Kurabo Industries : Consolidated Financial Results for theFiscal Year Ended March 31, 2023(Under Japanese GAAP)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

May 11, 2023

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

(Under Japanese GAAP)

Company name:	Kurabo Industries Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	3106
URL:	https://www.kurabo.co.jp
Representative:	Haruya Fujita, President
Inquiries:	Hiroshi Fujii, Director, Executive Officer, and Manager of Finance & Accounting Department
Telephone:	[phone]

Scheduled date of ordinary general meeting of shareholders:	June 29, 2023
Scheduled date to commence dividend payments:	June 30, 2023
Scheduled date to file annual securities report:	June 29, 2023
Preparation of supplementary material on financial results:	Yes
Holding of financial results briefing:	Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated operating results				(Percentages indicate year-on-year changes.)
		Net sales		Operating profit	Ordinary profit		Profit attributable to
				owners of parent
Fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen	%
March 31, 2023		153,522		16.1	8,676	15.2	10,024	14.1	5,516	(1.5)
March 31, 2022		132,215		-	7,528	-	8,783		-	5,602	-
Note: Comprehensive income	For the fiscal year ended March 31, 2023:	¥9,582 million	[80.4%]
		For the fiscal year ended March 31, 2022:	¥5,312 million		[-%]

	Basic earnings	Diluted earnings	Return on equity
	per share	per share
Fiscal year ended	Yen	Yen	%
March 31, 2023	287.08	-	5.6
March 31, 2022	280.35	-	5.9

Reference: Share of profit (loss) of entities accounted for using equity method

For the fiscal year ended March 31, 2023: ¥21 million

For the fiscal year ended March 31, 2022: ¥(166) million

Ordinary profit/

total assets

%

5.9

5.2

Operating profit/

net sales

%

5.7

5.7

(2) Consolidated financial position

		Total assets	Net assets
As of		Millions of yen	Millions of yen
March 31, 2023		174,086	102,907
March 31, 2022		167,285	97,415
Reference:	Equity
	As of March 31, 2023:	¥101,334 million
	As of March 31, 2022:	¥96,016 million

Equity-to-asset ratio

%

58.2

57.4

Net assets per share

Yen

5,386.20

4,853.12

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at end of
	operating activities	investing activities	financing activities
	period
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2023	2,516	(2,969)	(3,581)	10,360
March 31, 2022	9,246	(3,341)	(14,065)	14,073

2. Cash dividends

		Annual dividends per share			Total cash		Payout ratio	Ratio of
	First	Second	Third					dividends to
	Fiscal			dividends
	quarter-	quarter-	quarter-	Total			(Consolidated)	net assets
	year-end		(Total)
	end	end	end					(Consolidated)
	Yen	Yen	Yen	Yen	Yen		Millions of yen		%	%
Fiscal year ended	-	0.00	-	70.00	70.00	1,392		25.0	1.5
March 31, 2022
Fiscal year ended	-	35.00	-	35.00	70.00	1,336		24.4	1.4
March 31, 2023
Fiscal year ending	-	35.00	-	35.00	70.00				22.7
March 31, 2024
(Forecast)

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2024 (from April 1, 2023

to March 31, 2024)					(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
	Millions		%	Millions	%	Millions	%	Millions	%	Yen
	of yen		of yen	of yen	of yen
Six months ending	68,500		(4.9)	1,900	(44.2)	2,300	(50.5)	1,400	(57.1)	74.41
September 30, 2023
Full year	154,000		0.3	7,900	(8.9)	8,500	(15.2)	5,800	5.1	308.28

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2023	20,000,000 shares
As of March 31, 2022	20,756,228 shares

(ii) Number of treasury shares at the end of the period

As of March 31, 2023	1,186,212 shares
As of March 31, 2022	971,652 shares

(iii) Average number of shares outstanding during the period

Fiscal year ended March 31, 2023	19,217,294 shares
Fiscal year ended March 31, 2022	19,983,563 shares

Note: The Company has introduced the Board Benefit Trust, a share-based compensation plan for directors, etc. using a trust, and the Company's shares held by the trust account are included in the number of treasury shares.

(Reference) Overview of non-consolidated financial results

Non-consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Non-consolidated operating results				(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit
Fiscal year ended	Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen	%
March 31, 2023	78,879		15.2	4,373		11.3	5,956	15.0	3,958	(1.1)
March 31, 2022	68,486		-	3,928		-	5,180	-	4,002	-
	Basic earnings	Diluted earnings
	per share		per share
Fiscal year ended			Yen			Yen
March 31, 2023	206.01			-
March 31, 2022	200.29			-
(2) Non-consolidated financial position
	Total assets		Net assets	Equity-to-asset ratio	Net assets per share
As of	Millions of yen	Millions of yen		%		Yen
March 31, 2023	129,359		80,762		62.4	4,292.75
March 31, 2022	128,712		78,164		60.7	3,950.80
Reference: Equity
As of March 31, 2023:	¥80,762 million
As of March 31, 2022:	¥78,164 million

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements and others)
  The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, the statements herein do not constitute assurances regarding the Company's actual results. Actual financial and other results may differ substantially from the statements herein due to various factors. For matters regarding the above earnings forecasts, please refer to "(4) Future outlook" of "1. Overview of operating results and others" on page 4 of the attached materials.
  (Regarding the financial results briefing)
  The Company plans to hold a financial results briefing for institutional investors and analysts on Thursday, May 18, 2023. The explanatory materials on financial results to be distributed at the briefing will be posted on the Company's website following the briefing.

Attached Material
1. Overview of operating results and others	2
(1)	Overview of operating results for the fiscal year under review	2
(2)	Overview of financial position for the fiscal year under review	3
(3)	Overview of cash flows for the fiscal year under review	3
(4)	Future outlook	4
2. Basic policy regarding selection of accounting standards	5
3. Consolidated financial statements and significant notes thereto	6
(1)	Consolidated balance sheet	6
(2)	Consolidated statement of income and consolidated statement of comprehensive income	8
	Consolidated statement of income	8
	Consolidated statement of comprehensive income	9
(3)	Consolidated statement of changes in equity	10
(4)	Consolidated statement of cash flows	12
(5)	Notes to consolidated financial statements	14
	(Notes on premise of going concern)	14
	(Notes on consolidated balance sheet)	14
	(Changes in presentation)	14
	(Additional information)	14
	(Segment information, etc.)	16
	(Relationship to revenue recognition)	20
	(Per share information)	22
	(Subsequent events)	22
4. Others	23
(1)	Changes of officers (scheduled as of June 29, 2023)	23
(2)	Reference information	23

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