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.

August 10, 2023

Summary of Consolidated Financial Results
For the First Quarter of the Year Ending March, 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:
August 10, 2023
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 First Quarter of the Year Ending March, 2024 (from April 01,2023 to June 30, 2023)(1) Consolidated Results of Operations (cumulative)(Percentage figures denote change from the same period in the previous year)
Sales

Operating Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

14,861

11.3

611(26.7)

683(13.5)

364(62.2)

13,3530.7

833(36.2)

790(42.8)

964

29.9

1st Quarter of the YearEnding March, 2024
1st Quarter of the Year
Ended March, 2023
Note: Comprehensive income

First Quarter of the Year ending March, 2024:
First Quarter of the Year ended March, 2023:

Basic earnings
per share
1st Quarter of the YearEnding March, 2024
1st Quarter of the Year
Ended March, 2023

Profit attributable toowners of parentOrdinary Income

Diluted earnings
per shareYen

Yen

10.52

10.42

27.96

27.69

¥978 million¥942 million[3.9%][4.3%]

(2) Consolidated Financial Position
Total assets

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

1st Quarter of the YearEnding March, 2024

85,50836,905

40.9

Year Ended March, 2023

84,31636,27940.8

Reference:

Shareholders’ Equity
First Quarter of the Year Ending March,2024:
Year Ended March, 2023

¥35,014 million¥34,432 million

2. Dividends
Annual dividends per shareFirst quarter-end

Second quarter-endThird quarter-end

Yen

Yen

Yen

Yen

Yen

Year Ended March, 2023

―

10.00

―

10.00

20.00

Year Ending March, 2024

―
10.00

―

10.00

20.00

Year Ending March, 2024
(Estimate)Year-end

Total

Note: Changes from the latest forecasts released: None

3．Forecast for the Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)(Percentage figures denote change from the same period in the previous year)
Sales
Millions of yen

Operating Income% Millions of yen

Net income attributableto owners of parent

Ordinary Income% Millions of yen

Net incomeper share%

Millions of yen%Yen2nd Quarter of the YearEnding March, 2024
(Cumulative)

29,3009.2

900(35.1)

950(26.9)

530(58.9)

15.28

Full Year

60,000

8.2

1,200

31.7

1,200

10.9700(25.7)

20.19

Note: Changes from the latest forecasts released: Yes

* 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)
1st Quarter of the Year Ending March, 2024

38,165,340 sharesYear Ended March, 2023

38,165,340 shares(ii) Number of treasury stock at the end of the period
1st Quarter of the Year Ending March, 2024

3,486,692 sharesYear Ended March, 2023

3,497,492 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscalyear)
1st Quarter of the Year Ending March, 2024

34,668,797 shares

1st Quarter of the Year Ended March, 2023

34,478,893 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. Due to unforeseen
circumstances, however, actual results may differ significantly from such forecasts due to various risks anduncertainties. For more information regarding assumptions made when formulating earnings projections andmatters to note when using these projections, please see “(3) Explanation of Consolidated Forecast and OtherForward-looking Statements” on page two of the 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 First 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…..………………………2

2.

Quarterly Consolidated Financial Statements and Primary Notes…………………………………………...3(1) Quarterly Consolidated Balance Sheet ….…………………………………………………………………3(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income...…………...5(3) Notes to Quarterly Financial Statements……………….…………………………………………………..7(Notes to going concern assumptions).………………………………………………………….…………7(Notes in the event of significant changes in shareholders’ equity)…………….…….……………………71LEC, Inc. (7874) Financial Results for the First Quarter of FY3/24

1. Qualitative Information on Quarterly Financial Performance(1) Explanation of Operating Results
During the first quarter of the fiscal year ending March 31, 2024, the Japanese economy has been on a recovery
trend due to the removal of restrictions on movement and the normalization of economic activities due to thetransition of the classification of the COVID-19 to Category 5 under the Infectious Diseases Act. On the otherhand, future prospects remain uncertain due to factors such as increase in energy and raw material prices due tothe prolonged invasion of Ukraine and the yen's depreciation, fluctuations in the financial and capital markets
amid tightening monetary policy amid global inflationary pressure.
In the Household Products Business, the Lec Group belonging to, the business environment remained severe as
consumers became more budget-minded due to the real wages have declined by rising prices.
In this environment, the LEC Group focused on the development of new products and expanded its business byholding a new product presentation. We worked to strengthen to reduce costs to cope with rising procurement
costs due to the depreciation of the yen and soaring raw material prices, as well as rising transportation costs.
As a result of the above, net sales for the first quarter of the fiscal year ending March 31, 2024 amounted to
14,861 million yen, (up 11.3% year on year) due to increased sales of new products etc. Operating income was
611 million yen (down 26.7% year on year), and ordinary income was 683 million yen (down 13.5% year on year)
due to the depreciation of the yen and increases in various costs including raw materials and import expenses. Net
income attributable to owners of parent was 364 million yen (down 62.2% year on year).
Results by product category are as follows.
(Millions of yen)
Product Category
Household products
Cleaning･Sanitary consumables
OthersPrevious period
Apr.01, 2022-Jun.30,2022
5,700
4,822
2,830

Current period
Apr.01, 2023-Jun.30,2023
6,355
5,317
3,188

Year-over-year
11.5%
10.3%
12.6%

Total
13,353
14,861
11.3%
Notes: Representative products of each product category are as followsHousehold 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, Anti-virus products, Cosmetics, Home appliances, Food, etc.

