestic market, mainly due to the continued lackluster performance of the automotive sector.
Accounting for each of the aforementioned factors, sales and income declined year on year. In specific terms, sales
decreased 10.6% compared with the previous fiscal year, to ¥62,084 million. Operating income declined 15.5%, to¥10,349 million.
(2) Overview of Financial Position for the Year Ended December 31, 2023
Total assets as of the end of the fiscal year under review stood at ¥93,398 million, a decrease of ¥6,140 million
compared with the end of the previous fiscal year. This largely reflected the decline in trade notes and accounts
receivable as well as inventories. Total liabilities came to ¥13,052 million, a decline of ¥13,398 million comparedwith the previous fiscal year-end. This was mainly due to the downturn in trade payables and income taxes payable.
Total net assets increased ¥7,258 million year on year, to ¥80,346 million. Despite such factors as dividends paid andthe purchase and retirement of treasury stock, this was in large part due to the increase in retained earnings andforeign currency translation adjustments.
(3) Overview of Cash Flows for the Year Ended December 31, 2023
Cash and cash equivalents as of the end of the fiscal year under review came to ¥31,434 million, an increase of¥1,870 million compared with the end of the previous fiscal year. This was the result of net cash provided byoperating activities of ¥7,126 million, and partially offset by net cash used in investing and financing activities of¥2,038 million and ¥5,054 million, respectively, and the addition of a translation adjustment on cash and cash
equivalents.

2

(Operating Activities)
Net cash provided by operating activities totaled ¥7,126 million (¥7,523 million for the previous fiscal year). While
the principal cash outflows included the decrease in trade payables and income taxes paid, the major cash inflows
included income before income taxes as well as decreases in inventories and trade notes and accounts receivable.
(Investing Activities)
Net cash used in investing activities came to ¥2,038 million (¥2,633 million for the previous fiscal year). The major
cash outflow was for purchases of property, plant and equipment.
(Financing Activities)
Net cash used in financing activities totaled ¥5,054 million (¥4,624 million for the previous fiscal year) owing todividends paid and payments for the purchase of treasury stock.
(Reference) Trends in Cash Flow Related Indices
FY12
FY12
FY12
FY12
2019
2020
2021
2022
Equity Ratio (%)
65.2
68.2
74.1
73.0
Market Value Basis Equity Ratio (%)
72.7
81.5
72.8
61.2
Debt / Cash Flow Ratio (Years)
0.6
0.4
0.1
0.2
Interest Coverage Ratio (Times)
316.6
351.8
512.4
271.8
Equity Ratio: Shareholders Equity / Total Assets
Market Value Basis Equity Ratio: Market Capitalization / Total Assets
Debt / Cash Flow Ratio: Debt / Cash Flows
Interest Coverage Ratio: Cash Flows / Interest Payments

FY12
2023
85.6
67.6
0.2
233.9

(Note)
1 Calculation based on the consolidated basis financial figures.
2 Market capitalization is calculated by multiplying the closing price as of the end of the fiscal year by the total
number of shares issued and outstanding (excluding treasury stock).
3 “Cash flow” uses the net cash provided by operating activities.
4 “Interest-bearing liabilities” comprises all the liabilities recorded on the consolidated balance sheet for which interest
must be paid.
(4) Future Outlook
Looking ahead, conditions throughout the global economy are expected to remain uncertain. In addition to ongoing
concerns surrounding such geopolitical risks as the prolonged crisis in Ukraine and military conflicts in the Middle
East, this is due to a variety of factors, including anxieties toward a slowdown in economic activities owing to theimpacts of continued inflation and the tightening of global monetary policy.
Under these circumstances, and in the context of the Company’s consolidated business performance for the coming
fiscal year, sales in the mainstay Machine Tools Segment are forecast to decline. Despite expectations of a recovery
mainly for automotive-related products in Japan and an anticipated gradual positive turnaround overseas toward thelatter half of the coming fiscal year, this forecast decline is amid sluggish capital investment demand across all
regions since the previous fiscal year. In the Special Products Segment, sales are projected to decline. While sales
are expected to increase due to new products, this forecast downturn largely reflects the overall weak nature ofmarket conditions especially in the U.S. market.
Taking into account the aforementioned factors, our outlook for consolidated results in the coming fiscal year is adownturn. In specific terms, we expect a decrease in net sales of 15.9% compared with the fiscal year under review,to ¥65,800 million. On a year-on-year basis, operating income is forecast to decline 32.4%, to ¥7,000 million,
ordinary income to fall 34.3%, to ¥7,200 million, and net income attributable to owners of parent to also drop 37.6%,
to ¥5,100 million in the fiscal year ending December 31, 2024.
Forecasts are based on the assumptions that the yen/US dollar exchange rate will be JPY135 and the yen/Euro
exchange rate will be JPY150.

