Financial Results: Jun 30, 2023

Consolidated Financial Results

for the Three Months Ended June 30, 2023

[Japanese GAAP]

August 4, 2023

Company name: A&D HOLON Holdings Company, Limited

Stock exchange listing: Tokyo Stock Exchange

Code number: 7745

URL: https://andholon.com/en

Representative: Yasunobu Morishima, President & CEO

Contact: Koji Takahashi, Director and Senior Executive Officer

Phone: [phone]

Scheduled date of filing quarterly securities report: August 10, 2023

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Available

Holding of quarterly financial results briefing session: No

(Amounts of less than one million yen are truncated.)

1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 2023)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
							Net profit
	Net sales		Operating profit		Ordinary profit		attributable to
				parent company
							shareholders
Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
June 30, 2023	13,387	11.7	1,099	-	1,326	-	836	-
June 30, 2022	11,981	3.8	(219)	-	(1)	-	(159)	-

Note: Comprehensive income

Three months ended June 30, 2023: ¥1,308 million [(69.9)%]

Three months ended June 30, 2022: ¥4,354 million [419.6%]

Basic earnings

Diluted earnings

per share

per share

Three months ended

Yen

Yen

June 30, 2023

30.47

30.44

June 30, 2022

(5.83)

-

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Million yen

Million yen

%

As of June 30, 2023

68,908

33,319

48.2

As of March 31, 2023

69,418

32,574

46.8

Reference: Equity As of June 30, 2023: ¥33,238 million

As of March 31, 2023: ¥32,502 million

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Fiscal year ended March 31, 2023

Yen

Yen

Yen

Yen

Yen

-

15.00

-

20.00

35.00

Fiscal year ending March 31, 2024

-

Fiscal year ending March 31, 2024

15.00

-

20.00

35.00

(Forecast)

Note: Revision to the forecast for dividends announced

most recently:

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(% indicates changes from the previous corresponding period, or corresponding quarter of previous year.)

	Net sales		Operating profit	Ordinary profit	Net profit attributable	Basic earnings
		to parent company	per share
							shareholders
2nd quarter	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
28,370	4.4	3,100	69.7	2,915	30.6	1,995	36.1	72.67
(cumulative)
Full period	62,000	5.0	7,800	4.3	7,450	(2.5)	5,110	(7.5)	186.15

Note: Revision to the financial results forecast announced most recently: No

* Notes:

1. Changes in significant subsidiaries during the period under review: No
   (Changes in specified subsidiaries accompanying changes to the scope of consolidation) New: - companies (Company name) - ; Excluded: - companies (Company name) -
2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No

Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Primary Notes, (3) Notes to Quarterly Consolidated Financial Statements, (Changes in accounting policies)" on page 8 of the Appendix.

1. Total number of issued shares (common stock)
2. 1. Total number of issued shares at the end of the period (including treasury stock): June 30, 2023: 27,845,208 shares
      March 31, 2023: 27,845,208 shares
   2. Total number of treasury stock at the end of the period:

June 30, 2023: 395,047 shares

March 31, 2023: 393,687 shares

3) Average number of shares during the period:

Three months ended June 30, 2023: 27,451,414 shares

Three months ended June 30, 2022: 27,425,731 shares

Note: The total number of treasury stock at the end of the period and the total number of treasury stock which has been eliminated when calculating the average number of shares during the period include the Company's shares held by Custody Bank of Japan, Ltd. (Trust E Account) as trust properties of the stock benefit trust system.

• These consolidated financial results are outside the scope of quarterly review by certified public accountants or audit corporations.
• Explanation of the proper use of financial results forecasts and other notes
  Forward-looking statements in this document, including financial results forecasts, are based on information available and certain assumptions deemed reasonable by the Company at present, and the Company does not guarantee their achievement. Actual business results, etc., may differ significantly due to various factors.

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period	2
(1)	Business Results	2
(2)	Financial Position	3
(3)	Consolidated Financial Results Forecast and Other Forward-looking Information	3
2. Quarterly Consolidated Financial Statements and Primary Notes	4
(1)	Quarterly Consolidated Balance Sheets	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
	Quarterly Consolidated Statements of Income
	Three Months Ended June 30	6
	Quarterly Consolidated Statements of Comprehensive Income
	Three Months Ended June 30	7
(3)	Notes to Quarterly Consolidated Financial Statements	8
	(Notes on going concern assumption)	8
	(Notes in the case of significant changes in shareholders' equity)	8
	(Changes in accounting policies)	8
	(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements) ...	8
	(Segment information, etc.)	9

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1. Qualitative Information on Quarterly Financial Results for the Period

(1) Business Results

During the three months ended June 30, 2023, the Japanese economy showed signs of gradual recovery with the progressing normalization of social and economic activities following the easing of various restrictions due to a change in the legal status of COVID-19. However, the future outlook remains uncertain due to the prolonged situation in Ukraine, the high prices of raw materials, the global progress of inflation, and the impact of exchange rate fluctuations.

