Ohara : Consolidated Financial Results for the Three Months Ended January 31, 2024

Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Three Months Ended January 31, 2024

[Japanese GAAP]

Company name: OHARA INC.	March 8, 2024
Stock exchange listing: Tokyo
Code number: 5218
URL: https://www.ohara-inc.co.jp
Representative: Hirokazu Saito	President Chief Executive Officer
Contact: Takashi Nakajima	Director Senior Managing Executive Officer

Phone: [phone]

Scheduled date of filing quarterly securities report: March 8, 2024

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Three Months Ended January 31, 2024 (November 1, 2023 to January 31, 2024)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	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	%
January 31, 2024	6,345		(9.9)	366	(60.9)	378	(51.1)	116	(80.7)
January 31, 2023	7,044		5.1	937	25.2	774	(4.5)	603	7.6

(Note) Comprehensive income:	Three months ended January 31, 2024:
	Three months ended January 31, 2023:

¥	545 million	[	-%]
¥	(959) million	[	-%]

	Basic earnings	Diluted earnings per
	per share		share
Three months ended	Yen			Yen
January 31, 2024	4.77			-
January 31, 2023	24.77			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio
As of	Millions of yen		Millions of yen	%
January 31, 2024	61,141			47,348	77.0
October 31, 2023	61,840			47,311	76.1
(Reference) Equity: As of	January 31, 2024:	¥	47,090 million
As of	October 31, 2023:	¥	47,049 million

2. Dividends

				Annual dividends
	1st	2nd			3rd		Year-end	Total
	quarter-end	quarter-end		quarter-end
	Yen		Yen		Yen		Yen	Yen
Fiscal year ended October 31, 2023	-		0.00		-		20.00	20.00
Fiscal year ending October 31, 2024
Fiscal year ending October 31, 2024			0.00		-		23.00	23.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending October 31, 2024(November 1, 2023 to October 31, 2024)

(% indicates changes from the previous corresponding period.)

	Net sales	Operating profit	Ordinary profit	Profit attributable	Basic earnings
	to owners of parent	per share
Six months ending April	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
13,100	(10.0)	800	(49.3)	900	(44.8)	500	(59.0)	20.52
30, 2024
Full year	28,500	1.3	2,700	20.9	2,900	11.4	1,800	14.5	73.88
(Note) Revision to the financial results forecast announced most recently:	Yes
* Notes:
(1) Changes in significant subsidiaries during the three months ended January 31, 2024
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

January 31, 2024:	25,450,000	shares
October 31, 2023:	25,450,000	shares
2) Number of treasury shares at the end of the period:
January 31, 2024:	1,085,507	shares
October 31, 2023:	1,085,507	shares

3) Average number of shares outstanding during the period:
Three months ended January 31, 2024:	24,364,493	shares
Three months ended January 31, 2023:	24,351,393	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

		(Thousands of yen)
	As of October 31, 2023	As of January 31, 2024
Assets
Current assets
Cash and deposits	14,806,248	14,199,041
Notes and accounts receivable - trade	6,718,064	6,337,470
Electronically recorded monetary claims -	1,419,460	1,293,406
operating
Merchandise and finished goods	3,282,428	3,208,481
Work in process	6,845,687	7,177,874
Raw materials and supplies	3,743,883	3,596,951
Other	807,124	500,916
Allowance for doubtful accounts	(39,674)	(49,236)
Total current assets	37,583,221	36,264,904
Non-current assets
Property, plant and equipment
Buildings and structures	14,992,654	15,189,000
Accumulated depreciation	(10,765,911)	(10,924,822)
Buildings and structures, net	4,226,742	4,264,177
Machinery, equipment and vehicles	18,712,598	18,827,897
Accumulated depreciation	(16,147,258)	(16,370,785)
Machinery, equipment and vehicles, net	2,565,340	2,457,111
Tools, furniture and fixtures	12,462,295	12,505,601
Accumulated depreciation	(3,427,140)	(3,463,083)
Tools, furniture and fixtures, net	9,035,154	9,042,518
Land	341,665	342,813
Right of use assets	443,443	467,317
Accumulated depreciation	(166,437)	(184,710)
Right of use assets, net	277,006	282,606
Construction in progress	319,630	416,721
Total property, plant and equipment	16,765,539	16,805,948
Intangible assets	284,064	266,701
Investments and other assets
Investment securities	6,554,742	7,182,404
Retirement benefit asset	386,100	385,779
Deferred tax assets	171,087	141,295
Other	119,424	117,849
Allowance for doubtful accounts	(23,760)	(23,760)
Total investments and other assets	7,207,594	7,803,568
Total non-current assets	24,257,198	24,876,218
Total assets	61,840,420	61,141,123

