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, 2023
(Based on Japanese GAAP)May 12, 2023
Company name:

PUNCH INDUSTRY CO., LTD.

Stock exchange listing: Tokyo
Stock code:
6165
Representative:
Inquiries:

URL

http://www.punch.co.jp/ir/

Chief Executive Officer
Chief Financial Officer

Tetsuji Morikubo
Takao Murata

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 22, 2023
June 23, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 23, 2023
Yes

Holding of financial results meeting:

Yes

TEL

03-5753-3130(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2023
42,7998.7
2,436(19.9)
2,394 (20.4)
1,390(31.9)
Year ended March 31, 2022
39,358
21.2
3,041
88.5
3,007
79.4
2,040 327.2
Note: Comprehensive income

Year ended March 31, 2023:¥2,137 million [(45.0%)]

Year ended March 31, 2022:¥3,889 million [431.6%]

Yen
60.58
93.36

Year ended March 31, 2023
Year ended March 31, 2022
Note:

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
60.15
7.9
8.1
5.7
84.36
14.2
11.2
7.7

Diluted earnings per
share

Earnings per share

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

Year ended March 31, 2023:
Year ended March 31, 2022:¥– million¥– million(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen
30,45528,774

Millions of yen
19,052
16,307

As of March 31, 2023: ¥19,007 million
As of March 31, 2022: ¥16,264 million(3) Consolidated cash flows
Cash flows fromoperating activities
Millions of yen
Year ended March 31, 2023
2,560
Year ended March 31, 2022
2,941

Cash flows frominvesting activities
Millions of yen(1,546)(1,099)As of March 31, 2023
As of March 31, 2022

Net assets per share
%
62.4
56.5

Yen
778.02737.40Note: Equity

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
(756)
5,212
(1,600)4,669

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

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(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

%

%

–
–

4.00
6.50

–
–

9.00
13.00

13.00
19.50

285
465

13.9
32.2

2.0
2.6

–

10.00

–

10.30

20.30

62.0

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 toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

Net sales
Millions of yen
Six months ending
September 30, 2023
Full year

20,300(6.3)

810(47.3)

800(47.5)

120(86.8)

4.91

42,000

(1.9)

2,150

(11.8)

2,100(12.3)

800(42.5)

32.75

Notes
(1) Changes in significant subsidiaries during the year ended March 31, 2023

No(changes in specified subsidiaries resulting in the change in scope of consolidation):(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(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, 2023

24,622,400 shares As of March 31, 2022

22,332,400 shares

Number of treasury shares at the end of the period
As of March 31, 2023

191,339 shares As of March 31, 2022

275,868 shares

22,947,817 shares Year ended March 31, 2022

21,858,118 shares

Average number of shares during the period
Year ended March 31, 2023

(Reference) Overview of non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended March 31, 2023
Year ended March 31, 2022

Operating profit

Million yen
14,777
15,092

%
(2.1)
14.0

Earnings per share

Million yen
(55)
45

–
–

ProfitMillion yen%
1,883 (28.1)
2,618 168.9

Million yen
1,439
2,228

%
(35.4)–

Diluted earnings per share

Yen
62.74
101.93

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

Ordinary profit
%

Yen
62.29
92.10

(2) Non-consolidated financial position
Total assets
Million yen
14,902
14,235

As of March 31, 2023
As of March 31, 2022
Reference: Equity

As of March 31, 2023:
As of March 31, 2022:

Net assets
Million yen
7,908
5,860

Equity ratio

Net assets per share
%
52.9
41.0

Yen
322.84264.54¥7,887 million¥5,834 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Appropriate use of financial forecasts; other special items(Caution concerning forward-looking statements)
Forward-looking statements provided in this document, including financial forecasts, are based on the information currently available to theCompany and certain assumptions considered reasonable. Such statements are included without any guarantee as to their future achievement.
Actual results, etc. may differ materially from the forecasts depending on various factors. For the related matters concerning the financial
forecasts, please refer to “1. Overview of Operating Results, Etc., (4) Future prospects” on page 3 of the attached material.
(The Financial Results Briefing)
The Company has scheduled an online briefing for institutional investors and analysts on Friday, May 19, 2023.

