Takashima : PresentationMaterial (script)

• Thank you very much for attending today's financial results briefing for the second quarter of the fiscal year ending March 31, 2023 of Takashima Co., Ltd.
• I'm Takahiro Suzuki, director, managing executive officer and division chief of
  Business Administration Division.

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• Please take a look at the contents of today.
• Firstly, I will explain financial highlight of second quarter of fiscal year ending March, 2023.
• I will also explain about consolidated performance forecast and shareholder return.
• Next, Mr. Takashima, CEO of our company, will explain about our next medium-term management plan "Sustainability V(Value)" basic policy. He will also explain our current topics, which was disclosed on Nov. 14, implementation of two M&A and acquisition of treasury stock.

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• Now, I would like to tell financial highlights about second quarter of Fiscal year ending March, 2023.

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• First, I would like to talk about the highlight as an executive summary.
• Net sales increased from the same period of the previous year due to strong performance of the Electronics & Devices segment.
• Profits were lower than in the same period of the previous year due to an increase in selling, general and administrative expenses, resulting in an increase in sales and a decrease in profit.
• Forecast of fiscal year ending March, 2023 is not changed.
• Progress against the full-year forecast was slightly low, but within our expectations.
• Expectation about dividends of fiscal year ending March, 2023 is not changed, too.
• We expect dividends will be ¥140. ¥70 will be paid as interim dividends and ¥70 will be paid as year-end dividends.

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• Now I would like to talk about the consolidated statement of profit.
• Consolidated net sales of the Group for the first half of the current fiscal year increased 2.8% year on year to 38,817 million yen.
• Operating profit decreased 30.5% year on year to 596 million yen.
• Ordinary profit decreased 27.9% year on year to 694 million yen.
• Profit attributable to owners of parent decreased 26.4% to 509 million yen.
• Although net sales increased year-on-year, operating profit decreased due to an increase in selling, general, and administrative expenses.
• The increase in selling, general and administrative expenses was mainly due to costs associated with M&A activities in line with the capital allocation policy to transform the company into a sustainable growth company as agreed in a plan to meet continuous- listing criteria, and costs associated with the replacement of the core system to standardize and enhance the efficiency of operations and strengthen internal controls.
• In addition, expenses increased due to the relaunch of business activities after the Corona disaster.
• The percentage of progress toward the full-year forecast is 47.3% for net sales, 33.2% for operating profit, 36.6% for ordinary profit, and 36.4% for net profit.

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