TATSUTA Electric Wire and Cable : Financial Results for the Year Ended March 31, 2023

This document has been translated from the Japanese original for reference purposes only.

In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

Financial Results for the Year Ended March 31, 2023 [Japanese GAAP] (Consolidated)

May 11, 2023

Company name: Tatsuta Electric Wire & Cable Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Stock Code: 5809

URL: https://www.tatsuta.com

Representative: Hiroya Yamada, President and Representative Director

Contact: Masafumi Imai, Director, Senior Executive Officer, General Manager of Accounting and Finance Department

Phone: [phone]

Scheduled date of General Meeting of Shareholders: June 23, 2023

Scheduled date of filing Annual Securities Report: June 23, 2023

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on annual financial results: Available

Schedule of annual financial results briefing session: Not scheduled

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

1. Consolidated Financial Results for the Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
			Net sales			Operating income		Ordinary income	Income attributable to
						owners of parent
	Fiscal year ended		Million yen	%		Million yen	%		Million yen	%	Million yen	%
		61,476	2.7		1,701	(41.0)			1,864	(40.1)		967	(58.5)
	March 31, 2023
	Fiscal year ended		59,861	9.8		2,885	(18.3)			3,114	(14.2)		2,330	(11.9)
	March 31, 2022
(Note) Comprehensive income: Fiscal year ended March 31, 2023: 825 million yen [(65.3) %]
			Fiscal year ended March 31, 2022: 2,380 million yen [(38.6) %]
		Income per share	Diluted income	Rate of return on		Return on assets	Operating income
			per share	equity			ratio
	Fiscal year ended		Yen			Yen			%				%		%
	15.67			-			2.0				3.2		2.8
	March 31, 2023
	Fiscal year ended	37.72			-			4.9				5.4		4.8
	March 31, 2022
(Reference) Equity in earnings of affiliates: Fiscal year ended March 31, 2023: NA
(2) Consolidated Financial Position	Fiscal year ended March 31, 2022: NA
			Total assets			Net assets		Equity ratio		Net assets per share
	As of		Million yen		Million yen					%			Yen
		58,457			47,882					81.9			775.04
	March 31, 2023
	As of		58,654			48,169					82.1			779.68
	March 31, 2022

(Reference) Equity: As of March 31, 2023: 47,882 million yen As of March 31, 2022: 48,169 million yen

(3) Consolidated Cash Flows

	Net cash provided by	Net cash provided by	Net cash provided by	Cash and cash
	(used in) operating	(used in) investing	(used in) financing	equivalents at end of
	activities	activities	activities	period
Fiscal year ended	Million yen	Million yen	Million yen	Million yen
1,877	(855)	(1,112)	1,246
March 31, 2023
Fiscal year ended	(3,061)	4,178	(1,112)	1,389
March 31, 2022

2. Dividends

						Annual dividends
		1st quarter-end		2nd quarter-end		3rd quarter-end		Year-end	Total
Fiscal year ended		Yen		Yen				Yen		Yen	Yen
	-		9.00				-		9.00	18.00
March 31, 2022
Fiscal year ended		-		9.00				-		0.00	9.00
March 31, 2023
Fiscal year ending
March 31, 2024		-		-				-		-	-
(Forecast)
	Total dividend paid	Dividend payout	Dividend on equity
		out	ratio (consolidated)		(consolidated)
Fiscal year ended		Million yen		%	%
1,112	47.7	2.3
March 31, 2022
Fiscal year ended	556	57.4	1.2
March 31, 2023
Fiscal year ending
March 31, 2024						-
(Forecast)

For the dividend for the fiscal year ending March 31, 2023, please refer to the "Notice Regarding Revision of Dividend Forecast (No Dividend) for the Fiscal Year Ending March 31, 2023" published on December 21, 2022.

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

As announced in the Notice on Position Statement concerning Planned Commencement of a Tender Offer by JX Nippon Mining & Metals Corporation, a Wholly-owned Subsidiary of ENEOS Holdings, Inc., for Shares of the Company released on December 21, 2022, the Company's stock is planned to be delisted. A consolidated financial results forecast for the fiscal year ending March 31, 2024 is therefore not presented.

Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No

Newly added: NA

Excluded: NA

1. Changes in accounting principles, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting principles due to the revision of accounting standards: No
   2. Changes in accounting principles other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No

(3) Total number of issued shares (common stock)

1)	Total number of issued shares at the end of the period (including treasury shares):
		As of March 31, 2023	70,156,394 shares
2)		As of March 31, 2022	70,156,394 shares
Total number of treasury shares at the end of the period:
		As of March 31, 2023	8,376,022 shares
		As of March 31, 2022	8,375,147 shares
3) Average number of shares during the period:
		Fiscal year ended March 31, 2023	61,781,050 shares
		Fiscal year ended March 31, 2022	61,781,630 shares

• These consolidated financial results are outside the scope of audit by a certified public accountant or an audit corporation.
• Explanation of the proper use of financial results forecast and other notes

As announced in the Notice on Position Statement concerning Planned Commencement of a Tender Offer by JX Nippon Mining & Metals Corporation, a Wholly-owned Subsidiary of ENEOS Holdings, Inc., for Shares of the Company released on December 21, 2022, the Company's stock is planned to be delisted. A consolidated financial results forecast for the fiscal year ending March 31, 2024 is therefore not presented.

The supplementary briefing material on annual financial results is scheduled to be disclosed on the TDnet on that same day as well as on the Company's website.

Table of Contents of Reference Materials
1.	Overview of Business Results, etc	1
	(1)	Overview of business results for the fiscal year under review	1
	(2)	Overview of financial position for the fiscal year under review	2
	(3)	Overview of cash flows for the fiscal year under review	3
	(4)	Basic policy on distribution of profits	3
2.	Overview of Group Operations	4
3.	Basic Approach to the Selection of Accounting Standards	5
4.	Consolidated Financial Statements and Notes	8
	(1)	Consolidated Balance Sheets	8
	(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive Income	10
	(3)	Consolidated Statements of Changes in Equity	12
	(4)	Consolidated Statements of Cash Flows	14
	(5)	Notes to the consolidated financial statements	16
	(Notes on the going concern assumption)	16
	(Notes on important matters for the preparation of consolidated financial statements)	16
	(Segment information, etc.)	19
	(Per share information)	24
	(Important subsequent events)	24

1. Overview of Business Results, etc.

1. Overview of business results for the fiscal year under review
2. 1. Operating results for the period under review

During the current fiscal year under review, as the movement restrictions due to the COVID-19 pandemic were lifted, the Japanese economy saw signs of moderate recovery in corporate earnings, capital investment, production, personal consumption, etc. The world economy is also expected to continue improving modestly as the impact of COVID-19 decreases, although the economy in some regions is at a standstill. However, downside risks are increasing due to volatility in the financial and capital markets and rising prices amid ongoing global monetary tightening, resource and raw material prices fluctuating at high levels, the prolonged Russia-Ukraine crisis, and the lingering effects of restraints on economic activity in China.

The average domestic quotation price for copper, the main raw material used for the Company's products, during the fiscal year under review was on levels higher compared to the previous fiscal year.

In the meantime, demand for electric wires for infrastructure was on levels lower compared to the previous fiscal year, while in the industrial equipment wire business, a recovery in demand from some users continued. Sales volume of smartphones, the main usage of functional films, remained weak due to a global price increase, a slowdown of the Chinese economy, the effects of lockdowns in the country, etc. The materials demand was affected by sluggish product sales, shortfalls in semiconductors and other components and materials, inventory adjustments by users, etc.

In this environment, net sales for the fiscal year under review amounted to 61,476 million yen (up 2.7% year on year). Operating income was 1,701 million yen (down 41.0% year on year), ordinary income was 1,864 million yen (down 40.1% year on year), and income attributable to owners of parent was 967 million yen (down 58.5% year on year).

The Company is currently listed in the Tokyo Stock Exchange Inc. as of the end of the fiscal year under review. As announced in the Notice on Position Statement concerning Planned Commencement of a Tender Offer by JX Nippon Mining & Metals Corporation, a Wholly-owned Subsidiary of ENEOS Holdings, Inc., for Shares of the Company released on December 21, 2022, JX Nippon Mining & Metals Corporation plans to commence the tender offer for shares of the Company as soon as the prospect for clearance of competition laws of relevant countries becomes probable. The details of the schedule will be notified promptly after the determination. Through the tender offer and subsequent series of procedures, the Company is planned to become a wholly- owned subsidiary of JX Nippon Mining & Metals Corporation, and the Company's stock is planned to be delisted.

The Company will develop synergies, including efficient utilization of management resources of both companies; further enhancement of business competitiveness in the electronic materials area; and enhancement of business foundation in the electric wire and cable area, in an effort to increase corporate value.

An overview of the Group's business performance by segment is as follows:

[Electric Wire and Cable Business]

The sales volume of electric wires for infrastructure declined from the previous fiscal year (down 9.2% year on year) as customers continued conservative buying due to higher copper prices, and competition intensified,

1