Consolidated
Results
2024 2Q
1. Consolidated Performance Overview for January to June 2024
During the first six months of the fiscal year ending December 31, 2024, the Japanese economy continued its gradual
recovery from the accelerated normalization of economic activities.
On the other hand, the situation remained uncertain, with persistently high raw material and energy prices and theongoing rise in commodity, as well as the stagnation of China’s real estate market and the protracted situation in theMiddle East and Ukraine.
Against this backdrop, the Group has launched a Medium-Term Management Plan “V-plan 26” this fiscal year, withpriority strategies of “Transformation of Business Portfolio,” “Expansion of Strategic Investments and CapitalPolicy,” and “Promotion of Sustainability Management” in order to respond to changes in the business environment
and aim for sustainable growth and enhancement of corporate value. Under “V-plan 26,” in its Domestic Business
the Company work toward achieving a carbon-neutral society by allocating management resources to provide newvalue through environmentally friendly products as well as products that solve social issues, while in its OverseasBusiness it will aim to expand its business and profits in North America region and develop new businesses inSoutheast Asia.
As a result, consolidated operating results for the first six months of the fiscal year ending December 31, 2024, wereas follows: net sales of ¥96.0 billion (a decrease of 3.7% year on year), and operating loss of ¥0.1 billion (operating
income of ¥1.2 billion in the same period of the previous fiscal year), ordinary income of ¥0.4 billion (a decrease of
70.3% year on year), and net loss attributable to shareholders of parent company of ¥0.3 billion (net income of ¥1.0
billion in the same period of the previous fiscal year).
Billions of yen
2021

2022

2023 2Q

2024 2Q

2024 (plan)¥178.1¥210.9

¥99.7

¥96.0

¥205.0

Domestic Business*

115.3

141.4

64.9

61.0

134.0

Overseas Business*

62.7

69.5

34.8

34.9

71.0

2.5

6.8

1.2(0.1)

32.0

Domestic Business

(0.1)

3.3

(0.1)

(0.7)

15.0

Overseas Business

2.6

3.5

1.3

0.5

17.0

Ordinary Income

3.9

7.9

1.3

0.4

42.0

Net Income attributable toshareholders of parent company

5.4

4.81.0(0.3)

47.0

Net Sales

Operating Income*Does not include figures for internal transactions

Operating results by segment are described below.
i.

Domestic BusinessIn the Domestic Business segment, for the first six months of the fiscal year ending December 31, 2024, we achieved
sales of ¥61.0 billion (a decrease of 6.0% year on year) and segment loss of ¥0.7 billion (segment loss of ¥0.1 billion
in the same period of the previous fiscal year).
We promoted initiatives to realize carbon neutrality, such as increasing unit sales of hybrid water heaters withutilization of subsidies, by 150% year on year in the Water Heaters section, and encouraging the replacement ofboilers with commercial gas water heaters in the Commercial section. On the other hand, for residential gas and oilwater heaters, unit sales of high value-added products decreased due to a sluggish housing market.
In the Kitchen Appliances section, unit sales of mid-grade built-in gas cookers and range hoods increased, but overallunit sales of built-in gas cookers decreased. Consequently, we experienced lower sales and lower income for theoverall domestic business.
ii.

Overseas BusinessIn the first six months of the fiscal year ending December 31, 2024, the Overseas Business segment saw sales of¥34.9 billion (an increase of 0.5% year on year) and segment income of ¥0.5 billion (a decrease of 58.4% year onyear).
In the Chinese region, amid worsening market conditions, sales of kitchen appliances were strong, despite the unit
sales of water heaters decreased and the product mix also worsened.
In the North American region, unit sales of high-efficiency water heaters increased significantly, while sales ofheating boilers were sluggish.
In the Australian region, sales of heat pump water heaters and electric water heaters were strong, reflecting the trend
towards electrification.
Consequently, we experienced higher sales and lower income for the overall overseas business.

