New Cosmos Electric : Summary of Consolidated Financial Results for the Fiscal Year ended March 31, 2023 (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 Fiscal Year ended March 31, 2023 (Based on Japanese GAAP)

May 15, 2023

Company name:

NEW COSMOS ELECTRIC CO., LTD.

Stock exchange listing:

Tokyo

Stock code:

6824

URL

https://www.new-cosmos.co.jp/

Representative:

President and Representative Director

Yoshinori Takahashi

Inquiries:

Director,Senior Corporate Officer,General

Taizo Murata

TEL

06-6308-3112

Manager of Administration Division

Scheduled date of ordinary general meeting of shareholders:

June 29, 2023

Scheduled date to file Securities Report:

June 29, 2023

Scheduled date to commence dividend payments:

June 30, 2023

Preparation of supplementary material on financial results:

None

Holding of financial results meeting:

None

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(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

%

Fiscal year ended March 31, 2023

37,206

8.4

5,693

4.8

6,269

3.7

3,736

(1.0)

Fiscal year ended March 31, 2022

34,335

16.1

5,432

57.7

6,045

62.8

3,775

53.5

Note: Comprehensive income

For the fiscal year ended March 31, 2023:

¥4,600 million

[9.1%]

For the fiscal year ended March 31, 2022:

¥4,215 million

[23.7%]

Basic earnings

Diluted earnings per

Return on equity

Ratio of ordinary

Ratio of operating

per share

share

profit to total assets

profit to net sales

Yen

Yen

%

%

%

Fiscal year ended March 31, 2023

302.75

-

9.8

11.9

15.3

Fiscal year ended March 31, 2022

304.93

-

10.8

12.6

15.8

Reference:

Share of profit (loss) of entities accounted for using equity method

For the fiscal year ended March 31, 2023:

¥96 million

For the fiscal year ended March 31, 2022:

¥73 million

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of March 31, 2023

54,930

43,031

73.1

3,250.91

As of March 31, 2022

50,181

39,002

72.8

2,959.81

Reference:

Equity

As of March 31, 2023:

40,135 million

As of March 31, 2022:

36,515 million

(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

Fiscal year ended March 31, 2023

2,619

(1,487)

(1,011)

15,138

Fiscal year ended March 31, 2022

3,303

(2,198)

(990)

14,572

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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	%	%
Fiscal year ended March 31, 2022	-	0.00	-	37.00	37.00	456	12.1	1.3
Fiscal year ended March 31, 2023	-	0.00	-	47.00	47.00	580	15.5	1.5
Fiscal year ending March 31, 2024	-	0.00	-	47.00	47.00		20.3
(Forecast)

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

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

Full year

41,294

11.0

4,780

(16.0)

5,014

(20.0)

2,862

(23.4)

231.70

4. Notes

(1) Changes in significant subsidiaries during the fiscal year ended March 31, 2023

Yes

(changes in specified subsidiaries resulting in the change in scope of consolidation):

Newly included:

1 company (NEW COSMOS INTELLIGENT EQUIPMENT (LIAONING) CO., LTD.)

Excluded:

None

(2) Changes in accounting policies, changes in accounting estimates, and restatement

Changes in accounting policies due to revisions to accounting standards and other regulations:

None

Changes in accounting policies due to other reasons:

None

Changes in accounting estimates:

None

Restatement:

None

(3) Number of issued shares (common shares)

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

As of March 31, 2023

12,561,000 shares

As of March 31, 2022

12,561,000 shares

Number of treasury shares at the end of the period

As of March 31, 2023

215,027 shares

As of March 31, 2022

223,910 shares

Average number of shares during the period

Fiscal year ended March 31, 2023

12,343,257

shares

Fiscal year ended March 31, 2022

12,381,480 shares

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters

(Cautionary statement with respect to forward-looking statements)

The forward-looking statements contained in this summary are based on the information currently available and certain assumptions considered reasonable. Actual operating results may differ significantly from these forecasts due to various factors.

