GSI Creos : Summary of Consolidated Financial Statements for 2Ｑof FY2023

*This document is a translation of the original Japanese document and does not contain all details of it.

*This document has been prepared for reference only in accordance with accounting principles generally accepted in Japan. *If there is any discrepancy between this document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Statements

for the Second Quarter of the Fiscal Year Ending March 31, 2024

[Japan GAAP]

November 2, 2023

Stock Exchange Listing: Tokyo (Prime Market)

Company Name: GSI Creos Corporation

Code Number:	8101	URLhttps://www.gsi.co.jp
Representative:	Tadaaki Yoshinaga Representative Director, President and CEO
Inquiries:	Kunihiro Ono	Director, Executive Officer Tel: [phone]

Scheduled Date of Quarterly Report Filing:		November 9, 2023
Scheduled Date of Dividend Payments Commencement:		―
Supplementary Documents for Quarterly Financial Statements:	Yes
Holding of Quarterly Financial Results Meeting:		Yes	(Note: Amounts less than one million of yen have been rounded down.)
1. Consolidated Results for the Second Quarter of the Fiscal Year Ending March 31, 2024	(April 1, 2023 to September 30, 2023)
(1) Consolidated Operating Results (Cumulative Total)		(Percentage figures represent changes from the same period of the previous year.)
	Net sales		Operating profit	Ordinary profit		Profit attributable to
			owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen	%
Second quarter ended September 30, 2023	70,850		17.1	1,722	53.4	1,802		40.6	1,297	42.7
Second quarter ended September 30, 2022	60,508		15.0	1,123	(6.5)	1,281		6.2	909	(2.7)

(Note) Comprehensive income	Second quarter ended September 30, 2023	:	2,028	millions of yen	13.4 %
	Second quarter ended September 30, 2022	:	1,788	millions of yen	(10.8) %

	Net income	Diluted net income
	per share	per share
	Yen	Yen
Second quarter ended September 30, 2023	105.83	―
Second quarter ended September 30, 2022	74.21	―
(2) Consolidated Financial Position
	Total assets	Net assets	Equity ratio
	Millions of yen	Millions of yen	%
Second quarter ended September 30, 2023	70,517	27,066	38.4
Fiscal year ended March 31, 2023	69,412	25,929	37.4

(Reference) Equity capital	Second quarter ended September 30, 2023
	Fiscal year ended March 31, 2023

• 27,066 millions of yen
• 25,929 millions of yen

2. Dividends

Annual dividend per share

	1Q	2Q	3Q	Fiscal year end	Annual
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March 31, 2023	―	0.00	―	73.00	73.00
Fiscal year ending March 31, 2024	―	0.00
Fiscal year ending			―	80.00	80.00
March 31, 2024 (Forecast)
(Note) Revisions to the dividend forecast published most recently	: No

3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2024	(April 1, 2023 to March 31, 2024)
					(Percentage figures represent changes from the same period of the previous year.)
	Net sales		Operating profit		Ordinary profit	Profit attributable to	Net income
			owners of parent	per share
	Millions of yen		%	Millions of yen	%		Millions of yen	%	Millions of yen		%	Yen
Full fiscal year	137,000		4.5	2,800	53.0		2,800	56.6	1,950		10.2	159.05
(Note) Revisions to the consolidated results forecasts published most recently	: No

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* Notes

(1)	Changes in Significant Subsidiaries During the Period
	(Changes in Specified Subsidiaries Associated with Changes in the Scope of Consolidation)	: No
(2)	Application of Special Accounting Methods to the Preparation of Quarterly Financial Statements	: No
(3)	Changes in Accounting Policies and Estimates, and Retrospective Restatement		: No
	ⅰ Changes in accounting policies due to revisions of accounting standards and other regulations
	ⅱ Changes in accounting policies other than in (ⅰ) : No

• Changes in accounting estimates : No ⅳ Retrospective restatement : No

1. Number of Shares Issued and Outstanding (Common Stock)

• Number of shares issued and outstanding at the end of period (including treasury stock)

Second quarter ended September 30, 2023

12,629,942 shares

Fiscal year ended March 31, 2023

12,629,942 shares

• Number of treasury stock at the end of period

Second quarter ended September 30, 2023

362,610 shares

Fiscal year ended March 31, 2023

367,565 shares

• Average number of shares during the period

Six months ended September 30, 2023

12,264,545 shares

Six months ended September 30, 2022

12,258,968 shares

• This quarterly report is out of scope of the quarterly review procedure performed by a certified public accountant or audit corporation.
• Cautionary statement with respect to forecasts of consolidated business results and special notes

Earning forecasts presented in this report are based on information available and assumptions deemed reasonable at the time. Therefore, they do not constitute a guarantee that they will be realized. Actual results could differ significantly from forecasts due to a variety of factors.

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Quarterly Consolidated Financial Statements

(1)Quarterly Consolidated Balance Sheets

(Millions of yen)

