Ohara : Consolidated Financial Results for the Year Ended October 31, 2022

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 Year Ended October 31, 2022

[Japanese GAAP]

Company name: OHARA INC.	December 15, 2022
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 Annual General Meeting of Shareholders: January 26, 2023

Scheduled date of commencing dividend payments: January 27, 2023

Scheduled date of filing annual securities report: January 26, 2023

Availability of supplementary briefing material on annual financial results: Yes

Schedule of annual financial results briefing session: Yes

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

1. Consolidated Financial Results for the Fiscal Year Ended October 31, 2022 (November 01, 2021 to October 31, 2022)

(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
Fiscal year ended		Million yen		%	Million yen		%	Million yen	%	Million yen	%
October 31, 2022		28,304		20.3	2,976		117.6	3,665	111.5	2,116	44.9
October 31, 2021		23,521		31.6	1,368		-	1,733	-	1,460	-

(Note) Comprehensive income:	Fiscal year ended October 31, 2022:
	Fiscal year ended October 31, 2021:

¥	5,540 million	[	33.2%]
¥	4,159 million	[	-%]

	Basic earnings per	Diluted earnings per	Rate of return on	Ordinary profit to	Operating profit to
	share	share	equity	total assets ratio	net sales ratio
Fiscal year ended	Yen	Yen	%	%	%
October 31, 2022	86.90	-	5.0	6.4	10.5
October 31, 2021	59.99	-	3.8	3.4	5.8

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended October 31, 2022: Fiscal year ended October 31, 2021:

(2) Consolidated Financial Position

• 79 million
• 56 million

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Million yen		Million yen	%	Yen
October 31, 2022	60,678		45,262	74.2	1,848.95
October 31, 2021	53,606		40,111	74.6	1,641.75
(Reference) Equity: As of	October 31, 2022:	¥	45,024 million
As of	October 31, 2021:	¥	39,979 million
(3) Consolidated Cash Flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end
	operating activities	investing activities	financing activities
	of period
Fiscal year ended	Million yen		Million yen	Million yen	Million yen
October 31, 2022	2,303		(1,993)	(760)	14,134
October 31, 2021	1,938		(780)	(1,409)	12,967

2. Dividends

			Annual dividends				Payout	Dividends
					Total	to net
								ratio
	1st		2nd	3rd		Year-end	Total	dividends	assets
			(consolidated)
	quarter-end	quarter-end	quarter-end			(consolidated)
Fiscal year ended		Yen	Yen	Yen		Yen	Yen	Million yen	%	%
October 31, 2021		-	0.00	-		15.00	15.00	366	25.0	1.0
October 31, 2022		-	0.00	-		20.00	20.00	489	23.0	1.1
Fiscal year ending
October 31, 2023		-	0.00	-		20.00	20.00		22.1
(Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending October 31, 2023 (November 01, 2022 to October 31, 2023)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable	Basic earnings per
		to owners of parent	share
Six months ended April 30,	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
14,300		5.2	1,200	(8.1)	1,300	(18.9)	1,000	1.6	41.07
2023
Full year	29,500		4.2	2,700	(9.3)	2,900	(20.9)	2,200	4.0	90.34

* Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
4. Total number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares):

October 31, 2022:	25,450,000	shares
October 31, 2021:	25,450,000	shares
2) Total number of treasury shares at the end of the period:
October 31, 2022:	1,098,607	shares
October 31, 2021:	1,098,578	shares

3) Average number of shares during the period:
Fiscal Year ended October 31, 2022:	24,351,394	shares
Fiscal Year ended October 31, 2021:	24,346,518	shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended October 31, 2022 (November 01, 2021 to October 31, 2022)
(1) Non-consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales			Operating profit		Ordinary profit	Net income
Fiscal year ended	Million yen		%		Million yen	%		Million yen	%	Million yen		%
October 31, 2022	14,452		-		(785)	-		490	-	363		-
October 31, 2021	12,734		38.3		(970)	-		953	-	1,437		-
	Basic earnings per share	Diluted earnings per share
Fiscal year ended			Yen		Yen
October 31, 2022			14.93			-
October 31, 2021			59.03			-
(2) Non-consolidated Financial Position
	Total assets			Net assets		Capital adequacy ratio	Net assets per share
As of	Million yen			Million yen			%			Yen
October 31, 2022	35,687			25,721			72.1	1,056.28
October 31, 2021	34,347			25,642			74.7	1,053.02
(Reference) Equity: As of	October 31, 2022:			¥	25,721 million
As of	October 31, 2021:			¥	25,642 million

