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 13, 2023
Company name:
MAEZAWA KYUSO INDUSTRIES CO .,LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

6485
URL https://www.qso.co.jp/President and Representative Director

Inquiries:

Director,Chief of Administration
Headquarters

Yuichi Taniai
Yoichiro Taniguchi

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

November 13, 2023
December 8, 2023

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

NoNo

TEL

03-3716-1512(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
15,636
1.5
1,190
9.2
1,259
7.3
808
4.5
Six months ended September 30, 2022
15,4019.7
1,090(4.2)
1,174(2.8)
773
(1.5)
Earnings per share

Diluted earnings per share

Yen
37.12
34.84

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

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
44,74244,643As of September 30, 2023
As of March 31, 2023

Equity ratio

Millions of yen
38,452
38,225

Net assets per share
%
85.9
85.6

Yen
1,789.32
1,737.00

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
15.00
18.00

Yen–

Yen
18.00

Yen
33.00

–

18.00

36.00

Year ending March 31, 2024 (Forecast)Total

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
31,500Percentages 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
1.6
2,250
3.0
2,350
3.6
1,580
10.2
71.80

1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):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(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:

No
No

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

23,000,000 shares As of March 31, 2023

23,000,000 shares

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

1,509,778 shares As of March 31, 2023

993,476 shares

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

21,780,109 shares Six months ended September 30, 2022

222,202,396 shares

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

11,236
5,253

10,4605,765Electronically recorded monetary claims - operating
Securities

6,009
400

6,058
300

Merchandise and finished goods
Work in process

5,760
107

5,879
101

Raw materials and supplies
Other

1,442
465

1,404
355

Total current assets

30,67530,324

Buildings and structures, net
Machinery, equipment and vehicles, net

1,948
655

2,291
679

Land
Construction in progress

4,622
261

4,622
28

221

243

7,708

7,865

648
276

521
257Non-current assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets
SoftwareGoodwill
Other

23

23

Total intangible assets

948

802

Investment securities
Long-term loans receivable

3,837
4

4,576
4

Insurance funds
Deferred tax assets

1,241
133

1,057
12

Other
Allowance for doubtful accounts

97(3)

102
(3)

Total investments and other assets

5,310

5,749

13,967

14,41844,64344,742

Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Accounts payable - trade

3,417

3,177

Electronically recorded obligations - operating
Income taxes payable

451
484

580
357

Provision for bonuses
Provision for bonuses for directors (and other officers)

251
20

238
14

Buy-sell transaction liability
Other

60
916

99780

Total current liabilities

5,602

5,248

Non-current liabilities
Deferred tax liabilities

267

436

466
4

534
4

Retirement benefit liability
Asset retirement obligations
Other77

66

Total non-current liabilities

816

1,042

6,418

6,290

Share capital
Capital surplus

3,358
3,711

3,358
3,711

Retained earnings
Treasury shares

30,304(941)

30,706(1,546)

Total shareholders' equity

36,432

36,230

1,417

1,792

385
(10)

467(36)

1,792

2,222

38,22538,45244,64344,742

Total liabilities
Net assets
Shareholders' equity

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
Total net assets
Total liabilities and net assets

4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

15,401
11,136

15,636
10,977Gross profit

4,264

4,658

Selling, general and administrative expenses

3,174

3,467

Operating profit

1,090

1,190

Interest income
Dividend income

1153

1058

Foreign exchange gains
Other1711–
29

Total non-operating income

9498

Non-operating incomeNon-operating expenses
Foreign exchange losses–13

Loss on cancellation of insurance policies
Other

100

132

Total non-operating expenses

1029

1,174

1,259

Gain on sale of non-current assets

00

Total extraordinary income

00

Loss on sale of non-current assets
Loss on retirement of non-current assets

30–
2Total extraordinary losses

32Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes

1,171

1,257

Income taxes

397

449

Profit773

808

Profit attributable to owners of parent

773

808

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
773

808

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

(151)
217

374
81

Remeasurements of defined benefit plans, net of tax

2(25)

68430

Comprehensive income

Total other comprehensive income

842

1,238

Comprehensive income attributable toComprehensive income attributable to owners of parent

842

1,238

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

1,171

1,257

Depreciation
Amortization of goodwill

283
19306
19

Insurance claim income
Increase (decrease) in retirement benefit liability

–(20)

(2)
31

Share-based payment expenses
Increase (decrease) in provision for bonuses

11(1)

13(12)

Increase (decrease) in provision for bonuses for directors(and other officers)

(6)

(6)

Interest and dividend income
Foreign exchange losses (gains)

(65)
(17)

(69)
13Surrender value of insurance policies
Loss (gain) on cancellation of insurance policies

(6)
16(4)
17

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

(566)
(978)

(555)
(13)

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

(947)
127

(116)
5

Decrease (increase) in accounts receivable - other
Other, net

(89)
(131)

154
42

(1,201)

1,082

54–

73
2(0)
(262)

(0)
(435)

(1,409)

722–

(271)

Proceeds from withdrawal of time deposits
Proceeds from redemption of securities

–300

295
100

Purchase of investment securities
Purchase of property, plant and equipment

(300)
(219)

(200)
(562)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets0(275)

0(17)Repayments of insurance funds contract
Proceeds from cancellation of insurance funds

(109)
415

(166)
336

SubtotalInterest and dividends received
Proceeds from insurance income
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits

Proceeds from collection of long-term loans receivable

00(189)(486)

Repayments of lease liabilities
Dividends paid

(2)
(443)

(0)
(395)

Purchase of treasury shares–(628)Net cash provided by (used in) financing activities(446)(1,025)

Effect of exchange rate change on cash and cash equivalents

61

1

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

Net increase (decrease) in cash and cash equivalents(1,983)(788)

Cash and cash equivalents at beginning of period

13,546

10,498Cash and cash equivalents at end of period

11,562

9,710

7