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.

May 12, 2023

Summary of Consolidated Financial Results
For the Year Ended March 2023
(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
Ordinary annual general meeting of shareholders:June 28, 2023
Scheduled date of filing securities report:
June 28, 2023
Scheduled date for Commencement of dividend payments:
June 08, 2023
Preparation of supplemental explanatory materials: None
Results briefing to be held: Yes (for institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Year Ended March 2023
(April 01, 2022 - March 31, 2023)(1) Consolidated Results of Operations(Percentage figures denote change from the same period in the previous year)
Sales

Operating Income

Net income attributableto owners of parent

Ordinary Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

55,4617.9

911(71.6)

1,082(67.3)

942(58.7)

Year Ended March, 2022

51,4233.5

3,206(39.2)

3,305(38.7)

2,282(45.3)

Note: Comprehensive income

Year ended March 2023:
Year ended March 2022:

Year Ended March, 2023

Net income per
share

Year Ended March, 2023

¥1,298 million¥2,502 million

Diluted net income
per share

Ratio of net
income to equity
capital[(48.1)%][(47.4)%]

Ratio of ordinary
income to total
assetsOperating income
to net sales ratio

Yen

Yen

%

%

%

27.24

26.98

2.8

1.4

1.6

6.9
(¥74 million)(¥34 million)

4.6

6.2

Year Ended March, 2022
66.36
65.70
Reference: Equity in earnings of affiliates
Year ended March 2023:
Year ended March 2022:(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

Year Ended March, 2023

84,31636,27940.8

993.22

Year Ended March, 2022

74,60235,75345.5

985.46

Reference:

Equity capital

As of March 31, 2023
As of March 31, 2022

¥34,432 million¥33,977 million

(3) Consolidated Cash Flow
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities
Millions of yen

Millions of yen(7,420)6,850

14,405(9,586)

3,553

11,483

Millions of yen

Millions of yen

Year Ended March, 2023

3,370

Year Ended March, 2022

3,349

2. Dividends
Annual dividends per share

Year Ended March,
2022
Year Ended March,
2023
Year Ending March2024 (Estimate)

Total
dividends

Payout Ratio(consolidated)

Ratio ofdividends to
net assets(consolidate)

1st Quarter

2nd Quarter

3rd Quarter

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

―

17.00

―

13.00

30.00

1,062

45.2

3.1

―

10.00

―

10.00

20.00

712

73.4

2.0

―

10.00

―

10.00

20.00

Year-end

Total

99.1

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

Operating Income

Millions of yen%

Harf Year

29,3009.2

630(54.5)

Full Year

60,000

8.2

1,200

31.7

Millions of yen

Net income attributableto owners of parent

Ordinary Income

Net income
per share%

Millions of yen

%

Yen

630

(51.5)

360(72.1)

10.38

1,200

10.9

700

(25.7)

20.19% Millions of yen

* Notes(1) Changes in significant subsidiaries during the period(Changes in specified subsidiaries resulting in the change in scope of consolidation): Yes
NEW :

0

Excluded :1（LEC Home Products Co.,Ltd）(2) Changes in accounting policies, changes in accounting estimates, and retrospective restatements: None(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) Retrospective restatements: None
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury stock)
As of March, 2023

38,165,340 shares

As of March, 2022

38,165,340 shares(ii) Number of treasury stock at the end of the period
As of March, 2023

3,497,492 shares

As of March, 2022

3,686,447 shares(iii) Average number of issued shares during the period
As of March, 2023

34,590,102 shares

As of March, 2022

34,388,044 shares

Reference: Summary of Non-Consolidated Results
1. Non-consolidated Financial Results for the Year Ended March 2023

(April 01, 2022 - March 31, 2023)(1) Non-consolidated Results of Operations(Percentage figures denote change from the same period in the previous year)
Sales

Operating Income

Ordinary Income

Millions of yen%

Millions of yen

Year Ended March, 2023

49,6795.8

867(72.7)

1,228(65.2)

418(85.0)

Year Ended March, 2022

46,9453.1

3,163(34.4)

3,534(29.3)

2,800(28.9)Net income per share% Millions of yen

Net income%

Millions of yen%

Diluted net income
per share

Yen

Yen

Year Ended March, 2023

12.11

11.99

Year Ended March, 2022

81.43

80.62

(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

Year Ended March, 2023

77,92932,83341.9

941.12

Year Ended March, 2022

68,50732,76847.5

944.42

Reference:

