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.

Summary of Non-Consolidated Financial Results
for the Year Ended December 31, 2020
(Based on Japanese GAAP)
February 12, 2021
Company name:AIRTECH JAPAN,LTD.

Stock exchange listing: Tokyo
Stock code:
6291
Representative:
Inquiries:

URL

http://www.airtech.co.jp

President
Vice President

Shinya Hirasawa
Naoki Watanabe

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

March 29, 2021
March 29, 2021

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

March 30, 2021
Yes

Holding of financial results meeting:

Yes

TEL

03(3872)9192(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Non-consolidated financial results for the year ended December 31, 2020 (from January 1, 2020 to December 31, 2020)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended December 31, 2020
Year ended December 31, 2019

Millions of yen
12,487
10,442

Operating profit
%
19.6
2.5

Millions of yen
1,414
435

Diluted earnings per
share
Yen
Yen
114.29113.5045.33–

Earnings per share
Year ended December 31, 2020
Year ended December 31, 2019

Ordinary profit

%
224.7
1.9

Millions of yen
1,562
585

Profit% Millions of yen
166.8
1,136
(0.1)
405

%
180.4
(1.2)

Ordinary profit/total Operating profit/net
assets
sales
%
%
%
10.3
9.3
11.3
4.0
4.0
4.2

Profit/equity(2) Non-consolidated financial position
Total assets
As of December 31, 2020
As of December 31, 2019

Net assets

Equity ratio

Millions of yen
18,82914,664

Millions of yen
12,164
10,112

Cash flows fromoperating activities
Millions of yen
914
773

Cash flows frominvesting activities
Millions of yen
(761)
(402)

Net assets per share
%
64.4
68.4

Yen
1,174.55
1,122.13(3) Non-consolidated cash flows

Year ended December 31, 2020
Year ended December 31, 2019

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
1,004
5,894
(231)
4,748

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

Year ended December 31, 2019Year ended December 31, 2020
Year ending December 31, 2021
(Forecast)

Dividend payout Ratio of dividends
Total cashratio
to net assets
dividends (Total) (Non-consolidated)(Non-consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

0.00
0.00

–
–

22.00
33.00

22.00
33.00

196
340

48.5
30.0

1.9
2.8

–

0.00

–

25.00

25.00

1

36.1

3. Forecast of non-consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
11,500Operating profit% Millions of yen
(7.9)
800

Ordinary profit% Millions of yen(43.5)
970

Profit% Millions of yen(37.9)
689

Earnings per share%(39.4)

Yen
69.29

4. Notes(1) 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:

No
No

Restatement of prior period financial statements:

No(2) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2020

10,403,500 shares As of December 31, 2019

9,097,500 shares

Number of treasury shares at the end of the period
As of December 31, 2020

75,699 shares As of December 31, 2019

154,699 shares

9,944,064 shares Year ended December 31, 2019

8,940,909 shares

Average number of shares during the period
Year ended December 31, 20202

Non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of December 31, 2019

As of December 31, 2020

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

5,373,311
1,080,072

6,520,039
1,506,478

Accounts receivable - trade
Electronically recorded monetary claims - operating

2,391,667
767,751

3,242,362
1,206,374

Securities
Merchandise and finished goods

476
716,661452
840,165

Work in process
Raw materials and supplies

480,666
314,309

870,751
387,413

Prepaid expenses
Other

10,834
8,143

10,662
13,843

Allowance for doubtful accounts(12,774)(8,947)

11,131,122

14,589,596

2,027,573

2,331,643(1,338,991)(1,375,085)

688,581956,557

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

72,21975,805(60,477)(62,166)

11,741

13,639345,392

349,000

Accumulated depreciation(222,130)(243,586)

Machinery and equipment, net

123,261

105,413

Machinery and equipment

VehiclesAccumulated depreciation
Vehicles, net

9,310

8,310

(8,713)(8,310)597

0357,880

369,926(304,608)(331,497)

53,271

38,4282,036,951

2,055,014

64,742395,7032,979,147

3,564,757

SoftwareLeased assets

62,482
9,617

109,233
2,321

Telephone subscription right

3,471

3,471

Total intangible assets

75,572

115,026

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets3

(Thousands of yen)
As of December 31, 2019

As of December 31, 2020

Investments and other assets
Investment securities
Investments in capital of subsidiaries and associates

133,976
20,992

123,563
79,781

Distressed receivables
Deferred tax assets

42,070305,482

26,824
338,750

Other
Allowance for doubtful accounts

18,382(42,070)

18,082(26,824)

