Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the Nine Months Ended December 31, 2023
(Under Japanese GAAP)
February 9, 2024
Company name:
Onoken Co., Ltd.
Listing:
Tokyo Stock Exchange, Fukuoka Stock Exchange
Securities code:
7414
URL:
http://www.onoken.co.jp/
Representative:
Ken Ono, President
Inquiries:
Tetsuji Ono, Executive Managing Director, Management Control Division
Telephone:+81-93-561-0036
Scheduled date to file quarterly securities report:
February 13, 2024
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Yes
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)1.

Consolidated financial results for the nine months ended December 31, 2023 (from April 1, 2023, to December 31, 2023)(1)

Consolidated operating results (cumulative)
Net sales

Nine months ended
December 31, 2023
Nine months ended
December 31, 2022
Note: Comprehensive income(Percentages indicate year-on-year changes.)
Operating profit

Profit attributable to owners ofparentOrdinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

212,924

10.7

6,088

(17.1)

6,178(17.3)

4,190(14.7)

192,392

18.3

7,348

(26.7)

7,470(26.5)

4,911(28.3)For the nine months ended December 31, 2023: ¥4,721 million [(3.5%)]
For the nine months ended December 31, 2022: ¥4,894 million [(29.2%)]

Basic earnings per share

Nine months ended
December 31, 2023
Nine months ended
December 31, 2022(2)

Diluted earnings per share

Yen

Yen

167.51

162.67210.17190.79Consolidated financial position
Total assets

As of December 31, 2023
As of March 31, 2023

Net assets

Millions of yen

Millions of yen%

205,700
188,689

93,07390,321

44.9
47.5

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

Equity-to-asset ratio¥92,287 million¥89,621 million

2.

Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

-

46.00

-

44.00

90.00

-

36.00

45.00

81.00

Fiscal year ended March 31,
2023
Fiscal year ending March
31, 2024
Fiscal year ending March
31, 2024 (forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None3.

Consolidated financial results forecast for the fiscal year ending March 31, 2024 (from April 1, 2023, to March 31, 2024)(Percentages indicate year-on-year changes.)
Net sales

Full year

Millions ofyen
286,583

Operating profit%
9.1

Millions of
yen
9,370

Ordinary profit
%

(3.8)

Millions of
yen
9,574

%
(3.8)

Profit attributable toowners of parent
Millions of
%
yen
6,709
(4.5)

Basic earnings per
share
Yen
268.32

Note: Revisions to the forecast of the financial results most recently announced: None*

Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of
consolidation): None(2)

Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
Note: For details, see “(3) Notes to Quarterly Consolidated Financial Statements (Adoption of accounting treatment specificto the preparation of quarterly consolidated financial statements)” in “2. Quarterly Consolidated Financial Statements andSignificant Notes Thereto” on page 8 of the Attachment.

(3)

Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None(4)

Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)

(ii)

(iii)

As of December 31, 2023

25,254,114 shares

As of March 31, 2023

25,254,114 shares

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

227,346 shares

As of March 31, 2023

250,986 shares

Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2023

25,017,322 shares

Nine months ended December 31, 2022

23,367,485 shares*

Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit
corporation.

*

Proper use of earnings forecasts, and other special matters
Forward-looking statements such as earnings forecasts contained in this material are based on information available to the Company,
as well as on certain assumptions that the Company judges to be reasonable, and are not intended to be a promise that the Company
will achieve them. Furthermore, actual results may differ significantly depending on various factors. For conditions underlying thefinancial results forecast and cautions concerning the use of the financial results forecast, please see “(3) Explanation ofConsolidated Financial Results Forecast and Other Forward-Looking Information” in “1. Qualitative Information on Financial
Results for the Nine Months Ended December 31, 2023” on page 3 of the Attachment.

Onoken Co., Ltd. (7414) Financial Results for the Nine Months Ended December 31, 2023

○ Table of Contents of Attachment
1. Qualitative Information on Financial Results for the Nine Months Ended December 31, 2023 ..................................................2(1)

Explanation of Operating Results ........................................................................................................................................2(i)

Kyushu and Chugoku region ...............................................................................................................................................2(2)

Explanation of Financial Position ........................................................................................................................................3(3)

Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information....................................3

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto .............................................................................4(1)

Quarterly Consolidated Balance Sheet.................................................................................................................................4(2)

Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ..............6(Quarterly Consolidated Statement of Income)....................................................................................................................6(First nine months) ..........................................................................................................................................................6(Quarterly Consolidated Statement of Comprehensive Income) ..........................................................................................7(First nine months) ..........................................................................................................................................................7(3)

Notes to Quarterly Consolidated Financial Statements ........................................................................................................8(Notes on Going Concern Assumption) .................................................................................................................................8(Notes If There Are Significant Changes in the Amount of Shareholders' Equity) ................................................................8(Changes in significant subsidiaries during the period) .........................................................................................................8(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements) ....................8-1-

Onoken Co., Ltd. (7414) Financial Results for the Nine Months Ended December 31, 2023

1.

