Disco : Consolidated Financial Results for the First Quarter of Fiscal Year 2023

Unaudited translation, provided for reference only

DISCO Corporation (FY2023 1Q)

July 20, 2023

Consolidated Financial Results for the First Quarter of Fiscal Year 2023

Company name:	DISCO Corporation
Stock code number:	6146 (TSE Prime Market)
URL:		http://www.disco.co.jp
Telephone number:	81-3-4590-1099
Notes:	1. The accompanying financial statements have been prepared in accordance with accounting
	principles and practices generally accepted in Japan.

2. Amounts are rounded down to the nearest million yen.

1. Consolidated results for FY2023 1Q (April 1, 2023, through June 30, 2023)

1. Operating results (accumulated)

				Three months ending
				June 30, 2022	June 30, 2023	YoY (%)
	Net sales			59,749	53,961	(9.7)
	Operating income			21,592	16,972	(21.4)
	Ordinary income			22,763	18,162	(20.2)
	Net income			16,039	12,682	(20.9)
	Net income per share (yen) *		148.14	117.09	-
	*Calculated taking into account the stock split implemented on April 1, 2023
	2) Financial positions
				As of	As of
				March 31, 2023	June 30, 2023
	Total assets			468,797	454,512
	Net assets			348,041	339,206
	Equity ratio (%)			74.0%	74.4%
	Reference: equity defined as shareholders' equity plus valuation and translation adjustments
338,033	million yen	(as of	June 30, 2023)
346,798	million yen	(as of	March 31, 2023)
2. Dividends
								(yen)
				Fiscal Year 2022	Fiscal Year 2023	Fiscal Year 2023
				Actual*	Forecast*
	1Q-end dividend per share (yen)		―		―
	2Q-end dividend per share (yen)		282.00			67.00
	3Q-end dividend per share (yen)		―				―
	Year-end dividend per share (yen)		634.00				―
	Annual dividend per share (yen)		916.00				―
	Revision of dividends forecast during this period: Yes
	*Calculated taking into account the stock split implemented on April 1, 2023
3. Earnings forecast for FY2023 2Q
				(millions of yen)
				Six months ending	YoY (%)
				September 30, 2023
	Net sales			119,300	(14.3)
	Operating income			39,400	(28.2)
	Ordinary income			40,700	(29.3)
	Net income			28,700	(29.4)
	Net income per share (yen)*		264.93	-
	Shipment figures			139,500	(3.2)
	Revision of earnings forecast during this period: Yes

*Calculated taking into account the stock split implemented on April 1, 2023

Unaudited translation, provided for reference only

DISCO Corporation (FY2023 1Q)

4. Other

1. Important changes in subsidiaries: None
2. Changes in principles, procedures, or display of accounting method concerning consolidated statement policies.
3. 1. Changes in accounting policies along with changes in accounting standards: Yes
   2. Other changes: None
4. Number of shares outstanding (common stock)*

(1)	Number of shares issued (including treasury stocks)
	As of June 30, 2023:	108,348,183	shares
	As of March 31, 2023:	108,317,313	shares
(2)	Number of shares of treasury stock
	As of June 30, 2023:	15,836	shares
	As of March 31, 2023:	15,285	shares
(3)	Average number of shares
	As of June 30, 2023:	108,309,308	shares
	As of June 30, 2022:	108,275,593	shares

*Calculated taking into account the stock split implemented on April 1, 2023

Explanation regarding appropriate use of earnings forecast:

The performance forecasts and estimates provided in this Financial Review are based on certain assumptions judged to be reasonable at the present time in light of information currently available. Consequently, actual operating results may differ substantially from the projections in the Financial Review.

