Okamura : Financial Results for Third Quarter of Fiscal Year Ending March 31, 2023 (Consolidated)

(% Figures indicate year-over-yearincrease/decrease.)

Financial Results for Third Quarter of Fiscal Year

Ending March 31, 2023 [Japanese GAAP] (Consolidated)

		February 3, 2023
Okamura Corporation	Listing: Tokyo Stock Exchange
Code Number: 7994	URL: https://www.okamura.co.jp/
Representative:	Masayuki Nakamura, Representative Director, President and Chief Executive Officer
Contact:	Sakae Fukuda, Director and Executive Officer, CFO	TEL: [phone]
Scheduled date for filing of quarterly report:	February 13, 2023
Scheduled date for commencement of dividend payments:	-
Preparation of supplementary materials to explain quarterly financial results:	None
Scheduling of meeting to explain quarterly financial results:	None

(Amounts less than 1 million yen have been rounded down.)

1. Consolidated Operating Results for Third Quarter (April 1, 2022 to December 31, 2022) of FY Ending March 2023 (April 1, 2022 to March 31, 2023)

(1) Operating Results (cumulative)

	Net sales		Operating income	Ordinary income	Profit attributable to
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Third quarter of FY ending March 2023	197,531	8.1	8,027	(14.5)	9,460	(11.1)	9,184	18.0
Third quarter of FY ended March 2022	182,767	9.4	9,386	53.8	10,640	48.0	7,782	40.6

Note:

Comprehensive income

¥9,132 million (35.7%) for the third quarter of FY ending March 2023

¥6,734 million (−33.6%) for the third quarter of FY ended March 2022

Profit per share

Diluted profit per share

yen

yen

Third quarter of FY ending March 2023

93.98

-

Third quarter of FY ended March 2022

78.39

-

(2) Financial Position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

Third quarter of FY ending March 2023

242,787

149,125

60.7

FY ended March 2022

245,372

144,121

58.1

Reference: Total equity

¥147,309 million for the third quarter of FY ending March 2023

¥142,631 million for FY ended March 2022

2. Dividend

Annual dividend

End of first quarter

End of second quarter

End of third quarter

Year-end

Total

yen

yen

yen

yen

yen

FY ended March 2022

-

20.00

-

20.00

40.00

FY ending March 2023

-

22.00

-

FY ending March 2023 (forecast)

22.00

44.00

Note:

Revision of the most recently released dividend forecasts: None

3. Forecast of Consolidated Performance for FY Ending March 2023 (April 1, 2022 to March 31, 2023)

(% Figures indicate year-over-year increase/decrease.)

	Net sales		Operating income	Ordinary income	Profit attributable to	Profit per share
		owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	yen
Full year	275,000		5.3	16,500	3.3	18,000	2.9	15,600	4.1	159.61

Note: Revision of the most recently released performance forecasts: None

* Notes

1. Changes in the number of material subsidiaries during the quarter under review (This indicates whether there have been changes in the number of specified subsidiaries involving changes in the scope of consolidation): None

New	- company(ies) (	-)
Excluded	- company(ies) (	-)

1. Adoption of a special accounting method applicable to the preparation of consolidated quarterly financial statements: None
2. Changes in accounting policy or accounting estimates, or restatement
    Changes in accounting policy in accordance with revisions to accounting standards: Yes

• Changes other than those in  above in accounting policy: None

• Changes in accounting estimates: None

• Restatement: None

Note: For details, please refer to 2. Consolidated Quarterly Financial Statements and Important Notes (4) Notes regarding Consolidated Quarterly Financial Statements (Changes in accounting policies) on page 9 of the Appendix.

(4) Number of shares of stock (common stock)
 Number of shares issued (including treasury stock) at the end of the term	3Q of FY ending	100,621,021	FY ended	100,621,021
	March 2023		March 2022
 Number of shares of treasury stock at the end of the term	3Q of FY ending	2,887,629	FY ended	2,883,895
	March 2023		March 2022
 Average number of shares during the term (cumulative quarters)	3Q of FY ending	97,735,266	3Q of FY ended	99,284,618
	March 2023		March 2022

* The Summary of Quarterly Financial Results is not subject to quarterly audit by a Certified Public Accountant or an audit firm. * Explanation of Appropriate Use of Performance Forecasts and Other Issues Requiring Particular Mention

• The performance forecasts and other forward-looking statements contained herein are based on the information available to the Company at the time, and contain certain assumptions that the Company considers to be reasonable. They are subject to diverse factors that may cause actual results of operations and other items to differ significantly from the statements and forecasts. For a description of the assumptions underlying the performance forecasts and the points to note when using the performance forecasts in this document, etc., please refer to (3) Explanation of the performance forecast in 1. Qualitative Information Concerning Consolidated Quarterly Financial Results on page 3 of the Appendix.