As of March 31, 2022
As of March 31, 2023

Equity capital¥32,626 million¥32,562 million* Financial results reports are exempt from audit 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 notconstitute the Company’s intention to promise the accomplishment of the forecasts. Due to unforeseen
circumstances, 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 notewhen using these projections, please see “(4) Future Outlook” on page four 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 FY3/23

Accompanying Materials ― Contents
1. Overview of Operating Results…………………………………………………………………………….….2(1) Overview of Operating Results for the Fiscal Year Under Review……………………………………….2(2) Overview of Financial Position for the Fiscal Year Under Review……………………………………….2(3) Overview of Cash Flows for the Fiscal Year Under Review……………………………………………...3(4) Future Outlook…………………………………………………………………………………………….4
2. Basic Approach to the Selection of Accounting Standards...………………………………………………….4
3. Consolidated Financial Statements and Major Notes……….…………………………………………………5(1) Consolidated Balance Sheets…………………………………………......………………………………5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income...……....….7(3) Consolidated Statement of Changes in Equity……………………………………………………………9(4) Consolidated Statements of Cash Flows…………………………….….………………………...…..…11(5) Notes to Consolidated Financial Statements…………………………………………………………….13(Notes to going concern assumptions).…….….…...…………………………………………….……..13(Segment information, etc.)…………………………………………………………………………….13(Per share information)…………………………………………………………………………………13(Significant subsequent events)………………………………………………………………………...14
4. Other…………………………………………………………………………………………………………14
Changes of officers………………..……………………………………………………………………14

1

LEC, Inc. (7874) Financial Results for FY3/23

1. Overview of Operating Results(1) Overview of Operating Results for the Fiscal Year Under Review
During the fiscal year ended March 31, 2023, although there was a sudden spread of the COVID-19 caused by
the omicron variant, the Japanese economy continued to recover as the government lifted its restrictions on
movement. On the other hand, future prospects remain uncertain due to factors such as increase in energy and raw
material prices 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 to meet diversifying consumer
needs. Also, we expanded its business by holding a new product presentation and a variety of promotional
activities, such as holding promotional events in cooperation with our business associate. We worked to strengthen
our price competitiveness by renewing our products and reducing costs to cope with rising procurement costs dueto 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 fiscal year ended March 31, 2023 amounted to 55,461 million yen, (up7.9% year on year). Operating income was 911 million yen (down 71.6% year on year) due to the depreciation of
the yen and increases in various costs including raw materials and import expenses, and ordinary income was
1,082 million yen (down 67.3% year on year). Net income attributable to owners of parent was 942 million yen(down 58.7% year on year) due to subsidy income.
Results by product category are as follows.
(Millions of yen)
Product Category
Household products
Cleaning･Sanitary consumables
OthersPrevious consolidated
fiscal year

Current consolidated fiscal
year

22,702
19,626
9,094

24,503
21,444
9,514

Year-over-year
7.9%
9.3%
4.6%

Total
51,42355,461
7.9%
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, Anti-virus products, Cosmetics, Home appliances, Food, etc.

(2) Overview of Financial Position for the Fiscal Year Under Review
As of March 31, total assets increased 9,714 million yen from the end of the previous fiscal year to 84,316
million yen.
Current assets increased 10,480 million yen to 52,185 million yen. This was mainly due to an increase 5,299
million yen in cash and deposits, 1,802 million yen in securities, 1,658 million yen in notes and accounts
receivable - trade, and 1,579 million yen in Merchandise and finished goods.
Non-current assets decreased 766 million yen to 32,130 million yen mainly due to 259 million yen increase ininvestments and other assets, and 756 million yen decrease in property, plant and equipment.
Liabilities increased 9,188 million yen from the end of the previous fiscal year to 48,037 million yen.
Current liabilities decreased 581 million yen to 11,479 million yen. This was mainly due to a decrease 978
million yen in current portion of long-term borrowings.
Non-current liabilities increased 9,769 million yen from the end of the previous fiscal year to 36,558 million yen
mainly due to an increase 8,851 million yen in long-term borrowings.
Net assets increased 525 million yen from the end of the previous fiscal year to 36,279 million yen. This was
mainly due to an increase 215 million yen in accumulated other comprehensive income and a decrease 133
million yen in treasury shares.