Consolidated Financial Statements

Consolidated Balance Sheets

		(Thousand yen)
	As of October 31,2021	As of October 31,2022
Assets
Current assets
Cash and deposits	12,967,322	14,459,354
Notes and accounts receivable - trade	6,410,145	7,023,184
Electronically recorded monetary claims -	2,028,226	1,839,781
operating
Merchandise and finished goods	2,408,429	2,965,614
Work in process	4,941,175	5,920,000
Raw materials and supplies	2,461,886	3,731,274
Other	248,762	718,274
Allowance for doubtful accounts	(54,745)	(22,121)
Total current assets	31,411,202	36,635,363
Non-current assets
Property, plant and equipment
Buildings and structures	13,848,845	14,917,008
Accumulated depreciation	(9,610,319)	(10,469,129)
Buildings and structures, net	4,238,526	4,447,878
Machinery, equipment and vehicles	17,373,760	18,017,152
Accumulated depreciation	(15,505,486)	(15,761,450)
Machinery, equipment and vehicles, net	1,868,273	2,255,701
Tools, furniture and fixtures	11,834,304	12,267,236
Accumulated depreciation	(3,126,607)	(3,333,072)
Tools, furniture and fixtures, net	8,707,697	8,934,164
Land	321,896	342,904
Right of use assets	296,007	439,320
Accumulated depreciation	(99,834)	(155,122)
Right of use assets, net	196,172	284,198
Construction in progress	547,138	303,305
Total property, plant and equipment	15,879,705	16,568,153
Intangible assets	380,174	351,221
Investments and other assets
Investment securities	5,347,424	6,543,057
Long-term loans receivable	87,000	-
Retirement benefit asset	226,710	254,004
Deferred tax assets	207,449	244,514
Other	66,393	82,157
Total investments and other assets	5,934,978	7,123,734
Total non-current assets	22,194,857	24,043,109
Total assets	53,606,059	60,678,472

1

		(Thousand yen)
	As of October 31,2021	As of October 31,2022
Liabilities
Current liabilities
Notes and accounts payable - trade	1,527,307	1,935,291
Electronically recorded obligations - operating	459,433	625,484
Short-term borrowings	3,052,757	3,192,520
Lease liabilities	724,243	345,065
Income taxes payable	349,030	594,845
Contract liabilities	-	32,026
Provision for bonuses	739,389	950,252
Provision for bonuses for directors (and other	88,352	147,878
officers)
Asset retirement obligations	869	-
Accounts payable - other	984,454	1,144,965
Other	459,192	526,468
Total current liabilities	8,385,030	9,494,800
Non-current liabilities
Long-term borrowings	1,778,538	1,546,862
Lease liabilities	517,821	879,093
Deferred tax liabilities	1,090,943	1,463,052
Retirement benefit liability	1,418,660	1,709,700
Provision for share awards for directors (and other	77,796	99,393
officers)
Asset retirement obligations	87,922	85,850
Other	137,630	137,630
Total non-current liabilities	5,109,312	5,921,582
Total liabilities	13,494,343	15,416,382
Net assets
Shareholders' equity
Share capital	5,855,000	5,855,000
Capital surplus	7,959,708	7,962,140
Retained earnings	24,814,081	26,563,833
Treasury shares	(1,490,100)	(1,492,577)
Total shareholders' equity	37,138,688	38,888,396
Accumulated other comprehensive income
Valuation difference on available-for-sale	1,667,640	1,988,971
securities
Foreign currency translation adjustment	1,820,613	5,156,468
Remeasurements of defined benefit plans	(647,874)	(1,009,356)
Total accumulated other comprehensive income	2,840,379	6,136,083
Non-controlling interests	132,648	237,610
Total net assets	40,111,716	45,262,090
Total liabilities and net assets	53,606,059	60,678,472

2