Pacific Industrial : Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

April 25, 2024

Consolidated Financial Results

For the Fiscal Year Ended March 31, 2024

Company name: PACIFIC INDUSTRIAL CO., LTD.

Stock exchange listings: Tokyo and Nagoya Stock Exchanges

Stock code number: 7250

URL: https://www.pacific-ind.co.jp/

Representative: Tetsushi Ogawa, President

Contact person: Satoshi Watanabe, General Manager of Accounting Dept.

Telephone: [phone]

(Amounts less than one million yen are omitted)

1. Consolidated Financial Results for FY 2023(From April 1, 2023 to March 31, 2024)

(1) Consolidated financial results

(%: changes from the same period of the previous fiscal year)

	Net sales		Operating income	Ordinary income	Net income
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen		%
FY 2023	207,348		8.4	14,456	55.5	18,836	42.6	16,974		82.5
FY 2022	191,254		16.3	9,298	-13.6	13,209	-9.6	9,301		-5.1

(Note) Comprehensive income: FY2023：32,579 million yen (170.3%)		FY2022 : 12,054 million yen ( -40.2% )
			Net income		Diluted net income	Return on equity		Return on asset		Operating margin
			per share			per share
			Yen			Yen		%			%		%
	FY 2023	289.48			288.90		11.2			6.8		7.0
	FY 2022	155.33			155.02		7.0			5.2		4.9
(Reference) Share of (profit) loss of entities accounted for using equity method:
			FY2023 : 1,384 million yen FY2022 : 782 million yen
(2) Consolidated financial position
			Total assets			Net assets		Equity ratio				Net assets per share
			Millions	of yen	Millions of yen				%					Yen
	FY 2023	292,455		167,397				56.9				2,840.12
	FY 2022	258,058		138,721				53.4				2,309.07
(Reference) Equity:	FY2023: 166,310 million yen FY2022: 137,717 million yen
(3) Cash flow
			Cash flows			Cash flows		Cash flows					Cash and cash
			from operating activities	from investing activities		from financing activities			equivalent at end of period
			Millions of yen	Millions of yen				Millions of yen			Millions of yen
	FY 2023		35,381		-19,577				-4,660		44,490
	FY 2022		24,129		-16,428				-3,509		31,593

2. Cash Dividends

		Annual dividends per share		Total annual	Payout ratio		Dividend
	At end of	At end of	At end of				on equity
	At year-end	Total		dividends	(consolidate)
	1st quarter	2nd quarter	3rd quarter		(consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
FY2022	―	20.00	―	22.00	42.00	2,523	27.0	1.9
FY2023	―	22.00	―	55.00	77.00	4,543	26.6	3.0
FY2024	―	26.00	―	26.00	52.00			30.5
(forecast)

3. Forecasts of Consolidated Financial Results for FY2024 (From April 1, 2024 to March 31, 2025)

				(%: changes from the	same period of the previous	fiscal year)
	Net sales		Operating income	Ordinary income	Net income			Net income
		for the year attributable to
			per share
									owners of the parent
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen		%		Yen
First half	98,000		-4.5	4,500	-40.0	5,500		-46.8	4,500		-40.2		76.85
FY 2024	200,000		-3.5	11,000	-23.9	13,000		-31.0	10,000		-41.1		170.77

* Notes

(1) Changes in significant subsidiaries during the period: None

(Changes in specified subsidiaries resulting in changes in scope of consolidation)

Newly included:	―	(company name)
Newly excluded:	―	(company name)

(2) Changes in accounting policies, accounting estimates and restatements

• Changes in accounting policies with revision of accounting standards : None
  ② Changes other than ① : None
  ③ Changes in accounting estimates : Yes
  ④ Restatement : None

(3) Number of shares issued and outstanding (common stock)

• Number of shares outstanding at end of period (including treasury stock)

• Number of shares of treasury stock at end of period

• Average number of shares during the year ended March 31

FY2023	61,312,896	shares	FY2022	61,312,896	shares
FY2023	2,755,384	shares	FY2022	1,670,909	shares
FY2023	58,637,984	shares	FY2022	59,886,553	shares

(Reference) Summary of non-consolidated business results

1. Non-Consolidated Financial Result for FY2023 (From April 1, 2023 to March 31, 2024) (1)Non-consolidatedfinancial results

(%: changes from the same period of the previous fiscal year)

	Net sales		Operating income	Ordinary income	Net income
	Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen		%
FY 2023	79,144		-4.4	6,247		27.0	12,977	20.7	14,466		75.8
FY 2022	82,784		1.5	4,917		-19.3	10,750	-4.3	8,228		-0.5
	Net income	Diluted net income
	per share		per share
			Yen			Yen
FY 2023			244.83			244.34
FY 2022			136.37			136.11

(1)Non-consolidated financial position

		Total assets		Net assets	Equity ratio		Net assets per share
		Millions of yen		Millions of yen		%	Yen
	FY 2023	207,972		107,292		51.5	1,816.66
	FY 2022	191,397		93,140		48.6	1,548.37
(Reference) Equity:	FY2023: 107,194 million yen	FY2022: 93,043 million yen

* Indication regarding status of performance of audit procedures

This summary of financial results is not subject to the audit procedures in accordance with the Financial Instruments and Exchange Act. As of the time of disclosure of this summary of financial results, the audit procedures for consolidated financial statements under the Financial Instruments and Exchange Act have not been completed.

