Summary: Consolidated Finacial Results for FY3/24 1Q

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

August 9, 2023

Consolidated Financial Results

for the Three Months Ended June 30, 2023

(Under Japanese GAAP)

Company name:	Yonex Co., Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	7906
URL:	https:// www.yonex.co.jp
Representative:	President and Representative Director	Alyssa Yoneyama
Inquiries:	Executive Managing Director	Shuichi Yoneyama
Telephone:	03-3839-7112

Scheduled date to file quarterly securities report:	August 10, 2023
Scheduled date to commence dividend payments:	－
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	No

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

June 30, 2023

27,992

18.1

2,774

(18.9)

3,245

(15.9)

2,424

(19.9)

June 30, 2022

23,694

46.5

3,422

160.4

3,859

184.3

3,025

219.3

Basic earnings

Diluted earnings

per share

per share

Three months ended

Yen

Yen

June 30, 2023

27.82

－

June 30, 2022

34.68

－

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

As of

Millions of yen

Millions of yen

%

June 30, 2023

81,780

55,177

67.3

March 31, 2023

79,421

53,099

66.6

2. Cash dividends

Annual dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

－

6.00

－

7.00

13.00

March 31, 2023

Fiscal year ending

－

March 31, 2024

Fiscal year ending

7.00

－

7.00

14.00

March 31, 2024 (Forecast)

3. Forecast of consolidated financial results for the 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
Six months ending	57,000	13.8	6,200	(12.9)	6,200	(20.5)	4,400	(21.4)	50.49
September 30, 2023
Full year	116,000	8.4	10,700	6.3	10,700	7.4	7,800	6.4	89.50

Note: Revisions to the forecast of consolidated financial results most recently announced: No

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2023

As of March 31, 2023

93,620,800

93,620,800

(ii) Number of treasury shares at the end of the period

As of June 30, 2023

As of March 31, 2023

6,469,556

6,469,556

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2023

Three months ended June 30, 2022

87,151,244

87,249,868

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits	16,912	15,436
Notes and accounts receivable - trade	15,030	17,859
Merchandise and finished goods	14,871	14,244
Work in process	1,941	2,025
Raw materials and supplies	2,019	2,368
Other	2,757	3,109
Allowance for doubtful accounts	(66)	(61)
Total current assets	53,465	54,983
Non-current assets
Property, plant and equipment
Buildings, net	5,155	5,105
Land	8,916	8,966
Other, net	6,942	7,603
Total property, plant and equipment	21,014	21,675
Intangible assets
Software	1,893	1,845
Software in progress	40	138
Goodwill	43	29
Other	15	15
Total intangible assets	1,994	2,028
Investments and other assets
Investment securities	217	221
Long-term time deposits	400	400
Deferred tax assets	1,724	1,854
Other	605	617
Allowance for doubtful accounts	(0)	(0)
Total investments and other assets	2,946	3,093
Total non-current assets	25,955	26,797
Total assets		79,421	81,780

								(Millions of yen)
							As of March 31, 2023	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade			7,128	6,121
Accounts payable - other				3,382	3,676
Current portion of long-term borrowings			705	705
Income taxes payable					917	1,475
Accrued consumption taxes				0	16
Provision for bonuses					1,200	1,558
Provision	for	bonuses for	directors (and	43	11
other officers)
Provision for point card certificates			4	5
Other							3,959	4,022
Total current liabilities				17,342	17,592
Non-current liabilities
Long-term borrowings				2,373	2,196
Retirement benefit liability				2,702	2,654
Provision	for	retirement	benefits	for	209	－
directors (and other officers)
Provision for share awards				139	160
Asset retirement obligations				－	59
Long-term guarantee deposits			2,002	2,018
Other							1,552	1,920
Total non-current liabilities				8,979	9,010
Total liabilities						26,321	26,603
Net assets
Shareholders' equity
Share capital						4,706	4,706
Capital surplus						8,202	8,202
Retained earnings					40,586	42,397
Treasury shares					(2,190)	(2,190)
Total shareholders' equity				51,305	53,116
Accumulated other comprehensive income
Valuation	difference	on available-for-sale	26	29
securities
Foreign currency translation adjustment			1,686	1,950
Remeasurements of defined benefit plans			(92)	(89)
Total accumulated	other	comprehensive	1,619	1,890
income
Non-controlling interests					174	170
Total net assets						53,099	55,177
Total liabilities and net assets				79,421	81,780

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2022	June 30, 2023
Net sales	23,694	27,992
Cost of sales	12,824	15,737
Gross profit	10,870	12,255
Selling, general and administrative expenses	7,447	9,480
Operating profit	3,422	2,774
Non-operating income
Interest income	14	17
Rental income	3	1
Foreign exchange gains	414	454
Other	19	15
Total non-operating income	452	489
Non-operating expenses
Interest expenses	9	18
Other	5	0
Total non-operating expenses	15	18
Ordinary profit	3,859	3,245
Extraordinary income
National subsidies	311	－
Total extraordinary income	311	－
Profit before income taxes	4,171	3,245
Income taxes - current	1,129	937
Income taxes - deferred	10	(128)
Total income taxes	1,139	809
Profit	3,031	2,435
Profit attributable to non-controlling interests	6	11
Profit attributable to owners of parent		3,025	2,424