Micronics Japan : FY2023 1Q Financial Results

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Three Months Ended March 31, 2023 (Based on Japanese GAAP)

May 12, 2023

Company name:	MICRONICS JAPAN CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	6871	URL https://www.mjc.co.jp/en/
Representative:	President & CEO	Masayoshi Hasegawa
Inquiries:	Director & Senior Executive Officer,Deputy	Yuki Katayama	TEL [phone]
	General Manager Administration Division
Scheduled date to file Quarterly Securities Report:	May 15, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended March 31, 2023 (from January 1, 2023 to March 31, 2023)

(1) Consolidated operating results (cumulative)				Percentages indicate year-on-year changes
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Three months ended March 31, 2023	9,769	(0.4)	1,974	(8.7)	1,832	(17.3)	1,107	(12.0)
Three months ended March 31, 2022	9,803	13.3	2,163	27.7	2,217	34.1	1,258	23.2

	Earnings per share	Diluted earnings per share
	Yen		Yen
Three months ended March 31, 2023	28.71		28.71
Three months ended March 31, 2022	32.71		32.65
(2) Consolidated financial position
	Total assets		Net assets	Equity ratio
	Millions of yen		Millions of yen	%
As of March 31, 2023	51,194		37,434	73.1
As of December 31, 2022	54,385		38,631	70.9

2. Cash dividends
		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end
	Yen	Yen	Yen	Yen
Year ended December 31, 2022	0.00	0.00	0.00	59.00
Year ending December 31, 2023	0.00
Year ending December 31, 2023 (Forecast)		-	-	-

Total

Yen 59.00

-

3. Forecast of consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
17,200	(12.1)	1,600	(61.0)	1,300	(70.8)	800	(72.2)	20.74
June 30, 2023
Nine months ending	26,600	(11.7)	2,400	(61.9)	2,000	(71.9)	1,200	(73.0)	31.12
September 30, 2023

1

4. Notes

1. Changes in significant subsidiaries during the three months ended March 31, 2023 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of March 31, 2023	40,025,316	shares	As of December 31, 2022	40,025,316	shares
Number of treasury shares at the end of the period
	As of March 31, 2023	1,452,226	shares	As of December 31, 2022	1,481,226	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended March 31, 2023	38,563,921	shares	Three months ended March 31, 2022	38,471,018	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of December 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	21,552	18,335
Notes and accounts receivable - trade, and contract assets	8,291	8,506
Finished goods	889	1,157
Work in process	3,841	3,150
Raw materials and supplies	2,922	2,977
Other	889	667
Allowance for doubtful accounts	(40)	(40)
Total current assets	38,347	34,754
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,844	3,841
Machinery, equipment and vehicles, net	3,778	3,710
Other, net	5,557	6,046
Total property, plant and equipment	13,179	13,598
Intangible assets	990	968
Investments and other assets
Investment securities	721	799
Retirement benefit asset	110	104
Other	1,238	1,172
Allowance for doubtful accounts	(202)	(203)
Total investments and other assets	1,867	1,873
Total non-current assets	16,038	16,440
Total assets	54,385	51,194
Liabilities
Current liabilities
Notes and accounts payable - trade	5,352	4,354
Short-term borrowings	834	650
Income taxes payable	1,321	922
Provision for bonuses	1,222	1,732
Provision for bonuses for directors (and other officers)	398	38
Provision for product warranties	270	295
Other	3,740	3,231
Total current liabilities	13,139	11,225
Non-current liabilities
Long-term borrowings	439	339
Retirement benefit liability	2,104	2,127
Other	70	67
Total non-current liabilities	2,614	2,534
Total liabilities	15,754	13,759

3

		(Millions of yen)
	As of December 31, 2022	As of March 31, 2023
Net assets
Shareholders' equity
Share capital	5,018	5,018
Capital surplus	6,005	6,025
Retained earnings	27,194	26,027
Treasury shares	(1,312)	(1,286)
Total shareholders' equity	36,905	35,784
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	322	382
Foreign currency translation adjustment	1,258	1,201
Remeasurements of defined benefit plans	76	65
Total accumulated other comprehensive income	1,657	1,650
Share acquisition rights	68	-
Total net assets	38,631	37,434
Total liabilities and net assets	54,385	51,194

4

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

		(Millions of yen)
	Three months ended	Three months ended
	March 31, 2022	March 31, 2023
Net sales	9,803	9,769
Cost of sales	5,438	5,059
Gross profit	4,365	4,709
Selling, general and administrative expenses	2,202	2,734
Operating profit	2,163	1,974
Non-operating income
Interest income	4	14
Rental income	13	14
Received incentive	28	52
Refund income	14	-
Other	9	23
Total non-operating income	71	104
Non-operating expenses
Interest expenses	1	1
Commission expenses	5	5
Foreign exchange losses	10	238
Other	0	1
Total non-operating expenses	17	246
Ordinary profit	2,217	1,832
Extraordinary income
Gain on sale of non-current assets	2	0
Gain on reversal of share acquisition rights	0	56
Total extraordinary income	2	57
Extraordinary losses
Loss on sale of non-current assets	1	-
Loss on retirement of non-current assets	0	4
Total extraordinary losses	2	4
Profit before income taxes	2,217	1,885
Income taxes - current	900	707
Income taxes - deferred	58	71
Total income taxes	959	778
Profit	1,258	1,107
Profit attributable to owners of parent	1,258	1,107

5