Qualitative Information on Financial Results for the Nine Months Ended December 31, 2023
(1)

Explanation of Operating Results

In Japan’s economy during the nine months ended December 31, 2023, although the impact of the spread of the novel coronavirus
has calmed down, the economic environment remains uncertain due to rising inflation caused by rapid changes in overseas situations,such as the invasion of Ukraine and the further slowdown of the economic situation in China, and the continuing substantial
depreciation of the yen. However, there are also signs that economic activities will be gradually revitalized due to governmental
measures to prioritize economic activities and the recovery of inbound demand.
In the steel and construction materials distribution industry to which the Group belongs, domestic demand trends as a wholeremained almost at the same level as the previous fiscal year, although there were variances depending on the type and category ofbusiness and the region. The market for steel products remained at the same level since the beginning of the fiscal year, as the pricesof raw materials and electricity charges have been consistently high. In the future business environment, there remains uncertainty
about changes in overseas conditions, and domestic economic trends are unpredictable.
In our group, for the Iron and Steel Sales business, although the market for steel products has remained at a high level, demandhas not been on a recovery trend, and overall business has remained at the same level as the previous fiscal year, with some variancesamong the products. Therefore, we will further work to increase inventory at each site and add new processing equipment, which
we have been actively engaging in from a medium-term perspective, to strengthen the structure to meet our clients’ needs evenmore than before.
Further, for the Sales of Construction Materials business and Contract Construction business, in the construction-related industry
which is our main sales destination, demand for small- and medium-sized projects in local cities is still sluggish. However, thelarge-scale projects, particularly in urban areas, have been progressing smoothly. In addition, we have been actively promoting sales
activities for the next fiscal year, with increasing inquiries including small- and medium-sized projects of hotels and commercial
facilities in expectation of a recovery in inbound demand, and new logistics facilities to prepare for the 2024 problem.
For the business results, net sales were 212,924 million yen (up 10.7% year-on-year), because overall sales volume slightly
increased in the Iron and Steel Sales business due to higher sales of steel plates for construction work while the steel market
remained at the same level as the previous fiscal year, and also because the Contract Construction business made steady progress
mainly in large-scale construction projects. In terms of profit, although total income grew thanks to stronger sales in the Iron andSteel Sales business and Contract Construction business, selling, general and administrative expenses rose due to higher freightcharges brought by soaring fuel costs and personnel expenses caused by increases in the number of employees and salaries, as wellas increases in depreciation expenses for facility expansion etc.. This resulted in operating profit of 6,088 million yen (down 17.1%
year-on-year), ordinary profit of 6,178 million yen (down 17.3% year-on-year) and net profit attributable to owners of the parent of
4,190 million yen (down 14.7% year-on-year).
Results by segment are as follows:(i)

Kyushu and Chugoku region

Net sales increased year-on-year due to significant growth in the Contract Construction business, despite declined sales brought
by a slight decrease in sales volume in the Iron and Steel Sales business. Profit decreased from the same period of the previous
fiscal year due to an increase in selling, general and administrative expenses, despite growth in the Contract Construction business.
As a result, net sales to external customers amounted to 113,015 million yen (up 5.1% year-on-year), and segment profit was 3,026
million yen (down 20.6% year-on-year).
(ii)Kansai and Chukyo region
Net sales grew year-on-year due to an increase in sales volume in the Iron and Steel Sales business. Profit decreased comparedwith the same period of the previous fiscal year due to an increase in selling, general and administrative expenses. As a result, net
sales to external customers amounted to 55,392 million yen (up 19.1% year-on-year), and segment profit was 1,228 million yen(down 14.4% year-on-year).
(iii) Kanto and Tohoku region
Net sales increased year-on-year due to a significant increase in the sales volume, particularly of steel plates, in the Iron and SteelSales business, and also growth in the Contract Construction business. Profit decreased from the same period of the previous fiscal
year due to an increase in selling, general and administrative expenses, despite growth in the Iron and Steel Sales business andContract Construction business. As a result, net sales to external customers amounted to 44,516 million yen (up 16.0% year-onyear), and segment profit was 1,805 million yen (down 10.5% year-on-year).

