May 14, 2024

Fiscal 2024 First-quarter Consolidated Earnings Report（Japanese GAAP）
These financial statements have been prepared for reference in accordance with accounting principles and practices
generally accepted in Japan.
Company name: Star Micronics Co., Ltd.
Stock listing: Tokyo Stock Exchange
Code: 7718
URL https://www.star-m.jp
Representative Director: Mamoru Sato, President and CEO
Inquiries: Seigo Sato, Managing Director, General Manager, Corporate Headquarters
TEL: 054 -263-1111
Scheduled release of Fiscal 2024 First-quarter Business Report: May 14, 2024
Scheduled payment of dividends: Preparation of supplementary explanatory materials for quarterly earnings report: Yes
Quarterly earnings presentation: None
(Figures less than one million are rounded down)

1. Results for the First Quarter of Fiscal 2024 (From January 1, 2024 to March 31, 2024)（Percentages represent changes over the corresponding period of the previous fiscal year）(1) Consolidated Operating Results
Net Income
Net Sales
Operating Income
Ordinary Income
Attributable toOwners of Parent
FY 2024 First Quarter
FY 2023 First Quarter(¥ million)%

13,92021,116(34.1)
20.4(¥ million)%

775
4,106(¥ million)(81.1)
70.2%

9994,324(¥ million)(76.9)
65.3%

626
3,174

(80.3)
73.7(Note) Comprehensive income FY 2024 First Quarter ¥2,498 million［(33.3%)］ FY 2023 First Quarter ¥3,744 million［1.9%］

Net Income
Per Share
FY 2024 First Quarter
FY 2023 First Quarter

Diluted Net Income
Per Share
(¥)

(¥)

17.06
84.21

17.01
83.96

(2) Consolidated Financial Position
Total Assets

Net Assets(¥ million)

As of March 31, 2024
95,542As of December 31, 2023
93,398Reference: Shareholders' Equity
As of March 31, 2024 ¥81,372 million

Equity Ratio(¥ million)%

81,75280,34685.2
85.6

As of December 31, 2023 ¥79,964 million

2. Dividends
1Q endDividends Per Share
3Q end2Q end
(¥)

(¥)

30.00
－FY 2023－
FY 2024
30.00
FY 2024(projected)(Note) Changes to the latest dividend forecast announced: NoneYear-end(¥)

Full Year
(¥)

(¥)

－

30.00

60.00

－

30.00

60.00

3. Consolidated Outlook for the Fiscal Year Ending December 31, 2024（From January 1, 2024 to December 31, 2024)(Percentages represent changes over the corresponding period of the previous fiscal year)

Net Sales

Operating Income

Ordinary Income

Net Income
Attributable toOwners of ParentNetIncome
Per Share(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥)

Interim term

27,440(36.1)

1,900(74.3)

2,000(73.7)

1,300(75.2)

36.06

Full Year

65,800(15.9)

7,000(32.4)

7,200(34.3)

5,100(37.6)

146.96(Note) Changes to the latest consolidated results forecast announced: None

*Note(1) Significant changes in subsidiaries during the period under review (changes in certain specified subsidiaries
resulting in revised scope of consolidation): None
New company: － (Company name), Excluded company: － (Company name)(2) Adoption of special accounting treatment used in preparation of the quarterly consolidated financial statements:None(3) Changes in accounting policies, estimates and restatement or corrections(i) Changes associated with revised accounting standards: None(ii) Changes other than those in (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatement: None
(4) Number of shares issued and outstanding (Common stock)(i) Number of shares issued and outstanding at period-end (Including treasury stock)
As of March 31, 2024
41,373,034 shares As of December 31, 2023
41,921,434 shares(ii) Number of treasury stock at period-end
As of March 31, 2024
4,664,674 shares As of December 31, 2023
5,215,874 shares(iii) Average number of outstanding shares (During the three months)
As of March 31, 2024
36,708,440 shares As of March 31, 2023
37,698,930 shares* This quarterly earnings report is not subject to quarterly reviews.
* Regarding the appropriate use of earnings projections and other noteworthy matters
1. The above projections are based on information available at the time of release of this report and certain assumptions
the Company considers reasonable. The Company does not promise that these projections will be achieved. Actual
results may differ materially from projections due to a variety of factors. For information regarding the assumptions andother matters related to earnings projections in this report, refer to "(3) Explanation of the Consolidated Earnings
Projections and Other Forecasts" under "1. Qualitative Information regarding Quarterly Consolidated Business
Performance" on page 2.
2. The Company resolved to acquire treasury stock at its Board of Directors meeting held on May 14, 2024. The effectof this acquisition has been taken into account in the earnings per share projection for fiscal 2024. For details, pleaserefer to the Notice Regarding Repurchase and Retirement of Own Shares released separately today (May 14, 2024).

○ (Attached Documents) Index
1. Qualitative Information regarding Quarterly Consolidated Business Performance ....................................

2(1) Explanation of Consolidated Operating Results ..........................................................................................

2(2) Explanation of Financial Position ..................................................................................................................

2(3) Explanation of the Consolidated Earnings Projections and Other Forecasts ............................................

