August 9, 2024

Notice Regarding Differences between Business Results Forecasts
and Financial Results for the First Half of the Fiscal Year Ending December 31, 2024
(Interim Period) and Revisions to Full Fiscal Year Earnings Forecast
In addition to differences between business results forecasts announced on February 9, 2024 and financial results forthe first half of fiscal 2024, the fiscal year from January 1, 2024 to December 31, 2024, disclosed today, STAR
MICRONICS CO., LTD. (“the Company”) provides details of its decision to revise earnings forecasts for the fullfiscal year, also announced on February 9, 2024, as follows.
1.

Differences between business results forecasts and financial results for the first half of fiscal 2024 (January 1, 2024 toJune 30, 2024)
Net Sales

Operating
IncomeOrdinary
IncomeNet Income
Attributable to
Owners ofParent

Net Income PerShare(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Yen)

Previous Forecasts: A

27,440

1,900

2,000

1,300

35.42

Results: B

30,986

1,548

2,008

584

16.26

Change: B-A

3,546(351)

8(715)

Change: B vs. A (%)

12.9(18.5)

0.4(55.0)

42,926

7,380

7,614

5,238

(Reference) FY 2023

139.36

Second-quarter

2.

Revisions to consolidated earnings forecasts for the full fiscal year (fiscal 2024: January 1, 2024 to December 31,2024)
Net Sales

Operating
IncomeOrdinary
IncomeNet Income
Attributable toOwners ofParent

Net Income Per
Share(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Yen)

Previous Forecasts: A

65,800

7,000

7,200

5,100

138.94

Revised Forecasts: B

68,000

5,400

6,000

3,700

107.68Change: B-A

2,200(1,600)(1,200)(1,400)3.3(22.9)(16.7)(27.5)

78,196

10,35010,9608,175

Change: B vs. A (%)(Reference) FY 2023

3.

218.89Reasons

In the first half of the fiscal year under review, sales exceeded forecasts. Despite weak sales mainly in theMachine Tools business across all regions, excluding the Chinese market, amid the overall effects of the
weak yen, this was largely due to the strong recovery trend in China. Meanwhile, as far as profits areconcerned, operating income declined primarily as a result of delays in the recovery in market conditions
across all regions except China. While ordinary income was essentially in line with previous forecasts, net
income attributable to owners of parent for the first half of the fiscal year under review fell substantiallybelow forecasts owing to such factors as an increase in the tax burden resulting from the impact of tax effectaccounting on unrealized income.

Turning to earnings forecasts for the full fiscal year, profits are projected to fall substantially below previous
forecasts despite an improvement in sales. Notwithstanding robust sales in the Chinese market in theMachine Tools business, and in addition to the impact of the weak yen, these forecast results are attributableto such factors as delays in the market’s recovery in both the Special Products and Machine Tools businesses
in the U.S. and persistent weak conditions from the third quarter. In revising its earnings results forecasts,
STAR MICRONICS has adjusted its underlying foreign currency exchange rate assumptions from ¥135 to¥145 for the U.S. dollar and from ¥150 to ¥155 for the euro from the third quarter of the fiscal year underreview.
Earnings forecasts by segment are provided in the supplemental information as follows.
* All amounts are rounded down to the nearest million yen. Forecasts are based on information available
as of the date of this release. Actual results may differ materially from forecasts due to a variety of factors.

(Supplemental Information)
Consolidated Forecasts (By Segment)(Millions of yen)
Full-year Fiscal 2024
Previous

RevisedForecasts

Forecasts

ChangeAmount(%)

Net Sales

14,87013,300(1,570)(10.6)

Operating Income

1,310

480(830)(63.4)

8.8

3.6

Net Sales

50,93054,9003,970

7.8

Operating Income

7,720

7,000(720)

(9.3)

15.2

12.8

Eliminations or Corporate(2,030)(2,080)(50)

Consolidated

Net Sales

65,80068,2002,400

3.6

Operating Income

7,000

5,400(1,600)(22.9)

10.6

13.4

Special Products

Income Ratio (%)
Machine Tools

Income Ratio (%)

Income Ratio (%)###