GSI Creos : Summary of Consolidated Financial Statements for FY2022

*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 Fiscal Year Ended March 31, 2023

[Japan GAAP]

May 15, 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 Executive Officer Tel: [phone]
Scheduled Date of Ordinary General Meeting of Shareholders:	June 28, 2023
Scheduled Date of Dividend Payments Commencement:	June 29, 2023
Scheduled Date of Securities Report Filing:	June 28, 2023
Supplementary Documents:		Yes
Holding of Financial Results Meeting:		Yes

(Note: Amounts less than one million of yen have been rounded down.)

1. Consolidated Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)

(1) Consolidated Operating Results			(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	%
Fiscal year ended March 31, 2023	131,054	17.2	1,829		(8.9)	1,787		(5.1)	1,769	8.0
Fiscal year ended March 31, 2022	111,829	―	2,008		(44.7)	1,882		(49.1)	1,638	(19.1)

(Note) Comprehensive income	Fiscal year ended March 31, 2023
	Fiscal year ended March 31, 2022

:	2,204	millions of yen	(7.1)	%
:	2,058	millions of yen	(52.4)	%

		Net income	Diluted net income			Ratio of	Ratio of
		Return on equity	ordinary profit	operating profit
		per share	per share
				to total assets	to net sales
		Yen		Yen		%	%	%
Fiscal year ended March 31, 2023		144.29		―		7.0	2.7	1.4
Fiscal year ended March 31, 2022		132.95		―		6.9	3.1	1.8
(Reference) Equity in earnings of affiliates	Fiscal year ended March 31, 2023	: 55 millions of yen
		Fiscal year ended March 31, 2022	: (152) millions of yen

*"Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29) has been adopted since the beginning of the previous consolidated fiscal year. Figures for the fiscal year ended March 31, 2022 are stated after the application of the new accounting standard, and about net sales, the ratio of figures changes from the previous fiscal year is not indicated.

(2) Consolidated Financial Position

			Total assets			Net assets		Equity ratio		Net assets per share
					Millions of yen		Millions of yen			%			Yen
March 31, 2023					69,412				25,929			37.4			2,114.55
March 31, 2022					60,929				24,512			40.2			2,000.04
(Reference) Equity capital	March 31, 2023	:	25,929 millions of yen
	March 31, 2022	:	24,512 millions of yen
(3) Consolidated Cash Flows
		Cash flows from			Cash flows from	Cash flows from		Cash and cash
						equivalents
		operating activities			investing activities	financing activities
					at the end of period
					Millions of yen		Millions of yen	Millions of yen			Millions of yen
Fiscal year ended March 31, 2023				(1,719)				1,257			632			8,352
Fiscal year ended March 31, 2022				(7,084)				622			(481)			8,078
2. Dividends
					Annual dividend per share		Total		Payout		Dividend rate to
		1Q			2Q	3Q	Fiscal		Annual	cash		ratio		net assets
				year end		dividends		(Consolidated)	(Consolidated)
		Yen		Yen		Yen	Yen		Yen	Millions of yen				%	%
Fiscal year ended March 31, 2022		-		0.00	-	65.00		65.00	796				48.9	3.4
Fiscal year ended March 31, 2023		-		0.00	-	73.00		73.00	895				50.6	3.5
Fiscal year ending			-		0.00	-	80.00		80.00					50.3
March 31, 2024 (Forecast)
*The year-end dividend per share for the fiscal year ended March 31, 2023 is changed from 70.00 yen to 73.00 yen.

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	Net income
		to owners
			per share
								of parent
	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

－ 1 ー

* Notes

(1)	Changes in Significant Subsidiaries During the Period
	(Changes in Specified Subsidiaries Associated with Changes in the Scope of Consolidation) : No
(2)	Changes in Accounting Policies and Estimates, and Retrospective Restatement
	ⅰ Changes in accounting policies due to revisions of accounting standards and other regulations : No

1. ⅱ Changes in accounting policies other than in (ⅰ) : No

   ⅲ Changes in accounting estimates : No

   ⅳ Retrospective restatement : No

2. Number of Shares Issued and Outstanding (Common Stock)
   ⅰ Number of shares issued and outstanding at the end of period (including treasury stock)

March 31, 2023

12,629,942 shares

March 31, 2022

12,629,942 shares

• Number of treasury stock at the end of period

March 31, 2023

367,565 shares

March 31, 2022

373,684 shares

• Average number of shares during the period

Year ended March 31, 2023

12,260,615 shares

Year ended March 31, 2022

12,324,556 shares

[Reference] Summary of Non-Consolidated Results

Non-Consolidated Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)

(1) Non-Consolidated Operating Results				(Percentage figures represent changes from the same period of the previous year.)
		Net sales		Operating profit		Ordinary profit		Profit
		Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%
Fiscal year ended March 31, 2023		68,088		25.4	915		(2.6)	1,179		(9.2)	1,409	(35.1)
Fiscal year ended March 31, 2022		54,307		―	940		(66.3)	1,299		(53.1)	2,171	23.8
		Net income		Diluted net income
		per share		per share
				Yen			Yen
Fiscal year ended March 31, 2023				114.96			―
Fiscal year ended March 31, 2022				176.16			―

*"Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29) has been adopted since the beginning of the previous fiscal year. Figures for the fiscal year ended March 31, 2022 are stated after the application of the new accounting standard, and about net sales, the ratio of figures changes from the previous fiscal year is not indicated.