2. Explanation regarding consolidated operating results forecast and otherforward-looking statements
Total assets at the end of the first six months of the current fiscal year were ¥215.9 billion (an increase of ¥8.1 billion
from the end of the previous fiscal year).
Due to the decrease in bills receivable, accounts receivable, and contract assets, current assets were ¥119.2 billion(a decrease of ¥2.2 billion from the end of the previous fiscal year).
In addition, due to the increase in investment securities and other factors, noncurrent assets were ¥96.6 billion (anincrease of ¥10.4 billion from the end of the previous fiscal year).
Due to the decrease in bills payable and accounts payable, liabilities at the end of the first six months were ¥79.8billion (a decrease of ¥1.2 billion from the end of the previous fiscal year).
Total net assets at the end of the first six months were ¥136.0 billion (an increase of ¥9.3 billion from the end of theprevious fiscal year).
As a result, the equity ratio was 60.6%.
Cash Flow Conditions
Cash and cash equivalents (“funds”) at the end of the first six months of the fiscal year ending December 31, 2024,
were ¥27.4 billion, an increase of ¥2.2 billion compared to the end of the previous fiscal year.
The cash flow conditions for the first six months of the current fiscal year and the factors thereof are as follows.

Cash Flow from Operating Activities
Funds from operating activities were ¥6.4 billion.
This is mainly due to an increase in funds resulting from loss before income taxes and minority interests of ¥0.1billion and a decrease in trade receivables of ¥7.3 billion, and a decrease in funds resulting from a decrease in trade
payables of ¥2.5 billion and an increase in inventories of ¥0.2 billion.
Cash Flow from Investment Activities
Funds used in investment activities were ¥5.2 billion.
This is mainly due to a decrease in funds resulting from payments for purchase of marketable securities of ¥2.7billion.
Cash Flow from Financing Activities
Funds used in financing activities were ¥1.3 billion.
This is mainly due to a decrease in funds resulting from net decrease in short-term borrowings of ¥0.6 billion anddividends paid of ¥0.9 billion, and an increase in funds resulting from net increase in long-term borrowings of ¥0.6billion.

3. Explanation regarding consolidated operating results forecast and otherforward-looking statements
In light of recent performance trends, the Company has revised the consolidated operating results forecast
announced in the consolidated results on February 14, 2024.
For details, please refer to the “Notice Regarding Difference Between Consolidated Operating Results Forecast for
the First Six Months of the Fiscal Year Ending December 31, 2024 and Actual Results, and Revisions to Full-Year
Consolidated Operating Results Forecast” announced today (August 8, 2024).

4. Consolidated Financial Highlights
Noritz Corporation and Consolidated Subsidiaries Years ended December 31, 2021, 2022, 2023 and 2024

Millions of yen

2021

2022

2023

2024 2Q¥178,142¥210,966¥201,891¥96,012

2,500

6,889

3,840

（127）

1.43.31.9（0.1）

Net income attributable to shareholders of parent company

5,479

4,800

868

（354）

Net cash provided by operating activities

15,4772,403(1,868)6,455

Net cash used in investing activities(2,522)(7,790)(5,664)（5,253）

Net cash used in financing activities(3,118)(4,778)(3,235)（1,340）Cash and cash equivalents

43,15935,14725,15927,419

Capital expenditures

6,019

6,223

9,201

4,903

Depreciation and amortization

6,136

6,590

7,438

3,219

Total assets¥194,527¥216,974¥207,771¥215,949Net assets

116,193

119,656

126,667

136,051

Net income¥119.12¥104.64¥18.84¥（7.68）

Cash dividend

83.00

53.00

53.00

33.00

2,433.96

2,508.08

2,644.38

2,833.26

Return on equity (ROE)

5.0

4.2

0.7（0.3）

Equity ratio

57.6

53.1

58.7（60.6）

Fiscal Year:Net sales
Operating income
Operating margin (%)

At Fiscal Year—End:

Per Share Data (Yen):

Net assets

Financial Ratios (%):