2

LEC, Inc. (7874) Financial Results for FY3/23(3) Overview of Cash Flows for the Fiscal Year Under Review
As of March 31, 2023, cash and cash equivalents (below “cash”) increased 2,922 million yen from the end of
the previous fiscal year to 14,405 million yen.
The details of cash flows from each activity and the major components of changes are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 3,370 million yen (compared with 3,349 million yen provided in
the same period of the previous fiscal year). This was mainly due to an increase 4,713 million yen in
depreciation, 1,796 million yen in profit before income taxes, and a decrease 1,939 million yen in an increase ininventories, 1,633 million yen in an increase in trade receivables.
(Cash flows from investing activities)
Net cash used in investing activities was 7,420 million yen (compared with 9,586 million yen used in the same
period of the previous fiscal year). This figure primarily consists of 2,685 million yen in purchase of property,
plant and equipment, 2,384 million yen in net increase in time deposits, and 2,288 million yen in purchase of
short-term and long-term investment securities.
(Cash flows from financing activities)
Net cash provided by financing activities was 6,850 million yen (compared with 3,553 million yen provided in
the same period of the previous fiscal year). This was mainly due to an increase 14,250 million yen in proceedsfrom long-term borrowings, a decrease 6,376 million yen in repayments of long-term borrowings.

Reference: Cash Flow Indices
As of March, 2019 As of March, 2020 As of March, 2021 As of March, 2022 As of March, 2023

Equity ratio(%)

53.3

46.1

47.4

45.5

40.8

Equity ratio (fair market value)(%)

92.9

58.5

63.0

40.7

33.1

Interest-bearing debt to cash flow ratio(years)

5.0

4.0

4.9

9.7

12.3

Interest coverage ratio(times)

54.9

89.4

64.2

35.4

21.7

Notes: 1. All indicator is calculated based on the following formula using consolidated financial figures.
Equity ratio: Equity/total assets
Market-based equity ratio: Market capitalization/total assets
Interest-bearing debts to cash flow ratio: Interest-bearing debts/operating cash flows
Interest coverage ratio: Operating cash flow/interest payment
2. Market capitalization is calculated by multiplying the year-end share price with the number of sharesissued and outstanding at year-end (excluding treasury stock).
3. Interest-bearing debt is the portion of debt recorded in the Consolidated Balance Sheets on whichinterest is being paid.
4. Operating cash flow and interest payment refers to "Cash Flows from Operating Activities" in theConsolidated Statements of Cash Flows and "Interest Paid".

3

LEC, Inc. (7874) Financial Results for FY3/23(4) Future Outlook
As the status of the COVID-19 has been lowered to Category 5 under the Infectious Diseases Control Law, with
COVID-19 life has taken root and economic activity is gradually picking up. In the other hand, the outlook
continues to remain uncertain due to rising geopolitical risks such as the situation in Ukraine, exchange rate
fluctuations, and rising raw material prices.
In the Household Products Business, the business environment expected to become severe as consumer
confidence continues to weak as prices continued to rise due to increases in raw materials, freight and other costs.
Under these circumstances, the Group will expand its business by focusing on the development of products that
respond to diversifying tastes and preferences, as well as products that emphasize functionality, quality and design.
In addition, we will strive to reduce costs by thoroughly improving operational efficiency and productivity.
Incorporating impact from these efforts, the Company's consolidated earnings forecast for the fiscal year March
31, 2024 calls for 60,000 million yen (+8.2% year on year) in sales, 1,200 million yen (+31.7% year on year) in
operating income, 1,200 million yen (+10.9% year on year) in ordinary income, and 700 million yen (−25.7% year
on year) in net income attributable to owners of the parent due to extraordinary income such as subsidy income inthe current period.
We view the return of profits to our shareholders as an important management issue, and will continue to
distribute profits appropriately, taking into consideration capital investment necessary for business expansion andenhancement of internal reserves for new business development.
In terms of dividends, we plan to pay dividends from surplus with a target of a consolidated payout ratio of 20%.
Based on these policies, the Board of Directors of the Company has resolved to pay 10 yen per share for the
fiscal year ended March 31, 2023. Combined with the interim dividend of 10 yen per share, the annual dividend is
20 yen.
For the next fiscal year, we plan to pay 20 yen per share (10 yen out of this will be interim dividend) based on
the earnings forecast and other factors.

2. Basic Approach to the Selection of Accounting Standards
Over the near term, the Company will prepare its financial statements based on Japanese generally accepted
accounting principles(GAAP), taking into account the inter-period comparability of financial statements andcomparability across companies.
In terms of the application of International Financial Reporting Standards(IFRS), the Company will takeappropriate measures in light of the existing circumstances in Japan and overseas.

