JCU : Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024

August 3, 2023

Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024

(Three Months Ended June 30, 2023)

		[Japanese GAAP]
Company name:	JCU CORPORATION	Listing: Tokyo Stock Exchange
Stock code:	4975	URL: https://www.jcu-i.com/
Representative:	Masashi Kimura, Chairman & CEO
Contact:	Yoji Inoue, Director, Managing Executive Officer, General Manager of Corporate Strategy Office
	Tel: [phone]
Scheduled date of filing of Quarterly Report:	August 8, 2023
Scheduled date of payment of dividend:	-
Preparation of supplementary materials for quarterly financial results:	Yes
Holding of quarterly financial results meeting:	None

Note: The original disclosure in Japanese was released on August 3, 2023 at 15:00. (GMT +9).

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (April 1, 2023-June 30, 2023)

(1) Consolidated results of operations				(Percentages represent year-over-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%
Three months ended Jun. 30, 2023	5,225		(15.2)	1,379	(31.7)	1,383	(37.3)	944	(41.2)
Three months ended Jun. 30, 2022	6,160		11.7	2,020	4.1	2,206	7.8	1,607	15.6

Note: Comprehensive income (million yen)

Three months ended Jun. 30, 2023:	1,463 (down 48.0%)
Three months ended Jun. 30, 2022:	2,815 (up 16.5%)

	Net income per share	Diluted net income
	per share
	Yen	Yen
Three months ended Jun. 30, 2023	36.85	-
Three months ended Jun. 30, 2022	61.97	-

(2) Consolidated financial position

		Total assets	Net assets		Equity ratio
		Million yen	Million yen	%
As of Jun. 30, 2023		43,407		38,479	88.6
As of Mar. 31, 2023		44,901		37,861	84.3
Reference: Shareholders' equity (million yen)	As of Jun. 30, 2023: 38,479	As of Mar. 31, 2023: 37,861

2. Dividends

				Dividends per share
	1Q-end		2Q-end	3Q-end		Year-end	Total
		Yen	Yen	Yen		Yen	Yen
FY3/23		-	33.00	-		33.00	66.00
FY3/24		-
FY3/24 (forecasts)			35.00	-		35.00	70.00

Note: Revisions to the most recently announced dividend forecast: None

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023-March 31, 2024)

(Percentages represent year-over-year changes)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Net income per share
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
First half	10,700		(18.4)	2,590	(44.7)	2,590	(45.1)	1,750	(47.4)	68.28
Full year	25,000		(7.9)	7,000	(24.6)	7,000	(25.3)	4,800	(20.2)	187.27

Note: Revisions to the most recently announced consolidated forecast: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change in scope of consolidation): None

Newly added: -

Excluded: -

1. Application of special accounting methods for presenting quarterly consolidated financial statements: None
2. Changes in accounting policies and accounting estimates, and restatements

1)	Changes in accounting policies due to revisions in accounting standards, others:	None
2)	Changes in accounting policies other than 1) above:	None
3)	Changes in accounting estimates:	None
4)	Restatements:	None

(4) Number of outstanding shares (common stock)

1) Number of shares issued at the end of the period (including treasury shares)

As of Jun. 30, 2023:	27,235,477 shares	As of Mar. 31, 2023:	27,235,477 shares
2) Number of treasury shares at the end of the period
As of Jun. 30, 2023:	1,608,570 shares	As of Mar. 31, 2023:	1,608,529 shares
3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2023:	25,626,939 shares	Three months ended Jun. 30, 2022:	25,933,280 shares

Note 1: The quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.

Note 2: Cautionary statement with respect to forward-looking statements and other special items

Forecasts of future performance in this report are based on assumptions judged to be valid and information currently available to the Company. Actual results may differ substantially from these forecasts for a number of reasons.

	JCU CORPORATION (4975) Financial Results for the First Quarter of FY3/24
Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Consolidated Forecast and Other Forward -looking Statements	4
2. Quarterly Consolidated Financial Statements and Notes	5
(1)	Quarterly Consolidated Balance Sheet	5
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	7
(3)	Notes to Quarterly Consolidated Financial Statements	9
	Going Concern Assumption	9
	Significant Changes in Shareholders' Equity	9
	Segment Information	9
	Material Subsequent Events	11

1

JCU CORPORATION (4975) Financial Results for the First Quarter of FY3/24

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

During the first three months of the fiscal year ending March 31, 2024 (hereinafter the "period under review"), the domestic economy saw a recovery of consumer spending thanks to the lifting of behavioral restrictions. The manufacturing sector increased export moderately though impacted by the decelerating overseas economy. Companies both in the manufacturing and non-manufacturing industries increased capital expenditures with a strong willingness to invest in plant and equipment.