3(5) Basic Dividend Policy and Dividends for This Fiscal Year and the Next Fiscal Year
Star Micronics positions the return and distribution of profits to shareholders as an important management priority.
With this in mind, the Company has put in place the basic policy of continuing to pay a progressive and stableannual dividend of at least ¥60 per share and committing to achieve a total payout ratio of at least 50%, including
the repurchase of its own shares.
Based on this policy, Star Micronics plans to pay a period-end dividend of ¥30 per share. Together with the interim
dividend of ¥30 per share, the Company is looking to pay an annual dividend of ¥60 per share. Excluding theprevious period’s special dividend paid, this annual dividend is unchanged from the previous fiscal year.
As far as the dividend for the next fiscal year is concerned, and once again based on the aforementioned policy, Star
Micronics plans to pay an interim and period-end dividend of ¥30 per share for an annual dividend of ¥60 per share.
This is unchanged from the fiscal year under review.
Turning to the Company’s internal reserves, Star Micronics is committed to enhancing its corporate value while
increasing shareholders’ profits. At the same time, the Company will look to engage in a variety of activities
including investment in future growth fields in a bid to ensure its sustainable growth.
2. Basic Policy regarding the Selection of Accounting Standards
Taking into consideration comparability of consolidated financial statements between periods and between
companies, the policy of the Star Micronics Group is to prepare consolidated financial statements according toJapanese accounting standards for the foreseeable future.
We will address the application of International Financial Reporting Standards as appropriate, taking into accountconditions in Japan and other countries.

43. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(Unit: Thousands of yen)
列1

As of December 31, 2022

AssetsCurrent assets
Cash and deposits
Trade notes and accounts receivable
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit asset
Other
Total investments and other assets
Total Non-current assets
Total assets

5

As of December 31, 2023

30,069,164
22,749,935
34,27814,361,778
6,578,912
4,146,484
2,264,776(132,608)
80,072,720

29,721,934
18,594,767－
14,542,598
4,276,374
2,943,701
3,475,268(197,701)
73,356,942

16,081,361(8,696,371)
7,384,989
12,911,779(9,579,550)
3,332,228
9,066,974(7,716,743)
1,350,231
2,008,241
121,319(60,124)
61,195215,439
1,901,468(557,338)
1,344,130
15,696,456

16,884,132(9,623,038)
7,261,093
12,082,203(8,738,236)
3,343,966
9,529,120(8,174,599)
1,354,520
2,488,800
148,892(88,219)
60,672
144,0022,189,887(939,997)
1,249,890
15,902,946

445,331445,331

793,994
793,994

1,131,830
425,428
1,299,938
466,926
3,324,123
19,465,910
99,538,631

662,038
497,702
1,655,209
529,711
3,344,661
20,041,602
93,398,545

(Unit: Thousands of yen)
As of December 31, 2022

列1Liabilities
Current liabilities
Trade notes and accounts payable
Electronically recorded obligations-operating
Current portion of long-term bank loans
Lease obligations
Income taxes payable
Contract liabilities
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term bank loans
Lease obligations
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Stock acquisition rights
Noncontrolling interests
Total net assets
Total liabilities and net assets

6

As of December 31, 2023

8,369,767
4,618,781－
26,484
2,417,312
965,9141,550,218
7,155,653
25,104,131

3,345,274
326,753
28,404
29,637
313,660
331,598
896,288
6,136,430
11,408,047－
41,207
100,988
1,204,176
1,346,371
26,450,503

