Glosel : Consolidated Financial Results for the Three Months Ended June 30, 2022

Disclaimer: This document is an English translation of the original document in Japanese and has been prepared solely for reference purposes. In the event of any discrepancy between this English translation and the original in Japanese, the original shall prevail in all respects.

Consolidated Financial Results

for the Three Months Ended June 30, 2022

[Japanese GAAP]

July 28, 2022

Company name: GLOSEL Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Code number: 9995

URL: https://www.glosel.co.jp/

Representative: Takefumi Ueno, President, Representative Director

Contact: Tatsuya Takei, Senior Corporate Officer, Department Manager of Management Planning Department

Phone: [phone]

Scheduled date of filing quarterly securities report: August 10, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on quarterly financial results: Not available

Schedule of quarterly financial results briefing session: Not scheduled

(Amounts of 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)			(% indicates changes from the previous corresponding period.)
			Net sales				Operating profit		Ordinary profit		Profit attributable to
								owners of parent
	Three months ended	Million yen		%		Million yen	%			Million yen	%		Million yen	%
	June 30, 2022	16,141		3.3			427	312.3			561	362.0		415	-
	June 30, 2021	15,619		19.8			103	-		121	-		(216)	-
	(Note) Comprehensive	income: For	the three	months ended	June 30,	2022: ¥820	million [-%]
			For the three months ended June 30, 2021: ¥(201) million [-%]
		Basic earnings			Diluted earnings
			per share					per share
	Three months ended				Yen					Yen
	June 30, 2022	16.84					-
	June 30, 2021				(8.88)					-
(2) Consolidated Financial Position
			Total assets			Net assets	Equity ratio	Net assets per share
	As of				Million yen			Million yen		%		Yen
	June 30, 2022				40,580			22,812		56.2		922.39
	March 31, 2022				38,682			22,280		57.6		903.01

(Reference) Equity: As of June 30, 2022: ¥22,812 million As of March 31, 2022: ¥22,280 million

2. Cash dividends

			Annual dividends per share
		1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
Fiscal year ended		Yen	Yen		Yen	Yen	Yen
	-	0.00		-	12.00	12.00
March 31, 2022
Fiscal year ending		-
March 31, 2023
Fiscal year ending
March 31, 2023			0.00		-	12.00	12.00
(forecast)

(Note) Revision to the forecast of cash dividends most recently announced: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

							Profit		Basic earnings
	Net sales	Operating profit	Ordinary profit	attributable to
		per share
							owners of parent
First half	Million yen	%	Million yen	%	Million yen	%	Million yen		%	Yen
30,500	(4.2)	290	(6.7)	310	(14.5)	230		-	9.32
Full year	65,000	(3.4)	755	(20.8)	750	(37.5)	570		-	23.09

(Note) Revision to the financial results forecast announced most recently: None

* Notes:

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes 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, 2022	26,426,800 shares
	As of March 31, 2022	26,426,800 shares
(ii) Number of treasury shares at the end of the period
	As of June 30, 2022	1,694,975 shares
	As of March 31, 2022	1,753,245 shares

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

Three months ended June 30, 2022	24,688,123 shares
Three months ended June 30, 2021	24,350,013 shares

The total number of treasury shares at the end of the period includes the shares held in the ESOP (Employee Stock Ownership Plan) trust and board benefit trust accounts (1,321,610 shares as of June 30, 2022 and 1,379,880 shares as of March 31, 2022).

• Quarterly financial results reports are exempt from quarterly review 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)
  Business results forecasts and other forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions that are deemed as reasonable, and the Company does not guarantee the realization of these statements.
  Actual results may differ significantly from those statements due to various factors.

2. Quarterly Consolidated Financial Statements and Principal Notes

(1) Quarterly Consolidated Balance Sheets

				(Million yen)
			As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	2,625	3,108
Notes receivable - trade	20	0
Accounts receivable - trade	14,329	13,160
Electronically recorded monetary claims - operating	1,731	1,587
Merchandise and finished goods	15,734	18,339
Raw materials	16	29
Work in process	14	27
Other		261	436
Total current assets	34,733	36,690
Non-current assets
Property, plant and equipment
Buildings and structures	726	727
Accumulated depreciation	(568)	(573)
Buildings and structures, net			157	154
Tools, furniture and fixtures	248	262
Accumulated depreciation		(215)	(232)
Tools, furniture and fixtures, net	32	30
Land			817	817
Leased assets	154	155
Accumulated depreciation		(97)	(99)
Leased assets, net	56	56
Other			0	0
Total property, plant and equipment	1,064	1,058
Intangible assets
Software	94	88
Other		33	52
Total intangible assets	127	141
Investments and other assets
Investment securities	1,908	1,873
Deferred tax assets	46	43
Other	822	799
Allowance for doubtful accounts		(21)	(25)
Total investments and other assets	2,755	2,690
Total non-current assets			3,948	3,889
Total assets		38,682	40,580

				(Million yen)
			As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Accounts payable - trade	6,784	7,638
Short-term borrowings	6,916	7,601
Current portion of long-term borrowings	233	233
Income taxes payable	122	95
Provision for bonuses	-	149
Other		1,118	865
Total current liabilities	15,175	16,583
Non-current liabilities
Long-term borrowings	634	566
Retirement benefit liability	232	237
Provision for share awards	152	165
Deferred tax liabilities	62	115
Other	144	100
Total non-current liabilities			1,226	1,184
Total liabilities	16,401	17,767
Net assets
Shareholders' equity
Share capital	5,042	5,042
Capital surplus	4,720	4,720
Retained earnings	12,506	12,610
Treasury shares	(781)	(757)
Total shareholders' equity			21,487	21,615
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	(14)	(37)
Foreign currency translation adjustment	789	1,221
Remeasurements of defined benefit plans		17	13
Total accumulated other comprehensive income	792	1,197
Total net assets			22,280	22,812
Total liabilities and net assets		38,682	40,580