Enomoto : Summary of Consolidated Financial Results for the Three Months Ended September 30 2023

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 Six Months Ended September 30, 2023 (Based on Japanese GAAP)

October 30, 2023

Company name:

ENOMOTO Co.,Ltd.

Stock exchange listing:

Tokyo

Stock code:

6928

URL

https://www.enomoto.co.jp/

Representative:

President

Nobuyuki Takeuchi

Inquiries:

Operating Officer of Administration Group

Tsutomu Takei

TEL [phone]

Scheduled date to file Quarterly Securities Report:

November 2, 2023

Scheduled date to commence dividend payments:

December 4, 2023

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)

(1) Consolidated operating results (cumulative)

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

%

Six months ended September 30, 2023

13,020

(11.1)

137

(85.4)

190

(83.1)

87

(88.8)

Six months ended September 30, 2022

14,650

6.8

938

(18.5)

1,127

(3.3)

778

(8.2)

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended September 30, 2023

13.10

13.06

Six months ended September 30, 2022

116.58

116.23

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of September 30, 2023

32,859

21,258

64.7

As of March 31, 2023

34,039

20,594

60.4

2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended March 31, 2023	-	30.00	-	30.00	60.00
Year ending March 31, 2024	-	35.00
Year ending March 31, 2024 (Forecast)			-	35.00	70.00

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	25,000	(14.6)	300	(80.8)	350	(80.6)	250	(80.3)	37.43

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4. Notes

(1) Changes in significant subsidiaries during the six months ended September 30, 2023

	(changes in specified subsidiaries resulting in the change in scope of consolidation):	No
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	No
(3)	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:	No
	Changes in accounting policies due to other reasons:	No
	Changes in accounting estimates:	No
	Restatement of prior period financial statements:	No
(4)	Number of issued shares (common shares)
	Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2023	6,865,360	shares	As of March 31, 2023	6,865,360	shares
Number of treasury shares at the end of the period
	As of September 30, 2023	186,690	shares	As of March 31, 2023	186,610	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2023	6,678,680	shares	Six months ended September 30, 2022	6,677,575	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2023	As of September 30, 2023
Assets
Current assets
Cash and deposits	4,041,219	4,176,259
Notes and accounts receivable - trade, and contract assets	8,617,216	7,295,772
Merchandise and finished goods	1,739,539	1,510,905
Work in process	1,590,892	1,700,828
Raw materials and supplies	2,390,297	2,153,759
Accounts receivable - other	515,409	310,564
Other	159,976	656,527
Allowance for doubtful accounts	(3,512)	(4,057)
Total current assets	19,051,037	17,800,560
Non-current assets
Property, plant and equipment
Buildings and structures	10,695,758	10,953,642
Accumulated depreciation and impairment	(6,036,942)	(6,290,491)
Buildings and structures, net	4,658,816	4,663,150
Machinery, equipment and vehicles	15,823,829	16,604,595
Accumulated depreciation and impairment	(11,092,816)	(11,506,662)
Machinery, equipment and vehicles, net	4,731,013	5,097,933
Tools, furniture and fixtures	4,100,324	4,159,818
Accumulated depreciation and impairment	(3,557,090)	(3,619,396)
Tools, furniture and fixtures, net	543,234	540,422
Land	2,850,782	2,850,782
Construction in progress	717,307	369,632
Total property, plant and equipment	13,501,153	13,521,921
Intangible assets	588,946	630,589
Investments and other assets
Investment securities	519,973	521,599
Retirement benefit asset	160,658	151,529
Deferred tax assets	17,363	25,016
Other	228,244	236,226
Allowance for doubtful accounts	(28,050)	(28,050)
Total investments and other assets	898,190	906,322
Total non-current assets	14,988,290	15,058,833
Total assets	34,039,328	32,859,393

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			(Thousands of yen)
		As of March 31, 2023	As of September 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	6,933,832	5,141,085
Short-term borrowings	1,197,996	1,421,996
Income taxes payable	16,680	83,508
Provision for bonuses	340,000	316,000
Other	1,687,634	1,531,841
Total current liabilities	10,176,143	8,494,431
Non-current liabilities
Long-term borrowings	1,934,018	1,710,020
Deferred tax liabilities	240,336	237,645
Retirement benefit liability	254,450	293,124
Provision for retirement benefits for directors (and other	67,792	67,792
officers)
Provision for share awards for directors (and other	144,590	158,261
officers)
Deferred tax liabilities for land revaluation	269,710	269,710
Other	357,461	369,609
Total non-current liabilities	3,268,359	3,106,163
Total liabilities	13,444,503	11,600,595
Net assets
Shareholders' equity
Share capital	4,749,333	4,749,333
Capital surplus	5,082,571	5,082,571
Retained earnings	9,502,195	9,385,497
Treasury shares	(244,093)	(244,234)
Total shareholders' equity	19,090,006	18,973,167
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	30,183	30,338
Revaluation reserve for land	(397,291)	(397,291)
Foreign currency translation adjustment	1,783,533	2,559,461
Remeasurements of defined benefit plans	73,283	78,013
Total accumulated other comprehensive income	1,489,709	2,270,522
Share acquisition rights	15,109	15,109
Total net assets	20,594,825	21,258,798
Total liabilities and net assets	34,039,328	32,859,393

