Micronics Japan : FY2023 2Q 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 Six Months Ended June 30, 2023 (Based on Japanese GAAP)

August 10, 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:	August 14, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2023 (from January 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
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Six months ended June 30, 2023	16,985	(13.2)	1,750	(57.3)	1,569	(64.7)	1,143	(60.2)
Six months ended June 30, 2022	19,570	11.5	4,101	6.8	4,445	9.9	2,873	2.9

	Earnings per share	Diluted earnings per share
	Yen		Yen
Six months ended June 30, 2023	29.64		29.64
Six months ended June 30, 2022	74.69		74.56
(2) Consolidated financial position
	Total assets		Net assets	Equity ratio
	Millions of yen		Millions of yen	%
As of June 30, 2023	50,922		38,202	75.0
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	0.00
Year ending December 31, 2023 (Forecast)			0.00	18.00

Total

Yen 59.00

18.00

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
Nine months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
26,600	(11.7)	2,400	(61.9)	2,100	(70.5)	1,400	(68.5)	36.30
September 30, 2023
Full year	36,400	(17.9)	3,400	(63.1)	3,200	(69.3)	2,300	(69.5)	59.63

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 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 June 30, 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 June 30, 2023	1,441,274	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)
	Six months ended June 30, 2023	38,570,398	shares	Six months ended June 30, 2022	38,475,477	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of December 31, 2022	As of June 30, 2023
Assets
Current assets
Cash and deposits	21,552	18,245
Notes and accounts receivable - trade, and contract assets	8,291	6,432
Finished goods	889	889
Work in process	3,841	3,399
Raw materials and supplies	2,922	3,020
Other	889	1,019
Allowance for doubtful accounts	(40)	(41)
Total current assets	38,347	32,965
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,844	3,912
Machinery, equipment and vehicles, net	3,778	3,730
Other, net	5,557	7,372
Total property, plant and equipment	13,179	15,015
Intangible assets	990	967
Investments and other assets
Investment securities	721	902
Retirement benefit asset	110	99
Other	1,238	1,190
Allowance for doubtful accounts	(202)	(218)
Total investments and other assets	1,867	1,973
Total non-current assets	16,038	17,956
Total assets	54,385	50,922
Liabilities
Current liabilities
Notes and accounts payable - trade	5,352	4,043
Short-term borrowings	834	761
Income taxes payable	1,321	524
Provision for bonuses	1,222	850
Provision for bonuses for directors (and other officers)	398	38
Provision for product warranties	270	290
Other	3,740	3,766
Total current liabilities	13,139	10,275
Non-current liabilities
Long-term borrowings	439	228
Retirement benefit liability	2,104	2,150
Other	70	66
Total non-current liabilities	2,614	2,444
Total liabilities	15,754	12,720

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		(Millions of yen)
	As of December 31, 2022	As of June 30, 2023
Net assets
Shareholders' equity
Share capital	5,018	5,018
Capital surplus	6,005	6,029
Retained earnings	27,194	26,063
Treasury shares	(1,312)	(1,275)
Total shareholders' equity	36,905	35,835
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	322	454
Foreign currency translation adjustment	1,258	1,857
Remeasurements of defined benefit plans	76	54
Total accumulated other comprehensive income	1,657	2,366
Share acquisition rights	68	-
Total net assets	38,631	38,202
Total liabilities and net assets	54,385	50,922

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

Consolidated statements of income (cumulative)

		(Millions of yen)
	Six months ended	Six months ended
	June 30, 2022	June 30, 2023
Net sales	19,570	16,985
Cost of sales	10,771	9,832
Gross profit	8,799	7,153
Selling, general and administrative expenses	4,697	5,402
Operating profit	4,101	1,750
Non-operating income
Interest income	20	32
Dividend income	4	7
Rental income	26	30
Received incentive	29	52
Refund income	15	-
Foreign exchange gains	229	-
Other	27	26
Total non-operating income	353	148
Non-operating expenses
Interest expenses	3	3
Commission expenses	5	202
Foreign exchange losses	-	121
Other	1	2
Total non-operating expenses	10	329
Ordinary profit	4,445	1,569
Extraordinary income
Gain on sale of non-current assets	2	2
Gain on reversal of share acquisition rights	0	56
Total extraordinary income	2	59
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	4,446	1,624
Income taxes - current	1,544	421
Income taxes - deferred	28	59
Total income taxes	1,572	481
Profit	2,873	1,143
Profit attributable to owners of parent	2,873	1,143

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