8,315
37,827
116,575
1,481,359
1,644,076
13,052,124

12,721,939
11,710,490
49,849,455(6,608,499)
67,673,385

12,721,939
10,948,546
55,401,296(7,637,848)
71,433,933

107,591
3,366,425
1,481,466
4,955,484
351,712
107,545
73,088,128
99,538,631

167,186
7,058,883
1,304,441
8,530,511
274,809107,166
80,346,421
93,398,545

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Unit: Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Foreign exchange gains
Rent income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Loss on valuation of investment securities
Foreign exchange loss-net
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on revision of retirement benefit plan
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income attributable to noncontrolling interests
Net income attributable to owners of the parent

7

As of December 31, 2022
(From January 1, 2022 to
December 31, 2022)

As of December 31, 2023
(From January 1, 2023 to
December 31, 2023)

87,368,377
53,526,275
33,842,101
19,916,997
13,925,104

78,196,383
47,472,288
30,724,094
20,373,214
10,350,879

166,100－
41,963245,734
453,798

339,31222,83841,987
254,503
658,642

32,00552,72076,186
18,778
179,690
14,199,212

30,310－－18,73349,043
10,960,478

32,655－32,655

15,244203,002
218,246

20,312
20,312
14,211,555
3,892,830(69,806)
3,823,023
10,388,532
89,90910,298,622

77,80377,803
11,100,921
2,693,339
234,708
2,928,047
8,172,873(2,618)8,175,492

(Consolidated Statement of Comprehensive Income)(Unit: Thousands of yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(Total comprehensive income attributable to:)Owners of parent
Noncontrolling interests

8

As of December 31, 2022
(From January 1, 2022 to
December 31, 2022)

As of December 31, 2023
(From January 1, 2023 to
December 31, 2023)

10,388,532

8,172,873

23,185
3,892,903
1,004,629

59,594
3,690,180(177,025)

65,022

10,362

4,985,740
15,374,273

3,583,111
11,755,985

15,250,184
124,088

11,750,519
5,465

(3) Consolidated Statement of Changes in Equity
Fiscal year ended December 31, 2022 (From January 1, 2022 to December 31, 2022)(Unit：Thousands of yen)
Shareholders’equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

12,721,939

Retained earnings

13,854,202

Cumulative effect ofaccounting change
Restated balance

41,814,173

Total
Shareholders’equity

Treasury stock(7,066,934)(10,329)
12,721,939

13,854,202

41,803,843

61,323,380(10,329)(7,066,934)

61,313,050

Changes of items during
periodCash dividends(2,253,010)(2,253,010)

Net income attributable toowners of parent

10,298,622

10,298,622(1,958,342)(1,958,342)

8,648

205,436

214,085(2,211,341)

2,211,341－

Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Purchase of shares of
consolidated subsidiaries

60,03960,039

Sales of shares of
consolidated subsidiaries(1,059)(1,059)Net changes of items otherthan shareholders' equity－(2,143,712)

8,045,611

458,435

6,360,335

12,721,939

11,710,490

49,849,455(6,608,499)

67,673,385

Net change in the year
Balance at end of current
periodAccumulated other comprehensive income
Valuationdifference on
available-for-sal
e securities
Balance at beginning ofcurrent period

84,406

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeStock
Acquisitionrights

Noncontrollinginterests

Total
net assets

476,837(269,210)

420,462

253,566

61,728,198(830,454)

Cumulative effect ofaccounting change
Restated balance(10,329)
84,406(830,454)

476,837(269,210)

420,462

253,566

61,717,868

Changes of items during
periodCash dividends(2,253,010)

Net income attributable toowners of parent

10,298,622

Purchase of treasury stock(1,958,342)

Disposal of treasury stock

214,085－

Retirement of treasury stock
Purchase of shares of
consolidated subsidiaries

60,039

Sales of shares of
consolidated subsidiaries(1,059)Net changes of items otherthan shareholders' equity

23,185

4,196,879

1,004,629

5,224,694(68,749)(146,020)

5,009,924

Net change in the year

23,185

4,196,879

1,004,629

5,224,694(68,749)(146,020)

11,370,259

Balance at end of current
period107,591

3,366,425

1,481,466

4,955,484

351,712

107,545

73,088,128

9

Fiscal year ended December 31, 2023 (From January 1, 2023 to December 31, 2023)(Unit：Thousands of yen)
Shareholders’equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

12,721,939

Retained earnings

11,710,490

49,849,455

Total
Shareholders’equity

Treasury stock(6,608,499)

