August 9, 2024

Fiscal 2024 First-Half Consolidated Earnings Report（Japanese GAAP）
These financial statements have been prepared for reference in accordance with accounting principles and practices
generally accepted in Japan.
Company name: Star Micronics Co., Ltd.
Stock listing: Tokyo Stock Exchange
Code: 7718
URL https://www.star-m.jp
Representative Director: Mamoru Sato, President and CEO
Inquiries: Seigo Sato, Managing Director, General Manager, Corporate Headquarters
TEL: 054 -263-1111
Scheduled release of Fiscal 2024 First-half Business Report: August 13, 2024
Scheduled payment of dividends: September 6, 2024
Preparation of supplementary explanatory materials for half earnings report: Yes
Half earnings presentation: Yes(Figures less than one million are rounded down)

1. Results for for the First Half of Fiscal 2024 (From January 1, 2024 to June 30, 2024)（Percentages represent changes over the corresponding period of the previous fiscal year）(1) Consolidated Operating Results
Net Income
Net Sales
Operating Income
Ordinary Income
Attributable toOwners of Parent
FY2024 First Half
FY2023 First Half(¥ million)%(¥ million)%(¥ million)%(¥ million)%

30,98642,926(27.8)
9.4

1,548
7,380(79.0)
29.0

2,008
7,614

(73.6)
27.5

584
5,238(88.8)
24.5(Note) Comprehensive income FY2024 First Half

¥5,324 million［(41.6)%］FY2023 First Half

Net Income
Per Share
FY2024 First Half
FY2023 First Half

¥9,113 million［(3.0)%］

Diluted Net Income
Per Share
(¥)

(¥)

16.26
139.3616.20
138.91(2) Consolidated Financial Position
Total Assets

Net Assets(¥ million)

Equity Ratio(¥ million)%

As of June 30, 2024
96,37079,71082.3
As of December 31, 2023
93,39880,346
85.6Reference: Shareholders' Equity
As of June 30, 2024 ¥79,325 million As of December 31, 2023 ¥79,964 million
2. Dividends
1Q endDividends Per Share
3Q end2Q end(¥)(¥)

Year-end

(¥)

30.00
－FY 2024－
30.00
FY 2023
FY 2024(projected)(Note) Changes to the latest dividend forecast announced: None

Full Year(¥)

(¥)

－

30.00

60.00

－

30.00

60.00

3. Consolidated Outlook for the Fiscal Year Ending December 31, 2024（From January 1, 2024 to December 31, 2024)(Percentages represent changes over the corresponding period of the previous fiscal year)

Net Sales
Full Year

Operating Income

Ordinary Income

Net Income
Attributable toOwners of ParentNetIncomePer Share(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥)

68,000(13.0)

5,400(47.8)

6,000(45.3)

3,700(54.7)

107.68(Note) Changes to the latest consolidated results forecast announced: Yes

*Note(1) Significant changes in subsidiaries during the period under review (changes in certain specified subsidiaries
resulting in revised scope of consolidation): None
New company: － (Company name), Excluded company: － (Company name)(2) Adoption of special accounting treatment used in preparation of the interim consolidated financial statements:None(3) Changes in accounting policies, estimates and restatement or corrections(i) Changes associated with revised accounting standards: None(ii) Changes other than those in (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatement: None
(4) Number of shares issued and outstanding (Common stock)(i) Number of shares issued and outstanding at period-end (Including treasury stock)
As of June 30, 2024
41,373,034 shares As of December 31, 2023
41,921,434 shares(ii) Number of treasury stock at period-end
As of June 30, 2024
7,109,274 shares As of December 31, 2023
5,215,874 shares(iii) Average number of outstanding shares (During the First Half)
35,974,367 shares As of June 30, 2023
37,591,661 shares
As of June 30, 2024
* This First-half earnings report is not subject to First-half reviews.
* Regarding the appropriate use of earnings projections and other noteworthy matters
The above projections are based on information available at the time of release of this report and certain assumptions
the Company considers reasonable. The Company does not promise that these projections will be achieved. Actual
results may differ materially from projections due to a variety of factors. For information regarding the assumptions andother matters related to earnings projections in this report, refer to "(3) Explanation of the Consolidated Earnings
Projections and Other Forecasts" under "1. Overview of Operating Results and Financial Position " on page 2.

○ (Attached Documents) Index
1. Overview of Operating Results and Financial Position .....................................................................................

2(1) Overview of Operating Results for the First Half of the Fiscal Year Ending December 31, 2024 ..............

2(2) Over of Financial Position for the First Half of the Fiscal Year Ending December 31, 2024 ....................

2(3) Explanation of the Consolidated Earnings Projections and Other Forecasts ............................................

2

2. Interim Consolidated Financial Statements and Major Notes ........................................................................

