Summary of Consolidated Financial Statements for 2Q of FY2021

*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, 2022

[Japan GAAP]

		November 4, 2021
		Stock Exchange Listing: Tokyo (First Section)
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, General Manager of Corporate Planning Department Tel: [phone]

Scheduled Date of Quarterly Report Filing:	November 9, 2021
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, 2022 (April 1, 2021 to September 30, 2021)

(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, 2021	52,595	―		1,201	(47.8)	1,207	(46.4)	935	(20.5)
Second quarter ended September 30, 2020	55,958	(1.2)		2,301	274.7	2,252	287.1	1,176	103.4
(Note) Comprehensive income	Second quarter ended September 30, 2021	:	2,005	millions of yen	(52.4) %
	Second quarter ended September 30, 2020	:	4,213	millions of yen	847.6 %

	Net income	Diluted net income
	per share	per share
	Yen	Yen
Second quarter ended September 30, 2021	75.51	―
Second quarter ended September 30, 2020	93.90	―

• GSI Creos Corporation has conducted a two-for-one stock split for its common stock effectively on April 1, 2021. Net income per share has been calculated as if the stock split of shares was conducted at the beginning of the previous fiscal year.

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

(2) Consolidated Financial Position
	Total assets		Net assets	Equity ratio
			Millions of yen	Millions of yen	%
September 30, 2021			61,170	24,454	40.0
March 31, 2021			60,465	23,239	38.4
(Reference) Equity capital	September 30, 2021	:	24,454	millions of yen
	March 31, 2021	:	23,239	millions of yen

*"Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29) has been adopted since the beginning of the first quarter of the current consolidated fiscal year. Figures for the second quarter of the fiscal year ending March 2022 are stated after the application of the new accounting standard.

2. Dividends

		Annual dividend per share
	1Q	2Q	3Q	Fiscal year end	Annual
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March 31, 2021	―	0.00	―	60.00	60.00
Fiscal year ending March 31, 2022	―	0.00
Fiscal year ending			―	35.00	35.00
March 31, 2022 (Forecast)
(Note) Revisions to the dividend forecast published most recently	: No

• GSI Creos Corporation has conducted a two-for-one stock split for its common stock effectively on April 1, 2021. The dividend per share for the fiscal year ended March 31, 2021 is the actual amount before the stock split of shares.
  But the dividend per share for the fiscal year ending March 31, 2022 (forecast) is the amount after the stock split.

*Details of the fiscal year end dividend for the fiscal year ending March 31, 2022 (forecast)

Ordinary dividend : 30.00 Yen

Commemorative Dividend for 90th Anniversary of GSI Creos Corporation : 5.00 Yen

－ 1 ー

3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(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	116,000	―	2,000	(44.9)	2,000	(46.0)	1,500	(26.0)	119.55
(Note) Revisions to the consolidated results forecasts published most recently	: No

• "Accounting Standard for Revenue Recognition"（ASBJ Statement No.29）has been adopted from the beginning of the fiscal year ending March 31, 2022. The new accounting standard is applied to the earnings forecast above and about net sales, the ratio of figures changes from the same period of the previous year is not indicated.
• Notes

(1) Changes in Significant Subsidiaries During the Period
(Changes in Specified Subsidiaries Associated with Changes in the Scope of Consolidation)	: No

1. Application of Special Accounting Methods to the Preparation of Quarterly Financial Statements
2. Changes in Accounting Policies and Estimates, and Retrospective Restatement

• Changes in accounting policies due to revisions of accounting standards and other regulations

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

ⅲ Changes in accounting estimates : No

• 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)

September 30, 2021

12,629,942 shares March 31, 2021

• Number of treasury stock at the end of period

September 30, 2021

373,576 shares March 31, 2021

• Average number of shares during the period

• : No

• Yes

12,929,942 shares

382,886 shares

Six months ended September 30, 2021

12,383,076 shares Six months ended September 30, 2020

12,527,240 shares

• GSI Creos Corporation has conducted a two-for-one stock split for its common stock effectively on April 1, 2021. Number of shares issued and outstanding (including treasury stock), number of treasury stock and average number of shares have been calculated as if the stock split of shares was conducted at the beginning of the previous fiscal year.
• 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.

