Central Glass : Consolidated Financial Results for the First Half Ended September 30, 2023（298KB）

November 6, 2023

Central Glass Co., Ltd.

Consolidated Financial Results for the First Half Ended September 30, 2023

(April 1, 2023 to September 30, 2023)

* All amounts are rounded down to the nearest million yen.

1. Consolidated Financial Results for the First Half Ended September 30, 2023

(April 1, 2023 to September 30, 2023)

(1) Operating results

	Net sales		Operating profit (Loss)	Ordinary profit (Loss)	Profit (Loss) attributable
		to owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
First half ended September 30, 2023	79,115	1.1	6,010	(19.1)	6,305	(40.7)	5,672	(66.4)
First half ended September 30, 2022	78,268	(20.2)	7,426	185.7	10,625	156.7	16,863	474.3
Note: Comprehensive income: First half ended September 30, 2023: 9,250 million yen [%]
First half ended September 30, 2022: 14,452 million yen [108.5%]
	Earnings per share
	Basic		Diluted
	Yen
First half ended September 30, 2023	228.92		-
First half ended September 30, 2022	421.65		-

Notes:

Percentage figures for net sales, operating profit, ordinary profit and profit attributable to owners of parent represent year-on-year comparisons.

(2) Financial position

	Total assets	Net assets	Equity ratio
	Millions of yen	Millions of yen	%
As of September 30, 2023	223,013	114,821	49.3
As of March 31, 2023	221,090	107,861	46.8
Reference: Equity As of September 30, 2023: 110,029 million yen	As of March 31, 2023: 103,483 million yen

2. Dividends

			Dividends per share
	1Q	2Q		3Q	4Q	Full year
	Yen	Yen		Yen	Yen	Yen
Year ended March 31, 2023	-	37.50		-	77.50	115.00
Year ending March 31, 2024	-	57.50
Year ending March 31, 2024 (forecast)				-	57.50	115.00

Note: Revision to recently announced dividend forecasts: None

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

	Net sales		Operating profit	Ordinary profit	Profit attributable	Earnings
		to owners of parent	per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	161,500	(4.6)	11,000	(34.4)	12,000	(38.9)	10,000	(76.5)	403.55
Notes:

1. Percentage figures represent changes from the corresponding period in the previous year.
2. Revision to recently announced financial forecast: Yes

*This financial release is not subject to audit procedures.

*Cautionary note regarding forward-looking statements:

The above forecast is based on data available as of the date of release of this document as well as assumptions based on uncertain factors, which

might have a material effect on the Company's performance in the future.

1

Consolidated Balance Sheets

		(Millions of yen)
	As of March 31, 2023	As of September 30, 2023
Assets
Current assets
Cash and deposits	17,844	23,390
Notes and accounts receivable - trade, and contract	42,978	39,347
assets
Merchandise and finished goods	27,977	30,164
Work in process	2,495	2,517
Raw materials and supplies	19,314	19,041
Other	4,608	4,755
Allowance for doubtful accounts	(116)	(147)
Total current assets	115,101	119,070
Non-current assets
Property, plant and equipment
Buildings and structures, net	20,185	20,157
Machinery, equipment and vehicles, net	23,056	22,181
Land	20,693	20,548
Construction in progress	2,195	1,960
Other, net	3,768	4,045
Total property, plant and equipment	69,898	68,893
Intangible assets
Other	980	959
Total intangible assets	980	959
Investments and other assets
Investment securities	23,696	22,880
Other	11,546	11,322
Allowance for doubtful accounts	(133)	(113)
Total investments and other assets	35,109	34,090
Total non-current assets	105,989	103,943
Total assets	221,090	223,013

2

		(Millions of yen)
	As of March 31, 2023	As of September 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	21,681	17,395
Short-term borrowings	10,759	9,248
Current portion of bonds payable	10,000	10,000
Income taxes payable	814	1,338
Contract liabilities	916	986
Provision for bonuses	1,242	1,265
Provision for business restructuring	445	105
Other	15,213	19,241
Total current liabilities	61,073	59,580
Non-current liabilities
Bonds payable	18,000	18,000
Long-term borrowings	26,334	22,527
Provision for special repairs	1,676	1,858
Provision for share awards for directors (and other	－	9
officers)
Provision for share awards for employees	－	52
Retirement benefit liability	5,571	5,605
Other	572	558
Total non-current liabilities	52,155	48,611
Total liabilities	113,228	108,192
Net assets
Shareholders' equity
Share capital	18,168	18,168
Capital surplus	8,109	8,109
Retained earnings	127,977	74,754
Treasury shares	(60,781)	(3,830)
Total shareholders' equity	93,474	97,202
Accumulated other comprehensive income
Valuation difference on available-for-sale	5,832	6,070
securities
Deferred gains or losses on hedges	34	70
Foreign currency translation adjustment	3,609	6,195
Remeasurements of defined benefit plans	532	490
Total accumulated other comprehensive income	10,008	12,826
Non-controlling interests	4,378	4,791
Total net assets	107,861	114,821
Total liabilities and net assets	221,090	223,013

Note: All amounts are rounded down to the nearest million yen.

