JCU : Financial Results Briefing Material for the Fiscal Year Ending March 2023

Financial Results Briefing Material

for the Fiscal Year Ended March 2023

JCU CORPORATION

TSE Prime (Stock Code: 4975)

May 11, 2023

Financial Results Briefing Material for FY3/23

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Summary of Consolidated Financial Results for FY3/23

Chemicals Business

Machine Business

For electronic components

For automotive components

Accounting Period of FY3/23

JCU (non-consolidated): April 1 to March 31, 2023

Overseas subsidiaries: January 1 to December 31, 2023

• China: As a result of the stagnation of consumer spending and the ending of stay-at-home demand, demand for PWBs for servers and high-performance electronic devices such as smartphones, PCs, and tablets decreased. However, demand for chemicals during the fiscal year under review remained unchanged.
• Taiwan: Thanks to a continued strong demand for semiconductor package substrates for high-performance electronic devices and servers, the Group enjoyed an increased demand for chemicals during the fiscal year under review despite some inventory adjustment in the second half.
• South Korea: As a result of demand for the semiconductor market being slacked, demand for chemicals declined because manufactures of semiconductor package substrates continued to adjust inventories.
• Japan: The shortage of semiconductors and parts was alleviated, resulting in recovery in automobile production and higher demand for chemicals.
• China: Automobile production decreased due to the shortage of semiconductors and the effect of the pandemic However, demand for chemicals stayed flat.
• Due to the resumption of postponed projects caused by the pandemic, and the increasing demand for new investment in plating machines in electronics industry, net sales, orders received, and order backlog increased significantly.

Financial Results Briefing Material for FY3/23

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Summary of Financial Results for FY3/23

(Millions of yen)

	FY3/21	FY3/22		FY3/23
					YoY
	Results	Results	Forecasts	Results
	% Change
Net sales	21,192	24,256	26,500	27,137	11.9%
Operating profit	6,799	8,990	9,100	9,285	3.3%
Ordinary profit	6,922	9,231	9,100	9,369	1.5%
Profit attributable to	4,708	6,370	6,300	6,013	(5.6)%
owners of parent
Net income per share	178.33 yen	243.82 yen	243.46 yen	232.62 yen	-

Note: A year-over-year decrease in profit attributable to owners of parent was caused by a significant increase in deferred income taxes due to the recognition of deferred tax liabilities for taxable temporary differences attributable to retained earnings of some overseas consolidated subsidiaries.

Financial Results Briefing Material for FY3/23

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Summary Consolidated Balance Sheet

(Millions of yen)	FY3/22	FY3/23
Current assets	32,507	36,646
Cash and deposits	19,519	24,180
Notes and accounts receivable-trade	8,501	8,526
Inventories	3,632	2,852
Non-current assets	8,385	8,255
Property, plant and equipment	5,459	6,081
Investments and other assets	2,870	2,126
Total assets	40,892	44,901
Current liabilities	6,712	6,164
Notes and accounts payable-trade	2,736	2,397
(incl. electronically recorded obligations-operating)
Short-term borrowings	705	754
(incl. current portion of long-term borrowings)
Non-current liabilities	1,013	875
Long-term borrowings	540	288
Total liabilities	7,726	7,039
Total net assets	33,166	37,861
Total liabilities and net assets	40,892	44,901
Financial Results Briefing Material for FY3/23	Note: Certain line items are omitted	4

Foreign Exchange Rates

Foreign exchange sensitivity (as at the consolidated year): Changes of about 90 million yen in consolidated

operating profit with 1% change in major currency rates listed below

(Yen)

				FY3/23			FY3/24
	FY3/22
	(Initial	1Q	2Q	3Q	4Q	(Forecast)
		forecast)
Chinese yuan	17.03	17.20	18.29	18.93	19.35	19.48	19.34
(CNY)
Taiwan dollar	3.93	4.00	4.15	4.28	4.37	4.41	4.36
(TWD)
Korean won	0.0960	0.0940	0.0964	0.0996	0.1008	0.1017	0.1039
(KRW)

Note: The average rate for the period is used to translate Chinese yuan, Taiwan dollar and Korean won, our major foreign currencies, to Japanese yen.

Financial Results Briefing Material for FY3/23

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