This is an English translation of an excerpt of the flash report of the financial results issued in Japanese.
The figures for these financial statements are prepared in accordance with the accounting principles based on Japanese law.

Consolidated Financial Results for the Fiscal Year 2024 (Japanese GAAP)
July 12, 2024
Listed company nameSuminoe Textile Co., Ltd
Listed on the Tokyo Stock Exchange
Code number
3501
URL: https://suminoe.co.jp/
Representative(Title) President(Name) Teppei Nagata
Responsible contact person (Title) Managing Director, General Manager, Corporate Planning Department(Name) Hiroaki Usugi(Phone) +81-6-6251-6803
Date of holding Annual General Meeting of Shareholders: August 29, 2024
Scheduled date of dividend payment: August 30, 2024
Scheduled date of filing of annual security report: August 29, 2024
Preparation of supplementary explanatory documents for financial results: No
Holding analyst meeting for financial results: Yes (For institutional investors and securities analysts)(Amounts are rounded down to the nearest million yen) (Figures in brackets are negative)

1. Consolidated Financial Results for FY2024 (June 1, 2023 to May 31, 2024)(1) Consolidated Operating Results
Net sales(% change from the previous year)
Profit attributable toOrdinary income
owners of parent

Operating income

Million yen%

Million yen%

Million yen%

Million yen

%

874
320

172.9
14.0

FY2024103,478
9.1
3,300
154.9
3,668
132.9
FY2023
94,828
16.0
1,294
1,575
65.7
－
(Note) Comprehensive income
FY2024: 3,588 million yen (117.1%) FY2023: 1,653 million yen (41.3%)
Profit per share
Basic

Profit per share
DilutedYen

FY2024FY2023

Ratio of profit to
Ratio of ordinary
Ratio of operating
equityincome to total assets income to net sales

Yen

132.22
50.55(Reference) Equity in earnings or losses of affiliates

%

%

%

－
－
FY2024: (261) million yen FY2023: (18) million yen

3.2
1.4

2.9
1.1

4.1
1.8

Equity ratio

Book-value per share(2) Consolidated Financial Position
Total assets

Net assets

Million yen

FY2024FY2023(Reference) Shareholders’ equity

Million yen

92,19937,687
88,151
34,113
FY2024: 32,038 million yen FY2023: 28,861 million yen

%

Yen

34.7
32.7

4,742.69
4,549.75(3) Consolidated Cash Flows
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at the end of period
FY2024FY2023

Million yen

Million yen

Million yen

Million yen

7,450
1,803

(2,323)(2,834)(4,204)
(52)

8,153
6,929

2. Dividend Information
Dividend per shareFirst quarter
FY2023
FY2024FY2025 (Forecast)Secondquarter

Third
quarter

End of theyear

AnnualDividend to
Total annual Payout ratio
equity ratio
dividends (consolidated)(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

－
－
－

35.00
35.00
40.00

－
－
－

20.00
35.00
40.00

55.00
70.00
80.00

348
472

108.8
52.9
36.0

1.2
1.5

3. Forecast of Consolidated Financial Results for FY2025 (June 1, 2024 to May 31, 2025)

Net salesInterimFull year

Operating income

Ordinary income(% change from the previous fiscal year)
Profit attributable toProfit per shareowners of parent
Basic

Million yen%

Million yen%

Million yen%

Million yen%

Yen

51,200105,300

(0.4)
1.8

1,000
3.300

(28.9)
(0.0)

1,100
3,400

(35.0)
(7.3)

300
1,500

(60.2)
71.5

44.41
222.05*Notes(1) Major changes in significant consolidated subsidiaries during the period (changes in specified subsidiaries
accompanying change in the scope of consolidation): No(2) Changes in accounting policies, financial estimates and restatements
(i)
(ii)
(iii)
(iv)

Changes in accounting policies due to revisions of accounting standards: No
Changes in accounting policies other than (i) above: No
Changes in financial estimates: Yes
Restatements of financial statements: No(3) Number of shares issued (common stock)(i)

Number of shares issued at the end of the period(including treasury stock)

FY2024

7,682,162 shares

FY2023

7,682,162 shares(ii)

Number of treasury shares at the end of the period

FY2024926,816 shares

FY2023

1,338,540 shares(iii)

Average number of shares during the period

FY2024

6,613,408 shares

FY2023

6,339,922 shares(Reference) Summary of Non-Consolidated Financial Results
1. Non-Consolidated Financial Highlights for FY2024 (June 1, 2023 to May 31, 2024)(1) Non-Consolidated Operating Results (% change from the previous fiscal year) (Figures in brackets are negative)
Net sales

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

18,76917,269

8.7
15.1

(569)
(666)

－
－

874
659

32.6
49.2

(286)
701

－
(22.8)FY2024FY2023

Profit per share Basic

FY2024FY2023

Profit per share Diluted

Yen

Yen

(43.39)110.63－－(Reasons for the difference between non-consolidated financial results and those for the previous fiscal year)
As the Company has recognized in extraordinary losses of a loss on valuation of shares of subsidiaries and associates
arising from share transfer of an entity accounted for using the equity method, the difference between the profit for
FY2024 and the profit for FY2023 is above a certain level.
(2) Non-Consolidated Financial Position
Total assets
Million yen

FY2024FY2023(Reference) Shareholders’ equity

Net assets

Equity ratio

Million yen

69,241
23,262
69,281
22,503
FY2024: 23,262 million yen FY2023: 22,503 million yen

Book-value per share
%

Yen

33.6
32.5

3,443.56
3,547.44

(Note) The summary of financial results is outside the scope of review by a certified public accountant or an accounting
firm.
(Note) Explanation on the appropriate use of forecasts and other special issues(Note on the forward-looking statements)
The forward-looking statements in this document concerning forecasts of performance, etc. are based on currently
available information, and contain uncertain factors. The actual performance may be significantly different from theforecasts due to various factors.

