Summary: Consolidated Finacial Results for FY3/23 1Q

Note: 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.

August 9, 2022

Consolidated Financial Results

for the Three Months Ended June 30, 2022

(Under Japanese GAAP)

Company name:	YONEX Co., Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	7906
URL:	https:// www.yonex.co.jp
Representative:	President and Representative Director	Alyssa Yoneyama
Inquiries:	Executive Managing Director	Shuichi Yoneyama
Telephone:	03-3839-7112

Scheduled date to file quarterly securities report:	August 12, 2022
Scheduled date to commence dividend payments:	－
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	No

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 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

Three months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

June 30, 2022

23,694

46.5

3,422

160.4

3,859

184.3

3,025

219.3

June 30, 2021

16,178

97.3

1,314

－

1,357

－

947

－

Basic earnings

Diluted earnings

per share

per share

Three months ended

Yen

Yen

June 30, 2022

34.68

－

June 30, 2021

10.82

－

(2)

Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

As of

Millions of yen

Millions of yen

%

June 30, 2022

70,763

49,421

69.6

March 31, 2022

66,299

45,729

68.8

2.

Cash dividends

Annual dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

－

5.00

－

5.00

10.00

March 31, 2022

Fiscal year ending

－

March 31, 2023

Fiscal year ending

5.00

－

5.00

10.00

March 31, 2023 (Forecast)

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
Six months ending	48,000	38.0	6,000	43.2	6,400	48.7	4,800	43.5	55.01
September 30, 2022
Full year	97,000	30.2	9,200	36.5	9,600	32.5	7,000	21.1	80.23

Note: Revisions to the forecast of consolidated financial results most recently announced: Yes

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2022	93,620,800 shares
As of March 31, 2022	93,620,800 shares

(ii) Number of treasury shares at the end of the period

As of June 30, 2022	6,370,801 shares
As of March 31, 2022	6,371,157 shares

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

Three months ended June 30, 2022	87,249,868 shares
Three months ended June 30, 2021	87,563,827 shares

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	17,922	18,579
Notes and accounts receivable - trade	12,676	14,829
Merchandise and finished goods	8,336	8,753
Work in process	1,798	1,716
Raw materials and supplies	1,657	1,797
Other	2,478	2,708
Allowance for doubtful accounts	(29)	(30)
Total current assets	44,841	48,354
Non-current assets
Property, plant and equipment
Buildings, net	5,179	5,118
Land	8,882	8,906
Other, net	3,228	3,882
Total property, plant and equipment	17,290	17,907
Intangible assets
Software	259	245
Software in progress	977	1,286
Goodwill	102	87
Other	15	15
Total intangible assets	1,355	1,636
Investments and other assets
Investment securities	208	204
Long-term time deposits	400	400
Deferred tax assets	1,736	1,742
Other	467	518
Allowance for doubtful accounts	(0)	(0)
Total investments and other assets	2,811	2,865
Total non-current assets	21,457	22,409
Total assets		66,299	70,763

			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	4,790	4,598
Accounts payable - other	2,910	2,907
Current portion of long-term borrowings	535	535
Income taxes payable	966	1,303
Accrued consumption taxes	40	67
Provision for bonuses	998	1,382
Provision for bonuses for directors (and other	63	7
officers)
Provision for point card certificates	3	3
Other	3,341	3,427
Total current liabilities	13,649	14,234
Non-current liabilities
Long-term borrowings	1,421	1,287
Retirement benefit liability	2,811	2,821
Provision for retirement benefits for directors (and	261	192
other officers)
Provision for share awards	111	121
Long-term guarantee deposits	1,970	2,010
Other	343	674
Total non-current liabilities	6,919	7,107
Total liabilities	20,569	21,341
Net assets
Shareholders' equity
Share capital	4,706	4,706
Capital surplus	7,708	7,708
Retained earnings	34,216	36,805
Treasury shares	(1,544)	(1,544)
Total shareholders' equity	45,086	47,675
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	18	16
Foreign currency translation adjustment	629	1,711
Remeasurements of defined benefit plans	(126)	(119)
Total accumulated other comprehensive income	521	1,608
Non-controlling interests	122	137
Total net assets	45,729	49,421
Total liabilities and net assets		66,299	70,763

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

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2021	June 30, 2022
Net sales	16,178	23,694
Cost of sales	9,055	12,824
Gross profit	7,122	10,870
Selling, general and administrative expenses	5,808	7,447
Operating profit	1,314	3,422
Non-operating income
Interest income	7	14
Rental income	3	3
Subsidy income	11	0
Foreign exchange gains	22	414
Other	4	19
Total non-operating income	49	452
Non-operating expenses
Interest expenses	6	9
Other	0	5
Total non-operating expenses	7	15
Ordinary profit	1,357	3,859
Extraordinary income
Gain on sale of investment securities	1	－
National subsidies	－	311
Total extraordinary income	1	311
Profit before income taxes	1,358	4,171
Income taxes - current	479	1,129
Income taxes - deferred	(68)	10
Total income taxes	411	1,139
Profit	947	3,031
Profit attributable to non-controlling interests	－	6
Profit attributable to owners of parent		947	3,025