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Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	15,184,908	15,676,551
Notes and accounts receivable - trade	7,054,231	6,696,429
Electronically recorded monetary claims - operating	2,300,791	2,393,915
Merchandise and finished goods	2,605,041	3,747,581
Work in process	1,847,285	2,372,880
Raw materials and supplies	3,870,908	5,426,455
Other	569,758	931,009
Allowance for doubtful accounts	(76,798)	(62,590)
Total current assets	33,356,127	37,182,233
Non-current assets
Property, plant and equipment
Buildings and structures, net	2,289,183	2,210,310
Machinery, equipment and vehicles, net	962,304	1,012,725
Land	3,149,257	3,143,957
Construction in progress	320,261	1,204,096
Other, net	836,210	674,169
Total property, plant and equipment	7,557,217	8,245,259
Intangible assets
Goodwill	1,246,444	1,111,694
Software	163,747	172,509
Software in progress	25,925	52,480
Other	34,218	103,759
Total intangible assets	1,470,335	1,440,443
Investments and other assets
Investment securities	5,176,373	5,294,188
Deferred tax assets	426,881	416,162
Retirement benefit asset	600,093	600,515
Other	1,595,589	1,752,352
Allowance for doubtful accounts	(1,050)	(1,050)
Total investments and other assets	7,797,887	8,062,169
Total non-current assets	16,825,440	17,747,872
Total assets	50,181,567	54,930,106

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			(Thousands of yen)
		As of March 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	2,124,221	2,494,662
Electronically recorded obligations - operating	2,265,073	2,943,807
Short-term borrowings	50,000	50,000
Current portion of long-term borrowings	410,000	345,000
Income taxes payable	1,205,890	458,091
Provision for bonuses	749,888	830,634
Provision for product warranties	155,604	168,907
Other	1,728,917	2,376,601
Total current liabilities	8,689,597	9,667,705
Non-current liabilities
Long-term borrowings	792,500	447,500
Deferred tax liabilities	300,992	317,116
Provision for retirement benefits for directors (and other	136,750	121,091
officers)
Retirement benefit liability	1,173,669	1,197,907
Other	85,424	147,763
Total non-current liabilities	2,489,337	2,231,377
Total liabilities	11,178,934	11,899,083
Net assets
Shareholders' equity
Share capital	1,460,000	1,460,000
Capital surplus	942,938	944,137
Retained earnings	32,806,871	36,087,293
Treasury shares	(346,345)	(332,651)
Total shareholders' equity	34,863,464	38,158,779
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,220,595	1,310,496
Foreign currency translation adjustment	275,853	561,280
Remeasurements of defined benefit plans	155,479	105,077
Total accumulated other comprehensive income	1,651,927	1,976,854
Non-controlling interests	2,487,240	2,895,387
Total net assets	39,002,633	43,031,022
Total liabilities and net assets	50,181,567	54,930,106

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

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		March 31, 2022	March 31, 2023
Net sales	34,335,851	37,206,881
Cost of sales	17,864,253	19,428,873
Gross profit	16,471,598	17,778,008
Selling, general and administrative expenses
Salaries and allowances	3,628,251	3,950,340
Remuneration for directors (and other officers)	320,427	346,740
Provision for bonuses	500,021	509,486
Retirement benefit expenses	99,607	108,823
Provision for retirement benefits for directors (and other	23,475	34,651
officers)
Experimentation and research expenses	2,158,325	2,029,183
Provision for product warranties	150,907	134,581
Provision of allowance for doubtful accounts	(7,252)	(14,505)
Other	4,164,953	4,985,280
Total selling, general and administrative expenses	11,038,716	12,084,581
Operating profit	5,432,882	5,693,426
Non-operating income
Interest income	13,050	15,581
Dividend income	85,995	97,927
Share of profit of entities accounted for using equity method	73,173	96,521
Foreign exchange gains	337,913	289,835
Other	111,752	90,025
Total non-operating income	621,885	589,891
Non-operating expenses
Interest expenses	5,374	3,858
Other	4,392	9,691
Total non-operating expenses	9,767	13,550
Ordinary profit	6,045,000	6,269,768
Extraordinary income
Gain on sale of non-current assets	-	4,341
Gain on sale of investment securities	-	9
Gain on liquidation of subsidiaries and associates	-	34,080
Total extraordinary income	-	38,432
Extraordinary losses
Loss on sale of non-current assets	45	174
Loss on retirement of non-current assets	7,745	86,539
Loss on valuation of investment securities	9,624	-
Dismantlement expenses	-	189,840
Total extraordinary losses	17,415	276,553
Profit before income taxes	6,027,584	6,031,646
Income taxes - current	1,865,409	1,763,846
Income taxes - deferred	(136,605)	11,071
Total income taxes	1,728,804	1,774,917
Profit	4,298,779	4,256,729
Profit attributable to non-controlling interests	523,324	519,834
Profit attributable to owners of parent	3,775,455	3,736,894

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