Daishinku : Summary of Financial Results for the Second Quarter Ended Sep.30, 2022

DAISHINKU CORP.

Summary of Financial Results for the Second Quarter Ended Sep. 30, 2022

Tokyo, Nov. 11, 2022 - Daishinku Corp. today announced its consolidated financial results for the second quarter ended Sep. 30, 2022.

1. Operating Results for the Second Quarter ended Sep. 30, 2022 (April 1, 2022 to Sep. 30, 2022)

(1) Consolidated operating results			(Figures in % are a comparisons with the same period of the previous year.)
	Net Sales			Operating Income	Ordinary Income	Profit attributable to
			owners of parent
	Millions of Yen	%		Millions of Yen	%	Millions of Yen	%	Millions of Yen	%
Six months ended Sep. 30, 2022	20,292	(5.3)		2,810	1.7	4,751	56.2	2,986	68.4
Six months ended Sep. 30, 2021	21,434	48.2		2,762	481.7	3,042	602.4	1,773	-
Note: Comprehensive Income	Six months ended Sep. 30, 2022 ; 3,977 Yen-million, Six months ended Sep. 30, 2021 ; 2,603 Yen-million
	Net Income per		Net Income per share
		after adjustment with
	share
			potential shares
	Yen			Yen
Six months ended Sep. 30, 2022	92.51		-
Six months ended Sep. 30, 2021	54.94		-

Note: DAISHINKU CORP. has implemented the split of shares of common stocks at a ratio of four shares per one share effective as of November 1, 2021. Accordingly, net income per-share is calculated on the assumption that the split of shares was implemented at the beginning of the previous

fiscal year.

(2) Consolidated financial status

	Total Assets	Net Assets	Stockholders' equity ratio
	Millions of Yen	Millions of Yen	%
Six months ended Sep. 30, 2022	85,184	43,823	42.7
Year ended March 31, 2022	81,317	40,231	40.7
ref. Stockholders' equity : As of Sep. 30, 2022 ; 36,364 Yen-million, As of March 31, 2022 ; 33,121 Yen-million

2. Dividends

			Dividends per share
	End of 1st quarter	End of 2nd quarter	End of 3rd quarter	Year-end	Annual
(Results)	Yen	Yen	Yen	Yen	Yen
Year ended March 31, 2022	-	25.00	-	12.00	-
Year ending March 31, 2023	-	14.00
(Forecast)
Year ending March 31, 2023			-	14.00	28.00

Note: Revision of dividend forecast for during this period: None

DAISHINKU CORP. has implemented the split of shares of common stocks at a ratio of four shares per one share effective as of November 1, 2021. Accordingly, dividends the end of 2nd quarter for the fiscal year ended March 2022 is the actual dividend amounts before the split of shares, annual dividend for the fiscal year ended March 2022 is shown as "－". Without the split of shares, year-end dividend is 48.00 Yen

and annual dividend is 73.00 Yen.

3. Forecast for the fiscal year ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(Figures in % are a comparisons with the same period of the previous year.)

	Net Sales		Operating Income	Ordinary Income	Profit attributable to	Net Income
		owners of parent	per share
	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Yen
Year ending March 31, 2023	39,500	(4.4)	4,000	(23.0)	5,400	(17.5)	3,400	(11.6)	105.33

Note: Revision of the fiscal year result forecast for during this period: Applicable

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4.Notes

1. Changes for important subsidiaries during this period : None
2. Application of particular accounting procedures to preparation of

quarterly consolidated financial statements: Applicable

(3) Changes in accounting policies and changes or restatement of accounting estimates

1.	Changes in accounting policies related to accounting standard revisions	None
2.	Other changes in accounting policies	None
3.	Changes in accounting estimates	None
4.	Modified restatements	None

(4) Outstanding shares (Common shares)

1.	Number of shares outstanding (including treasury stock)
	As of Sep. 30, 2022 :	36,196,968	shares	As of March 31, 2022 :	36,196,968	shares
2.	Number of treasury stock
	As of Sep. 30, 2022 :	3,917,864	shares	As of March 31, 2022 :	3,917,336	shares
3. Average number of shares during the period
	April-Sep. 2022 :	32,279,428	shares	April-Sep. 2021 :	32,281,073	shares

Note: DAISHINKU CORP. has implemented the split of shares of common stocks at a ratio of four shares per one share effective as of November 1, 2021. Accordingly, number of shares outstanding, number of treasury stock and average number of shares during the period are calculated on the assumption that the split of shares was implemented at the beginning of the previous fiscal year.

