Micronics Japan : FY2022 4Q Financial Results

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 Year Ended December 31, 2022

(Based on Japanese GAAP)

																				February 14, 2023
Company name:	MICRONICS JAPAN CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	6871	URL https://www.mjc.co.jp/en/
Representative:	President & CEO		Masayoshi Hasegawa
Inquiries:	Director & Senior Executive Officer
General Manager of Administration Division Futoru Saito				TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	March 30, 2023
Scheduled date to file Securities Report:		March 31, 2023
Scheduled date to commence dividend payments:		March 31, 2023
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:						Yes	(for institutional investors, analysts and the press)
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)
(1) Consolidated operating results														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		%
Year ended December 31, 2022		44,321		10.8	9,225		11.9				10,423	20.0	7,530		(8.6)
Year ended December 31, 2021		39,998		-	8,243		-			8,688	-	8,237		-
			Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
				share			owners of				assets			sales
									parent/equity
				Yen		Yen						%					%				%
Year ended December 31, 2022		195.69		195.43						21.1					20.0				20.8
Year ended December 31, 2021		215.14		214.66						28.1					19.5				20.6
(2) Consolidated financial position
			Total assets		Net assets				Equity ratio	Net assets per share
			Millions of yen	Millions of yen						%					Yen
As of December 31, 2022		54,385					38,631							70.9			1,000.48
As of December 31, 2021		49,737					33,058							66.3					856.72
(3) Consolidated cash flows
			Cash flows from	Cash flows from		Cash flows from	Cash and cash equivalents
			operating activities	investing activities		financing activities		at end of period
			Millions of yen	Millions of yen			Millions of yen		Millions of yen
Year ended December 31, 2022		8,395					(2,267)							(2,477)					21,004
Year ended December 31, 2021		7,382					(1,941)							(1,253)					16,914
2. Cash dividends
						Annual dividends per share							Total cash	Dividend payout	Ratio of dividends
																	to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end			Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen		Yen	Yen				Yen		Yen	Millions of yen	%			%
Year ended December 31, 2021		0.00			0.00	0.00				65.00			65.00		2,500	30.2			8.5
Year ended December 31, 2022		0.00			0.00	0.00				59.00			59.00		2,274	30.1			6.4
Year ending December 31, 2023		-			-	-				-					-				-
(Forecast)

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3. Forecast of consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 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
15,600	(20.3)	500	(87.8)	500	(88.8)	400	(86.1)	10.39
June 30, 2023

4. Notes

(1) Changes in significant subsidiaries during the year ended December 31, 2022No (changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) 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:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of December 31, 2022	40,025,316	shares	As of December 31, 2021	40,025,316	shares
Number of treasury shares at the end of the period
	As of December 31, 2022			1,481,226	shares	As of December 31, 2021		1,554,667	shares
Average number of shares during the period
	Year ended December 31, 2022	38,481,909	shares	Year ended December 31, 2021	38,288,993	shares

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Consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of December 31, 2021	As of December 31, 2022
Assets
Current assets
Cash and deposits	19,202	21,552
Notes and accounts receivable - trade	10,288	-
Notes receivable - trade	-	41
Accounts receivable - trade	-	8,250
Finished goods	635	889
Work in process	3,422	3,841
Raw materials and supplies	1,329	2,922
Consumption taxes refund receivable	536	418
Other	315	470
Allowance for doubtful accounts	(10)	(40)
Total current assets	35,719	38,347
Non-current assets
Property, plant and equipment
Buildings and structures	10,987	11,540
Accumulated depreciation and impairment	(7,394)	(7,696)
Buildings and structures, net	3,592	3,844
Machinery, equipment and vehicles	17,861	19,441
Accumulated depreciation and impairment	(14,414)	(15,663)
Machinery, equipment and vehicles, net	3,446	3,778
Land	2,082	3,791
Construction in progress	1,454	1,281
Other	4,507	4,483
Accumulated depreciation and impairment	(4,068)	(3,999)
Other, net	439	484
Total property, plant and equipment	11,015	13,179
Intangible assets	980	990
Investments and other assets
Investment securities	933	721
Retirement benefit asset	162	110
Deferred tax assets	70	141
Other	1,032	1,097
Allowance for doubtful accounts	(178)	(202)
Total investments and other assets	2,020	1,867
Total non-current assets	14,017	16,038
Total assets	49,737	54,385

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		(Millions of yen)
	As of December 31, 2021	As of December 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	6,187	5,352
Short-term borrowings	959	834
Accounts payable - other	1,395	1,863
Income taxes payable	2,257	1,321
Advances received	176	-
Contract liabilities	-	419
Provision for bonuses	1,179	1,222
Provision for bonuses for directors (and other officers)	301	398
Provision for product warranties	203	270
Other	1,559	1,456
Total current liabilities	14,219	13,139
Non-current liabilities
Long-term borrowings	371	439
Deferred tax liabilities	1	0
Retirement benefit liability	2,028	2,104
Asset retirement obligations	27	27
Other	31	42
Total non-current liabilities	2,459	2,614
Total liabilities	16,679	15,754
Net assets
Shareholders' equity
Share capital	5,018	5,018
Capital surplus	5,950	6,005
Retained earnings	22,188	27,194
Treasury shares	(1,383)	(1,312)
Total shareholders' equity	31,773	36,905
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	475	322
Foreign currency translation adjustment	534	1,258
Remeasurements of defined benefit plans	174	76
Total accumulated other comprehensive income	1,185	1,657
Share acquisition rights	99	68
Total net assets	33,058	38,631
Total liabilities and net assets	49,737	54,385

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	December 31, 2021	December 31, 2022
Net sales	39,998	44,321
Cost of sales	22,977	24,092
Gross profit	17,020	20,229
Selling, general and administrative expenses	8,776	11,003
Operating profit	8,243	9,225
Non-operating income
Interest income	21	39
Dividend income	35	29
Rental income	55	55
Received incentive	38	30
Refund income	0	15
Foreign exchange gains	245	986
Other	71	57
Total non-operating income	468	1,214
Non-operating expenses
Interest expenses	8	7
Rental expenses	2	2
Commission expenses	7	7
Loss on cancellation of insurance policies	4	-
Other	0	0
Total non-operating expenses	23	16
Ordinary profit	8,688	10,423
Extraordinary income
Gain on sale of non-current assets	1	5
Gain on sale of investment securities	2,596	-
Gain on reversal of share acquisition rights	0	3
Total extraordinary income	2,599	9
Extraordinary losses
Loss on sale of non-current assets	0	3
Loss on retirement of non-current assets	3	4
Impairment losses	38	62
Total extraordinary losses	42	71
Profit before income taxes	11,245	10,361
Income taxes - current	3,203	2,805
Income taxes - deferred	(195)	24
Total income taxes	3,008	2,830
Profit	8,237	7,530
Profit attributable to owners of parent	8,237	7,530

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