Table of contents of attached document
1. Overview of business results, etc. ………………………………………………………………………………P. 2(1) Overview of business results for the fiscal year under review …………………………………………………P. 2(2) Overview of financial position for the fiscal year under review ...………………………………………….P. 8(3) Overview of cash flows for the fiscal year under review …………………………………………………….P. 8(4) Forecast of financial results for FY2025 ……………………………………………………………………...P. 9
2. Basic policy regarding selection of accounting standards ………………………………………………………P. 9
3. Consolidated financial statements and major notes ………………………………………………………………P. 10(1) Consolidated balance sheet …………………………………………………………………………………P. 10(2) Consolidated statement of income and comprehensive income ………………………………………………P. 12
Consolidated statement of income ………………………………………………………………………….P. 12
Consolidated statements of comprehensive income ………………………………………………………..P. 13(3) Consolidated statements of changes in shareholders’ equity …………………………………………….P. 14(4) Consolidated statement of cash flows …………………….….………………………………………………P. 16(5) Major notes on consolidated financial statements ……………………………………………………………P. 18(Notes on assumption of going concern) ……………………………………………………………………P. 18(Changes in accounting estimates) …………………………………………………….……………………P. 18(Segment information, etc.) …………………………………………………………………………………P. 18(Per share information) ……………………………………………………………………………………P. 23(Significant subsequent events) ……………………………………………………………………………...P. 23-1-

1. Overview of business results, etc.
(1) Overview of business results for the fiscal year under review
During the consolidated fiscal year ended May 31, 2024 under review, the Japanese economy remained resilient
due to progress in the normalization of social and economic activities, recovery of private consumption due to a
gradual improvement in the employment and income situation, and an increase in inbound demand. On the other hand,
the tense global situation, soaring raw material and energy prices, and the effects of fluctuations in financial and capital
markets continued to require close attention.
In the interior industry, which relates to the Company’s business, the domestic new housing starts was down
5.7% year on year, and the floor area of nonresidential construction starts also decreased 10.7% year on year. In theautomotive industry, automobile production in the Japanese market was up 3.2% year on year. Both production andsales in overseas markets increased and exceeded the results for the previous year.
The Group has been promoting its medium- to long-term management targets, “SUMINOE GROUP WAY 20222024-2027,” which was in its third year.
In the Interior Fitting Segment, the Company focuses on increasing sales of environment-friendly and healthconscious products, such as ECOS®, which represents eco-friendly carpet tiles under a horizontal recycling system.
In FY2024, high appreciation of their environmental performance led to an increase in the number of orders received.
Furthermore, the Company is striving to expand the scope of its space design business, which involves designing anentire space, and synergy among Group companies is starting to emerge as a result. The Company is reinforcing its
competitive edge by flexibly satisfying customer needs in the entire Interior Fittings Segment while working to raiseawareness of the SUMINOE brand by enhancing the lineup of value-added products corresponding to the middle- tohigh-end product range.
In the Automotive Textiles and Traffic Facilities Segment, we focus on global expansion of the decorative
fabric business as well as technology development and increasing orders received for non-textile products, such as
artificial leather, in the automotive textiles business while also striving to expand the sales of eco-friendly products. In
the current fiscal year, the Company, in collaboration with Toyota Motor Corporation, has created for the first time in
the world a mechanism to recycle used PET bottles collected from the offices and plants of Toyota Motor Corporation
into polyester yarns to be reused as seat covering materials by the company. In an environment in which raw material
prices continue to rise, while optimizing raw material procurement and production locations, we continue to work on
appropriately passing the rising cost on to our product prices. In the traffic facilities business, we are preparing fordevelopment and production systems to quickly respond to the recovery of demand on the back of an increase inpassengers experienced by railway and bus operators by sophisticating designs and functions through collaboration
with Seki Textile Co., Ltd., which was converted into a subsidiary in the previous fiscal year. Furthermore, our efforts
are also focused on market expansion to products other than interior textiles for railway vehicles and buses and on
development in new fields.
In the Functional Materials Segment, the plant reorganization was completed by relocating from China, where
the production base of fabric-coated heating products was located, to Vietnam, thereby making the plant in Vietnam
the main plant of fabric-coated heating products since the previous fiscal year. By diversifying regional risks andbuilding a more optimal supply system, we will promote responses to the uncertain external environment.
Furthermore, by strengthening collaboration with the Technology and Production Headquarters as development
divisions and also by working to accelerate product development and enhance the capability of development andsales, the Company strives to secure order receipts in existing businesses, establish new functional processing
technologies that meet market needs, and promote development and sales through the utilization of new functional
materials.
For the entire Group, we are reconstructing our core system and raising the accuracy of our consolidated
performance management, thus working steadily on building a foundation for business growth. In the previous fiscal
year, we introduced credit/debit and general accounting systems, which form the basis of the financial accounting
system, and a production management system to the Company. Going forward, these will be expanded to the entire-2-Group to realize a more sophisticated management system, reduce maintenance and operating costs, and improve
efficiency through operational improvements.
Having marked the 140th anniversary of the Company’s foundation in 2023, we are working on the Company’s
branding in pursuit of improvement in corporate brand value. In FY2024, the Group promoted the “Shin Mirai Project– 2050 –,” which shows its vision toward 2050, in order to realize sustainable management. As part of the Project,based on the tagline of “Bringing innovation to all kinds of spaces,” the Group developed challenging businessproposals that combine its existing technologies as a manufacturer and new challenges to make presentations on themand otherwise has started to move steadily toward the next stage of growth. The Group will promote its businesses
through integrated operations of group companies while aiming to achieve medium- to long-term corporate valueenhancement by realizing synergies across different businesses.

