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 Six Months Ended June 30, 2022
(Based on Japanese GAAP)
August 12, 2022
Company name:AIRTECH JAPAN,LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

6291
President

URL

https://www.airtech.co.jp
Shinya Hirasawa

Inquiries:
Vice President
Scheduled date to file Quarterly Securities Report:

Naoki Watanabe
August 12, 2022

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

Holding of quarterly 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 six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022)(1) Non-consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales
Six months ended June 30, 2022
Six months ended June 30, 2021

Millions of yen
6,032
8,411

Operating profit

Ordinary profit

Profit% Millions of yen% Millions of yen% Millions of yen%(28.3)
531 (64.1)
803 (51.8)
599 (49.0)
68.2
1,480 329.0
1,665 239.4
1,174 222.3

Earnings per share

Diluted earnings per share

Yen
58.51
113.66Six months ended June 30, 2022
Six months ended June 30, 2021

Yen
58.41
113.14(2) Non-consolidated financial position
Total assets

Net assets

Millions of yen
18,915
19,968As of June 30, 2022
As of December 31, 2021

Equity ratio

Millions of yen
13,48813,456

Net assets per share
%
71.2
67.2

Yen
1,309.90
1,293.71

2. Cash dividends
Annual dividends per share

Year ended December 31, 2021
Year ending December 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
50.00

Yen
50.00

–

50.00

50.00

Year ending December 31, 2022 (Forecast)Total

3. Forecast of non-consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
13,000Operating profit% Millions of yen
(9.0)
1,500

Ordinary profit% Millions of yen(24.7)
1,650

1Profit% Millions of yen(24.9)
1,170

Earnings per share%(26.2)

Yen
114.19

4. Notes(1) Application of special accounting methods for preparing quarterly non-consolidated financial statements: No(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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022

10,475,710 shares As of December 31, 2021

10,450,200 shares

Number of treasury shares at the end of the period
As of June 30, 2022

197,758 shares As of December 31, 2021

72,019 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2022

10,245,238 shares Six months ended June 30, 2021

210,332,077 shares

Quarterly non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of December 31, 2021

As of June 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

7,815,177
3,533,716

6,433,077–Notes and accounts receivable - trade, and contract assets
Electronically recorded monetary claims - operating–
1,310,824

3,477,381
1,313,214

Securities
Merchandise and finished goods

499
1,513,461

598
1,276,710

Work in process
Raw materials and supplies

709,156
483,907602,339
580,551

Other
Allowance for doubtful accounts

32,683(4,511)

161,504(612)

15,394,914

13,844,764

Land
Other

2,226,684
1,653,605

2,226,684
1,980,242

Total property, plant and equipment

3,880,289

4,206,926

85,48271,808619,064(11,640)

791,761(70)

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

Intangible assets
Investments and other assets
OtherAllowance for doubtful accounts
Total investments and other assets

607,423

791,690

4,573,195

5,070,426

19,968,110

18,915,191

1,066,714

860,106

2,247,096
280,000

2,045,586
280,000

Current portion of bonds payable
Current portion of long-term borrowings

100,000
74,256–74,256

Income taxes payable
Provision for product warranties

427,318
9,083

235,819
9,366

Provision for bonuses
Provision for loss on order received

115,449
4,949

113,763
11,371

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings

Other

1,079,597

750,642

Total current liabilities

5,404,464

4,380,910

Long-term borrowings
Provision for retirement benefits

410,785
659,423

352,927
635,149

Provision for loss on guarantees
Other–
37,09923,591
34,134

1,107,307

1,045,802

6,511,771

5,426,713

Non-current liabilities

Total non-current liabilities
Total liabilities3

(Thousands of yen)
As of December 31, 2021As of June 30, 2022

Net assets
Shareholders' equity
Share capital

2,084,215

2,097,429

Capital surplus
Retained earnings

2,127,262
9,258,257

2,141,764
9,417,771

Treasury shares(47,235)(205,895)

13,422,499

13,451,070

Valuation difference on available-for-sale securities

3,832

12,034

Total valuation and translation adjustments

3,832

12,034

Total shareholders' equity
Valuation and translation adjustments

Share acquisition rights
Total net assets
Total liabilities and net assets

4

30,00625,372

13,456,338

13,488,477

19,968,110

18,915,191

Non-consolidated statements of income (cumulative)(Thousands of yen)Six months ended

Six months ended

June 30, 2021

June 30, 2022

Net sales
Cost of sales

8,411,789
5,838,383

6,032,613
4,474,911

Gross profit

2,573,406

1,557,701

360,881

231,472

Remuneration for directors (and other officers)
Salaries

41,887273,172

37,564274,959

Provision of allowance for doubtful accounts
Provision for bonuses(3,459)29,149(15,469)
31,063Retirement benefit expenses
Provision for product warranties

17,068(42,274)

14,302283

Other

416,298452,206

1,092,724

1,026,382

1,480,681

531,319

Selling, general and administrative expenses
Freight and packing costs

Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income

55

19

Dividend income
Other

157,400
34,356

265,457
51,346

Total non-operating income

191,813

316,823

1,236

1,713

–
4,828

23,591
17,568

754

1,607

6,818

44,481

1,665,676

803,662

Gain on reversal of share acquisition rights

–

2,765

Total extraordinary income

–

2,765

Profit before income taxes1,665,676

806,427

Income taxes - current
Income taxes - deferred

460,643
30,704

212,022(5,030)Total income taxes

491,348

206,992

1,174,327

599,435

Non-operating expenses
Interest expenses
Provision for loss on guarantees
Foreign withholding tax
Other
Total non-operating expenses
Ordinary profit
Extraordinary incomeProfit

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

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

June 30, 2021

June 30, 2022

1,665,676

806,427Depreciation
Increase (decrease) in allowance for doubtful accounts

68,597(4,435)70,078(15,469)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits(1,770)(22,457)(1,686)(24,273)

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

3,232(157,456)

2,325(265,477)

Interest expenses
Decrease (increase) in trade receivables

1,236(38,555)

1,713
587,812

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

143,600
3,113(168,999)(408,117)

Increase (decrease) in accounts payable - other
Other, net(153,106)(164,843)(200,256)(166,262)

Subtotal

1,342,829

217,816

Interest and dividends received
Interest paid

126,428(1,333)

162,288(1,092)

Income taxes paid

(369,571)(393,224)

Net cash provided by (used in) operating activities

1,098,354(14,212)

Payments into time deposits
Proceeds from withdrawal of time deposits(268,141)
268,129(290,918)
290,913Purchase of property, plant and equipment
Purchase of investment securities(351,012)–(366,314)(203,600)(3,842)398(354,866)(569,519)

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

260,000(260,000)

150,000(150,000)

Proceeds from long-term borrowings
Repayments of long-term borrowings

150,000(22,134)–(57,858)

Redemption of bonds
Dividends paid–
(336,524)(100,000)(517,466)

Proceeds from issuance of shares
Purchase of treasury shares

7,157
(12)

3,315
(186,571)

Proceeds from disposal of treasury shares
Other, net820(2,352)

24,066(1,635)

Net cash provided by (used in) financing activities(203,046)(836,150)

Effect of exchange rate change on cash and cash equivalents

16,35337,877

Net increase (decrease) in cash and cash equivalents

556,794(1,382,005)

Cash and cash equivalents at beginning of period

5,894,750

7,189,917

Cash and cash equivalents at end of period

6,451,545

5,807,912

Cash flows from investing activities

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

6