Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2022
(Based on Japanese GAAP)May 13, 2022
Company name:

ARGO GRAPHICS Inc.

Stock exchange listing: Tokyo
Stock code:
7595
Representative:
Inquiries:

URL

https://corp.argo-graph.co.jp

Chairman and CEO
Managing Director, Administration Control

Division
Scheduled date of ordinary general meeting of shareholders:

Yoshimaro Fujisawa
Kunio Hasebe

TEL03-5641-2018

June 23, 2022

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 24, 2022
June 24, 2022

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

NoNo(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating results

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
6.4
6,601
17.1
6,944
15.8
4,517
14.0(9.9)
5,639(10.0)
5,997
(8.6)
3,961
(6.0)

Net salesYear ended March 31, 2022
Year ended March 31, 2021

Millions of yen
46,18843,416

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
211.36
12.5
12.5
14.3
185.49
13.3
11.8
12.9

Diluted earnings pershare

Earnings per shareYen
211.36185.50Year ended March 31, 2022
Year ended March 31, 2021
(2) Consolidated financial position

Total assets
As of March 31, 2022
As of March 31, 2021

Net assets

Equity ratio

Millions of yen
58,83052,585

Millions of yen
39,85936,529Cash flows fromoperating activities
Millions of yen
5,959
2,591

Cash flows frominvesting activities
Millions of yen
(538)
(258)

Net assets per share%
64.3
66.0

Yen
1,769.01
1,624.49(3) Consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(1,366)25,155(1,444)21,064

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

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

30.00
30.00

––

30.00
33.00

60.00
63.00

1,305
1,370

32.329.8

3.5
3.7

–

33.00

–

33.00

66.00

130.3

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Full year

Millions of yen
48,700Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
5.4
6,800
3.0
7,120
2.5
4,660
3.2
218.02

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2022(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

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

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

22,354,000 shares As of March 31, 2021

22,354,000 shares

Number of treasury shares at the end of the period
As of March 31, 2022

983,013 shares As of March 31, 2021

996,754 shares

21,374,509 shares Year ended March 31, 2021

21,356,179 shares

Average number of shares during the period
Year ended March 31, 20222

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets22,149,490
11,033,718

26,210,266
12,641,890

Electronically recorded monetary claims - operating
Investments in leases

721,025
426,885

884,442
162,726

Securities
Merchandise

500,000
736,103–
1,141,106

Work in process
Raw materials and supplies

59,884
2,887

144,758
2,803

Other

2,053,015

2,076,605

Total current assets

37,683,010

43,264,598

141,473

139,884

Accumulated depreciation(61,752)(71,340)

Buildings, net

79,721

68,544Non-current assets
Property, plant and equipment
Buildings

Land

3,926

3,926

580,030(455,645)

605,240(465,038)

124,384

140,201

208,033

212,672

Goodwill
Other

603,952
35,601

468,291
22,894

Total intangible assets

639,554491,186

Investments and other assets
Investment securities

13,233,331

13,915,100

Deferred tax assets
Other

174,704
646,482

344,082
602,586

14,054,518

14,861,769

14,902,105

15,565,628

52,585,115

58,830,227

Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Total investments and other assets
Total non-current assets
Total assets3

(Thousands of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Accounts payable - trade

7,247,578

8,931,924

Income taxes payable
Provision for bonuses

1,024,407
578,005

1,365,031
633,777

Provision for bonuses for directors (and other officers)
Advances received

90,0001,866,539

120,000
2,809,539

Other

1,119,657

1,090,271

Total current liabilities

11,926,188

14,950,543

2,987,839
224,669

2,999,747
251,972

Provision for share awards for directors (and otherofficers)

83,21887,252

Deferred tax liabilities
Other707,066
127,042561,774
119,676

Non-current liabilities
Retirement benefit liability
Provision for share awards

Total non-current liabilities

4,129,836

4,020,423

16,056,025

18,970,966

Shareholders' equity
Share capital

1,873,136

1,873,136

Capital surplus
Retained earnings

2,117,656
27,090,922

2,132,078
30,218,406

Total liabilities
Net assets

Treasury shares(688,143)(699,739)

