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:
PUNCH INDUSTRY CO., LTD.
Stock exchange listing: Tokyo
Stock code:
6165
URL http://www.punch.co.jp/ir/
Representative:
Chief Executive Officer
Tetsuji Morikubo
Inquiries:
Chief Financial Officer
Takao Murata
TEL 03-5753-3130
Scheduled date of ordinary general meeting of shareholders:June 23, 2022
Scheduled date to file Securities Report:
June 24, 2022
Scheduled date to commence dividend payments:
June 24, 2022
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes(for institutional investors and analysts)(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 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, 2022
39,358
21.2
3,041
88.5
3,007
79.4
2,040 327.2
Year ended March 31, 2021
32,462
(8.2)
1,613
93.0
1,676 135.1
477–
Note: Comprehensive income

Year ended March 31, 2022:
Year ended March 31, 2021:
Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
84.36
14.2
11.2
7.7
21.78
4.0
6.7
5.0

Diluted earnings per
share

Yen
93.36
21.90

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

¥3,889 million [431.6 %]¥731 million [–%]

Note: Share of profit (loss) of entities accounted for using equity method Year ended March 31, 2022:
Year ended March 31, 2021:¥– million¥– million(2) Consolidated financial position
Total assets
Millions of yen
28,77424,702As of March 31, 2022
As of March 31, 2021
Reference: Equity

As of March 31, 2022:
As of March 31, 2021:

Net assets
Millions of yen
16,307
12,436Equity ratio

Net assets per share
%
56.5
50.2

Yen
737.40568.26¥16,264 million¥12,398 million(3) Consolidated cash flows

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

Cash flows fromoperating activities
Millions of yen
2,941
2,942

Cash flows frominvesting activities
Millions of yen(1,099)(670)

Cash and cash equivalents
Cash flows fromfinancing activities
at end of period
Millions of yen
Millions of yen(1,600)4,669(1,684)3,962

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

%

%

–
–

0.00
4.00

–
–

2.00
9.00

2.00
13.00

43
285

9.1
13.9

0.4
2.0

–

6.50

–

6.50

13.00

13.7

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 to
Net sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
21,500
10.1
1,660
(6.1)
1,640
(5.5)
1,070 (15.0)
48.51
September 30, 2022
Full year
43,500
10.5
3,300
8.5
3,270
8.7
2,100
2.9
94.99
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:
Yes
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
No
Restatement of prior period financial statements:
No
Note: For details, please refer to “3. Consolidated Financial Statements Significant Notes Thereto, (5) Notes on consolidated financial
statements, Changes in accounting policies” on page 12 of the attached material.
(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

22,332,400 shares As of March 31, 2021

22,122,400 shares

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

275,868 shares As of March 31, 2021

303,406 shares

21,858,118 shares Year ended March 31, 2021

21,813,902 shares

Average number of shares during the period
Year ended March 31, 2022

(Reference) Overview of non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net sales
Operating profit
Ordinary profit
ProfitYear ended March 31, 2022
Year ended March 31, 2021

Millions of yen
15,092
13,240%14.0(13.5)

Earnings per share

Millions of yen
45
(402)

Millions of yen%
2,618 168.9
973 34.6

Millions of yen
2,228
130

%
–
–

Diluted earnings per share

Yen
101.93
5.96

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

%
–
–

Yen
92.10
5.93

(2) Non-consolidated financial position
Total assets
Millions of yen
14,235
12,672As of March 31, 2022
As of March 31, 2021
Reference: Equity

As of March 31, 2022:
As of March 31, 2021:

Net assets

Equity ratio

Millions of yen
5,860
3,651

Net assets per share
%
41.0
28.6

Yen
264.54166.12¥5,834 million¥3,624 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 27, 2022.

