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 Nine Months Ended December 31, 2023
(Based on Japanese GAAP)
January 26, 2024
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
February 9, 2024

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 nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes
Profit attributable toOperating profitOrdinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
17.5
6,720
27.0
7,017
26.3
4,652
27.6
7.7
5,291
15.7
5,557
16.0
3,646
20.4

Net sales
Nine months ended December 31, 2023
Nine months ended December 31, 2022

Millions of yen
42,18635,903

Earnings per share

Diluted earnings per share

Yen
218.28170.86Nine months ended December 31, 2023
Nine months ended December 31, 2022

Yen–170.86(2) Consolidated financial position
Total assets
As of December 31, 2023
As of March 31, 2023

Net assets

Millions of yen
69,87965,502Equity ratio

Millions of yen
49,58743,941

Net assets per share
%
67.7
63.8

Yen
2,222.30
1,961.49

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Year ended March 31, 2023

Yen–

Yen
33.00

Yen–

Yen
40.00

Yen
73.00

Year ending March 31, 2024

–

40.00

–
50.00

90.00

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
58,200
9.1
9,000
15.8
9,400
14.6
6,300
16.2
295.291

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 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 December 31, 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 December 31, 2023

1,055,425 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)
Nine months ended December 31, 2023

21,316,916 shares Nine months ended December 31, 2022

221,340,627 shares

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

As of December 31, 2023

AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade, and contract assets

26,887,318
17,352,307

33,339,137
11,667,293

Electronically recorded monetary claims - operating
Investments in leases

1,014,97844,883

1,117,992
15,153

Securities
Merchandise

1,200,000
1,954,789

500,000
2,082,000

63,1691,968

226,460
7,357

Other

1,883,504

1,364,803

Total current assets

50,402,919

50,320,199

396,053

421,862

Goodwill
Other

448,841
44,948477,289
41,170Total intangible assets

493,790

518,460

Investments and other assets
Investment securities

13,261,76017,697,943

Work in process
Raw materials and supplies

Non-current assets
Property, plant and equipment
Intangible assets

Other

947,730

921,075

14,209,491

18,619,018

15,099,335

19,559,341

65,502,254

69,879,540

10,995,113
1,379,401

9,234,736
673,477

656,554
140,000

383,983
105,000

Other

4,310,222

4,341,775

Total current liabilities

17,481,292

14,738,972

3,006,958
320,377

3,099,223
376,105

Provision for share awards for directors (and otherofficers)

98,895142,288

Other

652,887

1,935,078

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

4,079,118

5,552,696

21,560,410

20,291,668

Share capital
Capital surplus

1,873,136
2,136,715

1,873,136
2,136,715

Retained earnings
Treasury shares

34,203,323(925,501)

37,115,888(1,011,625)

Total shareholders' equity

37,287,673

40,114,114

Total liabilities
Net assets
Shareholders' equity

3

(Thousands of yen)
As of March 31, 2023

As of December 31, 2023

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

4,322,108
139,335

6,888,963
120,347

67,760208,482

4,529,204

7,217,792

Non-controlling interests

2,124,965

2,255,964

Total net assets

43,941,843

49,587,872

65,502,254

69,879,540

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Quarterly consolidated statement of income (cumulative)(Thousands of yen)
Nine months ended

Nine months ended

December 31, 2022

December 31, 2023

Net sales
Cost of sales

35,903,466
26,139,213

42,186,979
30,657,719

Gross profit

9,764,252

11,529,260

Selling, general and administrative expenses

4,472,735

4,809,166

Operating profit

5,291,517

6,720,094

Interest income
Dividend income

26,089203,646

43,374225,993

Foreign exchange gains
Gain on investments in investment partnerships

17,941–14,837
5,610

Non-operating income

Other29,833

46,690Total non-operating income

277,511

336,506

Share of loss of entities accounted for using equity method
Other

10,958873

36,7801,844

Total non-operating expenses

11,831

38,624

Ordinary profit

5,557,197

7,017,975

Profit before income taxes

5,557,197

7,017,975

Income taxes - current

1,543,333

2,031,482

Income taxes - deferred

218,864

185,664

Total income taxes

1,762,197

2,217,147Profit

3,794,999

4,800,828

148,808

147,869

3,646,191

4,652,958

Non-operating expenses

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

5

Quarterly consolidated statement of income (non-cumulative)(Thousands of yen)
3rd quarter endedDecember

3rd quarter endedDecember

31, 2022

31, 2023

Net sales
Cost of sales

10,867,678
7,836,441

13,820,539
9,930,730

Gross profit

3,031,236

3,889,809

Selling, general and administrative expenses

1,479,738

1,658,546

Operating profit

1,551,498

2,231,263Interest income
Dividend income

9,594
93,395

17,200101,074

Share of profit of entities accounted for using equity method
Other

3,558
7,511

–
19,345

114,059

137,620–

29,641

348
12,284

361
9,445

69745

Non-operating income

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

12,70240,194

Ordinary profit

Total non-operating expenses

1,652,855

2,328,689

Profit before income taxes

1,652,855

2,328,689Income taxes - current
Income taxes - deferred

410,890
147,344

647,178
103,494

Total income taxes

558,234

750,673

1,094,620

1,578,015

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

628,09039,4781,066,530

1,538,537

Quarterly consolidated statement of comprehensive income (cumulative)(Thousands of yen)

ProfitOther comprehensive income

Nine months ended

Nine months ended

December 31, 2022

December 31, 2023

3,794,999

4,800,828

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

95,369(5,685)2,566,855(18,988)

Foreign currency translation adjustment
Share of other comprehensive income of entities accounted

3,684

156,321

27,984

17,156

121,352

2,721,344

Comprehensive income

3,916,352

7,522,173

Comprehensive income attributable toComprehensive income attributable to owners of parent

3,781,954

7,338,708

134,397

183,464

for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

7

Quarterly consolidated statement of comprehensive income (non-cumulative)(Thousands of yen)

ProfitOther comprehensive income

3rd quarter endedDecember

3rd quarter endedDecember

31, 2022

31, 2023
1,094,620

1,578,015

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax(426,340)(1,895)

634,743(6,329)Foreign currency translation adjustment
Share of other comprehensive income of entities accounted(251,644)

13,560829

5,532(679,051)

647,506

Comprehensive income

415,569

2,225,522

Comprehensive income attributable toComprehensive income attributable to owners of parent

463,987

2,184,465(48,418)

41,056for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

8