Punch Industry : [Delayed］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)

																		August 9, 2022
Company name:	PUNCH INDUSTRY CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	6165	URL	http://www.punch.co.jp/ir/
Representative:	Chief Executive Officer				Tetsuji Morikubo
Inquiries:	Chief Financial Officer				Takao Murata		TEL	03-5753-3130
Scheduled date to file Quarterly Securities Report:				August 10, 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		10,234		10.3		705	(11.4)			698			(8.3)		427		(18.7)
Three months ended June 30, 2021		9,278		29.4		796	-			761			-		526		-
			Earnings per share			Diluted earnings per share
						Yen				Yen
Three months ended June 30, 2022				19.32				19.13
Three months ended June 30, 2021				24.13				24.00
(2) Consolidated financial position
			Total assets				Net assets	Equity ratio
			Millions of yen			Millions of yen						%
As of June 30, 2022				29,748					17,717					59.4
As of March 31, 2022				28,774					16,307					56.5
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			-		4.00			-					9.00			13.00
Year ending March 31, 2023			-
Year ending March 31, 2023 (Forecast)				6.50			-					6.50			13.00

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
21,700	11.1	1,530	(13.5)	1,520	(12.4)	850	(32.5)	37.94
September 30, 2022
Full year	44,300	12.6	3,100	1.9	3,070	2.1	1,850	(9.3)	82.57

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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

No

(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	22,532,400	shares	As of March 31, 2022	22,332,400	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	275,868	shares	As of March 31, 2022	275,868	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2022	22,140,597	shares	Three months ended June 30, 2021	21,818,994	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	4,816,271	4,396,066
Notes receivable - trade	2,043,258	1,792,674
Accounts receivable - trade	9,191,812	9,879,777
Merchandise and finished goods	2,408,754	2,607,826
Work in process	813,141	740,217
Raw materials and supplies	1,569,159	1,747,617
Other	485,384	812,557
Allowance for doubtful accounts	(48,002)	(53,536)
Total current assets	21,279,780	21,923,201
Non-current assets
Property, plant and equipment
Buildings and structures	5,905,167	6,096,709
Accumulated depreciation	(4,140,358)	(4,248,725)
Buildings and structures, net	1,764,809	1,847,984
Machinery, equipment and vehicles	16,310,582	16,982,927
Accumulated depreciation	(12,703,869)	(13,256,482)
Machinery, equipment and vehicles, net	3,606,712	3,726,445
Tools, furniture and fixtures	2,514,054	2,645,862
Accumulated depreciation	(2,081,516)	(2,196,153)
Tools, furniture and fixtures, net	432,538	449,708
Land	778,847	781,589
Construction in progress	168,440	280,953
Other	392,570	456,679
Accumulated depreciation	(131,311)	(183,588)
Other, net	261,259	273,091
Total property, plant and equipment	7,012,607	7,359,772
Intangible assets
Other	177,903	181,675
Total intangible assets	177,903	181,675
Investments and other assets
Investments and other assets	317,431	299,298
Allowance for doubtful accounts	(13,623)	(15,019)
Total investments and other assets	303,807	284,279
Total non-current assets	7,494,318	7,825,727
Total assets		28,774,098	29,748,928

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			(Thousands of yen)
		As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	2,738,725	2,652,606
Electronically recorded obligations - operating	1,078,059	1,131,577
Short-term borrowings	1,774,655	1,571,820
Current portion of long-term borrowings	710,978	861,948
Income taxes payable	384,126	393,030
Provision for bonuses	400,265	434,235
Provision for directors' bonuses	17,183	-
Other	2,897,059	2,306,680
Total current liabilities	10,001,052	9,351,898
Non-current liabilities
Long-term borrowings	907,890	1,062,683
Retirement benefit liability	1,145,220	1,195,074
Provision for bonuses	-	1,021
Provision for directors' bonuses	-	4,086
Other	412,726	416,298
Total non-current liabilities	2,465,836	2,679,163
Total liabilities	12,466,888	12,031,061
Net assets
Shareholders' equity
Share capital	2,944,776	2,987,581
Capital surplus	2,512,189	2,574,844
Retained earnings	9,057,592	9,266,989
Treasury shares	(136,301)	(136,301)
Total shareholders' equity	14,378,256	14,693,114
Accumulated other comprehensive income
Foreign currency translation adjustment	1,962,065	3,084,619
Remeasurements of defined benefit plans	(75,761)	(105,170)
Total accumulated other comprehensive income	1,886,303	2,979,449
Share acquisition rights	26,130	25,670
Non-controlling interests	16,518	19,632
Total net assets	16,307,209	17,717,866
Total liabilities and net assets		28,774,098	29,748,928

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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	9,278,668	10,234,380
Cost of sales	6,521,748	7,343,069
Gross profit	2,756,919	2,891,311
Selling, general and administrative expenses	1,960,186	2,185,427
Operating profit	796,733	705,884
Non-operating income
Interest income	10,538	13,810
Gain on sale of scraps	5,685	9,057
Other	14,390	15,339
Total non-operating income	30,614	38,206
Non-operating expenses
Interest expenses	16,621	11,830
Foreign exchange losses	42,189	31,419
Other	6,769	2,398
Total non-operating expenses	65,581	45,648
Ordinary profit	761,765	698,441
Extraordinary income
Gain on sale of non-current assets	917	2,484
Total extraordinary income	917	2,484
Extraordinary losses
Loss on sale and retirement of non-current assets	1,244	5,475
Impairment losses	30,348	55,102
Total extraordinary losses	31,592	60,578
Profit before income taxes	731,090	640,348
Income taxes - current	168,316	175,480
Income taxes - refund	(2,097)	(4,085)
Income taxes - deferred	37,654	39,159
Total income taxes	203,873	210,554
Net Profit	527,217	429,793
Profit attributable to non-controlling interests	774	2,037
Profit attributable to owners of parent		526,442	427,756

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