-3-Under these circumstances, our consolidated financial results for the fiscal year are as follows.
Net sales recorded robust growth of 9.1% on a year-onyear basis to 103,478 million yen owing to the steady recovery
in demand for interior products for railways and buses, which
had fallen due to the COVID-19 pandemic, and exchange rates
also contributed in the Automotive Textiles and Traffic
Facilities Segment. As a profit, due to the increase sales andprogress in optimizing production systems and improving
profitability in line with business restructuring at North andCentral American bases, operating income of 154.9% on a yearon- year basis to 3,300 million yen and ordinary income of
132.9% on a year-on-year basis to 3,668 million yen wererecorded. Although the Company has recognized in
extraordinary losses of a provision for loss on sales of shares ofsubsidiaries and associates arising from share transfer of anentity accounted for using the equity method, and profit
attributable to owners of parent increased by 172.9% year on
year to 874 million yen.

The performance by segment is as described below.
Net sales
Segments

Amount(Million yen)Interior Fittings
Automotive Textiles andTraffic Facilities
Functional Materials
Other
Total
Adjustment
Consolidated

Segment income (loss)
YY Change(%)

Amount(Million yen)

YY Change(%)

37,142

＋1.5

946

(3.2)

62,800

＋15.6

4,427

＋98.5

3,127

(11.9)

(66)

－

407

＋11.5

76

+25.6

103,478

+9.1

5,383

＋60.2

－

－

(2,083)－

103,478

＋9.1

3,300

+154.9-4-

(Interior Fittings Segment)
Net sales increased by 1.5% year-on-year to 37,142
million yen due to increased number of deliveriescommercial carpets sold and as the space design business,
which designs entire “spaces,” also remained strong.
Segment income decreased by 3.2% year-on-year to 946
million yen due to lower sales of household carpets and theimpact of the surge in raw material prices caused by the
rapid depreciation of the yen.
In commercial carpets, ECOS® sold by SUMINOE
Co., Ltd., eco-friendly carpet tiles under the horizontal
recycling system, increased number of deliveries due to theevaluation of environmental performance, and the salevolume of roll carpet to hotels and high-end brand shops
also increased owing to our accumulated technical strengthand credibility. As a result, net sales of commercial carpets
as a whole grew by 2.7 % year on year.
In household carpets, we promoted the effective useof various digital sites centered on the company's interior
shopping site "cucan". However, the market continued tostagnate due to changes in consumption behavior caused byincreased out-of-home consumption. As a result, net sales ofhousehold carpets as a whole were down 14.9% year on
year.
In curtains, sales of Face Vol. 20.1, curtains for
medical, welfare and educational institutions, grew mainly
due to an increasing number of deliveries to hospitals andother customers although sales of curtains for generalhouseholds failed to achieve growth. As a result, net sales ofcurtains as a whole were down 0.7% year on year.
In wall coverings, sales of a catalogue of fusuma
paper, Sansui Vol. 25, launched by RUNON CO., LTD.
showed steady growth and price revisions to cover soaring
raw material prices have been successful. As a result, net
sales of wall coverings as a whole were up 2.2% year-onyear.
In the space design business, orders for store interiors
and interior options for high-rise apartment buildings
increased. As a result, net sales increased by 9.4% year on
year.

-5-

(Automotive Textiles and Traffic Facilities Segment)
Automotive-related sales have been steady due tothe increase in production volume of Japanese automakers
in Japan and abroad, and we steadily responded torecovering demand for interior products for railways andbuses. The resulted in an increase in net sales of 15.6%
year on year to 62,800 million yen. In addition to theincreased sales, successful business restructuring at North
and Central American bases has led to their return toprofitability. As a result, segment income increased by
98.5% year on year to 4,427 million yen.
In automotive textiles business, domestic sales
increased by 12.9% year on year thanks to a recovery inproduction from the end of the supply shortage ofsemiconductors and components. Moreover, progress in
optimizing production systems and improving
profitability in line with business restructuring at North
and Central American bases and while Japanese
automakers are struggling in response to the expansion of
EV demand in China, sales for assembling production offinished vehicles in Japan remained strong at the Group’s
Chinese bases. In addition, while automobile sales inSoutheast Asia were sluggish, our Group’s bases havecontributed to sales of car mats and the decorative fabricbusiness, which focus on our unique narrow woven fabricproduct GRACE CORD®, etc., as well as the effect offoreign exchange rates. As a result, overseas sales
increased by 15.8% year-on-year.
In the traffic facilities business, net sales forrailways exceeded those for the previous fiscal year due toan increase in the number of public transport users,
reflecting continued growing inbound demand or more
opportunities to go out, and recovering railway renewal
works. Moreover, our interior products for buses
performed well as we steadily captured demand for suchproducts for sightseeing buses, which has shown signs ofrecovery, following fixed-route buses, whose demand had
started to recover earlier. As a result, net sales in the
traffic facilities business as a whole exceeded the results
for the previous fiscal year.

