Hosiden : Financial Results for the First Three Months Ended June 30, 2023

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

August 9, 2023

Consolidated Financial Results

for the First Three Months Ended June 30, 2023

(Under Japanese GAAP)

Company name:	Hosiden Corporation
Listing:	Tokyo Stock Exchange
Securities code:	6804
URL:	https://www.hosiden.com/en/
Representative:	Kenji Furuhashi, President and CEO
Inquiries:	Takafumi Tsuru, Senior Executive Officer and General Manager of President Office
Telephone:	[phone]

Scheduled date to file quarterly securities report:	August 10, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:	None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the first three months ended June 30, 2023 (from April 1, 2023 to June 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
Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2023		56,273	(21.0)	2,596	(61.5)	5,460	(50.5)	3,658	(50.7)
June 30, 2022		71,230	39.4	6,744	129.5	11,040	260.1	7,423	234.4
(Note) Comprehensive income	For the first three months ended June 30, 2023	5,185 million yen	[(36.5)%]
		For the first three months ended June 30, 2022	8,171 million yen	[165.9%]
	Basic earnings per	Diluted earnings per
		share		share
Three months ended			Yen		Yen
June 30, 2023			69.79		64.07
June 30, 2022			135.09		124.88

(2) Consolidated financial position

	Total assets	Net assets
As of	Millions of yen	Millions of yen
June 30, 2023	180,512	126,564
March 31, 2023	179,993	126,753
(Reference) Equity
As of June 30, 2023	126,564 million yen
As of March 31, 2023	126,753 million yen

Equity-to-asset ratio

%

70.1

70.4

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended	-	23.00	-	48.00	71.00
March 31, 2023
Fiscal year ending	-
March 31, 2024
Fiscal year ending		24.00	-	24.00	48.00
March 31, 2024
(Forecast)

(Note) Revision of cash dividend forecast most recently announced: None

3. Consolidated financial results forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes.)

								Profit attributable to	Basic
	Net sales		Operating profit	Ordinary profit	earnings per
		owners of parent
								share
	Millions of		%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen		yen	yen	yen
Six months ending	130,000		7.7	5,000	(50.7)	5,500	(65.8)	4,300	(60.7)	80.71
September 30, 2023
Full year	255,000		(8.0)	10,000	(36.5)	11,000	(42.1)	8,500	(32.7)	159.54

(Note) Revision of financial results forecast most recently announced: None

Financial results forecasts are based on the assumption of a foreign exchange rate of 134 yen per U.S. dollar, and remain unchanged.

Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None

Newly included:	- companies (Company name)
Excluded:	- companies (Company name)

1. Application of specific accounting for preparing quarterly consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2023

As of March 31, 2023

63,010,084 shares

63,010,084 shares

(ii) Number of treasury shares at the end of the period

As of June 30, 2023

As of March 31, 2023

11,331,898 shares

9,731,778 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2023

Three months ended June 30, 2022

52,419,900 shares

54,955,029 shares

Notes:1. Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.

2. Explanation on proper use of earnings forecasts, and other special matters

The forward-looking statements about the future financial results of this document are future forecasts based on the judgment of Hosiden Corporation (the "Company") taking into account the information currently available, and the Company does not intend to make a warranty of their achievement. These forward-looking statements contain various potential risks and uncertainties, and actual results may be materially different from the forward-looking statements due to various material factors. Therefore, the Company asks not to depend highly on these forward-looking statements.

Hosiden Corporation (6804) Consolidated Financial Results for the First Three Months Ended June 30, 2023

Contents of the attachment
	Index
1. Qualitative information regarding financial results for the first three months ended June 30, 2023	2
(1)	Explanation of operating results	2
(2)	Explanation of financial position	2
(3)	Information regarding consolidated earnings forecasts and other forward-looking statements	3
2. Quarterly consolidated financial statements and significant notes thereto	4
(1)	Quarterly consolidated balance sheets	4
(2)	Quarterly consolidated statements of income and quarterly consolidated statements of
	comprehensive income	6
(3)	Quarterly consolidated statements of cash flows	8
(4)	Notes to quarterly consolidated financial statements	9
	Notes on going concern assumption	9
	Notes on significant changes in the amount of shareholders' equity	9
	Segment information, etc	9

- 1 -

Hosiden Corporation (6804) Consolidated Financial Results for the First Three Months Ended June 30, 2023

1. Qualitative information regarding financial results for the first three months ended June 30, 2023

1. Explanation of operating results
   During the first three months of the fiscal year ending March 31, 2024 (from April 2023 to June 2023), despite continued growth in the world economy, the pace of that growth slowed. Rising inflation in other countries has led to the adoption of monetary tightening policies, but the Japanese yen has weakened due to differences in monetary policy. Even though the financial instability seen in the U.S. at the end of the previous fiscal year is showing signs of stabilizing, geopolitical risks, such as issues between Russia and Ukraine, continue and uncertainty over the world economic outlook, including sky-high prices for grain and other food, may intensify even further.
   In the electronic component industry to which the Company group (the "Group") belongs, semiconductor shortages in the automotive-related market have eased and sales are recovering. In contrast, consumer demand in the mobile communications-related market remains stagnant and sales are sluggish.
   Under such circumstances, the Group's net sales increased for the AV equipment-related business and the home appliances-related business, but decreased for the amusement-related business. Net sales of the display components segment in the automotive-related business also fell sharply. As a result, net sales was down overall.
   With regard to profits, operating profit in the same period last year was significantly boosted by the yen's sudden depreciation. In the period under review, however, profit declined mainly because of the persistently high prices of raw materials and semiconductors, coupled with lower sales. And despite the yen's weakness, it did little to boost the bottom line.
   As a result, during the period under review, the Group posted consolidated net sales of 56,273 million yen (down 21.0% year on year), operating profit of 2,596 million yen (down 61.5% year on year), ordinary profit of 5,460 million yen (down 50.5% year on year) with foreign exchange gains of 2,626 million yen in line with foreign exchange fluctuations, and profit attributable to owners of parent of 3,658 million yen (down 50.7% year on year).
   The net sales and segment profit or loss for the reportable segments are as follows:
   Net sales for the electro-mechanical components segment was 48,559 million yen (down 24.4% year on year) due to a decrease in the amusement-related business, and the segment profit was 1,875 million yen (down 70.6% year on year).
   Net sales for the acoustic components segment was 4,470 million yen (up 13.2% year on year) due to increases in the automotive-related business and the AV equipment-related business while the segment profit was 292 million yen (up 4.9% year on year).
   Net sales for the display components segment was 591 million yen (down 55.2% year on year) due to a decrease in the automotive-related business, and the segment loss was 89 million yen (segment loss of 201 million yen for the previous year).
   Net sales for the applied equipment and other segment was 2,652 million yen (up 50.4% year on year) due to increases in the amusement-related and home appliances-related businesses, and the segment profit was 518 million yen (up 74.5% year on year).
2. Explanation of financial position Assets, liabilities, and net assets
   At the end of the first quarter of the fiscal year ending March 31, 2024, total assets increased 519 million yen from the end of the previous fiscal year to 180,512 million yen mainly due to an increase in inventories despite decreases in trade receivables and securities. Total liabilities increased 707 million yen from the end of the previous fiscal year to 53,947 million yen mainly due to an increase in trade payables despite decreases in repayments of short-term borrowings and income taxes payable.
3. • 2 -