Total investments and other assets

478,833

560,177

Total non-current assets
Total assets

3,533,553

4,239,962

14,664,676

18,829,558

Liabilities
Current liabilities
Notes payable - trade564,421698,263

1,402,614
222,526

2,327,072
621,824

Short-term borrowings
Current portion of long-term borrowings

300,000
39,687300,000
44,268

Lease obligations
Accounts payable - other

11,085538,866

4,704
542,643

Accrued expenses
Income taxes payable

191,675
124,483

281,393
407,141

Advances received
Deposits received

35,82280,229177,510106,010

Provision for bonuses
Provision for loss on order received

87,473
9,927

108,522
4,109

Provision for product warranties
Other

26,817
1,169

51,242
4,084

3,636,799

5,678,790

100,000

100,000

Long-term borrowings
Lease obligations

55,51014,080163,035
9,380

Provision for retirement benefits
Asset retirement obligations

732,959
11,604

701,519
12,291

1,574–Electronically recorded obligations - operating
Accounts payable - trade

Total current liabilities
Non-current liabilities
Bonds payable

Other
Total non-current liabilities
Total liabilities

4915,730

986,227

4,552,529

6,665,018

(Thousands of yen)
As of December 31, 2019

As of December 31, 2020

Net assets
Shareholders' equity
Share capital

1,517,929

2,056,919

Capital surplus
Legal capital surplus

1,525,338

2,064,277

Other capital surplus–

33,973

Total capital surpluses

1,525,338

2,098,251

132,600

132,600

303,000
6,639,370

303,000
7,579,097

7,074,970

8,014,697(101,823)(49,841)

10,016,414

12,120,026

Valuation difference on available-for-sale securities

18,542

10,453

Total valuation and translation adjustments

18,542

10,453Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Valuation and translation adjustments

Share acquisition rights
Total net assets
Total liabilities and net assets

577,19034,060

10,112,147

12,164,540

14,664,676

18,829,558

Non-consolidated statements of income(Thousands of yen)

Net sales
Net sales of finished goods

Fiscal year ended

Fiscal year ended

December 31, 2019

December 31, 2020

10,252,733

Net sales of goods

12,229,149

189,682

258,187

10,442,415

12,487,337

519,950
11,351

705,089
11,572

Cost of products manufactured
Cost of purchased goods

8,277,830
144,848

9,008,882
197,071

Total

8,953,981

9,922,614

705,089
11,572

821,641
18,524

8,237,319

9,082,448

891
9,927

9,927
4,109

2,196,059

3,410,706

Total net sales
Cost of sales
Beginning finished goods inventory
Beginning merchandise inventory

Ending finished goods inventory
Ending merchandise inventory
Total cost of sales
Reversal For Loss On Order
Provision For Loss On Order
Gross profit
Selling, general and administrative expenses
Freight Charge

325,655

473,248

Travel and transportation expenses
Remuneration for directors (and other officers)

76,974
115,553

58,411
116,385

Salaries and allowances
Bonuses508,506
124,541

532,090
179,159

Provision for bonuses
Retirement benefit expenses

22,81233,93130,58434,083

Provision for product warranties
Provision of allowance for doubtful accounts(2,858)53,64324,425(19,072)

Legal welfare expenses
Depreciation

107,715
14,804122,081
14,871

Rent expenses
Research and development expenses

23,147
116,873

28,893112,813

Other
Total selling, general and administrative expenses
Operating profit

239,048

287,949

1,760,350

1,995,924

435,708

1,414,782

Non-operating income
Interest income

1,236

417

Dividend income
Other

138,689
16,848168,052
15,696

Total non-operating income

156,774

184,165

6

(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2019

December 31, 2020

Non-operating expenses
Interest expenses

2,054

2,281

Interest on bonds
Share issuance costs

300
–

300
12,574

3,709

11,991
9,116

796

253

Foreign exchange losses
Foreign withholding tax
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of software

6,861

36,518585,621

1,562,429

7,200

–

Total extraordinary losses

7,200

–

Profit before income taxes

578,421

1,562,429

Income taxes - current
Income taxes - deferred

176,741(3,638)456,905(30,944)

Total income taxes

173,103425,960

Profit405,318

1,136,469

7

Non-consolidated statements of changes in equity
Fiscal year ended December 31, 2019
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning of period

Share capital

Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus1,517,053

1,524,463–

1,524,463

876

875

Legal retained
earnings
General reserve

132,600

303,000

Retainedearnings
brought
forward6,412,869

Changes during period
Issuance of new shares - exerciseof share acquisition rights

875

Dividends of surplus(178,816)

Profit405,318

Purchase of treasury shares
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

876

875

–

875

–

–

226,501

1,517,929

1,525,338

0

1,525,338

132,600

303,000

6,639,370

Valuation and translation
adjustments

Shareholders' equity
Retainedearnings
Total retained
earnings
Balance at beginning of period