Attached Materials Index
1.

Overview of Operating Results, Etc. ..................................................................................................................................2(1)
Overview of operating results for the period ..............................................................................................................2(2)
Overview of financial position for the period .............................................................................................................2(3)
Overview of cash flows for the period ........................................................................................................................3(4)
Future prospects ..........................................................................................................................................................3
2. Basic Policy Regarding Selection of Accounting Standards...............................................................................................3
3. Consolidated Financial Statements and Significant Notes Thereto ....................................................................................4(1)
Consolidated balance sheets .......................................................................................................................................4(2)
Consolidated statements of income and consolidated statements of comprehensive income .....................................6
Consolidated statements of income.............................................................................................................................6
Consolidated statements of comprehensive income ...................................................................................................7(3)
Consolidated statements of changes in equity ............................................................................................................8(4)
Consolidated statements of cash flows .....................................................................................................................10(5)
Notes on consolidated financial statements ..............................................................................................................12
Notes related to the going concern assumption.........................................................................................................12
Segment information, etc. .........................................................................................................................................12
Business Combination ..............................................................................................................................................14
Per share information ................................................................................................................................................16
Significant events after the reporting period .............................................................................................................16
4. Non-consolidated Financial Statements and Significant Notes Thereto ...........................................................................17(1)
Non-consolidated balance sheets ..............................................................................................................................17(2)
Non-consolidated statements of income ...................................................................................................................19(3)
Non-consolidated statements of changes in equity ...................................................................................................20

1

1. Overview of Operating Results, Etc.
(1) Overview of operating results for the period
The global economy during the current fiscal year showed signs of an improving trend in economic activity resulting
from the progress in the balance of the measures against the novel coronavirus disease (hereinafter COVID-19) andeconomic activity. On the other hand, in addition to heightened geopolitical risks, the price hikes in raw materials andresources, including energy prices, became even more severe. The outlook remained even more uncertain due to bankfailures in the U.S. and financial instability in Europe, in addition to the global shortage of parts and materials.
In such an environment, the Group has set the following statement as the Company’s “ideal state” in its three-year
mid-term business plan “Value Creation (VC) 2024” that had started in April 2022: always being the “customer’s first
choice” with automation and labor-saving demand as the new growth engine. To address the unachieved issues of theprevious mid-term business plan and to increase corporate value, the Company has identified “Expansion of new andexisting businesses,” “Strengthening the production system,” and “Strengthening R&D” as the three priority
initiatives, and pursues “DX promotion,” “Financial strategy,” and “Sustainability” to strengthen the managementfoundations that will support the pursuit of the initiatives. In October 2022, the Company acquired all shares of ASCE
CO., LTD., which is engaged in FA equipment design and manufacturing, and made it a subsidiary, thereby working
to “expand new and existing businesses.” Additionally, in January 2023, the Company reviewed its basic capital andshareholder return policies as its “financial strategy.”
Turning to operating results, sales in all regions surpassed those of the previous year due to the foreign exchange
effects of a weaker yen in addition to handling both COVID-19 and economic activity. Regarding the fiscal year ends
for the Group, the Company, Pintech, and India Punch’s fiscal year ends are March. On the other hand, the othergroup companies,’ except for these companies, fiscal year ends are mainly December, and the results from January to
December 2022 will be the consolidated financial results for the fiscal year under review.
Net sales amounted to ¥14,104 million (up 0.6% year on year) for Japan; ¥23,451 million (up 11.9% year on year) for
China; ¥1,966 million (up 13.0% year on year) for Southeast Asia; and ¥3,277 million (up 24.1% year on year) for
Europe and the United States. This brought consolidated net sales to ¥42,799 million (up 8.7% year on year).
By industry, the results were ¥18,082 million (up 10.0% year on year) for automobile; ¥7,866 million (down 2.2%
year on year) for electronic devices & semiconductors; ¥4,312 million (up 2.9% year on year) for consumer
electronics & precision equipment; and ¥12,538 million (up 17.4% year on year) for other.
As for profits, there were some events, including the effects of worsening cost ratio due to higher purchase costs, etc.,
which exceeded price pass-through to products; and deterioration in the profitability of overseas subsidiaries due toexchange rate fluctuations. Operating profit was ¥2,436 million (down 19.9% year on year); ordinary profit was¥2,394 million (down 20.4% year on year); and profit attributable to owners of parent was ¥1,390 million (down
31.9% year on year).
As for capital efficiency, return on equity (ROE) was 7.9% (14.2% in the previous year) and return on invested
capital (ROIC) was 8.1% (11.4% in the previous year). Both were below the target (10% or higher).
(2) Overview of financial position for the period
AssetsTotal assets as of the end of the current fiscal year amounted to ¥30,455 million, an increase of ¥1,681 million
compared with the end of the previous fiscal year. This was mainly due to an increase of trade receivables andinventories.
Liabilities
Total liabilities amounted to ¥11,403 million, a decrease of ¥1,063 million compared with the end of the previous
fiscal year. This was mainly due to a decrease of borrowings.
Net Assets
Total net assets amounted to ¥19,052 million, an increase of ¥2,745 million compared with the end of the previous
fiscal year. This was mainly due to an increase of retained earnings as a result of recording profit attributable toowners of parent and an increase of foreign currency translation adjustment.

