Financial Results: Mar 31, 2023

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

[Japanese GAAP]

May 12, 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: Sadao Ito, Director, Senior Managing Executive Officer

Phone: [phone]

Scheduled date of Annual General Meeting of Shareholders: June 27, 2023

Scheduled date of filing annual securities report: June 28, 2023

Scheduled date of commencing dividend payments: June 28, 2023

Availability of supplementary briefing material on annual financial results: Available

Holding of annual financial results briefing session: Yes (For Institutional Investors and Analysts)

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

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
				Net sales			Operating profit		Ordinary profit	Net profit attributable
							to parent company
														shareholders
	Fiscal year ended		Million yen	%	Million yen	%		Million yen	%	Million yen	%
	March 31, 2023		59,028	14.1	7,475	36.0		7,643	36.4	5,524	54.6
	March 31, 2022		51,736	6.8	5,496	24.8		5,604	22.8	3,573	7.0
	Note: Comprehensive	income Fiscal year ended March 31, 2023: ¥6,335 million [41.0%]
				Fiscal year ended March 31, 2022: ¥4,493 million [5.3%]
				Basic earnings		Diluted earnings	Rate of return on	Ordinary profit to	Operating profit
				per share		per share	equity			total assets		to net sales
	Fiscal year ended		Yen			Yen			%			%		%
	March 31, 2023		201.33			201.14			19.5		11.9		12.7
	March 31, 2022		172.92			172.66			15.9			9.9		10.6
	Reference: Investment	gains (losses) on	equity method	Fiscal year ended March 31, 2023: - million
								Fiscal year ended March 31, 2022: - million
(2) Consolidated Financial Position
				Total assets	Net assets	Equity ratio	Net assets per share
					Million yen	Million yen			%			Yen
	As of March 31, 2023		69,418	32,574			46.8	1,183.98
	As of March 31, 2022		59,239	27,041			40.8	1,167.95

Reference: Equity As of March 31, 2023: ¥32,502 million

As of March 31, 2022: ¥24,155 million

(3) Consolidated Cash Flows

			Cash flows from		Cash flows from		Cash flows from		Cash and cash
						equivalents at end of
			operating activities		investing activities		financing activities
						period
	Fiscal year ended			Million yen		Million yen				Million yen			Million yen
	March 31, 2023			4,096			(1,364)			452		14,315
	March 31, 2022			1,782			(2,395)			(741)		11,012
2. Dividends
					Annual dividends					Total	Payout ratio		Dividends to
												dividends		net assets
			1st		2nd	3rd	Year-end	Total
					(consolidated)
		quarter-end	quarter-end	quarter-end		(sum)				(consolidated)
	Fiscal year ended		Yen	Yen	Yen	Yen	Yen	Million yen		%	%
	March 31, 2022		-	10.00	-	15.00	25.00	524		14.5	2.3
	March 31, 2023		-	15.00	-	20.00	35.00	970		17.4	3.0
	Fiscal year ending
	March 31, 2024		-	15.00	-	20.00	35.00				18.8
	(forecast)

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 profit
	Net sales		Operating profit	Ordinary profit	attributable to	Basic earnings
		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

* Notes:

1. Changes in significant subsidiaries during the period under review: Yes
   (Changes in specified subsidiaries accompanying changes to the scope of consolidation) New: - companies (Company name); Excluded: One (1) company (Litra Co., LTD.)
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 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 "3. Consolidated Financial Statements and Primary Notes, (5) Notes to Consolidated Financial Statements, (Changes in accounting policies)" on page 14 of the Appendix.

1. Total number of issued shares (common stock)
   1) Total number of issued shares at the end of the period (including treasury stock):

March 31, 2023: 27,845,208 shares

March 31, 2022: 22,601,400 shares

1. Total number of treasury stock at the end of the period: March 31, 2023: 393,687 shares
   March 31, 2022: 1,919,070 shares

3) Average number of shares during the period:

Fiscal year ended March 31, 2023: 27,441,265 shares

Fiscal year ended March 31, 2022: 20,668,842 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 audit 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. For matters regarding financial results forecasts, please refer to "1. Overview of Business Results, etc., (4) Future Outlook" on page 4 of the Appendix.

