GSI Creos : Summary of Consolidated Financial Statements for 2Q of FY2022

*This document is a translation of the original Japanese document and does not contain all details of it.

*This document has been prepared for reference only in accordance with accounting principles generally accepted in Japan. *If there is any discrepancy between this document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Statements

for the Second Quarter of the Fiscal Year Ending March 31, 2023

[Japan GAAP]

		November 4, 2022
		Stock Exchange Listing: Tokyo (Prime Market)
Company Name: GSI Creos Corporation
Code Number:	8101	URLhttps://www.gsi.co.jp
Representative:	Tadaaki Yoshinaga Representative Director, President and CEO
Inquiries:	Kunihiro Ono	Executive Officer, General Manager of Corporate Planning Department Tel: [phone]

Scheduled Date of Quarterly Report Filing:	November 9, 2022
Scheduled Date of Dividend Payments Commencement:	―
Supplementary Documents for Quarterly Financial Statements:	Yes
Holding of Quarterly Financial Results Meeting:	Yes
	(Note: Amounts less than one million of yen have been rounded down.)

1. Consolidated Results for the Second Quarter of the Fiscal Year Ending March 31, 2023 (April 1, 2022 to September 30, 2022)

(1) Consolidated Operating Results (Cumulative Total)			(Percentage figures represent changes from the same period of the previous year.)
		Net sales		Operating profit		Ordinary profit		Profit attributable to
					owners of parent
		Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Second quarter ended September 30, 2022	60,508	15.0		1,123	(6.5)	1,281	6.2	909	(2.7)
Second quarter ended September 30, 2021	52,595	―		1,201	(47.8)	1,207	(46.4)	935	(20.5)
(Note) Comprehensive income	Second quarter ended September 30, 2022	:	1,788 millions of yen	(10.8) %
	Second quarter ended September 30, 2021	:	2,005 millions of yen	(52.4) %
		Net income		Diluted net income
		per share			per share
			Yen			Yen
Second quarter ended September 30, 2022		74.21			―
Second quarter ended September 30, 2021		75.51			―

*"Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29) has been adopted since the beginning of the first quarter of the

fiscal year ending March 2022. Figures for the second quarter of the fiscal year ending March 2022 are stated after the application of the new accounting standard, and about net sales, the ratio of figures changes from the same period of the previous fiscal year is not indicated.

(2) Consolidated Financial Position
	Total assets		Net assets	Equity ratio
			Millions of yen	Millions of yen	%
September 30, 2022			68,746	25,509	37.1
March 31, 2022			60,929	24,512	40.2
(Reference) Equity capital	September 30, 2022	:	25,509	millions of yen
	March 31, 2022	:	24,512	millions of yen

2. Dividends

		Annual dividend per share
	1Q	2Q	3Q	Fiscal year end	Annual
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March 31, 2022	―	0.00	―	65.00	65.00
Fiscal year ending March 31, 2023	―	0.00
Fiscal year ending			―	70.00	70.00
March 31, 2023 (Forecast)
(Note) Revisions to the dividend forecast published most recently	: No

3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(Percentage figures represent changes from the same period of the previous year.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Full fiscal year	117,000	4.6	2,400	19.5	2,400	27.5	1,700	3.8
(Note) Revisions to the consolidated results forecasts published most recently	: No

Net income

per share

Yen

138.70

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* Notes

(1) Changes in Significant Subsidiaries During the Period

(Changes in Specified Subsidiaries Associated with Changes in the Scope of Consolidation)

: No

1. Application of Special Accounting Methods to the Preparation of Quarterly Financial Statements
2. Changes in Accounting Policies and Estimates, and Retrospective Restatement

• Changes in accounting policies due to revisions of accounting standards and other regulations

ⅱ Changes in accounting policies other than in (ⅰ) : No

ⅲ Changes in accounting estimates : No

• Retrospective restatement : No

1. Number of Shares Issued and Outstanding (Common Stock)

• Number of shares issued and outstanding at the end of period (including treasury stock)

September 30, 2022

12,629,942 shares March 31, 2022

• Number of treasury stock at the end of period

• : No

• No

12,629,942 shares

September 30, 2022

367,297 shares March 31, 2022

373,684 shares

• Average number of shares during the period

Six months ended September 30, 2022

12,258,968 shares Six months ended September 30, 2021

12,383,076 shares

• This quarterly report is out of scope of the quarterly review procedure performed by a certified public accountant or audit corporation.
• Cautionary statement with respect to forecasts of consolidated business results and special notes

Earning forecasts presented in this report are based on information available and assumptions deemed reasonable at the time. Therefore, they do not constitute a guarantee that they will be realized. Actual results could differ significantly from forecasts due to a variety of factors.

