EF ON : Summary of Consolidated Financial Results for the Year Ended June 30, 2022 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended June 30, 2022

(Based on Japanese GAAP)

																			August 12, 2022
Company name:	EF-ON INC.
Stock exchange listing:	Tokyo
Stock code:	9514	URL http://www.ef-on.co.jp/
Representative:	President and Representative Director	TOMOTADA SHIMAZAKI
Inquiries:	Executive Director		HISAHITO KOIKE	TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	September 27, 2022
Scheduled date to file Securities Report:		September 27, 2022
Scheduled date to commence dividend payments:		September 7, 2022
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:						Yes	(for institutional investors and analysts)
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2022 (from July 1, 2021 to June 30, 2022)
(1) Consolidated operating results												Percentages indicate year-on-year changes
			Net sales		Operating profit	Ordinary profit	Profit attributable to
				owners of parent
			Millions of yen		%	Millions of yen		%	Millions of yen	%		Millions of yen		%
Year ended June 30, 2022		13,258		0.9	1,299		(49.7)		1,174	(51.0)			893		(46.6)
Year ended June 30, 2021		13,144		7.6	2,584		(11.7)		2,397	(15.2)	1,673		(4.8)
			Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
				share			owners of				assets			sales
									parent/equity
				Yen		Yen				%						%				%
Year ended June 30, 2022		41.46			-				5.2						2.5				9.8
Year ended June 30, 2021		77.35			-				10.4						5.6				19.7
(2) Consolidated financial position
			Total assets		Net assets		Equity ratio	Net assets per share
			Millions of yen	Millions of yen					%						Yen
As of June 30, 2022			47,241					17,539					37.1						816.26
As of June 30, 2021			45,603					16,924					37.1						782.22
(3) Consolidated cash flows
			Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended June 30, 2022		2,775					(4,245)					708						4,169
Year ended June 30, 2021		4,079					(6,120)					3,040						4,931
2. Cash dividends
						Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
																to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen		Yen	Yen				Yen	Yen	Millions of yen		%			%
Year ended June 30, 2021		-		0.00	-				8.00	8.00		173		10.3			2.0
Year ended June 30, 2022		-		0.00	-				8.00	8.00		171		19.3			1.9
Year ending June 30, 2023		-			0.00	-				8.00	8.00				11.5
(Forecast)

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3. Forecast of consolidated financial results for the year ending June 30, 2023 (from July 1, 2022 to June 30, 2023)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Six months ending

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

8,000

19.4

1,200

51.3

1,050

47.0

700

44.8

32.49

December 31, 2022

Full year

17,000

28.2

2,500

92.4

2,200

87.4

1,500

67.9

69.62

4. Notes

(1) Changes in significant subsidiaries during the year ended June 30, 2022

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:

Yes

Changes in accounting policies due to other reasons:

No

Changes in accounting estimates:

No

Restatement of prior period financial statements:

No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2022

21,635,819

shares

As of June 30, 2021

21,636,579

shares

Number of treasury shares at the end of the period

As of June 30, 2022

148,500 shares

As of June 30, 2021

-

shares

Average number of shares during the period

Year ended June 30, 2022

21,546,838 shares

Year ended June 30, 2021

21,637,234 shares

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of June 30, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	5,272	4,534
Notes and accounts receivable - trade	1,270	-
Accounts receivable - trade	-	1,304
Supplies	874	1,244
Consumption taxes refund receivable	31	89
Deferred income tax - non current	508	657
Other	123	200
Total current assets	8,081	8,031
Non-current assets
Property, plant and equipment
Buildings and structures	8,847	9,114
Accumulated depreciation	(1,589)	(1,847)
Buildings and structures, net	7,257	7,266
Machinery, equipment and vehicles	21,243	20,745
Accumulated depreciation	(6,483)	(6,688)
Machinery, equipment and vehicles, net	14,760	14,056
Tools, furniture and fixtures	236	269
Accumulated depreciation	(156)	(188)
Tools, furniture and fixtures, net	79	80
Land	3,229	3,334
Leased assets	772	652
Accumulated depreciation	(695)	(629)
Leased assets, net	77	23
Trees	770	846
Construction in progress	10,839	12,999
Total property, plant and equipment	37,015	38,607
Intangible assets
Right to use electricity supply facilities	329	305
Other	8	12
Total intangible assets	338	317
Investments and other assets
Deferred tax assets	88	69
Other	80	215
Total investments and other assets	168	284
Total non-current assets	37,521	39,210
Total assets		45,603	47,241

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			(Millions of yen)
		As of June 30, 2021	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	1,000	1,543
Short-term borrowings	200	-
Current portion of long-term borrowings	1,938	2,343
Accounts payable - other	1,145	680
Current portion of long-term accounts payable-other	70	0
Lease liabilities	58	24
Income taxes payable	308	109
Provision for bonuses	44	44
Provision for maintenance	403	418
Other	175	204
Total current liabilities	5,344	5,368
Non-current liabilities
Long-term borrowings	23,194	24,099
Long-term accounts payable - other	0	-
Lease liabilities	32	7
Provision for share awards	-	29
Deferred tax liabilities	107	197
Total non-current liabilities	23,334	24,334
Total liabilities	28,678	29,702
Net assets
Shareholders' equity
Share capital	2,292	2,292
Capital surplus	1,292	1,292
Retained earnings	13,339	14,058
Treasury shares	-	(104)
Total shareholders' equity	16,924	17,539
Total net assets	16,924	17,539
Total liabilities and net assets		45,603	47,241

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		June 30, 2021	June 30, 2022
Net sales	13,144	13,258
Cost of sales	9,757	10,920
Gross profit	3,387	2,337
Selling, general and administrative expenses	802	1,038
Operating profit	2,584	1,299
Non-operating income
Interest income	0	0
Gain on sale of scraps	2	4
Gain on sale of non-current assets	-	1
Subsidy income	9	44
Subsidy income	4	6
Interest on tax refund	3	0
Other	5	6
Total non-operating income	25	63
Non-operating expenses
Interest expenses	150	168
Commission expenses	35	6
Share issuance costs	0	-
Loss on retirement of non-current assets	4	0
Other	21	14
Total non-operating expenses	212	188
Ordinary profit	2,397	1,174
Extraordinary income
Gain on reversal of share acquisition rights	8	-
Subsidy income	-	228
Total extraordinary income	8	228
Extraordinary losses
Head office relocation expenses	-	65
Other	-	0
Total extraordinary losses	-	66
Profit before income taxes	2,406	1,336
Income taxes - current	527	334
Income taxes - deferred	205	109
Total income taxes	733	443
Profit	1,673	893
Profit attributable to owners of parent		1,673	893

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