(2) Non-Consolidated Financial Position

			Total assets		Net assets	Equity ratio	Net assets per share
				Millions of yen		Millions of yen	%	Yen
March 31, 2023					45,170		18,524	41.0	1,510.66
March 31, 2022					41,721		18,140	43.5	1,480.13
(Reference) Equity capital	March 31, 2023	:	18,524	millions of yen
	March 31, 2022	:	18,140	millions of yen

• This financial report is out of scope of the audit 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, the company do not constitute a guarantee that they will be realized. Actual results could differ significantly from forecasts due to a variety of factors.

－ 2 ー

Consolidated Financial Statements

(1)Consolidated Balance Sheets

		(Millions of yen)
	Previous fiscal year	Current fiscal year
	(March 31,2022)	(March 31,2023)
Assets
Current assets
Cash and deposits	8,078	8,352
Notes receivable-trade	1,649	1,486
Electronically recorded monetary claims-operating	1,989	2,118
Accounts receivable-trade	24,703	31,798
Merchandise	8,960	10,179
Goods in transit	677	1,041
Raw materials	121	164
Other	2,960	2,958
Allowance for doubtful accounts	(175)	(450)
Total current assets	48,963	57,650
Non-current assets
Property, plant and equipment
Buildings and structures	3,248	3,250
Accumulated depreciation	(2,465)	(2,493)
Buildings and structures, net	783	756
Machinery, equipment and vehicles	2,133	2,148
Accumulated depreciation	(2,116)	(2,122)
Machinery, equipment and vehicles, net	17	26
Tools, furniture and fixtures	443	411
Accumulated depreciation	(358)	(328)
Tools, furniture and fixtures, net	85	82
Land	2,393	2,365
Leased assets	516	1,016
Accumulated depreciation	(260)	(506)
Leased assets, net	256	510
Construction in progress	122	―
Total property, plant and equipment	3,659	3,741
Intangible assets
Good will	436	379
Leased assets	187	111
Other	112	140
Total intangible assets	736	631
Investments and other assets
Investment securities	5,716	5,483
Investments in capital	791	869
Long-term loans receivable	12	7
Deferred tax assets	55	97
Net defined benefit asset	496	420
Other	608	585
Allowance for doubtful accounts	(111)	(74)
Total investments and other assets	7,570	7,389
Total non-current assets	11,965	11,761
Total assets	60,929	69,412

－ 3 ー

		(Millions of yen)
	Previous fiscal year	Current fiscal year
	(March 31,2022)	(March 31,2023)
Liabilities
Current liabilities
Notes and accounts payable-trade	18,514	23,959
Short-term loans payable	10,919	12,821
Current portion of long-term loans payable	90	83
Lease obligations	106	196
Income taxes payable	123	341
Contract liabilities	780	620
Provision for bonuses	448	486
Provision for directors' bonuses	32	33
Provision for loss on head office relocation	30	―
Other	3,190	2,914
Total current liabilities	34,239	41,456
Non-current liabilities
Long-term loans payable	1,236	1,153
Lease obligations	201	381
Deferred tax liabilities	654	411
Net defined benefit liability	76	72
Asset retirement obligations	8	7
Total non-current liabilities	2,177	2,026
Total liabilities	36,416	43,482
Net assets
Shareholders' equity
Capital stock	7,186	7,186
Capital surplus	855	859
Retained earnings	14,405	15,377
Treasury stock	(291)	(287)
Total shareholders' equity	22,154	23,135
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,926	1,725
Deferred gains or losses on hedges	17	(15)
Foreign currency translation adjustment	295	1,053
Remeasurements of defined benefit plans	119	31
Total accumulated other comprehensive income	2,358	2,793
Total net assets	24,512	25,929
Total liabilities and net assets	60,929	69,412

－ 4 ー

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

Consolidated Statements of Income

		(Millions of yen)
	Previous fiscal year	Current fiscal year
	(April 1,2021-	(April 1,2022-
	March 31,2022)	March 31,2023)
Net sales	111,829	131,054
Cost of sales	98,886	117,033
Gross profit	12,942	14,020
Selling, general and administrative expenses
Haulage and warehousing expenses	1,370	1,366
Sales related expenses	1,644	1,844
Provision of allowance for doubtful accounts	(17)	238
Directors' compensations, salaries and allowances	2,743	2,821
Employees' bonuses	366	397
Provision for bonuses	441	471
Provision for directors' bonuses	32	33
Retirement benefit expenses	111	92
Other salaries	793	748
Depreciation	270	323
Other	3,175	3,853
Total selling, general and administrative expenses	10,934	12,190
Operating profit	2,008	1,829
Non-operating income
Interest income	60	47
Dividends income	62	74
Land and house rent received	6	5
Share of profit of entities accounted for using equity method	8	143
Gain on forgiveness of debt	―	54
Other	107	140
Total non-operating income	246	466
Non-operating expenses
Interest expenses	133	197
Share of loss of entities accounted for using equity method	161	88
Foreign exchange losses	36	157
Other	39	65
Total non-operating expenses	371	508
Ordinary profit	1,882	1,787

－ 5 ー