Okamura Corporation (7994) Financial Results for Third Quarter of Fiscal Year Ending March 31, 2023 (Consolidated)

• Table of Contents for Appendix

1.	Qualitative Information Concerning Consolidated Quarterly Financial Results	2
	(1)	Explanation of the progress in (consolidated) operating results	2
	(2)	Explanation of the changes in (consolidated) financial position	3
	(3)	Explanation of the performance forecast	3
2.	Consolidated Quarterly Financial Statements and Important Notes	4
	(1)	Consolidated Quarterly Balance Sheet	4

1. Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive

	Income	6
(3)	Consolidated Quarterly Statements of Cash Flows	8
(4)	Notes regarding Consolidated Quarterly Financial Statements	9
	Note regarding the assumption of going concern	9
	Note regarding occurrence of significant change in amount of shareholders' equity	9
	Changes in accounting policies	9
	Segment information	9

- 1 -

Okamura Corporation (7994) Financial Results for Third Quarter of Fiscal Year Ending March 31, 2023 (Consolidated)

1. Qualitative Information Concerning Consolidated Quarterly Financial Results

1. Explanation of the progress in (consolidated) operating results
   During the third quarter of the consolidated fiscal year under review, the Japanese economy showed signs of recovery in economic activities due to high vaccination rates and various other measures, despite the continuing impact of the COVID-19 pandemic. However, the outlook remains uncertain due to geopolitical risks surrounding the situation in Ukraine, the soaring prices of various parts and materials, new variants causing repeated increases in COVID-19 infections, etc.
   Under these circumstances, the Okamura Group has been striving to enhance our corporate value by providing society with high quality products and services that accurately meet customer needs, under the mission of "contributing to society by creating environments where people can thrive with rich ideas and reliable quality."
   As a result of the above, during the third quarter of the consolidated fiscal year under review, the Company posted net sales of ¥197,531 million (up 8.1% from the same period of the previous fiscal year), operating income of ¥8,027 million (down 14.5% from the same period of the previous fiscal year), ordinary income of ¥9,460 million (down 11.1% from the same period of the previous fiscal year), and profit attributable to owners of parent of ¥9,184 million (up 18.0% from the same period of the previous fiscal year).
   Performance results by segment are discussed below.

	Net sales (Millions of yen)		Segment income or loss (Millions of yen)
Segment name	Third quarter of FY	Third quarter of FY	Increase/	Third quarter of FY	Third quarter of FY	Increase/
	ended March 2022	ending March 2023	decrease	ended March 2022	ending March 2023	decrease
Office Furniture	94,541	107,302	12,760	7,037	7,291	253
Store Displays	75,606	76,135	529	2,744	1,949	(794)
Material Handling	8,443	9,734	1,291	(449)	(1,193)	(744)
Systems
Others	4,176	4,359	182	53	(20)	(74)
Total	182,767	197,531	14,764	9,386	8,027	(1,359)

Note: The total of segment income or loss corresponds to the operating income on Consolidated Quarterly Statements of Income.

Office Furniture

In the Office Furniture segment, as the construction of offices to accommodate new work styles has become an important management issue for many companies across all industries and company sizes, demand for office renovation remained strong nationwide. In such an environment, the Company strived to capture such demand by engaging in proposal-based sales to meet customer needs and expanding new products to support customers in dealing with changes in work style. Owing to these efforts as well as an increase in overseas sales as a result of the acquisition of DB&B, both net sales and income increased to a record high.

As a result, net sales in this segment amounted to ¥107,302 million (up 13.5% from the same period of the previous fiscal year), and the segment income amounted to ¥7,291 million (up 3.6% from the same period of the previous fiscal year).