2(3) Overview of cash flows for the period
Cash and cash equivalents as of the end of the current fiscal year increased by ¥543 million compared to the end of
the previous fiscal year and amounted to ¥5,212 million.
Cash flows from operating activities
Net cash provided by operating activities for the current fiscal year amounted to ¥2,560 million (compared to¥2,941 million provided for the previous fiscal year).
This was mainly due to profit before income taxes of ¥2,075 million and non-cash items such as impairment lossesof ¥297 million and depreciation of ¥1,130 million, as well as a decrease of accounts payable - other, and accrued
expenses by ¥276 million and income taxes paid of ¥736 million.
Cash flows from investing activities
Net cash used in investing activities for the current fiscal year amounted to ¥1,546 million (compared to ¥1,099
million used for the previous fiscal year).
This was mainly due to purchase of property, plant and equipment of ¥1,138 million.
Cash flows from financing activities
Net cash used in financing activities for the current fiscal year amounted to ¥756 million (compared to ¥1,600
million used for the previous fiscal year.)This was mainly due to net decrease of short-term borrowings of ¥667 million, repayments of long-termborrowings of ¥798 million, and proceeds from issuance of shares of ¥918 million.
(4) Future prospects
Market conditions are in a downtrend against the backdrop of heightened global geopolitical risks, surging raw
material and resource prices, and parts shortages. The Company recognizes that a reasonable amount of time isneeded to move toward a cycle of economic expansion. In addition, the Company continues to face price increases forpurchased goods and increases in utilities and other costs. It is also expected to incur impairment losses in its Japan
operations. As a result, the Company has been forced to delay its mid-term business plan, “VC2024,” significantly.
After incorporating the above deterioration in the business environment, the Company forecasts net sales of ¥42,000
million (a decrease of 1.9% year on year); operating profit of ¥2,150 million (a decrease of 11.8% year on year);ordinary profit of ¥2,100 million (a decrease of 12.3% year on year); and profit attributable to owners of parent of¥800 million (a decrease of 42.5% year on year).
Capital efficiency is also expected to deteriorate from the previous year, with return on equity (ROE) and return on
invested capital (ROIC) forecasted to be 4.2% and 6.9%, respectively.
In addition to recovering from the delays to date, the Company believes that it is necessary to brush up its plan,
including a new growth strategy for the future. The Company will concentrate its management resources on brushingup “VC2024” and its implementation, and will make every effort to recover its business performance rapidly.
The details of the brush-up of “VC2024” will be disclosed as soon as they are determined.
The foregoing forecast of financial results have been prepared based on information currently obtainable by theCompany as of the publication date of this document, and actual financial performance may differ from the forecast
values due to various factors that arise.
2. Basic Policy Regarding Selection of Accounting Standards
The Group prepares its consolidated financial statements based on Japanese GAAP. The Company is considering thevoluntary adoption of International Financial Reporting Standards (IFRS), but the adoption date is yet to be determined.
The appropriate decision will be made by taking into account the coming state of affairs in Japan and the globe.

33. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheets
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4(Thousands of yen)
As of March 31, 2023

4,816,271
2,043,258
9,191,812
2,408,754
813,141
1,569,159
485,384(48,002)
21,279,780

5,212,840
1,745,722
9,632,805
2,851,464
658,304
1,531,566
484,910(39,625)
22,077,989

5,905,167(4,140,358)
1,764,809
16,310,582(12,703,869)
3,606,712
2,514,054(2,081,516)
432,538
778,847
168,440
392,570(131,311)
261,259
7,012,607

6,157,577(4,386,200)
1,771,377
17,405,829(13,513,007)
3,892,822
2,732,280(2,273,126)
459,154829,852
161,203
466,171(265,868)
200,3037,314,714–
177,903
177,903

466,570
228,902695,473

118,693
198,737(13,623)
303,8077,494,318
28,774,098

201,750
202,263(36,214)367,799
8,377,987
30,455,976

As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5(Thousands of yen)
As of March 31, 2023

2,738,725
1,078,059
1,774,655–
710,978
384,126
400,265
17,183
2,897,059
10,001,052

2,667,392
999,425
1,300,590
10,000728,838
396,959
379,197–
2,698,358
9,180,761

907,890
1,145,220
412,726
2,465,836
12,466,888

675,657
1,243,685
303,3032,222,646
11,403,407

2,944,776
2,512,189
9,057,592(136,301)
14,378,256

3,406,477
2,967,666
10,101,571(94,544)
16,381,171

1,962,065(75,761)
1,886,303
26,13016,51816,307,209
28,774,098

2,737,825(111,203)
2,626,622
20,86323,911
19,052,569
30,455,976

(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
Fiscal year ended
March 31, 2022
March 31, 2023
Net sales
39,358,634
42,799,503
Cost of sales
27,913,724
31,168,808
Gross profit
11,444,910
11,630,695
Selling, general and administrative expenses
8,403,308
9,194,171
Operating profit
3,041,601
2,436,524
Non-operating income
Interest income
53,047
61,334Gain on sale of scraps
27,87940,564
Subsidy income
4,418
27,533
Other
45,08439,386
Total non-operating income
130,430
168,820
Non-operating expenses
Interest expenses
53,90962,091
Foreign exchange losses
73,225106,011
Other
37,24343,159Total non-operating expenses
164,378
211,262
Ordinary profit
3,007,653
2,394,081
Extraordinary income
Gain on sale of non-current assets
6,035
16,139Total extraordinary income
6,035
16,139Extraordinary losses
Loss on sale and retirement of non-current assets
5,953
36,903
Impairment losses
159,926
297,924
Total extraordinary losses
165,880
334,827
Profit before income taxes
2,847,808
2,075,393
Income taxes - current
805,177
732,547
Income taxes - deferred(2,994)(54,209)
Total income taxes
802,183
678,338
Net profit
2,045,624
1,397,055
Profit attributable to non-controlling interests
4,899
6,880
Profit attributable to owners of parent
2,040,725
1,390,1746

Consolidated statements of comprehensive income

Net profit
Other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

7

Fiscal year ended
March 31, 2022
2,045,624(Thousands of yen)
Fiscal year ended
March 31, 2023
1,397,055

1,843,452
544
1,843,996
3,889,621

776,271(35,441)
740,830
2,137,885

3,883,489

2,130,492

6,132

7,392

(3) Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

Total shareholders’equityTreasury shares

2,897,732

2,590,646

7,016,866(149,905)

12,355,340

47,04447,044

94,088(131,013)(131,013)

Changes during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparent2,040,725

Disposal of treasury shares

2,040,725

5,511

13,603

19,115

Net changes in items other thanshareholders’ equity
Total changes during period

47,044(78,457)

2,040,725

13,6032,022,915

Balance at end of period

2,944,776

2,512,189

9,057,592(136,301)

14,378,256

Accumulated other comprehensive income
Foreigncurrencytranslation
adjustment
Balance at beginning of period

