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, 2022
(Based on Japanese GAAP)
January 27, 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
February 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 nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended December 31, 2022
Nine months ended December 31, 2021

Millions of yen
35,90333,344

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
7.7
5,291
15.7
5,557
16.0
3,646
20.4
9.9
4,572
16.9
4,791
16.8
3,027
13.3

Earnings per share

Diluted earnings per share

Yen
170.86
141.65

Nine months ended December 31, 2022
Nine months ended December 31, 2021

Yen
170.86
141.65(2) Consolidated financial position
Total assets
As of December 31, 2022
As of March 31, 2022

Net assets

Millions of yen
61,467
58,830Equity ratio

Millions of yen
42,01939,859Net assets per share
%
65.0
64.3

Yen
1,874.64
1,769.01

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
30.00
33.00

Yen––

Yen
33.00

Yen
63.00

33.00

66.00

Year ending March 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
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
48,700
5.4
6,800
3.0
7,120
2.5
4,660
3.2
218.02

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2022
(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, 2022

22,354,000 shares As of March 31, 2022

22,354,000 shares

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

1,035,661 shares As of March 31, 2022

983,013 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2022

21,340,627 shares Nine months ended December 31, 2021

2

21,374,572 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2022

As of December 31, 2022

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

26,210,266
12,641,890

27,982,779
10,915,723

884,442
162,726

882,343
66,189–1,141,106

500,000
2,994,531

144,758
2,803

275,789
2,594

Other

2,076,605

1,813,218

Total current assets

43,264,598

45,433,170

212,672

461,004

Goodwill
Other

468,291
22,894

488,484
41,387

Total intangible assets

491,186

529,871

Investments and other assets
Investment securities

13,915,100

14,119,491

Electronically recorded monetary claims - operating
Investments in leases
SecuritiesMerchandiseWork in process
Raw materials and supplies

Non-current assets
Property, plant and equipment
Intangible assets

Other

946,669

923,946

14,861,769

15,043,437

15,565,628

16,034,313

58,830,227

61,467,483

8,931,924
1,365,031

9,826,858
371,682

633,777
120,000

320,10367,500Other

3,899,810

4,494,111

Total current liabilities

14,950,543

15,080,255

2,999,747
251,972

3,106,640
295,218

Provision for share awards for directors (and otherofficers)

87,25299,363

Other

681,450

866,978

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

4,020,423

4,368,200

18,970,966

19,448,456

(Thousands of yen)
As of March 31, 2022

As of December 31, 2022

Net assets
Shareholders' equity
Share capital

1,873,136

1,873,136

Capital surplus
Retained earnings

2,132,07830,218,406

2,173,108
32,429,891

Treasury shares(699,739)(926,384)

33,523,882

35,549,751

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

4,320,414
68,6104,415,783
62,924Foreign currency translation adjustment(107,329)(64,266)

Total accumulated other comprehensive income

4,281,695

4,414,442

111–

Total shareholders' equity
Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests

2,053,571

2,054,832

Total net assets

39,859,260

42,019,027

58,830,22761,467,483

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)
Nine months ended

Nine months ended

December 31, 2021

December 31, 2022

Net sales
Cost of sales

33,344,293
24,400,217

35,903,466
26,139,213

Gross profit

8,944,076

9,764,252

Total selling, general and administrative expenses

4,372,072

4,472,735

Operating profit

4,572,003

5,291,517

Interest income
Dividend income

19,891179,253

26,089203,646

Other

33,73847,775

Total non-operating income

232,883

277,511

9,931
3,574

10,958–17873

Non-operating income

Non-operating expenses
Share of loss of entities accounted for using equity method
Loss on valuation of derivatives
Other

13,523

11,831

Ordinary profit

Total non-operating expenses

4,791,363

5,557,197

Profit before income taxes

4,791,363

5,557,197

Income taxes - current
Income taxes - deferred

1,476,040
146,786

1,543,333
218,864

Total income taxes

1,622,826

1,762,197

Profit3,168,536

3,794,999

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

5140,748

148,808

3,027,787

3,646,191

(Thousands of yen)
3rd quarter endedDecember

3rd quarter endedDecember

31, 2021

31, 2022

Net sales
Cost of sales

9,909,441
7,092,960

10,867,678
7,836,441

Gross profit

2,816,480

3,031,236

Total selling, general and administrative expenses

1,464,686

1,479,738

Operating profit

1,351,794

1,551,498

Interest income
Dividend income

5,915
82,602

9,594
93,395

Share of profit of entities accounted for using equity method
Other–
24,543

3,558
7,511

Total non-operating income

113,062

114,059

12,057–

7,282
13,142–
12,284–418

Non-operating income

Non-operating expenses
Share of loss of entities accounted for using equity method
Loss on valuation of derivatives
Foreign exchange losses
Other32,481

12,702

Ordinary profit

Total non-operating expenses

1,432,375

1,652,855

Profit before income taxes

1,432,375

1,652,855

Income taxes - current
Income taxes - deferred

378,330
167,153

410,890
147,344

Total income taxes

545,483

558,234

Profit886,891

1,094,620

Profit attributable to non-controlling interests

98,01828,090

Profit attributable to owners of parent

788,872

1,066,530

6

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

ProfitOther comprehensive income

Nine months ended

Nine months ended

December 31, 2021

December 31, 2022

3,168,536

3,794,999

420,364(2,384)

95,369
3,684

9,554

(5,685)(4,942)

27,984

422,593

121,352

Comprehensive income

3,591,129

3,916,352

Comprehensive income attributable toComprehensive income attributable to owners of parent

3,445,004

3,781,954

146,125

134,397

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

7

(Thousands of yen)

ProfitOther comprehensive income

3rd quarter endedDecember

3rd quarter endedDecember

31, 2021

31, 2022
886,891

1,094,620(88,814)(34,379)(426,340)(251,644)

3,184(1,895)

1,742

829

(118,268)(679,051)

Comprehensive income

768,623

415,569

Comprehensive income attributable toComprehensive income attributable to owners of parent

673,355

463,987

95,267(48,418)

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

8