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
Changes in accounting policies ...................................................................................................................... 12
Segment information, etc. ............................................................................................................................... 13
Per share information...................................................................................................................................... 15
Significant events after the reporting period................................................................................................... 15
4. Non-consolidated Financial Statements and Significant Notes Thereto ............................................................. 16(1) Non-consolidated balance sheets .................................................................................................................... 16(2) Non-consolidated statements of income ......................................................................................................... 18(3) Non-consolidated statements of changes in equity ......................................................................................... 19

1

1. Overview of Operating Results, Etc.
(1)

Overview of operating results for the period
The global economy during the current fiscal year saw the progress of normalization of economic and social
activities led by developed countries, resulting from the balance of the measures against the novel
coronavirus disease (hereinafter “COVID-19”) and the relaxation of restrictions on economic activity.
However, progress was halted by developments such as the emergence of new variants and their spread, theincrease of geopolitical risk, and the disturbance of supply chains. Harsh conditions continue. In the
manufacturing sector, the future remains uncertain for reasons including the marked increase of crude oiland raw material costs and the shortage of certain components, especially semiconductor components.
In such an environment, the Group worked to rebuild financially from the negative effects of the prolonged
US-China trade friction and COVID-19 with its Mid-term Business Plan “Value Creation (VC) 2020 Plus”
that had started in April 2020. The Group achieved its goal of a V-shaped recovery.
The consolidated operating results for the current fiscal year surpassed those of the previous fiscal year in all
regions, riding on the general conditions of recovery from the spread of COVID-19. Net sales amounted to¥14,020 million (up 13.6% year on year) for Japan; ¥20,956 million (up 24.1% year on year) for China;¥1,740 million (up 26.4% year on year) for Southeast Asia; and ¥2,641 million (up 42.2% year on year) for
Europe and the United States. This brought consolidated net sales to ¥39,358 million (up 21.2% year onyear).
All results by industry also surpassed those of the previous fiscal year. The results were ¥16,442 million (up20.2% year on year) for automobile; ¥8,043 million (up 27.4% year on year) for electronic devices &semiconductors; ¥4,192 million (up 7.8% year on year) for consumer electronics & precision equipment;and ¥10,679 million (up 24.5% year on year) for other.
As for profits, the Company posted the highest since it was listed. The rise in selling, general andadministrative expenses accompanying the increase in sales was countered by the improved cost rate due toeffects of increased revenue and raised factory operation and other factors such as reductions fordepreciation as a result of recording impairment losses of past years. Operating profit was ¥3,041 million(up 88.5% year on year); ordinary profit was ¥3,007 million (up 79.4% year on year); and profit attributableto owners of parent was ¥2,040 million (up 327.2% year on year).

(2)

Overview of financial position for the period
AssetsTotal assets as of the end of the current fiscal year amounted to ¥28,774 million, an increase of ¥4,071
million compared with the end of the previous fiscal year. This was mainly due to an increase of tradereceivables.
Liabilities
Total liabilities amounted to ¥12,466 million, an increase of ¥200 million compared with the end of theprevious fiscal year. This was mainly due to an increase in trade payables and a decrease in interestbearing debt.
Net Assets
Total net assets amounted to ¥16,307 million, an increase of ¥3,870 million compared with the end of theprevious fiscal year. This was mainly due to an increase of retained earnings as a result of recording profit
attributable to owners 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 ¥707 million compared to theend of the previous fiscal year and amounted to ¥4,669 million.
Cash flows from operating activities
Net cash provided by operating activities for the current fiscal year amounted to ¥2,941 million(compared to ¥2,942 million provided for the previous fiscal year).
This was mainly due to profit before income taxes of ¥2,847 million and non-cash items such as
impairment losses of ¥159 million and depreciation of ¥971 million, as well as an increase of tradereceivables by ¥286 million and income taxes paid of ¥732 million.
Cash flows from investing activities
Net cash used in investing activities for the current fiscal year amounted to ¥1,099 million (compared to¥670 million used for the previous fiscal year).
This was mainly due to purchase of property, plant and equipment of ¥999 million.
Cash flows from financing activities
Net cash used in financing activities for the current fiscal year amounted to ¥1,600 million (compared to¥1,684 million used for the previous fiscal year.)This was mainly due to net increase (decrease) of short-term borrowings of ¥739 million, repayments oflong-term borrowings of ¥653 million, and dividends paid of ¥131 million.

