ALCONIX : Summary of Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2023 (Three Months Ended June 30, 2022)

August 5, 2022

Summary of Consolidated Financial Results for the First Quarter

of Fiscal Year Ending March 31, 2023

(Three Months Ended June 30, 2022)

[Japanese GAAP]

Company name: ALCONIX CORPORATION

Listing: Tokyo Stock Exchange

Stock code:

3036

URL: https://www.alconix.com

Representative:

Hiroshi Teshirogi, President, Executive Officer and COO

Contact:

Takumi Suzuki, Director & Senior Managing Executive Officer and CSO, Corporate Div.

Tel: [phone]

Scheduled date of filing of Quarterly Report:

August 10, 2022

Scheduled date of payment of dividend:

-

Preparation of supplementary materials for quarterly financial results: Yes

Holding of quarterly financial results meeting:

None

Note: The original disclosure in Japanese was released on August 5, 2022 at 12:30 (GMT +9).

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter Ended June 30, 2022

(April 1, 2022 - June 30, 2022)

(1) Consolidated results of operations

(Percentages represent year-on-year changes)

Net sales

Operating profit

Ordinary profit

Profit attributable to

shareholders of

parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Three months ended Jun. 30, 2022

46,837

26.8

3,931

29.0

4,251

21.9

2,718

11.6

Three months ended Jun. 30, 2021

36,944

-

3,046

-

3,487

-

2,435

-

Note: Comprehensive income (million yen)

Three months ended Jun. 30, 2022:

3,811

(up 7.1%)

Three months ended Jun. 30, 2021:

3,559

(-%)

Net income per share

Diluted net income per share

Yen

Yen

Three months ended Jun. 30, 2022

90.41

-

Three months ended Jun. 30, 2021

97.26

97.23

Note: Diluted net income per share

for the three months ended Jun. 30, 2022 is not stated because dilutive shares do not exist.

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Million yen

Million yen

%

As of Jun. 30, 2022

189,723

60,299

31.5

As of Mar. 31, 2022

176,437

57,331

32.2

Reference: Shareholders' equity (million yen)

As of Jun. 30, 2022:

59,709

As of Mar. 31, 2022:

56,817

2. Dividends

Dividend per share

1Q-end

2Q-end

3Q-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Mar. 31, 2022

-

24.00

-

28.00

52.00

Fiscal year ending Mar. 31, 2023

-

Fiscal year ending Mar. 31, 2023

26.00

-

26.00

52.00

(forecast)

Note: Revisions to the most recently

announced dividend forecast: None

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(Percentages represent year-on-year changes)

							Profit attributable to	Net income per
	Net sales		Operating profit	Ordinary profit	shareholders of
		share
							parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	170,000	8.7	9,100	(17.4)	9,000	(18.3)	6,800	(9.4)	226.14

Note: 1. Revisions to the most recently announced consolidated earnings forecasts: None

Regarding consolidated earnings forecasts for the fiscal year ending March 31, 2023, please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements" on page 4 of the attachments for further information.

* Notes

(1) Changes in significant subsidiaries during the period (changes in scope of consolidation): None

Newly added: -

Excluded: -

(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes

Note: Please refer to "2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated Financial Statements (Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements)" on page 10 of the attachments for further information.

1. Changes in accounting policies and accounting-based estimates, and restatements
2. 1. Changes in accounting policies due to revisions in accounting standards, others: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting-based estimates: None
   4. Restatements: None

Note: Please refer to "2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies) on page 10 of the attachments for further information.

