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 Six Months Ended September 30, 2023
(Based on Japanese GAAP)
November 10, 2023
Company name:
PUNCH INDUSTRY CO., LTD.
Stock exchange listing: Tokyo
Stock code:
6165
URL https://www.punch.co.jp/ir/
Representative:
Chief Executive Officer
Inquiries:
Chief Financial Officer
Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

Tetsuji Morikubo
Takao Murata
November 13, 2023
December 8, 2023

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

Yes
Yes

TEL 03-5753-3130(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(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%
Six months ended September 30, 2023
19,120 (11.7)
521 (66.0)
808 (47.0)(950)–
Six months ended September 30, 2022
21,665
11.0
1,537 (13.1)
1,524 (12.2)
905 (28.0)
Earnings per share

Diluted earnings per share

Yen(38.87)40.62

Six months ended September 30, 2023
Six months ended September 30, 2022

Yen–40.20(2) Consolidated financial position
Total assets
As of September 30, 2023
As of March 31, 2023

Net assets

Millions of yen
31,60630,455Equity ratio

Millions of yen
18,577
19,052

%
58.7
62.4

2. Cash dividends
1st quarter-end
Year ended March 31, 2023
Year ending March 31, 2024
Year ending March 31, 2024 (Forecast)

Annual dividends per share
2nd quarter-end
3rd quarter-end
Fiscal year-end

Yen––

Yen
6.50
10.00

TotalYen–

Yen
13.00

Yen
19.50

–

9.21

19.21

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Full year

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
38,200 (10.7)
1,150 (52.8)
1,350 (43.6)(900)–(36.79)1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo
No

(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

24,622,400 shares As of March 31, 2023

24,622,400 shares

Number of treasury shares at the end of the period
As of September 30, 2023

156,071 shares As of March 31, 2023

191,339 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

24,439,213 shares Six months ended September 30, 2022

222,303,554 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits

As of September 30, 2023

5,212

6,676

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

1,745
9,632
2,851658

1,683
9,419
2,791
627

Raw materials and supplies
Other
Allowance for doubtful accounts

1,531
484
(39)

1,450
723
(38)

Total current assets

22,077

23,333

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

6,157

6,311

(4,386)(4,565)

Buildings and structures, net

1,771

1,746

Machinery, equipment and vehiclesAccumulated depreciation

17,405(13,513)

17,936(13,992)

3,892

3,944

2,732
(2,273)2,849(2,381)

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

459

467

Land

Tools, furniture and fixtures, net

829

823

Construction in progress
Other
Accumulated depreciation

161
466
(265)

164
513
(315)

200

198

7,314

7,343

466
228

442
203

Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other

695

645

Investments and other assets
Investments and other assets
Allowance for doubtful accounts

Total intangible assets

404(36)318(35)

Total investments and other assets

367

283

8,377

8,272

30,45531,606

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

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

2,667
999

2,456
973

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

1,300
10728
396

50
5
1,447
260

Provision for bonusesOther

379
2,698

527
3,316

Total current liabilities

9,180

9,037

Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other

675
1,243
303

2,826
844
320

Total non-current liabilities

2,222

3,991

Total liabilities

11,40313,028

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

3,406
2,967
10,101
(94)

3,406
2,968
8,833
(76)

16,381

15,131

2,737
(111)

3,473
(65)

2,626

3,407

20
23

14
23

19,052

18,57730,45531,606

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 (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2023

Net sales

21,665

19,120

Cost of sales

15,617

14,085Gross profit

6,048

5,035

Selling, general and administrative expenses

4,511

4,513

Operating profit

1,537

521

28

35

Foreign exchange gains
Other–
38216
61

Total non-operating income

67313

2645
720–
5

Non-operating income
Interest income

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses

79

26

1,524

808

Extraordinary income
Gain on sale of non-current assets

45

Total extraordinary income

45

9101
–––

9265
781
45
323

Total extraordinary losses

111

1,426

Profit (loss) before income taxes

Ordinary profit

Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Loss on business restructuring
Retirement benefit expenses
Loss on liquidation of subsidiaries

1,417(612)

Income taxes - current
Income taxes - deferred

356
153

235
98

Total income taxes

509

334

Net Profit (Net loss)

908

(946)

Profit attributable to non-controlling interests

2

3

Profit (loss) attributable to owners of parent

905

(950)

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)Six months ended
September 30, 2022
Net Profit (Net loss)
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

Six months ended
September 30, 2023
908(946)

2,023

731(42)

45

1,981

777

2,889(169)

2,884(168)5(0)

Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2022
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
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 payablesIncrease (decrease) in accounts payable - other, and accrued
expenses
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
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
Long-term loan advances
Proceeds from collection of long-term loans receivable
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of installment payables
Repayments of lease liabilities
Redemption of bonds
Proceeds from issuance of shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

7

Six months ended
September 30, 2023

1,417
554
101
–
17(612)572
265
24(335)

(9)

–

455
(10)
(28)
26
4
5(148)
(142)
(34)

142
(6)
(35)
20(199)
4
827
356
(469)

(888)

622

(126)
1,196
28
(12)
(386)
825

(171)
1,006
35(31)(362)
648

36(600)11(50)–
4(5)
160(588)(0)(515)
16(14)(0)2(6)
80(508)

(367)
367
(362)
(41)
(77)
–
258
(198)
–
(421)
494
309
4,669
4,978

(1,252)
3,400
(592)
(42)
(66)
(5)
–(317)
0
1,123
201
1,463
5,212
6,676