Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the Three Months Ended June 30, 2024
[JGAAP]
August 9, 2024
Company name:
Onoken Co., Ltd.
Listing:
Tokyo Stock Exchange, Fukuoka Stock Exchange
Securities code:
7414
URL:
http://www.onoken.co.jp/
Representative:
Ken Ono, President
Inquiries:
Tetsuji Ono, Executive Managing Director, Management Control Division
Telephone:+81-93-561-0036
Scheduled date to commence dividend payments:
Preparation of supplementary materials on financial results:
Yes
Holding of financial results briefing:
None(Amounts of less than ¥1 million are rounded)
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)
Net sales

Operating profit

Profit attributable to owners ofparentOrdinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

71,497

2.5

2,176

(1.6)

2,274

(1.7)

1,507

(1.5)

69,723

12.8

2,212

(24.1)

2,314(21.8)

1,530(21.3)

Three months ended June30, 2024
Three months ended June30, 2023
Note: Comprehensive income(Percentages indicate year-on-year changes.)

For the three months ended June 30, 2024

¥1,576 million [(8.2%)]

For the three months ended June 30, 2023

¥1,717 million [(15.4%)]

Basic earnings per share

Three months ended June30, 2024
Three months ended June30, 2023

Diluted earnings per share

Yen

Yen

59.04

58.48

61.21

59.45

Note: In the fiscal year ended March 31, 2024, a provisional accounting process regarding business combinations was finalized andeach figure related to the first quarter of the fiscal year ended June 30, 2023, where provisional figures were used, has beenadjusted to reflect the contents of the change.
(2)

Consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

As of June 30, 2024

223,325

96,48342.8

As of March 31, 2024

208,502

95,55045.4

Reference: Equity
As of June 30, 2024
As of March 31, 2024

95,643 million yen
94,732 million yen

2.

Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

-

36.00

-

33.00

69.00

34.00

-

35.00

69.00

Fiscal year ended March 31,
2024
Fiscal year ended March 31,
2025
Fiscal year ending March
31, 2025 (forecast)-

Note: Revisions to the most recently announced dividend forecast : None3.

Consolidated financial forecasts for FY2024 (April 1, 2024, to March 31, 2025)(Percentages indicate year-on-year changes for the full year and quarterly increase/decrease for each quarter.)
Net salesFirst half (cumulative)
Full-year

Millions ofyen
147,100
302,000

Operating profit
%
4.8
7.1

Millions of
yen
4,100
8,500

Ordinary profit
%

(2.9)
3.4

Millions of
yen
4,200
8,600

%
(3.4)
3.1

Profit attributable toowners of parent
Millions of
%
yen
2,800
(5.7)
5,800
0.7

Net income per shareYen
109.85227.55

Note: Revisions to the most recently announced financial results forecast: None

*

Notes
(1) Material changes in the scope of consolidation during the period: None(2)

Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
Note: For details, see “(3) Notes to Quarterly Consolidated Financial Statements (Notes on accounting treatment specific to
the preparation of quarterly consolidated financial statements)” in “2. Quarterly Consolidated Financial Statements andSignificant Notes Thereto” on page 7 of the Attachment.

(3)

Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to reasons other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: NoneNote: For details, see “(3) Notes to Quarterly Consolidated Financial Statements (Notes on changes in accounting policies”
in “2. Quarterly Consolidated Financial Statements and Significant Notes Thereto” on page 7 of the Attachment.
(4)

Number of issued shares (common shares)(i)

Total number of issued stocks at the end of the period (including treasury shares)

(ii)

(iii)

As of June 30, 2024

25,866,355 shares

As of March 31, 2024

25,715,186 shares

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

227,346 shares

As of March 31, 2024

227,346 shares

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

25,525,632 shares

Three months ended June 30, 2023

25,003,128 shares*

Review by certified public accountants or an audit corporation of the attached consolidated quarterly financial statements: Yes(discretional)*

Proper use of earnings forecasts, and other special matters
Forward-looking statements such as earnings forecasts contained in this material are based on information available to the Company,as well as certain assumptions that the Company judges to be reasonable, and are not intended to be a promise that the Company
will achieve them. Furthermore, actual results may differ significantly depending on various factors. For conditions underlying thefinancial results forecast and cautions concerning the use of the financial results forecast, please see “(3) Explanation ofConsolidated Financial Results Forecast and Other Forward-Looking Information” in “1. Overview of Operating Results, etc.” onpage 2 of the Attachment.

Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024

○ Table of Contents of Attachment
1. Overview of Operating Results, etc. ............................................................................................................................................2(1)

Overview of operating results for the current period ...........................................................................................................2(2)

Overview of Financial Position for the Current period ........................................................................................................2(3)

Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information....................................3

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto .............................................................................4(1)

Quarterly Consolidated Balance Sheet.................................................................................................................................4(2)

Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ..............6(Quarterly Consolidated Statement of Income)....................................................................................................................6(First three months) .........................................................................................................................................................6(Quarterly Consolidated Statement of Comprehensive Income) ..........................................................................................7(First three months) .........................................................................................................................................................7(3)

Notes to Quarterly Consolidated Financial Statements ........................................................................................................8(Notes on changes in accounting policies) .............................................................................................................................8(Notes on accounting treatment specific to the preparation of quarterly consolidated financial statements) .........................8(Notes on segment information, etc.) .....................................................................................................................................8(Notes If There Are Significant Changes in the Amount of Shareholders' Equity) .............................................................. 10(Notes on assumptions of going concern) ............................................................................................................................ 10(Notes to quarterly consolidated statement of cash flows) ................................................................................................... 10(Significant Subsequent Events) .......................................................................................................................................... 10[Mid-term Review Report]-1-

Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024

1.

Overview of Operating Results, etc.
(1)

Overview of operating results for the current period

Japan’s economy during the three months ended June 30, 2024 remained uncertain with the rise of inflation and depreciation of
the yen in progress due to changes in overseas conditions, such as Russia’s protracted invasion of Ukraine and China’s unstableeconomy.
In the steel and construction materials distribution industry to which the Group belongs, demand rebounded not at a steady paceas demand momentum varied depending on customer sector and region. Although Japanese steel manufacturers remained optimistic,
steel product market conditions were somewhat weak as domestic demand was slow to recover at a time when imported steel
products entered into a downturn due to the sluggish performance of overseas economies such as China. The construction materials
sector was beset with a widening future uncertainty as small- to medium-sized projects suffered rising costs and labor shortages
although large-sized projects were abundant.
In the iron and steel sales business, amid sluggish demand, the Company’s group pursued sales activities in earnest with the aimof growing sales volumes and revenues by: i) ensuring substantial inventories at our business bases; and ii) working to meetcustomer needs through stepping up our delivery platform and processing facilities.
In the steel and building products sales business and the construction contracting business, order intake grew strongly as a resultof the fact that: i) contracted large-sized projects progressed smoothly; and ii) we simultaneously engaged in activities to acquireorders for mainly large-sized new projects.
For the business results, net sales were 71,497 million yen (up 2.5% year-on-year) as the sales volume of the Iron and Steel Sales
business was flat year-on-year amid sluggish demand and the Contract Construction business made steady progress mainly in largescale construction projects. In terms of profit, due to increases in freight charges under selling, general and administrative expenses,
personnel expenses, and expenses for facility expansion, operating profit was 2,176 million yen (down 1.6% year-on-year), ordinary
profit came to 2,274 million yen (down 1.7% year-on-year) and net profit attributable to owners of the parent was 1,507 million
yen (down 1.5% year-on-year).
Results by segment are as follows:(i)

Kyushu and Chugoku region

Net sales increased year-on-year as the number of consolidated subsidiaries in the iron and steel sales business grew and theconstruction materials distribution business and the construction contracting business saw civil engineering products expand andlarge projects progress smoothly. Profit increased from the same period of the previous fiscal year in spite of an increase in selling,
general and administrative expenses. As a result, net sales to external customers amounted to 38,800 million yen (up 7.0% year-onyear), and segment profit was 1,077 million yen (up 4.6% year-on-year).
(ii)

