JCU : Summary of Financial Results for the Fiscal Year Ending March 31, 2023

May 11, 2023

Summary of Financial Results for the Fiscal Year Ended March 31, 2023 [Japanese GAAP]

Company name:	JCU CORPORATION	Listing: Tokyo Stock Exchange
Stock code:	4975	URL: https://www.jcu-i.com/
Representative:	Masashi Kimura, Chairman & CEO
Contact:	Yoji Inoue, Director, Managing Executive Officer, General Manager of Corporate Strategy Office
	Tel: [phone]
Scheduled date of Annual General Meeting of Shareholders:	June 28, 2023
Scheduled date of filing of Annual Securities Report:	June 29, 2023
Scheduled date of payment of dividend:	June 14, 2023
Preparation of supplementary materials for financial results:	Yes
Holding of financial results meeting:	None

Note: The original disclosure in Japanese was released on May 11, 2023 at 15:00. (GMT +9).

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)

(1) Consolidated results of operations				(Percentages represent year-over-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%
FY3/23	27,137		11.9	9,285	3.3	9,369	1.5	6,013	(5.6)
FY3/22	24,256		14.5	8,990	32.2	9,231	33.4	6,370	35.3

Note: Comprehensive income (million yen)	FY3/23: 7,308 (down 12.1%)	FY3/22: 8,315 (up 77.2%)
	Net income per	Diluted net	Return on equity	Ordinary profit	Operating profit
	share	income per share	on total assets	to sales
	Yen	Yen	%	%	%
FY3/23	232.62	-	16.9	21.8	34.2
FY3/22	243.82	-	20.9	24.3	37.1
Reference: Equity in earnings of affiliates (million yen) FY3/23: (473)	FY3/22: (115)

(2) Consolidated financial position

	Total assets	Net assets		Equity ratio	Net assets per share
	Million yen	Million yen		%	Yen
As of Mar. 31, 2023	44,901	37,861		84.3	1,477.42
As of Mar. 31, 2022	40,892	33,166		81.1	1,278.91
Reference: Shareholders' equity (million yen)	As of Mar. 31, 2023: 37,861	As of Mar. 31, 2022: 33,166

(3) Consolidated cash flow position

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at end of period
	Million yen	Million yen	Million yen	Million yen
FY3/23	7,840	(324)	(2,857)	21,997
FY3/22	5,091	1,044	(2,873)	16,845

2. Dividends

		Dividends per share			Total	Dividend		Dividend on
							payout ratio		equity
	1Q-end	2Q-end	3Q-end	Year-end	Total		dividends
		(consolidated)		(consolidated)
	Yen	Yen	Yen	Yen	Yen		Million yen	%	%
FY3/22	-	27.00	-	30.00	57.00	1,484	23.4	4.9
FY3/23	-	33.00	-	33.00	66.00	1,701	28.4	4.8
FY3/24 (forecasts)	-	35.00	-	35.00	70.00			37.4

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)

(Percentages represent year-over-year changes)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Net income per
		owners of parent	share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
First half	10,700		(18.4)	2,590	(44.7)	2,590	(45.1)	1,750	(47.4)	68.29
Full year	25,000		(7.9)	7,000	(24.6)	7,000	(25.3)	4,800	(20.2)	187.30

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change in scope of consolidation): None

	Newly added: -		Excluded: -
(2) Changes in accounting policies and accounting estimates, and restatements
1)	Changes in accounting policies due to revisions in accounting standards, others: Yes
2)	Changes in accounting policies other than 1) above:	None
3)	Changes in accounting estimates:		None
4)	Restatements:		None
(3) Number of outstanding shares (common stock)
1)	Number of shares outstanding at the end of the period (including treasury shares)
	As of Mar. 31, 2023:	27,235,477 shares	As of Mar. 31, 2022:	27,541,754 shares
2)	Number of treasury shares at the end of the period
	As of Mar. 31, 2023:	1,608,529 shares	As of Mar. 31, 2022:	1,608,474 shares
3) Average number of shares outstanding during the period
	FY3/23:	25,852,342 shares	FY3/22:	26,128,474 shares

Reference: Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)

(1) Non-consolidated results of operations				(Percentages represent year-over-year changes)
	Net sales	Operating profit		Ordinary profit	Profit
	Million yen	%	Million yen	%		Million yen		%	Million yen		%
FY3/23	12,661	(0.5)	2,576	(8.7)	7,597		4.1	5,926		(2.0)
FY3/22	12,730	9.5	2,820	56.5	7,301		23.1	6,045		26.5
	Net income	Diluted net income
	per share	per share
		Yen		Yen
FY3/23		229.26		-
FY3/22		231.37		-
(2) Non-consolidated financial position
	Total assets	Net assets		Equity ratio	Net assets per share
	Million yen	Million yen			%			Yen
As of Mar. 31, 2023		32,235		28,101			87.2	1,096.58
As of Mar. 31, 2022		29,560		24,802			83.9			956.38
Reference: Shareholders' equity (million yen)	As of Mar. 31, 2023: 28,101	As of Mar. 31, 2022: 24,802

Note 1: The financial report is not subject to audit by certified public accountants or auditing firms.

Note 2: Cautionary statement with respect to forward-looking statements and other special items

Forecasts of future performance in this report are based on assumptions judged to be valid and information currently available to the Company. Actual results may differ substantially from these forecasts for a number of reasons.

JCU CORPORATION (4975) Financial Results for FY3/23

Contents of Attachments

Please note English translation is available with respect to major sections of the following only.

