Komori : 1Q ended June. 30, 2023

Consolidated Business Results for the Three Months Ended June 30, 2023 REPORTED BY KOMORI CORPORATION (Japanese GAAP)

July 31 2023

Company name:	KOMORI CORPORATION
Representative:	Mr. Satoshi Mochida
	Representative Director, President and CEO
Securities code:	6349 (Tokyo Stock Exchange)
Contact:	Mr. Iwao Hashimoto
	Director, Senior Operating Officer
	Phone: [phone]
	URL (https://www.komori.com)

Preparation of supplementary materials for quarterly financial results: Yes

Holding of presentation meeting for quarterly financial results: Yes (for financial analysts/investors)

1. Consolidated Business Results for the First Quarter (April 1, 2023 to June 30, 2023)

(1) Results of operations			(In millions of yen, rounded down)
	Three months ended	%	Three months ended	%
	June 30, 2023			June 30, 2022
Net sales		19,369		1.0	19,186	3.0
Operating income (loss)		(698)		-	250	-
Ordinary income		513		(59.4)	1,265	-
Profit attributable to owners of parent		15		(98.4)	972	-
						(Yen)
Basic earnings per share		0.28			17.84
Diluted earnings per share		-			-
Notes:
1. Comprehensive income:
Three months ended June 30, 2023: 2,079 million yen	30.1	%
Three months ended June 30, 2022: 1,598 million yen	670.4	%

2. Percentage figures accompanying consolidated net sales indicate the percentage increase/decrease from the corresponding period of the previous fiscal year.

(2) Financial position			(In millions of yen, rounded down)
		June 30, 2023		March 31, 2023
Total assets		166,184		165,523
Total net assets		106,313		107,133
Equity ratio (%)		64.0		64.6
Reference:		106,313 million yen
Equity as of:	June 30, 2023:
	March 31, 2023:	106,965 million yen

2. Dividends

				(Yen)
		Fiscal year ended	Fiscal year ending	Fiscal year ending
		March 31, 2023	March 31, 2024	March 31, 2024
				(Forecast)
Cash dividends per share
	First quarter period-end dividends	-	-	-
	Second quarter period-end dividends	15.00	-	15.00
	Third quarter period-end dividends	-	-	-
	Year-end dividends	30.00	-	15.00
	Annual cash dividends	45.00	-	30.00
Notes:
Revision to the latest dividend forecast announced in May 2023: None

(English translation of "KESSAN TANSHIN" originally issued in Japanese.)

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Komori Corporation

3. Forecast of Consolidated Business Results for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(In millions of yen, rounded down)

	Six months ending	%	Fiscal year ending	%
	September 30, 2023		March 31, 2024
Net sales	49,000	6.3	102,000	4.2
Operating income	300	(89.0)	3,300	(42.3)
Ordinary income	300	(92.7)	3,500	(47.1)
Profit attributable to owners of parent	100	(96.9)	2,600	(54.5)
		(Yen)		(Yen)
Basic earnings per share	1.83		47.69
Notes:

1. Revision to the latest forecast of consolidated business results announced in May 2023: No
2. Percentage figures in the above table indicate the percentage increase/decrease from the corresponding period of the previous fiscal year.

*Notes

(1) Changes in significant subsidiaries during the period under review: No

Note: Indicates changes in the scope of consolidation accompanying changes in specified subsidiaries during the period under review

1. Adoption of the simplified accounting and special accounting methods for preparing quarterly consolidated financial statements: No
2. Changes in accounting policies; changes in accounting estimates; restatements

1.	Changes in accounting policies accompanying revisions to accounting standards:	No
2.	Changes other than those in item 1. above:	No
3.	Changes in accounting estimates:	No
4.	Restatements:	No

1. Number of shares outstanding (common stock)

1. Number of shares outstanding (including treasury stock) as of:

	June 30, 2023:	56,890,740 shares
	March 31, 2023:	56,890,740 shares
2.	Number of treasury shares as of:
	June 30, 2023:	2,953,980 shares
	March 31, 2023:	2,368,980 shares
3.	Average number of shares during the period
	Three months ended June 30, 2023:	54,309,760 shares
	Three months ended June 30, 2022:	54,522,564 shares

• This quarterly financial flash report (KESSAN TANSHIN) is not subject to quarterly review by certified public accountants or auditing firms as specified under the Financial Instruments and Exchange Law of Japan.
• Disclaimer regarding the appropriate use of performance forecasts and other remarks

The aforementioned forecasts are based on management's assumptions and beliefs held in light of information currently available to it and accordingly involve risks and uncertainties that may cause actual results to differ materially from forecasts. These uncertainties include, but are not limited to, changes in economic conditions, market trends, changes in foreign currency exchange rates and other factors.

Materials for the summary result presentation in Japanese will be disclosed through the Tokyo Stock Exchange's Timely Disclosure Network, known as TDnet, on August 2, 2023. The same materials will be posted on Komori's website. Also, English translations of these materials will be posted on the Company's website at https://www.komori.com/ir/en/

(English translation of "KESSAN TANSHIN" originally issued in Japanese.)