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		September 30, 2022	September 30, 2023
Net sales	14,650,546	13,020,629
Cost of sales	12,477,320	11,655,632
Gross profit	2,173,225	1,364,997
Selling, general and administrative expenses	1,234,703	1,227,855
Operating profit	938,521	137,141
Non-operating income
Interest income	2,824	17,436
Dividend income	1,657	1,676
Rental income	15,255	15,605
Foreign exchange gains	138,416	29,254
Other	45,950	24,517
Total non-operating income	204,103	88,489
Non-operating expenses
Interest expenses	7,471	16,161
Loss on sale of receivables	15	-
Taxes and dues	2,995	3,091
Depreciation	3,892	3,493
Commission expenses	-	12,243
Other	440	572
Total non-operating expenses	14,815	35,563
Ordinary profit	1,127,810	190,067
Extraordinary income
Gain on sale of non-current assets	8,584	7,556
National subsidies	-	81,605
Total extraordinary income	8,584	89,161
Extraordinary losses
Loss on sale of non-current assets	6,085	4,004
Loss on retirement of non-current assets	6,223	10,082
Loss on tax purpose reduction entry of non-current assets	-	81,605
Loss on valuation of investment securities	850	-
Total extraordinary losses	13,159	95,691
Profit before income taxes	1,123,235	183,537
Income taxes - current	197,446	103,092
Income taxes - deferred	147,308	(7,072)
Total income taxes	344,755	96,020
Profit	778,480	87,517
Profit attributable to owners of parent	778,480	87,517

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Consolidated statements of comprehensive income (cumulative)

		(Thousands of yen)
	Six months ended	Six months ended
	September 30, 2022	September 30, 2023
Profit	778,480	87,517
Other comprehensive income
Valuation difference on available-for-sale securities	5,068	154
Foreign currency translation adjustment	1,459,477	775,927
Remeasurements of defined benefit plans, net of tax	(7,158)	4,729
Total other comprehensive income	1,457,387	780,812
Comprehensive income	2,235,867	868,329
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	2,235,867	868,329
Comprehensive income attributable to non-controlling	-	-
interests

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CONSOLIDATED STATEMENTS OF CASH FLOWS

			(Thousands of yen)
		Six months ended	Six months ended
		September 30, 2022	September 30, 2023
Cash flows from operating activities
Profit before income taxes	1,123,235	183,537
Depreciation	850,791	968,632
Increase (decrease) in retirement benefit liability	(4,479)	15,446
Decrease (increase) in retirement benefit asset	13,360	16,708
Increase (decrease) in provision for share awards for directors	9,039	13,671
(and other officers)
Interest and dividend income	(4,481)	(19,112)
Interest expenses	7,471	16,161
Decrease (increase) in trade receivables	(709,051)	1,629,007
Decrease (increase) in inventories	(538,338)	578,347
Increase (decrease) in trade payables	505,643	(1,985,193)
Other, net	49,597	(547,872)
Subtotal	1,302,787	869,335
Interest and dividends received	4,481	19,112
Interest paid	(7,455)	(15,305)
Income taxes refund (paid)	(162,167)	24,512
Net cash provided by (used in) operating activities	1,137,645	897,654
Cash flows from investing activities
Purchase of property, plant and equipment	(1,203,633)	(764,454)
Proceeds from sale of property, plant and equipment	13,616	12,364
Purchase of intangible assets	(31,470)	(59,809)
Purchase of investment securities	(1,371)	(1,404)
Decrease (increase) in investments and other assets	(5,362)	(5,362)
Subsidies received	-	100,000
Other, net	(4,874)	(2,637)
Net cash provided by (used in) investing activities	(1,233,095)	(721,303)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	100,000	200,000
Repayments of long-term borrowings	(133,998)	(199,998)
Repayments of finance lease liabilities	(16,982)	(30,162)
Purchase of treasury shares	-	(141)
Dividends paid	(204,301)	(204,214)
Net cash provided by (used in) financing activities	(255,281)	(234,517)
Effect of exchange rate change on cash and cash equivalents	483,511	193,206
Net increase (decrease) in cash and cash equivalents	132,779	135,040
Cash and cash equivalents at beginning of period	4,365,375	4,041,219
Cash and cash equivalents at end of period	4,498,155	4,176,259

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