Chori : FY03/2024 Q2 Financial Results Briefing

FY03/2024 Q2

(April 1, 2023 to September 30, 2023)

Financial Results

Briefing

October 31, 2023

Contents

１ FY03/2024 Q2 Financial Results Summary

P.2

２ Progress on Medium-Term Management Plan

P.15

３ Appendix

P.32

CHORI CO., LTD.

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FY03/2024 Q2 Financial Results Summary

CHORI CO., LTD.

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① FY03/2024 Q2 Financial Results Summary

Key Points of the Summary

POINT Promoted the first year of the Medium-Term Management Plan "Chori Innovation Plan 2025"

• Steadily implemented the plan to achieve its full-year forecast of financial results for the fiscal year ending March 31, 2024
• Posted ordinary profit of 7.6 billion yen, profit before income taxes of 7.8 billion yen, and net profit attributable to owners of the parent of 5.0 billion yen in FY03/2024 Q2, which

		were all record highs for a second straight year
Business		⚫ Despite a year-on-year decline in sales, profit increased due to improved profitability.
	results		⚫ The Fibers, Textiles and Garments business grew substantially. The Chemicals business
summary		also performed well.
Financial		⚫ Equity-to-asset ratio: 53.2% Maintained at a high level.
	⚫ ROE (net income/annual basis) 13.3％
	base
		⚫ ROIC (annual basis) 12.8％
			⚫ The company-wide business transformation project (mission critical system (SAP)
			implementation project, called CARAT) transitioned to system development in the
	Topics		implementation phase and is progressing as planned towards full-scale operation from
		FY2025.
			⚫ Having established the Sustainability Promotion Preparation Committee, the Company
			is considering materiality candidates.	3
			CHORI CO., LTD.

① FY03/2024 Q2 Financial Results Summary

Business Results Breakdown (YoY Comparison)

POINT ⚫ The global economy sees no end to geopolitical risks symbolized by the conflict in Europe and faces an economic slowdown in China, which is accompanied by a downturn in the

real estate market. They are causes for concern with respect to economic growth.

• The Japanese economy is on a recovery trend, thanks to a pickup in manufacturing such as automobiles and increased inbound tourism demand.
• Despite a decrease in net sales due to lower sales in the Chemicals business outside Japan, substantial growth in the Fibers, Textiles and Garments business thanks to a rebound in the Japanese apparel market led to increases in profit at each stage.

Unit: billions of yen	FY03/2023	FY03/2024	Difference	Ratio
Apr.-Sep.	Apr.-Sep.
Net sales	168.5	152.9	-15.6	-9.2%
Gross profit	18.7	19.3	+0.6	+3.4%
Selling, general and administrative expenses	11.9	11.5	-0.4	-3.4%
Operating profit	6.8	7.8	+1.0	+15.2%
Ordinary profit	7.4	7.6	+0.2	+3.3%
Profit before income taxes	7.8	7.8	+0.0	+0.0%
Net profit attributable to owners of the parent	4.8	5.0	+0.2	+4.8%

CHORI CO., LTD.

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① FY03/2024 Q2 Financial Results Summary

Reasons for Changes in Profit before Income Taxes

Unit: billions of yen

	+2.3	＋0.4	-0.7
			-0.3
-1.7
	SG&A
		Foreign
		decrease	Gain on
			exchange
			sale of
			Gain/loss
			securities,
				etc.
Effect of	Increased
decreased	profit ratio
sales
7.8				7.8
FY03/2023				FY03/2024
Apr.-Sep.				Apr.-Sep.

CHORI CO., LTD.

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① FY03/2024 Q2 Financial Results Summary

Fibers, Textiles and Garments Business

POINT

⚫ Overall sales were strong, mainly due to the accurate capture of recovery demand in the domestic apparel market, particularly in

men's wear.

• Profit increased significantly due to improved profitability.

	Unit: billions of yen	FY03/2023	FY03/2024	Difference	Ratio
	Apr.-Sep.	Apr.-Sep.
Net sales		70.0	70.3	+0.3	+0.5%
Profit before income taxes		2.0	4.3	+2.3	+116.9%
(Segment Profit)

Strong

Expansion

Overall

Domestic apparel-related

CHORI CO., LTD.

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① FY03/2024 Q2 Financial Results Summary

Chemicals Business

POINT

⚫ Sales and profits decreased due to overall decrease in demand and poor market conditions, despite strong performance in the fine chemicals segments.

	Unit: billions of yen	FY03/2023	FY03/2024	Difference	Ratio
	Apr.-Sep.	Apr.-Sep.
Net sales		95.6	81.6	-14.0	-14.7%
Profit before income taxes		5.3	4.3	-1.0	-19.6%
(Segment Profit)

Steady

Sluggish

Fine chemicals

Overall decrease in demand and poor market conditions

CHORI CO., LTD.

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① FY03/2024 Q2 Financial Results Summary

Machinery Business

POINT

⚫ Sales decreased mainly due to business selection and concentration.

• Segment loss of ¥0.8 billion due to foreign exchange loss from exchange rate fluctuations.

	Unit: billions of yen	FY03/2023	FY03/2024	Difference	Ratio
	Apr.-Sep.	Apr.-Sep.
Net sales		2.9	1.0	-1.9	-65.5%
Profit (loss) before income taxes		0.3	-0.8	-1.1	-
(Segment Profit (loss))

Loss Foreign exchange loss

CHORI CO., LTD.

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① FY03/2024 Q2 Financial Results Summary

Net Sales by Operation

POINT	⚫ Trade ratio: 67.8% (-1.4pt YoY)
		⚫ Overseas sales decreased primarily in the China business and the Chemicals
		business .

Unit: billions of yen

Net sales	168.5
Overseas	116.7
transactions
（Trade ratio）	(69.2%)

	51.8
Domestic
Import	49.0

Export

19.5

Overseas

48.1

	Net sales	152.9
	Overseas	103.6
	transactions
（Trade ratio）	(67.8%)

-2.549.3

-0.348.7

-1.717.8

-11.037.1

			Net sales	-15.6
Diff.		Overseas	-13.0
	transactions
			（Trade ratio）	(-1.4pt)
		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

FY03/2023 Apr.-Sep.

FY03/2024 Apr.-Sep.

CHORI CO., LTD.

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