1. Overview of Results of Operations	2
(1)	Results of Operations	2
(2)	Financial Position	3
(3)	Cash Flows	4
(4)	Outlook	4
2. Basic Approach for the Selection of Accounting Standards	4
3. Consolidated Financial Statements and Notes	5
(1)	Consolidated Balance Sheet	5
(2)	Consolidated Statements of Income and Comprehensive Income	7
(3)	Consolidated Statement of Changes in Shareholders' Equity	9
(4)	Consolidated Statement of Cash Flows	11
(5)	Notes to Consolidated Financial Statements	13
	Going Concern Assumption	13
	Changes in Accounting Policies	13
	Segment and Other Information	13
	Per Share Information	17
	Material Subsequent Events	17

1

JCU CORPORATION (4975) Financial Results for FY3/23

1. Overview of Results of Operations

(1) Results of Operations

In the fiscal year ended March 31, 2023 (hereafter, "the fiscal year under review"), while the domestic economy saw a recovery of consumer spending mainly in the service sector as a result of the decrease in COVID -19 cases, both export and production decreased due to the slowing overseas economies. Although the manufacturers temporarily curbed their capital investment to increase production capacity due to the decelerating overseas economies, they maintained a positive stance on their capital investment mainly for decarbonization and digitization.

Overseas, in China, consumer spending was sluggish due to strict activity restrictions through its zero-COVID policy. In addition, production in the manufacturing industry declined, affected by a decrease in smartphone and automobile production. In Europe and the United States, the recovery of service spending follow ing the relaxation of activity restrictions ran its course, and there have been impacts of soaring energy and resource prices, which needs close monitoring on an ongoing basis.

As for the business environment surrounding the JCU Group, stagnated consumer s pending resulted in sluggish demand for high-performance electronic devices such as smartphones, PCs, and tablets, which caused a decrease in demand for PWBs for high-performance electronic devices and semiconductor package substrates. In the automotive industry, we saw a decrease in automobile production mainly in China, caused by semiconductor shortages and the COVID-19 infections throughout the fiscal year under review.

Despite the severe business environment as above, together with the impact of the we akening of the yen, the results of operations of the JCU Group were as follows.

(Millions of yen, unless otherwise stated)

	FY3/22	FY3/23	Year-over-year
	(Apr. 1, 2021-Mar. 31, 2022)	(Apr. 1, 2022-Mar. 31, 2023)	% change
Net Sales	24,256	27,137	Up 11.9%
Operating profit	8,990	9,285	Up 3.3%
Ordinary profit	9,231	9,369	Up 1.5%
Profit attributable to owners of parent	6,370	6,013	Down 5.6%

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.

The results of operations by segment were as follows.

Chemicals Business

Chemicals for electronics industry

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.
Korea:	As a result of demand for the semiconductor market being slacked, demand for chemicals during
	the fiscal year under review decreased because manufactures of semiconductor package substrates
	continued to adjust inventories.

2

			JCU CORPORATION (4975) Financial Results for FY3/23
Chemicals for decoration
Japan:	The easing of semiconductors and parts shortage led to a recovery trend in automobile production
	and an increase in demand for chemicals during the fiscal year under review.
China:	Despite a decrease in automobile production due to the semiconductor shortage and the COVID -19
	infections, demand for chemicals during the fiscal year under review stayed flat.
			(Millions of yen, unless otherwise stated)
Chemicals Business	FY3/22	FY3/23		Year-over-year
(Apr. 1, 2021-Mar. 31, 2022)	(Apr. 1, 2022-Mar. 31, 2023)		% change
Net Sales		22,948	24,528		Up 6.9%
Segment profit		10,007	9,798		Down 2.1%

Machine Business

Net sales, orders received, and order backlog all increased substantially thanks to the resumption of the projects that had been postponed due to the pandemic and an increase in demand for new investments in plating machines for the electronics industry.

(Millions of yen, unless otherwise stated)

Machine Business	FY3/22	FY3/23	Year-over-year
(Apr. 1, 2021-Mar. 31, 2022)	(Apr. 1, 2022-Mar. 31, 2023)	% change
Net Sales	1,306	2,608	Up 99.6%
Segment profit (loss)	(88)	369	-
Orders received	3,199	4,440	Up 38.8%
Order backlog	2,076	3,954	Up 90.5%

Other businesses

The Other businesses posted sales of 0 million yen (down 11.6% year over year) with a segment loss of 17 million yen (as compared with a segment loss of 17 million yen a year earlier).

(2) Financial Position

Assets, liabilities and net assets

Assets

Total assets at the end of the fiscal year under review increased 4,008 million yen (up 9.8%) from the end of the previous fiscal year to 44,901 million yen. Current assets increased 4,139 millio n yen (up 12.7%) to 36,646 million yen mainly due to an increase in cash and deposits. Non -current assets decreased 130 million yen (down 1.6%) to 8,255 million yen due to decreases in investment securities and deferred tax assets, which were partially off set by an increase in property, plant and equipment due to the acquisition of land.

Liabilities

Total liabilities at the end of the fiscal year under review decreased 686 million yen (down 8.9%) from the end of the previous fiscal year to 7,039 million yen. Current liabilities decreased 547 million yen (down 8.2%) to 6,164 million yen. This was mainly due to a decrease in notes and accounts payable -trade and other. Non-current liabilities decreased 138 million yen (down 13.7%) to 875 million yen due to a decrease in long-term borrowings.

Net assets

Net assets at the end of the fiscal year under review increased 4,695 million yen (up 14.2%) from the end of the previous fiscal year to 37,861 million yen. This was mainly due to increases in foreign currency translation adjustment and retained earnings.

3