Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy
between this translated document and the original Japanese document, the latter shall prevail.

Consolidated Financial Results
for the Year Ended March 31, 2024
(Based on Japanese GAAP)May 15, 2024
Company name:
Foster Electric Company, Limited
Stock exchange listing: Tokyo
Stock code:
6794
URL https://www.foster-electric.com/
Representative:CEO
Kazuhiro Kishi
General Manager, IR and Governance
Inquiries:
Ichiro Kosuge
Management Dept.
Scheduled date of ordinary general meeting of shareholders:June 26, 2024
Scheduled date to file Securities Report:
June 26, 2024
Scheduled date to commence dividend payments:
June 27, 2024
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes

TEL +81-42-546-2305(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2024
122,447
0.9
4,412
80.4
4,305
84.9
2,304 171.7
Year ended March 31, 2023
121,338
33.2
2,445
–
2,327
–
848
–
Note: Comprehensive income:Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2023

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
4.2
4.4
3.6
–
1.7
2.6
2.0

Diluted earnings per
share

Earnings per shareYen
103.7038.23

Year ended March 31, 2024
Year ended March 31, 2023
Reference: Equity in earnings of affiliated companies:¥8,236 million [64.3%]¥5,013 million [-%]

Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2023

¥ - million¥ - million(2) Consolidated financial position
Total assets
As of March 31, 2024
As of March 31, 2023
Reference: Equity capital:

Net assets

Millions of yen
102,747
92,871
As of March 31, 2024
As of March 31, 2023

Equity ratio

Millions of yen
64,31956,515

Net assets per share
%
56.5
55.0

Yen
2,606.90
2,302.49¥58,004 million¥51,095 million(3) Consolidated cash flows

Year ended March 31, 2024
Year ended March 31, 2023

Cash flows fromoperating activities
Millions of yen
15,428354

Cash flows frominvesting activities
Millions of yen(5,396)(1,321)

Cash and cash equivalents
Cash flows fromat end of period
financing activities
Millions of yen
Millions of yen(4,440)20,216
1,776
13,646

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2023
Year ended March 31, 2024
Year ending March 31, 2025
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

10.00
10.00

–
–

10.00
15.00

20.00
25.00

447
559

52.3
24.1

0.9
1.0

–

20.00

–

20.00

40.00

29.6

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
130,000
6.1
5,500
24.6
5,000
15.0
3,000
27.3
134.83
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2024

No(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:
Restatement of prior period financial statements:

No
No
No

(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024

25,000,000 shares As of March 31, 2023

25,000,000 shares

Number of treasury shares at the end of the period
As of March 31, 2024

2,749,532 shares As of March 31, 2023

2,808,421 shares

22,227,254 shares Year ended March 31, 2023

22,188,152 shares

Average number of shares during the period
Year ended March 31, 2024
(Reference) Summary of non-consolidated results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(1) Non-consolidated operating results(Percentages indicate year-on-year changes)
Net salesYear ended March 31, 2024
Year ended March 31, 2023

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

55,394
51,576

7.4
20.5(1,086)(1,676)

-

825
(904)

-

470
(1,016)-

Earnings per share
Year ended March 31, 2024
Year ended March 31, 2023

Diluted earnings
per share

Yen

Yen

21.18
(45.81)-(2) Non-consolidated financial position
Total assets
As of March 31, 2024
As of March 31, 2023
Reference Equity capital:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

46,80242,50017,507
17,00337.4
40.0

786.82766.22As of March 31, 2024
As of March 31, 2023

¥17,507 million¥17,003 million* Consolidated financial statements are not subject to audit by a certified public accountant or an audit corporation.
* Information on proper use of the projected financial results and other notes
Forward-looking statements in this document, including earnings projections, are based on currently available information and certain
assumptions that the Group regards as reasonable at the time of writing. Actual results may differ greatly from the forecast figuresdepending on various factors. For the preconditions of and precautions in using the earnings projections, please refer to “Overview
of operating results, etc.” on page 2 of the Attachment.

○ Contents of Attachment
1. Overview of operating results, etc. .............................................................................................................................................