-6-

.

(Functional Materials Segment)
In fabric-coated heating products such as electriccarpets, one of our core products, sales were lower than in
the previous fiscal year, due to a decrease in the numberof new orders, affected by the sluggish market. In
deodorizing filters, although new adoption of deodorizing
filters for sensor-activated garbage cans contributed tosales, deodorizing filters for air purifiers continued tostagnate due to a reactionary fall in demand following the
COVID-19 pandemic. As a result, net sales of deodorizing
filters as a whole fell short of the results for the previous
fiscal year. In floor materials for bathrooms, the numberof new orders decreased due to changes in consumption
trends caused due to increased opportunities to go out. As
a result, net sales of floor materials for bathrooms as awhole declined the results for the previous fiscal year.
Therefore, net sales in the Functional Materials Segment
as a whole decreased by 11.9% year-on-year to 3,127
million yen and segment loss was 66 million yen(segment income of 90 million yen in the previous fiscal
year).

-7-

(2) Overview of financial position for the fiscal year under review
Total assets at the end of the current fiscal year amounted to 92,199 million yen, up 4,048 million yen from theend of the previous fiscal year, due to an increase in property, plant and equipment.
Liabilities grew to 54,511 million yen, up 473 million yen, due to an increase in notes and accounts payable trade.
Net assets grew to 37,687 million yen, up 3,574 million yen, due to an increase in retained earnings.

(3) Overview of cash flows for the fiscal year under review
Cash and cash equivalents at the end of the consolidated fiscal year amounted to 8,153 million yen, up 1,223
million yen from the end of the previous fiscal year. A summary of the cash flow situation is provided as follows:(Cash flows from operating activities)
Net cash provided by operating activities amounted to 7,450 million yen (1,803 million yen provided in theprevious fiscal year) due to an increase in profit before income taxes and notes and accounts payable - trade.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 2,323 million yen (2,834 million yen used in the previous
fiscal year) due to purchase of property, plant and equipment.
(Cash flows from financing activities)
Net cash used in financing activities amounted to 4,204 million yen (52 million yen used in the previous fiscal
year) due to repayments of borrowings, despite proceeds from sale of treasury shares.
(Reference) Changes in cash flow indicators
FY2020Shareholders’ equity ratio (%)
Shareholders’ equity ratio on
market value basis (%)
Ratio of cash flows to interest
bearing debts (year)
Interest coverage ratio (times)

FY2021

FY2022

FY2023

FY2024

32.5

33.5

33.4

32.7

34.7

14.1

14.3

12.5

15.8

18.3

3.8

4.9

55.4

12.8

2.7

21.4

18.3

1.7

4.2

28.5

(Notes) Shareholders’ equity ratio: Shareholders’ equity / Total assets
Shareholders’ equity ratio on market value basis: Market capitalization / Total assets
Ratio of cash flows to interest bearing debts: Interest-bearing debts / Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities / Interest payment
1. Each indicator is calculated using consolidated financial figures.
2. Market capitalization is calculated using the following formula: Fiscal year-end share price × Fiscal year-end numberof outstanding shares (excluding treasury shares)
3. Operating cash flow represents net cash provided by (used in) operating activities in the consolidated statements ofcash flows. Interest-bearing debts refer to all liabilities with an obligation to pay interest stated in the consolidatedbalance sheet. Interest payment represents interest expenses paid stated in the consolidated statements of cash flows.

-8-(4) Forecast of financial results for FY2025
In June 2024, the Group commenced Step II, which is the latter half of “SUMINOE GROUP WAY 2022-20242027,” to continue for three years. Together with newly established divisional missions, the Group will take various
measures designed to reinforce its true strengths in order to realize the Group philosophy and achieve sustainablegrowth.
In the fiscal year ending May 31 2025, the first year of STEP II, the Japanese economy is lacking strength asincome growth cannot currently keep pace with ongoing rise in prices although demand from inbound tourists continues
to increase and personal consumption continues to recover. We expect that the economic outlook will remain uncertain
due to concerns about the impact of the unstable world situation, continuation of monetary tightening by Westerncountries, and slowdown of the Chinese economy.
Under these circumstances, in the Interior Fittings Segment, the Company will continue to work to expand thesales of eco-friendly products focusing mainly on ECOS® while aiming to raise awareness of the SUMINOE brand byenhancing the lineup of value-added products corresponding to the middle- to high-end product range. We will also focus
on developing new sales channels, using products for nursing care, disaster risk prevention, pets, etc., which leverage ourcore technologies, while making proposals unique to our Group. In the Automotive Textiles and Traffic Facilities
Segment, at the artificial leather manufacturing plant opened in Mexico in December 2023, the Company will ensurestable production of high-quality products in the automotive textile business that meet customer needs. In addition, we
will work to further strengthen our North and Central American bases mainly through the expansion of sales channels not
only to Japanese automakers but also to overseas automakers. We will also strive as before to expand sales of ecofriendly products such as ECONIX, a seat surface material that utilizes SUMITRON®, recycled polyester fiber, as well as
decorative materials, and will aim to increase orders for fabrics globally. In the traffic facilities business, the Company
will maintain and improve its development and production systems through concerted efforts by manufacturing and sales
divisions, thereby enhancing the design and functionality of its products and capturing demand from railway and bus
operators in line with an increase in their service users. In the Functional Materials Segment, we will focus on developing
and receiving orders for all-year-round products and small-sized household appliances in regard to fabric-coated heatingproducts while working to improve profitability by strengthening coordination with other businesses, including theeffective utilization of human resources and facilities of our bases in Vietnam. We will also promote proposal-based
development and marketing in order to introduce the Group’s unique products and technologies to new industries.
We plan to post net sales of 1,053 million yen, operating income of 33 million yen, ordinary income of 34
million yen, and profit attributable to owners of parent of 15 million yen for the fiscal year ending May 31, 2025.