Overseas, in China, consumer spending recovered thanks to the lifting of its zero -COVID policy. However, production in the manufacturing industry showed a modest recovery due to stagnant demand from overseas market and other factors. In Europe and the United States, consumer spending was sluggish due to strong inflationary pressure. In addition, though soaring energy prices was coming to a halt, resource prices continued to soar, which needs close monitoring on an ongoing basis.

As for the business environment surrounding the JCU Group, the stagnation of consumer spending and the ending of stay-at-home demand resulted in sluggish demand for high-performance electronic devices such as smartphones, PCs, and tablets, which caused decreases in demand for PWBs for high -performance electronic devices and semiconductor package substrates. In the automotive industry, we saw a decrease in automobile production mainly in Japan and China, with the lingering impact of worldwide semiconductor shortages, despite an improving trend in supply-chain disruption caused by the spread of COVID-19 infections.

The results of operations of the JCU Group were as follows.

(Millions of yen, unless otherwise stated)

		Previous period	Current period		Year-over-year %
		(Apr. 1, 2022-Jun. 30, 2022)	(Apr. 1, 2023-Jun. 30, 2023)	change
Net sales		6,160			5,225	Down 15.2%
Operating profit	2,020			1,379	Down 31.7%
Ordinary profit	2,206			1,383	Down 37.3%
Profit attributable to owners of parent	1,607			944	Down 41.2%
The results of operations by segment were as follows.
Chemicals Business
Chemicals for electronics components
China:	Due to the stagnation of consumer spending and the ending of stay-at-home demand, demand for
	PWBs for high-performance electronic devices such as smartphones, PCs, and tablets decreased. As
	a result, sales of chemicals decreased.
Taiwan:	Due to a decrease in demand for PWBs for high -performance electronic devices, servers, and
	semiconductor package substrates for high-performance electronic devices, sales of chemicals
	decreased.
Korea:	Due to the continued impact of inventory adjustment in the semiconductor market, demand for
	semiconductor package substrates decreased. As a result, sales of chemicals decreased.
Chemicals for decoration
Japan:	The improving trend in shortages of semiconductors and	parts led	to a	recovery in	domestic
	automobile production and an increase in sales of chemicals.
China:	Despite a recovery trend in shortages of semiconductors	and parts,	the	automobile	sales and
	production decreased due to decelerating economies. As a result, sales of chemicals decreased.
				(Millions of yen, unless otherwise stated)
		Previous period	Current period		Year-over-year %
		(Apr. 1, 2022 - Jun. 30, 2022)	(Apr. 1, 2023 - Jun. 30, 2023)	change
Net sales		5,881			4,710	Down 19.9%
Segment profit		2,239			1,558	Down 30.4%

2

JCU CORPORATION (4975) Financial Results for the First Quarter of FY3/24

Machine Business

Net sales, orders received, and order backlog increased substantially thanks to the resumption of the projects that had been postponed due to the pandemic and the steady progress of ongoing construction projects.

(Millions of yen, unless otherwise stated)

	Previous period	Current period	Year-over-year %
	(Apr. 1, 2022 - Jun. 30, 2022)	(Apr. 1, 2023 - Jun. 30, 2023)	change
Net sales	278	514	Up 85.0%
Operating profit	21	47	Up 115.9%
Orders received	165	565	Up 240.8%
Order backlog	1,981	4,021	Up 103.0%

Other businesses

The Other businesses posted sales of 0 million yen (down 42.8% year over year) with a segment loss of 4 million yen (as compared with a segment loss of 4 million yen a year earlier).

1. Explanation of Financial Position 1) Assets, liabilities and net assets Assets

Total assets at the end of the period under review decreased 1,493 million yen (down 3.3%) from the end of the previous fiscal year to 43,407 million yen.

Current assets decreased 1,665 million yen (down 4.5%) to 34,980 million yen mainly due to decreases in cash and deposits, accounts receivable-trade, and merchandise and finished goods.

Non-current assets increased 171 million yen (up 2.1%) to 8,427 million yen mainly due to an increase in investment securities, which was partially offset by a decrease in deferred tax assets.

Liabilities

Total liabilities at the end of the period under review decreased 2,111 million yen (down 30.0%) from the end of the previous fiscal year to 4,928 million yen.

Current liabilities decreased 2,286 million yen (down 37.1%) to 3,877 million yen. This was mainly due to decreases in notes and accounts payable-trade, income taxes payable, and provision for bonuses.

Non-current liabilities increased 175 million yen (up 20.0%) to 1,050 million yen due to an increase in deferred tax liabilities, which was partially offset by a decrease in long-term borrowings.

Net assets

Total net assets at the end of the period under review increased 617 million yen (up 1.6%) from the end of the previous fiscal year to 38,479 million yen. This was due to increases in retained earnings from profit attributable to owners of parent, valuation difference on available -for-sale securities, and foreign currency translation adjustment.

3