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 Year Ended March 31, 2023
(Based on Japanese GAAP)May 12, 2023
Company name:
PUNCH INDUSTRY CO., LTD.
Stock exchange listing: Tokyo
Stock code:
6165
URL http://www.punch.co.jp/ir/
Representative:
Chief Executive Officer
Tetsuji Morikubo
Inquiries:
Chief Financial Officer
Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:
Holding of financial results meeting:Takao Murata
TEL 03-5753-3130
June 22, 2023
June 23, 2023
June 23, 2023
Yes
Yes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2023
42,7998.7
2,436 (19.9)
2,394 (20.4)
1,390 (31.9)
Year ended March 31, 2022
39,358
21.2
3,041
88.5
3,007
79.4
2,040 327.2
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
60.15
7.9
8.1
5.7
84.36
14.2
11.2
7.7

Diluted earnings per
share

Earnings per share
Yen
60.58
93.36

Year ended March 31, 2023
Year ended March 31, 2022
(2) Consolidated financial position

As of March 31, 2023
As of March 31, 2022

Total assets
Millions of yen
30,45528,774

Net assets
Millions of yen
19,052
16,307

Cash flows fromoperating activities
Millions of yen
2,560
2,941

Cash flows frominvesting activities
Millions of yen(1,546)(1,099)Equity ratio
%
62.4
56.5

Net assets per share
Yen
778.02737.40(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
(756)
5,212
(1,600)4,669

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(Forecast)

Total cash
Dividend payout
dividends (Total) ratio (Consolidated)

Total

Ratio of dividends
to net assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

4.00
6.50

–
–

9.00
13.00

13.00
19.50

285
465

13.9
32.2

2.0
2.6

–

10.00

–

10.30

20.30

1

62.0

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
20,300(6.3)
810 (47.3)
800 (47.5)
120 (86.8)
4.91
September 30, 2023
Full year
42,000(1.9)
2,150 (11.8)
2,100 (12.3)
800 (42.5)
32.75
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:No
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

24,622,400 shares As of March 31, 2022

22,332,400 shares

Number of treasury shares at the end of the period
As of March 31, 2023

191,339 shares As of March 31, 2022

275,868 shares

22,947,817 shares Year ended March 31, 2022

21,858,118 shares

Average number of shares during the period
Year ended March 31, 2023

2

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits

As of March 31, 2023

4,816,271

5,212,840

Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Work in process

2,043,258
9,191,812
2,408,754
813,141

1,745,722
9,632,805
2,851,464
658,304

Raw materials and supplies
Other
Allowance for doubtful accounts

1,569,159
485,384(48,002)

1,531,566
484,910(39,625)

Total current assets

21,279,780

22,077,989

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

5,905,167

6,157,577(4,140,358)(4,386,200)

Buildings and structures, net

1,764,809

1,771,377

Machinery, equipment and vehicles
Accumulated depreciation

16,310,582(12,703,869)

17,405,829(13,513,007)

3,606,712

3,892,822

2,514,054(2,081,516)

2,732,280(2,273,126)

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation

432,538

459,154Land

Tools, furniture and fixtures, net

778,847

829,852

Construction in progress
Other
Accumulated depreciation

168,440
392,570(131,311)

161,203
466,171(265,868)

261,259

200,303

7,012,607

7,314,714–
177,903

466,570
228,902

177,903695,473

118,693
198,737(13,623)

201,750
202,263(36,214)

Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

303,807367,799

7,494,318

8,377,987

28,774,098

30,455,976

(Thousands of yen)
As of March 31, 2022

As of March 31, 2023

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

2,738,725
1,078,059

2,667,392
999,425

Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Income taxes payable

1,774,655–
710,978
384,126

1,300,590
10,000728,838
396,959

Provision for bonuses
Provision for directors' bonuses
Other

400,265
17,183
2,897,059

379,197–
2,698,358

Total current liabilities

10,001,052

9,180,761

Non-current liabilities
Long-term borrowings
Retirement benefit liability

907,890
1,145,220

675,657
1,243,685

412,726

303,303

Other

2,465,836

2,222,646

Total liabilities

Total non-current liabilities

12,466,888

11,403,407

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

2,944,776
2,512,189
9,057,592(136,301)

3,406,477
2,967,666
10,101,571(94,544)

14,378,256

16,381,171

1,962,065(75,761)2,737,825(111,203)

1,886,303

2,626,622

26,13016,51820,86323,911

16,307,209

19,052,569

28,774,098

30,455,976

Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

Net sales
Cost of sales

39,358,634
27,913,724

42,799,503
31,168,808

Gross profit

11,444,910

11,630,695

Selling, general and administrative expenses

8,403,308

9,194,171

Operating profit

3,041,601

2,436,524

Non-operating income
Interest income
Gain on sale of scraps

53,047
27,87961,33440,564

Subsidy income
Other

4,418
45,08427,53339,386

Total non-operating income

130,430

168,820

53,90973,22537,24362,091106,011
43,159Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses

164,378

211,262

3,007,653

2,394,081

Extraordinary income
Gain on sale of non-current assets

6,035

16,139Total extraordinary income

6,035

16,139

5,953
159,926

36,903297,924

Ordinary profit

Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses

165,880

334,827

Profit before income taxes

Total extraordinary losses

2,847,808

2,075,393

Income taxes - current
Income taxes - deferred

805,177(2,994)

732,547(54,209)

Total income taxes

802,183

678,338

2,045,624

1,397,055

4,899

6,880

2,040,725

1,390,174

Net Profit
Profit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended
March 31, 2022
Net Profit
Other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Fiscal year ended
March 31, 2023

2,045,624

1,397,055

1,843,452

776,271544(35,441)

1,843,996

740,830

3,889,621

2,137,885

3,883,489

2,130,492

6,132

7,392

Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,897,732

Retained earnings

2,590,646

Total shareholders'

Treasury shares

7,016,866

equity(149,905)

12,355,340

Changes during period
Issuance of new shares

47,044

Dividends of surplus

47,044

94,088(131,013)(131,013)

Profit attributable to owners of

2,040,725

parentDisposal of treasury shares

2,040,725

5,511

13,603

19,115

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

47,044(78,457)

2,040,725

13,6032,022,915

2,944,776

2,512,189

9,057,592(136,301)

14,378,256

Accumulated other comprehensive income
Foreigncurrencytranslation
adjustment
Balance at beginning of period

119,846

Total
Remeasurements

accumulatedof defined benefit

other

plans

comprehensive
income(76,306)

43,540Share
acquisitionrights26,970Non-controlling
Total net assetsinterests

10,386

12,436,237

Changes during period
Issuance of new shares

94,088Dividends of surplus(131,013)

Profit attributable to owners of

2,040,725

parentDisposal of treasury shares
Net changes in items otherthan shareholders' equity

19,115
1,842,218

544

1,842,763

(839)

6,132

1,848,056

Total changes during period

1,842,218

544

1,842,763

(839)

6,132

3,870,972

Balance at end of period

1,962,065(75,761)

1,886,303

26,13016,51816,307,209

7

Fiscal year ended March 31, 2023
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,944,776

2,512,189

461,701

461,701

Retained earnings

Total shareholders'

Treasury shares

9,057,592

equity(136,301)

14,378,256

Changes during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparentDisposal of treasury shares

923,402(346,194)(346,194)1,390,174

1,390,174(6,223)41,75735,533

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

461,701

455,477

1,043,979

41,7572,002,915

3,406,477

2,967,666

10,101,571(94,544)

16,381,171

Accumulated other comprehensive income
Foreigncurrencytranslation
adjustment
Balance at beginning of period

1,962,065

Total
Remeasurements

accumulatedof defined benefit

other

plans

comprehensive

ShareacquisitionrightsNon-controllinginterests

Total net assets

income(75,761)

1,886,303

26,13016,51816,307,209

Changes during period
Issuance of new shares

923,402

Dividends of surplus(346,194)

Profit attributable to owners of

1,390,174

parentDisposal of treasury shares
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

35,533775,759(35,441)

740,318(5,267)

7,392

742,444775,759(35,441)

740,318(5,267)

7,392

2,745,359

2,737,825(111,203)

2,626,622

20,86323,911

19,052,569

8

Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation

Fiscal year ended
March 31, 2023

2,847,808
971,746

2,075,393
1,130,489

159,926–
61,324
128,343

297,924
24,55647,045(21,996)

17,183(17,183)(16,968)(53,047)

11,905(61,334)

Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale and retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other, and accrued
expenses
Subsidy income
Other, net

53,909699(81)(286,768)(417,353)
25,88262,09173,682
20,717
463,624
82,994(565,596)

168,135(276,227)(4,418)26,783(27,533)(58,898)

Subtotal

3,683,106

3,261,652

Interest and dividends received
Interest paid
Subsidies received
Income taxes paid

53,047(66,319)
4,418(732,778)

61,334(53,802)
27,533(736,335)

Net cash provided by (used in) operating activities

2,941,474

2,560,382(17,212)(999,260)
10,997(73,376)–
9,948(4,650)147,090(1,138,726)
12,454(148,124)
11
7,409(4,000)–(457,472)(50,164)
24,157–(9,253)
43,625350(1,099,559)(1,546,635)

Impairment losses
Amortization of goodwill
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of intangible assets
Proceeds from collection of long-term loans receivable
Long-term loan advances
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities

9(Thousands of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings(411,874)
345,060(667,745)
367,170

Repayments of long-term borrowings
Repayments of installment payables
Repayments of lease liabilities
Proceeds from issuance of share acquisition rights(1,326,368)(81,889)(94,166)
5,750(798,683)(83,705)(140,316)––
93,605(131,013)
6(5,000)918,135(346,194)–

Redemption of bonds
Proceeds from issuance of shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities(1,600,888)(756,340)

Effect of exchange rate change on cash and cash equivalents

466,019

286,252

Net increase (decrease) in cash and cash equivalents

707,045543,659

Cash and cash equivalents at beginning of period

3,962,135

4,669,180

Cash and cash equivalents at end of period

4,669,180

5,212,840

10