2. Basic policy regarding selection of accounting standards
Considering the comparability of consolidated financial statements among fiscal years and companies, the
SUMINOE GROUP plans to prepare its consolidated financial statements in accordance with Japanese GAAP for thetime being. Regarding the adoption of International Financial Reporting Standards (IFRS) in the future, we plan todecide the timing for introducing IFRS appropriately, taking into account the situation in Japan and overseas.

-9-

3. Consolidated financial statements and major notes(1) Consolidated balance sheet(Unit: million yen)
FY2023(As of May 31, 2023)

FY2024(As of May 31, 2024)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims operating
Securities

7,079

8,303

15,814

15,665

7,385

7,764

63

72

Merchandise and finished goods
Work in process

9,583
2,023

9,657
2,362

Raw materials and supplies

4,316

4,312

Income taxes receivable

120

101

Other
Allowance for doubtful accounts

2,521
(28)

2,780
(69)

Total current assets

48,88050,949

8,206
2,863

8,165
3,685

16,6401,170

15,652
1,360

285
809

1,386
663

29,97630,914Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 10 -

5

4

1,650

1,506

1,656

1,510

4,904
6
1,663
1,216
(152)

6,396
3
1,304
1,262
(142)

7,638

8,824

39,271

41,24988,151

92,199(Unit: million yen)
FY2023(As of May 31, 2023)

FY2024(As of May 31, 2024)

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

10,237
7,596

11,519
8,200

Short-term loans payable

12,841

8,249

686
493

800
812

－

903

Lease obligations
Income taxes payable
Provision for loss on sales of shares of subsidiaries
and associates
Other

4,153

4,993

Total current liabilities

36,00835,479Bonds payable
Long-term loans payable

1,000
7,438

1,000
8,840

Lease obligations

1,205

1,214

311

313

Deferred tax liabilities for land revaluation
Provision for directors’ retirement benefit

3,375
96

3,093
90

Net defined benefit liability
Other

4,111
489

3,956
521

Total non-current liabilities

18,02919,031

Non-current liabilities

Deferred tax liabilities

Total liabilities

54,03754,511

Net assets
Shareholders’ equity
Capital stock

9,554

9,554

Capital surplus
Retained earnings

2,611
11,207

2,388
12,198Treasury shares(3,913)(2,709)Total shareholders’ equity

19,45821,431

1,143

1,750

27
6,922
1,362
(52)

(1)
6,283
2,605
(30)

9,403

10,607

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests

5,251

5,649

Total net assets

34,11337,687

88,151

92,199Total liabilities and net assets- 11 -

(2) Consolidated statement of income and comprehensive income
Consolidated statement of income(Unit: million yen)
FY2023(June 1, 2022 to May 31, 2023)

FY2024(June 1, 2023 to May 31, 2024)

Net sales

94,828103,478

Cost of sales

75,39981,202Gross profit

19,42822,275

Selling, general and administrative expenses

18,133

18,975

Operating income

1,294

3,300

Non-operating income
Interest income

35

33

Dividend income

113

117

Foreign exchange gains

265

290

Real estate rent
Other

269
226

341
320

Total non-operating income

911

1,103

431

269

18

261

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodRent expenses on real estates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities

33

52

147

152

631

735

1,575

3,668

30

28

230

128

Insurance claim income with disaster―

56

Total extraordinary income

260

213

44
342
―

110
84
34

―

903

Extraordinary loss
Loss on sales and retirement of non-current assets
Impairment loss
Loss on disaster
Provision for loss on sales of shares of subsidiaries andassociates
Total extraordinary loss

386

1,132

Profit before income taxes

1,449

2,749

Income taxes - current
Income taxes - deferred

858
(196)

1,365
(196)

Total income taxes

662

1,168

Profit787

1,580

Profit attributable to non-controlling interests

466

706

Profit attributable to owners of parent

320

874

- 12 -

Consolidated statements of comprehensive income(Unit: million yen)
FY2023(June 1, 2022 to May 31, 2023)

FY2024(June 1, 2023 to May 31, 2024)

787

1,580

ProfitOther comprehensive income
Valuation difference on available-for-sale securities

598

607

Deferred gains or losses on hedges

(32)

(29)

