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 Three Months Ended June 30, 2023
(Based on Japanese GAAP)
July 28, 2023
Company name:
ARGO GRAPHICS Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

7595
URL https://corp.argo-graph.co.jp
Chairman and CEO
Yoshimaro Fujisawa

Inquiries:
Senior Managing Director
Scheduled date to file Quarterly Securities Report:

Kunio Hasebe
August 10, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL

03-5641-2018(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Three months ended June 30, 2023
Three months ended June 30, 2022

Millions of yen14,461
14,056Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
2.9
2,227
7.8
2,371
9.4
1,578
10.9
15.0
2,065
18.1
2,167
17.2
1,423
15.5

Earnings per share

Diluted earnings per share

Yen
74.02
66.61

Three months ended June 30, 2023
Three months ended June 30, 2022

Yen–66.61(2) Consolidated financial position
Total assets
As of June 30, 2023
As of March 31, 2023

Net assets

Millions of yen
64,91065,502

Equity ratio

Millions of yen
45,75943,941

Net assets per share
%
67.2
63.8

Yen
2,045.57
1,961.49

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
33.00

Yen–

Yen
40.00

Yen
73.00

40.00

–

40.00

80.00

Year ending March 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
55,200
3.5
7,870
1.2
8,280
1.0
5,520
1.8
258.72

1

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

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

22,354,000 shares As of March 31, 2023

22,354,000 shares

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

1,032,161 shares As of March 31, 2023

1,035,061 shares

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

21,320,706 shares Three months ended June 30, 2022

2

21,370,987 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2023

As of June 30, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

26,887,318
17,352,307

29,465,533
12,997,533

Electronically recorded monetary claims - operating
Investments in leases

1,014,97844,883

1,244,464
34,969Securities
Merchandise

1,200,000
1,954,789–
2,346,021

63,1691,968

77,146
1,403

Other

1,883,504

2,010,648

Total current assets

50,402,919

48,177,720

396,053

401,581Goodwill
Other

448,841
44,948553,21246,583

Total intangible assets

493,790599,795

Investments and other assets
Investment securities

13,261,760

14,790,149

Work in process
Raw materials and suppliesNon-current assets
Property, plant and equipment
Intangible assets

Other

947,730

941,288

14,209,491

15,731,438

15,099,335

16,732,815

65,502,254

64,910,536

10,995,113
1,379,401

8,162,226
476,805

656,554
140,000

415,180
22,500Other

4,310,222

5,384,735

Total current liabilities

17,481,292

14,461,448

3,006,958
320,377

3,054,266
338,609

Provision for share awards for directors (and otherofficers)

98,895

113,359

Other

652,887

1,183,401

Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)

Non-current liabilities
Retirement benefit liability
Provision for share awards

Total non-current liabilities
Total liabilities

3

4,079,118

4,689,637

21,560,410

19,151,085

(Thousands of yen)
As of March 31, 2023

As of June 30, 2023

Net assets
Shareholders' equity
Share capital

1,873,136

1,873,136

Capital surplus
Retained earnings

2,136,715
34,203,323

2,136,715
34,911,261

Treasury shares(925,501)(921,234)

37,287,673

37,999,879

4,322,108
139,335

5,371,349
133,006

67,760111,056

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Foreign currency translation adjustment

4,529,204

5,615,411

Non-controlling interests

Total accumulated other comprehensive income

2,124,965

2,144,159

Total net assets

43,941,843

45,759,450

65,502,254

64,910,536

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Three months ended

Three months ended

June 30, 2022

June 30, 2023

Net sales
Cost of sales

14,056,900
10,521,502

14,461,352
10,712,195

Gross profit

3,535,397

3,749,157

Selling, general and administrative expenses

1,469,857

1,521,819

Operating profit

2,065,540

2,227,338

Interest income
Dividend income

7,048
91,338

10,886
103,304

Foreign exchange gains
Other19,534
8,943

20,236
16,651

Total non-operating income

126,864

151,079

24,957

5,611

298
2989
526

25,259

7,126

Ordinary profit

2,167,145

2,371,290

Profit before income taxes

2,167,145

2,371,290

Income taxes - current

609,900

642,753

Income taxes - deferred

68,53691,878Non-operating income

Non-operating expenses
Share of loss of entities accounted for using equity method
Loss on investments in investment partnerships
Other
Total non-operating expenses

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5678,437

734,6311,488,708

1,636,659

65,16358,523

1,423,544

1,578,136

Consolidated statements of comprehensive income (cumulative)(Thousands of yen)

ProfitOther comprehensive income

Three months ended

Three months ended

June 30, 2022

June 30, 2023

1,488,708

1,636,659

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

580,218
111,036

1,049,241
48,416

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted(1,895)(6,329)13,585

5,176

702,945

1,096,505

Comprehensive income

2,191,653

2,733,164

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,100,266

2,661,505

91,38771,659for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

6