Kansai and Chukyo region
Net sales decreased from the same quarter of the previous fiscal year due to significant unit sales price declines in the iron andsteel sales business despite a slight growth in sales quantity although the construction contracting business saw its net sales increase
as its work projects progressed. Profit decreased from the same period of the previous fiscal year due to an increase in selling,
general and administrative expenses As a result, net sales to external customers amounted to 18,667 million yen (down 1.3% yearon-year), and segment profit was 359 million yen (down 20.1% year-on-year).
(iii) Kanto and Tohoku region
Net sales increased from the same period of the previous fiscal year in the iron and steel sales business as its sales quantity grew.
Overall sales declined from the same period of the previous fiscal year as the contract construction business saw its work projects
fail to progress as much as in the period despite having sizeable order backlogs. Profit increased from the same period of theprevious fiscal year due to greater profitability of the iron and steel sales business despite an increase in selling, general andadministrative expenses. As a result, net sales to external customers amounted to 14,028 million yen (down 3.5% year-on-year),and segment profit was 736 million yen (up 7.1% year-on-year).
(2)

Overview of Financial Position for the Current period(Assets)
Assets grew 14,823 million yen from the end of previous fiscal year to 223,325 million yen. The main factors were increases of-2-

Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024

2,827 million yen in merchandise and finished goods, 1,683 million yen in raw materials and supplies, 2,512 million yen in othercurrent assets, and 13,722 million yen in buildings and structures in spite of a decrease of 7,210 million yen in other property, plantand equipment.
(Liabilities)
Liabilities grew 13,890 million yen from the end of previous fiscal year to 126,842 million yen. The main factors were, despite
an 845 million yen decrease in income taxes payable, an increase of 1,230 million yen in notes and accounts payable - trade, anincrease of 8,355 million yen in short-term borrowings and an increase of 6,386 million yen in long-term borrowings.
(Net assets)
Net assets were up 933 million yen from the end of previous fiscal year to 96,483 million yen. The main factor was an increaseof 665 million yen in retained earnings.
(3)

Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information
There is no change to the financial results forecasts for the first half and the full-year that were announced in the Consolidated

Financial Results dated May 15, 2024.

-3-

Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024

2.

Quarterly Consolidated Financial Statements and Significant Notes Thereto(1)

Quarterly Consolidated Balance Sheet(Millions of yen)
Fiscal year ended March 31,
2024

First quarter of the fiscal year
ending March 31, 2025

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

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Electronically recorded monetary claims operating
Merchandise and finished goods
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Current portion of bonds payable
Income taxes payable
Contract liabilities
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors(and other officers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

-4-

6,692

7,037

58,52458,612

26,58926,491

28,215
3,561
4,828
(137)
128,274

31,042
5,244
7,341
(131)
135,638

21,45534,167
18,574
74,19635,177
34,967
11,36381,508

290
377
667

277
367
645

5,480
(117)
5,363
80,227
208,502

5,624
(91)
5,532
87,686
223,325

31,40022,54228,850
434
370
1,637
686
1,423
6,091
93,43732,63022,24437,205
434
170
789
353
1,749
5,406
100,984

17,11023,497

9

8

1,333
173
886
19,514112,952

1,357
173
821
25,857
126,842

Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024

(Millions of yen)
Fiscal year ended March 31,
2024

First quarter of the fiscal year
ending March 31, 2025

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

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

-5-

6,842
6,809
80,557(309)
93,9006,942
6,904
81,223(309)
94,761

856

892

5
(29)
832
817
95,550208,502

10
(22)
881
839
96,483
223,325

Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(First three months)(Millions of yen)Three months ended June

Three months ended June 30,

30, 2023(From April 1, 2023, to June

2024
(From April 1, 2024, to June30, 2023)

30, 2024)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income from buildings
Settlement income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-6-69,72362,998
6,724
4,512
2,212

71,49764,273
7,223
5,047
2,176

0
24
20
74
120

1
27
22
33
46
131

7
10
18
2,314

25
7
33
2,274

26
26
2,340
774
1,566
35
1,530

0
0
2,274
745
1,529
22
1,507

Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024

(Quarterly Consolidated Statement of Comprehensive Income)(First three months)(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

Three months ended June 30,
2023

Three months ended June 30,
2024(From April 1, 2023, to June30, 2023)
1,566(From April 1, 2024, to June30, 2024)
1,529