119,846

Total
accumulatedof defined benefit
other
plans
comprehensive
incomeRemeasurements(76,306)

43,540Share
acquisitionrights26,970Non-controlling
Total net assetsinterests

10,386

12,436,237

Changes during period
Issuance of new shares

94,088Dividends of surplus(131,013)

Profit attributable to owners ofparent2,040,725

Disposal of treasury shares
Net changes in items other thanshareholders’ equity

19,115
1,842,218

544

1,842,763

(839)

6,132

1,848,056

Total changes during period

1,842,218

544

1,842,763

(839)

6,132

3,870,972

Balance at end of period

1,962,065(75,761)

1,886,303

26,13016,51816,307,209

8

Fiscal year ended March 31, 2023
(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

2,944,776

2,512,189

461,701

461,701

Retained earnings

Total shareholders’equityTreasury shares

9,057,592(136,301)

14,378,256

Changes during period
Issuance of new shares

923,402

Dividends of surplus(346,194)(346,194)

Profit attributable to owners ofparent1,390,174

1,390,174

Disposal of treasury shares(6,223)41,75735,533

Net changes in items other thanshareholders’ equity
Total changes during period

461,701

455,477

1,043,979

41,7572,002,915

Balance at end of period

3,406,477

2,967,666

10,101,571(94,544)

16,381,171

Accumulated other comprehensive income
Foreigncurrencytranslation
adjustment
Balance at beginning of period

1,962,065

Total
accumulatedof defined benefit
other
plans
comprehensive
incomeRemeasurements(75,761)

1,886,303

Shareacquisitionrights26,130Non-controlling
Total net assetsinterests

16,51816,307,209

Changes during period
Issuance of new shares

923,402

Dividends of surplus(346,194)

Profit attributable to owners ofparent1,390,174

Disposal of treasury shares
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

35,533775,759(35,441)

740,318(5,267)

7,392

742,444775,759(35,441)

740,318(5,267)

7,392

2,745,359

2,737,825(111,203)

2,626,622

20,86323,911

19,052,569

9

(4) Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale and retirement of non-current
assetsDecrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other, andaccrued expenses
Subsidy income
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of intangible assets
Proceeds from collection of long-term loans
receivable
Long-term loan advances
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Other, net
Net cash provided by (used in) investing activities

10

2,847,808
971,746
159,926–
61,324
128,3432,075,393
1,130,489
297,924
24,55647,045(21,996)

17,183(17,183)(16,968)

11,905(53,047)
53,909699(61,334)
62,09173,682(81)

20,717(286,768)(417,353)
25,882

463,624
82,994(565,596)

168,135(276,227)(4,418)26,783
3,683,106
53,047(66,319)
4,418(732,778)
2,941,474(27,533)(58,898)
3,261,652
61,334(53,802)
27,533(736,335)
2,560,382(17,212)(999,260)
10,997(73,376)–

147,090(1,138,726)
12,454(148,124)
11

9,948

7,409

(4,650)(4,000)–(457,472)(50,164)(9,253)24,157

43,625–(1,099,559)

350(1,546,635)

Fiscal year ended
March 31, 2022
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of installment payables
Repayments of lease liabilities
Proceeds from issuance of share acquisition rights
Redemption of bonds
Proceeds from issuance of shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

11(Thousands of yen)
Fiscal year ended
March 31, 2023

(411,874)
345,060(1,326,368)(81,889)(94,166)
5,750–
93,605(131,013)
6(1,600,888)(667,745)
367,170(798,683)(83,705)(140,316)–(5,000)918,135(346,194)–(756,340)

466,019

286,252

707,045
3,962,135
4,669,180

543,659
4,669,180
5,212,840

(5) Notes on consolidated financial statements
Notes related to the going concern assumption
There is nothing to report.
Segment information, etc.
[Segment Information]
This information is omitted because the Group has only one segment, the parts of molds and dies business.

[Related Information]
Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
1. Information by Finished Goods or Service
This information is omitted because the Group’s net sales to external customers in one category of finished goods
or service exceeds 90% of net sales on the consolidated statement of income.
2. Information by Region(1) Net sales
Japan

China

Other

(Thousands of yen)Total

14,020,213

20,956,488

4,381,932

39,358,634

Note: Sales are categorized by country or region based on the customer’s location.

