Meiji Electric Industries : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022 (Based on Japanese GAAP)

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 Three Months Ended June 30, 2022 (Based on Japanese GAAP)

				July 29, 2022
Company name:	MEIJI ELECTRIC INDUSTRIES CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	3388	URL https://www.meijidenki.co.jp/
Representative:	President and Representative Director	Hiroki Sugiwaki
Inquiries:	Administration General Manager	Yoshihide Atsumi	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 12, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

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
	Millions of yen		%	Millions of yen	%	Millions of yen			%	Millions of yen		%
Three months ended June 30, 2022	13,658	(10.9)		71	(77.7)		203		(50.1)		144		(48.4)
Three months ended June 30, 2021	15,321		8.8		321	58.2		407		52.4		280		63.7
	Earnings per share		Diluted earnings per share
			Yen					Yen
Three months ended June 30, 2022			11.46					-
Three months ended June 30, 2021			24.50					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen					%
As of June 30, 2022		41,957					27,190				64.3
As of March 31, 2022		44,666					27,328				60.7
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		-			20.00			-				27.00			47.00
Year ending March 31, 2023		-
Year ending March 31, 2023 (Forecast)					20.00			-				28.00			48.00

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
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
34,500	8.2	1,020	14.4	1,100	(4.2)	760	(10.8)	65.76
September 30, 2022
Full year	73,500	8.5	2,710	34.9	2,870	17.7	2,000	12.3	173.04

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 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 June 30, 2022	12,717,120	shares	As of March 31, 2022	12,717,120	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	65,771	shares	As of March 31, 2022	65,771	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2022	12,651,349	shares	Three months ended June 30, 2021	11,467,349	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	7,749,181	7,672,802
Notes and accounts receivable - trade	16,252,930	11,886,694
Electronically recorded monetary claims - operating	8,527,181	9,219,343
Merchandise and finished goods	4,095,061	4,660,229
Work in process	342,209	781,048
Raw materials and supplies	46,338	44,677
Other	509,507	606,663
Allowance for doubtful accounts	(32,235)	(42,792)
Total current assets	37,490,176	34,828,667
Non-current assets
Property, plant and equipment	3,662,614	3,638,676
Intangible assets	240,850	382,262
Investments and other assets	3,272,517	3,107,624
Total non-current assets	7,175,983	7,128,563
Total assets	44,666,159	41,957,230
Liabilities
Current liabilities
Notes and accounts payable - trade	8,756,239	6,011,207
Electronically recorded obligations - operating	5,667,843	6,227,918
Short-term borrowings	225,658	198,255
Income taxes payable	479,206	90,877
Provision for bonuses	481,571	246,838
Provision for bonuses for directors (and other officers)	2,240	18,829
Other	1,344,064	1,643,596
Total current liabilities	16,956,824	14,437,522
Non-current liabilities
Provision for retirement benefits for directors (and other	3,550	3,550
officers)
Other	377,442	325,526
Total non-current liabilities	380,992	329,076
Total liabilities		17,337,817	14,766,599

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			(Thousands of yen)
		As of March 31, 2022	As of June 30, 2022
Net assets
Shareholders' equity
Share capital	1,624,866	1,624,866
Capital surplus	1,957,909	1,957,909
Retained earnings	22,204,363	22,007,709
Treasury shares	(32,756)	(32,756)
Total shareholders' equity	25,754,383	25,557,729
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,340,636	1,213,183
Foreign currency translation adjustment	13,725	168,327
Remeasurements of defined benefit plans	23,703	37,474
Total accumulated other comprehensive income	1,378,066	1,418,986
Non-controlling interests	195,892	213,914
Total net assets	27,328,342	27,190,630
Total liabilities and net assets		44,666,159	41,957,230

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Three months ended	Three months ended
		June 30, 2021	June 30, 2022
Net sales	15,321,781	13,658,804
Cost of sales	13,246,025	11,743,521
Gross profit	2,075,756	1,915,282
Selling, general and administrative expenses	1,753,828	1,843,523
Operating profit	321,927	71,759
Non-operating income
Interest income	524	518
Dividend income	26,492	34,585
Purchase discounts	29,224	35,679
Foreign exchange gains	20,067	64,462
Other	11,635	15,620
Total non-operating income	87,943	150,867
Non-operating expenses
Interest expenses	1,737	2,031
Loss on valuation of derivatives	-	17,345
Commitment fees	450	-
Other	2	-
Total non-operating expenses	2,189	19,377
Ordinary profit	407,681	203,249
Extraordinary income
Gain on sale of non-current assets	-	3,874
Total extraordinary income	-	3,874
Extraordinary losses
Loss on retirement of non-current assets	32	30
Total extraordinary losses	32	30
Profit before income taxes	407,649	207,093
Income taxes	112,513	59,346
Profit	295,136	147,746
Profit attributable to non-controlling interests	14,174	2,814
Profit attributable to owners of parent		280,962	144,932

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