107
75
(31)
151
1,717

34
5
7
47
1,576

1,680

1,555

37

20

-7-

Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024

(3)

Notes to Quarterly Consolidated Financial Statements(Notes on changes in accounting policies)(Application of "Accounting Standard for Corporate Tax, Inhabitants Tax, Enterprise Tax, etc.," etc.)
Starting from the beginning of the three months ended June 30, 2024, we began to apply "Accounting Standard for Corporate
Tax, Inhabitants Tax, Enterprise Tax, etc." etc.) (Accounting Standards Board of Japan (ASBJ) Statement No. 27, October 28,
2022, hereinafter referred to as "Revised Accounting Standard for 2022".
With regard to the revision of the accounting classification for income taxes (taxation on other comprehensive income), we
complied with the transitional treatment set forth in the proviso of Paragraph 20-3 of the Revised Accounting Standards of 2022
and the transitional treatment set forth in the proviso of Paragraph 65-2 (2) of the “Guidance on Accounting Standard for Tax
Effect Accounting ” (ASBJ Guidance No. 28, October 28, 2022, hereinafter referred to as the "Revised Application Guidelines2022"). The above-mentioned accounting policy change had no impact on the quarterly consolidated financial statements.
With regard to the revision to treatment in the consolidated financial statements in the case of deferring, for tax purposes, gains
and losses on sales of shares of subsidiaries between consolidated companies, we began to apply the 2022 revision application
guidelines starting from the beginning of the three months ended June 30, 2024. We applied this accounting policy change
retroactively, so the consolidated financial statements for the three months ended June 30, 2023, and the fiscal year ended March
31, 2024, are ones after the retroactive application. The accounting policy change had no impact on the consolidated financial
statements of for the three months ended June 30, 2023, and the fiscal year ended March 31, 2024.
(Notes on accounting treatment specific to the preparation of quarterly consolidated financial statements)(Calculation of Tax Expenses)
Tax expenses are calculated by reasonably estimating the effective tax rate after the application of tax effect accounting withregard to profit before income taxes for the fiscal year that includes the three months ended June 30, 2024, and multiplying thequarterly profit before income taxes by that estimated effective tax rate.
(Notes on segment information, etc.)[Segment information]I
Three months ended June 30, 2023 (from April 1, 2023, to June 30, 2023)
1.

Information concerning the amount of net sales and profit or loss for each reporting segment(Millions of yen)
Kyushu andChugoku

Net sales
Net sales to externalcustomers
Internal net sales ortransfers between segments
Total
Segment profit
2.

Kansai and Chukyo

Kanto and Tohoku

Total

36,26318,921

14,53869,723

242

1,012

300

1,555

36,505
1,030

19,933449

14,839687

71,2782,167

Difference between the Total Profit (Loss) Amount of Reporting Segments and Amount Recorded in Quarterly Consolidated
Financial Statement and Main Contents of the Said Difference(Millions of yen)

ProfitTotal Reporting Segments
Erasure of intersegment business transactions
Amount of adjustment of inventories
Amount of amortization of goodwill
Amount of amortization of customer-related assets
Operating Profit on Quarterly Consolidated Statementof IncomeNote:

Amount
2,167
6
49
(9)
(1)
2,212

In the fiscal year ended March 31, 2024, a provisional accounting process regarding business combinations was finalized-8-

Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024

and each figure related to the the first quarter of the fiscal year ended June 30, 2023, where provisional figures wereused, has been adjusted to reflect the contents of the change.

-9-

Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024

II

Three months ended June 30, 2024 (from April 1, 2024, to June 30, 2024)

1.

Information concerning the amount of net sales and profit or loss for each reporting segment(Millions of yen)
Kyushu andChugoku

Net sales
Net sales to externalcustomers
Internal net sales ortransfers between segments
Total
Segment profit

2.

Kansai and Chukyo

Kanto and Tohoku

Total

38,80018,667

14,02871,497

210

558

10

779

39,011
1,077

19,226359

14,038736

72,2762,173

Difference between the Total Profit (Loss) Amount of Reporting Segments and Amount Recorded in Quarterly Consolidated

Financial Statement and Main Contents of the Said Difference(Millions of yen)
ProfitAmountTotal Reporting Segments
2,173
Erasure of intersegment business transactions
14
Amount of adjustment of inventories
7
Amount of amortization of goodwill(12)
Amount of amortization of customer-related assets(6)
Operating Profit on Quarterly Consolidated Statement
2,176
of Income(Notes If There Are Significant Changes in the Amount of Shareholders' Equity)
Not applicable.
(Notes on assumptions of going concern)
Not applicable.