(2) Property, plant and equipment
Japan

China

Other

1,341,296

5,056,548

614,762(Thousands of yen)Total
7,012,607

3. Information by Major Customer
Information by major customer is omitted because, compared to net sales to all external customers, net sales to a
specific customer does not amount to 10% of the net sales on the consolidated statement of income.
Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
1. Information by Finished Goods or Service
This information is omitted because the Group’s net sales to external customers in one category of finished goods
or service exceeds 90% of net sales on the consolidated statement of income.
2. Information by Region(1) Net sales
Japan

China

Other

(Thousands of yen)Total

14,104,143

23,451,296

5,244,063

42,799,503

Note: Sales are categorized by country or region based on the customer’s location.

(2) Property, plant and equipment
Japan

China

Other

1,422,486

5,268,923

623,304

12(Thousands of yen)Total
7,314,714

3. Information by Major Customer
Information by major customer is omitted because, compared to net sales to all external customers, net sales to a
specific customer does not amount to 10% of the net sales on the consolidated statement of income.
[Information on Impairment Losses on Non-Current Assets by Reporting Segment]
Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
Consolidated impairment losses on non-current assets recorded in the current fiscal year amounted to ¥159,926
thousand. The information is not presented by reporting segment because the Group has only one segment, theparts of molds and dies business.
Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
Consolidated impairment losses on non-current assets recorded in the current fiscal year amounted to ¥297,924
thousand. The information is not presented by reporting segment because the Group has only one segment, theparts of molds and dies business.
[Information on Amortization and Unamortized Balance of Goodwill by Reporting Segment]
Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
There is nothing to report.
Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
Consolidated amortized goodwill and unamortized balance of goodwill recorded in the current fiscal year
amounted to ¥24,556 thousand and ¥466,570 thousand, respectively. The information is not presented byreporting segment because the Group has only one segment, the parts of molds and dies business.
[Information on Gain on Bargain Purchase by Reporting Segment]
There is nothing to report.

13

Business Combination
Business Combination through Acquisition
At a meeting of the Board of Directors held on October 19, 2022, the Company resolved to acquire all shares of
ASCE CO., LTD., a company engaged in FA equipment design and manufacturing, to make it a subsidiary. The
Company made it a subsidiary by acquiring its shares on October 26, 2022.
(1)

Overview of the Business Combination(i)Name and business of the acquired company
Name of the acquired company: ASCE CO., LTD.
Business: FA equipment design and manufacturing(ii)

Principal purpose of the business combination
The Group performs the following initiatives: formulating a mid-term business plan, “VC2024,” for thethree-year period from FY2022 to FY2024; setting always being the “customer’s first choice” as theCompany’s “ideal state” with automation and labor-saving demand as the new growth engine; andsetting three priority management issues, “Expansion of new and existing businesses,” “Strengthening
the production system,” and “Strengthening R&D.”
As part of the Company’s initiatives for “Expansion of new and existing businesses,” which is one of its
priority management issues, the Company has decided to acquire all shares of ASCE CO., LTD. as ameasure to realize “expansion of sales of custom-made products in the FA field.”
By acquiring shares of ASCE CO., LTD., which has strengths in in-house development of FA
equipment for food processing, automotive parts, electronic devices, and medical-related products, etc.,
the Company believes that synergies will be generated through the effective utilization of sales channels
and technological exchange between the two companies, leading to the achievement of the management
goal of “VC2024” and the enhancement of the Group’s medium- to long-term corporate value.

(iii)

Date of the business combination
October 26, 2022 (deemed acquisition date October 1, 2022)(iv)

Legal form of the business combination
Share acquisition(v)

Name of the company after the business combination
No change(vi)

Ratio of voting rights acquired
100%

(vii)

Grounds for deciding on the company to be acquired
By acquiring the shares in exchange for cash(viii)

Period of the acquired company’s business results included in the consolidated financial statements
From October 1, 2022 to March 31, 2023

(2)

Acquisition Cost and Consideration of Acquired Company by Item
Consideration for acquisition Cash: ¥550,000 thousand(3)

Amount of Major Acquisition-related Expenses
Advisory service fees, etc.