2

2. Quarterly Consolidated Financial Statements and Major Notes ....................................................................

3(1) Quarterly Consolidated Balance Sheet ..........................................................................................................

3(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

5(3) Notes to Quarterly Consolidated Financial Statements ...............................................................................

7(Note on Going Concern Assumption) ............................................................................................................

7(Note on Significant Changes in Shareholders’ Equity Accounts) ................................................................

7(Significant Subsequent Events) ......................................................................................................................

71

1. Qualitative Information regarding Quarterly Consolidated Business Performance(1) Explanation of Consolidated Operating Results
During the first quarter of fiscal 2024, the fiscal year ending December 31, 2024, the global economy as a wholeremained on a moderate recovery trend, with high inflation fueled by the monetary tightening of various central
banks cooling down. There were concerns, however, about a recession in the United States and Europe stemmingfrom persistently high interest rates. This, coupled with slowing investment due to a downturn in the Chinese realestate market and the yen’s depreciation in Japan, yielded continued uncertainty in the economic situation.
In each of the major markets in which the Star Micronics Group operates, overall demand for POS printers remainedweak. In addition, although demand in China for the Group’s mainstay machine tools remained on a gradual
recovery trend continuing from the second half of the previous fiscal year, sales in other markets remained weak.
Under these circumstances, the weak yen affected overall sales for the Star Micronics Group in the first quarter ofthe fiscal year under review. Due mainly to a significant decline in sales of machine tools, the Group recorded salesof ¥13,920 million, down 34.1% compared with the corresponding period of the previous fiscal year. On the profit
front, operating income was down 81.1% to ¥775 million, ordinary income was down 76.9% to ¥999 million, andnet income attributable to owners of parent was down 80.3% to ¥626 million.
Performance by segment was as follows:(Special Products)
Although the yen’s depreciation contributed to overall performance of POS printers in the period under review, sales
were down significantly, due mainly to sluggish mPOS demand. Looking at trends by geographic region, sales in theU.S. market were down substantially due to sluggish mPOS demand while sales in the European market also
declined in line with lower demand. On the other hand, in the Japan market, despite steady market conditions, sales
increased significantly mainly reflecting contributions from Smart Solution Technology, Inc., which was newly
consolidated in the second quarter of fiscal 2023.
On account of these factors, there was a substantial decrease in segment sales and profits. Sales were down 30.6%
compared with the corresponding period of the previous fiscal year, to ¥3,346 million. Operating income was down
83.1% to ¥207 million.
(Machine Tools)
Although the weak yen contributed to overall performance of CNC automatic lathes, sales were down significantly,
owing to sluggishness in the U.S. and European markets among other factors. By region, ongoing soft market
conditions in the U.S. amid prolonged interest rate hikes there and ongoing weakness in overall demand in theEuropean market were behind the substantial decrease in sales. Meanwhile, in the Asian market, China in particular
saw a gradual turnaround in market conditions, fueling higher sales. In Japan, sales were down significantly amid
lackluster performance as a whole, particularly in the automotive sector.
On account of these factors, there was a substantial decrease in segment sales and profits. Sales were down 35.1%
compared with the corresponding period of the previous fiscal year, to ¥10,573 million. Operating income was down
68.0% to ¥1,090 million.
(2) Explanation of Financial Position
The yen’s depreciation contributed to the Company’s overall financial position in the first quarter of the fiscal year
under review. Total assets as of the end of the quarter stood at ¥95,542 million, an increase of ¥2,143 million
compared with the end of the previous fiscal year. Although trade notes and accounts receivable decreased, cash anddeposits and inventories increased. Total liabilities stood at ¥13,789 million, an increase of ¥737 million comparedwith the previous fiscal year-end, chiefly reflecting an increase in trade notes and accounts payable. Despite thepayout of dividends, total net assets increased by ¥1,406 million compared with the end of the previous fiscal year,to ¥81,752 million, due in part to an increase in foreign currency translation adjustments.
(3) Explanation of the Consolidated Earnings Projections and Other Forecasts
Earnings projections remain unchanged from the projections announced on February 9, 2024.

22. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: Thousands of yen)
列1

As of December 31, 2023

AssetsCurrent assets
Cash and deposits
Trade notes and accounts receivable
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, netTools, furniture and fixtures, net
Land
Lease assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit asset
Other
Total investments and other assets
Total non-current assets
Total assets

3

As of March 31, 2024

29,721,934
18,594,767
14,542,598
4,276,374
2,943,701
3,475,268(197,701)
73,356,942

30,608,986
18,389,794
15,139,843
4,101,849
3,181,712
3,881,304(136,537)
75,166,953

7,261,093
3,343,966
1,354,520
2,488,800
60,672
144,0021,249,890
15,902,946

7,177,744
3,425,294
1,291,588
2,494,524
76,601
288,808
1,252,213
16,006,774

793,994
793,994

939,021939,021662,038
497,702
1,655,209
529,711
3,344,661
20,041,602
93,398,545

700,549
516,927
1,694,705
517,6123,429,795
20,375,590
95,542,544

(Unit: Thousands of yen)
列1

As of December 31, 2023

Liabilities
Current liabilities
Trade notes and accounts payable
Electronically recorded obligations-operating
Current portion of long-term bank loans
Lease obligations
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for directors' bonuses
Other
Total current liabilities
Non-current liabilities
Long-term bank loans
Lease obligations
Net defined benefit liability
OtherTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Stock acquisition rights
Noncontrolling interests
Total net assets
Total liabilities and net assets