Store Displays

In the Store Displays segment, renovation demand remained strong particularly among retailers such as supermarkets and drugstores, which represent the Company's main customer base. Under these circumstances, the Company strived to capture such demand by making proposals that leverage its comprehensive capabilities based on its broad product lineup, including display fixtures and freezer and refrigerator showcases, as well as total support systems for store development, including store design and construction management. Owing to these efforts, net sales increased to a record high. However, income decreased due to the soaring prices of various materials and parts.

As a result, net sales in this segment amounted to ¥76,135 million (up 0.7% from the same period of the previous fiscal year), and the segment income amounted to ¥1,949 million (down 28.9% from the same period of the previous fiscal year).

- 2 -

Okamura Corporation (7994) Financial Results for Third Quarter of Fiscal Year Ending March 31, 2023 (Consolidated)

Material Handling Systems

In the Material Handling Systems segment, demand for automated storage systems remained at high levels. This was mainly among major logistics facilities on the back of expanding stay-at-home demand and growing labor-saving needs arising from labor shortages. Under these circumstances, the Company actively engaged in promotion activities for proposals that maximize the strengths of its products, which stand out due to their superiority. New orders in the current period increased steadily and net sales increased in comparison to the previous consolidated fiscal year. However, income decreased due to the soaring prices of various materials and parts.

As a result, net sales in this segment amounted to ¥9,734 million (up 15.3% from the same period of the previous fiscal year), and the segment loss amounted to ¥1,193 million (a segment loss of ¥449 million in the same period of the previous fiscal year).

1. Explanation of the changes in (consolidated) financial position
   The Company's consolidated financial position at the end of the third quarter of the fiscal year under review is as follows:
   Total assets amounted to ¥242,787 million, down ¥2,584 million compared with the end of the previous consolidated fiscal year. Current assets decreased by ¥2,913 million, mainly because of a decrease in notes and accounts receivable-trade and contract assets, and non-current assets increased by ¥329 million, mainly because of an increase in property, plant and equipment and a decrease in investment securities.
   Liabilities amounted to ¥93,662 million, down ¥7,588 million compared with the end of the previous consolidated fiscal year, mainly as a result of a decrease in notes and accounts payable-trade and income taxes payable.
   Net assets amounted to ¥149,125 million, up ¥5,004 million from the end of the previous fiscal year, mainly because of increases in retained earnings.
   As a result, the equity ratio amounted to 60.7%, up 2.6 percentage points compared with the end of the previous fiscal year. A review of cash flows for the third quarter of the current fiscal year is as follows:
   Operating activities generated a net cash increase of ¥8,105 million (an increase of ¥4,404 million in the same period of the previous fiscal year), reflecting inflows including profit before income taxes for the quarter of ¥13,828 million, depreciation and amortization of ¥4,623 million, and a decrease in notes and accounts receivable-trade and contract assets of ¥10,307 million. Outflows included gain on sales of investment securities of ¥4,378 million, a decrease in notes and accounts payable- trade of ¥5,259 million, and income taxes paid of ¥7,821 million.
   Investment activities resulted in a net cash outflow of ¥2,455 million (a net cash outflow of ¥5,468 million in the same period of the previous fiscal year), reflecting outflows including disbursements of ¥8,166 million for the purchase of property, plant and equipment, ¥644 million for the purchase of intangible assets, and ¥1,056 million for the purchase of investment securities as well as inflows including reimbursements of ¥7,289 million for sales and redemption of investment securities.
   Financing activities resulted in a net cash outflow of ¥3,569 million (a net cash outflow of ¥4,503 million in the same period of the previous fiscal year), reflecting inflows including an increase in short-term loans payable of ¥1,471 million and outflows including cash dividends paid of ¥3,870 million.
   Consequently, consolidated cash and cash equivalents at the end of the current fiscal year's third quarter increased by ¥2,875 million from the end of the previous fiscal year (a decrease of ¥5,394 million in the same period of the previous fiscal year) to ¥42,062 million.
2. Explanation of the performance forecast
   The forecast of consolidated performance for the fiscal year ending March 31, 2023 remains unchanged from figures announced on November 2, 2022.
   The performance forecasts have been made based on the information available as of the day when the announcement was published; actual results may differ from the predicted figures due to various factors.

- 3 -