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 Consolidated Financial Results
for the Year Ended December 31, 2023
(Based on Japanese GAAP)
February 9, 2024
Company name:

C.E.Management Integrated Laboratory Co.Ltd

Stock exchange listing: Tokyo
Stock code:
6171
Representative:
Inquiries:

URL

https://www.dksiken.co.jp/President
Planning Manager

Yuji Shimodaira
Nao ShioiriScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

March 22, 2024
March 22, 2024

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

March 25, 2024
No

Holding of financial results meeting:

NoTEL

03-5846-8385(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(1) Consolidated operating results
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%
Year ended December 31, 2023
7,326
4.7
474(10.9)488 (13.3)
190(45.7)
Year ended December 31, 2022
6,998(4.7)
532
9.6563(4.6)
349
64.0

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%
%%
13.37
4.1
7.0
6.5
24.60
7.8
8.1
7.6

Diluted earnings pershare

Yen
13.38
24.62

Year ended December 31, 2023
Year ended December 31, 2022
(2) Consolidated financial position

Total assets
As of December 31, 2023
As of December 31, 2022

Net assets

Equity ratio

Millions of yen
6,861
7,013

Millions of yen
4,631
4,573

Cash flows fromoperating activities
Millions of yen
952
329

Cash flows frominvesting activities
Millions of yen
(82)
545

Net assets per share%
67.5
65.2

Yen
326.03321.82(3) Consolidated cash flows

Year ended December 31, 2023
Year ended December 31, 2022

Cash flows from
Cash and cash equivalents
at end of periodfinancing activities
Millions of yen
Millions of yen(479)
1,958
(340)
1,566

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

Year ended December 31, 2022
Year ended December 31, 2023
Year ending December 31, 2024
(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%%

––

5.50
6.00

––

5.50
6.00

11.00
12.00

156
170

44.7
89.7

3.5
3.7

–

6.00

–

6.00

12.00

143.1

3. Forecast of consolidated financial results for the year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)
Net sales
Millions of yen
Six months ending
June 30, 2024
Full year

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

3,636

(1.4)

280

6.7

284

4.8

167

9.4

11.78

7,661

4.6

648

36.8

653

33.9

395

107.9

27.82

4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):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:

NoNo

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 December 31, 2023

14,221,995 shares As of December 31, 2022

14,221,995 shares

Number of treasury shares at the end of the period
As of December 31, 2023

17,501 shares As of December 31, 2022

12,000 shares

Average number of shares during the period
Year ended December 31, 2023

14,205,674 shares Year ended December 31, 2022

2

14,210,777 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

1,746,778
72,5612,138,332
52,654

Accounts receivable - trade
Contract assets

1,100,579
179,0111,001,402
258,609

MerchandiseWork in process

2,502
313,881

2,012
295,455

Supplies
Other

16,106240,928

15,61264,111

Allowance for doubtful accounts(2,559)(12,592)

3,669,790

3,815,597

1,333,826

1,280,147

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

145,144
52,822

115,181
37,920Land
Leased assets, net

547,690111,990547,690
117,293

1,143

4,590

2,192,615

2,102,823

Goodwill
Other313,408
258,431

148,277
158,137

Total intangible assets

571,840

306,415

Investments and other assets
Investment securities

342,944

387,064

Deferred tax assets
Other161,71475,088157,043
98,447

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

Construction in progress
Total property, plant and equipment
Intangible assets

Allowance for doubtful accounts(717)(6,277)

