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.

February 9, 2024

Summary of Consolidated Financial Results
For the Third Quarter of the Year Ending March 31, 2024
(Under Japanese GAAP)
Company name:
LEC, Inc.
Stock exchange listing: Tokyo Stock Exchange, Prime Market
Stock code:
7874
URL:
https://www.lecinc.co.jp/en
Representative:
Takaki Nagamori, President
Inquiries:
Hideo Masuda, Director, Managing Executive Officer
Telephone:+81-3-3527-2150
Scheduled date for filing quarterly securities report:
February 13, 2024
Scheduled date for commencement of dividend payments:―
Supplementary information for the quarterly financial statements to be prepared: None
Meeting to explain the quarterly financial statements to be held: None
(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2024 (from April 1,
2023 to December 31, 2023)(1) Consolidated Results of Operations (cumulative)(Percentage figures denote change from the same period in the previous year)
Net sales

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

46,394

10.6

1,996

57.5

2,093

52.7

1,024(17.9)

41,9336.8

1,267(63.6)

1,370(61.7)

1,247(39.7)

3rd Quarter of the YearEnding March 31, 2024
3rd Quarter of the Year
Ended March 31, 2023
Note: Comprehensive income

Third Quarter of the Year ending March 31, 2024: ¥1,592 million
Third Quarter of the Year ended March 31, 2023: ¥1,436 million
Basic earnings
per share

3rd Quarter of the YearEnding March 31, 2024
3rd Quarter of the Year
Ended March 31, 2023

Profit attributable toowners of parent

Ordinary profit

Dilutedearnings pershareYen

Yen

29.46

29.18

36.07

35.73

[10.9%][(30.8)%]

(2) Consolidated Financial Position
Total assets

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

As of December 31,2023

88,53637,321

39.9

As of March 31, 2023

84,31636,27940.8

Reference: Shareholders’ Equity
As of December 31, 2023:
As of March 31, 2023:¥35,315 million¥34,432 million

2. DividendsAnnual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen―

10.00

―

10.00

20.00

―

10.00

―
10.00

20.00

Year Ended March 31,
2023
Year Ending March 31,
2024

Year-end

Year Ending March 31,
2024 (Estimate)

Total

Note: Changes from the latest forecasts released: None

3. Forecast for the Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)(Percentage figures denote change from the same period in the previous year)
Net sales

Full Year

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

60,000

8.2

1,500

64.6

1,600

47.8

Note: Changes from the latest forecasts released: Yes

Basicearnings
per share

Profit attributableto owners of parent

Ordinary profit%

Yen

800 (15.1)

22.99

Millions of yen* Notes(1) Changes in significant subsidiaries during the period: None
(Changes in specified subsidiaries resulting in changes in the scope of consolidation)
New : 0Excluded : 0(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions of accounting standards and other regulations: None(ii) Changes in accounting policies other than (ⅰ): 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 stock)
3rd Quarter of the Year Ending March 31, 2024

38,165,340 sharesYear Ended March 31, 2023

38,165,340 shares(ii) Number of treasury stock at the end of the period
3rd Quarter of the Year Ending March 31, 2024

3,296,692 sharesYear Ended March 31, 2023

3,497,492 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscalyear)
3rd Quarter of the Year Ending March 31, 2024

34,765,897 shares

3rd Quarter of the Year Ended March 31, 2023

34,565,002 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Explanation of the appropriate use of business forecasts and other remarks
Business forecasts contained in this report are based on information available to the Company and on a certain
assumption the Company considers reasonable on the date of this report’s announcement, and it does notconstitute the Company’s intention to promise the accomplishment of the forecasts. Actual results may differ
significantly from such forecasts due to various risks and uncertainties. For more information regarding
assumptions made when formulating earnings projections and matters to note when using these projections,please see “(3) Explanation of Consolidated Forecast and Other Forward-looking Statements” on page three ofthe accompanying materials.
In addition, the Company has introduced ESOP, and the Company shares owned by ESOP are included intreasury stock.

LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/24

Accompanying Materials ― Contents

1. Qualitative Information on Quarterly Financial Performance.......................................................... 2(1) Explanation of Operating Results ............................................................................................... 2(2) Explanation of Financial Position ............................................................................................... 2(3) Explanation of Consolidated Forecast and Other Forward-looking Statements ......................... 3
2. Quarterly Consolidated Financial Statements and Primary Notes ................................................... 4(1) Quarterly Consolidated Balance Sheet........................................................................................ 4(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ... 6(3) Notes to Quarterly Financial Statements .................................................................................... 8(Notes to going concern assumptions) ........................................................................................ 8(Notes in the event of significant changes in shareholders’ equity)............................................ 81LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/24

1. Qualitative Information on Quarterly Financial Performance(1) Explanation of Operating Results
During the nine months ended December 31, 2023, the Japanese economy has been on a moderate recovery trend
due to progress in the normalization of economic activities following the removal of restrictions on movement
caused by the COVID-19 pandemic. On the other hand, future prospects remain uncertain due to factors such as
the prolonged invasion of Ukraine, the deterioration of the situation in the Middle East region, sustained highprices for energy and raw materials, and the acceleration of the yen’s depreciation associated with tightening
monetary policy amid global inflationary pressure.
In the Household Products Business, the industry LEC Group belongs to, the business environment remained
severe as consumers became more budget-minded due to real wages remaining in negative territory as a result ofrising prices, despite improvement in the employment environment.
In this environment, the LEC Group focused on initiatives such as the development of character goods of choicethat are tailored to the tastes of consumers and the stable supply of products that respond to consumers’ desire tosave money, and expanded its business by holding promotional events including new product announcements. We
also made company-wide efforts to reduce costs by updating products and revamping operational processes tocope with higher procurement costs due to the depreciation of the yen and soaring raw material prices, as well as
gradually rising domestic transportation costs.
As a result of the above, net sales during the nine months ended December 31, 2023 amounted to 46,394 million
yen, (up 10.6% year on year) due to increased sales of new products and other factors. Operating profit was 1,996
million yen (up 57.5% year on year) and ordinary profit was 2,093 million yen (up 52.7% year on year) due to theeffect of increased revenue and cost reduction, etc., despite increases in various costs including raw materials andimport expenses. Profit attributable to owners of parent was 1,024 million yen (down 17.9% year on year).
Results by product category are as follows.
(Millions of yen)
Product Category
Household products
Cleaning/Sanitary consumables
OthersPrevious period
Apr.1, 2022-Dec.31, 2022
18,036
16,796
7,100

Current period
Apr.1, 2023-Dec.31, 2023
18,961
18,778
8,655

Year-over-year
5.1%
11.8%
21.9%

Total
41,933
46,394
10.6%
Notes: Representative products of each product category are as follows
Household products…Plastic products, Chemical synthetic products, Metal products, Textile products, etc.
Cleaning ･ Sanitary consumables … Paper/Water/Urethane cleaning consumables, Nonwoven fabric sanitary consumables,Detergents, etc.
Others…Anti-insect/virus products, Cosmetics, Home appliances, Food, etc.

(2) Explanation of Financial Position
As of December 31, 2023, total assets increased 4,219 million yen from the end of the previous fiscal year to88,536 million yen.
Current assets increased 4,280 million yen from the end of the previous fiscal year to 56,466 million yen, mainly
due to increases of 4,638 million yen in cash and deposits and 2,265 million yen in notes and accounts receivable– trade, and a decrease of 1,802 million yen in securities.
Non-current assets decreased 60 million yen from the end of the previous fiscal year to 32,070 million yen,mainly due to a 1,176 million yen increase in investments and other assets, and a 1,039 million yen decrease inproperty, plant and equipment.
Liabilities increased 3,177 million yen from the end of the previous fiscal year to 51,215 million yen.
Current liabilities decreased 759 million yen from the end of the previous fiscal year to 10,720 million yen. Thiswas mainly due to a 690 million yen increase in income taxes payable and a 1,350 million yen decrease in thecurrent portion of long-term borrowings.
Non-current liabilities increased 3,936 million yen from the end of the previous fiscal year to 40,495 million yen,mainly due to a 4,043 million yen increase in long-term borrowings.
Net assets increased 1,041 million yen from the end of the previous fiscal year to 37,321 million yen. This was
mainly due to a 490 million yen increase in valuation difference on available-for-sale securities and a 310 million
yen increase in retained earnings.