4LEC, Inc. (7874) Financial Results for FY3/23

3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet
FY3/22(As of Mar. 31, 2022)(Millions of yen)
FY3/23(As of Mar. 31, 2023)

Cash and deposits

21,21026,510Notes and accounts receivable - trade

8,055

9,713

-

1,802

7,582

9,162

592

657

Raw materials and supplies

2,299

2,665

Other

2,004

1,680

Allowance for doubtful accounts

(40)

(6)

41,70452,185

15,357

15,675

Accumulated depreciation(6,940)(7,591)

Buildings and structures, net

8,416

8,083

Machinery, equipment and vehicles

15,33915,745

Accumulated depreciation(6,426)(8,594)

Machinery, equipment and vehicles, net

8,912

7,151

4,920

4,920

AssetsCurrent assets

Securities
Merchandise and finished goods
Work in process

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Land
Leased assets
Accumulated depreciation

937

1,912

(398)

(479)

Leased assets, net

539

1,433

Construction in progress

1,503

1,994

Other

15,355

16,935(13,968)(15,595)

1,387

1,339

25,67924,922

Goodwill

265

117

Other

688

566

Total intangible assets

953

683

Investment securities

4,188

5,031

Deferred tax assets

933

329

Other

1,148

1,163

Allowance for doubtful accounts

（6）

（0）

Total investments and other assets

6,264

6,524

32,89732,13074,602

84,316

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets

5LEC, Inc. (7874) Financial Results for FY3/23

FY3/22(As of Mar. 31, 2022)(Millions of yen)
FY3/23(As of Mar. 31, 2023)

2,477

2,288

200

200

6,376

5,398

Lease liabilities

77

113

Income taxes payable

362

150

-

8

Provision for bonuses

387

386

Provision for loss on disaster

35

35

Other

2,143

2,899

Total current liabilities

12,06011,47925,204

34,055

Lease liabilities

533

1,524

Provision for share awards

274

273

Retirement benefit liability

386

361

Asset retirement obligations

27

27

Other

362

314

26,78836,55838,84848,037

Share capital

5,491

5,491

Capital surplus

7,232

7,211

Retained earnings

21,445

21,573

Treasury shares(2,240)(2,107)

Total shareholders' equity

31,92932,169Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

1,077

1,372

222

252

Foreign currency translation adjustment

784

681

Remeasurements of defined benefit plans

(35)

(43)

Total accumulated other comprehensive income

2,048

2,263

Share acquisition rights

206

206

Non-controlling interests

1,570

1,640

Total net assets

35,75336,27974,602

84,316

Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term borrowings
Current portion of long-term borrowings

Provision for product warranties

Non-current liabilities
Long-term borrowings

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income

Total liabilities and net assets

6LEC, Inc. (7874) Financial Results for FY3/23(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statements of Income
FY3/22(Apr. 1, 2021 – Mar 31, 2022)(Millions of yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

Sales

51,42355,461

Cost of sales

34,70240,864Gross profit

16,72014,597

Selling, general and administrative expenses

13,513

13,686

Operating income

3,206

911

Interest income

24

19

Dividend income

65

89

Foreign exchange gains-

85

Outsourcing service income

67

23

Subsidy income

0

58

Other

140

141

Total non-operating income

298

417

Interest expenses

89

148

Share of loss of entities accounted for using equity method

34

74

Foreign exchange losses

41

-

Other

34

22

Total non-operating expenses

200

246

3,305

1,082

-

564

241

-

-

249

241

813

Impairment losses-

93

Loss on retirement of non-current assets

16

6

Total extraordinary losses

16

99

Net income before income taxes

3,530

1,796

Income taxes-current

1,066

257

Income taxes – deferred

79

454

Total income taxes

1,145

712

Net income

2,384

1,083

102

141

2,282

942

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income
Subsidy income
Corporate attracting subsidy
Gain on reversal of foreign currency translation adjustment
Total extraordinary income
Extraordinary losses

Net income attributable to non-controlling interests
Net income attributable to owners of parent

7

LEC, Inc. (7874) Financial Results for FY3/23

Consolidated Statement of Comprehensive Income(Millions of yen)
FY3/22
FY3/23(Apr. 1, 2021 – Mar. 31, 2022) (Apr. 1, 2022 – Mar. 31, 2023)
Net income

2,384

1,083

Valuation difference on available-for-sale securities

(384)

295

Deferred gains or losses on hedges

140

30

Foreign currency translation adjustment

363

(102)

Remeasurements of defined benefit plans, net of tax

(1)

(7)