Table of Contents
1. Overview of Business Results, etc. ................................................................................................................ 2
(1)	Overview of Business Results for the Period Under Review	2
(2)	Overview of Financial Position for the Period Under Review	3
(3)	Overview of Cash Flows for the Period Under Review	3
(4)	Future Outlook	4
2. Basic Stance Concerning Choice of Accounting Standards	5
3. Consolidated Financial Statements and Primary Notes	6
(1)	Consolidated Balance Sheets	6
(2)	Consolidated Statements of Income and Comprehensive Income	8
(3)	Consolidated Statements of Changes in Net Assets	10
(4)	Consolidated Statements of Cash Flows	12
(5)	Notes to Consolidated Financial Statements	14
	(Notes on going concern assumption)	14
	(Changes in accounting policies)	14
	(Additional information)	14
	(Segment information, etc.)	15
	(Business combinations)	19
	(Per share information)	24
	(Significant subsequent events)	25
4. Others	25
Changes in Officers and Directors	25

1

1. Overview of Business Results, etc.

(1) Overview of Business Results for the Period Under Review

During the fiscal year ended March 31, 2023, the outlook for the Japanese and overseas economies remained uncertain due to such factors as high raw material prices and continued energy price hikes due to the prolonged situation in Ukraine, concerns about economic recession due to tight monetary policies taken by countries to curb rising prices, and significant fluctuations in exchange rates, although various restrictions on activities as a measure to prevent the spread of COVID-19 were gradually eased and economic activities began to normalize.

Amid such circumstances, A&D HOLON Holdings Company, Limited (the "Company"), and its subsidiaries (collectively, the "Group") started a new group formation on April 1, 2022, and have set up several subcommittees and worked on activities to maximize the creation of the reorganization effects. In addition, we have sought to differentiate ourselves from our competitors through ongoing, active investment in research and development to respond to the diverse and changing needs of clients and society.

In terms of an overview by business segment, the Measuring and Weighing Equipment Business remained steady against the backdrop of the recovery of the global economy. The Medical and Healthcare Equipment Business maintained sales at the same level year-on-year on a local currency basis, mainly in the Americas, although there were signs of a decline in consumer purchasing appetite due to concerns about global inflation, especially in the U.S. In addition, yen-translated net sales increased in both the Americas and Europe due to the impact of the weaker yen. The Semiconductor-related Business, which was separated from the Measuring and Weighing Equipment Business as part of the group reorganization, continued to post increases in both sales and profit, bolstered by robust orders since the previous fiscal year. An increase in the cost of sales associated with the elimination of unrealized gains on inventories that occurred in the six months ended September 30, 2022 was eased by the depreciation of the yen reaching its peak. The Group has been working continuously to minimize the impact of foreign exchange by optimizing inventory levels.

As a result, net sales for the fiscal year ended March 31, 2023, were ¥59,028 million (up 14.1% year-on-year), operating profit was ¥7,475 million (up 36.0% year-on-year), ordinary profit was ¥7,643 million (up 36.4% year- on-year), and net profit attributable to parent company shareholders was ¥5,524 million (up 54.6% year-on-year).

Business results by segment are as follows.

From the first quarter of the fiscal year ended March 31, 2023, the reportable segments have been changed, and comparisons and analyses shown for the fiscal year ended March 31, 2023, are based on the reclassified reportable segments.

1) Measuring and Weighing Equipment Business

In Japan, while sales of measurement, control and simulation systems (DSP systems) remained steady, the business saw little growth in sales of testing equipment and weighing equipment due to a shortage of parts and materials for certain products, preventing the achievement of planned production. However, profits increased through efforts to reduce costs and improve production efficiency.

In the Americas, sales grew due to special demand for general-purpose balances in addition to the continued popularity of mainstay weighing equipment. Additionally, both sales and profit significantly increased, driven by the progress in the production of DSP systems for which we received orders in the previous fiscal year.

In Asia and Oceania, both sales and profit increased, driven by the growth in sales of weighing equipment in Australia and South Korea and metal detectors and checkweighers in India.

As a result, net sales in the Measuring and Weighing Equipment Business were ¥27,600 million (up 9.9% year-on-year) and operating profit was ¥2,539 million (up 33.3% year-on-year).

2) Semiconductor-related Business

The Semiconductor-related Business, which was separated from the Measuring and Weighing Equipment

2