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 Three Months Ended June 30, 2024
(Based on Japanese GAAP)
August 8, 2024
Company name:

Foster Electric Company, Limited

Stock exchange listing: Tokyo
Stock code:
6794
Representative:
Inquiries:

URL https://www.foster-electric.com/

CEOGeneral Manager, IR and GovernanceKazuhiro Kishi
Kiyotaka Kume

Management Dept.
Scheduled date to commence dividend payments:

TEL +81-42-546-2305–

Preparation of supplementary material on financial results:
Holding of financial results meeting:YesNone(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Three months ended June 30, 2024
31,68714.2
1,351 124.1
1,757 245.1
1,106–
Three months ended June 30, 2023
27,750(0.5)
602 331.4
509 394.7(36)–
Note: Comprehensive income:Three months ended June 30, 2024 ¥4,726 million [72.9%]
Three months ended June 30, 2023 ¥2,733 million [(17.7)%]
Earnings per share

Diluted earnings per share

Yen
49.73
(1.63)

Three months ended June 30, 2024
Three months ended June 30, 2023

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2024
As of March 31, 2024
Reference: Equity capital:

Net assets

Equity ratio

Millions of yen
Millions of yen
108,142
68,483
102,747
64,319As of June 30, 2024 ¥61,747 million
As of March 31, 2024 ¥58,004 million

Net assets per share%
57.1
56.5

Yen
2,775.11
2,606.90

2. Cash dividends
Annual dividends per share

Year ended March 31, 2024
Year ending March 31, 2025

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
10.00

Yen–Yen
15.00

Yen
25.00

–

20.00

40.00

Year ending March 31, 2025 (Forecast)
20.00
Note: Changes in dividend forecast subsequent to the most recent announcement: NoneTotal

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Net sales
Full year

Millions of yen
130,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
6.1
5,500
24.6
5,000
15.0
3,000
27.3
134.83

Note: Changes in forecast of financial results subsequent to the most recent announcement: None

4. Notes(1) Significant changes in the scope of consolidation during the three months ended June 30, 2024:

None(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

None(3) 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:
Changes in accounting policies due to other reasons:

Yes
None

Changes in accounting estimates:
Restatement of prior period financial statements:

NoneNone(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

25,000,000 shares

As of March 31, 2024

25,000,000 shares

As of March 31, 2024

2,749,532 shares

Number of treasury shares at the end of the period
As of June 30, 2024

2,749,532 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024

22,250,468 sharesThree months ended June 30, 2023

22,191,579 shares* Quarterly Consolidated Financial Statements reviewed by certified public accountant or audit firm: None
* Information on proper use of the projected financial results and other notes(Precautionary notes on forward-looking statements)
Forward-looking statements in this document, including earnings projections, are based on currently available information and certain
assumptions that the Company regards as reasonable at the time of writing, and the Company does not in any way guarantee theachievement of the projections. Actual results may differ substantially from the forecast figures depending on various factors.
For the preconditions of and precautions in using the earnings projections, please refer to “Explanation of forecast of consolidated financial
results and other forward-looking information” on page 2 of the Attachment.

○ Contents of Attachment
1. Overview of operating results, etc......................................................................................................................................................... 2(1) Operating results for the period under review .............................................................................................................................. 2(2) Financial position for the period under review ............................................................................................................................. 2(3) Explanation of forecast of consolidated financial results and other forward-looking information ............................................... 2
2. Quarterly consolidated financial statements.......................................................................................................................................... 3(1) Consolidated balance sheets ......................................................................................................................................................... 3(2) Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative) ............ 5(3) Consolidated statements of cash flows ......................................................................................................................................... 7(4) Notes to the quarterly consolidated financial statements .............................................................................................................. 8(Notes on going concern assumption) ...................................................................................................................................... 8(Notes on significant changes in the amount of shareholders’ equity) ..................................................................................... 8(Changes in accounting policies) .............................................................................................................................................. 8(Notes on segment information, etc.) ....................................................................................................................................... 9- 1 -1. Overview of operating results, etc.