(4) Future prospects
The environment surrounding the management of the Group is one of general recovery, of the normalizationof economic and social activities led by developed countries resulting from the balance of the measuresagainst COVID-19 and the relaxation of restrictions on economic activity. In the manufacturing sector,
however, the future is still uncertain for reasons including the marked increase of crude oil and raw material
costs and the shortage of certain components, especially semiconductor components, as well as the threat of
COVID-19, which continues to produce variants and shows no sign of abating.
Under this recognition of the current state, the Company announced its three-year mid-term business plan
“VC 2024” to work on initiatives that were not completed under the previous mid-term business plan and towork with new policies to increase corporate value. This plan, which commenced in April 2022, declaredthat always being the “customer’s first choice” is the Company’s “ideal state” and poised the use of“automation and labor-saving demand as the new growth engine.” With “Expansion of new and existing
businesses,” “Strengthening the production system,” and “Strengthening R&D” as the three priority
initiatives, the Company will pursue “DX promotion,” “Financial strategy,” and “Sustainability” tostrengthen the management foundations that will support the pursuit of the initiatives.
The prospective consolidated financial performance for the following fiscal year (ending March 31, 2023)
forecasted by the company is an increase in revenue and profit. The company forecasts net sales of ¥43,500
million (an increase of 10.5% year on year); operating profit of ¥3,300 million (an increase of 8.5% year onyear); ordinary profit of ¥3,270 million (an increase of 8.7% year on year); and profit attributable to ownersof parent of ¥2,100 million (an increase of 2.9% year on year).
The foregoing forecast of financial results have been prepared based on information currently obtainable by
the Company as of the publication date of this document, and actual financial performance may differ fromthe 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 isconsidering the voluntary 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 ofaffairs in Japan and the globe.

33. Consolidated Financial Statements and Significant Notes Thereto(1)Consolidated balance sheets(Thousands of yen)
As of March 31, 2021

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

As of March 31, 2022

4,092,012
1,542,116
8,087,626
2,053,536
532,853
1,378,841
429,129(55,416)

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

18,060,701

21,279,780

5,351,094(3,830,312)

5,905,167(4,140,358)

Buildings and structures, net

1,520,782

1,764,809

Machinery, equipment and vehicles
Accumulated depreciation

14,824,703(11,570,501)

16,310,582(12,703,869)

3,254,202

3,606,712

2,332,870(1,922,961)

2,514,054(2,081,516)

409,908

432,538

775,341
60,862
255,554(82,115)

778,847
168,440
392,570(131,311)

173,438

261,259

6,194,535

7,012,607

175,119

177,903

175,119

177,903110,804
178,857(17,486)

118,693
198,737(13,623)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
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
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

4272,175

303,807

6,641,830

7,494,318

24,702,531

28,774,098

(Thousands of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Accrued expenses
Provision for bonuses
Provision for bonuses for directors (and other officers)
Other

As of March 31, 2022

2,342,543
954,991
2,007,163
1,317,488
270,698
1,155,002
271,444–
1,135,535

2,738,725
1,078,059
1,774,655
710,978
384,126
1,540,016
400,265
17,183
1,357,042

Total current liabilities

9,454,866

10,001,052

Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other1,251,698
1,083,928
475,800

907,890
1,145,220
412,726

Total non-current liabilities

2,811,426

2,465,836

Total liabilities

12,266,293

12,466,888

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares

2,897,732
2,590,646
7,016,866(149,905)

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

12,355,340

14,378,256

119,846(76,306)

1,962,065(75,761)

43,5401,886,303

26,97010,386

26,13016,51812,436,237

16,307,209

24,702,531

28,774,098

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

(2)

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income

Net sales
Cost of sales

Fiscal year ended
March 31, 2021
32,462,017
23,375,159(Thousands of yen)
Fiscal year ended
March 31, 2022
39,358,634
27,913,724

Gross profit

9,086,857

11,444,910

Selling, general and administrative expenses

7,473,695

8,403,308

Operating profit

1,613,162

3,041,601

42,65927,338249
179,533
44,64553,047
27,879–20,54228,960294,425

130,430

Non-operating income
Interest income
Gain on sale of scraps
Dividend income
Subsidies for employment adjustment
Other
Total non-operating income
Non-operating expenses
Interest expenses

107,41453,909Foreign exchange losses
Other

75,231
48,422

73,22537,243

Total non-operating expenses

231,068

164,378

1,676,518

3,007,653

1,669

6,035

81,581–

83,2506,035

15,011
730,296

5,953
159,926

745,307

165,880

Profit before income taxes

1,014,462

2,847,808

Income taxes - current
Income taxes - deferred

539,799(4,133)805,177(2,994)

Total income taxes

535,666

802,183

Net profit

478,796

2,045,624

1,081

4,899

477,7142,040,725

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on reversal of reserve for loss on dissolution of
employee’s pension fundTotal extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Total extraordinary losses