Foreign currency translation adjustment

247

1,407

Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

51

21

0

0

865

2,007

1,653

3,588

1,146

2,717

506

870

Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests- 13 -

(3) Consolidated statements of changes in shareholders’ equity
FY2023 (June 1, 2022 to May 31, 2023)(Unit: million yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at the beginning of
the period
Cumulative effects ofchanges in accounting
policies
Restated balance

9,554

2,626

Retainedearnings

Treasuryshares

11,480Total
shareholders’equity(3,949)19,711

(150)
9,554

2,626

(150)

11,330(3,949)19,560Changes of items during
the period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposition of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end of theperiod

(443)

(443)

320

320

(15)

(0)

(0)

37

22

－

(15)

(123)

36

(101)

9,554

2,611

11,207(3,913)

19,458

Accumulated other comprehensive income
Valuation
Deferred gains Revaluationdifference onor losses onreserve foravailable-forhedges
landsale securities
Balance at the beginning of
the period
Cumulative effects ofchanges in accounting
policies
Restated balance

545

58

Foreigncurrencytranslation
adjustment

6,922

1,170

Total
Reaccumulated
measurements
otherof definedcomprehensive
benefit plansincome
(104)

8,593

Noncontrollinginterests

Total net assets

5,144

33,448
(150)

545

58

6,922

1,170

(104)

8,593

5,144

33,298Changes of items during
the period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposition of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end of theperiod

(443)
320
(0)
22
598

(31)

－

191

51

809

106

916

598

(31)

－

191

51

809

106

814

1,143

27

6,922

1,362

(52)

9,403

5,251

34,113- 14 -

FY2024 (June 1, 2023 to May 31, 2024)(Unit: million yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at the beginning of
the period
Changes of items during theperiod

9,554

2,611

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposition of treasury
shares
Reversal of revaluation
reserve for land
Transfer to capitalsurplus from retained
earnings
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end of theperiodRetainedearnings

Treasuryshares

11,207

Total
shareholders’equity(3,913)

19,458

(363)

(363)

874

874

(381)

(1)

(1)

1,205

824

638

638

158

(158)

－

－

(222)

991

1,204

1,972

9,554

2,388

12,198(2,709)21,431

Accumulated other comprehensive income
Valuation
Deferred gains Revaluationdifference onor losses onreserve foravailable-forhedges
landsale securities
Balance at the beginning of
the period
Changes of items during theperiod1,14327Foreigncurrencytranslation
adjustment

6,922

1,362

Total
Reaccumulated
measurements
otherof definedcomprehensive
benefit plansincome(52)

9,403

Noncontrollinginterests

Total net assets

5,251

34,113

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposition of treasury
shares
Reversal of revaluation
reserve for land
Transfer to capitalsurplus from retained
earnings
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end of theperiod

(363)
874
(1)
824
638
－

607

(28)

(638)

1,242

21

1,204

398

1,602

607

(28)

(638)

1,242

21

1,204

398

3,574

1,750

(1)

6,283

2,605

(30)

10,607

5,649

37,687- 15 -

(4) Consolidated statement of cash flows(Unit: million yen)
FY2023(June 1, 2022 to May 31, 2023)

FY2024(June 1, 2023 to May 31, 2024)

Cash flows from operating activities
Profit before income taxes

1,449

2,749

Depreciation

2,229

2,257

Impairment loss
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for loss on the sale ofshares of subsidiaries and associates
Increase (decrease) in allowance for doubtful accounts

342
(23)

84
(129)

(41)

(5)

－

903

(63)

29

Interest and dividend income

(148)

(151)

Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Share issuance costs
Loss (gain) on sales and retirement of non-current
assetsLoss (gain) on sales of investment securities
Insurance claim income with disaster

431

269

18

261

－

10

13

82

(230)
－

(128)
(56)

－

34

2,743

550

199

290

836

1,101

583

(154)

85

9

(483)
555

13
450

Loss on disaster
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in accrued consumption taxes
payableDecrease (increase) in other current assets
Increase (decrease) in other current liabilities
Other

78

92

Subtotal

3,089

8,562

Interest and dividend income received
Interest expenses paid
Insurance claim income with disaster received
Loss on disaster paid
Income taxes paid
Income taxes refund

148
(433)

(1,035)
34

156
(261)
56
(27)
(1,079)43

Net cash provided by (used in) operating activities

1,803

7,450

－
－

- 16 -

(Unit: million yen)
FY2023(June 1, 2022 to May 31, 2023)

FY2024(June 1, 2023 to May 31, 2024)

Payments into time deposits

(300)

(300)

Proceeds from withdrawal of time deposits
Purchase of securities

330
(14)

300
(9)

Cash flows from investing activities

Proceeds from sales and redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Proceeds from earnest related sales of property, plantand equipment
Payments for retirement of property, plant andequipment
Payments for asset retirement obligations

19

12(2,912)68(2,974)
2,091

205

－

(26)

(397)

(1)

(1)

Purchase of intangible assets

(99)

(300)

Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Purchase of shares of subsidiaries and associates
Proceeds from shares of subsidiaries resulting inchange in scope of consolidation
Payments of loans receivableCollection of loans receivable

(20)

(14)

340

366

－

(1,100)

26

－

(1)
4

(0)
3

Payments for acquisition of businesses
Other

(452)
(0)

－
0

(2,834)(2,323)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable

166(5,392)

Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations

4,500(3,134)
(740)

4,826
(2,821)(750)

Purchase of treasury shares
Proceeds from sales of treasury shares

(0)

(1)
782

－
－
(445)
(398)

3
(361)
(490)

(52)

(4,204)42300(1,040)1,223

Cash and cash equivalents at beginning of period

7,970

6,929

Cash and cash equivalents at end of period

6,929

8,153

Proceeds from issuance of share acquisition rights
Cash dividends paid
Cash dividends paid to non-controlling interests
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- 17 -

(5) Major notes on consolidated financial statements(Notes on assumption of going concern)
Not applicable.

