Komori : 3Q ended Dec. 31, 2022

Consolidated Business Results for the Nine Months Ended December 31, 2022 REPORTED BY KOMORI CORPORATION (Japanese GAAP)

January 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, 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 Third Quarter (April 1, 2022 to December 31, 2022)

(1) Results of operations				(In millions of yen, rounded down)
		Nine months ended	%	Nine months ended	%
		December 31, 2022		December 31, 2021
Net sales		66,498	4.6	63,546	23.8
Operating income		2,662	119.2	1,214	-
Ordinary income		3,604	85.6	1,941	-
Profit attributable to owners of parent		2,839	(34.9)	4,364	-
						(Yen)
Basic earnings per share		52.08		78.10
Diluted earnings per share			-		-
Notes:
1. Comprehensive income :			(41.0) %
Nine months ended December 31, 2022:	3,177 million
Nine months ended December 31, 2021:	5,386 million yen	-	%

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)
		December 31, 2022		March 31, 2022
Total assets		158,535		157,081
Total net assets		103,490		103,382
Equity ratio (%)		65.2		65.8
Reference:		103,353 million yen
Equity as of:	December 31, 2022:
	March 31, 2022:	103,286 million yen

2. Dividends

					(Yen)
			Fiscal year ended	Fiscal year ending	Fiscal year ending
			March 31, 2022	March 31, 2023	March 31, 2023
					(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		41.00	-	25.00
	Annual cash dividends		56.00	-	40.00
Note: Revision to the latest dividend forecast announced in May 2022: Yes

(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, 2023 (April 1, 2022 to March 31, 2023)

(In millions of yen, rounded down)

		Fiscal year ending	%
		March 31, 2023
	Net sales	98,000	11.8
	Operating income	4,400	94.0
	Ordinary income	5,400	58.4
	Profit attributable to owners of parent	4,200	(31.8)
			(Yen)
	Basic earnings per share	77.03
	Notes:

1. Revision to the latest forecast of consolidated business results announced in October 2022: 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:	Yes
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:

December 31, 2022:	58,890,740 shares
March 31, 2022:	58,292,340 shares
2. Number of treasury shares as of:
December 31, 2022:	2,368,960 shares
March 31, 2022:	3,768,240 shares

3. Average number of shares during the period

Nine months ended December 31, 2022: 54,522,203 shares

Nine months ended December 31, 2021: 55,891,115 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 February 3, 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
(3)	Consolidated Operating Results Forecasts and Other Information	P. 7
	on the Future Outlook
2. Consolidated Financial Statements	P. 8
(1)	Consolidated Balance Sheets	P. 8
(2) Consolidated Statements of Income and Consolidated Statements of
	Comprehensive Income	P. 10
	Consolidated Statements of Income
	For the nine months ended December 31, 2022 and 2021	P. 10
	Consolidated Statements of Comprehensive Income
	For the nine months ended December 31, 2022 and 2021	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
	(Changes in Accounting Policies)	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

Consolidated net sales during the first nine months of the fiscal year under review amounted to ¥66,498 million, representing a 4.6% increase from the same period of the previous fiscal year. This was despite ongoing uncertainty regarding the global economic outlook due to steep inflation triggered by growing geopolitical risks as well as repercussions of China's "zero-COVID" policy, and the widespread shortages of semiconductor and other parts supply resulting from the concentration of demand on the back of the normalization of economic activities in many countries. An overview of consolidated net sales by region is set out below.

Overview of Consolidated Net Sales by Region

(In millions of yen)

		Nine Months Ended	Nine Months Ended	Increase /
		December 31, 2021	December 31, 2022	(Decrease)
				(%)
Net sales	63,546	66,498	4.6%
	Japan	15,976	21,555	34.9%
Breakdown	North America	5,817	5,171	(11.1%)
	Europe	15,005	16,821	12.1%
	Greater China	16,324	11,190	(31.4%)
	Other Regions	10,422	11,759	12.8%

Domestic Sales

In the domestic market, the relaxation of movement restrictions previously in place to prevent the spread of COVID-19, along with rapid recovery in inbound tourism demand, resulted in a growing sense of labor shortages. Against this backdrop, printing companies remained active in executing investment for the purpose of improving productivity, increasing efficiency and otherwise rationalizing their operations in order to counter current surges in energy costs and rises in prices of printing supplies. Komori received a robust volume of orders for sheet-fed offset presses thanks primarily to the positive effect of its marketing activities focused on delivering proposals designed to enhance ROI via the use of "advance" models. Moreover, the Company secured a growing volume of orders for web offset and security printing presses. In addition, Komori recorded higher sales from maintenance, facility improvement and other services as its solutions proposals attracted immense customer interest. Consequentially, domestic sales increased 34.9% year on year to ¥21,555 million.

North America

In North America, economies remained on a recovery track thanks to the post-pandemic

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

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Komori Corporation

normalization of economic activities. While printing companies were still slow to make investment decisions in light of steep inflation and interest rate hikes, demand associated with capital expenditures has nevertheless proven robust, causing the volume of orders received by Komori to recover. However, the Company's regional sales for the first nine months of the fiscal year under review decreased 11.1% year on year to ¥5,171 million, with a majority of orders received in the latter part of this period.

Europe

Komori benefitted from post-pandemic recovery in business sentiment in favor of undertaking capital expenditure, which resulted in significant growth in sales in France, Italy and elsewhere, despite the impact of steep inflation, including surging energy prices, on the back of growing geopolitical risks. Taking these and other factors into account, overall net sales in this region increased 12.1% year on year to ¥16,821 million.

Greater China

In Greater China, economies stagnated due to the repercussions of China's "zero-COVID" policy aimed at countering resurgences of the pandemic, while some printing companies postponed capital expenditures due in part to fluctuations in exchange rates. Moreover, the repeated cycle of imposing and lifting lockdowns was still in place in the third quarter of the fiscal year under review, negatively affecting the Komori Group's sales activities and logistics operations. Consequentially, overall net sales in this region declined 31.4% year on year to ¥11,190 million.

Other Regions

Other Regions include ASEAN, India and Oceania as well as Central and South America. In these regions, the volume of orders received for sheet-fed offset presses continued to increase thanks to recovery in demand from previous stagnation under the influence of the COVID-19 pandemic. As a result, overall net sales in Other Regions amounted to ¥11,759 million, up 12.8% year on year.

Highlights in the first nine months of the fiscal year under review include Komori's participation in the IGAS 2022 International Graphic Arts Show held at Tokyo Big Sight. This event is held once every four years, with the most recent round spanning five days from November 24 to 28, 2022. Under the banner of "Connected Automation-Opening the Door for Production Innovation," the Company earned highly favorable reviews from attendees through the demonstration of solutions designed to update frontline printing operations via digital transformation (DX) to address issues customers are now confronting. In light of the recent lifting of pandemic-related movement restrictions, the IGAS 2022 was a roaring success as it has provided a much-awaited physical venue for large-scale exhibitions, which, in turn, attracted a great number of attendees, including people from India, ASEAN regions and other countries overseas, as well as those from all across Japan.

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

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