Press Kogyo : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023 (Based on Japanese GAAP)

Translation

Notice: This document is a 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 June 30, 2023 (Based on Japanese GAAP)

				August 9, 2023
Company name:	PRESS KOGYO CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	7246	URL https://www.presskogyo.co.jp/en/
Representative:	President & CEO	Tetsushi Mino
Inquiries:	General Manager, General Affairs Dept.	Takanori Sasaoka	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 9, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
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 June 30, 2023 (from April 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	%
Three months ended June 30, 2023		51,203		21.1		3,325		35.8			3,689		25.7		2,384	46.5
Three months ended June 30, 2022		42,287		4.3		2,448		(34.1)			2,935		(22.1)		1,628	(31.9)
Note:	Comprehensive income	For the	three months ended June 30, 2023:	¥4,364 million	[9.8 %]
		For the three months ended June 30, 2022:	¥3,975 million	[(18.6)%]
			Earnings per share	Diluted earnings per
				share
					Yen					Yen
Three months ended June 30, 2023				23.29					-
Three months ended June 30, 2022				15.53					-
(2) Consolidated financial position
			Total assets	Net assets			Equity ratio			Net assets per share
			Millions of yen	Millions of yen						%			Yen
As of June 30, 2023		182,510		111,843					55.6		1,001.59
As of March 31, 2023		178,402		111,087					56.2			972.37
Reference: Equity
	As of June 30, 2023:	¥101,506 million
	As of March 31, 2023:	¥100,267 million
2. Cash dividends
								Annual dividends per share
			1st quarter-end		2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
			Yen			Yen				Yen				Yen		Yen
Year ended March 31, 2023				-		10.50					-				10.50		21.00
Year ending March 31, 2024				-
Year ending March 31, 2024 (Forecast)					13.00					-				13.00		26.00
Note:	Revisions to the forecast of cash dividends most recently	announced: No

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

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
95,700	9.3	6,200	23.6	6,100		6.9		4,000	1.8	39.29
September 30, 2023
Full year	189,800	2.7	13,200	0.7	13,100		(4.5)		7,800	14.8	76.61
Note: Revisions to the	forecast of financial results most recently announced: No
4. Notes
(1) Changes in significant subsidiaries during the three months ended June 30, 2023			No
(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
(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

108,594,270 shares

As of March 31, 2023

108,594,270 shares

Number of treasury shares at the end of the period

As of June 30, 2023

7,248,902 shares

As of March 31, 2023

5,477,784 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2023

102,420,757 shares

Three months ended June 30, 2022

104,816,833 shares

• Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants or auditing firms.
• Explanation regarding appropriate use of business forecasts and other special instructions

The projections contained in this document are based on information currently available to the Company and certain assumptions that are deemed to be reasonable, and the Company does not intend to guarantee their achievement. Actual results may differ significantly as a consequence of various factors. Please refer to "1. Qualitative information on financial results for the three months ended June 30, 2023, (1) Explanation of operating results" on page 2 of the attached materials for the conditions that form the assumptions for the business forecasts.

Attached Material
1. Qualitative information on financial results for the three months ended June 30, 2023	2
(1)	Explanation of operating results	2
(2)	Explanation of financial position	3
(3)	Explanation of consolidated financial results forecast and other forward-looking statements	3
2. Quarterly consolidated financial statements	4
(1)	Consolidated balance sheets	4
(2)	Consolidated statements of income (cumulative) and consolidated statements of comprehensive
	income (cumulative)	6
	Consolidated statements of income (cumulative)	6
	Consolidated statements of comprehensive income (cumulative)	7
(3)	Notes to quarterly consolidated financial statements	8
	(Notes on premise of going concern)	8
	(Notes on significant changes in the amount of shareholders' equity)	8
	(Segment information)	8

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1. Qualitative information on financial results for the three months ended June 30, 2023

(1) Explanation of operating results

In the three months ended June 30, 2023, the outlook for the truck and construction machinery business environment in Japan and overseas remained uncertain, mainly as a result of resource prices and energy costs remaining at a high level, sudden foreign exchange fluctuations, and concerns over global economic recession, although there were improvements in the situation regarding the shortage of parts such as semiconductors.

Under these circumstances, the Group continued to strengthen its responsiveness to changes in production and carry out rationalization activities, and strived to secure revenues.

As a result of the above, in the three months ended June 30, 2023, the Company recorded net sales of 51,203 million yen (up 21.1% year on year), operating profit of 3,325 million yen (up 35.8% year on year), ordinary profit of 3,689 million yen (up 25.7% year on year) and profit attributable to owners of parent of 2,384 million yen (up 46.5% year on year).

Business performance by segment is as follows.

(Automotive-Related Business)

The business environment and business performance in Japan and overseas in this segment was as follows.

[Japan]

Domestic demand for heavy- and medium-duty trucks increased by 3,200 vehicles year on year, to 15,100 vehicles, and domestic demand for light-duty trucks increased by 4,900 vehicles year on year, to 19,400 vehicles. The Company's production increased year on year as domestic production of heavy- and medium-duty trucks increased year on year although exports of both heavy- and medium-duty trucks and light-duty trucks decreased year on year.

[Thailand]

Due to decreased domestic demand and exports of 1-tonpick-up trucks, production decreased year on year at the TSPK Group.

[U.S.A.]

Production at PK U.S.A., INC. decreased year on year mainly due to the discontinued production of models for some customers, despite an increase in domestic demand.

[Indonesia]

Although domestic demand of commercial vehicles increased, owing to decreased its exports, production decreased year on year at PT. PK Manufacturing Indonesia.

[Sweden]

Although demand for commercial vehicles increased in Europe, production was on the same level as the same period of the previous fiscal year at PRESS KOGYO SWEDEN AB.

As a result of the above, net sales in this segment amounted to 42,176 million yen (up 22.6% year on year) and segment profit amounted to 3,922 million yen (up 25.4% year on year).

(Construction Machinery-Related Business)

The business environment and business performance in Japan and overseas in this segment was as follows.

[Japan]

Cabin production at the Company's Onomichi Plant and at KYOWA MFG. CO., LTD. increased year on year mainly due to firm domestic demand and exports of construction machinery and the start-up of production of automobile models newly ordered at the Onomichi Plant.

[China]

Production at PRESS KOGYO MINI CABIN (SUZHOU) CO., LTD. decreased year on year due to sluggish domestic demand.

PM CABIN MANUFACTURING CO., LTD. was dissolved on September 28, 2021, and is currently in liquidation.

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As a result of the above, net sales in this segment amounted to 9,010 million yen (up 14.5% year on year) and segment profit amounted to 301 million yen (up 111.9% year on year).

(2) Explanation of financial position

Total assets as of June 30, 2023 were 182,510 million yen, an increase of 4,108 million yen from the end of the previous fiscal year. The main factor was an increase in notes and accounts receivable - trade.

Total liabilities were 70,667 million yen, an increase of 3,352 million yen from the end of the previous fiscal year. The main factor was an increase in notes and accounts payable - trade.

Net assets were 111,843 million yen, an increase of 756 million yen from the end of the previous fiscal year. The main factor was an increase in retained earnings.

As a result, the equity ratio was 55.6%.

(3) Explanation of consolidated financial results forecast and other forward-looking statements

Consolidated forecasts for the fiscal year ending March 31, 2024 are unchanged from the forecast announced on May 11, 2023.

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