Mitsubishi Pencil : Summary of Consolidated Financial Results for the Three Months Ended March 31, 2022 (Based on Japanese GAAP)

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 Three Months Ended March 31, 2022

(Based on Japanese GAAP)

Company name:Mitsubishi Pencil Co., Ltd.

Stock exchange listing: TokyoStock code: Representative:

7976 URLhttps://www.mpuni.co.jp/ Representative Director,President

Inquiries:

Executive Officer, General Manager of Financial Resources and Accounting Department

Scheduled date to file Quarterly Securities Report: Scheduled date to commence dividend payments:

Preparation of supplementary material on quarterly financial results: Holding of quarterly financial results meeting:

Shigehiko Suhara

Hisashi Jagawa

TEL [phone]

May 9, 2022

-

Yes

No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended March 31, 2022 (from January 1, 2022 to March 31, 2022)

(1) Consolidated operating results (cumulative)

April 28, 2022

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Three months ended March 31, 2022 Three months ended March 31, 2021	Millions of yen 18,106 16,203	% 11.7 2.5	Millions of yen 3,204 2,380	% 34.6 3.6	Millions of yen 3,482 2,815	% 23.7 21.6	Millions of yen 2,413 1,983	% 21.6 38.4

Earnings per share	Diluted earnings per share
Three months ended March 31, 2022 Three months ended March 31, 2021	Yen 43.34 35.35	Yen - -

(2) Consolidated financial position

Total assets	Net assets	Equity ratio	Net assets per share
As of March 31, 2022 As of December 31, 2021	Millions of yen 126,550 123,792	Millions of yen 99,851 97,673	% 77.4 77.5	Yen 1,767.60 1,715.15

2. Cash dividends

Annual dividends per share
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended December 31, 2021 Year ending December 31, 2022	Yen - -	Yen 16.00	Yen -	Yen 16.00	Yen 32.00
Year ending December 31, 2022 (Forecast)	16.50	-	16.50	33.00

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 owners of parent	Earnings per share
Full year	Millions of yen 64,000	% 3.4	Millions of yen 8,320	% 10.6	Millions of yen 8,700	% 4.7	Millions of yen 5,900	% 4.3	Yen 106.30

4. Notes

• (1) Changes in significant subsidiaries during the three months ended March 31, 2022

  No

  (changes in specified subsidiaries resulting in the change in scope of consolidation):

• (2) Application of special accounting methods for preparing quarterly consolidated financial statements: Yes

• (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 March 31, 2022 64,286,292 shares

As of December 31, 2021 64,286,292 shares

As of March 31, 2022 64,286,292 shares As of December 31, 2021

Number of treasury shares at the end of the period

As of March 31, 2022 8,841,246 shares

As of December 31, 2021 8,382,346 shares

As of March 31, 2022 8,841,246 shares As of December 31, 2021

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

Three months ended March 31, 2022 55,675,996 shares

Three months ended March 31, 2021 56,122,912 shares

Three months ended March 31, 2022

55,675,996 shares Three months ended March 31, 2021

56,122,912 shares

Quarterly consolidated financial statements Consolidated balance sheets

(Millions of yen)
As of December 31, 2021	As of March 31, 2022
Assets Current assets Cash and deposits Notes and accounts receivable - trade Inventories Other Allowance for doubtful accounts	44,931 16,567 18,831 2,483 (1,400)	45,587 19,215 19,452 1,137 (1,441)
Total current assets	81,413	83,950
Non-current assets Property, plant and equipment Buildings and structures, net Other, net	14,850 9,782	14,742 9,841
Total property, plant and equipment	24,633	24,583
Intangible assets Investments and other assets Investment securities Other Allowance for doubtful accounts	1,395 14,175 2,175 (0)	1,384 14,450 2,180 (0)
Total investments and other assets	16,350	16,631
Total non-current assets	42,379	42,599
Total assets	123,792	126,550

(1,441)

(0)

(Millions of yen)
As of December 31, 2021	As of March 31, 2022
Liabilities Current liabilities Notes and accounts payable - trade Short-term borrowings Income taxes payable Provision for bonuses Reserve for returned goods Other	8,314 1,516 1,849 564 41 5,345	8,955 1,521 1,209 1,162 - 5,484
Total current liabilities	17,631	18,333
Non-current liabilities Long-term borrowings Retirement benefit liability Provision for retirement benefits for directors (and other officers) Other	3,298 3,817 101 1,270	3,118 3,818 104 1,324
Total non-current liabilities	8,487	8,365
Total liabilities	26,119	26,699
Net assets Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares	4,497 3,976 87,708 (6,953)	4,497 3,976 89,270 (7,516)
Total shareholders' equity	89,229	90,227
Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans	4,557 1,793 303	4,844 2,644 287
Total accumulated other comprehensive income	6,654	7,777
Non-controlling interests	1,789	1,846
Total net assets	97,673	99,851
Total liabilities and net assets	123,792	126,550

(7,516)

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

(cumulative)

Consolidated statements of income (cumulative)

(Millions of yen)
Three months ended March 31, 2021	Three months ended March 31, 2022
Net sales Cost of sales	16,203 8,089	18,106 9,119
Gross profit	8,113	8,987
Selling, general and administrative expenses	5,732	5,783
Operating profit	2,380	3,204
Non-operating income Interest income Dividend income Rental income from land and buildings Insurance claim income Foreign exchange gains Other	4 24 14 15 355 59	4 14 16 9 243 11
Total non-operating income	473	300
Non-operating expenses Interest expenses Commission for syndicated loans Sales discounts Other	8 9 17 3	6 9 - 5
Total non-operating expenses	38	22
Ordinary profit	2,815	3,482
Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Gain on liquidation of subsidiaries and associates	0 8 -	0 - 33
Total extraordinary income	9	33
Extraordinary losses Loss on sale and retirement of non-current assets Factory restructuring loss	1 3	0 -
Total extraordinary losses	5	0
Profit before income taxes	2,820	3,516
Income taxes	751	1,021
Profit	2,068	2,494
Profit attributable to non-controlling interests	84	81
Profit attributable to owners of parent	1,983	2,413