(1) Operating results for the period under review
During the three months ended June 30, 2024, the global economy continued to face heightened geopolitical risks, including
conflicts between nations and regime changes. In Europe, interest rates were reduced for the first time in about five years,
while the policy interest rate in the US remained unchanged, leading to sharp fluctuations in forex rates. Against this backdrop,
global inflation and concerns about an economic slowdown in China, coupled with the extreme weather, rendered the outlook
uncertain.
In the automotive market, the Foster Group’s (the “Group”) focus, amid a slowing transition to electric vehicles (EVs) and an
overall stagnation in automobile sales, we focused on growing orders in the automotive business through the partner strategy,
leveraging our strengths in providing quality car speakers developed over many years. Further, we strove to improve demand
forecasting accuracy to maintain an optimal production system and inventory levels, and continued promoting cost
improvement measures.
As a result, consolidated net sales in the three months ended June 30, 2024 were ¥31,687 million (up 14.2% YoY), operating
profit was ¥1,351 million (up 124.1% YoY), ordinary profit was ¥1,757 million (up 245.1% YoY), and profit attributable toowners of parent was ¥1,106 million (in the previous year, loss attributable to owners of parent of ¥36 million).
Results by segment were as follows.
[Speaker Segment]
Net sales amounted to ¥25,633 million (up 15.7% YoY) on robust performance, as inventory adjustments at some customers,
which weighed on results a year ago, were completed. On the profit front, operating profit was ¥1,236 million (up 93.5% YoY),
backed by sales growth and ongoing measures to improve costs.
[Mobile Audio Segment]
Net sales were ¥3,800 million (up 4.3% YoY), due to higher-than-expected shipments of earphones and earphone drivers. Onthe profit front, operating profit was ¥218 million (up 480.4% YoY), owed to increased sales of high-margin products.
[Other Segment]
In the Other segment, which includes micro acoustic components and FOSTEX brand products, net sales amounted to ¥2,253
million (up 15.5% YoY) driven by robust sales of speakers for acoustic vehicle alerting systems and other automotive products.
On the profit front, however, the segment posted an operating loss of ¥104 million (in the previous year, operating loss of ¥74
million), due to lingering impact of structural reforms carried out in the previous fiscal year.
(Note) Net sales by segment shown above reflect figures after the elimination of inter-segment transactions.
(2) Financial position for the period under review
As of June 30, 2024, total assets amounted to ¥108,142 million, up ¥5,394 million from March 31, 2024, mainly due toincreases in accounts receivable-trade and finished goods. Owing chiefly to an increase in accounts payable-trade, total
liabilities grew ¥1,230 million to ¥39,659 million. Net assets came to ¥68,483 million, up ¥4,163 million, mainly reflecting
increases in retained earnings and foreign currency translation adjustment. The equity ratio was 57.1% as of June 30, 2024, up
0.6 percentage points from March 31, 2024.
(Cash flows for the period under review)
Cash and cash equivalents as of June 30, 2024 totaled ¥16,321 million, down ¥712 million from the level on March 31, 2024,
as a result of the cash flows described below.
[Operating activities]
Net cash provided by operating activities was ¥1,015 million, chiefly due to an increase in trade payables.
[Investing activities]
Net cash used in investing activities totaled ¥451 million, mainly due to capital investments.
[Financing activities]
Net cash used in financing activities totaled ¥1,890 million, primarily due to a decrease in short-term borrowings.

(3) Explanation of forecast of consolidated financial results and other forward-looking information
At this time, we have not made changes to the full-year forecast announced in the consolidated financial results on May 15,2024.

- 2 -2. Quarterly consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2024

As of June 30, 2024

AssetsCurrent assets
Cash and deposits

20,216

19,708Notes and accounts receivable - trade
Electronically recorded monetary claims - operating

24,934865

26,771
741

Securities
Finished goods

649
18,357–20,526

Raw materials
Work in process

7,908
1,539

7,802
1,483

Supplies
Accounts receivable - other140
1,673

172
1,930

Advance payments to suppliers
Other

367
2,381

1,578
2,684

Allowance for doubtful accounts

(109)

(135)

78,92583,264

8,091

8,235

Machinery, equipment and vehicles, netTools, furniture and fixtures, net

4,557
1,887

4,941
2,019

Land
Construction in progress

3,404
1,437

3,467
1,628

Total property, plant and equipment

19,377

20,291

189

240

Other

147

147

Total intangible assets

336

388

Investment securities
Long-term prepaid expenses

2,162
82

2,374
96

Retirement benefit asset
Deferred tax assets

1,344
306

1,328
204

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

Intangible assets
SoftwareInvestments and other assets

Other
Total investments and other assets
Total non-current assets
Total assets- 3 -212

194

4,108

4,197

23,822

24,877102,747

108,142(Millions of yen)
As of March 31, 2024

As of June 30, 2024Liabilities
Current liabilities
Notes and accounts payable - trade

12,16914,366

Short-term borrowings
Current portion of long-term borrowings

10,571775

10,094775

Accounts payable - other
Lease liabilities

3,135
483

2,838
520

Income taxes payable
Accrued expenses

762
2,288

678
2,092

Provision for bonuses
Other

537
1,175

404
1,447

Total current liabilities

31,89933,218Non-current liabilities
Long-term borrowings

3,781

3,587

Deferred tax liabilities
Lease liabilities

681
1,326

703
1,281

108

110

27

11

137

157Retirement benefit liability
Provision for retirement benefits for directors (and otherofficers)
Provision for share awards
Other466

589

6,529

6,440

38,42839,659

Shareholders' equity
Share capital

6,770

6,770

Capital surplus
Retained earnings

6,896
36,364

6,896
37,135

Treasury shares(4,042)(4,042)

Total shareholders' equity

45,98946,760803
11,345951
14,170Total non-current liabilities
Total liabilities
Net assets

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

(134)

(135)

12,014

14,987

Non-controlling interests

6,314

6,735

Total net assets

64,31968,483

102,747

108,142

Total liabilities and net assets- 4 -(2) Consolidated statements of income (cumulative) and consolidated statements of comprehensive
income (cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended