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

6

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

Fiscal year ended
March 31, 2021
478,796(Thousands of yen)
Fiscal year ended
March 31, 2022
2,045,624

216,20236,614

1,843,452
544

252,817

1,843,996

Comprehensive income

731,6133,889,621

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

731,163450

3,883,489
6,132

7

(3)

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

2,897,732

Retained earnings

2,631,489

Total shareholders’

Treasury shares

6,539,152

equity(154,543)

11,913,830

Changes during period
Issuance of new shares
Dividends of surplus(43,619)

Profit attributable to owners ofparent(43,619)477,714

Disposal of treasury shares

477,714

2,776

4,638

7,414

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period–(40,842)

477,714

4,638

441,5092,897,732

2,590,646

7,016,866(149,905)

12,355,340

Accumulated other comprehensive income
Foreigncurrencytranslation
adjustment
Balance at beginning of period(96,987)

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive

ShareacquisitionrightsNon-controllinginterests

Total net assets

income(112,920)(209,908)

33,4799,936

11,747,338

Changes during period
Issuance of new shares
Dividends of surplus(43,619)

Profit attributable to owners ofparent477,714

Disposal of treasury shares

7,414

Net changes in items otherthan shareholders’ equity

216,834

Total changes during period
Balance at end of period

36,614

253,448

216,834

36,614

253,448(6,509)450

688,899

119,846(76,306)

43,54026,97010,386

12,436,237

8(6,509)450

247,389

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 of

2,040,725

parentDisposal of treasury shares

2,040,725

5,511

13,603

19,115

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

47,044(78,457)

2,040,725

13,6032,022,915

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
Remeasurementsof defined benefit

accumulated
othercomprehensive
incomeplans(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 of

2,040,725

parentDisposal of treasury shares
Net changes in items other

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

than shareholders’ equity

9

(4)

Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in reserve for loss on dissolution of
employee’s pension fundInterest and dividend income
Interest expenses
Subsidies for employment adjustment
Foreign exchange losses (gains)
Loss (gain) on sale and retirement of non-current assets

1,014,462
968,873730,296
56,2452,582

2,847,808
971,746
159,926
61,324
128,343–

17,183(34,938)(16,968)(92,819)–(42,908)
107,414(179,533)(43,289)
13,341(53,047)
53,909(20,542)699(81)

Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other, and accrued
expenses
Other, net

433,563276,749(250,751)(286,768)(417,353)
25,882

280,654

168,135

100,979

26,783

Subtotal

3,340,922

3,666,982

Interest and dividends received
Interest paid
Subsidies for employment adjustment received
Income taxes paid

42,908(122,869)
179,533(497,718)

53,047(66,319)
20,542(732,778)

Net cash provided by (used in) operating activities

2,942,775

2,941,474

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 sale of investment securities
Proceeds from collection of long-term loans receivable(106,212)(502,981)
9,879(80,647)315
14,201
8,519(999,260)
10,997(73,376)––
9,948

Long-term loan advances
Other, net(13,830)
555(4,650)(26,006)

Net cash provided by (used in) investing activities(670,198)(1,099,559)

10(17,212)(Thousands of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2021
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
Proceeds from issuance of shares
Dividends paid
Other, net(338,342)
50,000(1,220,016)(80,111)(52,643)––(43,619)9(739,954)–(653,228)(81,889)(94,166)
5,750
93,605(131,013)
6

Net cash provided by (used in) financing activities(1,684,722)(1,600,888)

8,185

466,019

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

596,040

707,045

Cash and cash equivalents at beginning of period

3,366,094

3,962,135

Cash and cash equivalents at end of period

3,962,135

4,669,180

11

(5)

Notes on consolidated financial statements
Notes related to the going concern assumption
There is nothing to report.
Changes in accounting policies
Application of Accounting Standard for Revenue Recognition, Etc.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and relevant ASBJ regulations from the beginning of the current fiscal year, and it hasrecognized revenue at the time the control of promised goods or services is transferred to the customer at
the amount expected to be received upon exchange of said goods or services. It has applied the alternative
accounting treatment provided for in paragraph 98 of the “Implementation Guidance on AccountingStandard for Revenue Recognition” and, for domestic sales of merchandise or finished goods, recognizes
revenue at the time the said merchandise or finished goods is shipped if the time elapsed from the time theproduct is shipped to the time the control of said goods is transferred to the customer is of an ordinary
duration.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard
for Revenue Recognition. The opening balance of retained earnings of the current fiscal year was adjustedwith the cumulative effect of applying the new accounting policy retrospectively prior to the beginning of
the current fiscal year, and the new accounting policy was applied from the opening balance of the current
fiscal year as a change in the accounting policy.
There is no resulting effect on the gains or losses of the current fiscal year. Neither is there an effect on the
opening balance of retained earnings of the current fiscal year.

