Shoei : Consolidated Financial Results for the 3Q 2022

July 27 2022

SHOEI CO., LTD.

Consolidated Financial Results

for the Third Quarter of the Fiscal Year Ending September 30, 2022

Name of Registrant	SHOEI CO., LTD.
Code No:	7839
Securities Traded	Tokyo Stock Exchange, Prime Market
Headquarters	Tokyo, Japan
(URLhttps://www.shoei.com/)
Representative:	Kenichiro Ishida, President and Representative Director
Contact:	Hiroshi Yamaguchi, Director and General Manager of
	Business & Financial Management Department
	INDEX

Ⅰ．Financial Summary Ⅱ．Consolidated Forecasts

for The Fiscal Year Ending September 30, 2022 Ⅲ．Consolidated Financial Statementｓ

- 1 -

Ⅰ．Financial Summary

1) Operating Performance

Millions of Yen

	Oct.20-Jun.21		Oct.21-Jun.22 % Changes
Net Sales		17,519		21,133		20.6
Operating Income	4,860	6,400	31.7
Ordinary Income	4,920	6,456	31.2
Profit attributable to owners of parent	3,428	4,369	27.4
		Yen
Per Share Amounts
Net Income	127.69	162.90
Net Income, Diluted	－		－
Notes:
1.Earnings (Losses) of Affiliates in Equity Method:
		Millions of Yen
	Oct.20-Jun.21Oct.21-Jun.22
		－		－
2.Average Number of Shares Outstanding During The Period (Consolidated):
		Shares
	Oct.20-Jun.21Oct.21-Jun.22
	26,851,062		26,823,689
3.Number of Treasury Stocks as of Jun 30, 2022:	27,948

4.Change of Accounting Method:

(Application of Accounting Standard for Revenue Recognition)

The Company adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020, hereinafter referred to as the "Accounting Standard for Revenue Recognition") from the beginning of the first quarter of the current fiscal year and recognized revenue when control of promised goods or services is transferred to customers in an amount that is expected to be received in exchange for those goods or services.

With regard to the application of the Accounting Standard for Revenue Recognition, in accordance with the transitional treatment stipulated in the provisions of paragraph 84 of the Accounting Standard for Revenue Recognition, the cumulative effect of retrospectively applying the new accounting policy prior to the beginning of the first quarter of the current fiscal year was added to or deducted from retained earnings at the beginning of the first quarter of the current fiscal year, and a new accounting policy was applied from the beginning balance of the current fiscal year.

As a result, there was no effect on the Company's profit and loss for the first quarter of the current fiscal year. In addition, there is no effect on the balance of retained earnings at the beginning of the fiscal year.

- 2 -

(Application of Accounting Standard for Fair Value Measurement)

The Company has applied "Accounting Standard for Fair Value Measurement" (ASBJ Statement No.30, July 4, 2019; hereinafter, "Fair Value Accounting Standards") and others from October 1, 2021. In accordance with the transitional treatment set forth in Article 19 of Fair Value Accounting Standards and Article 44-2 of "Accounting Standard for Financial Instruments" (ASBJ Statement No.10, July 4, 2019), the Company has applied prospectively a new accounting policy prescribed by Fair Value Accounting Standards and others. This has no effect on the quarterly consolidated financial statement.

5.Percentages of net sales, operating income, ordinary income and net income show changes from those in the corresponding period of the previous year.

6.Amounts Less than 1million are omitted.

7.The net income per share is calculated using the weighted average number of shares (excluding treasury stock)during the period.

2) Financial Position

Millions of Yen

	Sep.30,21	Jun.30,22
Total Assets	23,778			26,307
Net Assets	18,528			20,948
	Percentage
Net Assets to Total Assets	77.9%			79.6%
	Yen
Net Assets per Share	690.91			780.83

Notes:

1.Number of Shares Outstanding on September 30, 2021 and Jun 30, 2022 (Consolidated):

Shares

Sep.30,21 Jun.30,22

26,856,858 26,856,858

Ⅱ．Consolidated Forecasts

for The Fiscal Year Ending September 30, 2022

	Millions of Yen
	Oct.21-Sep.22
Net Sales	28,930
Operating Income	8,060
Ordinary Income	8,060
Net Income	5,650
	Yen
Net Income Per Share	210.62

- 3 -

Ⅲ．Consolidated	Financial Statements
Consolidated Statements of Income
				(Thousands of yen)
			Nine months ended	Nine months ended
			June 30, 2021	June 30, 2022
Net sales			17,519,555	21,133,218
Cost of sales			9,946,443	11,433,436
Gross profit			7,573,112	9,699,782
Selling, general and administrative expenses	2,712,519	3,299,363
Operating profit			4,860,592	6,400,418
Non-operating income
Interest income			791	119
Foreign exchange gains			44,395	44,147
Insurance claim income			1,889	20
Subsidy income			10,829	8,973
Other			9,274	11,610
Total non-operating income			67,180	64,870
Non-operating expenses
Interest expenses			4,376	5,668
Payments for employment	of persons with	2,350	2,750
disabilities
Other			793	819
Total non-operating expenses	7,519	9,238
Ordinary profit			4,920,253	6,456,050
Extraordinary income
Gain on sale of non-current assets	1,680	51
Total extraordinary income			1,680	51
Profit before income taxes			4,921,933	6,456,102
Income taxes - current			1,486,256	2,068,376
Income taxes - deferred			7,055	18,235
Total income taxes			1,493,311	2,086,612
Profit			3,428,621	4,369,489
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent	3,428,621	4,369,489

－ 4 －

Consolidated Statements of Comprehensive Income

						(Thousands of yen)
					Nine months ended	Nine months ended
					June 30, 2021	June 30, 2022
Profit					3,428,621	4,369,489
Other comprehensive income
Deferred gains or losses on hedges			-14,082	-21,009
Foreign currency translation adjustment		303,855	197,872
Remeasurements	of defined	benefit	plans, net	21,451	26,770
of tax
Total other comprehensive income			311,224	203,633
Comprehensive income				3,739,846	4,573,123
Comprehensive income attributable to
Comprehensive	income attributable	to owners	3,739,846	4,573,123
of parent
Quarterly comprehensive	income	for	non-	-	-
controlling interests

－ 5 －