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		(Thousands of yen)
	As of October 31, 2023	As of January 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade	1,223,348	1,102,750
Electronically recorded obligations - operating	839,107	941,081
Short-term borrowings	4,264,226	4,359,373
Lease liabilities	364,059	305,335
Income taxes payable	353,396	369,267
Contract liabilities	12,584	24,957
Provision for bonuses	849,917	507,268
Provision for bonuses for directors (and other	115,489	43,935
officers)
Provision for loss on litigation	21,700	21,700
Asset retirement obligations	989	989
Accounts payable - other	1,040,521	917,828
Other	604,264	462,484
Total current liabilities	9,689,605	9,056,970
Non-current liabilities
Long-term borrowings	1,373,363	1,215,578
Lease liabilities	595,016	484,875
Deferred tax liabilities	1,515,848	1,683,572
Retirement benefit liability	1,054,256	1,061,956
Provision for share awards for directors (and other	97,037	101,050
officers)
Asset retirement obligations	85,663	85,663
Other	118,274	102,992
Total non-current liabilities	4,839,460	4,735,688
Total liabilities	14,529,065	13,792,658
Net assets
Shareholders' equity
Share capital	5,855,000	5,855,000
Capital surplus	7,962,140	7,962,140
Retained earnings	27,645,972	27,273,103
Treasury shares	(1,477,050)	(1,477,050)
Total shareholders' equity	39,986,063	39,613,193
Accumulated other comprehensive income
Valuation difference on available-for-sale	1,980,984	2,341,022
securities
Foreign currency translation adjustment	5,378,166	5,407,865
Remeasurements of defined benefit plans	(295,334)	(271,303)
Total accumulated other comprehensive income	7,063,816	7,477,585
Non-controlling interests	261,475	257,685
Total net assets	47,311,354	47,348,464
Total liabilities and net assets	61,840,420	61,141,123

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Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the three months)
		(Thousands of yen)
	For the three months	For the three months
	ended January 31, 2023	ended January 31, 2024
Net sales	7,044,761	6,345,059
Cost of sales	4,511,796	4,311,362
Gross profit	2,532,965	2,033,696
Selling, general and administrative expenses	1,595,670	1,666,766
Operating profit	937,294	366,930
Non-operating income
Interest income	17,992	32,536
Dividend income	10,927	7,922
Share of profit of entities accounted for using equity	-	8,512
method
Other	34,774	16,662
Total non-operating income	63,694	65,633
Non-operating expenses
Interest expenses	9,900	8,831
Loss on retirement of non-current assets	2,924	27,748
Foreign exchange losses	177,847	14,511
Share of loss of entities accounted for using equity	13,564	-
method
Other	22,185	2,832
Total non-operating expenses	226,422	53,923
Ordinary profit	774,566	378,639
Profit before income taxes	774,566	378,639
Income taxes	159,268	246,461
Profit	615,298	132,177
Profit attributable to non-controlling interests	12,158	15,859
Profit attributable to owners of parent	603,140	116,318

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Quarterly Consolidated Statements of Comprehensive Income (For the three months)

		(Thousands of yen)
	For the three months	For the three months
	ended January 31, 2023	ended January 31, 2024
Profit	615,298	132,177
Other comprehensive income
Valuation difference on available-for-sale securities	(151,257)	360,037
Foreign currency translation adjustment	(1,363,232)	85,008
Remeasurements of defined benefit plans, net of tax	82,749	24,031
Share of other comprehensive income of entities	(143,210)	(55,309)
accounted for using equity method
Total other comprehensive income	(1,574,950)	413,768
Comprehensive income	(959,652)	545,946
Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

(971,810)530,086

12,15815,859

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