Three months ended

June 30, 2023

June 30, 2024

Net sales

27,75031,687

Cost of sales

23,98826,488Gross profit

3,761

5,198

Selling, general and administrative expenses

3,158

3,846

Operating profit

602

1,351

Non-operating income
Interest income

2775

14
60

18525

Dividend income
Foreign exchange gains
Miscellaneous income

79

89

Total non-operating income

183

708

Interest expenses
Miscellaneous losses

210
66

187
115

Total non-operating expenses

277

303

Ordinary profit

509

1,757

Profit before income taxes

509

1,757

Income taxes - current

279

492

Income taxes for prior periods
Income taxes - deferred–74(173)(50)

Total income taxes

354

268

Profit154

1,488

Profit attributable to non-controlling interests

190

381

Profit (loss) attributable to owners of parent

(36)

1,106

Non-operating expenses- 5 -Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitThree months ended

Three months ended

June 30, 2023

June 30, 2024
154

1,488

Other comprehensive income
Valuation difference on available-for-sale securities

150

148

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

2,421
6

3,091
(1)

Total other comprehensive income

2,579

3,238

Comprehensive income

2,733

4,726

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,685

4,078

48648

Comprehensive income attributable to non-controllinginterests- 6 -(3) Consolidated statements of cash flows(Millions of yen)Three months ended

Three months ended

June 30, 2023

June 30, 2024

Cash flows from operating activities
Profit before income taxes
Depreciation

509
731

1,757
819

Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability

35029(3)Increase (decrease) in provision for retirement benefits for
directors (and other officers)0(16)Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

2(59)18(138)Interest and dividend income
Interest expenses

(42)
210

(93)
187

Foreign exchange losses (gains)
Decrease (increase) in trade receivables

361
1,567

5(882)

Decrease (increase) in inventories
Increase (decrease) in trade payables

2,568
273(865)
1,735

Decrease (increase) in accounts receivable - other
Increase (decrease) in accounts payable - other(444)(133)(220)(420)

Decrease (increase) in advance payments to suppliers
Other, net

913
(508)

(1,176)778

Subtotal

5,987

1,514

Interest and dividends received
Interest paid

42(210)93(187)

Income taxes paid
Income taxes refund

(485)
–

(578)
173

Net cash provided by (used in) operating activities

5,334

1,015

–

660

Purchase of investment securities
Purchase of property, plant and equipment

(0)
(566)

(0)
(978)

Purchase of intangible assets
Purchase of long-term prepaid expenses

(18)
(20)

(63)
(55)

Other, net

68

(13)

(537)

(451)

(2,117)(150)(1,062)
(193)

(223)
(92)

(336)
(169)

–(128)Net cash provided by (used in) financing activities(2,584)(1,890)Effect of exchange rate change on cash and cash equivalents

358

612

Net increase (decrease) in cash and cash equivalents

2,571

(712)

Cash and cash equivalents at beginning of period

13,646

17,034

Cash and cash equivalents at end of period

16,21816,321

Cash flows from investing activities
Proceeds from redemption of securities

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Other, net- 7 -(4) Notes to the quarterly consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Changes in accounting policies)
We have applied the “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022), “AccountingStandard for Presentation of Comprehensive Income” (ASBJ Statement No. 25, October 28, 2022), and “Guidance on AccountingStandard for Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022) from the beginning of the first quarter of thecurrent fiscal year. These changes had no impact on the quarterly consolidated financial statements.

- 8 -(Notes on segment information, etc.)[Segment information]
I. Three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
1. Information on amount of net sales and profit (loss) for each reportable segment(Millions of yen)Amounts onconsolidated
Adjustments
statement of* Note 1
income* Note 2

Reportable segments
Speaker

Mobile Audio

Total

OtherNet sales
Sales to external customers

22,154

3,644

1,951

27,750－27,750

－

－

727

727

(727)

－

Total

22,154

3,644

2,679

28,478(727)

27,750

Segment profit (loss)

639

37(74)

602

(0)

602

Inter-segment sales or transfers

Notes:

1. Adjustments to segment profit (loss) reflect the elimination of inter-segment transactions.
2. Total segment profit (loss) is adjusted with the operating profit in the quarterly consolidated statement of income.

2. Information on impairment losses of non-current assets or goodwill, etc. for each reportable segment(Important impairment losses of non-current assets)
Not applicable.
II. Three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
1. Information on amount of net sales and profit (loss) for each reportable segment(Millions of yen)Amounts on
consolidated
Adjustments
statement of* Note 1
income* Note 2

Reportable segments
Speaker

Mobile Audio

Total

OtherNet sales
Sales to external customers

25,633

3,800

2,253

31,687－

31,687－－939

939(939)－Total25,633

3,800

3,192

32,626(939)

31,687

Segment profit (loss)

1,236

218(104)

1,351

－

1,351

Inter-segment sales or transfers

Notes:

1. Adjustments to segment profit (loss) reflect the elimination of inter-segment transactions.
2. Total segment profit (loss) is adjusted with the operating profit in the quarterly consolidated statement of income.

2. Information on impairment losses of non-current assets or goodwill, etc. for each reportable segment(Important impairment losses of non-current assets)
Not applicable.

- 9 -