3

Consolidated Statements of Income

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2022	September 30, 2023
Net sales	78,268	79,115
Cost of sales	58,030	59,593
Gross profit	20,238	19,522
Selling, general and administrative expenses	12,811	13,511
Operating profit	7,426	6,010
Non-operating income
Interest income	163	80
Dividend income	403	451
Share of profit of entities accounted for using equity	757	－
method
Foreign exchange gains	1,658	611
Royalty income	556	482
Other	647	375
Total non-operating income	4,187	2,002
Non-operating expenses
Interest expenses	125	179
Share of loss of entities accounted for using equity	－	780
method
Other	862	747
Total non-operating expenses	988	1,707
Ordinary profit	10,625	6,305
Extraordinary income
Gain on sale of non-current assets	566	59
Gain on sale of investment securities	7,952	1,855
Gain on sale of businesses	－	70
Total extraordinary income	8,519	1,984
Extraordinary losses
Loss on sale of non-current assets	10	－
Business restructuring expenses	452	－
Loss on liquidation of subsidiaries and associates	0	115
Total extraordinary losses	463	115
Profit before income taxes	18,681	8,174
Income taxes	1,285	1,936
Profit	17,395	6,238
Profit attributable to non-controlling interests	531	565
Profit attributable to owners of parent	16,863	5,672

Note: All amounts are rounded down to the nearest million yen.

4

Consolidated Statements of Comprehensive Income

				(Millions of yen)
			Six months ended	Six months ended
			September 30, 2022	September 30, 2023
Profit			17,395	6,238
Other comprehensive income
Valuation difference on available-for-sale securities	(6,007)	234
Deferred gains or losses on hedges		(131)	43
Foreign currency translation adjustment		2,498	2,360
Remeasurements of defined benefit plans, net of tax	(83)	(42)
Share of other	comprehensive income	of entities	871	416
accounted for using equity method
Total other comprehensive income		(2,852)	3,012
Comprehensive income		14,542	9,250
Comprehensive income attributable to
Comprehensive	income attributable to	owners of	13,657	8,498
parent
Comprehensive income attributable to non-controlling	885	752
interests

Note: All amounts are rounded down to the nearest million yen.

5

Consolidated Statements of Cash Flows

	(Millions of yen)
Six months ended	Six months ended
September 30, 2022	September 30, 2023

Cash flows from operating activities

Profit before income taxes

Depreciation

Increase (decrease) in provisions

Increase (decrease) in retirement benefit liability Business restructuring expenses

Loss (gain) on sale of businesses

Interest and dividend income

Interest expenses

Share of loss (profit) of entities accounted for using equity method

Loss (gain) on sale of investment securities

Loss (gain) on liquidation of subsidiaries and associates Loss (gain) on sale of non-current assets

Loss on abandonment of non-current assets

Decrease (increase)in trade receivables and contract assets

Decrease (increase) in inventories

Increase (decrease) in trade payables

Increase (decrease) in accrued consumption taxes Increase (decrease) in accrued expenses

Other, net

Subtotal

Interest and dividends received

Interest paid

Income taxes paid

Net cash provided by (used in) operating activities Cash flows from investing activities

Payments into time deposits

Proceeds from withdrawal of time deposits Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Proceeds from sale and redemption of investment securities

Payments for sale of shares of subsidiaries resulting in change in scope of consolidation

Proceeds from liquidation of subsidiaries and associates Proceeds from sale of businesses

Other, net

Net cash provided by (used in) investing activities

Cash flows from financing activities

Net increase (decrease) in short-term borrowings Net increase (decrease) in commercial papers Repayments of long-term borrowings Purchase of treasury shares

Dividends paid

Dividends paid to non-controlling interests

Other, net

18,681	8,174
4,479	4,517
(1,707)	(66)
(87)	(27)
62	－
－	(70)
(566)	(532)
125	179
(757)	780
(7,952)	(1,855)
0	115
(578)	(62)
263	208
(1,242)	4,420
(4,954)	(1,052)
374	(4,878)
(432)	378
158	(291)
(324)	78
5,541	10,015
648	537
(105)	(187)
(1,726)	(789)
4,357	9,576
(713)	(1,946)
1,317	1,946
(3,795)	(4,093)
642	290
10,170	2,028
(7,313)	－
30	249
－	70
217	(311)
555	(1,766)
923	(650)
(1,000)	5,000
(3,592)	(4,667)
(4,376)	(0)
(1,517)	(1,920)
(89)	(339)
(60)	(43)

Net cash provided by (used in) financing activities	(9,713)	(2,621)
Effect of exchange rate change on cash and cash quivalents	992	291
Net increase (decrease) in cash and cash equivalents	(3,807)	5,481
Cash and cash equivalents at beginning of period	26,906	16,672
Increase (decrease) in cash and cash equivalents resulting	－	9
from change in scope of consolidation
Cash and cash equivalents at end of period	23,098	22,162

6

Notes to Quarterly Consolidated Financial Statements

Notes on premise of going concern

Not applicable.

