Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended June 30, 2024
(Based on Japanese GAAP)
August 7, 2024
Company name:

Kawai Musical Instruments Manufacturing Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
7952
Representative:
Inquiries:

URL

https://www.kawai.co.jp/President
General Manager

Kentaro Kawai
Norikazu TakadaCorporate Strategy Dept.
Scheduled date to commence dividend payments:

TEL053-457-1226–

Preparation of supplementary material on financial results:
Holding of financial results meeting:

NoNo(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Three months ended June 30, 2024
17,602(9.3)(555)–(227)–(283)–
Three months ended June 30, 2023
19,406(6.5)
778 (32.2)
1,207 (22.9)
777 (15.4)
Earnings per share

Diluted earnings per share

Yen(32.96)
90.47

Three months ended June 30, 2024
Three months ended June 30, 2023

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
73,11773,538

As of June 30, 2024
As of March 31, 2024

Equity ratio

Millions of yen
43,187
43,141%58.858.4

2. Cash dividends
Annual dividends per share

Year ended March 31, 2024
Year ending March 31, 2025

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
0.00

Yen–

Yen
95.00

Yen
95.00

––––

Year ending March 31, 2025 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)

Net sales

Full year

Millions of yen
77,500Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen(3.4)
1,000 (69.3)
1,000 (76.2)
400 (85.6)
46.53

1

4. Notes(1) Significant changes in the scope of consolidation during the three months ended June 30, 2024:(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoYes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

9,011,560 shares As of March 31, 2024

9,011,560 shares

412,040 shares As of March 31, 2024

415,390 shares

Number of treasury shares at the end of the period
As of June 30, 2024

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024

8,599,537 shares Three months ended June 30, 2023

28,594,716 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2024

As of June 30, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

18,231
9,307

16,080
9,013

Merchandise and finished goods
Work in process

11,157
1,673

11,961
1,883

Raw materials and supplies
Other6,232
3,298

6,286
4,296

Allowance for doubtful accounts
Total current assets

(184)

(197)

49,71549,323

4,024

4,049

1,814
6,398

1,834
6,416

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net

1,620

1,606

Total property, plant and equipment

13,857

13,906

Intangible assets

596

576

Investments and other assets
Investment securities

7,175

7,139

Deferred tax assets
Other

666
1,705

694
1,658

Allowance for doubtful accounts

(179)

(182)

Total investments and other assets

9,368

9,309

23,822

23,79373,53873,1175,607
5,197

5,954
5,152

702
903

185
346

Provision for product warranties
Other

207
5,686

219
6,077

Total current liabilities

18,303

17,935

Non-current liabilities
Long-term borrowings

2,921

2,750

329

3
23

7,852
586

7,961
591

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses

Provision for environmental measures
Provision for share-based payments
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

3699

663

12,093

11,99330,39629,929(Millions of yen)
As of March 31, 2024

As of June 30, 2024

Net assets
Shareholders' equity
Share capital

7,122

7,122

Capital surplus
Retained earnings

1,282
29,971

1,282
28,867

Treasury shares

(985)

(976)

37,39236,297

1,687
3,906

1,662
5,057

(59)

(54)

5,534

6,665

214

224

43,141

43,18773,53873,117

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended

Three months ended

June 30, 2023

June 30, 2024

Net sales
Cost of sales

19,406
14,244

17,602
13,624Gross profit

5,162

3,978

Selling, general and administrative expenses

4,383

4,533

778(555)

Interest income
Dividend income

2147

2850

Rental income from non-current assets
Foreign exchange gains

13380

14287

Operating profit (loss)
Non-operating income

Other

24

21

Total non-operating income

486

402

Interest expenses
Donations

1827

1938

Other

1016

Non-operating expenses

Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets

57

74

1,207(227)1–Compensation income

25–

Total extraordinary income

26–

119

Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit (loss) before income taxes

119

1,233(246)

Income taxes

46136

Profit (loss)

771

(282)

Profit (loss) attributable to non-controlling interests(5)0Profit (loss) attributable to owners of parent

777(283)5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Profit (loss)
Other comprehensive income

Three months ended

Three months ended

June 30, 2023

June 30, 2024
771(282)

338
315

(25)
1,156

24(4)

17651

1,153

Comprehensive income

1,423

870

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,425859(1)

10Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

6