Mani : Summary of Consolidated Financial Results for FY2023 1Q

Summary of Consolidated Financial Results

for the Three Months Ended November 30, 2022

(Based on Japanese GAAP)

				January 12, 2023
Company name:	MANI, INC.
Stock exchange listing:	Tokyo
Stock code:	7730	URL http://www.mani.co.jp
Representative:	President & Representative Executive Officer	Masahiko Saito
Inquiries:	Executive Vice President & Executive Officer	Kazuo Takahashi	TEL [phone]
Scheduled date to submit Quarterly Securities Report:	January 13, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

							(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended November 30, 2022 (from September 1, 2022 to November 30, 2022)
(1) Consolidated operating results (cumulative)						(Percentages indicate year-on-year changes)
		Net Sales			Operating income	Ordinary income	Profit attributable to
				owners of parent
		Millions of yen	%		Millions of yen	%	Millions of yen	%	Millions of yen	%
Three months ended November 30, 2022	6,105	29.1		1,748	2.1	1,736	(9.2)	1,299	(1.8)
Three months ended November 30, 2021	4,728	12.6		1,713	22.1	1,911	50.3	1,322	34.4
Note:	Comprehensive income:
	For the three months ended November 30, 2022		¥1,348 million	[(23.1%)]
	For the three months ended November 30, 2021		¥1,754 million	[119.7%]
		Earnings per share			Diluted earnings per share
				Yen			Yen
Three months ended November 30, 2022		13.20		-
Three months ended November 30, 2021		13.43		-
(2) Consolidated financial position
		Total assets			Net assets	Equity capital ratio
		Millions of yen			Millions of yen			%
As of November 30, 2022		49,109				44,991			91.6
As of August 31, 2022		50,113				45,414			90.6
Reference:	Equity
	As of November 30, 2022	¥44,991 million
	As of August 31, 2022	¥45,414 million

2. Cash dividends

			Annual dividends per share
		1Q-end	2Q-end	3Q-end		Year-end	Total
		Yen	Yen	Yen		Yen	Yen
Year ended August 31, 2022	-	12.00	-		18.00	30.00
Year ending August 31, 2023	-
Year ending August 31, 2023 (Forecast)		14.00	-		19.00	33.00
Note:	Revisions to the forecasts of dividends most recently announced: None

3. Forecast of consolidated financial results for the year ending August 31, 2023 (from September 1, 2022 to August 31, 2023)

(Percentages indicate year-on-year changes)

		Net Sales		Operating income		Ordinary income	Profit attributable to	Earnings per share
				owners of parent
		Millions of yen		%	Millions of yen	%		Millions of yen	%	Millions of yen	%	Yen
Six months ending	11,150		15.5	3,350	8.8		3,350	(1.2)	2,350	0.7	23.88
February 28, 2023
	Full year	23,400		14.6	7,100	15.2		7,100	(5.9)	5,000	(5.5)	50.80
Note:	Revisions to earnings forecasts most recently announced: None

* Notes
(1)	Changes in significant subsidiaries during the three months ended November 30, 2022	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	No

(3) Changes in accounting policies, changes in accounting estimates, and retrospective restatements of prior period financial statements

① Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
②Changes in accounting policies due to other reasons:	No
③Changes in accounting estimates:	No
④Restatement of prior period financial statements:	No

Note: Please refer to p.8 "Changes in accounting policies" of the Attached Materials Index for further details.

(4) Number of issued shares (common shares)

① Total number of issued shares at the end of the period (including treasury shares)

As of November 30, 2022

106,911,000 shares

As of August 31, 2022

106,911,000 shares

②Number of treasury shares at the end of the period

As of November 30, 2022

8,484,468 shares

As of August 31, 2022

8,484,468 shares

③Average number of shares during the period (cumulative from the beginning of the fiscal year)

As of November 30, 2022

98,426,532 shares

As of November 30, 2021

98,426,541 shares

• Quarterly financial reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters

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, any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ substantially due to various factors.

MANI, INC. (TOKYO 7730) Consolidated Financial Results of the First Quarter of the Fiscal Year Ending August 31, 2023

• Attached Materials Index

1. Overview of business results	2
(1)	Explanation of operating results	2
(2)	Explanation of financial position	3
(3)	Explanation of consolidated earnings forecasts and other forward-looking statements	3
2. Quarterly consolidated financial statements	4
(1)	Quarterly consolidated balance sheet	4
(2)	Quarterly consolidated income statements and quarterly consolidated comprehensive income statements	6
	Quarterly consolidated income statements
	For the three months ended November 30, 2021 and November 30, 2022	6
	Quarterly consolidated comprehensive income statements
	For the three months ended November 30, 2021 and November 30, 2022	7
(3) Notes to quarterly consolidated financial statements	8
	(Notes on premise of going concern)	8
	(Notes on significant changes in the amount of shareholders' equity)	8
	(Changes in accounting policies)	8
	(Segment information, etc.)	9
	(Significant subsequent events)	9

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MANI, INC. (TOKYO 7730) Consolidated Financial Results of the First Quarter of the Fiscal Year Ending August 31, 2023

1. Overview of business results

(1) Explanation of operating results

During the first quarter of the fiscal year ending August 31, 2023, normalization within the global economy has showed steady progress, as measures and vaccinations for COVID-19 are in progress, and restrictions towards economic activities in many countries have been eased. However, the current outlook remains uncertain due to factors such as soaring resource and energy prices caused by the Russia-Ukraine conflict, drastic rise in policy interest rates in Europe and the United States in response to inflationary risks, and rapid exchange rate fluctuations.