Application of Accounting Standard for Fair Value Measurement, Etc.
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant ASBJ regulations from the beginning of the current fiscal year under review,
and it has applied the new accounting policy provided for by the Accounting Standard for Fair Value
Measurement, etc. prospectively in accordance with the transitional measures provided for in paragraph 19of the Accounting Standard for Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard
for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no effect of the foregoing on
the consolidated financial statements of the current fiscal year.

12Segment information, etc.
[Segment Information]
This information is omitted because the Group has only one segment, the parts of molds and diesbusiness.

[Related Information]
Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
1. Information by Finished Goods or Service
This information is omitted because the Group’s net sales to external customers in one category offinished 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

12,338,335

16,888,743

3,234,938

32,462,017

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

(2) Property, plant and equipment
Japan

China

Other

1,527,010

4,026,494

641,030(Thousands of yen)Total
6,194,535

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 ofincome.
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 offinished 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 ofincome.

13

[Information on Impairment Losses on Non-Current Assets by Reporting Segment]
Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
Consolidated impairment losses on non-current assets recorded in the current fiscal year amounted to¥730,296 thousand. The information is not presented by reporting segment because the Group has only
one segment, the parts of molds and dies business.
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, the parts of molds and dies business.
[Information on Amortization and Unamortized Balance of Goodwill by Reporting Segment]
There is nothing to report.
[Information on Gain on Bargain Purchase by Reporting Segment]
There is nothing to report.

14Per share information(Yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net assets per share568.26737.40Earnings per share

21.90

93.36

Diluted earnings per share
21.78
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, 2021

Fiscal year ended
March 31, 2022

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

477,7142,040,725––

477,7142,040,725

21,813

21,858

–

–

120

2,332

[120]

[2,332]––

Diluted earnings per share
Adjustments to profit attributable to owners ofparent (thousands of 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.

15

4. Non-consolidated Financial Statements and Significant Notes Thereto(1)Non-consolidated balance sheets(Thousands of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits

392,839259,786

Notes receivable - trade

540,718

665,123

Accounts receivable - trade2,189,951

2,289,892

Merchandise and finished goods

775,086

734,626

Work in process

91,833

115,821

Raw materials and supplies

253,102

266,9971–

49,42353,0881,100,436

2,455,899

45,430–90,72687,429(3,829)(1,975)

5,525,722

6,926,689

487,758

471,854

Advance payments to suppliers
Prepaid expenses
Accounts receivable from subsidiaries and associates other
Short-term loans receivable from subsidiaries andassociates
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures

00

Machinery and equipment

00Vehicles00

Tools, furniture and fixtures

00639,951

639,951

1,127,712

1,111,808

–

–

386

386

2,045,665

2,045,665

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

6,295

6,295

3,785,672

3,995,672

Long-term loans receivable

7,063

1,603

Distressed receivables
Long-term loans receivable from subsidiaries andassociates
Long-term loans receivable from employees

2,980

1,865

2,025,993

2,141,825

Investments in capital of subsidiaries and associates

10,3759,819

Prepaid pension costs

94,59767,503

Other

76,792

71,824

Allowance for doubtful accounts(2,036,480)(2,145,778)

Total investments and other assets

6,019,340

6,196,683

7,147,052

7,308,491

12,672,775

14,235,180

Total non-current assets
Total assets

16

(Thousands of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Notes payable - trade

38,89923,499

Electronically recorded obligations - operating

954,991

1,078,059

Accounts payable - trade989,421

999,738

Short-term borrowings

2,007,163

1,774,655

Current portion of long-term borrowings

1,307,480

700,970

Accounts payable - other616,477

722,535

Accrued expenses

103,335

110,054

Income taxes payable

158,520

305,430

Deposits received

22,323

22,260

Unearned revenue

198–

246,032

374,010–

17,183

Provision for bonuses
Provision for bonuses for directors (and other officers)
Other
Total current liabilities