4

As of March 31, 20243,345,274
326,753
28,404
29,637
313,660
331,598
896,288－
6,136,430
11,408,047

4,537,939
301,670
22,164
31,145
508,767
401,520514,353
6,000
5,776,593
12,100,154

8,315
37,827
116,575
1,481,359
1,644,076
13,052,124

3,314
53,857
119,429
1,512,843
1,689,445
13,789,600

12,721,939
10,948,546
55,401,296(7,637,848)
71,433,933

12,721,939
10,145,215
54,926,447(6,830,945)
70,962,656

167,186
7,058,883
1,304,441
8,530,511
274,809107,166
80,346,421
93,398,545

205,058
8,938,605
1,265,765
10,409,429
280,863
99,99581,752,944
95,542,544

(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(First three-month period)(Unit: Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Foreign exchange gain
Rent income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Miscellaneous loss
Total non-operating expenses
Ordinary incomeExtraordinary income
Gain on sales of non-current assets
Gain on revision of retirement benefit plan
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income(loss) attributable to noncontrolling interests
Net income attributable to owners of the parent

5First three-month period
from January 1, 2023 toMarch 31, 2023, of FY2023

First three-month period
from January 1, 2024 toMarch 31, 2024, of FY2024

21,116,786
12,016,795
9,099,991
4,993,363
4,106,627

13,920,077
8,559,623
5,360,453
4,585,061
775,392

72,06983,085
10,43462,212
227,80284,764
123,020
10,386
14,732
232,904

7,379
2,164
9,544
4,324,885

7,399
1,332
8,732
999,564

5,972
203,002
208,975

2,994
－
2,994

1,054
1,054
4,532,806
1,479,652(122,926)
1,356,726
3,176,079
1,368
3,174,711

1,756
1,756
1,000,801
445,407(56,293)389,114611,687(14,630)
626,317(Quarterly Consolidated Statement of Comprehensive Income)(First three-month period)(Unit: Thousands of yen)First three-month period
from January 1, 2023 toMarch 31, 2023, of FY2023

First three-month period
from January 1, 2024 toMarch 31, 2024, of FY2024

3,176,079

611,687

42,797
631,800(82,937)(22,815)
568,8443,744,924

37,872
1,902,383(38,675)(15,203)1,886,376
2,498,064

3,743,014
1,909

2,505,235(7,171)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
Total other comprehensive income
Comprehensive income(Total comprehensive income attributable to:)Owners of parent
Noncontrolling interests6(3) Notes to Quarterly Consolidated Financial Statements(Note on Going Concern Assumption)
Not applicable(Note on Significant Changes in Shareholders’ Equity Accounts)
Pursuant to a resolution of the Board of Directors held on November 20, 2023, the Company retired 548,400 sharesof treasury stock on January 31, 2024. As a result, both capital surplus and treasury stock decreased by ¥802,857
thousand in the first quarter of the fiscal year under review, leaving capital surplus at ¥10,145,215 thousand andtreasury stock at ¥6,830,945 thousand at the end of the quarter.
(Significant Subsequent Events)
STAR MICRONICS CO., LTD. ("the Company") resolved, at its Board of Directors' meeting held on May 14, 2024,
to repurchase its own shares, pursuant to the provision of the Company's Articles of Incorporation in accordance withthe provision of Article 459, Paragraph 1 of the Companies Act.
Brief details are presented as follows.
1.

Reason for RepurchaseIn the Medium-Term Management Plan announced on February 9, 2022, we set out a roadmap to achieve theGroup’s Vision for 2030. In line with this roadmap, we are steadily implementing initiatives in the first MediumTerm Management Plan covering the three years from FY12/2022 to FY12/2024, which has been positioned as aperiod for “building a foundation for change.”
Against this backdrop, we reviewed the Group’s capital adequacy and capital structure, taking into account thecyclical nature of the Group’s earnings and future planned investments in growth, in line with our Action toImplement Management that is Conscious of Cost of Capital and Stock Price, announced on February 9, 2024. Asa result, we have decided to conduct a share buyback to implement a flexible capital policy, improve capitalefficiency, and enhance shareholder returns, while also maintaining the necessary financial base to implement ourgrowth strategy.

2.

Matters regarding Repurchase(1) Class of Shares to be Repurchased
Common stock of the Company(2) Total Number of Shares which may be Repurchased
Up to 6,000,000 shares(16.33% of the total issued shares (excluding treasury stock))(3) Total Repurchase Price of Shares
Up to ¥10 billion(4) Repurchase Period
From May 15, 2024 to May 14, 2025
(5) Repurchase Method
Market purchase at the Tokyo Stock Exchange(including through an off-auction own share repurchasetransaction (ToSTNeT-3) )16