(Notes to quarterly consolidated statement of cash flows)
No consolidated statement of cash flows for the three months ended June 30, 2024, was prepared. Shown below are depreciation(including amortization of intangible assets other than goodwill and customer-related assets) for the three months ended June 30,
2024, and amortization of goodwill and depreciation of customer-related assets.

Depreciation
Amount of amortization of goodwill
Amount of amortization of customerrelated assets

Three months ended June 30, 2023
(From April 1, 2023, to June 30, 2023)
696 million yen
91

Three months ended June 30, 2024
(From April 1, 2024, to June 30, 2024)
851 million yen
126(Significant Subsequent Events)(Purchase of treasury shares)
At a meeting of the Board of Directors held on August 9, 2024, the Company resolved to repurchase its own shares pursuant
to Article 156 of the Companies Act of Japan, as applied pursuant to Article 165, Paragraph 3 of the Companies Act of Japan.

-10-

Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024

1

Reason for purchase of treasury shares
The planned purchase of treasury shares is aimed to enhance shareholder returns, further step up corporate value throughimproving capital efficiency, and pursue flexible capital policy.

2

Details of acquisition(1)(2)

Class of stock to be purchased
Common stock of the Company
Total number of shares to be purchased 700,000 shares (maximum)(3)(2.73% of the total number of issued stocks (excluding treasury shares))Total value of shares to be purchased 1,000 million yen (maximum)

(4)
(5)

Period of purchase
Method of purchase

From August 13, 2024, to January 31, 2025
Market purchase on the Tokyo Stock Exchange-11-Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024

Quarterly Review Report on the Quarterly Consolidated Financial Statements by an Independent Audit Corporation
August 9, 2024
To the Board of Directors of Onoken Co., Ltd.
Ernst & Young ShinNihon LLC Fukuoka Office
Designated
LimitedLiability Partner
Certified Public
Designated Engagement Accountant
Partner
Designated
LimitedLiability Partner
Certified Public
Designated Engagement Accountant
Partner

Sento Fukumoto

Akira Kotake

OpinionWe have reviewed the quarterly consolidated financial statements, namely, the quarterly consolidated balance sheet, the quarterly
consolidated statement of income, the quarterly consolidated statement of comprehensive income, and the notes thereto of Onoken Co.,
Ltd. for the first three months of the consolidated accounting period from April 1, 2024, to March 31, 2025 (from April 1, 2024, to June30, 2024) and the first three months of the consolidated fiscal year (from April 1, 2024, to June 30, 2024), which are shown in the“Attachment” of the Quarterly Financial Results.
In our opinion, the accompanying quarterly consolidated financial statements present fairly, in all material respects, the consolidated
financial position of Onoken Co., Ltd. in accordance with Article 4, Paragraph 1 of the Standard for Preparation of Quarterly Financial
Statements of Tokyo Stock Exchange, Inc. and accounting standards for quarterly financial statements that are generally accepted inJapan (however, the omission prescribed in Article 4, Paragraph 2 of the Standards for Preparation of Quarterly Financial Statements
was applied).
Basis for opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards
are further described in the Auditor’s Responsibilities for the Audit of the Quarterly Consolidated Financial Statements section of ourreport. We are independent of the Company and its consolidated subsidiaries and fulfilled our ethical responsibilities as auditors inaccordance with the regulations on professional ethics in Japan. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Responsibilities of Management and Audit and Supervisory Committee Members and the Audit and Supervisory Committee for the
Quarterly Consolidated Financial Statements
Management is responsible for preparing quarterly consolidated financial statements in accordance with Article 4, Paragraph 1 of
the Standard for Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. and accounting standards for quarterly
financial statements that are generally accepted in Japan (however, the omission prescribed in Article 4, Paragraph 2 of the Standards
for Preparation of Quarterly Financial Statements was applied). Management is also responsible for developing and operating internal
controls that management deems necessary for preparing quarterly consolidated financial statements free from material misstatement
due to fraud or error.
In preparing quarterly consolidated financial statements, management is responsible for assessing whether it is appropriate to prepare
the quarterly consolidated financial statements based on a going concern assumption, and if being required to disclose any matter related
to the going concern in accordance with Article 4, Paragraph 1 of the Standard for Preparation of Quarterly Financial Statements ofTokyo Stock Exchange, Inc. and accounting standards for quarterly financial statements that are generally accepted in Japan (however,
the omission prescribed in Article 4, Paragraph 2 of the Standards for Preparation of Quarterly Financial Statements was applied),management is responsible for disclosing the information.
The Audit and Supervisory Committee is responsible for monitoring the execution of directors' duties to develop and operate
financial reporting processes.
The auditor’s Responsibilities for the Mid-Term Review of the Quarterly Consolidated Financial Statements
The auditor is responsible for expressing in the mid-term review report an opinion on the quarterly consolidated financial statementsfrom an independent standpoint in accordance with the mid-term review conducted by itself.
In accordance with mid-term review standards generally accepted in Japan, the auditor makes judgment as a professional expert
through the mid-term review process, and conducts the following while keeping professional skepticism.