Total other comprehensive income

117

215

2,502

1,298

2,399

1,157

102

140

Other comprehensive income

Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

8LEC, Inc. (7874) Financial Results for FY3/23(3) Consolidated Statement of Changes in Equity
Previous consolidated fiscal year (April 1, 2021-March 31, 2022)(Millions of yen)
Accumulated othercomprehensive income

Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

5,491

7,161

Retainedearnings
20,366

Cumulative effects ofchanges in accounting
policies
Restated balance

Treasury shares

Total
shareholders'equityValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges(2,423)30,595

1,461

82

1,461

82

(384)

139

(3)
5,491

7,161

20,363(3)(2,423)30,592

Changes during period
Dividends of surplus(1,199)(1,199)Net income
attributable to ownersof parent

2,282

2,282

Purchase of treasury
shares

(0)

(0)

(1)

Disposal of treasury
shares

72

184

256

Purchase of shares of
consolidated
subsidiaries

－

Other

－

Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period

5,491
Accumulated
Foreigncurrencytranslation
adjustment

Balance at beginning of
period

420

71

1,082

183

1,337

(384)

139

7,232

21,445(2,240)31,929

1,077

222

Share
acquisitionrights

Noncontrollinginterests

Total net assets

other comprehensive income
Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income
(34)

1,930

240

1,467

Cumulative effects ofchanges in accounting
policies
Restated balance

34,234
(3)

420

(34)

1,930

240

1,467

34,231

Changes during period
Dividends of surplus(1,199)Net income
attributable to ownersof parent

2,282

Purchase of treasury
shares(1)

Disposal of treasury
shares256

Purchase of shares of
consolidated
subsidiaries

－

Other

－

Net changes in items
other thanshareholders’ equity

363

(1)

117

(34)

102

185

Total changes during
period

363

(1)

117

(34)

102

1,522

Balance at end of period

784

(35)

2,048

206

1,570

35,7539

LEC, Inc. (7874) Financial Results for FY3/23

Current consolidated fiscal year (April 1, 2022-March 31, 2023)(Millions of yen)
Accumulated othercomprehensive income

Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

5,491

7,232

Retainedearnings
21,445

Treasury shares

Total
shareholders'equityValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges(2,240)31,929

1,077

222

1,077

222

295

30

Cumulative effects ofchanges in accounting
policies
Restated balance

5,491

7,232

21,445(2,240)31,929Changes during period
Dividends of surplus

(816)

(816)

Net income
attributable to ownersof parent

942

942

Purchase of treasury
shares
Disposal of treasury
shares0

Purchase of shares of
consolidated
subsidiaries

(22)

(0)

(0)

133

134
(22)

Other

1

1

Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period

－

(21)

127

133

239

295

30

5,491

7,211

21,573(2,107)32,169

1,372

252

Share
acquisitionrights

Noncontrollinginterests

Total net assets

206

1,570

35,753

Accumulated
Foreigncurrencytranslation
adjustment
Balance at beginning of
period784

other comprehensive income
Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income(35)

2,048

Cumulative effects ofchanges in accounting
policies
Restated balance

784

(35)

2,048

206

1,570

35,753

Changes during period
Dividends of surplus(816)

Net income
attributable to ownersof parent

942

Purchase of treasury
shares(0)

Disposal of treasury
shares

134

Purchase of shares of
consolidated
subsidiaries

(22)

Other

1

Net changes in items
other thanshareholders’ equity

(102)

(7)

215

－

70

286

Total changes of during
period

(102)

(7)

215

－

70

525

Balance at end of period

681

(43)

2,263

206

1,640

36,27910

LEC, Inc. (7874) Financial Results for FY3/23(4) Consolidated Statements of Cash Flows
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(Millions of yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

Cash flows from operating activities
Profit before income taxes

3,530

1,796

Depreciation

3,535

4,713

Impairment losses-

93

Amortization of goodwill

148

148

Share-based payment expenses

226

148

Increase (decrease) in allowance for doubtful accounts

(14)

(40)

Increase (decrease) in provision for bonuses

40

(0)

Increase (decrease) in provision for product warranties-

8

Increase (decrease) in retirement benefit liability

(21)

(24)

Increase (decrease) in provision for share awards

(1)

(1)

Interest and dividend income

(90)

(108)

Interest expenses

89

148

Foreign exchange losses (gains)

(29)

(34)

Gain on reversal of foreign currency translation adjustment

-

(249)

Subsidy income

-

(564)

Corporate attracting subsidy

(241)

-

Decrease (increase) in trade receivables(425)(1,633)

