Asahi Intecc : Financial Results of the 3rd Quarter for Fiscal Year ending June 2021

Financial Results of the 3rd Quarter for

Fiscal Year ending June 2021

May 14, 2021

(Securities code: 7747	First Section of the Tokyo Stock Exchange,
	First Section of the Nagoya Stock Exchange)

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FYE June 2021 3Q YTD Main Points-1

Revenue 44,803 Mil. Yen ＜Year-on-year -1.3%＞

• • Although increased in the medical division, decrease in the device division due to the impact of COVID-19～
• Medical Division ~ Increase due to the strengthening the sales promotion activities in overseas market despite the impact of COVID-19 ~

Japan

Overseas

• Decrease in the number of cases year-on-year since April 2020 due to the impact of COVID-19
• Decrease in the most of the company's own brand products in cardiovascular segment such as PTCA GW due to the decrease in the number of cases
• Increase year-on-year in Neurovascular field mainly in new product Balloon guide catheter "Branchor"
• Reimbursement price reduction in October 2019 and April 2020 (-285 Mil. yen)
• Decrease in the number of cases in many regions due to the impact of COVID-19
• Increase in PTCA GW due to strengthening sales promotion in Chinese market and promoting direct sales in Korean market, etc.
• In Non-Cardiovascular segment , increase in Neurovascular field in Chinese, US, and Europe and Middle Eastern market
• Influence of the exchange rate fluctuation (-42 Mil. yen)

• Device Division ~ Decrease in Medical Components business / Industrial Components business due to the impact of COVID-19 ~
• • In Medical Components business, decrease in Abdominal vascular catheter components and Cardiovascular examination catheter components for US market
  • In Industrial Components business, decrease in business related to the overseas automobile market and office automation market

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FYE June 2021 3Q YTD Main Points-2

Decrease in operating income due to increase in

such as R&D expenses with ongoing upfront investment

 Gross profit : 30,451 Mil. Yen ＜YoY -2.0%＞

• Decrease in gross profit due to decrease in revenue

 Operating income : 10,086 Mil. Yen ＜ YoY -18.4% ＞









Increase in R&D expenses (5,394 Mil. Yen, YoY +702 Mil. Yen, Ratio of Revenue 12.0%) Increase in personnel expenses for strengthening organizational structure

Increase in IT expenses

Occurrence of expenses for recovering from network issues caused by unauthorized access

 Ordinary income : 10,397 Mil. Yen ＜ YoY -16.0% ＞

• • Increase in currency exchange gain (YoY +260 Mil. Yen)
• Net income attributable to parent company shareholders :

7,374 Mil. Yen ＜ YoY -20.5% ＞

Exchange rate (Unit: JPY)	US＄	EURO	CNY	BAHT
FYE June 2021 3Q YTD	105.61	125.46	15.84	3.44
FYE June 2020 3Q YTD	108.37	119.96	15.45	3.53

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Highlights

	FYE June 2020		FYE June 2021				(Reference)
				At the same exchange rate as the pervious
	3Q YTD			3Q YTD
						year
						YoY					YoY
	Amount	Ratio	Amount	Ratio	Changes	Changes		Amount	Ratio	Changes	Changes
	(Mil. Yen)	(%)	(Mil. Yen)	(%)		(Mil. Yen)	(%)
		(Mil.
						(Mil. Yen)	(%)				(%)
									Yen)
Revenue	45,407		100.0	44,803	100.0	-603		-1.3		44,915	100.0	-491	-1.1
Gross profit	31,068		68.4	30,451	68.0	-616		-2.0		30,326	67.5	-741	-2.4
Operating	12,366		27.2	10,086	22.5	-2,279		-18.4		9,836	21.9	-2,529	-20.5
income
Ordinary	12,381		27.3	10,397	23.2	-1,984		-16.0		10,147	22.6	-2,233	-18.0
income
Net income
attributable to	9,278		20.4	7,374	16.5	-1,904		-20.5		7,124	15.9	-2,154	-23.2
parent company
shareholders
EPS	35.64		―	28.29	―	-7.35		-20.6		―	―	―	―
yen		yen	yen

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Net Revenue by Segment

	FYE June 2020		FYE June 2021
	3Q YTD			3Q YTD
	Amount	Ratio	Amount	Ratio	Changes	Changes
	(Mil. Yen)	(%)	(Mil. Yen)	(%)	(Mil. Yen)	(%)
Medical	38,583		85.0	38,686	86.3	+103	+0.3
Device
6,824		15.0	6,117	13.7	-706	-10.4
Total amount	45,407		100.0	44,803	100.0	-603	-1.3
(Reference)
Medical	41,730		91.9	41,221	92.0	-509	-1.2
field
Industrial
3,676		8.1	3,582	8.0	-94	-2.6
field