67,673,385

Changes of items during
periodCash dividends
Net income attributable toowners of parent(2,623,651)(2,623,651)

8,175,492

8,175,492

Purchase of treasury stock(2,000,670)(2,000,670)

Disposal of treasury stock

11,197

198,179

209,377

Retirement of treasury stock(773,141)

773,141－

Net changes of items otherthan shareholders' equity－(761,943)

5,551,841(1,029,349)

3,760,547

12,721,939

10,948,546

55,401,296(7,637,848)

71,433,933

Net change in the year
Balance at end of current
periodAccumulated other comprehensive income
Valuationdifference on
available-for-sal
e securities
Balance at beginning ofcurrent period

107,591

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeStock
Acquisitionrights

Noncontrollinginterests

Total
net assets

1,481,466

4,955,484

351,712

107,545

73,088,128

3,366,425

Changes of items during
period(2,623,651)

Cash dividends
Net income attributable toowners of parent

8,175,492

Purchase of treasury stock(2,000,670)

Disposal of treasury stock

209,377－

Retirement of treasury stock
Net changes of items otherthan shareholders' equity

59,594

3,692,458(177,025)

3,575,026(76,903)(378)

3,497,744

Net change in the year

59,594

3,692,458(177,025)

3,575,026(76,903)(378)

7,258,292

Balance at end of current
period167,186

7,058,883

1,304,441

8,530,511

274,809107,166

80,346,421

10

(4) Consolidated Statements of Cash Flows(Unit: Thousands of yen)
As of December 31, 2022
(From January 1, 2022 to
December 31, 2022)

列1
Operating activities
Income before income taxes
Depreciation and amortization
Gain on revision of retirement benefit plan
Loss on valuation of investment securities
Increase (decrease) in allowance for doubtful receivables(Decrease) increase in net defined benefit liability
Interest and dividends income
Interest expenses
Gain on sales of property, plant and equipment
Loss on disposal of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease in trade payables
Other-net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes refund
Income taxes paid
Net cash provided by operating activities
Investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of investment securities
Proceeds from sales of investment securities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Other-net
Net cash provided by (used in) investing activities
Financing activities
Decrease in short-term bank loans
Repayments of long-term bank loans
Repayments of finance lease obligations
Payments for purchase of treasury stock
Disposal of treasury stock
Dividends paid to shareholders
Dividends paid to noncontrolling shareholders of consolidated subsidiaries
Other-net
Net cash used in financing activities
Foreign currency translation adjustments on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year11

As of December 31, 2023
(From January 1, 2023 to
December 31, 2023)

14,211,555
2,413,910－
52,720(22,611)
100,466(179,840)
32,005(32,655)
20,312(1,728,331)(5,879,548)(56,752)
813,800
9,745,030
179,089(27,684)
91,724(2,464,870)
7,523,288

11,100,921
2,710,204(203,002)－
41,904(391,539)(361,477)
30,310(15,244)
77,803
6,389,800
4,710,822(11,762,165)(483,506)
11,844,832
362,344(30,463)
93,043(5,143,127)
7,126,630(2,170,723)
148,006(200,000)－(500,016)
430,373(2,321,006)
69,275－600,000(284,880)
534,631－(382,959)(341,158)(2,633,517)(253,850)(2,038,789)－－(28,826)(1,960,299)
119,670(2,251,151)(9,970)(493,424)(4,624,003)
2,099,580
2,365,347
27,199,045
29,564,392(15,000)(90,856)(30,108)(2,002,170)
60,877(2,627,762)(5,844)(343,331)(5,054,195)
1,836,442
1,870,086
29,564,392
31,434,479

(5) Notes to Consolidated Financial Statements(Note on Going Concern Assumption)
Not applicable(Changes in Accounting Policies)(Application of “Implementation Guidance on Accounting Standard for Fair Value Measurement”)
The Company began applying the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, revision issued on June 17, 2021) at the beginning of the first quarter ofthe fiscal year under review. Accordingly, the Company will apply the new accounting policies stipulated in the
Implementation Guidance on Accounting Standard for Fair Value Measurement in the future in accordance withthe transitional handling stipulated in Section 27-2 of the Implementation Guidance on Accounting Standard for
Fair Value Measurement.
Application of this guidance has no impact on quarterly consolidated financial statements.

