Micronics Japan : FY2022 2Q Financial Results

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended June 30, 2022 (Based on Japanese GAAP)

August 9, 2022

Company name:	MICRONICS JAPAN CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	6871	URL https://www.mjc.co.jp/en/
Representative:	President & CEO	Masayoshi Hasegawa
Inquiries:	Director & Senior Executive Officer	Futoru Saito	TEL [phone]
General Manager of Administration Division
Scheduled date to file Quarterly Securities Report:	August 10, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022)
(1) Consolidated operating results (cumulative)						Percentages indicate year-on-year changes
	Net sales			Operating profit	Ordinary profit	Profit attributable to
			owners of parent
	Millions of yen	%		Millions of yen	%	Millions of yen		%	Millions of yen		%
Six months ended June 30, 2022	19,570	11.5		4,101	6.8	4,445		9.9	2,873		2.9
Six months ended June 30, 2021	17,554	-		3,839	-	4,045		-	2,793		-
	Earnings per share			Diluted earnings per share
			Yen			Yen
Six months ended June 30, 2022		74.69			74.56
Six months ended June 30, 2021		73.15			72.96
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio
	Millions of yen			Millions of yen				%
As of June 30, 2022		50,025				34,194				68.2
As of December 31, 2021		49,737				33,058				66.3

2. Cash dividends

							Annual dividends per share
			1st quarter-end		2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
				Yen			Yen			Yen		Yen	Yen
Year ended December 31, 2021		0.00			0.00			0.00		65.00	65.00
Year ending December 31, 2022		0.00			0.00
Year ending December 31, 2022 (Forecast)								0.00		55.00	55.00
3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)
										Percentages indicate year-on-year changes
	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
Nine months ending	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
32,300		13.5	7,200	12.9		7,600	14.1		4,800	4.4	124.75
September 30, 2022
Full year	47,000		17.5	10,400	26.2	10,800	24.3		7,000	(15.0)	181.93

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2022	40,025,316	shares	As of December 31, 2021	40,025,316	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	1,541,908	shares	As of December 31, 2021	1,554,667	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2022	38,475,477	shares	Six months ended June 30, 2021	38,190,773	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	19,202	19,979
Notes and accounts receivable - trade	10,288	-
Notes and accounts receivable - trade, and contract assets	-	7,408
Finished goods	635	925
Work in process	3,422	4,340
Raw materials and supplies	1,329	2,152
Other	851	906
Allowance for doubtful accounts	(10)	(11)
Total current assets	35,719	35,701
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,592	3,578
Machinery, equipment and vehicles, net	3,446	3,838
Other, net	3,975	4,079
Total property, plant and equipment	11,015	11,496
Intangible assets	980	992
Investments and other assets
Investment securities	933	681
Retirement benefit asset	162	152
Other	1,102	1,208
Allowance for doubtful accounts	(178)	(207)
Total investments and other assets	2,020	1,835
Total non-current assets	14,017	14,324
Total assets	49,737	50,025
Liabilities
Current liabilities
Notes and accounts payable - trade	6,187	5,368
Short-term borrowings	959	975
Income taxes payable	2,257	1,622
Provision for bonuses	1,179	1,133
Provision for bonuses for directors (and other officers)	301	153
Provision for product warranties	203	246
Other	3,132	3,543
Total current liabilities	14,219	13,043
Non-current liabilities
Long-term borrowings	371	689
Retirement benefit liability	2,028	2,039
Other	59	59
Total non-current liabilities	2,459	2,788
Total liabilities		16,679	15,831

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			(Millions of yen)
		As of December 31, 2021	As of June 30, 2022
Net assets
Shareholders' equity
Share capital	5,018	5,018
Capital surplus	5,950	5,961
Retained earnings	22,188	22,537
Treasury shares	(1,383)	(1,370)
Total shareholders' equity	31,773	32,146
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	475	300
Foreign currency translation adjustment	534	1,499
Remeasurements of defined benefit plans	174	149
Total accumulated other comprehensive income	1,185	1,949
Share acquisition rights	99	97
Total net assets	33,058	34,194
Total liabilities and net assets		49,737	50,025

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		June 30, 2021	June 30, 2022
Net sales	17,554	19,570
Cost of sales	9,830	10,771
Gross profit	7,723	8,799
Selling, general and administrative expenses	3,884	4,697
Operating profit	3,839	4,101
Non-operating income
Interest income	8	20
Dividend income	12	4
Rental income	29	26
Received incentive	38	29
Refund income	0	15
Foreign exchange gains	105	229
Other	27	27
Total non-operating income	223	353
Non-operating expenses
Interest expenses	4	3
Commission expenses	5	5
Loss on cancellation of insurance policies	4	-
Other	1	1
Total non-operating expenses	16	10
Ordinary profit	4,045	4,445
Extraordinary income
Gain on sale of non-current assets	1	2
Gain on reversal of share acquisition rights	0	0
Total extraordinary income	2	2
Extraordinary losses
Loss on sale of non-current assets	0	1
Loss on retirement of non-current assets	0	0
Total extraordinary losses	0	2
Profit before income taxes	4,047	4,446
Income taxes - current	1,232	1,544
Income taxes - deferred	21	28
Total income taxes	1,254	1,572
Profit	2,793	2,873
Profit attributable to owners of parent		2,793	2,873

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