90,942148,091

6,535,785

6,276,488

1,217,544

883,744

Non-current liabilities
Long-term borrowings
Deferred tax liabilities

190

184

Provision for retirement benefits

991,183

1,019,124

Asset retirement obligations

112,238

114,093

Other

164,357

80,651

2,485,514

2,097,799

9,021,300

8,374,287

2,897,732

2,944,776

431,094491,240

Other capital surplus

2,159,551

2,020,948

Total capital surplus

2,590,646

2,512,189

63,97063,970210,000

210,000(1,987,939)

240,128

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus

Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward(1,713,969)

514,098

Treasury shares

Total retained earnings(149,905)(136,301)

Total shareholders’ equity

3,624,504

5,834,762

Share acquisition rights
Total net assets
Total liabilities and net assets

17

26,97026,1303,651,474

5,860,893

12,672,775

14,235,180

(2)Non-consolidated statements of income
Fiscal year ended
March 31, 2021
13,240,271(Thousands of yen)
Fiscal year ended
March 31, 2022
15,092,217

Cost of sales

9,745,000

11,051,260

Gross profit

3,495,270

4,040,957

Selling, general and administrative expenses

3,897,965

3,995,128

Operating profit (loss)(402,695)

45,828Interest income

65,50022,358Dividend income

1,335,973

2,794,456

156,291

20,754

1,557,766

2,837,569

Interest expenses

87,547

37,122Foreign exchange losses

25,471–

Provision of allowance for doubtful accounts

28,938201,471

Net sales

Non-operating income

Other
Total non-operating income
Non-operating expenses

Other

39,356

26,289Total non-operating expenses

181,314

264,883

Ordinary profit

973,756

2,618,514

Extraordinary income
Gain on reversal of reserve for loss on dissolution of
employee’s pension fundGain on sale of non-current assets

81,581–

Reversal of allowance for doubtful accounts
Total extraordinary income

108

1,774

–

91,016

81,68992,790Extraordinary losses
Loss on sale and retirement of non-current assets

7,997

488

Impairment losses

730,058

159,926

Total extraordinary losses

738,056

160,414

Profit before income taxes

317,3902,550,890

Income taxes - current

187,521322,828

Income taxes - deferred

(246)

(6)

Total income taxes

187,274

322,822

Net profit

130,1152,228,068

18

(3)

Non-consolidated statements of changes in equity
Fiscal year ended March 31, 2021
(Thousands of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of
period2,897,732

Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus

Legal retained
earnings

2,626,732

4,756

2,631,489

63,970(2,200,000)

2,200,000

–

4,361

(47,981)(43,619)

General reserve
210,000

Retainedearnings
brought
forward

Total retained
earnings(2,118,055)(1,844,085)

130,115130,115

Changes during period
Issuance of newsharesTransfer from legal
capital surplus toother capital surplus
Dividends of surplus
Net profit
Disposal of treasury
shares

2,776

2,776

Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period–(2,195,638)

2,154,795(40,842)––

130,115130,115

2,897,732

431,094

2,159,551

2,590,646

63,970210,000(1,987,939)(1,713,969)

Shareholders’ equity

Balance at beginning of
periodTreasury shares

Total
shareholders’equity(154,543)

3,530,593

ShareacquisitionrightsTotal net assets

33,4793,564,072

Changes during period
Issuance of newsharesTransfer from legal
capital surplus toother capital surplus––

Dividends of surplus(43,619)(43,619)

Net profit

130,115130,115

7,414

7,414

Disposal of treasury
shares4,638

Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(6,509)(6,509)4,638

93,910(6,509)87,401(149,905)

3,624,504

26,9703,651,474

19

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 newsharesTransfer from legal
capital surplus toother capital surplus
Dividends of surplus

13,10147,044(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 period

47,04460,145(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

Balance at beginning of
periodTreasury shares

Total
shareholders’equity(149,905)

3,624,504

ShareacquisitionrightsTotal net assets

26,9703,651,474

Changes during period
Issuance of newsharesTransfer from legal
capital surplus toother capital surplus

94,08894,088Dividends of surplus(131,013)(131,013)

Net profit

2,228,068

2,228,068

19,115

19,115

Disposal of treasury
shares13,603

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