12

(Segment Information)
1. Description of reportable segments
The Group’s reportable segments are those for which separate financial information is available and regular
evaluation by the Company’s management is being performed in order to decide how resources are allocated among
the Group. Star Micronics is comprised of the Special Products, and Machine Tools segments. These two reporting
segments are configured on a business division basis by products and services.
The Special Products Segment engages in the manufacture and sale of point-of-sale (POS) printers. The Machine
Tools Segment undertakes the manufacture and sale of machine tools including CNC automatic lathes.
2. Methods of measurement for the amounts of sales, profit (loss), assets, liabilities and other items for each Reportablesegment
The accounting method for reportable business segments is consistent with the accounting method use to prepare
consolidated financial statements.
Figures for income in reportable segment are on an operating income basis.
3. Information about sales, profit (loss), assets, liabilities and other items
Fiscal year ended December 31, 2022 (From January 1, 2022 to December 31, 2022)(Unit: Thousands of yen)
Reportable Segment
Adjustments(Note 1)

Consolidated
Financial
Statement
Amounts(Note 2)

SpecialProducts

Machine
Tools

Total

17,959,641

69,408,735

87,368,377－

87,368,377

－

－

－

－

－

Total

17,959,641

69,408,735

87,368,377－

87,368,377

Segment profit

3,754,305

12,248,454

16,002,759(2,077,654)

13,925,104

Segment assets

15,940,198

69,478,546

85,418,744

14,119,887

99,538,631

Depreciation

442,282

1,791,135

2,233,418

180,491

2,413,910

Investments in associates

293,145－

293,145－

293,145

Increase in property, plant andequipment and intangible assets

606,0212,598,361

3,204,382

185,908

3,390,290

Sales
Sales to external customers
Intersegment sales or transfers

Other items:

Notes:
1. Adjustments were made as follows.
(1) Adjustments to segment income represent corporate expenses that are not allocated to a particular reporting segment. Corporate expenses
mainly comprise expenses relating to the Company’s head office administration department.
(2) Adjustments to segment assets represent corporate assets that are not allocated to a particular reporting segment. Corporate assets mainlycomprise surplus funds (cash and deposits) as well as assets relating to the Company’s administration department.
(3) Reconciliations recorded for depreciation include depreciation incurred by corporate assets that are not allocated to any reportable segment.
(4) Reconciliations recorded for increase in property, plant and equipment and intangible assets are capital investments principally for corporate
assets that are not allocated to any reportable segment.
2. Segment profit agrees with operating profit in the accompanying consolidated statement of income.

13

Fiscal year ended December 31, 2023 (From January 1, 2023 to December 31, 2023)(Unit: Thousands of yen)
Reportable Segment
Adjustments(Note 1)

Consolidated
Financial
Statement
Amounts(Note 2)

SpecialProducts

Machine
Tools

Total

16,111,522

62,084,860

78,196,383－

78,196,383

－

－

－

－

－

Total

16,111,522

62,084,860

78,196,383－

78,196,383

Segment profit

1,953,241

10,349,536

12,302,777(1,951,898)

10,350,879

Segment assets

14,138,778

64,647,591

78,786,369

14,612,175

93,398,545

Depreciation

496,367

2,045,771

2,542,139

168,064

2,710,204

Investments in associates

301,246－

301,246－

301,246

Increase in property, plant andequipment and intangible assets

502,185

2,042,097

2,544,012

136,1902,680,473

Sales
Sales to external customers
Intersegment sales or transfers

Other items:

Notes:
1. Adjustments were made as follows.
(1) Adjustments to segment income represent corporate expenses that are not allocated to a particular reporting segment. Corporate expenses
mainly comprise expenses relating to the Company’s head office administration department.
(2) Adjustments to segment assets represent corporate assets that are not allocated to a particular reporting segment. Corporate assets mainlycomprise surplus funds (cash and deposits) as well as assets relating to the Company’s administration department.
(3) Reconciliations recorded for depreciation include depreciation incurred by corporate assets that are not allocated to any reportable segment.
(4) Reconciliations recorded for increase in property, plant and equipment and intangible assets are capital investments principally for corporate
assets that are not allocated to any reportable segment.
2. Segment profit agrees with operating profit in the accompanying consolidated statement of income.