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Quarterly Consolidated Financial Statements

(1)Quarterly Consolidated Balance Sheets

		(Millions of yen)
	Previous fiscal year	Second quarter,
	current fiscal year
	(March 31, 2022)
	(September 30, 2022)
Assets
Current assets
Cash and deposits	8,078	8,407
Notes receivable-trade	1,649	1,592
Electronically recorded monetary claims-operating	1,989	2,087
Accounts receivable-trade	24,703	32,338
Merchandise	8,960	8,899
Goods in transit	677	918
Raw materials	121	163
Other	2,960	2,358
Allowance for doubtful accounts	(175)	(189)
Total current assets	48,963	56,577
Non-current assets
Property, plant and equipment	3,659	3,876
Intangible assets	736	701
Investments and other assets
Investment securities	5,716	5,458
Other	1,853	2,131
Total investments and other assets	7,570	7,590
Total non-current assets	11,965	12,168
Total assets	60,929	68,746
Liabilities
Current liabilities
Notes and accounts payable-trade	18,514	22,832
Short-term loans payable	10,919	13,350
Current portion of long-term loans payable	90	92
Income taxes payable	123	260
Provisions	512	476
Other	4,078	3,868
Total current liabilities	34,239	40,879
Non-current liabilities
Long-term loans payable	1,236	1,189
Retirement benefit liability	76	82
Other	864	1,085
Total non-current liabilities	2,177	2,356
Total liabilities	36,416	43,236
Net assets
Shareholders' equity
Capital stock	7,186	7,186
Capital surplus	855	855
Retained earnings	14,405	14,518
Treasury stock	(291)	(287)
Total shareholders' equity	22,154	22,272
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,926	1,682
Deferred gains or losses on hedges	17	104
Foreign currency translation adjustment	295	1,345
Remeasurements of defined benefit plans	119	105
Total accumulated other comprehensive income	2,358	3,237
Total net assets	24,512	25,509
Total liabilities and net assets	60,929	68,746

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(2)Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of

Comprehensive Income

(Quarterly Consolidated Statements of Income)

(Cumulative Second Quarter)

		(Millions of yen)
	Cumulative second quarter, Cumulative second quarter,
	previous fiscal year	current fiscal year
	(April 1, 2021-	(April 1, 2022-
	September 30, 2021)	September 30, 2022)
Net sales	52,595	60,508
Cost of sales	46,045	53,639
Gross profit	6,549	6,868
Selling, general and administrative expenses	5,348	5,745
Operating profit	1,201	1,123
Non-operating income
Interest income	29	20
Dividend income	46	56
Share of profit of entities accounted for using equity method	12	178
Other	54	110
Total non-operating income	142	366
Non-operating expenses
Interest expenses	60	73
Foreign exchange losses	48	77
Share of loss of entities accounted for using equity method	11	40
Other	16	16
Total non-operating expenses	137	208
Ordinary profit	1,207	1,281
Extraordinary income
Gain on sale of non-current assets	0	－
Gain on sale of investment securities	30	－
Gain on sales of investments in capital	45	－
Total extraordinary income	76	－
Extraordinary losses
Loss on retirement of non-current assets	1	1
Loss on sale of share of subsidiaries and associates	27	－
Total extraordinary losses	29	1
Income before income taxes	1,254	1,280
Income taxes-current	379	314
Income taxes-deferred	(59)	55
Total income taxes	319	370
Profit	935	909
Profit attributable to owners of parent	935	909

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(Quarterly Consolidated Statements of Comprehensive Income)

(Cumulative Second Quarter)

		(Millions of yen)
	Cumulative second quarter,	Cumulative second quarter,
	previous fiscal year	current fiscal year
	(April 1, 2021-	(April 1, 2022-
	September 30, 2021)	September 30, 2022)
Profit	935	909
Other comprehensive income
Valuation difference on available-for-sale securities	640	(244)
Deferred gains or losses on hedges	5	86
Foreign currency translation adjustment	431	1,050
Remeasurements of defined benefit plans, net of tax	(6)	(14)
Total other comprehensive income	1,070	878
Comprehensive income	2,005	1,788
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	2,005	1,788

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