－ 2 ー

Quarterly Consolidated Financial Statements

(1)Quarterly Consolidated Balance Sheets

		(Millions of yen)
	Previous fiscal year	Second quarter,
	current fiscal year
	(March 31, 2021)
	(September 30, 2021)
Assets
Current assets
Cash and deposits	14,594	10,698
Notes and accounts receivable-trade	22,803	25,686
Merchandise	8,534	8,657
Work in process	749	749
Raw materials	124	98
Other	737	2,095
Allowance for doubtful accounts	(158)	(172)
Total current assets	47,387	47,811
Non-current assets
Property, plant and equipment	4,148	3,533
Intangible assets	357	750
Investments and other assets
Investment securities	6,129	7,132
Other	2,442	1,941
Total investments and other assets	8,572	9,074
Total non-current assets	13,077	13,358
Total assets	60,465	61,170
Liabilities
Current liabilities
Notes and accounts payable-trade	18,773	19,339
Short-term loans payable	11,631	11,495
Current portion of long-term loans payable	87	70
Income taxes payable	1,279	317
Provision	560	424
Other	3,543	3,582
Total current liabilities	35,875	35,230
Non-current liabilities
Long-term loans payable	231	196
Retirement benefit liability	90	78
Other	1,028	1,210
Total non-current liabilities	1,350	1,485
Total liabilities	37,225	36,715
Net assets
Shareholders' equity
Capital stock	7,186	7,186
Capital surplus	859	855
Retained earnings	13,485	13,696
Treasury stock	(230)	(291)
Total shareholders' equity	21,301	21,446
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,216	2,856
Deferred gains or losses on hedges	4	10
Foreign currency translation adjustment	(427)	4
Remeasurements of defined benefit plans	144	137
Total accumulated other comprehensive income	1,938	3,008
Total net assets	23,239	24,454
Total liabilities and net assets	60,465	61,170

－ 3 ー

(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, 2020-	(April 1, 2021-
	September 30, 2020)	September 30, 2021)
Net sales	55,958	52,595
Cost of sales	48,341	46,045
Gross profit	7,617	6,549
Selling, general and administrative expenses	5,316	5,348
Operating profit	2,301	1,201
Non-operating income
Interest income	60	29
Dividends income	48	46
Other	76	67
Total non-operating income	185	142
Non-operating expenses
Interest expenses	85	60
Foreign exchange losses	87	48
Other	61	28
Total non-operating expenses	235	137
Ordinary profit	2,252	1,207
Extraordinary income
Gain on sales of non-current assets	－	0
Gain on sale of investment securities	－	30
Gain on sales of investments in capital	－	45
Total extraordinary income	－	76
Extraordinary losses
Impairment loss	328	－
Loss on retirement of non-current assets	3	1
Loss on valuation of investment securities	18	－
Loss on sale of shares of subsidiaries and associates	－	27
Loss on valuation of investments in capital	20	－
Total extraordinary losses	370	29
Income before income taxes	1,881	1,254
Income taxes-current	780	379
Income taxes-deferred	(75)	(59)
Total income taxes	705	319
Profit	1,176	935
Profit attributable to owners of parent	1,176	935

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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, 2020-	(April 1, 2021-
	September 30, 2020)	September 30, 2021)
Profit	1,176	935
Other comprehensive income
Valuation difference on available-for-sale securities	3,129	640
Deferred gains or losses on hedges	0	5
Foreign currency translation adjustment	(93)	431
Remeasurements of defined benefit plans, net of tax	(0)	(6)
Total other comprehensive income	3,036	1,070
Comprehensive income	4,213	2,005
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	4,213	2,005

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