2(1) Operating results for the year under review ...................................................................................................................... 2(2) Financial position for the year under review ..................................................................................................................... 3(3) Cash flow for the year under review .................................................................................................................................

3(4) Future outlook ...................................................................................................................................................................

3(5) Basic policy for profit sharing and dividends for the current and next fiscal year ...........................................................

4

2. Basic policies concerning the selection of accounting standards ............................................................................................... 4
3. Consolidated financial statements and important notes .............................................................................................................

5(1) Consolidated balance sheet ...............................................................................................................................................

5(2) Consolidated statement of income and consolidated statement of comprehensive income .............................................

7(Consolidated statement of income) .............................................................................................................................

7(Consolidated statement of comprehensive income) ....................................................................................................

8(3) Consolidated statement of changes in shareholders’ equity .............................................................................................

9(4) Consolidated statement of cash flows ...............................................................................................................................

11(5) Notes to the consolidated financial statements .................................................................................................................

13(Notes on going concern assumption) ..........................................................................................................................

13(Changes in presentation method) ................................................................................................................................. 13(Segment information, etc.) ..........................................................................................................................................

14(Per-share information) ................................................................................................................................................

16(Important subsequent events) ......................................................................................................................................

16

-1-

1. Overview of operating results, etc.
(1) Operating results for the year under review
During the fiscal year ended March 31, 2024, the global economy finally saw an end to the over-three-year-long COVID-19 pandemic,
and economic activities have normalized. Meanwhile, geopolitical risks such as those associated with the prolonged Russia–Ukraine war
and the Israeli–Palestinian conflict continued to intensify. Despite the subsiding inflation in developed countries, the persistently highpolicy interest rates in the US and Europe and the slowdown of the Chinese economy, among other factors, have prompted continuing
uncertainties in the global outlook.
The automotive market, the Foster Group (the “Group”)’s focus, has seen an ongoing recovery in automobile production and sales, thanks
to the easing of semiconductor shortages. Against this backdrop, the market continued its shift to electric vehicles (EVs) and consistent
progress was made in the technologies for autonomous driving. Based on these factors, we expect firm demand to continue moving
forward.
Under these circumstances, the Group further stepped up proposal activities to win orders in the automotive business, targeting customers
based on the partner strategy, which is at the core of its operations. We have thus far secured enough orders to meet our target for the
fiscal year ending March 31, 2025, the final year of the current medium-term business plan. In the mobile audio segment, we are
expanding our business based on our high quality, and we secured orders for actuators, and together with earphone drivers and car
headphones, we secured profits for the full year. As for the joint development projects and other collaborations with outside companies
as well as our R&D-oriented businesses, we are pressing ahead with such initiatives while carefully assessing their future prospects.
On the production front, considering further escalation of US–China tensions, we are preparing to begin speaker production at our plantin Binh Duong Province, Vietnam. Mass production is slated to start in the first half of 2025, factoring in the handling of new models.
In addition, we plan to begin producing speakers at our production subsidiary in Hungary in the latter half of 2024, in an effort to promotelocal production and consumption. This initiative also helps reduce CO2 emissions on the logistics front. We are also working to improve
manufacturing efficiency through mechanization, labor-saving, and automation, while optimizing the ratio of external purchase to inhouse manufacture of components in a bid to enhance competitiveness.
As for the challenges posed by soaring raw material, component, and logistics costs, in addition to our ongoing efforts to reduce costs
and fixed expenses, we have strengthened our global logistics system and are seeking to control inventory at appropriate levels by
accurately capturing demand trends. Some projects have incurred higher-than-expected costs due to a partial hike in sea freight costs fromthe recent deterioration of the Middle East situation. However, thanks to the understanding of many of our customers regarding cost passthrough, we have in place a system that ensures ample control and an earnings structure that is less susceptible to changes in the market.
As a result, consolidated net sales for the fiscal year ended March 31, 2024 amounted to ¥122,447 million (up 0.9% YoY), operating
profit to ¥4,412 million (up 80.4% YoY), and ordinary profit to ¥4,305 million (up 84.9% YoY). Profit attributable to owners of parent
was ¥2,304 million (up 171.7% YoY).
Results by segment were as follows.
[Speaker Segment]
Amid the ongoing sales recovery in the automotive market, we focused on the partner strategy and actively promoted sales to target
customers. As a result, despite the shipment volume decline in the first quarter due to some customers adjusting their inventories that
had expanded during the supply chain disruptions, net sales finished at ¥99,175 million (up 0.1% YoY). On the profit front, the decreasein one-off air freight charges and ongoing measures to improve costs, among other factors, lifted earnings, and operating profit rose to¥4,218 million (up 110.5% YoY).
[Mobile Audio Segment]
Sales of consumer actuators were ¥14,197 million (down 3.4% YoY) as a result of securing orders for the full year despite someadjustments in shipment volume and focusing on sales of earphone drivers and car headphones. As a result, net sales came to ¥14,197
million (down 3.4% YoY). On the profit front, operating profit amounted to ¥607 million (down 49.6% YoY).
[Other Segment]
In the Other segment, which includes micro acoustic components and FOSTEX brand products, net sales reached ¥9,074 million (up20.1% YoY), fueled in part by the robust sales of speakers for acoustic vehicle alerting systems. On the profit front, however, werecorded an operating loss of ¥412 million (operating loss of ¥762 million in the previous year). This was attributable to the expenses
incurred in association with our plan to transfer the production of micro acoustic components, previously outsourced to NAM WAH
STAR ELECTRONICS (SHENZHEN) CO., LTD., to our plant in China, with the aim of optimizing the manufacturing system.
Note: As of the fiscal year ended March 31, 2024, the net sales by segment shown above reflect figures after the elimination of intersegment transactions.