3(1) Interim Consolidated Balance Sheet ..............................................................................................................

3(2) Interim Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ....

5(3) Notes to Interim Consolidated Financial Statements ...................................................................................

7(Note on Going Concern Assumption) ............................................................................................................

7(Note on Significant Changes in Shareholders’ Equity Accounts) ................................................................

71

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results for the First Half of the Fiscal Year Ending December 31, 2024
During the first half of fiscal 2024, the fiscal year ending December 31, 2024, the global economy as a wholeremained on a moderate recovery trend amid signs of a slowdown in inflation on the back of such factors as theprolonged implementation of monetary tightening policies by various countries. There were ongoing concerns,
however, about a recession owing to a variety of factors, including persistently high interest rates in the U.S.
Despite indications of a shift in economic trends, including the move to lower interest rates by the European
Central Bank, the outlook remained uncertain due to concerns surrounding overall economic stagnation caused bysuch factors as the slump in real estate market conditions in China and continued depreciation in the yen.
In each of the major markets in which the Star Micronics Group operates, overall demand for POS printersremained weak. In addition, demand in the U.S., Europe and Japan for the Group’s mainstay machine tools
continued to stall. On a positive note, China’s recovery continued strongly.
Under these circumstances, the weak yen affected overall sales for the Star Micronics Group in the first half of thefiscal year under review. Due mainly to the significant decline in sales of machine tools, the Group recorded salesof ¥30,986 million, down 27.8% compared with the corresponding period of the previous fiscal year. From a profit
perspective, operating income was down 79.0% to ¥1,548 million, ordinary income decreased 73.6% to ¥2,008
million, and net income attributable to owners of parent declined 88.8% to ¥584 million owing to such factors as anincrease in the tax burden resulting from the impact of tax effect accounting on unrealized income.
Performance by segment was as follows:(Special Products)
Sales of POS printers decreased significantly primarily in the U.S. market. Looking at trends by geographic region,
sales in the U.S. market were down substantially due to sluggish mPOS demand. Meanwhile, sales in the Europeanmarket were on par with the corresponding period of the previous fiscal year amid firm trends in market condition.
Sales in Japan increased substantially owing mainly to contributions from Smart Solution Technology, Inc., which
was includes in the Company’s scope of consolidation in the second quarter of the fiscal 2023, against the backdropof robust market conditions.
Accounting for these and other factors, sales in the Special Products business decreased substantially, falling 34.0%
year on year, to ¥5,927 million. On the earnings front, the Company incurred an operating loss of ¥14 million, aturnaround from the operating income of ¥1,701 million in the corresponding period of the previous fiscal year.
(Machine Tools)
Although the weak yen contributed to the overall performance of CNC automatic lathes, sales were down
substantially, owing largely to sluggishness in the U.S. and European markets. By region, ongoing cautious movetoward capital investment in the U.S. due to persistently high interest rate and ongoing weakness in overall demandin the European market were behind the significant decrease in sales. Meanwhile, in the Asian market, China inparticular saw a recovery in market conditions fueling the substantial upswing in sales. In Japan, sales decreased
substantially amid a lackluster performance as a whole, especially in the automotive sector.
Based on the aforementioned, sales and profits fell significantly in the Machine Tools business. In specific terms,
sales were down 26.2% compared with the corresponding period of the previous fiscal year, to ¥25,059 million.
Operating income fell 62.5% year on year, to ¥2,503 million.
(2) Explanation of Financial Position
Total assets as of the end of the first half of the fiscal year under review stood at ¥96,370 million, an increase of¥2,972 million compared with the end of the previous fiscal year, amid the overall impact of fluctuations in foreign
currency exchange rates. Despite the decrease in cash and deposits, this increase in total assets largely reflects
increases in accounts receivable and inventories. Total liabilities stood at ¥16,660 million, an increase of ¥3,608
million compared with the previous fiscal year-end, chiefly on the back of the increase in trade notes and accounts
payable. Despite an increase in foreign currency translation adjustments, total net assets decreased ¥635 million
compared with the end of the previous fiscal year, to ¥79,710 million, due in part to the repurchase of own shares.
(3) Explanation of the Consolidated Earnings Projections and Other Forecasts
As far as earnings projections are concerned, STAR MICRONICS CO., LTD. revised its business results forecasts for the full fiscal year previously announced on February 9, 2024 after taking into account such factors as operating
results for the first half of the fiscal year under review. For details, please refer to the press release titled “NoticeRegarding Differences between Business Results Forecasts and Financial Results for the First Half of the Fiscal
Year Ending December 31, 2024(Interim Period) and Revisions to Full Fiscal Year Earnings Forecasts” issued
separately today (August 9, 2024).