(Changes in accounting estimates)(Change in the number of years for expense recognition of actuarial gains and losses in the accounting for retirement benefits)
In the past, the Company recognized actuarial gains and losses in expenses over a period of 10 years, as a certain period
within the average remaining service period of employees, in the accounting for retirement benefits. However, as the averageremaining service period has fallen below 10 years, the Company has changed the number of years for expense recognition in
FY2024 to recognize such expenses over a period of 9 years from now on.
This change has an immaterial impact on operating income, ordinary income, and income before income taxes for FY2024.
(Additional information)(Transfer of shares of an entity accounted for using equity method)
The Board of Directors of the Company, at its meeting held on June 28, 2024, has resolved to sell all shares currently held by
the Company of Sumisho Airbag Systems Co., Ltd., an entity accounted for using the equity method of the Company, to SC Airbag
Holdings Co., Ltd. For the details of the transaction, please refer to the “Notice of Change in an Entity Accounted for Using theEquity Method (Share Transfer), Recognition of an Extraordinary Loss, and Revision of Financial Results Forecast” (Only available
in Japanese) released on June 28, 2024.

(Segment information, etc.)(Segment information)
1. Outline of reportable segment information
The Company’s reportable segments are components of an entity for which separate financial information is available andevaluated regularly by the Board of Directors in determining the allocation of management resources and in assessing
performance.
The Company has business divisions and subsidiaries by the type of product and service. Each division and subsidiarydraws up a comprehensive strategy for their products and services at home and aboard and conducts business activities.
Accordingly, our Group consists of segments divided by the type of product and service on the basis of businessdivisions. It has the following three reportable segments: Interior Fittings Segment, Automotive Textiles and Traffic Facilities
Segment, and Functional Materials Segment.
The Interior Fittings Segment manufactures, sells, and installs carpets, curtains, wallpaper, various flooring materials, etc.
It also designs, constructs, and supervises construction of spaces. The Automotive Textiles and Traffic Facilities Segment
engages in the manufacture and sales of interior materials for automobiles, buses, and railway vehicles. The Functional Materials
Segment engages in the manufacture and sales of electric carpets, deodorizing related products, and interior materials for
airplanes.
2. Method to calculate net sales, income or loss, assets, liabilities, and other items by reportable segment
The accounting treatment methods applied to the Group’s reported business segments largely correspond to thedescription in “Significant Accounting Policies for the Preparation of Consolidated Financial Statements” disclosed in our latest
Securities Report (submitted on August 30, 2023).
Segment income is based on operating income.
Inter-segment sales and transfers are based on current market prices.

- 18 -

3. Information on net sales, income or loss, assets, liabilities, and other items by reportable segment
FY2023 (June 1, 2022 to May 31, 2023)(Unit: million yen)
Reportable Segments
Interior
Fittings

Automotive
Textiles and Functional
Traffic
Materials
Facilities

Total

Other
(Note 1)

Total

Figures in
consolidated
Adjustment
financial(Note 2)statements(Note 3)

Net sales
Net sales to outside
customers
Inter-segment sales
and transfers
Total

36,59854,3143,550

94,463365

94,828－94,828

672

27

0

700

136

836

(836)

－

37,27054,341

3,551

95,163501

95,665(836)

94,828Segment income

977

2,230

90

3,299

60

3,359

(2,064)

1,294

Segment assets

28,88839,0993,671

71,660357

72,018

16,132

88,151

Other
Depreciation and
341
1,599
132
2,074
19
2,093
135
2,229
amortization
Investments in equity
64
64
64
64
－
－
－
－
method affiliates
Increase in property,
plant, and equipment,
1,901
220
2,426
36
2,463
(21)
2,441
304
and intangible assets(Note) 1. Other represents businesses that are not included in reportable segments, such as the physical property and performance
inspection businesses.
2. Adjustments are as follows:(1) Adjustment of (2,064) million yen in segment income includes eliminations among segments of 37 million yen andcorporate expenses unallocated to relevant reportable segments of (2,102) million yen. Unallocated corporate expenses
mainly consist of expenses for the Administrative division and R&D division that do not belong to any reportablesegment.
(2) Adjustment of 16,132 million yen in segment assets includes eliminations among segments of (220) million yen andcorporate assets unallocated to relevant reportable segments of 16,353 million yen. Unallocated corporate assets
mainly consist of investment of surplus funds by parent company (cash and deposits), long-term invested funds(investment securities), and assets related to the Administrative division that do not belong to any reportable segment.
3. Segment income is adjusted with operating income in the consolidated statement of income.

