Chori : FY03/2024 Financial Results Briefing

FY03/2024

(April 1, 2023 to March 31, 2024)

Financial Results

Briefing

May 10, 2024

Contents

１ FY03/2024 Financial Results Summary

P.2

２ Progress on Medium-Term Management Plan

P.15

３ Appendix

P.36

CHORI CO., LTD.

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FY03/2024 Financial Results Summary

CHORI CO., LTD.

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① FY03/2024 Financial Results Summary

Key Points of the Summary

POINT The first year of the Medium-Term Management Plan

"Chori Innovation Plan 2025"

• Profit at each stage exceeded our plan.
• Posted ordinary profit of ¥14.5 billion, net profit before income taxes of ¥14.7 billion, and net profit attributable to owners of parent of ¥9.6 billion, which were all record highs for a third straight year.

Business	⚫ Despite a year-on-year decline in sales, profit increased mainly due to improved
profitability.
results
⚫ The Fibers, Textiles and Garments business profit grew substantially. The Chemicals
summary
business also performed well.
	⚫ Equity ratio	57.2% Maintained at a high level.
Financial	⚫ ROE (net profit*1 basis)	12.5%
base	⚫ ROIC*2	12.4%
	*1: Net profit attributable to owners of parent
	*2: ROIC = Operating profit after income taxes / shareholders' equity (Equity + Interest-bearing debt) average during the period

Dividends

• Year-enddividend increased from the dividend forecast announced on April 28, 2023.

Year-end dividend ¥60 per share (Dividend increase of ¥2 per share) Annual dividend ¥118 per share Consolidated dividend payout ratio: 30.2% Dividend on equity ratio (DOE): 4.1%

Topics

• The company-wide business transformation project (mission critical system (SAP) implementation project, called CARAT) is progressing with system development as planned towards full-scale operation from FY2025.
• The Sustainability Promotion Committee was established on April 1, 2024.
  On April 26, we announced our materiality (key issues) and basic sustainability policy, etc.

CHORI CO., LTD.		3

① FY03/2024 Financial Results Summary

Business Results Breakdown (YoY Comparison)

	POINT	⚫ The Japanese economy is on a gradual recovery trend due to the rebound of the manufacturing
		industry and other factors. The outlook for the global economy is increasingly uncertain due to
		geopolitical risks such as Russia's invasion of Ukraine and conflict in the Middle East, as well as
		prolonged real estate recession in China, and other factors.
		⚫ Net sales decreased mainly due to lower sales in the Chemicals business outside Japan, but
		profit at each stage increased. The Fibers, Textiles and Garments business grew substantially,
		driven by expansion of fiber raw materials and domestic apparel-related products as well as
		improved profitability.

Unit: billions of yen	FY03/2023	FY03/2024	Difference	Ratio
Net sales	329.4	307.7	-21.7	-6.6%
Gross profit	37.1	38.7	+1.7	+4.5%
Selling, general and administrative expenses	24.4	23.7	-0.7	-2.9%
Operating profit	12.7	15.0	+2.4	+18.8%
Ordinary profit	12.4	14.5	+2.0	+16.4%
Net profit before income taxes	12.8	14.7	+1.9	+14.9%
Net profit attributable to owners of parent	8.1	9.6	+1.5	+18.5%

CHORI CO., LTD.

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① FY03/2024 Financial Results Summary

Reasons for Changes in Net Profit before Income Taxes

Unit: billions of yen	+4.0	+0.7	-0.4	-0.2	+0.3
-2.5		SG&A	Share of	Gain on	Non-
		decrease	profit (loss)	sale of	operating
			of entities	investment	profit (loss),
Effect of	Increased		accounted	securities Extraordinary
	for using		profit (loss),
decreased	profit ratio
	equity		etc.
sales
		method		14.7
12.8
FY03/2023					FY03/2024
Trends in Business Performance
		FY03/2023		FY03/2024

		1Q	2Q	3Q	4Q	Full-year	1Q	2Q	3Q	4Q	Full-year
		total	total
Net sales	81.9	86.6	86.9	74.0	329.4	75.8	77.1	80.5	74.3	307.7
Net profit (loss) before income taxes	3.7	4.1	3.6	1.4	12.8	3.6	4.2	4.2	2.7	14.7
	Fibers, Textiles and Garments	0.8	1.2	1.7	1.4	5.1	1.9	2.4	2.1	1.6	8.0
	Chemicals	2.5	2.8	2.2	1.6	9.1	2.1	2.1	1.9	1.5	7.6
	Machinery	-0.0	0.3	-0.2	-1.4	-1.3	-0.5	-0.3	0.4	-0.2	-0.6
	Others*	0.4	-0.2	-0.1	-0.2	-0.2	0.0	-0.0	-0.3	-0.1	-0.4
Net profit attributable to owners of parent	2.3	2.5	2.8	0.6	8.1	2.2	2.8	3.0	1.6	9.6
*"Others" includes adjustments.												5
										CHORI CO., LTD.

① FY03/2024 Financial Results Summary

Fibers, Textiles and Garments Business

POINT

⚫ Overall sales were strong, mainly due to fiber raw materials and domestic apparel-related whose recovery demand was captured

accurately in the market, particularly in men's wear.

• Profit increased significantly due to improved profitability.

Unit: billions of yen	FY03/2023	FY03/2024	Difference	Ratio
Net sales	144.8	145.9	+1.0	+0.7%
Net profit before income taxes	5.1	8.0	+2.9	+57.5%
(Segment profit)

Strong

Expansion

Overall

Fiber raw materials, domestic apparel-related

CHORI CO., LTD.

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① FY03/2024 Financial Results Summary

Chemicals Business

POINT

⚫ Sales and profits decreased due to overall decrease in demand and poor market conditions.

• Strong performance in the fine chemicals and life science segments.

Unit: billions of yen	FY03/2023	FY03/2024	Difference	Ratio
Net sales	180.0	160.0	-20.0	-11.1%
Net profit before income taxes	9.1	7.6	-1.5	-16.3%
(Segment profit)

Sluggish

Steady

Overall decrease in demand and poor market conditions

Fine chemicals, life science

CHORI CO., LTD.

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① FY03/2024 Financial Results Summary

Machinery Business

POINT

⚫ Sales decreased mainly due to business selection and concentration.

• Posted segment loss of ¥0.6 billion due to foreign exchange loss resulting from foreign exchange rate fluctuation, but the loss was less than the previous fiscal year.

Unit: billions of yen	FY03/2023	FY03/2024	Difference	Ratio
Net sales	4.4	1.7	-2.7	-61.2%
Net profit (loss) before income taxes	-1.3	-0.6	+0.6	ー
(Segment profit (loss))

Loss Foreign exchange loss

CHORI CO., LTD.

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① FY03/2024 Financial Results Summary

Net Sales by Operation

	POINT	⚫ Decreased sales across all operations. Overseas sales decreased primarily in
		the China business and the Chemicals business.
		⚫ Trade ratio: 67.1% 1.9pt decrease YoY

Unit: billions of yen

			102.2	-1.0
				101.2
	Domestic	98.8	-5.6	93.2
	Import
	Export	39.5	-1.9	37.6
	Overseas	88.9	-13.2	75.7
			FY03/2023		FY03/2024

Diff.

Domestic	Amount of domestic sales
sales	from domestic suppliers

Overseas transactions

Import	Amount of net sales from
sales	overseas to Japan
Export	Amount of net sales from Japan
sales	to overseas
Overseas	Amount of net sales from
sales	overseas business

CHORI CO., LTD.

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