14(Per Share Information)
FY12/2022
FY12/2023(From January 1, 2022 to(From January 1, 2023 to
December 31, 2022)
December 31, 2023)
Net assets per share¥1,928.77¥2,178.54
Net income per share¥271.14¥218.89
Diluted net income per share¥270.01¥218.17
Notes: Basis for calculations of net assets per share and diluted net income per share are as follows.
FY12/2022
FY12/2023(From January 1, 2022 to(From January 1, 2023 to
December 31, 2022)
December 31, 2023)
Net income per share
Net income attributable to owners of parent(¥ thousand)Value not attributed to common stock(¥ thousand)Net income attributable to commonshareholders(¥ thousand)Average number of outstanding shares(shares)

10,298,622

8,175,492－－

10,298,622

8,175,492

37,982,790

37,349,647－－

158,764

122,612[158,764][122,612]

Diluted net income per share
Net income adjustments attributable to parent
company shareholders (¥ thousand)
The number of shares of common stockincrease (shares)[Stock acquisition rights (shares)]
Descriptions of potentially dilutive commonshares that were not included in thecomputation of Diluted net income per sharebecause of their anti-dilutive effect

The 11th stock acquisitionrights as ordinary stock
options (126,000 shares)
The 12th stock acquisitionrights as ordinary stock
options (166,000 shares)
The 13th stock acquisitionrights as ordinary stock
options (161,000 shares)
The 15th stock acquisitionrights as ordinary stock
options (141,000 shares)

15

The 11th stock acquisitionrights as ordinary stock
options (126,000 shares)
The 12th stock acquisitionrights as ordinary stock
options (166,000 shares)
The 13th stock acquisitionrights as ordinary stock
options (161,000 shares)
The 17th stock acquisitionrights as ordinary stock
options (100,000 shares)

(Significant Subsequent Events)
Star Micronics Co., Ltd. (“Star Micronics” or “the Company”) announced that its Board of Directors has resolved torenovate its Kikugawa Factory and construct a new factory as a part of its Machine Tools Segment activities. Brief details
are presented as follows.
1.

Purpose(1) Star Micronics will look to increase its production capacity to meet the growing global demand for Swiss-Type
CNC Automatic Lathes. The Company will also build a new factory in Japan to assemble high value-added
products and cutting-edge models. In addition to putting in place a monthly production capacity of 100 units,
efforts will be made to strengthen the Company’s ability to respond to geopolitical risks through these means.
(2) Star Micronics current Kikugawa Factory building was constructed more than 35 years ago. The decision torenovate the Factory is therefore geared toward improving the Company’s BCP by strengthening its response toearthquakes and other disasters.
(3) Star Micronics will work to increase operational and production efficiency, improve quality, and reduce costs
by automating operations through such measures as the introduction of robots and the promotion of DX to createa smart factory.
(4) Star Micronics will install solar panels and other equipment and promote environmentally friendly design andfacilities in a bid to realize sustainable factories. Through these endeavors, the Company aims to obtain ZEB
certification and contribute to the realization of a sustainable society.

2.

Overview of the new factory (1) Kikugawa South Factory (tentative)(1) Location:
Misawa, Kikugawa City, Shizuoka Prefecture(2) Activities:
Manufacture of core components(3) Structural overview: Steel-framed three-story building(4) Building area:
Approx. 10,300 m2 (approx. 3,120 tsubo)(5) Total floor area:
Approx. 13,700 m2 (approx. 4,150 tsubo)(6) Operating expenses: Approx. ¥10 billion(7) Start of construction: July 2024 (planned)(8) Start of operations:November 2025 (planned)3.

Overview of the new factory (2) Makinohara Factory (tentative)(1) Location:
Nunohikihara, Makinohara City, Shizuoka Prefecture(2) Activities:
Body assembly of cutting-edge models(3) Structural overview: Steel-framed two-story building(4) Building area:
Approx. 6,900 m2 (approx.2,090 tsubo)(5) Total floor area:
Approx. 9,100 m2 (approx. 2,760 tsubo)(6) Operating expenses: Approx. ¥5 billion(7) Start of construction: May 2025 (planned)(8) Start of operations:
July 2026 (planned)

16