Under such circumstances, our Group aims to contribute to the well-being of people around the world by providing our products worldwide, based on our commitment "The Best Quality In The World, To The World". We are engaged in realizing our corporate philosophy by beginning our medium-term management plan in fiscal year ended August 31, 2022, and reforming the business model through globalization of sales, production and development functions with the aim of further growth. During this fiscal year, we are strengthening the construction of the mass production system and marketing activities aimed at expanding sales for the NiTi rotary file1, which is one of our key products in our medium-term management plan. We are also preparing to launch the vitreous forceps2 in Japan and the new dental restoration material3 which will be sold under the MANI brand in Europe. At our consolidated subsidiary in Germany, the construction of the new head office factory is in progress, and is planned to be completed around August, 2023. Furthermore, we have promoted the smart factory concept with the aim of establishing a global production system in Japan, and have been preparing for future designs. We will continue to aim to increase corporate value through growth strategies based on our medium-term management plan.

(References)

1. A flexible nickel titanium dental endodontic instrument used to treat an infected dental root canal in an endodontic treatment, which is one of the treatments for the dental nervous system known as pulp.
2. An ophthalmic therapeutic instrument used to treat the fundus in a vitreous surgery, which is one of the surgeries that treats ophthalmic diseases such as retinal detachment and diabetic retinopathy.
3. An artificial resin material that is used for treatments to restore the shape of a tooth by filling the deficit portion (dental restoration treatment) and treatments to enhance dental aesthetics (aesthetic dental treatment).

Operating results for the first quarter of the fiscal year ending August 31, 2023 are stated below.

Net sales were ¥6,105 million (up 29.1% year on year), due to high product demands mainly in Japan, Europe and Asia. Operating income was ¥1,748 million (up 2.1% year on year) due to an increase in cost of sales, which was caused by increase in manufacturing costs at overseas subsidiaries and sales of products, and increase in selling, general and administrative expenses for enhancing our personnel structure. Ordinary income was ¥1,736 million (down 9.2% year on year) due to a decrease in foreign exchange profits from the same period of the fiscal year. Profit attributable to owners of parent was ¥1,299 million (down 1.8% year on year) due to a decrease in ordinary income and deferred income taxes.

The following is an overview of financial results by segment. Segment sales figures are those from external customers.

	Net sales	Segment income (Operating income)
	Millions of yen	Year on year (%)	Millions of yen	Year on year (%)
Surgical products	1,637	25.4	476	2.0
Eyeless Needle products	2,081	55.4	595	22.0
Dental products	2,386	14.5	677	(10.7)
Consolidated	6,105	29.1	1,748	2.1

(Surgical products)

The segment's sales were ¥1,637 million (up 25.4% year on year) and segment income (operating income) was ¥476 million (up 2.0% year on year). Sales and operating income have increased due to an increase in demand for high-quality evaluated ophthalmic knives in Japan and Asia, particularly in China, from the same period of the fiscal year.

(Eyeless Needle products)

The segment's sales were ¥2,081 million (up 55.4% year on year) and segment income (operating income) was ¥595 million (up 22.0% year on year). Sales and operating income have increased greatly due to an increase in orders for eyeless needles, which was caused by growing demand in Asia, North America and Europe since the previous fiscal year.

(Dental products)

The segment's sales were ¥2,386 million (up 14.5% year on year), and segment income (operating income) was ¥677 million (down 10.7% year on year). Sales have increased due to strong sales of dental restoration materials in Europe and steady sales of dental endodontic instruments (reamers and files) and dental rotary and cutting instruments (dia-burs) in Japan. Operating income has decreased mainly due to an increase in selling, general and administrative expenses from the same period of the fiscal year.

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MANI, INC. (TOKYO 7730) Consolidated Financial Results of the First Quarter of the Fiscal Year Ending August 31, 2023

(2) Explanation of financial position

Total assets as of the end of the first quarter (November 30, 2022) stood at ¥49,109 million, a decrease of ¥1,004 million from the end of the previous fiscal year. This was primarily due to a decrease in inventories, cash and deposits, and accrued receivable.

Total liabilities as of the end of the first quarter (November 30, 2022) stood at ¥4,117 million, a decrease of ¥581 million from the end of the previous fiscal year. This was primarily due to a decrease in accounts payable and income taxes payable.

Total net assets as of the end of the first quarter (November 30, 2022) stood at ¥44,991 million, a decrease of ¥422 million from the end of the previous fiscal year. This was primarily due to a decrease in retained earnings resulting from dividend payments.

(3) Explanation of consolidated earnings forecasts and other forward-looking statements

Results for the first quarter of the fiscal year ending August 31, 2023 are as stated in "(1) Explanation of operating result." The consolidated earnings forecast for the full fiscal year remains unchanged from the figures announced in the "Summary of Consolidated Financial Results for the Fiscal Year Ended August 31, 2022" on October 11, 2022.

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