2

LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/24(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
There have been revisions made to the consolidated performance forecast for the full year ending March 31,2024, which was announced on August 10, 2023, based on the results for the first nine months of the current
fiscal year.

3LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/24

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet
FY3/23(As of Mar. 31, 2023)(Millions of yen)
Third quarter of FY3/24(As of Dec. 31, 2023)

Cash and deposits

26,51031,149Notes and accounts receivable - trade

9,713

11,979Securities

1,802

―

Merchandise and finished goods

9,162

9,473

AssetsCurrent assets

Work in process

657

569

Raw materials and supplies

2,665

2,285

Other

1,680

1,012

(6)

(3)

52,18556,466

Buildings and structures, net

8,083

7,861

Machinery, equipment and vehicles, net

7,151

6,080

Other, net

9,687

9,941

Total property, plant and equipment

24,92223,883

Goodwill

117

6

Other

566

478

Total intangible assets

683

485

Investment securities

5,031

6,278

Other

1,493

1,423

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

6,524

7,701

32,13032,07084,316

88,536

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets

Total non-current assets
Total assets

4LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/24

FY3/23(As of Mar. 31, 2023)(Millions of yen)
Third quarter of FY3/24(As of Dec. 31, 2023)

Liabilities
Current liabilities
Notes and accounts payable - trade

2,288

Short-term borrowings

2,452

200

400

5,398

4,048

150

840

87

Provision for bonuses

386

191

Provision for loss on disaster

35

35

Other

3,012

2,743

Total current liabilities

11,47910,72034,05538,099Provision for share awards

273

270

Retirement benefit liability

361

312

Current portion of long-term borrowings
Income taxes payable
Provision for product warranties

Non-current liabilities
Long-term borrowings

Asset retirement obligations

2727

Other

1,839

1,784

Total non-current liabilities

36,55840,49548,03751,215

Share capital

5,491

5,491

Capital surplus

7,211

7,236

Retained earnings

21,573

21,883

Treasury shares(2,107)(1,968)

Total shareholders' equity

32,16932,643

1,372

1,863

Deferred gains or losses on hedges

252

2

Foreign currency translation adjustment

681

846

Remeasurements of defined benefit plans

(43)

(39)

2,263

2,672

Share acquisition rights

206

206

Non-controlling interests

1,640

1,799

Total net assets36,279

37,321

84,316

88,536

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income

Total liabilities and net assets

5LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/24(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statements of Income
For the Nine-month Period(Millions of yen)First nine months of FY3/23
First nine months of FY3/24(Apr. 1, 2022 – Dec. 31, 2022) (Apr. 1, 2023 – Dec. 31, 2023)
Net sales

41,933

46,394

Cost of sales

30,442

33,340Gross profit

11,491

13,054

Selling, general and administrative expenses

10,223

11,058Operating profit

1,267

1,996

Interest income

1235

Dividend income

8998

Foreign exchange gains

52―

Non-operating income

Subsidy income

066

Other

115

94

Total non-operating income

270

295

Interest expenses

104147

Share of loss of entities accounted for using equity method

56

29

Foreign exchange losses―

0Other

520

167

198

1,370

2,093

Subsidy income

564―Gain on reversal of foreign currency translation adjustment249―

Total extraordinary income

813―

Loss on retirement of non-current assets

316

Total extraordinary losses

316

2,181

2,076

Income taxes - current

230

887

Income taxes - deferred

588

5

Total income taxes

819

892

1,361

1,184

114

159

1,247

1,024

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes

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

6

LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/24

Quarterly Consolidated Statement of Comprehensive Income
For the Nine-month Period
First nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)
Profit(Millions of yen)First nine months of FY3/24(Apr. 1, 2023 – Dec. 31, 2023)

1,361

1,184

Valuation difference on available-for-sale securities

202490

Deferred gains or losses on hedges

(186)

(250)

Foreign currency translation adjustment

54

164

Remeasurements of defined benefit plans, net of tax

34

Total other comprehensive income74408

1,436

1,592

1,323

1,432112

159

Other comprehensive income

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

7LEC, Inc. (7874) Financial Results for the Third Quarter of FY3/24(3) Notes to Quarterly Financial Statements(Notes to going concern assumptions)None to be reported.
(Notes in the event of significant changes in shareholders’ equity)
None to be reported.

8