6,848,469

Treasury shares

Total
shareholders'equityValuationdifference on
available-forsale securities

Total valuationand translation
adjustments(101,790)

9,788,194

11,836

11,836

Shareacquisitionrights

57,356

Total net assets

9,857,387

Changes during period
Issuance of new shares - exerciseof share acquisition rights
Dividends of surplus(178,816)

Profit405,318

Purchase of treasury shares

1,751

1,751

(178,816)(178,816)

405,318

405,318

(32)

(32)

(32)

Net changes in items other thanshareholders' equity

6,706

6,706

19,833

26,539Total changes during period

226,501(32)

228,219

6,706

6,706

19,833

254,759

Balance at end of period

7,074,970(101,823)

10,016,414

18,542

18,542

77,190

10,112,147

8

Fiscal year ended December 31, 2020
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning of period

Share capital

Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus1,517,929

1,525,338

0

1,525,338

538,990538,939

Legal retained
earnings
General reserve

132,600

303,000

Retainedearnings
brought
forward6,639,370

Changes during period
Issuance of new shares - exerciseof share acquisition rights

538,939

Dividends of surplus(196,741)

Profit1,136,469

Disposal of treasury shares

33,97333,973

Net changes in items other thanshareholders' equity
Total changes during period

538,990538,939

33,973572,91300939,727

Balance at end of period

2,056,919

2,064,277

33,973

2,098,251

132,600

303,000

7,579,097

Valuation and translation
adjustments

Shareholders' equity
Retainedearnings
Total retained
earnings
Balance at beginning of period

7,074,970

Treasury shares

Total
shareholders'equityValuationdifference on
available-forsale securities

Total valuationand translation
adjustments(101,823)

10,016,414

18,542

18,542

Shareacquisitionrights77,190Total net assets

10,112,147

Changes during period
Issuance of new shares - exerciseof share acquisition rights

1,077,929

1,077,929

Dividends of surplus(196,741)(196,741)(196,741)

Profit1,136,469

1,136,469

1,136,469

85,95585,955

Disposal of treasury shares

51,982

Net changes in items other thanshareholders' equity(8,089)(8,089)(43,130)(51,219)

Total changes during period

939,727

51,982

2,103,612(8,089)(8,089)(43,130)

2,052,393

Balance at end of period

8,014,697(49,841)

12,120,026

10,453

10,45334,06012,164,540

9

Non-consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

December 31, 2019

December 31, 2020

578,421

1,562,429

Depreciation
Increase (decrease) in allowance for doubtful accounts

118,023
50,638109,653(19,072)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits

1,997(29,842)

21,049(31,440)

Increase (decrease) in provision for loss on order received
Interest and dividend income

9,035(139,925)(5,818)(168,469)

Interest expenses on borrowings and bonds
Foreign exchange losses (gains)

2,354
3,193

2,581
10,984

Decrease (increase) in trade receivables
Decrease (increase) in inventories

518,786
48,268(1,715,722)(586,693)

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other(549,244)
129,658

1,457,598(27,057)(5,187)
21,46486,577
141,688

Other, net(11,756)

101,993

Subtotal

745,886

940,282

Interest and dividends received

139,925

168,501

Interest paid
Income taxes paid

(2,326)(109,673)(2,568)(191,878)

Net cash provided by (used in) operating activities

773,812914,336(671,199)(671,255)

Proceeds from withdrawal of time deposits
Purchase of investment securities

671,146(14,085)

671,203–

Purchase of property, plant and equipment
Purchase of intangible assets(336,332)(52,185)(643,137)(63,138)–(58,789)

Increase (decrease) in accrued expenses
Increase (decrease) in advances received

Cash flows from investing activities
Payments into time deposits

Payments for investments in capital of subsidiaries andassociates
Other, net

18

3,230

(402,639)(761,886)

Proceeds from short-term borrowings
Repayments of short-term borrowings

400,000(400,000)

400,000(400,000)

Proceeds from long-term borrowings
Repayments of long-term borrowings–(41,412)

170,000(57,894)

Dividends paid
Proceeds from issuance of shares(179,169)
1,751(196,672)
1,032,759

Proceeds from disposal of treasury shares
Other, net–(12,558)

64,780(8,255)

Net cash provided by (used in) financing activities(231,388)

1,004,717

Effect of exchange rate change on cash and cash equivalents(3,266)(10,516)

Net increase (decrease) in cash and cash equivalents

136,517

1,146,651

Cash and cash equivalents at beginning of period

4,611,581

4,748,099

Cash and cash equivalents at end of period

4,748,099

5,894,750

Net cash provided by (used in) investing activities
Cash flows from financing activities

10