Amid such circumstances, A&D HOLON Holdings Company, Limited (the "Company"), and its subsidiaries (collectively, the "Group"), under a medium-term management plan for fiscal 2022 to 2024, have been implementing measures to strengthen each business unit's initiatives to respond flexibly to changes in the external environment and to enhance group synergies during the three months under review. Particularly in the Semiconductor-related Business, which is positioned as a growth driver, despite the semiconductor market itself showing some weakness, demand for the Company's products remained robust, resulting in a significant year- on-year increase in both sales and profit. Furthermore, a continuous focus on thorough manufacturing and shipping management as well as the optimization of inventory levels enabled significant improvement in profits compared to the same period last year.

As a result, net sales for the three months ended June 30, 2023, were ¥13,387 million (up 11.7% year-on-year), operating profit was ¥1,099 million (operating loss of ¥219 million for the same period of the previous year), ordinary profit was ¥1,326 million (ordinary loss of ¥1 million for the same period of the previous year), and net profit attributable to parent company shareholders was ¥836 million (net loss attributable to parent company shareholders of ¥159 million for the same period of the previous year).

Business results by segment are as follows.

1) Semiconductor-related Business

Thanks to robust orders since the previous fiscal year and the Group's united efforts in manufacturing and shipping, sales increased significantly. In addition to existing efforts to boost profitability, improvements in productivity led to a substantial increase in profit.

As a result, net sales in the Semiconductor-related Business were ¥2,709 million (up 128.3% year-on-year) and operating profit was ¥941 million (up 192.1% year-on-year).

2) Medical and Healthcare Equipment Business

In Japan, demand slowed for home-use blood pressure monitors for large customers, which was strong in the previous fiscal year, as well as for blood pressure monitors for nursing care in hospitals. Due to this and other factors, both sales and profit decreased.

In the Americas, sales increased, mainly for large projects, with strong demand for home-use blood pressure monitors in the U.S. Profit also increased due to reductions in transportation costs and with a good product mix.

In Europe, the demand for blood pressure monitors showed a recovery trend, and both sales and profit were at the same level as the previous year.

As a result, net sales in the Medical and Healthcare Equipment Business were ¥5,054 million (down 1.7% year-on-year) and operating profit was ¥800 million (up 0.9% year-on-year).

3) Measuring and Weighing Equipment Business

In Japan, while sales increased due to a rise in demand for measuring equipment with the recovery of industrial capital investment, the significant impact of a surge in raw material prices on the production side caused a substantial decrease in profit.

In the Americas, a reactionary decline from the special demand for mainstay weighing equipment in the previous fiscal year had a significant impact, leading to a decrease in both sales and profit.

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In Asia and Oceania, while there were variations in demand by country, overall sales remained at the same level as the previous year. However, profit decreased due to the product mix.

As a result, net sales in the Measuring and Weighing Equipment Business were ¥5,623 million (down 0.5% year-on-year) and operating loss was ¥55 million (operating profit of ¥272 million for the same period of the previous year).

(2) Financial Position

(Assets, liabilities and net assets)

Total assets as of June 30, 2023, were ¥68,908 million, a decrease of ¥509 million compared to the end of the previous fiscal year. This was mainly due to a decrease in current assets of ¥359 million, resulting from factors such as progress in collecting accounts receivable, as well as a decrease in fixed assets of ¥149 million due to a reduction of deferred tax assets and other factors.

Total liabilities as of June 30, 2023, were ¥35,589 million, a decrease of ¥1,254 million compared to the end of the previous fiscal year. This was primarily due to a decrease of ¥1,056 million in current liabilities owing to such factors as a reduction in accrued corporate taxes, etc., and provision for bonuses while short-term borrowings increased.

Net assets as of June 30, 2023, were ¥33,319 million, an increase of ¥744 million compared to the end of the previous fiscal year. This was driven by an increase of ¥456 million in accumulated other comprehensive income, which is due to an increase in foreign currency translation adjustments, as well as an increase of ¥279 million in shareholders' equity due to an increase in retained earnings.

(3) Consolidated Financial Results Forecast and Other Forward-looking Information

There are no changes from the consolidated financial results forecast announced on May 12, 2023.

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