-2-(2) Financial position for the year under review
As of March 31, 2024, total assets amounted to ¥102,747 million, up ¥9,876 million from their level on March 31, 2023, mainly due toan increase in cash and deposits. Total liabilities were up ¥2,072 million to ¥38,428 million, chiefly owing to an increase in long-termborrowings aimed at improving our financing structure. Net assets came to ¥64,319 million, up ¥7,804 million, mainly as a result of
increases in retained earnings and foreign currency translation adjustment. The equity ratio was 56.5% as of March 31, 2024, up 1.4
percentage points from March 31, 2023.
(3) Cash flow for the year under review[Operating activities]
Net cash provided by operating activities was ¥15,428 million, due mainly to a decrease in inventories.
[Investing activities]
Net cash used in investing activities totaled ¥5,396 million, due mainly to capital investments.
[Financing activities]
Net cash used in financing activities totaled ¥4,440 million, mainly attributable to a decrease in short-term borrowings.
As a result, cash and cash equivalents as of March 31, 2024 stood at ¥20,216 million, up ¥6,570 million from the level on March 31,
2023.
(4) Future outlook
The global economy is expected to remain uncertain, compounded by geopolitical risks, worldwide inflation, soaring cost-of-living, andrising interest rates, along with concerns over an economic slowdown in China, among other factors.
On the other hand, we anticipate the automotive market, the Group’s focus, to maintain strong performance moving forward. While EV
market growth has slowed down recently, the general shift toward EV is expected to continue. The added value anticipated from theinitiatives centered on autonomous driving and other new technologies is raising expectations for new business opportunities and further
EV market growth.
Under such circumstances, the Group has adopted the vision “to make contributions for future society through acoustics.” We haveembraced the mission statement, “through acoustic products or its solutions, a total commitment to help create a comfortable life andpleasure of communication around the world,” positioning the Group as “a truly global enterprise our future society counts on.” In
addition to solidifying our position in the industry, we will work to create a structure that enables sustainable growth while further
enhancing our businesses and corporate value as a global company.
Although the operating environment remains uncertain, we will implement measures to fully achieve the goals set forth in the mediumterm business plan, which concludes in March 2025. In addition, we will seek to improve productivity and efficiency by clarifying andpromptly addressing the issues that need to be cleared for us to accomplish the plan.
Specifically, the Group will implement various initiatives based on the following policy.
[Basic policy]
The year to achieve medium-term business plan goals[Measures]
1. Proactive business expansion toward the next mediumterm business plan
2. Strengthening of initiatives for new products and new technologies
3. Thorough focus on quality in the automotive business
4. Operational and structural reforms and rigorous enhancement of competitiveness5. Promotion of ESG management
Each employee of the Group will work together as one team, consistently maintaining a positive attitude, and being mindful of taking
on the challenge of new technologies, having passion for growth, responding to changes flexibly, and making unwavering efforts for
improvement. Further, we will steadily continue practicing ESG management to be a corporation that is needed and trusted by society
and the market.
Consolidated earnings projections for the fiscal year ending March 31, 2025 are as follows.
Net sales

