Micronics Japan : FY2022 3Q 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 Nine Months Ended September 30, 2022 (Based on Japanese GAAP)

November 11, 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:

November 14, 2022

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended September 30, 2022 (from January 1, 2022 to September 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

%

Nine months ended September 30, 2022

30,135

5.9

6,302

(1.1)

7,107

6.7

4,447

(3.3)

Nine months ended September 30, 2021

28,456

-

6,376

-

6,663

-

4,598

-

Earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended September 30, 2022

115.58

115.42

Nine months ended September 30, 2021

120.25

119.98

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of September 30, 2022

52,293

35,594

67.9

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			0.00
Year ending December 31, 2022 (Forecast)										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
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	45,000		12.5	9,400	14.0	10,200	17.4		6,800	(17.5)	176.72

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4. Notes

1. Changes in significant subsidiaries during the nine months ended September 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 September 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 September 30, 2022	1,542,772	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)
	Nine months ended September 30, 2022	38,477,912	shares	Nine months ended September 30, 2021	38,243,381	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2021	As of September 30, 2022
Assets
Current assets
Cash and deposits	19,202	19,703
Notes and accounts receivable - trade	10,288	-
Notes and accounts receivable - trade, and contract assets	-	7,465
Finished goods	635	839
Work in process	3,422	5,369
Raw materials and supplies	1,329	2,343
Other	851	1,110
Allowance for doubtful accounts	(10)	(11)
Total current assets	35,719	36,820
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,592	3,731
Machinery, equipment and vehicles, net	3,446	3,672
Other, net	3,975	5,277
Total property, plant and equipment	11,015	12,681
Intangible assets	980	990
Investments and other assets
Investment securities	933	657
Retirement benefit asset	162	148
Other	1,102	1,213
Allowance for doubtful accounts	(178)	(218)
Total investments and other assets	2,020	1,800
Total non-current assets	14,017	15,472
Total assets	49,737	52,293
Liabilities
Current liabilities
Notes and accounts payable - trade	6,187	5,635
Short-term borrowings	959	767
Income taxes payable	2,257	1,151
Provision for bonuses	1,179	1,716
Provision for bonuses for directors (and other officers)	301	176
Provision for product warranties	203	273
Other	3,132	4,254
Total current liabilities	14,219	13,975
Non-current liabilities
Long-term borrowings	371	589
Retirement benefit liability	2,028	2,074
Other	59	59
Total non-current liabilities	2,459	2,723
Total liabilities		16,679	16,698

3

			(Millions of yen)
		As of December 31, 2021	As of September 30, 2022
Net assets
Shareholders' equity
Share capital	5,018	5,018
Capital surplus	5,950	5,961
Retained earnings	22,188	24,111
Treasury shares	(1,383)	(1,370)
Total shareholders' equity	31,773	33,720
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	475	283
Foreign currency translation adjustment	534	1,355
Remeasurements of defined benefit plans	174	137
Total accumulated other comprehensive income	1,185	1,776
Share acquisition rights	99	97
Total net assets	33,058	35,594
Total liabilities and net assets		49,737	52,293

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Nine months ended	Nine months ended
		September 30, 2021	September 30, 2022
Net sales	28,456	30,135
Cost of sales	16,013	16,449
Gross profit	12,442	13,686
Selling, general and administrative expenses	6,066	7,383
Operating profit	6,376	6,302
Non-operating income
Interest income	13	25
Dividend income	23	22
Rental income	42	40
Received incentive	38	30
Refund income	0	15
Foreign exchange gains	145	638
Other	44	45
Total non-operating income	307	818
Non-operating expenses
Interest expenses	6	4
Commission expenses	7	7
Loss on cancellation of insurance policies	4	-
Other	1	2
Total non-operating expenses	20	13
Ordinary profit	6,663	7,107
Extraordinary income
Gain on sale of non-current assets	1	3
Gain on sale of investment securities	154	-
Gain on reversal of share acquisition rights	0	0
Total extraordinary income	156	3
Extraordinary losses
Loss on sale of non-current assets	0	1
Loss on retirement of non-current assets	0	1
Total extraordinary losses	0	3
Profit before income taxes	6,819	7,107
Income taxes - current	2,203	2,589
Income taxes - deferred	17	70
Total income taxes	2,220	2,660
Profit	4,598	4,447
Profit attributable to owners of parent		4,598	4,447

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