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 Six Months Ended September 30, 2023
(Based on Japanese GAAP)
November 10, 2023
Company name:AIPHONE CO., LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

6718
URL https://www.aiphone.co.jp/
President (Representative Director)
Tomio Suzuki

Inquiries:

Executive Officer,General Manager,
Administrative Headquarters

Naoki Isomura

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 13, 2023
December 12, 2023

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
Yes

052-228-8181(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(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%
Six months ended September 30, 2023
30,15126.3
3,020 128.1
3,504 108.0
2,639 109.6
Six months ended September 30, 2022
23,863(5.8)
1,324 (59.3)
1,685 (50.9)
1,258 (54.7)
Note: Comprehensive income

Six months ended September 30, 2023

¥4,605 million [55.6%]

Six months ended September 30, 2022

¥2,960 million [24.0%]

Earnings per share

Diluted earnings per shareYen
161.4277.05

Six months ended September 30, 2023
Six months ended September 30, 2022

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2023
As of March 31, 2023
Reference: Equity

Net assets

Millions of yen
74,98270,597

Equity ratio

Millions of yen
62,41758,391

As of September 30, 2023

¥62,417 million

As of March 31, 2023

¥58,391 million

%
83.2
82.7

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 20241st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
40.00
50.00

Yen–

Yen
40.00

Yen
80.00

–

50.00

100.00Year ending March 31, 2024 (Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: Yes

1Total3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Net sales
Full year

Millions of yen
60,000Percentages 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
13.6
5,500
46.3
6,200
48.8
4,600
57.0
281.58

Note: Revisions to the forecast of financial results most recently announced: No
4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoYes(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:

NoNo

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

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

18,220,000 shares As of March 31, 2023

18,220,000 shares

Number of treasury shares at the end of the period
As of September 30, 2023

1,855,052 shares As of March 31, 2023

1,885,849 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

16,349,565 shares Six months ended September 30, 2022

16,338,091 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Explanation of proper use of financial results forecast, and other special matters
The forward-looking statements, including the financial results forecast shown in this document, are based on information currently available tothe Company and on certain assumptions deemed to be reasonable by the Company. As such, they do not constitute guarantees by the Companyof future performance. Actual performance and other results may differ materially due to various factors.

2

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

14,325
10,341

19,65810,513

Electronically recorded monetary claims - operating
Securities

3,084
652

2,988500

Finished goods
Work in process

9,339
2,836

8,716
2,700

Raw materials
Other

9,528
1,010

9,747
486

(46)

(54)

51,07055,259

6,477

6,748

Accumulated depreciation(4,732)(4,900)

Buildings and structures, net

1,745

1,847

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

2,820

3,041

Accumulated depreciation(1,916)(2,207)904

833

Tools, furniture and fixtures

Machinery, equipment and vehicles, net

8,080

8,211

Accumulated depreciation(7,431)(7,532)

649

679

Land

4,130

4,164

Leased assets
Accumulated depreciation

615(285)

701(352)

330

349

Tools, furniture and fixtures, net

Leased assets, net
Construction in progress

26

71

7,786

7,945

Other

00

Total intangible assets

00

8,458
2,341

8,500
2,297

Other
Allowance for doubtful accounts

940
(0)

980
(0)

Total investments and other assets

11,739

11,777

19,526

19,72370,59774,982

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Deferred tax assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Electronically recorded obligations - operating

568

576

Accounts payable - trade
Lease liabilities

2,681
136

1,874
151

Income taxes payable
Contract liabilities

211
309

1,172
344

Provision for product warranties
Other363
4,867

327
4,928

Total current liabilities

9,139

9,376

189

188

24118

27
118

558
2,174

606
2,247

Non-current liabilities
Lease liabilities
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Retirement benefit liability
Other
Total non-current liabilities

3,066

3,188

12,205

12,565

Shareholders' equity
Share capital

5,388

5,388

Capital surplus
Retained earnings

5,408
45,8375,430
47,823

Total liabilities
Net assets

Treasury shares(3,218)(3,165)

Total shareholders' equity

53,41655,476

Valuation difference on available-for-sale securities
Revaluation reserve for land

2,184(426)

2,629(426)Foreign currency translation adjustment
Remeasurements of defined benefit plans

3,288(72)4,804(66)

Accumulated other comprehensive income

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4

4,974

6,940

58,391

62,41770,59774,982

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2022

September 30, 2023

Net sales
Cost of sales

23,863
13,18230,151
16,904Gross profit

10,681

13,246

Selling, general and administrative expenses

9,357

10,226

Operating profit

1,324

3,020

Interest income
Dividend income

1710256
117

Rental income from buildings
Foreign exchange gains

12222

11301

Non-operating income

Other

30

19

Total non-operating income

385

505

Interest expenses
Other

17
618
2

Total non-operating expenses

2421

1,685

3,504

Gain on sale of non-current assets
Gain on sale of investment securities

17300180

Total extraordinary income

47180

Extraordinary losses
Loss on sale of non-current assets

004–066

Non-operating expenses

Ordinary profit
Extraordinary income

Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses

466

1,727

3,618

468

979

Profit

1,258

2,639

Profit attributable to owners of parent

1,258

2,639

Profit before income taxes
Income taxes

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2022

September 30, 2023

1,258

2,639

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

105
1,604

444
1,515

Remeasurements of defined benefit plans, net of tax(7)

5

1,701

1,966

Comprehensive income

Total other comprehensive income

2,960

4,605

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,960

4,605

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2022

September 30, 2023

1,727

3,618Depreciation
Increase (decrease) in allowance for doubtful accounts

463
2483
2

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for product warranties

(22)
(95)

40
(37)

Interest income
Dividend income

(17)
(102)

(56)
(117)

Foreign exchange losses (gains)
Interest expenses

(64)
17

(89)
18

Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities

–(30)

66
(180)

Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets

(16)
4(0)
0Decrease (increase) in trade receivables
Decrease (increase) in inventories

1,326(3,664)

445
1,291

Increase (decrease) in trade payables
Other, net

17(849)(1,018)580(1,302)

5,047

125(17)175(18)

SubtotalInterest and dividends received
Interest paid
Income taxes paid

(1,485)(188)

Net cash provided by (used in) operating activities(2,680)

5,015

(227)
543

(154)
546

586
(2,808)651(301)

Proceeds from sale of property, plant and equipment
Purchase of investment securities

16(603)0(5)Proceeds from sale of investment securities
Proceeds from cancellation of insurance funds

–218

211–

(2,274)

948

Cash flows from financing activities
Purchase of treasury shares

(0)

(0)

Repayments of lease liabilities
Dividends paid

(85)
(915)

(108)
(653)

Net cash provided by (used in) financing activities(1,000)(762)

Effect of exchange rate change on cash and cash equivalents

472

495

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sale and redemption of securities
Purchase of property, plant and equipment

Net cash provided by (used in) investing activities

Net increase (decrease) in cash and cash equivalents(5,483)

5,697

Cash and cash equivalents at beginning of period

22,577

13,756

Cash and cash equivalents at end of period

17,094

19,4537