Operating profit

Ordinary profit

Profit attributableto owners of parent¥130,000 million¥5,500 million¥5,000 million¥3,000 million* The projections above are based on exchange rates of ¥145 to the US dollar and ¥155 to the euro.

-3-

Notes concerning earnings projections
The earnings projections above are calculated based on information currently available and assumptions made at the present time, which
include risk factors and other uncertainties that may affect future earnings. Actual earnings may differ from the projections and estimates
above due to a broad range of factors including but not limited to economic conditions surrounding the business segments of the Group,business conditions in related markets and at OEM customers, rival and price competition trends in Japan and overseas, market
conditions for raw materials, exchange rates, risks associated with overseas operations, laws and regulations in Japan and overseas,
disasters and accidents, and share prices.
(5) Basic policy for profit sharing and dividends for the current and next fiscal year
The Group regards the enhancement of corporate value as a management priority, and its basic policy is to comprehensively increase
the benefit of shareholders, while balancing profit distributions commensurate with earnings with long-term expansion of internal
reserves. The Group targets a dividend payout ratio of at least 30% on a consolidated basis.
For the fiscal year under review, after comprehensively considering the basic policy, the need to maintain internal reserves for future
growth, and other factors, the Group has decided to pay a year-end dividend of ¥15 per share. Combined with a ¥10 per share interim
dividend, this will bring the annual dividend to ¥25 per share.
For the next fiscal year, the Group forecasts an annual dividend of ¥40 per share, considering the current business environment andfuture earnings outlook.

2. Basic policies concerning the selection of accounting standards
In consideration of the comparability between consolidated financial statements for different fiscal years and companies, the Group’s policy
is to continue to prepare consolidated financial statements under Japanese GAAP for the foreseeable future.
Meanwhile, with an eye to the future adoption of IFRS, the Group is preparing internal manuals, guidelines, and other documentation, andexamining the timing of IFRS adoption.

-4-

3.Consolidated financial statements(1)Consolidated balance sheet(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Securities
Finished goods
Raw materials
Work in process
Supplies
Accounts receivable - other
Advance payments to suppliers
Other
Allowance for doubtful accounts

As of March 31, 2024

13,64624,988482–
20,037
8,195
1,492
137
813
3,096
1,173
(169)

20,21624,934865
649
18,357
7,908
1,539
140
1,673
367
2,381
(109)

73,89378,925

14,585(7,866)

16,964(8,873)

Buildings and structures, net

6,718

8,091

Machinery, equipment and vehicles
Accumulated depreciation

19,367(15,244)

21,681(17,123)

4,122

4,557

12,665(10,901)

12,277(10,390)

1,764

1,887

Land
Construction in progress

1,575
848

3,404
1,437

Total property, plant and equipment

15,03019,377

81
132

189
147

Total intangible assets

214

336

Investments and other assets
Investment securities
Long-term prepaid expenses
Retirement benefit asset
Deferred tax assets
Other

1,446
82
1,313
669
221

2,162
82
1,344
306
212

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

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Intangible assets
Software
Other

Total investments and other assets
Total non-current assets
Total assets

-5-

3,732

4,108

18,977

23,822

92,871

102,747

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Lease liabilities
Income taxes payable
Accrued expenses
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Lease liabilities
Retirement benefit liability
Provision for retirement benefits for directors (and other