30,393,571

33,523,882

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans

4,488,856(39,385)

4,320,41468,610

Foreign currency translation adjustment(148,398)(107,329)

Total accumulated other comprehensive income

4,301,073

4,281,695

Total shareholders' equity
Accumulated other comprehensive income

Share acquisition rights

147

111

Non-controlling interests

1,834,298

2,053,571

Total net assets

36,529,090

39,859,260

52,585,115

58,830,227

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales

43,416,334

46,188,285

Cost of sales

31,581,137

33,509,302

Gross profit

11,835,196

12,678,982

Selling, general and administrative expenses

6,196,031

6,077,542

Operating profit

5,639,164

6,601,440

Non-operating income
Interest income

37,89133,727

Dividend income
Share of profit of entities accounted for using equity method

174,681
62,472

198,849
33,273Foreign exchange gains
Gain on valuation of derivatives

17,22823,12042,879–Other

44,70846,794

Total non-operating income

360,103355,524

Loss on cancellation of derivatives
Other–
1,401

8,715
3,560

Total non-operating expenses

1,401

12,275

5,997,867

6,944,689–
72,88815,366–

Non-operating expenses

Ordinary profit
Extraordinary losses
Loss on sale of investment securities
Loss on valuation of investment securities

72,88815,366

Profit before income taxes

Total extraordinary losses

5,924,979

6,929,323

Income taxes - current
Income taxes - deferred

1,836,566(21,068)

2,485,595(298,715)

Total income taxes

1,815,497

2,186,880

Profit4,109,481

4,742,442

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

5147,993

224,7073,961,488

4,517,735

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

4,109,481

4,742,442

1,629,514(103,387)(168,442)
46,737

29,239107,996(23,562)

6,828

1,531,803(6,879)Comprehensive income

5,641,285

4,735,563

Comprehensive income attributable toComprehensive income attributable to owners of parent

5,516,4174,498,663

124,867

236,899

Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2021
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

1,873,136

Retained earnings

2,117,347

Total shareholders'equity

Treasury shares

24,543,512(689,412)

27,844,583

Changes during period
Dividends of surplus(1,414,077)(1,414,077)

Profit attributable to ownersof parent

3,961,488

3,961,488

Purchase of treasury shares

(55)

(55)

Transfer of treasury shares by
Employee Stock Ownership
Plan

1,324

1,324

Change in ownership interestof parent due to transactions
with non-controlling interests

308

308

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period–308

2,547,410

1,269

2,548,987

1,873,1362,117,656

27,090,922(688,143)

30,393,571

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

2,859,342

Remeasurementsof defined
benefit plans(68,625)

Foreigncurrencytranslation
adjustment(41,588)

Total
accumulated
othercomprehensive
income2,749,129

Shareacquisitionrights208

Non-controlling
Total net assetsinterests

1,735,440

32,329,362

Changes during period
Dividends of surplus(1,414,077)

Profit attributable to ownersof parent

3,961,488

Purchase of treasury shares(55)

Transfer of treasury shares byEmployee Stock Ownership
Plan

1,324

Change in ownership interestof parent due to transactions
with non-controlling interests

308

Net changes in items otherthan shareholders' equity

1,629,514

29,239(106,810)

1,551,943(61)

98,8571,650,740

Total changes during period

1,629,514

29,239(106,810)

1,551,943(61)

98,857

4,199,728

Balance at end of period

4,488,856(39,385)(148,398)

4,301,073

147

1,834,298

36,529,090

7

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

1,873,136

Capital surplus
2,117,656

Cumulative effects of changes inaccounting policies
Restated balance

Retained earnings
27,090,922

Treasury shares(688,143)

32,3291,873,136

2,117,656

27,123,251

Total shareholders'equity30,393,571
32,329(688,143)

30,425,900

Changes during period
Dividends of surplus(1,305,300)(1,305,300)

Profit attributable to ownersof parent

4,517,735

4,517,735

Purchase of treasury shares

(285)

