TATSUTA Electric Wire and Cable : Financial Summary for the Six Months Ended September 30, 2023

These documents have been translated from the Japanese originals for reference purposes only. In the event of any discrepancy between these translated documents and the Japanese originals, the originals shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

October 31, 2023

Tatsuta Electric Wire

and Cable Co.,Ltd.

Financial Summary

for the Six Months Ended September 30, 2023

These documents are outside the scope of audit.

1. Business Segment Information （vs. FY2022)

(Milions of yen)

FY2022

Actual (① )

FY2023

Actual (②)

Amount of change (②-① )

		1Q
	Electric Wire and Cable Business	9,926
	Electronic Materials Business	4,228
	Other Businesses	582
	Adjustment (Note)	▲ 6
Net Sales	14,732
	Electric Wire and Cable Business	▲ 166
	Electronic Materials Business	642
	Other Businesses	45
	Adjustment (Note)	▲ 194
Operating Income	327
	（Operating Profit Margin）	(2.2%)
Ordinary Income	437
	（Ordinary Profit Margin）	(3.0%)
Net Income	323

2Q 11,087 4,034 562 ▲ 7

15,677

186 547 1 ▲ 170

564 (3.6%) 637 (4.1%) 549

1st half 21,013 8,263 1,144 ▲ 13

30,409

20 1,190 46 ▲ 365

892 (2.9%) 1,074 (3.5%) 872

2nd half 22,961 6,801 1,318 ▲ 13

31,067

748 273 114 ▲ 327

809 (2.6%) 789 (2.5%) 95

Full year	1Q
43,975	11,059
15,064	3,835
2,463	557
▲ 27	▲ 7
61,476	15,445

768 342

1,464 403

161	▲ 34
▲ 692	▲ 170
1,701	540
(2.8%)	(3.5%)
1,864	598
(3.0%)	(3.9%)
967	453

2Q 11,436 3,757 649 ▲ 7

15,835

412 387 17 ▲ 179

638 (4.0%) 692 (4.4%) 514

1st half 22,496 7,592 1,207 ▲ 15

31,281

755 791 ▲ 17 ▲ 349

1,179 (3.8%) 1,290 (4.1%) 967

1st half ○1,482 × 670 ○62 × 1

○871

○735 × 399 × 63 ○15

○286

○216

○95

(Note)

The adjustment is inter-segment eliminations and corporate expenses,which consist of general and administrative expenses and research expenses not attributable to reportable segments.

2．Consolidated Financial Statements

【Comparison of Quarterly Consolidated Statements of Income】

Six months ended September 30

	(A)		(B)
	Six months ended		Six months ended
	September 30, 2022		September 30, 2023
	(From April 1, 2022 to		(From April 1, 2023 to
	September 30, 2022)		September 30, 2023)
Net sales	30,409	100.0%	31,281	100.0%
Cost of sales	24,694	81.2%	25,312	80.9%
Gross income	5,714	18.8%	5,968	19.1%
Selling, general and administrative expenses	4,822	15.9%	4,789	15.3%
Operating income	892	2.9%	1,179	3.8%
Non-operating income
Interest income	8		2
Dividend income	12		12
Foreign exchange gains	142		77
Other	26		25
Total non-operating income	191	0.6%	117	0.4%
Non-operating expenses
Interest expenses	3		4
Other	5		1
Total non-operating expenses	9	0.0%	6	0.0%
Ordinary income	1,074	3.5%	1,290	4.1%
Extraordinary income
Compensation for transfer	101		-
Gain on sale of investment securities	0		23
Gain on sale of golf memberships	-		0
Gain on sale of non-current assets	0		2
Total extraordinary income	102	0.3%	26	0.1%
Extraordinary losses
Loss on sale of non-current assets	0		-
Loss on abandonment of non-current assets	20		4
TOB related expenses	-		19
Total extraordinary losses	20	0.1%	24	0.1%
Income before income taxes	1,156	3.8%	1,293	4.1%
Income taxes - current	342		421
Income taxes - deferred	△58		△95
Total income taxes	284	0.9%	326	1.0%
Income	872		967
Income attributable to owners of parent	872	2.9%	967	3.1%

	(Millions of yen)
Amount of change	Percent change
(B)-(A)	（(B)-(A))/(A）
871	2.9%
617	2.5%
254	4.5%
△32	-0.7%
286	32.1%
△6
△0
△64
△1
△73	-38.5%
1
△4
△3	-32.6%
216	20.1%
△101
23
0
2
△75	-73.7%
△0
△15
19
3	17.5%
137	11.9%
78
△36
41	14.7%
95
95	10.9%