As of March 31, 2024

9,380
17,156
300
2,909
137
839
2,274
432
1,369

12,16910,571
775
3,135
483
762
2,288
537
1,175

34,79931,899

–
564
131
81

3,781
681
1,326
108

officers)
Reserve for stocks payment
Asset retirement obligations
Other

24

27

188
264
302

137
–
466

Total non-current liabilities

1,556

6,529

Total liabilities

36,35638,428

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

6,770
6,896
34,531(4,152)

6,770
6,896
36,364(4,042)44,04545,989

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

Total shareholders' equity

385
6,687
(22)

803
11,345(134)

Total accumulated other comprehensive income

7,050

12,014Non-controlling interests

5,419

6,314

Total net assets

56,51564,31992,871

102,747

Total liabilities and net assets-6-

(2)Consolidated statements of income and consolidated statements of comprehensive income(Consolidated statements of income)(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Net sales
Cost of sales

121,338
105,182

122,447
103,610Gross profit

16,155

18,836

Selling, general and administrative expenses

13,70914,424

Operating profit

2,445

4,412

116
64
75
211
327

183
69
6
334
279

794

875

511
143
–

645
85
78

257

173

Non-operating income
Interest income
Dividend income
Subsidy income
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Borrowing fee
Miscellaneous losses
Total non-operating expenses

912

982

2,327

4,305

71
–

707
133

Total extraordinary income

71

841

Extraordinary losses
Impairment losses
Extra retirement payments
Severance payments

67
253
–

–
–
488

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on reversal of asset retirement obligations

321

488

Profit before income taxes

Total extraordinary losses

2,078

4,658

Income taxes - current
Income taxes - deferred

887
(40)

1,475
(25)

846

1,450

1,231

3,207

Total income taxes
ProfitProfit attributable to non-controlling interests

382

902

Profit attributable to owners of parent

848

2,304

-7-

(Consolidated statements of comprehensive income)(Millions of yen)
Fiscal year ended
March 31, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-8-

Fiscal year ended
March 31, 2024
1,231

3,207

61
3,457
263

418
4,785
(174)

3,782

5,028

5,013

8,236

4,145

7,269

867

967

(3)Consolidated statements of changes in equity
Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

6,770

Retained earnings

6,896

Total shareholders'equityTreasury shares

33,906(4,163)43,409Changes during period
Dividends of surplus

(223)

(223)

Profit attributable to ownersof parent

848

848

Purchase of treasury shares––

Disposal of treasury shares

10

10

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–

–

624

10

635

6,770

6,896

34,531(4,152)44,045

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of period323

Foreign currencytranslation

Remeasurementsof defined benefit

adjustment

plans

3,617

Total accumulated
othercomprehensive

Non-controllinginterests

Total net assets

4,469

51,632income
(187)

3,753

Changes during period
Dividends of surplus(223)

Profit attributable to owners848

of parent
Purchase of treasury shares–

Disposal of treasury shares

10

Net changes in items otherthan shareholders' equity

61

3,070

165

3,297

950

4,247

Total changes during period

61

3,070

165

3,297

950

4,882

Balance at end of period

385

6,687

(22)

7,050

5,419

56,515-9-

Fiscal year ended March 31, 2024
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

6,770

Retained earnings

6,896

Total shareholders'equityTreasury shares

34,531(4,152)44,045

Changes during period
Dividends of surplus

(447)

(447)

Profit attributable to ownersof parent

2,304

2,304

Purchase of treasury shares
Disposal of treasury shares

(69)

(69)

(24)

179

155

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–

–

1,833

110

1,944

6,770

6,896

36,364(4,042)

45,989

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of period

385

Foreign currencytranslation

Remeasurementsof defined benefit

adjustment

plans

6,687

Total accumulated
othercomprehensive

Non-controllinginterests

Total net assets

5,419

56,515income(22)

7,050

Changes during period
Dividends of surplus(447)

Profit attributable to owners

2,304

of parent
Purchase of treasury shares(69)

Disposal of treasury shares

155

Net changes in items otherthan shareholders' equity

418

Total changes during period

418

4,657

(111)

4,964

895

7,804

Balance at end of period

803

11,345(134)

12,014

6,314

64,319

4,657

(111)