(2) Explanation of Financial Position
As of June 30, 2023, total assets increased 1,191 million yen from the end of the previous fiscal year to 85,508
million yen.
Current assets increased 1,133 million yen to 53,319 million yen. This was mainly due to an increase 557 million
yen in cash and deposits, 502 million yen in notes and accounts receivable – trade.
Non-current assets increased 57 million yen to 32,188 million yen mainly due to 435 million yen increase ininvestments and other assets, and 304 million yen decrease in property, plant and equipment.
Liabilities increased 565 million yen from the end of the previous fiscal year to 48,603 million yen.
Current liabilities increased 1,163 million yen to 12,642 million yen. This was mainly due to an increase 1,000
million yen in short-term borrowings.
Non-current liabilities decreased 597 million yen from the end of the previous fiscal year to 35,960 million yen
mainly due to a decrease 787 million yen in long-term borrowings.
Net assets increased 625 million yen from the end of the previous fiscal year to 36,905 million yen. This was
mainly due to an increase 569 million yen in accumulated other comprehensive income.

(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
With regard to the earnings forecast for the fiscal year ending March 31, 2024, second quarters of the current
fiscal year earnings forecast announced on May 12, 2023 has been revised based on the results for the firstquarters of the current fiscal year.

2LEC, Inc. (7874) Financial Results for the First 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)First quarter of FY3/24(As of Jun. 30, 2023)

Cash and deposits

26,51027,068Notes and accounts receivable - trade

9,713

10,216

Securities1,802

1,501

Merchandise and finished goods

9,162

9,238

657

553

Raw materials and supplies

2,665

2,656

Other

1,680

2,088

(6)

(4)

52,18553,319AssetsCurrent assets

Work in process

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

8,083

7,947

Machinery, equipment and vehicles, net

7,151

6,779

Other, net

9,687

9,891

Total property, plant and equipment

24,922

24,618Goodwill

117

80

Other

566

530

Total intangible assets

683

610

Investment securities

5,031

5,564

Other

1,493

1,395

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

6,524

6,960

32,13032,18884,31685,508Intangible assets

Investments and other assets

Total non-current assets
Total assets

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

FY3/23(As of Mar. 31, 2023)(Millions of yen)First quarter of FY3/24(As of Jun. 30, 2023)

2,288

2,523

200

1,200

5,398

5,648

150

234

86

Provision for bonuses

386

211

Provision for loss on disaster

3535Other3,012

2,782

Total current liabilities

11,47912,642

34,05533,268Provision for share awards

273

270

Retirement benefit liability

361

350

Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for product warranties

Non-current liabilities
Long-term borrowings

Asset retirement obligations

27

27

Other

1,839

2,043

Total non-current liabilities

36,55835,96048,037

48,603

Share capital

5,491

5,491

Capital surplus

7,211

7,211

Retained earnings

21,573

21,582

Treasury shares(2,107)(2,103)

Total shareholders' equity

32,16932,181

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

1,372

1,559

252

609

Foreign currency translation adjustment

681

706

Remeasurements of defined benefit plans

(43)

(42)

Total accumulated other comprehensive income

2,263

2,833

Share acquisition rights

206

206

Non-controlling interests

1,640

1,684

Total net assets

36,27936,90584,31685,508

Total liabilities
Net assetsShareholders' equity

Total liabilities and net assets

4LEC, Inc. (7874) Financial Results for the First Quarter of FY3/24(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statements of Income
For the Three-month Period(Millions of yen)First three-months of FY3/23 First three-months of FY3/24(Apr. 1, 2022 – Jun. 30, 2022) (Apr. 1, 2023 – Jun. 30, 2023)
Sales

13,353

14,861

Cost of sales

9,238

10,765Gross profit

4,114

4,095

Selling, general and administrative expenses

3,281

3,483

833

611

Interest income

23

Dividend income

4248

Subsidy income

035

Other

2747

Total non-operating income

72134

Interest expenses

2644

Share of loss of entities accounted for using equity method

1815

Foreign exchange losses

67

1

Other

20

115

62

790

683

Operating income
Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Subsidy income

333-

Gain on liquidation of subsidiaries and associates

97-

Gain on reversal of foreign currency translation adjustment249-

Total extraordinary income

680-

Loss on retirement of non-current assets

10

Total extraordinary losses

101,468683

Income taxes-current

70203

Income taxes-deferred

393

73

Total income taxes

464

277

1,004

406

Net income attributable to non-controlling interests

4041

Net income attributable to owners of parent

964

364

Extraordinary losses

Net income before income taxes

Net income5LEC, Inc. (7874) Financial Results for the First Quarter of FY3/24

Quarterly Consolidated Statement of Comprehensive Income
For the Three-month Period
First three-months of FY3/23(Apr. 1, 2022 – Jun. 30, 2022)
Net income(Millions of yen)First three-months of FY3/24(Apr. 1, 2023 – Jun. 30, 2023)

1,004

406

Valuation difference on available-for-sale securities

(87)

186

Deferred gains or losses on hedges

100

359

Foreign currency translation adjustment

(76)

25

1

1(62)

572

942

978

901

934

4143

Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6LEC, Inc. (7874) Financial Results for the First 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.

7