	Previous fiscal year	Second quarter,
	current fiscal year
	(March 31, 2023)
	(September 30, 2023)
Assets
Current assets
Cash and deposits	8,352	8,756
Notes receivable-trade	1,486	1,586
Electronically recorded monetary claims-operating	2,118	2,544
Accounts receivable-trade	31,798	31,572
Merchandise	10,179	10,837
Work in process	1,041	1,082
Raw materials	164	188
Other	2,958	2,094
Allowance for doubtful accounts	(450)	(321)
Total current assets	57,650	58,340
Non-current assets
Property, plant and equipment	3,741	3,694
Intangible assets
Goodwill	379	888
Other	252	229
Total Intangible assets	631	1,117
Investments and other assets
Investment securities	5,483	5,495
Other	1,905	1,868
Total investments and other assets	7,389	7,364
Total non-current assets	11,761	12,176
Total assets	69,412	70,517
Liabilities
Current liabilities
Notes and accounts payable-trade	23,959	26,389
Electronically recorded obligations-operating	−	353
Short-term loans payable	12,821	10,009
Current portion of long-term loans payable	83	90
Income taxes payable	341	408
Provisions	519	458
Other	3,731	3,719
Total current liabilities	41,456	41,429
Non-current liabilities
Long-term loans payable	1,153	1,111
Retirement benefit liability	72	83
Other	800	825
Total non-current liabilities	2,026	2,020
Total liabilities	43,482	43,450
Net assets
Shareholders' equity
Capital stock	7,186	7,186
Capital surplus	859	859
Retained earnings	15,377	15,780
Treasury stock	(287)	(284)
Total shareholders' equity	23,135	23,542
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,725	1,701
Deferred gains or losses on hedges	(15)	74
Foreign currency translation adjustment	1,053	1,725
Remeasurements of defined benefit plans	31	22
Total accumulated other comprehensive income	2,793	3,524
Total net assets	25,929	27,066
Total liabilities and net assets	69,412	70,517

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(2)Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of

Comprehensive Income

(Quarterly Consolidated Statements of Income)

(Cumulative Second Quarter)

		(Millions of yen)
	Cumulative second quarter, Cumulative second quarter,
	previous fiscal year	current fiscal year
	(April 1, 2022-	(April 1, 2023-
	September 30, 2022)	September 30, 2023)
Net sales	60,508	70,850
Cost of sales	53,639	62,578
Gross profit	6,868	8,271
Selling, general and administrative expenses	5,745	6,549
Operating profit	1,123	1,722
Non-operating income
Interest income	20	25
Dividend income	56	84
Share of profit of entities accounted for using equity method	178	8
Foreign exchange gains	−	13
Other	110	93
Total non-operating income	366	226
Non-operating expenses
Interest expenses	73	104
Share of loss of entities accounted for using equity method	40	19
Foreign exchange losses	77	−
Other	16	21
Total non-operating expenses	208	145
Ordinary profit	1,281	1,802
Extraordinary income
Gain on sales of investments in capital	－	39
Total extraordinary income	－	39
Extraordinary losses
Loss on retirement of non-current assets	1	2
Other	－	7
Total extraordinary losses	1	10
Income before income taxes	1,280	1,832
Income taxes-current	314	478
Income taxes-deferred	55	56
Total income taxes	370	534
Profit	909	1,297
Profit attributable to owners of parent	909	1,297

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(Quarterly Consolidated Statements of Comprehensive Income)

(Cumulative Second Quarter)

		(Millions of yen)
	Cumulative second quarter,	Cumulative second quarter,
	previous fiscal year	current fiscal year
	(April 1, 2022-	(April 1, 2023-
	September 30, 2022)	September 30, 2023)
Profit	909	1,297
Other comprehensive income
Valuation difference on available-for-sale securities	(244)	(23)
Deferred gains or losses on hedges	86	90
Foreign currency translation adjustment	1,050	672
Remeasurements of defined benefit plans, net of tax	(14)	(8)
Total other comprehensive income	878	730
Comprehensive income	1,788	2,028
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	1,788	2,028

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(3)Quarterly Consolidated Statements of Cash Flows

		(Millions of yen)
	Cumulative second quarter,	Cumulative second quarter,
	previous fiscal year	current fiscal year
	(April 1, 2022-	(April 1, 2023-
	September 30, 2022)	September 30, 2023)
Cash flows from operating activities
Income before income taxes	1,280	1,832
Depreciation	185	196
Amortization of goodwill	42	82
Increase (decrease) in allowance for doubtful accounts	(13)	(50)
Increase (decrease) in retirement benefit liability	(19)	(4)
Interest and dividend income	(77)	(110)
Interest expenses	73	104
Foreign exchange losses (gains)	5	(1)
Loss on retirement of property, plant and equipment	1	2
Gain on sales of investments in capital	－	(39)
Decrease (increase) in notes and accounts receivable-trade	(4,735)	2,110
Decrease (increase) in inventories	(15)	(201)
Decrease (increase) in other assets	274	975
Increase (decrease) in notes and accounts payable-trade	2,488	(152)
Increase (decrease) in other liabilities	(630)	(247)
Other, net	(49)	204
Subtotal	(1,188)	4,699
Interest and dividends income received	84	115
Interest expenses paid	(73)	(104)
Income taxes paid	(186)	(413)
Cash flows from operating activities	(1,364)	4,296
Cash flows from investing activities
Purchase of property, plant and equipment	(11)	(56)
Purchase of investment securities	(95)	(149)
Proceeds from sale of investments in capital	－	214
Payments for investments in capital	(25)	(35)
Loan advances	(41)	(62)
Proceeds from collection of loans receivable	481	−
Other, net	(40)	44
Cash flows from investing activities	266	(46)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable	2,112	(3,109)
Repayments of long-term loans payable	(45)	(34)
Proceeds from sale and leaseback transactions	96	−
Repayments of lease obligations	(100)	(92)
Purchase of treasury stock	(0)	(1)
Cash dividends paid	(796)	(895)
Cash flows from financing activities	1,266	(4,132)
Effect of exchange rate change on cash and cash equivalents	160	111
Net increase (decrease) in cash and cash equivalents	329	229
Cash and cash equivalents at the beginning of period	8,078	8,352
Increase in cash and cash equivalents from newly consolidated	－	174
Cash and cash equivalents at the end of period	8,407	8,756

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