- 10 -

4,964

895

5,859

(4)Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2024

Fiscal year ended
March 31, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Loss on retirement of property, plant and equipment
Loss (gain) on sale of property, plant and equipment
Borrowing fee
Subsidy income
Impairment losses
Severance payments
Extra retirement payments
Gain on reversal of asset retirement obligations
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in accounts receivable - other
Increase (decrease) in accounts payable - other
Decrease (increase) in advance payments to suppliers
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Severance payments
Extra retirement payments
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Purchase of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of long-term prepaid expenses
Decrease (increase) in time deposits
Other, net
Net cash provided by (used in) investing activities- 11 -

2,078
3,565
(403)
16

4,658
3,197
(3)
22

3

3

76
26
143
(71)
–
(75)
67
–
253
–
(180)
511
1,237
(4,976)2,558(2,695)430(1,149)(2,201)
1,954
1,168
180
(511)
75
–
(253)
(741)
435
354

(79)
100
85
(707)
78
(6)
–
488
–
(133)
(253)
645
183
1,279
4,231
1,990
(801)
(9)
2,990
(14)
17,944
253
(645)
6
(488)
–
(1,672)28
15,428–1,042(0)(2,530)
201
(29)
(68)
111
(47)
(1,321)

(636)
–
(150)
(4,761)
327
(48)
(130)
–
3
(5,396)

(Millions of yen)
Fiscal year ended
March 31, 2024

Fiscal year ended
March 31, 2023
Cash flows from financing activities
Proceeds from long-term borrowings
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Borrowing fee
Purchase of treasury shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 12 -

–
2,818
(818)
(223)
–
–
–
–
1,776

4,750
(7,653)
(493)
(447)
(150)
(78)
(0)
(366)
(4,440)

747

978

1,556
12,08913,646

6,570
13,646
20,216

(5) Notes to the consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Changes in presentation method)(Consolidated balance sheet)
In the fiscal year ended March 31, 2023, “Lease liabilities” were included in “Other” under “Current liabilities” and “Noncurrent liabilities.” However, we have decided to report “Lease liabilities” as an independent item from the fiscal year ended
March 31, 2024 as their monetary impact has increased. The consolidated financial statements for the previous fiscal year havebeen adjusted to reflect this change in presentation.
As a result, ¥137 million previously included in “Other” under “Current liabilities” and ¥131 million included in “Other” under“Non-current liabilities” in the consolidated balance sheet as of March 31, 2023 have been reclassified as “Lease liabilities.”- 13 -

(Segment information, etc.)[Segment information]
1. Outline of reportable segments
The reportable segments are the business units for which the Group is able to obtain separate financial information, and for which
its Board of Directors makes periodic reviews to determine the distribution of management resources and evaluate performance.
The Group distinguishes three business segments according to the nature of the products they provide and the similarity of themarkets they supply: “Speaker Segment,” “Mobile Audio Segment,” and “Other Segment.”
The Speaker Segment manufactures and distributes speakers and speaker systems for automobiles and flat screen TVs, and audio
speakers.
The Mobile Audio Segment manufactures and distributes mobile audio products including headsets for mobile phones,
headphones, micro speakers, and vibration actuators.
The Other Segment manufactures and distributes FOSTEX brand products and micro acoustic components, including electronic
buzzers and sounders for applications such as alarms or warnings, and provides logistics and other services.
2. Method of accounting for net sales, profit or loss, assets, liabilities, and other items for each reportable segment
The accounting method for the reported business segments is in accordance with the accounting policies used to prepare theconsolidated financial statements.
Profit in the reportable segments is based on operating profit.
3. Information on net sales, profit or loss, assets, liabilities, and other items for each reportable segment
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(Millions of yen)Amounts on
consolidated
Adjustments
financial* Note 1statements

Reportable segments
Total
Speaker

Mobile Audio

Other* Note 2

Net sales
Sales to external customers

99,087

14,691

7,558

121,338－

121,338

－

－

2,845

2,845

(2,845)－99,087

14,691

10,403

124,183(2,845)

121,338

Segment profit (loss)

2,004

1,203

(762)