(4) Number of outstanding shares (common stock)

1) Number of shares outstanding at the end of period (including treasury shares)

As of Jun. 30, 2022:	30,977,600 shares	As of Mar. 31, 2022:	30,977,000 shares
2) Number of treasury shares at the end of period
As of Jun. 30, 2022:	907,207 shares	As of Mar. 31, 2022:	907,207 shares
3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2022:	30,069,931 shares	Three months ended Jun. 30, 2021:	25,035,893 shares

Note: ALCONIX has a Board Benefit Trust for the distribution of stock to eligible individuals. Shares of ALCONIX stock remaining in this trust are included in treasury shares under shareholders' equity and deducted from the average number of shares outstanding during the period that was used to calculate net income per share for the first quarter of the fiscal year ending March 31, 2023.

• The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
• Explanation of appropriate use of earnings forecasts, and other special items
  Forecasts of future performance in these materials are based on assumptions judged to be valid and information available to ALCONIX's management at the time the materials were prepared. Actual results may differ significantly from these forecasts for a number of reasons. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements" on page 4 of the attachments for assumptions for forecasts and notes of caution for usage.

	ALCONIX CORPORATION (3036) Financial Results for the First Quarter of FY3/23
Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements	4
2. Quarterly Consolidated Financial Statements and Notes	4
(1)	Quarterly Consolidated Balance Sheet	6
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	8
	Quarterly Consolidated Statement of Income
	For the Three-month Period	8
	Quarterly Consolidated Statement of Comprehensive Income
	For the Three-month Period	9
(3)	Notes to Quarterly Consolidated Financial Statements	10
	Going Concern Assumption	10
	Significant Changes in Shareholders' Equity	10
	Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements	10
	Changes in Accounting Policies	10
	Additional Information	10
	Segment Information	10

1

ALCONIX CORPORATION (3036) Financial Results for the First Quarter of FY3/23

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

In the first quarter of the current fiscal year, the economic situation in Japan and overseas remained generally uncertain. On one hand, there was movement towards a normalization of economic activity as measures to slow down the spread of COVID-19 continued. On the other, there was the impact of the lockdown triggered by the renewed upturn in the number of COVID-19 infections in China, the prolongation of the crisis in Ukraine, rising raw material and resource prices, and the rapid depreciation of the yen, among other factors.

In the business sectors in which the ALCONIX Group operates, demand for semiconductors and electronic components across a wide range of applications remained firm throughout the first quarter of the current fiscal year. In the automobile industry, while demand for materials and components continued to grow due to progress in the development of electric vehicles, and vehicle weight reductions, etc., factors including the impact of the lockdown in China and production cuts and production adjustments by customers due to delays in the procurement of semiconductor components and other products resulted in a decrease in demand.

In this economic environment, the ALCONIX Group's transaction volumes of metal processing parts for semiconductor manufacturing equipment, electronic and battery materials for IT products, copper products and aluminum rolled products increased compared to the same period a year earlier due to the steady growth in semiconductor-related demand. On the other hand, handling volumes of metal precision-stamped parts, carbon brushes and non-ferrous materials decreased due to a decline in domestic and overseas automobile-related demand. Higher sales mainly in electronic and advanced materials, and manufacturing equipment and materials contributed to an increase in earnings in the first quarter of the current fiscal year.

Major results for the for the first quarter of fiscal year ending March 31, 2023 were as follows.

		1Q of FY3/22	1Q of FY3/23	Change	Change (%)
		(Million yen)	(Million yen)	(Million yen)
Net sales		36,944	46,837	9,893	26.8
Operating profit		3,046	3,931	884	29.0
Ordinary profit		3,487	4,251	763	21.9
Profit attributable to
shareholders	of	2,435	2,718	283	11.6
parent

Business segment performance was as follows, with sales in each segment including inter-segment sales.