Decrease (increase) in inventories(1,800)(1,939)Decrease (increase) in other current assets

(564)

523

Increase (decrease) in trade payables

296

(238)

Increase (decrease) in other current liabilities

406

588

Other, net

190

59

Subtotal

5,274

3,393

Interest and dividends received

117

122

Interest paid

(94)

(155)

Income taxes paid

(1,948)(829)

Subsidies received-

564

Proceeds from corporate attracting subsidy

-

241

Other

0

33

3,349

3,370

Payments into time deposits(9,712)(16,096)

Proceeds from withdrawal of time deposits

9,712

13,712

Purchase of property, plant and equipment(8,430)(2,685)Purchase of intangible assets

(248)

(31)

Purchase of short-term and long-term investment securities(602)(2,288)Other, net

(305)

(30)

(9,586)(7,420)Net cash provided by (used in) operating activities
Cash flows from investing activities

Net cash provided by (used in) investing activities

11LEC, Inc. (7874) Financial Results for FY3/23

FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(Millions of yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

Cash flows from financing activities
Proceeds from short-term borrowings

2,900

3,800

Repayments of short-term borrowings(2,900)(3,800)

Proceeds from long-term borrowings

6,400

14,250

Repayments of long-term borrowings(1,569)(6,376)

Repayments of finance lease liabilities

(78)

(114)

-

(92)

(1,199)

(815)

0

(0)

3,553

6,850

246

122

Net increase (decrease) in cash and cash equivalents(2,437)

2,922

Cash and cash equivalents at beginning of period

13,921

11,483

Cash and cash equivalents at end of period

11,483

14,405Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

12LEC, Inc. (7874) Financial Results for FY3/23(5) Notes to Consolidated Financial Statements(Notes to going concern assumptions)None to be reported.
(Segment Information)
The Group is mainly engaged in the planning, manufacture and sale of Household products. Accordingly,
description of each segment is omitted because the Group has a single segment, the "Household products andApparel Business."(Per-share information)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

Net assets per share

985.46 yen

993.22 yen

Earnings per share

66.36 yen

27.24 yen

Diluted earnings per share

65.70 yen

26.98 yen

Notes: Basis for calculation(1) Net assets per share
FY3/22(Mar. 31, 2022)

FY3/23(Mar. 31, 2023)

Total net assets on the consolidated balance
sheet (millions of yen)

35,75336,279Net assets related to common shares(millions of yen)

33,97734,432

206
1,570

206
1,640

Number of issued shares of common stock(thousands of shares)

38,16538,165

Number of treasury shares of common
stock (thousands of shares)

3,686

3,497

Number of common stock at the end of theperiod used to calculate net assets per share(thousands of shares)

34,47834,667Main breakdown of the difference(millions of yen)
Share acquisition rights
Non-controlling interests

Notes : The shares of the company remaining in trust recorded as treasury stock in shareholder’s equity are included in the treasury
stock to be deducted from the total number of issued shares at the end of the period in the calculation of net assets per share.
(937,000 shares in the previous consolidated fiscal year, 933,000 shares in the current consolidated fiscal year)13LEC, Inc. (7874) Financial Results for FY3/23(2) Earnings per share and diluted earnings per share
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

FY3/23(Apr. 1, 2022 – Mar. 31, 2023)①Earnings per share
Net income attributable to owners of the parent(millions of yen)

2,282

942

Amount not attributable to ordinary shareholders(millions of yen)－－

Net income attributable to owners of the parent
relating to common stock(millions of yen)

2,282

942

Average number of shares of common stock during
the period (thousands of shares)

34,38834,590－－

Increase in common stock(thousands of shares)

345

330

[Of which, stock acquisition rights(thousands of shares)]

[345]

[330]

－

－

②Diluted earnings per share
Net income adjustment amount attributable to ownersof the parent company (millions of yen)

Overview of residual shares that were not included in
the calculation of the amount of diluted earnings per
share because they do not have a diluting effect.

Notes : The shares of the company remaining in trust recorded as treasury stock in shareholder’s equity are included in the treasury
stock to be deducted in the calculation of the average number of shares during the period in the calculation of the average
number of shares during the period in the calculation of net income per share and diluted earnings per share.
(938,000 shares in the previous consolidated fiscal year, 936,000 shares in the current consolidated fiscal year)(Significant subsequent events)
None to be reported.

4. Other
Changes of officers (as June 28, 2023)
Changes of other officers
Candidates for new director (Director who are Audit & Supervisory Committee Member)
Outside director
Takao Sakaguchi

14