2,445

(0)

2,445

Segment assets

54,733

7,884

7,611

70,22822,642

92,871

2,497

821

246

3,565

－

3,565

(2) Impairment loss

5

39

22

67

－

67

(3) Investment in entities
accounted for using
equity method

－

－

－

－

－

－

2,092

282

184

2,559

－

2,559

Inter-segment sales ortransfers
Total

Other
(1) Depreciation(4) Increase in property, plantand equipment, andintangible assets

Notes: 1. The adjusted amounts are as follows:(1) Segment adjustments reflect the elimination of inter-segment transactions.
(2) The ¥22,642 million in adjustments to segment assets pertain to company-wide assets that are not distributed to eachreportable segment.
2. Total segment profit (loss) is adjusted with the value of operating profit posted in the consolidated statement of income.
3. Information on impairment loss of non-current assets and goodwill by reportable segment(Significant impairment loss on non-current assets)
In the Speaker segment, an impairment loss of ¥5 million was recorded on non-current assets related to business assets.
In the Mobile Audio segment, an impairment loss of ¥39 million was recorded on non-current assets related tobusiness assets.
In the Other segment, an impairment loss of ¥22 million was recorded on non-current assets related to business assets.

- 14 -

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(Millions of yen)Amounts on
consolidated
Adjustments
financial* Note 1statements

Reportable segments
Total
Speaker

Mobile Audio

Other* Note 2

Net sales
Sales to external customers

99,175

14,197

9,074

122,447－

122,447

－

－

3,175

3,175

(3,175)－99,175

14,197

12,250125,623(3,175)

122,447

Segment profit (loss)

4,218

607

(412)

4,412

－

4,412

Segment assets

56,745

7,962

8,832

73,54029,206

102,747(1) Depreciation

2,566

296

334

3,197

－

3,197

(2) Impairment loss

－

－

－

－

－

－

(3) Investment in entities
accounted for using
equity method

－

－

149

149

－

149

3,590

609

609

4,810

－

4,810

Inter-segment sales ortransfers
Total

Other

(4) Increase in property, plantand equipment, andintangible assets

Notes: 1. The adjusted amounts are as follows:(1) Segment adjustments reflect the elimination of inter-segment transactions.
(2) The ¥29,206 million in adjustments to segment assets pertain to company-wide assets that are not distributed to eachreportable segment.
2. Total segment profit (loss) is adjusted with the value of operating profit posted in the consolidated statement of income.

- 15 -

(Per-share information)
The amounts and bases for the calculation of net assets per share and earnings per share are as follows.
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Net assets per share¥2,302.49¥2,606.90

Earnings per share¥38.23¥103.70

Note 1. Diluted earnings per share is not stated as there were no dilutive shares.
Note 2. The basis for calculation of earnings per share is as follows.
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Earnings per share
Profit attributable to owners of parent(millions of yen)

848

2,304

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

Profit attributable to owners of parent
relating to common shares (millions of yen)

848

2,304

22,188,152

22,227,254

Average number of common shares outstanding
for the year (shares)
Note 3. The basis for the calculation of net assets per share is as follows.

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Total net assets (millions of yen)

56,51564,319Amount to be deducted from total net assets(millions of yen)

5,419

6,314

5,419

6,314

Year-end net assets relating to common shares (millionsof yen)51,09558,004

Number of common shares at year-end used for
calculating net assets per share (shares)

22,191,579

22,250,468

Of which, non-controlling interests(millions of yen)

Note 4. In the calculation of net assets per share, the Group’s shares held as trust assets of the Board Benefit Trust (BBT) by Custody
Bank of Japan, Ltd. (Trust E Account) are included in the treasury stock that is deducted from the number of shares outstandingat year-end (158,597 shares at the end of the previous consolidated fiscal year, 162,497 shares at the end of the fiscal year underreview).
In addition, in the calculation of earnings per share, they are included in the treasury stock that is deducted in the calculationof the average number of shares outstanding for the period (162,636 shares in the previous consolidated fiscal year, 130,587
shares in the fiscal year under review).
(Important subsequent events)
Not applicable.

- 16 -