(4)¥52,108 thousand

Amount of Goodwill Generated, Grounds for Generation, Amortization Method, and Amortization
Period(i)

Amount of goodwill¥491,127 thousand
Regarding amount of goodwill, the allocation of the acquisition cost was not completed and was
accounted for on a provisional basis in the third quarter of the fiscal year under review. However, it
was finalized at the end of the fourth quarter of the fiscal year under review. No adjustments were14

made to the amount of goodwill.
(ii)

Grounds for generation
This was generated due to the excess earning power expected from future business development.

(iii)

Amortization method and period
Straight-line amortization over 10 years

(5)

(6)

Amounts of the Assets Acquired and Liabilities Assumed on the Date of the Business Combination and
Major Breakdown Thereof
Current assets¥234,441 thousand

Non-current assets¥76,416 thousand

Total assets¥310,857 thousand

Current liabilities¥93,484 thousand

Non-current liabilities¥158,500 thousand

Total liabilities¥251,984 thousand

Estimated Amount and Calculation Method of the Impact on the Consolidated Statements of Income for
the Fiscal Year under Review Assuming That the Business Combination Had Been Completed on the
Beginning Date of the Fiscal Year (Non-audit Information)
The description is omitted due to lack of materiality.

15

Per share information(Yen)
Fiscal year ended
March 31, 2022
Net assets per share
Earnings per share

Fiscal year ended
March 31, 2023

737.40778.02

93.36
Diluted earnings per share
84.36
Note: 1 The calculations for the earnings per share and the diluted earnings per share are based on the following.
Fiscal year ended
March 31, 2022

60.58
60.15

Fiscal year ended
March 31, 2023

Earnings per share
Profit attributable to owners of parent(thousand yen)
Profit not attributable to common shareholders(thousand yen)
Profit attributable to owners of parent pertaining
to common shares (thousand yen)
Average number of common shares during theperiod (thousand shares)

2,040,725

1,390,174––

2,040,725

1,390,174

21,85822,947

–

–

2,332

165

[2,332]

[165]

–

–

Diluted earnings per share
Adjustments to profit attributable to owners ofparent (thousand yen)
Number of increased common shares (thousand
shares)[Share acquisition rights (thousand shares)]
Overview of dilutive shares not included in
calculating diluted earnings per share due to no
dilutive effectSignificant events after the reporting period
There is nothing to report.

16

4. Non-consolidated Financial Statements and Significant Notes Thereto(1) Non-consolidated balance sheets
As of March 31, 2022

(Thousands of yen)
As of March 31, 2023

259,786
665,123
2,289,892
734,626
115,821266,997
53,088857,630
630,5022,069,043
768,538
95,977
252,279
66,6982,455,899

2,056,956

87,429(1,975)
6,926,689

124,332(776)
6,921,181

471,8540000639,951
1,111,808

478,6000000639,951
1,118,554

–

–

386
2,045,665
6,295

386
2,647,773
5,995

3,995,672

3,995,672

1,603
1,865

–
2,510

2,141,825

2,270,010

9,819
67,50371,824(2,145,778)
6,196,683
7,308,491
14,235,180

7,927
40,59571,408(2,179,462)
6,862,816
7,981,370
14,902,552

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Prepaid expenses
Accounts receivable from subsidiaries and associates- other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Total property, plant and equipment
Intangible assets
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital
Investments in capital of subsidiaries andassociates
Long-term loans receivable
Distressed receivables
Long-term loans receivable from subsidiaries andassociates
Long-term loans receivable from employees
Prepaid pension costs
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

17

As of March 31, 2022

(Thousands of yen)
As of March 31, 2023

23,499
1,078,059
999,738
1,774,655
700,970
722,535
110,054
305,430
22,260374,010
17,183148,091
6,276,488

137,722
999,425
790,1731,300,590
705,660
585,680
95,906250,279
23,212
332,494–
74,3755,295,520