• Explanation about appropriate use of the financial results forecasts, and other noteworthy matters Statements related to the future, including the forecasts of financial results, described in this document are based on information currently available to Pacific industrial and on certain assumptions deemed by Pacific industrial to be rational.

Consolidated Balance Sheets

					(Million Yen)
	FY2022	FY2023		FY2022	FY2023
	(As of Mar.31, 2023)	(As of Mar.31, 2024)		(As of Mar.31, 2023)	(As of Mar.31, 2024)
（Assets）			（Liabilities）
Current Assets	90,690	102,147	Current Liabilities	52,635	53,678
Cash and time deposits	32,088	45,120	Trade notes and accounts payable	14,394	13,942
Notes receivable - trade	1,544	1,601	Electronically recorded obligations - operating	6,832	6,530
Accounts receivable	29,683	27,965	Short-term borrowings	1,015	10
Merchandise and finished goods	9,522	7,522	Current portion of long-term borrowings	6,851	6,969
Work in process	7,414	7,689	Accounts payable	5,285	6,749
Raw materials and supplies	6,185	6,797	Accrued expenses	2,226	3,460
Accounts receivable	3,228	4,970	Income taxes payable	2,040	7,044
Other current assets	1,196	644	Consumption taxes payable	107	123
Less: Allowance for doubtful accounts	(173)	(164)	Deposit received	334	403
			Allowance for bonuses	1,605	1,844
Fixed Assets	167,367	190,308	Notes payable - facilities	120	22
			Other current liabilities	11,822	6,577
Property, Plant and Equipment	111,924	128,980
Buildings and structures	32,658	50,445	Noncurrent Liabilities	66,701	71,380
Machinery and vehicles	46,081	50,328
Tools, Furniture, and fixtures	2,297	2,475	Long-term borrowings	53,350	54,958
Land	10,651	11,414	Deferred tax liabilities	10,042	12,816
Lease Asset	1,311	1,526	Provision for directors retirement benefit	173	180
Construction in progress	18,924	12,789	Net defined benefit liabilities	553	665
			Other noncurrent liabilities	2,580	2,759
Intangible Fixed Assets	11,545	6,059
Goodwill	6,219	2,883	Total Liabilities	119,337	125,058
Other	5,325	3,176
Investments and Other Assets	43,897	55,267	（Net assets）
Investments in securities	36,636	43,493	Shareholders' Equity	107,854	120,941
Long-term loans	27	10	Capital stock	7,316	7,316
Deferred tax assets	364	171	Capital surplus	7,686	7,690
Net defined benefit asset	6,118	10,853	Retained earnings	94,044	108,399
Other fixed assets	752	741	Less:Treasury stock at cost	(1,193)	(2,465)
Less: Allowance for doubtful accounts	(1)	(2)
			Valuation and Translation Adjustment	29,862	45,369
			Valuation difference on available securities	16,100	19,694
			Foreign currency translation adjustments	13,154	22,094
			Remeasurement of defined benefit plan	608	3,580
			Subscription rights to shares	97	97
			Minority Interests	905	988
			Total Net Assets	138,721	167,397
Total Assets	258,058	292,455	Total Liabilities and Net Assets	258,058	292,455

Consolidated Statements of Income

			(Million Yen)
	FY2022		FY2023
	For the Year Ended		For the Year Ended
	Mar.31, 2023		Mar.31, 2024
Net sales	191,254		207,348
Cost of sales	168,424		177,558
Gross profit	22,829		29,790
Selling, general and administrative expenses	13,531		15,334
Operating Income (loss)	9,298		14,456
Non-operating income	4,231		4,740
Interest income	103		483
Dividend income	767		896
Equity in earnings of affiliated companies	782		1,384
Foreign exchange gain	1,130		1,348
Gain on sales of investment securities	649		-
Other non-operating income	797		626
Non-operating Expenses	320		360
Interest expense	285		329
Other non-operating expense	35		31
Ordinary income (loss)	13,209		18,836
Extraordinary income		-	15,520
Gain on sales of investment securities		-	15,520
Extraordinary Losses	298		7,903
Loss on sales and retirements of fixed assets	149		350
Impairment loss	148		7,553
Profit (loss) before income taxes and non controlling interests	12,911		26,452
Income taxes	3,498		9,436
Current term net profit (loss)	9,412		17,015
Profit (loss) attributable to non-controlling interests	110		40
Profit (loss) attributable to owners of parent	9,301		16,974