- 19 -

FY2024 (June 1, 2023 to May 31, 2024)(Unit: million yen)
Reportable Segments
Interior
Fittings

Automotive
Textiles and Functional
Traffic
Materials
Facilities

Total

Other
(Note 1)

Total

Figures in
consolidated
Adjustment
financial(Note 2)statements(Note 3)

Net sales
Net sales to outside
customers
Inter-segment sales
and transfers
Total
Segment income (loss)
Segment assets

37,14262,8003,127

103,070407

103,478－

103,478

771

8

73

853

137

990

(990)

－

37,91362,8093,201

103,923544

104,468(990)

103,478

946

4,427

(66)

5,307

76

5,383

(2,083)3,300

28,42943,087

3,465

74,981

93

75,074

17,124

92,199

Other
Depreciation and
357
1,565
147
2,070
26
2,096
160
2,257
amortization
Investments in equity
903
903
903
903
－
－
－
－
method affiliates
Increase in property,
plant, and equipment,
3,060
53
3,389
23
3,413
461
3,875
275
and intangible assets(Note) 1. Other represents businesses that are not included in reportable segments, such as the physical property and performance
inspection businesses.
2. Adjustments are as follows:(1) Adjustment of (2,083) million yen in segment income (loss) includes eliminations among segments of 40 million yen
and corporate expenses unallocated to relevant reportable segments of (2,123) million yen. Unallocated corporate
expenses mainly consist of expenses for the Administrative division and R&D division that do not belong to any
reportable segment.
(2) Adjustment of 17,124 million yen in segment assets includes eliminations among segments of (129) million yen andcorporate assets unallocated to relevant reportable segments of 17,253 million yen. Unallocated corporate assets
mainly consist of investment of surplus funds by parent company (cash and deposits), long-term invested funds(investment securities), and assets related to the Administrative division that do not belong to any reportable segment.
3. Segment income (loss) is adjusted with operating income in the consolidated statement of income.

- 20 -

(Relevant information)
FY2023 (June 1, 2022 to May 31, 2023)
1. Information by product and service
The disclosure of information by product and service was omitted, since similar information was disclosed in segment
information.
2. Information by region(1) Net sales(Unit: million yen)
North and Central
AmericaJapan
63,462

Asia

14,747

Other
16,469Total
148

94,828(Note) 1. Net sales are classified into the countries or regions based on the geographical location of customers.
2. Sales to the North and Central America region include sales of 11,033 million yen in the United States, which
accounts for more than 10% of the net sales reported on the consolidated income statements.
(2) Property, plant, and equipment(Unit: million yen)
North and Central
AmericaJapan
24,732

Asia

3,677

Total
1,566

29,976

3. Information by major customer
The disclosure of information by major customer is omitted, since no sales to a specific outside customer exceeded 10% of
the net sales reported on the consolidated income statements.
FY2024 (June 1, 2023 to May 31, 2024)
1. Information by product and service
The disclosure of information by product and service was omitted, since similar information was disclosed in segment
information.
2. Information by region(1) Net sales(Unit: million yen)
North and Central
AmericaJapan
68,577

Asia

21,047

Other
13,797

Total
55

103,478(Note) 1. Net sales are classified into the countries or regions based on the geographical location of customers.
2. Sales to the North and Central America region include sales of 12,561 million yen in the United States, which
accounts for more than 10% of the net sales reported on the consolidated income statements.
(2) Property, plant, and equipment(Unit: million yen)
North and Central
AmericaJapan
23,626

Asia

5,737

Total
1,549

30,914

3. Information by major customer
The disclosure of information by major customer is omitted, since no sales to a specific outside customer exceeded 10% of
the net sales reported on the consolidated income statements.

- 21 -(Impairment loss on non-current assets by reportable segment)
FY2023 (June 1, 2022 to May 31, 2023)(Unit: million yen)Interior
Fittings
Impairment loss

180

Reportable Segments
Automotive
Textiles and Functional
Traffic
Materials
Facilities－

161

Eliminationor corporate

Other

Total

－

342

－

Total

342

FY2024 (June 1, 2023 to May 31, 2024)(Unit: million yen)Interior
Fittings
Impairment loss－

Reportable Segments
Automotive
Textiles and Functional
Materials
Traffic
Facilities－84- 22 -

Eliminationor corporate

Other

Total
84

－

－

Total

84

(Per share information)
FY2023(June 1, 2022 to May 31, 2023)

FY2024(June 1, 2023 to May 31, 2024)

Net assets per share

4,549.75 yen

4,742.69 yen

Profit per share, basic

50.55 yen132.22 yen(Note) 1. Profit per share diluted is not stated, since there is no potential common share.
2. The bases to calculate net assets per share are as follows:
FY2023(As of May 31, 2023)

FY2024(As of May 31, 2024)

Total net assets (million yen)

34,11337,687

Net assets related to common shares (million yen)

28,861

32,038Main differences (million yen)
Non-controlling interests

5,251

5,649

Number of common shares issued (1,000 shares)

7,682

7,682

Number of common shares of treasury shares (1,000 shares)

1,338

926

Number of common shares used to calculate net assets per
share (1,000 shares)

6,343

6,755

3. The bases to calculate profit per share are as follows:
FY2023(June 1, 2022 to
May 31, 2023)

FY2024(June 1, 2023 to
May 31, 2024)

Profit attributable to owners of parent (million yen)

320

874

Profit not attributable to common shareholders (million
yen)

－

－

Profit attributable to owners of parent concerning commonshares (million yen)

320

874

6,339

6,613

Average number of common shares during the period(1,000 shares)(Significant subsequent events)
Not applicable.

- 23 -