-2-

Onoken Co., Ltd. (7414) Financial Results for the Nine Months Ended December 31, 2023

(2)

Explanation of Financial Position(Assets)
Assets increased 17,011 million yen from the end of the previous fiscal year to 205,700 million yen. The main factors wereincreases of 6,914 million yen in electronically recorded monetary claims - operating, 3,443 million yen in land and 12,492 million
yen in other property, plant and equipment, despite decreases of 2,028 million yen in notes and accounts receivable - trade, andcontract assets and 4,066 million yen in merchandise and finished goods.
(Liabilities)
Liabilities increased 14,259 million yen from the end of the previous fiscal year to 112,627 million yen. The main factors werean increase of 13,565 million yen in long-term borrowings, despite decreases of 871 million yen in notes and accounts payable trade and 1,612 million yen in short-term borrowings.
(Net assets)
Net assets increased 2,751 million yen from the end of the previous fiscal year to 93,073 million yen. The main factor was anincrease of 2,190 million yen in retained earnings.
(3)

Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information

There is no change to the full-year financial results forecast announced in the Consolidated Financial Results dated November
10, 2023.

-3-

Onoken Co., Ltd. (7414) Financial Results for the Nine Months Ended December 31, 2023

2.

Quarterly Consolidated Financial Statements and Significant Notes Thereto(1)

Quarterly Consolidated Balance Sheet(Millions of yen)
Fiscal year ended March 31,
2023

Third quarter of the fiscal
year ending March 31, 2024

(As of March 31, 2023)(As of December 31, 2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Electronically recorded monetary claims operating
Merchandise and finished goods
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Provision for retirement benefits for directors(and other officers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

-4-

2,975

4,681

62,33560,307

20,064

26,97831,563
3,491
6,396
(120)
126,706

27,496
2,769
5,351
(134)
127,449

21,92430,723
5,487
58,135

21,79634,167
17,98073,943

218
318
537

342
329
671

4,031
(721)
3,309
61,982
188,689

3,804
(168)
3,636
78,250205,700

31,177
21,78135,200
52
398
199
1,453
8
4,823
95,09430,30622,97833,587
52
693
1,189
1,228
8
5,561
95,607

981
118

981
13,683

6

8

1,101
171
893
3,273
98,367

1,287
172
886
17,019112,627

Onoken Co., Ltd. (7414) Financial Results for the Nine Months Ended December 31, 2023

(Millions of yen)
Fiscal year ended March 31,
2023

Third quarter of the fiscal
year ending March 31, 2024

(As of March 31, 2023)(As of December 31, 2023)

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

-5-

6,537
6,498
76,797(341)
89,492

6,537
6,504
78,987(309)
91,719

257

633

(2)
(125)
129
700
90,321
188,689

(35)
(31)
567
786
93,073
205,700

Onoken Co., Ltd. (7414) Financial Results for the Nine Months Ended December 31, 2023

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(First nine months)(Millions of yen)
Nine months ended
December 31, 2022 (FromApril 1, 2022, to December 31,
2022)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income from buildings
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commissions paid
Discounts
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-6-

Nine months ended December
31, 2023 (From April 1, 2023, toDecember 31, 2023)

192,392
172,786
19,606
12,257
7,348

212,924
192,995
19,928
13,839
6,088

4
27
58
76
167

3
45
61
109
219

21
9
14
45
7,470

26
81
6
14
130
6,178

-

26
26

3
3
7,467
2,468
4,998
86
4,911

6,204
1,920
4,283
93
4,190

Onoken Co., Ltd. (7414) Financial Results for the Nine Months Ended December 31, 2023

(Quarterly Consolidated Statement of Comprehensive Income)(First nine months)(Millions of yen)
Nine months ended December
31, 2022 (From April 1, 2022, toNine months ended December
31, 2023 (From April 1, 2023, toDecember 31, 2022)

December 31, 2023)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

-7-

4,998

4,283

28
(130)
(0)
(103)
4,894

376
(32)
93
438
4,721

4,808

4,624

86

96

Onoken Co., Ltd. (7414) Financial Results for the Nine Months Ended December 31, 2023

(3)

Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Notes If There Are Significant Changes in the Amount of Shareholders' Equity)
Not applicable.
(Changes in significant subsidiaries during the period)
Not applicable.
Although it does not correspond to changes in specified subsidiaries, we acquired shares in Onoken Steel Co., Ltd. (the corporatename changed from Okinaga Kozai Co., Ltd.) during the six months ended September 30, 2023, so the company is included in thescope of consolidation.
(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)(Calculation of Tax Expenses)
Tax expenses are calculated by reasonably estimating the effective tax rate after the application of tax effect accounting withregard to profit before income taxes for the fiscal year that includes the nine months ended December 31, 2023, and multiplying
the quarterly profit before income taxes by that estimated effective tax rate.

-8-