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 Six Months Ended September 30, 2023
(Based on Japanese GAAP)
October 31, 2023
Company name:
CTS Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

Inquiries:

4345
URL https://www.cts-h.co.jp
Representative Director and President
Director, Operating Officer and GeneralManager,

Taizo Yokoshima

Makio Kitahara

Accounting & Business Administrative
Department

TEL

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

November 14, 2023
December 1, 2023

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:Yes
No0268-26-3700(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 2023
5,345
1.7
1,264
5.5
1,247
7.5
833
7.2
Six months ended September 30, 2022
5,258
2.9
1,198
0.1
1,160
1.2777(1.4)
Earnings per share

Diluted earnings per share

Yen
19.67
18.34

Six months ended September 30, 2023
Six months ended September 30, 2022

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
15,684
14,741

As of September 30, 2023
As of March 31, 2023

Equity ratio

Millions of yen
11,284
10,582

%
71.9
71.8

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
10.50
10.00

Yen–

Yen
11.50

Yen
22.00

–

10.00

20.00

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)
Net sales
Full year

Millions of yen
11,500Percentages 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
6.5
2,800
4.0
2,770
1.8
1,930
9.7
45.54

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 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:

NoNo

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 September 30, 2023

43,400,000 shares As of March 31, 2023

43,400,000 shares

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

1,020,845 shares As of March 31, 2023

1,020,845 shares

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

42,379,155 shares Six months ended September 30, 2022

242,379,155 shares

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

As of September 30, 2023

AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade
Inventories
Other
Allowance for doubtful accounts
Total current assets

6,272
1,672

6,314
1,765

366
401

438
469

(2)

(2)

8,710

8,985

Non-current assets
Property, plant and equipment
Leased assets, net

1,916

1,786

Other, net

1,754

1,750

Total property, plant and equipment

3,671

3,536

113

161

Intangible assets
Investments and other assets
Investment securities

2,140

2,651

Other
Allowance for doubtful accounts

112
(7)

357
(7)

Total investments and other assets

2,245

3,000

Total non-current assets

6,031

6,698

14,741

15,684Current liabilities
Accounts payable - trade

481

746

Income taxes payable
Other

499
1,764

406
1,822

Total current liabilities

2,745

2,975

1,183

1,048

230

375

1,413

1,424

4,159

4,399

Share capital
Retained earnings

3,000
8,159

3,000
8,505

Treasury shares

(722)

(722)

10,437

10,783144

500

Total assets
Liabilities

Non-current liabilities
Lease liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Total shareholders' equityAccumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

3144

500

10,582

11,284

14,741

15,684

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2022

September 30, 2023

Net sales
Cost of sales

5,258
2,681

5,345
2,673

Gross profit

2,576

2,671Selling, general and administrative expenses

1,378

1,407

Operating profit

1,198

1,264

Dividend income
Other59358
2

Total non-operating income

6360

2521

Share of loss of entities accounted for using equity method
Taxes and dues

57
1856
–

Total non-operating expenses

100

77

Ordinary profit

1,160

1,247

Profit before income taxes

1,160

1,247

380

409

Non-operating income

Non-operating expenses
Interest expenses

Income taxes - current
Income taxes - deferred

34

Total income taxes

383

414

Profit777

833

Profit attributable to owners of parent777

833

4

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2022

September 30, 2023
777

833

Valuation difference on available-for-sale securities

(102)

356

Total other comprehensive income

(102)

356

Comprehensive income

674

1,189

Comprehensive income attributable toComprehensive income attributable to owners of parent

674

1,189

––

Comprehensive income attributable to non-controllinginterests

5Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2022

September 30, 2023

1,160

1,247

Depreciation
Increase (decrease) in allowance for doubtful accounts

469
(0)

470
(0)

Interest and dividend income
Interest expenses(59)
25(58)
21

Share of loss (profit) of entities accounted for using equity
method57

56

Loss (gain) on sale of property, plant and equipment
Decrease (increase) in trade receivables(0)
62–(86)

Decrease (increase) in inventories
Increase (decrease) in trade payables

(101)
296

(72)310

Other, net

(160)

(111)

Subtotal

1,748

1,775

59

58

Interest paid
Income taxes paid

(25)
(500)

(21)
(468)

Net cash provided by (used in) operating activities

1,282

1,344

(28)

(27)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

0
(9)

–
(73)

Purchase of shares of subsidiaries and associates
Other, net

(7)
(1)

(297)
(2)

Net cash provided by (used in) investing activities

(45)

(400)

(410)

(414)

Dividends paid

(465)

(487)

Net cash provided by (used in) financing activities

(876)

(902)

Interest and dividends received

Cash flows from investing activities
Purchase of property, plant and equipment

Cash flows from financing activities
Repayments of lease liabilities

Net increase (decrease) in cash and cash equivalents

360

41

Cash and cash equivalents at beginning of period

5,172

6,272

Cash and cash equivalents at end of period

5,533

6,314

6