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, 2022
(Based on Japanese GAAP)
November 10, 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
Inquiries:
Chief Financial Officer
Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

Tetsuji Morikubo
Takao Murata
November 11, 2022
December 9, 2022

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
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 six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(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, 2022
21,665
11.0
1,537 (13.1)
1,524 (12.2)
905 (28.0)
Six months ended September 30, 2021
19,52326.7
1,768 464.7
1,736 365.7
1,258–Earnings per share

Diluted earnings per share

Yen
40.62
57.67

Six months ended September 30, 2022
Six months ended September 30, 2021

Yen
40.20
57.56

(2) Consolidated financial position
Total assets

Net assets

Millions of yen
32,44928,774As of September 30, 2022
As of March 31, 2022

Equity ratio

Millions of yen
19,271
16,307

%
59.2
56.5

2. Cash dividends
1st quarter-end
Year ended March 31, 2022
Year ending March 31, 2023
Year ending March 31, 2023 (Forecast)

Annual dividends per share
2nd quarter-end
3rd quarter-end
Fiscal year-end

Yen––

Yen
4.00
6.50

TotalYen–

Yen
9.00

Yen
13.00

–

6.50

13.00

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Net sales

Full year

Millions of yen
44,300Percentages 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
12.6
3,100
1.9
3,070
2.1
1,850(9.3)
81.42

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:
Restatement of prior period financial statements:

No
No
No

(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, 2022

22,962,400 shares As of March 31, 2022

22,332,400 shares

Number of treasury shares at the end of the period
As of September 30, 2022

241,539 shares As of March 31, 2022

275,868 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

22,303,554 shares Six months ended September 30, 2021

221,827,306 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and depositsAs of September 30, 2022

4,816,271

5,089,894

Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Work in process

2,043,258
9,191,812
2,408,754
813,141

1,520,497
11,413,051
2,830,131
822,125

Raw materials and supplies
Other
Allowance for doubtful accounts

1,569,159
485,384(48,002)

1,769,728
724,196(41,705)

Total current assets

21,279,780

24,127,919

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

5,905,167

6,311,618(4,140,358)(4,398,855)

Buildings and structures, net

1,764,809

1,912,762

Machinery, equipment and vehicles
Accumulated depreciation

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

17,954,399(13,825,208)

3,606,712

4,129,190

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

2,809,188(2,309,661)

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation

432,538

499,526

Land

Tools, furniture and fixtures, net

778,847

785,006

Construction in progress
Other
Accumulated depreciation

168,440
392,570(131,311)

229,032
493,585(226,243)

261,259

267,342

7,012,607

7,822,861

177,903

202,542

177,903

202,542

Investments and other assets
Investments and other assets
Allowance for doubtful accounts

317,431(13,623)

311,952(15,326)

Total investments and other assets

303,807296,626

Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets

Total non-current assets
Total assets

3

7,494,318

8,322,031

28,774,098

32,449,950

(Thousands of yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

2,738,725
1,078,059

3,453,725
1,121,407

Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses

1,774,655
710,978
384,126
400,265

1,665,315
877,560
387,972
888,808

Provision for directors’ bonuses
Other17,183
2,897,059

7,873
2,178,933

Total current liabilities

10,001,052

10,581,595

Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other907,890
1,145,220
412,726

876,299
1,224,474
495,751

Total non-current liabilities

2,465,836

2,596,525

Total liabilities

12,466,888

13,178,120

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

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

3,074,778
2,660,085
9,745,101(119,343)

14,378,256

15,360,622

1,962,065(75,761)

3,983,455(118,531)

1,886,303

3,864,924

26,13016,51824,681
21,601

16,307,209

19,271,830

28,774,098

32,449,950

Total shareholders' equity
Accumulated other comprehensive incomeForeign 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

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended
September 30, 2021

Six months ended
September 30, 2022

Net sales

19,523,718

21,665,915

Cost of sales

13,659,592

15,617,085

Gross profit

5,864,1266,048,830

Selling, general and administrative expenses

4,095,613

4,511,588

Operating profit

1,768,512

1,537,241

23,63428,450Gain on sale of scraps
Other

10,80625,211

18,02520,787

Total non-operating income

59,652

67,26330,23047,11514,801

26,76445,255
7,504

Non-operating income
Interest income

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses

92,147

79,524

1,736,017

1,524,981

Extraordinary income
Gain on sale of non-current assets

1,425

4,241

Total extraordinary income

1,425

4,241

2,455
47,963

9,992
101,331

Ordinary profit

Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses

50,419111,323

Profit before income taxes

Total extraordinary losses

1,687,024

1,417,899

Income taxes - current
Income taxes - deferred

366,84459,834

356,068
153,280

Total income taxes

426,678

509,349

1,260,345

908,550

1,500

2,681

1,258,845

905,869

Net Profit
Profit attributable to non-controlling interests
Profit attributable to owners of parent5Consolidated statements of comprehensive income (cumulative)(Thousands of yen)Six months ended
September 30, 2021
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 of parent
Comprehensive income attributable to non-controllinginterests

6

Six months ended
September 30, 2022

1,260,345

908,550

1,039,706

2,023,791

16,051(42,769)

1,055,758

1,981,021

2,316,103

2,889,572

2,314,173

2,884,4891,930

5,082

Consolidated statements of cash flows(Thousands of yen)Six months ended
September 30, 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 for directors (andother officers)
Increase (decrease) in provision for bonuses
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, and accrued
expenses
Other, net

Six months ended
September 30, 2022

1,687,024
470,041
47,96334,432

1,417,899
554,947
101,331
17,144

10,991(9,310)388,495(4,950)(23,634)
30,230(680)
1,030(503,073)
112,169
322,892

455,309(10,401)(28,450)
26,764
4,692
5,750(148,109)(142,061)(34,581)(565,237)(888,764)(172,608)(126,025)

Subtotal

1,835,086

1,196,134

Interest and dividends received
Interest paid
Income taxes paid

23,634(32,008)(433,917)

28,450(12,610)(386,427)

Net cash provided by (used in) operating activities

1,392,795

825,547(29,904)(568,230)
3,588(24,402)–
4,851(40,494)
16,688(1,000)36,063(600,803)
11,166(50,703)
5
4,102(5,231)
16,658–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
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities(638,902)(588,742)

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 sharesDividends paid
Other, net(647,713)–(358,934)(40,719)(40,187)–(43,637)4(367,170)
367,170(362,634)(41,623)(77,121)258,555(198,508)–

Net cash provided by (used in) financing activities(1,131,188)(421,332)

Effect of exchange rate change on cash and cash equivalents

276,774494,213

Net increase (decrease) in cash and cash equivalents(100,520)

309,686

Cash and cash equivalents at beginning of period

3,962,135

4,669,180

Cash and cash equivalents at end of period

3,861,614

4,978,867

7