Enplas : Notice Concerning Extraordinary Losses, Non-operating Expenses, Revision of Consolidated Earnings Forecasts and Revision of Dividend Forecasts

October 25, 2022

Company name: Enplas Corporation

Representative: Daisuke Yokota, President

Code No.: 6961, TSE Prime

Inquiries: Shigeya Fujita,

Member of the board, Executive Officer

Tel: [phone]

Notice Concerning Extraordinary Losses, Non-operating Expenses,

Revision of Consolidated Earnings Forecasts and Revision of Dividend Forecasts

Enplas Corporation ("Enplas", head office: Saitama, president: Daisuke Yokota) announces that Enplas expects to record extraordinary losses and non-operating expenses for the fiscal year ending March 31, 2023. Consequently, Enplas has revised the consolidated earnings forecast for the fiscal year ending March 31, 2023, as announced on July 29, 2022, and the dividend forecasts for the fiscal year ending March 31, 2023, as announced on April 28, 2022, as follows.

1. Details of extraordinary losses and non-operating expenses

As the actual value of shares of investment securities owned by consolidated subsidiary of Enplas fell significantly, Enplas expects to record extraordinary losses of 1,434 million yen as loss on valuation of investment securities.

In addition, regarding stocks of equity method affiliates, Enplas expects to record non-operating losses of 147 million yen as a loss on investment in affiliates.

2. Revision of consolidated earnings forecasts

1. Revision of consolidated earnings forecast for the six-month period ended September 30, 2022

		Operating	Ordinary	Profit		Earnings
	Net sales	attributable to
	income	income		per share
		owners of parent
Previous forecast (A)	Million yen	Million yen	Million yen	Million yen		yen
19,000	3,400	3,500	2,500	283.57
Revised forecast (B)	21,000	4,300	4,500	1,700	192.77
Difference (B－A)	2,000	900	1,000	△800
Rate of change (%)	10.5	26.4	28.5	△32.0
Results for the six-month	16,118	1,654	1,531	910	103.44
period ended March 31,
2022

1. Revision of consolidated earnings forecast for the fiscal year ending March 31, 2023

		Operating	Ordinary	Profit		Earnings
	Net sales	attributable to
	income	income		per share
		owners of parent
Previous forecast (A)	Million yen	Million yen	Million yen	Million yen		yen
37,500	6,500	6,500	4,600	521.78
Revised forecast (B)	43,000	8,400	8,600	4,600	521.61
Difference (B－A)	5,500	1,900	2,100	0
Rate of change (%)	14.6	29.2	32.3	0.0
Results for the fiscal year	32,894	3,600	3,451	2,528	287.10
ended March 31, 2022

3. Reason for the revision

The consolidated earnings forecast for the first half of the fiscal year ending March 31, 2023, is expected to exceed the previous forecast reflecting the impact of a weaker yen and strong sales of various IC test sockets and burn-in sockets in Semiconductor business. In addition, as a result of item 1 above, profit attributable to owners of parent is expected to be lower than previous forecast.

Regarding the consolidated earnings forecast for the fiscal year ending March 31, 2023, the Semiconductor business is expected to exceed the previous forecast because demand for servers and automotive applications, on which Enplas focuses, is expected to continue to increase, despite concerns of an adjustment in demand for semiconductors due to decreased demand for high-tech products such as PCs and smartphones. The Life Science business is expected to exceed the previous forecast, as sales are expected to remain strong by focusing on developing new customers and developing new products in line with the expansion of the genetic testing market. In addition, the trend toward a weaker yen is also expected to continue. Due to these factors, net sales, operating income and ordinary income are expected exceed the previous forecast in the consolidated earnings forecast for the fiscal year ending March 31, 2023.

4. Revision of dividend forecasts

		Dividend per share (Yen)
	End of Q1	End of Q2	End of Q3	Year-end	Total
Previous forecast	−	25.00	−	25.00	50.00
Revised forecast	−	30.00	−	30.00	60.00
Current fiscal year results	−		−
Results for the fiscal year	−	22.50	−	25.00	47.50
ended March 31, 2021

5. Reason for the revision

The interim and the year-end dividend forecasts for the fiscal year ending March 31, 2023 have been revised up to 30 yen per share, an increase of 5 yen from the original forecast of 25 yen per share, taking into comprehensive consideration the business performance, financial condition, and other aspects of the fiscal year. As result, the annual dividend forecast for the year ending March 31, 2023 has been revised up to 60.00 yen per share.

Notice:

1. This announcement contains forward-looking statements. These forward-looking statements are based on Enplas's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Enplas's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Enplas's latest Annual Securities Report and Quarterly Securities Report, and Enplas undertakes no obligation to publicly update or revise any forward-looking statements.
2. The official version of this announcement was published in Japanese. An unofficial English translation is provided for the convenience of overseas investors. For any discrepancies between the Japanese and English versions, the Japanese version shall prevail.