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		Komori Corporation
Index
1. Qualitative Information Regarding the Quarterly Financial Results	P. 4
(1)	Overview of Consolidated Business Results	P. 4
(2)	Financial Condition	P. 6

1. Consolidated Operating Results Forecasts and Other Information

on the Future Outlook	P. 7
2. Consolidated Financial Statements	P. 8
(1) Consolidated Balance Sheets	P. 8

1. Consolidated Statements of Income and Consolidated Statements of

Comprehensive Income	P. 10
Consolidated Statements of Income	P. 10
For the three months ended June 30, 2023 and 2022
Consolidated Statements of Comprehensive Income
For the three months ended June 30, 2023 and 2022	P. 11
(3) Notes Regarding Quarterly Consolidated Financial Statements	P. 12
(Notes on Premise as a Going Concern)	P. 12
(Notes in the Case of a Significant Change in Shareholders' Equity)	P. 12

(English translation of "KESSAN TANSHIN" originally issued in Japanese.)

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Komori Corporation

1. Qualitative Information Regarding the Quarterly Financial Results

(1) Overview of Consolidated Business Results

In October 2023, Komori Corporation will celebrate the centennial of its founding. In anticipation of this landmark celebration, Komori has defined its Purpose (reason for being) as "Delivering Kando-customer satisfaction beyond expectations-with the power of print technology to support society." Print technology is capable of expanding the potential of both print media and digital media, enhancing the economic efficiency and trustworthiness of social activities, and contributing to the reduction of environmental burden. The Komori Group will continue advancing this technology in order to better contribute to society and grow into a corporate group that transcends the expectations of all its stakeholders. Based on the above Purpose, the Company has also formulated "KOMORI2030," a long-term vision to be achieved by 2030. Komori will promote business management aimed at realizing this long-term vision over the course of the Sixth Medium-Term Management Plan, which is currently under way, as well as the subsequent Seventh and Eighth Medium-Term Management Plans.

During the first three months of the fiscal year under review, the outlook for the global economy remained uncertain due to the prolongation of the Ukraine situation, along with worldwide inflation and the resulting tightening of monetary policies in major countries. Against this backdrop, consolidated net sales amounted to ¥19,369 million, representing a 1.0% increase from the same period of the previous fiscal year. An overview of consolidated net sales by region is set out below.

Overview of Consolidated Net Sales by Region

(In millions of yen)

		Three Months Ended	Three Months Ended	Increase /
		June 30, 2022	June 30, 2023	(Decrease)
				(%)
Net sales	19,186	19,369	1.0
	Japan	4,696	5,243	11.6
Breakdown	North America	1,699	1,764	3.8
Europe	4,620	3,979	(13.9)
	Greater China	4,707	4,495	(4.5)
	Other Regions	3,462	3,886	12.3

Domestic Sales

In the domestic market, the lifting of movement restrictions aimed at countering the

(English translation of "KESSAN TANSHIN" originally issued in Japanese.)

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Komori Corporation

spread of COVID-19 infections resulted in recovery in personal consumption and inbound tourism demand, leading to modest yet constant economic recovery. Amidst these circumstances, there has been an ongoing trend toward executing investment aimed at improving productivity, enhancing efficiency and otherwise streamlining printing operations in light of surging labor costs, worker shortages, constantly high energy prices and rising prices of printing supplies. To accommodate this trend, Komori engaged in marketing activities focused on delivering proposals designed to enhance ROI via the use of "advance" models. As a result, the volume of orders received for sheet-fed offset presses remained robust, with domestic sales increasing 11.6% year on year to ¥5,243 million.

North America

In North America, the pace of economic recovery was dragged down by steep inflation and high interest rates. However, on the back of ongoing improvement in employment and strong demand associated with capital expenditure, net sales in this region amounted to ¥1,764 million, an increase of 3.8% from the same period of the previous fiscal year.

Europe

In Europe, the volume of orders received remained robust despite the prolongation of the Ukraine situation and ongoing fallout from inflation. However, sales recorded for products delivered in the first three months were lower than those recorded in the same period of the previous fiscal year. With the schedule for product delivery concentrated in the second quarter, first-quarter net sales in this region decreased 13.9% year on year to ¥3,979 million.

Greater China

In Greater China, personal consumption continued to recover after the lifting of the "zero- COVID" policy. Having participated in Print China 2023 (5th International Printing Technology Exhibition of China) held in April in Guangdong, Komori was able to confirm the robustness of printing machinery demand. On the other hand, there is a trend toward postponing capital expenditure as the economic recovery that began in January 2023 has been halted by supply chain reorganization undertaken by overseas corporations, unfavorable foreign exchange fluctuations and the resulting depreciation of Chinese yuan. Consequentially, net sales in this region decreased 4.5% year on year to ¥4,495 million.

(English translation of "KESSAN TANSHIN" originally issued in Japanese.)

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