Teikoku Electric Mfg : Summary of Consolidated Financial Results for the Second Quarter of the Year Ended March 31, 2023

Translation

Notice: This document is an excerpt 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 Six Months Ended September 30, 2022 (Based on Japanese GAAP)

					November 11, 2022
Company name:	TEIKOKU ELECTRIC MFG.CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	6333	URL https://www.teikokudenki.co.jp/
Representative:	President & CEO	Yoshihiro Koroyasu
Inquiries:	Director, Managing Executive Officer,Chief	Kiyoshi Murata	TEL [phone]
	of Administration H.Q.
Scheduled date to file Quarterly Securities Report:	November 14, 2022
Scheduled date to commence dividend payments:	December 2, 2022
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)

(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	%
Six months ended September 30, 2022	12,909		26.8		2,288	115.3		2,774		124.2		1,894	136.0
Six months ended September 30, 2021	10,179		6.1		1,063	15.1		1,237		24.7		802	4.4
	Earnings per share		Diluted earnings per share
			Yen					Yen
Six months ended September 30, 2022			100.57					-
Six months ended September 30, 2021			41.40					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen				%
As of September 30, 2022		42,230					32,454				76.0
As of March 31, 2022		39,001					30,291				77.0
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, 2022		-			18.00			-			32.00		50.00
Year ending March 31, 2023		-			58.00
Year ending March 31, 2023 (Forecast)									-			58.00		116.00

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	26,730	20.2	4,480	79.6	5,050	71.0	3,520	77.1	191.95

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4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2022 (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

Yes

(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 September 30, 2022	20,440,038	shares	As of March 31, 2022	20,440,038	shares
Number of treasury shares at the end of the period
	As of September 30, 2022	1,751,953	shares	As of March 31, 2022	1,435,876	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2022	18,838,069	shares	Six months ended September 30, 2021	19,395,125	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2022	As of September 30, 2022
Assets
Current assets
Cash and deposits	14,441,811	15,719,674
Notes and accounts receivable - trade, and contract assets	6,604,424	7,675,817
Electronically recorded monetary claims - operating	1,278,989	1,423,196
Finished goods	1,805,280	2,669,499
Work in process	1,846,682	2,039,380
Raw materials and supplies	1,558,859	1,870,247
Other	1,177,334	609,606
Allowance for doubtful accounts	(613,722)	(668,041)
Total current assets	28,099,659	31,339,380
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,622,790	4,548,389
Other, net	4,067,090	4,201,240
Total property, plant and equipment	8,689,880	8,749,629
Intangible assets
Other	181,692	155,516
Total intangible assets	181,692	155,516
Investments and other assets	2,029,891	1,985,772
Total non-current assets	10,901,464	10,890,919
Total assets	39,001,124	42,230,300
Liabilities
Current liabilities
Notes and accounts payable - trade	2,110,839	2,122,642
Electronically recorded obligations - operating	635,722	717,450
Short-term borrowings	340,000	320,000
Income taxes payable	497,494	865,117
Provision for product warranties	35,911	48,164
Provision for bonuses	520,341	510,939
Other	3,227,848	3,606,625
Total current liabilities	7,368,157	8,190,939
Non-current liabilities
Long-term borrowings	79,380	87,220
Retirement benefit liability	533,544	565,298
Other	728,974	932,112
Total non-current liabilities	1,341,899	1,584,630
Total liabilities		8,710,057	9,775,570

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			(Thousands of yen)
		As of March 31, 2022	As of September 30, 2022
Net assets
Shareholders' equity
Share capital	3,143,675	3,143,675
Capital surplus	3,331,904	3,334,708
Retained earnings	23,882,434	25,168,883
Treasury shares	(1,864,953)	(2,409,846)
Total shareholders' equity	28,493,060	29,237,421
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	419,567	372,447
Foreign currency translation adjustment	1,110,077	2,497,272
Remeasurements of defined benefit plans	(3,691)	(2,508)
Total accumulated other comprehensive income	1,525,953	2,867,211
Non-controlling interests	272,053	350,096
Total net assets	30,291,067	32,454,729
Total liabilities and net assets		39,001,124	42,230,300

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		September 30, 2021	September 30, 2022
Net sales	10,179,157	12,909,757
Cost of sales	6,056,552	7,413,152
Gross profit	4,122,604	5,496,604
Selling, general and administrative expenses	3,059,549	3,207,719
Operating profit	1,063,055	2,288,885
Non-operating income
Interest income	27,539	48,485
Dividend income	17,677	19,794
Rental income	16,613	15,842
Foreign exchange gains	17,427	356,134
Other	110,864	68,739
Total non-operating income	190,123	508,996
Non-operating expenses
Interest expenses	8,306	16,578
Other	7,030	6,547
Total non-operating expenses	15,337	23,126
Ordinary profit	1,237,840	2,774,755
Extraordinary losses
Loss on sale of non-current assets	13,148	-
Total extraordinary losses	13,148	-
Profit before income taxes	1,224,692	2,774,755
Income taxes	400,446	831,011
Profit	824,246	1,943,744
Profit attributable to non-controlling interests	21,300	49,161
Profit attributable to owners of parent		802,945	1,894,583

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