2

2. Interim Consolidated Financial Statements and Major Notes(1) Interim Consolidated Balance Sheet(Unit: Thousands of yen)
列1

As of December 31, 2023

AssetsCurrent assets
Cash and deposits
Trade notes and accounts receivable
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, net
Machinery, equipment and vehicles, netTools, furniture and fixtures, net
Land
Lease assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assetsInvestment securities
Deferred tax assets
Net defined benefit asset
Other
Total investments and other assets
Total non-current assets
Total assets

3

As of June 30, 2024

29,721,934
18,594,767
14,542,598
4,276,374
2,943,701
3,475,268(197,701)
73,356,942

28,915,985
20,460,883
14,431,378
4,495,821
3,473,101
3,750,826(123,422)
75,404,574

7,261,093
3,343,966
1,354,520
2,488,800
60,672
144,0021,249,890
15,902,946

7,350,172
3,452,520
1,341,035
2,546,740
67,717434,975
1,250,769
16,443,931

793,994
793,994

976,662
976,662

662,038
497,702
1,655,209
529,711
3,344,661
20,041,602
93,398,545

841,212447,267
1,735,895
521,369
3,545,744
20,966,339
96,370,913

(Unit: Thousands of yen)
列1

As of December 31, 2023

Liabilities
Current liabilities
Trade notes and accounts payable
Electronically recorded obligations-operating
Current portion of long-term bank loans
Lease obligations
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for directors' bonuses
Other
Total current liabilities
Non-current liabilities
Long-term bank loans
Lease obligations
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Stock acquisition rights
Noncontrolling interests
Total net assets
Total liabilities and net assets

4

As of June 30, 2024

3,345,274
326,753
28,404
29,637
313,660
331,598
896,288－
6,136,430
11,408,047

6,421,457
366,759
18,31727,273440,796444,679
757,4395,000
6,090,918
14,572,639

8,315
37,827
116,575
1,481,359
1,644,076
13,052,124－
47,975
128,141
1,911,717
2,087,835
16,660,475

12,721,939
10,948,546
55,401,296(7,637,848)
71,433,933

12,721,939
10,166,260
54,885,079(11,714,013)
66,059,266

167,186
7,058,883
1,304,4418,530,511
274,809107,166
80,346,421
93,398,545

218,352
11,820,964
1,227,089
13,266,406
281,282
103,483
79,710,438
96,370,913

(2) Interim Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Interim Consolidated Statement of Income)(First half period)(Unit: Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Foreign exchange gain
Rent income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange loss
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on revision of retirement benefit plan
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Loss attributable to non-controlling interests
Net income attributable to owners of parent

5First half period
from January 1, 2023 toJune 30, 2023, of FY2023

First half period
from January 1, 2024 toJune 30, 2024, of FY2024

42,926,690
25,401,165
17,525,524
10,145,361
7,380,163

30,986,591
19,961,796
11,024,795
9,476,044
1,548,751

160,604－
20,904133,415
314,924

158,197
262,001
20,58242,873
483,655

15,072
59,833
5,367
80,2737,614,815

17,038－
6,735
23,773
2,008,632

8,621
203,002
211,623

4,134
－
4,134

4,837
4,837
7,821,600
2,053,357
531,374
2,584,732
5,236,867(1,901)5,238,769

80,59380,593
1,932,174
730,391
631,717
1,362,108570,065(14,884)
584,950

(Interim Consolidated Statement of Comprehensive Income)(First half period)(Unit: Thousands of yen)First half period
from January 1, 2023 toJune 30, 2023, of FY2023

First half period
from January 1, 2024 toJune 30, 2024, of FY2024

5,236,867

570,065

64,8824,000,382(165,875)(22,800)
3,876,588
9,113,455

51,166
4,776,437(77,351)
3,739
4,753,991
5,324,056

9,105,154
8,301

5,320,845
3,211

Net income
Other comprehensive income
Valuation difference on available-for-sale securitiesForeign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
Total other comprehensive income
Comprehensive income(Total comprehensive income attributable to:)Owners of parent
Noncontrolling interests6(3) Notes to Interim Consolidated Financial Statements(Note on Going Concern Assumption)
Not applicable(Note on Significant Changes in Shareholders’ Equity Accounts)
Pursuant to a resolution of the Board of Directors held on November 20, 2023, the Company retired 548,400 sharesof treasury stock on January 31, 2024. In addition, STAR MICRONICS CO., LTD. repurchased 2,509,400 of its own
shares between May 15, 2024 and June 30, 2024 in accordance with a resolution of its Board of Directors at a meeting
held on May 14, 2024. As a result, the Company’s capital surplus decreased ¥802,857 thousand, to ¥10,166,260
thousand, and the balance of treasury stock increased ¥4,984,267 thousand, to ¥11,714,013 thousand as of June 30,2024.

７