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【Comparison of Quarterly Consolidated Balance Sheets】

	(A)		(B)		（Millions of yen）
	As of March 31, 2023		As of September 30,		Amount of change
		2023		(B)-(A)
Assets
Current assets
Cash and deposits	1,246		1,657		410
Notes and accounts receivable - trade	20,973		20,331		△641
Inventories	12,328		12,140		△188
Short-term loans receivable	4,611		5,762		1,151
Other	613		744		131
Allowance for doubtful accounts	△12		△12		0
Total current assets	39,761	68.0%	40,625	68.2%	863
Non-current assets
Property, plant and equipment
Buildings and structures, net	8,508		8,320		△187
Machinery, equipment and vehicles, net	3,032		2,816		△215
Tools, furniture and fixtures, net	371		361		△9
Land	3,721		3,721		-
Construction in progress	295		765		469
Total property, plant and equipment	15,929	27.2%	15,985	26.8%	56
Intangible assets
Software	136		119		△16
Software in progress	15		24		8
Right to use facilities	4		4		△0
Other	1		1		△0
Total intangible assets	157	0.3%	149	0.3%	△8
Investments and other assets
Investment securities	1,067		1,224		156
Long-term prepaid expenses	0		59		59
Deferred tax assets	1,190		1,202		11
Other	521		512		△9
Allowance for doubtful accounts	△169		△161		8
Total investments and other assets	2,609	4.5%	2,836	4.8%	227
Total non-current assets	18,696	32.0%	18,972	31.8%	275
Total assets	58,457	100.0%	59,597	100.0%	1,139

	(A)		(B)		（Millions of yen）
	As of March 31, 2023		As of September 30,		Amount of change
		2023		(B)-(A)
Liabilities
Current liabilities
Notes and accounts payable - trade	4,279		4,195		△84
Accounts payable - other	1,243		893		△349
Accrued expenses	1,381		1,421		39
Income taxes payable	87		477		390
Other	939		820		△119
Total current liabilities	7,931	13.6%	7,807	13.1%	△123
Non-current liabilities
Long-term borrowings	900		900		-
Retirement benefit liability	1,572		1,660		87
Asset retirement obligations	42		37		△4
Deferred tax liabilities	1		11		9
Other	127		109		△18
Total non-current liabilities	2,644	4.5%	2,718	4.6%	74
Total liabilities	10,575	18.1%	10,526	17.7%	△49
Net assets
Shareholders' equity
Share capital	6,676		6,676		-
Capital surplus	4,516		4,516		-
Retained earnings	38,792		39,759		967
Treasury shares	△2,459		△2,459		△0
Total shareholders' equity	47,525	81.3%	48,493	81.4%	967
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	249		366		116
Deferred gains or losses on hedges	131		218		87
Foreign currency translation adjustment	△55		△41		14
Remeasurements of defined benefit plans	31		34		2
Total accumulated other comprehensive income	356	0.6%	577	1.0%	221
Total net assets	47,882	81.9%	49,070	82.3%	1,188
Total liabilities and net assets	58,457	100.0%	59,597	100.0%	1,139

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3．Capital expenditure, Depreciation, and other

(Millions of yen)

			FY2022		FY2023
		1st half	2nd half	Full year	1st half
	Electric Wire and Cable Business	564	370	934	387
	Electronic Materials Business	303	341	644	464
	Other Businesses	30	63	93	46
	Corporate	13	17	30	35
Capital expenditure	911	791	1,702	933
	Electric Wire and Cable Business	403	436	839	376
	Electronic Materials Business	394	420	814	361
	Other Businesses	80	84	164	71
	Corporate	85	89	174	72
Depreciation	965	1,028	1,993	882
R&D
	R&D expenses	641	665	1,306	681
	R&D expenses as a percentage of	2.1%	2.1%	2.1%	2.2%
	net sales

4．Trends in the number of employees

		FY2021	FY2022	FY2022	FY2023
		(As of March	(As of	(As of March	(As of
		31, 2022)	September 30,	31, 2023)	September 30,
			2022)		2023)
	Electric Wire and Cable Business	580	579	587	593
	Electronic Materials Business	241	257	257	263
	Other Businesses	105	115	115	115
	Corporate	85	91	87	88
Number of employees	1,011	1,042	1,046	1,059

Note:

Figures indicate number of employees including those seconded from outside the group and excluding those seconded to outside the group. Part-time and temporary employees are also excluded.

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