Japan Wool Textile : Presentation Materials of Financial Results Second Quarter,2024

Consolidated Financial Results

Second Quarter, 2024

July 12, 2024

TSE Prime Market 3201

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１.Consolidated Financial Statements

for 2024 1H

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Consolidated Financial	Forecast for FY2024	RN130 3rd medium-term plan	Shareholder return
Statements for 2024 1H	(overview)

Summary（2024 1H）

Considering profitability and business risks, we have downsized the Communications and New Services sector of our Human & Future Development business from this term. This has resulted in a decrease in sales. However, all profits below operating profit have increased.

			Actual		Year-on-year	2024.7.12
				forecast progress
		2022	2023	2024	Change	％	progress
（Unit: million yen）	1H	1H	1H
	Sales	53,616	54,548	53,608	-940	-1.7%	48.3％
	Operating	5,187	4,570	4,668	98	2.2%	42.4％
	income
	Operating	9.7%	8.4％	8.7％	0.3%	-	-
	margin
	Ordinary	5,811	4,810	5,062	252	5.2％	43.6％
	income
	owners of parent	79	137	-48	-185	-	-
	Profit attributable to
	Return on	3,811	3,313	3,674	361	10.9％	47.7％
	equity

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Consolidated Financial	Forecast for FY2024	RN130 3rd medium-term plan	Shareholder return
Statements for 2024 1H	(overview)

Segment Results

		Actual		Year-on-year
		2023		2024	Change			％
	（Unit: million yen）	1H		1H
Textile &	Sales	15,091		15,306	214			1.4%
Clothing	Operating income	1,317		1,195	-121			-9.3%
Materials	Operating margin	8.7%		7.8%	-0.9%			-
Industrial	Sales	11,711		12,173	462			3.9%
Machinery &	Operating income	414		438	24			6.0%
Materials	Operating margin	3.5%		3.6%	0.1%			-
		16,341		12,703	-3,637			-22.3%
Human &	Sales
Future	Operating income	3,258		3,387	128			3.9%
Development	Operating margin	19.9%		26.7%	6.8%			-
Consumer	Sales	9,536		11,369	1,832			19.2%
Goods &	Operating income	311		426	114			36.6%
Services	Operating margin	3.3%		3.7%	0.4%			-
Others	Sales	1,868		2,056	188			10.1％
Operating income	-732		-779	-47			-
		54,548		53,608	-939			-1.7%
	Sales
TOTAL	Operating income	4,570		4,668	98			2.2%
	Operating margin	8.4%		8.7%	0.3%			-

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Consolidated Financial	Forecast for FY2024	RN130 3rd medium-term plan	Shareholder return
Statements for 2024 1H	(overview)

Textile & Clothing Materials

Sales 15,306百万円	YoY	＋1.4％
Operating income 1,195百万円	YoY	－9.3％

Sales	Unit: million yen
	Forecast

Operating income Forecast

• Sales of uniform materials for schools have been solid, with an increase in demand for purchases before price revisions.
• Sales of uniform materials for government offices and private companies have both been favorable.
• Sales of general clothing materials have been poor both domestically and overseas.
• In the yarn sector, yarn sales have decreased and performance has been poor.
• Continuing from last year, the depreciation of the yen has led to an increase in the cost of wool raw materials and a surge in energy costs, putting pressure on profits.

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Consolidated Financial	Forecast for FY2024	RN130 3rd medium-term plan	Shareholder return
Statements for 2024 1H	(overview)

Industrial Machinery & Materials

Sales 12,173百万円	YoY	＋3.9％
Operating income 438百万円	YoY	＋6.0％

Sales	Unit: million yen
	Forecast

Operating income

Forecast

• Sales of non-woven fabrics, sewing threads, and binding cords for vehicles have been sluggish.
• Sales of FA equipment for manufacturing lines of vehicle-mounted electrical equipment have been favorable, with orders from customers showing a recovery trend.
• Environmental and energy-related materials have increased in sales since the second quarter, with the addition of Kankyo Techno Co., Ltd. to the group.
• Racket sports-related sales have been favorable due to the recovery of the market and the popularity of new products.
• Lifestyle-relatedmaterials have been poor, with felt for musical instruments affected by the sluggish Chinese market.

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Consolidated Financial	Forecast for FY2024	RN130 3rd medium-term plan	Shareholder return
Statements for 2024 1H	(overview)

Human & Future Development

Sales 12,703百万円	YoY －22.3％
Operating income 3,387百万円	YoY ＋3.9％
Sales	Unit: million yen
		Forecast

Operating income Forecast

• Commercial facility management has been solid, with the renewal effects of Colton Plaza continuing.
• Real estate leasing business has exceeded the same period of the previous year. Construction-related business is on par with the same period of the previous year.
• Childcare-relatedbusiness is on par with the same period of the previous year. Nursing care-related business has exceeded the same period of the previous year, with the number of users gradually recovering.
• Sports-relatedbusiness has exceeded the same period of the previous year due to an increase in visitors.
• In the Communications and New Services sector, we have downsized the business from this term considering profitability and business risks.

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Consolidated Financial	Forecast for FY2024	RN130 3rd medium-term plan	Shareholder return
Statements for 2024 1H	(overview)

Consumer Goods & Services

Sales 11,369百万円	YoY ＋19.2％
Operating income 426百万円	YoY ＋36.6％
Sales		Unit: million yen
	Forecast

Operating income

Forecast

• Bedding sales have been sluggish on EC. Business supplies, such as disaster blankets, have been favorable.
• Stamp sales are on par with the same period of the previous year. Sales of stamping ink have been poor domestically but favorable overseas.
• Furniture sales have been favorable, with the performance of Interior Office One Co., Ltd., which joined us in the previous term, contributing.
• Sales of lifestyle appliances are on par with the same period of the previous year.
• Continuing from last year, the increase in purchase prices and the rise in advertising and logistics costs related to EC have been putting pressure on overall profits.

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Consolidated Financial	Forecast for FY2024	RN130 3rd medium-term plan	Shareholder return
Statements for 2024 1H	(overview)

Consolidated Balance Sheet／Cash Flow Statement

					（Unit: million yen）
	Consolidated Balance Sheet	End-Nov. 2023		End-Nov. 2024	Change（Y/Y）
	Current assets	92,823		95,346	2,523
	Property, plant and equipment	73,306		78,365	5,059
	Total assets	166,129		173,712	7,583
	Current liabilities	34,258		36,162	1,904
	Long-term liabilities	17,735		18,007	271
	Total Liabilities	51,993		54,169	2,175
	Shareholders' equity	104,198		106,440	2,242
	Accumulated other comprehensive income	8,950		12,089	3,139
	Noncontrolling interests	987		1,013	26
	Net assets	114,135		119,543	5,407
	Consolidated Cash Flow Statement	1H FY2023 Actual		1H FY2024 Actual	Change（Y/Y）
	Cash flow from operating activities	4,981		6,121	1,140
	Cash flow from investing activities	-175		-3,755	-3,580
	Cash flow from financing activities	-1,850		241	2,092
	Balance of cash and cash equivalents at year's end	37,978		37,952	-25

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Consolidated Financial	Forecast for FY2024	RN130 3rd medium-term plan	Shareholder return
Statements for 2024 1H	(overview)

Capital investment／Depreciation expense

（Unit: million yen）

• We plan to invest approximately 6.5 billion yen in equipment in fiscal 2024. The cumulative equipment investment for the second quarter is approximately 1.1 billion yen.

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