Notes on significant changes in the amount of shareholders' equity

The Board of Directors resolved on May 11, 2023, to cancel treasury stock in accordance with Article 178 of the Companies Act, so the Company cancelled 16,975,995 shares of treasury stock on May 26, 2023.

As a result, retained earnings and treasury stock decreased by 56,774 million yen in the first half of the current fiscal year.

Adoption of specific accounting policies for quarterly consolidated financial statement

Income tax expenses of Central Glass Co., Ltd. and some of its consolidated subsidiaries were calculated by multiplying income before income taxes by an effective tax rate that was reasonably estimated by applying tax effect accounting to a projected annual income before income taxes.

Supplementary information [Director Trust]

Based on the resolution of the meeting of the Board of Directors held on May 11, 2023, the Company has introduced an equity compensation plan using a trust for our directors, excluding outside directors, and executive officers who have entered into an entrustment agreement with us (hereinafter referred to as the "Plan for directors").

The purpose of the Plan for directors is to clarify the linkage between the remuneration of directors and our performance and stock price, and to raise the awareness that directors will contribute to improving the Company's medium-tolong-term performance and increasing enterprise value by sharing profits and risks from stock price fluctuations with shareholders.

The accounting treatment for the Plan for directors is in accordance with "Practical Solution on Transactions of Delivering the Company's Own Stock to Employees etc. through Trusts" (PITF (Practical Issue Task Force) No. 30, March 26, 2015).

(1) Outline of the Plan for directors

The Plan for directors is an equity compensation plan under the trust established for the introduction of the Plan (hereinafter referred to as the "Trust") acquires shares of the Company, and a number of shares of the Company, which is equivalent to the number of points we grant to each director, is delivered to each director through the Trust.

In principle, the time when directors receive the delivery of Company's shares is upon the retirement of them.

1. Company's shares remaining in the Trust

The Company's shares remaining in the Trust are recorded as treasury stock under net assets at their carrying amounts (excluding incidental expenses). As of September 30, 2023, the carrying amount and the number of Company's shares remaining in the Trust are 367 million yen and 123,700 shares, respectively.

[Employee Trust]

Based on the resolution of the meeting of the Board of Directors held on May 11, 2023, the Company has introduced an equity compensation plan using a trust for our employees (hereinafter referred to as the "Plan for employees").

The purpose of the Plan for employees is to enhance the Company's mid-tolong-term enterprise value by enhancing employee benefit programs and raising awareness of the Company's performance and stock price, thereby fostering a sense of participation in management.

The accounting treatment for the Plan for employees is in accordance with "Practical Solution on Transactions of Delivering the Company's Own Stock to Employees etc. through Trusts" (PITF No. 30, March 26, 2015).

(1) Outline of the Plan for employees

The Plan for employees is a stock-based compensation plan under the trust established for the introduction of the Plan (hereinafter referred to as the "Trust") acquires shares of the Company, and a number of shares of the Company is delivered to such employees through the Trust, which is equivalent to the number of points to be granted according to position, etc. for employees (but only for those who satisfy certain requirements).

In principle, the time when employees receive the delivery of Company's shares is upon the time of retirement of them.

1. Company's shares remaining in the Trust

The Company's shares remaining in the Trust are recorded as treasury stock under net assets at their carrying amounts (excluding incidental expenses). As of September 30, 2023, the carrying amount and the number of Company's shares remaining in the Trust are 1,047 million yen and 352,300 shares, respectively.

7

Segment Information

1. Information on net sales, profit or loss by reportable segment

					Millions of yen
		First half ended September 30, 2022
	Glass	Chemicals	Total	Adjustments*	Consolidated
Net sales:
External customers	25,349	52,919	78,268	－	78,268
Intersegment	0	462	462	(462)	－
Total	25,349	53,381	78,730	(462)	78,268
Segment profit	1,029	6,397	7,426	－	7,426
(Operating profit)

Note: All amounts are rounded down to the nearest million yen. *Adjustments are intersegment eliminations.

					Millions of yen
		First half ended September 30, 2023
	Glass	Chemicals	Total	Adjustments*	Consolidated
Net sales:
External customers	28,890	50,225	79,115	－	79,115
Intersegment	20	602	623	(623)	－
Total	28,911	50,827	79,739	(623)	79,115
Segment profit(loss)	939	5,071	6,010	－	6,010
(Operating profit)

Note: All amounts are rounded down to the nearest million yen. *Adjustments are intersegment eliminations.

8