Reference: Non-consolidated earnings forecast for FY2023 2Q

(millions of yen)

	Six months ending	YoY (%)
	September 30, 2023
Net sales	97,300	(14.5)
Operating income	32,000	(24.8)
Ordinary income	48,900	(20.2)
Net income	37,800	(18.6)
Net income per share (yen)*	348.93	-

Revision of earnings forecast during this period: Yes

*Calculated taking into account the stock split implemented on April 1, 2023

Unaudited translation, provided for reference only	DISCO Corporation (FY2023 1Q)
5. Consolidated quarterly balance sheets
		(Millions of yen)
	As of March 31,	As of June 30,
	2023	2023
Assets
Current assets
Cash and deposits	163,053	153,201
Notes and accounts receivable - trade, and	41,356	35,421
contract assets
Merchandise and finished goods	24,530	28,177
Work in process	23,407	26,434
Raw materials and supplies	43,446	43,924
Other	9,420	3,314
Allowance for doubtful accounts	(95)	(74)
Total current assets	305,118	290,398
Non-current assets
Property, plant and equipment
Buildings and structures, net	95,780	95,515
Other, net	51,760	54,522
Total property, plant and equipment	147,541	150,038
Intangible assets	231	232
Investments and other assets	15,905	13,842
Total non-current assets	163,678	164,113
Total assets	468,797	454,512
Liabilities
Current liabilities
Notes and accounts payable - trade	6,942	5,802
Electronically recorded obligations - operating	19,658	18,932
Income taxes payable	16,497	4,014
Contract liabilities	39,164	55,417
Provision for bonuses	26,958	18,180
Other provisions	1,042	1,244
Other	9,710	10,898
Total current liabilities	119,974	114,490
Non-current liabilities	781	815
Total liabilities	120,755	115,306
Net assets
Shareholders' equity
Share capital	21,681	21,801
Capital surplus	23,670	23,790
Retained earnings	293,209	283,070
Treasury shares	(32)	(41)
Total shareholders' equity	338,528	328,621
Accumulated other comprehensive income
Valuation difference on available-for-sale	98	166
securities
Foreign currency translation adjustment	8,196	9,262
Remeasurements of defined benefit plans	(23)	(17)
Total accumulated other comprehensive income	8,270	9,412
Share acquisition rights	997	991
Non-controlling interests	245	180
Total net assets	348,041	339,206
Total liabilities and net assets	468,797	454,512

Unaudited translation, provided for reference only	DISCO Corporation (FY2023 1Q)
6. Consolidated quarterly statement of (comprehensive) income
		(Millions of yen)
	Three months	Three months
	30-Jun-22	30-Jun-23
Net sales	59,749	53,961
Cost of sales	21,614	18,779
Gross profit	38,135	35,182
Selling, general and administrative expenses	16,542	18,209
Operating profit	21,592	16,972
Non-operating income
Interest income	11	12
Share of profit of entities accounted for using equity	92	39
method
Foreign exchange gains	975	1,014
Rental income	37	54
Subsidy income	0	0
Other	67	82
Total non-operating income	1,185	1,202
Non-operating expenses
Depreciation	8	8
Other	5	3
Total non-operating expenses	14	12
Ordinary profit	22,763	18,162
Extraordinary income
Gain on sale of non-current assets	0	2
Total extraordinary income	0	2
Extraordinary losses
Loss on sale and retirement of non-current assets	12	13
Extra retirement payments	13	11
Total extraordinary losses	25	25
Profit before income taxes	22,737	18,139
Income taxes - current	5,021	3,202
Income taxes - deferred	1,668	2,266
Total income taxes	6,689	5,468
Profit	16,048	12,670
Profit attributable to
Profit attributable to owners of parent	16,039	12,682
Profit attributable to non-controlling interests	8	(11)
Other comprehensive income
Foreign currency translation adjustment	2,016	1,141
Remeasurements of defined benefit plans, net of	5	6
tax
Share of other comprehensive income of entities	73	7
accounted for using equity method
Total other comprehensive income	2,095	1,155
Comprehensive income	18,143	13,826
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	18,125	13,824
Comprehensive income attributable to non-controlling	18	2
interests