(285)

Purchase of treasury sharesby Employee Stock
Ownership Plan(31,066)(31,066)

Transfer of treasury shares byEmployee Stock OwnershipPlan

19,75519,755

Change in ownership interestof parent due to transactions
with non-controlling interests

14,422

Change in retained earnings
from decreasung in equity inentities accounted for using
equity method

14,422(117,279)(117,279)

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

1,873,136

14,422

3,095,155(11,596)

3,097,981

2,132,078

30,218,406(699,739)

33,523,882

8

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

4,488,856

Remeasurementsof defined
benefit plans(39,385)

Foreigncurrencytranslation
adjustment(148,398)

Total
accumulated
othercomprehensive
income4,301,073

Shareacquisitionrights147

Non-controlling
Total net assetsinterests

1,834,298

Cumulative effects of changes
in accounting policies
Restated balance

36,529,090
32,3294,488,856(39,385)(148,398)

4,301,073

147

1,834,298

36,561,419

Changes during period
Dividends of surplus(1,305,300)

Profit attributable to ownersof parent

4,517,735

Purchase of treasury shares(285)

Purchase of treasury sharesby Employee Stock
Ownership Plan

(31,066)

Transfer of treasury shares byEmployee Stock OwnershipPlan

19,755

Change in ownership interestof parent due to transactions
with non-controlling interests

14,422

Change in retained earnings
from decreasung in equity inentities accounted for using
equity method(117,279)

Net changes in items otherthan shareholders' equity(168,442)

107,996

41,068(19,377)(36)

219,273

199,859

Total changes during period(168,442)

107,996

41,068(19,377)(36)

219,273

3,297,841

Balance at end of period

4,320,414

68,610(107,329)

4,281,695

111

2,053,571

39,859,260

9Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

5,924,979

6,929,323

Depreciation
Amortization of goodwill

64,252
278,475

54,205
134,713

Loss (gain) on valuation of derivatives
Loss (gain) on valuation of investment securities(23,120)72,888––Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and(28,256)

55,771(20,000)

30,000191,104

167,566

10,87927,302869

4,034(212,572)(232,577)(62,472)(33,273)(1,579,047)
332,212(1,771,588)
264,158

Decrease (increase) in inventories
Decrease (increase) in advance payments to suppliers

308,264(371,396)(489,793)(42,414)

Decrease (increase) in other current assets
Increase (decrease) in trade payables(11,666)(134,896)

62,9301,684,346

Increase (decrease) in advances received
Increase (decrease) in accrued consumption taxes(95,795)
37,059942,999(119,629)

Increase (decrease) in other current liabilities
Other, net(102,284)(64,607)

177,490
69,986

Subtotal

4,514,867

7,915,553

Interest and dividends received
Income taxes paid

221,662(2,144,620)

247,802(2,204,347)

Net cash provided by (used in) operating activities

2,591,909

5,959,007

other officers)
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for share awards
Increase (decrease) in provision for share awards for directors(and other officers)
Interest and dividend income
Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in trade receivables
Decrease (increase) in investments in leases

Cash flows from investing activities
Payments into time deposits(511,652)(1,907,987)

Proceeds from withdrawal of time deposits
Payments of guarantee deposits

798,037(977)

1,907,680(30,079)

Proceeds from refund of guarantee deposits
Purchase of property, plant and equipment

1,585(37,195)

76,559(50,674)

Purchase of intangible assets
Purchase of investment securities(5,987)(506,428)(2,190)(1,417,639)––

85,664800,000

3,989–(258,628)(538,666)(1,414,077)(30,432)(1,305,300)(29,618)

Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities

10(147)(31,259)(1,444,658)(1,366,179)

(Thousands of yen)
Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

Effect of exchange rate change on cash and cash equivalents(72,743)

36,800Net increase (decrease) in cash and cash equivalents

815,878

4,090,961

Cash and cash equivalents at beginning of period

20,248,505

21,064,384

Cash and cash equivalents at end of period

21,064,384

25,155,346

11