		1Q of FY3/22	1Q of FY3/23	Change	Change
		(Million yen)	(Million yen)	(Million yen)	(%)
Trading-Electronic and	Sales	8,697	13,237	4,539	52.2
Advanced Materials	Segment profit	1,031	1,830	798	77.4
Trading-Aluminum and	Sales	14,267	17,506	3,238	22.7
Copper Products	Segment profit	1,008	962	(46)	(4.6)
Manufacturing-	Sales	8,080	9,763	1,683	20.8
Equipment and Materials	Segment profit	352	426	73	20.9
Manufacturing-Metal	Sales	7,415	6,967	(448)	(6.0)
Processing	Segment profit	1,078	1,037	(41)	(3.8)

• Trading-Electronicand Advanced Materials

Handling volumes of electronic components and rechargeable battery materials increased compared to the same period a year earlier due to increased demand across a wide range of applications, despite negative factors such as the lockdown in China and a slowdown in smartphone-related demand. Furthermore, sales and profits for minor metals and rare earths increased from the same period a year earlier, partly due to higher market prices, although handling volumes showed a slight decline as the demand associated with the automobile industry decreased.

• Trading-Aluminumand Copper Products

2

ALCONIX CORPORATION (3036) Financial Results for the First Quarter of FY3/23

In the non-ferrous products category, the transaction volume of rolled aluminum products and copper products, backed by increased demand for semiconductors and electronic components and solid domestic construction demand, was higher than the same period a year earlier. In the non-ferrous raw materials sector, handling volumes of mainstay copper and aluminum scrap and recycled aluminum ingots were lower than in the same period of the previous year, partly due to a decline in automobile demand. Handling volumes of the recycled aluminum ingots increased from the same period a year earlier due to rising non-ferrous metals prices and the sharp depreciation of the yen.

• Manufacturing-Equipmentand Materials

In the materials category, shipments of plating materials increased significantly compared to the same period a year earlier due to increased demand in both the United States and China, while shipments of carbon brushes decreased due to a decline in demand for automobiles. In the equipment sector, shipments of consumable materials such as flaw detection agents and paints remained firm both in Japan and abroad, and increased compared to the same period a year earlier. On the other hand, due to a slowdown in the production of consumer durables such as automobiles, shipments of large items of equipment for both non-destructive testing and marking applications decreased compared to the same period a year earlier.

• Manufacturing-MetalProcessing

Shipments of precision grinding processing parts were lower compared to the same period a year earlier, partly due to the impact of delays in the procurement of components, including semiconductors. Shipments of precision machining processing parts for semiconductor manufacturing equipment remained firm due to continuing growth in demand for semiconductors. Furthermore, shipments of metal precision stamped parts were lower compared to the same period a year earlier due to a decline in demand in the automobile industry both in Japan and overseas. On the other hand, shipments of metal processed parts for air-conditioning equipment increased from the same period a year earlier due to firm shipments for air-conditioning equipment in Japan.

1. Explanation of Financial Position 1) Financial position
   a. Current assets

At the end of the first quarter of the current fiscal year, current assets totaled 146,572 million yen, an increase of 11,452 million yen from the end of the previous fiscal year. The main factors were a 7,818 million yen increase in notes and accounts receivable-trade, a 3,077 million yen increase in inventories and a 44 million yen decrease in cash and deposits.

b. Non-current assets

Non-current assets totaled 43,151 million yen, an increase of 1,833 million yen. The main factors were a 1,735 million yen increase in property, plant and equipment resulting from the inclusion of Jupiter Industry Co., Ltd. and its overseas subsidiaries in the consolidation and capital investment, a 199 million yen increase in investments and other assets and a decrease of 101 million yen in intangible assets due to amortization.

c. Current liabilities

Current liabilities totaled 105,979 million yen, an increase of 11,335 million yen. The main factors include a 6,582 million yen increase in short-term borrowings, a 4,070 million yen increase in notes and accounts payable-trade, a 1,289 million yen decrease in income taxes payable, a 999 million yen increase in commercial papers, and a 24 million yen increase in current portion of long-term borrowings.

d. Non-current liabilities

Non-current liabilities totaled 23,444 million yen, a decrease of 1,017 million yen. The main factors include an 805 million yen decrease in long-term borrowings and a 75 million yen decrease in bonds payable.

3