• The forecasts are based on assumptions of the future economic environment using the data available at the time of disclosure. Actual earnings may differ from the forecasts, due to a range of factors.

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Overview of operating results for the second quarter ended Sep. 30, 2022

With regard to economic activities during the current consolidated cumulative second quarter, although capital investment remained firm, the Japanese yen depreciation was accelerating and supply chains were disrupted due to China's zero-COVID policy. In addition, concerns about an economic slowdown increased because of monetary policy measures against the progress of inflation in various country were continued and strengthened. The outlook still remains uncertain: there has been a resurgence in COVID-19 cases due to new variants, the shortage of semiconductors lingers, and energy supply risks due to the situation in Ukraine have emerged.

In such an environment, DAISHINKU CORP. saw an increase in sales in the consumer and industrial fields, mainly for automotive applications, due in part to the impact of weaker yen. However, sales in the telecommunications field decreased due to low demand for smartphones in China, resulting in net sales of 20,292 million yen (down 5.3% year on year). With regard to profits, operating income reached 2,810 million yen (up 1.7% year on year) due to such factors as the impact of weaker yen. The foreign exchange gain of 1,870 million yen was recorded as non- operating income, resulting in ordinary income of 4,751 million yen (up 56.2% year on year) and profit attributable to owners of parent of 2,986 million yen (up 68.4% year on year).

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Consolidated Financial Statements

(1) Consolidated Balance Sheets

		(Unit: Thousands of yen)
	Year ended March 31, 2022	Six months ended Sep. 30, 2022
Assets
Current assets
Cash and deposits	18,516,683	16,885,422
Notes and accounts receivable - trade	10,144,686	10,681,720
Merchandise and finished goods	5,839,701	7,747,232
Work in process	4,976,962	5,208,649
Raw materials and supplies	5,716,907	6,194,962
Other	1,864,112	2,027,875
Allowance for doubtful accounts	(9,478)	(8,995)
Total current assets	47,049,574	48,736,867
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,166,833	3,271,099
Machinery, equipment and vehicles, net	12,533,597	13,829,116
Tools, furniture and fixtures, net	969,135	1,061,693
Land	5,803,771	5,953,849
Leased assets, net	510,029	427,138
Construction in progress	4,701,569	5,808,198
Total property, plant and equipment	27,684,936	30,351,095
Intangible assets	569,853	923,287
Investments and other assets	3,276,853	2,094,783
Investment securities
Long-term loans receivable	1,548	1,496
Retirement benefit asset	720,102	836,021
Deferred tax assets	800,879	898,118
Other	1,241,887	1,370,941
Allowance for doubtful accounts	(27,800)	(27,800)
Total investments and other assets	6,013,470	5,173,562
Total non-current assets	34,268,259	36,447,945
Total assets	81,317,834	85,184,813

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		(Unit: Thousands of yen)
	Year ended March 31, 2022	Six months ended Sep. 30, 2022
Liabilities
Current liabilities	3,882,669	3,261,931
Notes and accounts payable - trade
Short-term borrowings	3,199,497	3,424,061
Current portion of long-term borrowings	6,346,612	7,203,936
Lease obligations	196,001	200,290
Accounts payable - other	3,610,751	2,087,463
Income taxes payable	1,335,991	1,112,630
Contract liabilities	807	55
Provision for bonuses	724,959	721,982
Provision for bonuses for directors	15,000	7,500
Other	1,349,251	1,275,838
Total current liabilities	20,661,542	19,295,690
Non-current liabilities	17,769,476	19,154,569
Long-term borrowings
Lease obligations	330,669	242,566
Deferred tax liabilities	1,008,881	1,221,542
Retirement benefit liability	1,092,986	1,228,710
Long-term accounts payable - other	93,247	82,984
Asset retirement obligations	27,379	27,608
Other	102,634	107,857
Total non-current liabilities	20,425,275	22,065,838
Total liabilities	41,086,817	41,361,529
Net assets
Shareholders' equity	19,344,883	19,344,883
Share capital
Capital surplus	7,168,224	7,172,364
Retained earnings	4,131,434	6,730,396
Treasury shares	(1,928,693)	(1,929,200)
Total shareholders' equity	28,715,849	31,318,444
Accumulated other comprehensive income	1,287,673	664,579
Valuation difference on available-for-sale securities
Foreign currency translation adjustment	2,551,740	3,895,357
Remeasurements of defined benefit plans	566,533	485,686
Total accumulated other comprehensive income	4,405,948	5,045,622
Non-controlling interests	7,109,218	7,459,216
Total net assets	40,231,016	43,823,284
Total liabilities and net assets	81,317,834	85,184,813

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