Total investments and other assets

579,029

636,278

3,343,485

3,045,517

7,013,275

6,861,115

Total non-current assets
Total assets3

(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

Liabilities
Current liabilities
Accounts payable - trade292,782

231,534

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

50,000216,732–
217,423

Lease liabilities
Accounts payable - other49,634292,464

47,429272,502

Income taxes payable
Provision for bonuses

45,308
4,572

155,645
17,700

Provision for loss on construction contracts
Other

5,580
286,9653,585
307,313

Total current liabilities

1,244,039

1,253,135

Non-current liabilities
Long-term borrowings

707,615494,749

76,229328,510

81,335355,070

Lease liabilities
Retirement benefit liability
Other83,78345,715

1,196,139

976,8712,440,179

2,230,006

Share capital
Capital surplus

1,204,820
1,154,820

1,204,820
1,154,820

Retained earnings
Treasury shares

2,203,853–

2,230,530(0)Total shareholders' equity

4,563,494

4,590,172

8,527

39,027

1,074

1,909

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

49,60140,936

4,573,096

4,631,108

7,013,275

6,861,115

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023

Net sales

6,998,770

7,326,633

Cost of sales

4,345,721

4,590,447

Gross profit

2,653,048

2,736,185

Remuneration for directors (and other officers)
Salaries, allowances and bonuses

247,478
774,974

285,667
796,741

Retirement benefit expenses
Legal welfare expenses

39,429143,381

46,999152,249

Provision of allowance for doubtful accounts
Depreciation

100
92,675

16,22398,098

Amortization of goodwill
Rent expenses on land and buildings

86,236110,215

95,322
118,573

Commission expenses
Other

210,739
415,695

232,447
419,8072,120,925

2,262,130

532,123

474,054

Interest income
Dividend income

615
10,884

157
11,498

Rental income
Surrender value of insurance policies

6,688
10,913

4,079–

Electricity sale income
Other

2,016
7,037

2,075
4,050

Total non-operating income

38,154

21,861

Selling, general and administrative expenses

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

Non-operating expenses
Interest expenses

3,983

4,677

Litigation expenses
Cost of electricity sales

463
1,226

354
1,088

Share-based payment expenses
Foreign exchange losses

342
1,085

84767

138579

7,239

7,551

563,038

488,364

Loss on valuation of investment securities
Impairment losses

8,942
––
113,564

Total extraordinary losses

8,942

113,564

Profit before income taxes

554,096374,799

Income taxes - current

204,802228,649

Income taxes - deferred(527)(43,909)

Total income taxes

204,275

184,740

Profit349,821

190,059

Profit attributable to owners of parent

349,821

190,059

Other
Total non-operating expenses
Ordinary profit
Extraordinary losses

5Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

December 31, 2022

December 31, 2023

349,821

190,059

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

13,066
1,409

30,500834

Total other comprehensive income

14,47531,334364,296

221,394364,296

221,394

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

6

Consolidated statements of changes in equity
Fiscal year ended December 31, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

1,204,820

Retained earnings

1,154,820

Total shareholders'equity2,003,254

4,362,896

Dividends of surplus(149,222)(149,222)

Profit attributable toowners of parent

349,821349,821

Changes during period

Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period––

200,598

200,598

1,204,820

1,154,820

2,203,853

4,563,494

Accumulated other comprehensive income

Balance at beginning of
periodValuation difference on
available-for-salesecurities

Foreign currencytranslation adjustment

Total accumulated othercomprehensive income(4,538)(334)(4,873)

Total net assets

4,358,022

Changes during period
Dividends of surplus(149,222)

Profit attributable toowners of parent

349,821

Net changes in items
other than shareholders'equity

13,066

1,409

14,475

14,475

Total changes during
period13,066

1,409

14,475215,073

Balance at end of period

8,527

1,074

9,601

4,573,096

7Fiscal year ended December 31, 2023
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiodCapital surplus

1,204,820

Retained earnings

1,154,820

Total shareholders'equityTreasury shares

2,203,853–

4,563,494

Changes during period
Dividends of surplus(163,382)(163,382)

Profit attributable toowners of parent

190,059

190,059

Purchase of treasury
shares(0)(0)

Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period––

26,677(0)

26,6771,204,820

1,154,820

2,230,530(0)4,590,172

Accumulated other comprehensive income

Balance at beginning of
periodValuation difference on
available-for-salesecurities

Foreign currencytranslation adjustment

Total accumulated othercomprehensive income

8,527

1,074

9,601

Total net assets

4,573,096

Changes during period
Dividends of surplus(163,382)

Profit attributable toowners of parent

190,059

Purchase of treasury
shares(0)

Net changes in items
other than shareholders'equity30,500834

31,334

31,334

Total changes during
period30,500834

31,33458,012

Balance at end of period

39,027

1,909

40,936

4,631,1088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, 2022

December 31, 2023

554,096374,799

Depreciation
Impairment losses

277,260–

264,341
113,564

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

86,236(10)

95,322
15,591

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on construction–

13,1283,282(1,994)

contracts
Increase (decrease) in retirement benefit liability

5,275

26,559Interest and dividend income
Interest expenses(11,499)
3,983(11,655)
4,677

Surrender value of insurance policies
Foreign exchange losses (gains)(10,913)
1,085

–
767

Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivable and contract assets

8,942
22,158–39,487

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

38,746(69,753)

19,409(61,247)

Increase (decrease) in accounts payable - other
Other, net

8,960(38,865)(18,705)
35,692

Subtotal

878,985

909,740

Interest and dividends received
Interest paid

11,475(4,013)

11,655(4,625)

Proceeds from surrender value of Insurance
Income taxes refund (paid)

10,913(567,868)–
35,776

Net cash provided by (used in) operating activities

329,491

952,546(720,003)(720,000)

1,470,023(43,798)

720,000(52,706)(30,120)(224)(163,201)–

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net32,942(29,117)545,842(82,048)

Cash flows from financing activities
Proceeds from long-term borrowings

200,000

5,000

Repayments of long-term borrowings
Repayments of lease liabilities(334,147)(57,509)(217,175)(54,327)––(50,000)(0)

Dividends paid

(149,296)(163,205)

Net cash provided by (used in) financing activities(340,953)(479,708)

Effect of exchange rate change on cash and cash equivalents

1,304

765

Net cash provided by (used in) investing activities

Redemption of bonds
Purchase of treasury shares

Net increase (decrease) in cash and cash equivalents

535,686

391,554

Cash and cash equivalents at beginning of period

1,031,092

1,566,778

Cash and cash equivalents at end of period

1,566,778

1,958,332

9