**

The auditor asks questions mainly to management and persons responsible for financial and accounting matters and takes analyticalprocedures and other mid-term review procedures. A mid-term review procedure is a procedure more limited than an annual financial
statements audit conducted in accordance with auditing standards generally accepted in Japan.
If finding a material uncertainty about any event or situation giving rise to material suspicion concerning a going concern assumption,
the auditor is required to assess to conclude, based on evidence obtained, whether the quarterly consolidated financial statements
have been prepared in accordance with Article 4, Paragraph 1 of the Standard for Preparation of Quarterly Financial Statements ofTokyo Stock Exchange, Inc. and accounting standards for quarterly financial statements that are generally accepted in Japan-12-

Onoken Co., Ltd. (7414) Financial Results for the Three Months Ended June 30, 2024**

(however, the omission prescribed in Article 4, Paragraph 2 of the Standards for Preparation of Quarterly Financial Statements wasapplied) If finding a material uncertainty about a going concern assumption, the auditor is required to draw attention in a mid-term
review report to the notes to the quarterly consolidated financial statements, and if the notes to the quarterly consolidated financial
statements about the material uncertainty are not appropriate, the auditor is required to express a qualified or negative opinion on
the quarterly consolidated financial statements. Although the auditor's opinion is based on evidence obtained up to the date of the
mid-term review report, the company could potentially cease to exist as a going concern due to a future event or circumstance.
The auditor assesses to see if quarterly consolidated financial statements have been prepared in accordance with Article 4, Paragraph
1 of the Standard for Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. and accounting standards forquarterly financial statements that are generally accepted in Japan (however, the omission prescribed in Article 4, Paragraph 2 of
the Standards for Preparation of Quarterly Financial Statements was applied), based on obtained evidence if concluding there issignificant uncertainty about any matter or situation causing material suspicion about a going concern assumption.
The auditor obtains such evidence for the financial information of the Company and its consolidated subsidiaries as forms the basis
for expressing an opinion on the quarterly consolidated financial statements. The auditor is responsible for the direction, supervision,and inspection of the mid-term review of the quarterly consolidated financial statements. The auditor is solely responsible for its
opinion.

The auditor informs the Audit and Supervisory Committee of the scope of the planned mid-term review, the timing of its
implementation, and important findings of the review.
The auditor informs the Audit and Supervisory Committee: i) of the fact that the auditor has complied with professional ethics rules
in Japan regarding independence; ii) of details of any measure taken to remove anything reasonably thought to affect the auditor's
independence and remove impediments and of any safeguard applied in order to reduce impediments to tolerable levels.
Interest
There is no such interest between the Company or its consolidated subsidiaries and the audit corporation or its designatedengagement partners as is required to be stated pursuant to the provisions of the Certified Public Accountants Act.

Note:

1.
2.

The Company (the company disclosing quarterly financial statements) separately keeps the original of the above midterm review report.
XBRL data and HTML data are not covered by the mid-term review.

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