883,744184
1,019,124
114,093
80,651
2,097,799
8,374,287

534,189140
1,039,748
115,988
8,871
1,698,936
6,994,457

2,944,776

3,406,477

491,2402,020,948
2,512,189

952,9412,014,725
2,967,666

63,97098,589210,000
240,128514,098(136,301)
5,834,762
26,1305,860,893
14,235,180

210,000
1,299,041
1,607,631(94,544)7,887,231
20,863
7,908,094
14,902,552

Liabilities
Current liabilities
Notes payable - trade
Electronically recorded obligations - operating
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Deposits received
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provision for retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Share acquisition rights
Total net assets
Total liabilities and net assets

18

(2) Non-consolidated statements of income
Fiscal year ended
March 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Reversal of allowance for doubtful accounts
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net profit

19(Thousands of yen)
Fiscal year ended
March 31, 2023

15,092,217
11,051,260
4,040,957
3,995,128
45,828

14,777,332
10,832,090
3,945,241
4,001,158(55,917)

22,3582,794,456
20,754
2,837,569

51,3932,230,630
40,6942,322,718

37,122–
201,471
26,289264,8832,618,514

59,542
105,529
190,665
27,404
383,141
1,883,659

1,774
91,016
92,79029
157,576
157,605488
159,926
160,4142,550,890
322,828(6)
322,8222,228,068

18,888297,924
316,8121,724,453
284,770(44)284,726
1,439,727

(3) Non-consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Thousands of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of
periodLegal capitalsurplus

Other capitalsurplus

Total capitalsurplus

Legal retained
earnings

2,897,732

431,094

2,159,551

2,590,646

63,97047,04447,044General reserve
210,000

Retainedearnings
brought
forward

Total retained
earnings(1,987,939)(1,713,969)

2,228,068

2,228,068

Changes during period
Issuance of newsharesDividends ofsurplus13,10147,044(144,114)(131,013)

Net profit
Disposal of treasury
shares

5,511

5,511

Net changes in
items other thanshareholders’ equity
Total changes during
periodBalance at end of
period47,04460,145(138,603)(78,457)––

2,228,068

2,228,068

2,944,776

491,2402,020,948

2,512,189

63,970210,000

240,128514,098

Shareholders’ equity
Total
Treasury shares shareholders’equityBalance at beginning of
period(149,905)

3,624,504

Shareacquisitionrights26,970Total net assets

3,651,474

Changes during period
Issuance of newsharesDividends ofsurplus
Net profit
Disposal of treasury
shares13,60394,08894,088(131,013)(131,013)

2,228,068

2,228,068

19,115

19,115

Net changes in
items other thanshareholders’ equity
Total changes during
periodBalance at end of
period

(839)

(839)

13,6032,210,258(839)

2,209,418(136,301)

5,834,762

26,1305,860,893

20

Fiscal year ended March 31, 2023
(Thousands of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of
periodLegal capitalsurplus

Other capitalsurplus

Total capitalsurplus

Legal retained
earnings

2,944,776

491,2402,020,948

2,512,189

63,970461,701

461,701

General reserve
210,000

Retainedearnings
brought
forward

Total retained
earnings

240,128514,098(380,813)(346,194)1,439,727

1,439,727

Changes during period
Issuance of newsharesDividends ofsurplus461,701
34,619Net profit
Disposal of treasury
shares(6,223)(6,223)

Net changes in
items other thanshareholders’ equity
Total changes during
periodBalance at end of
period461,701

461,701(6,223)455,477

34,619–1,058,913

1,093,532

3,406,477

952,9412,014,725

2,967,666

98,589210,000

1,299,041

1,607,631

Shareholders’ equity
Total
Treasury shares shareholders’equityBalance at beginning of
period(136,301)

5,834,762

Shareacquisitionrights26,130Total net assets

5,860,893

Changes during period
Issuance of newsharesDividends ofsurplus
Net profit
Disposal of treasury
shares41,757923,402923,402(346,194)(346,194)1,439,727

1,439,727

35,53335,533

Net changes in
items other thanshareholders’ equity
Total changes during
periodBalance at end of
period(5,267)(5,267)41,7572,052,468(5,267)2,047,201(94,544)7,887,231

20,863

7,908,09421