Neturen : Consolidated Financial Results for the Three Months Ended June 30, 2023

Consolidated Financial Results

for the Three Months Ended June 30, 2023

[Japanese GAAP]

August 7, 2023

Company name: Neturen Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Code number: 5976

URL: https://www.k-neturen.co.jp/

Representative: Katsumi Omiya, Representative Director, Member of the Board and President

Contact: Hideaki Shinohara, General Manager, Accounting Department, Administrative Headquarters

Phone: [phone]

Scheduled date of filing quarterly securities report: August 10, 2023

Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on quarterly financial results: No

Availability of quarterly financial results briefing: No

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (April 1, 2023-June 30, 2023)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
		Net sales		Operating income	Ordinary income	Profit attributable to
			owners of parent
	Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	June 30, 2023	13,962	0.3	270	(60.3)	560	(45.8)	276	(52.6)
	June 30, 2022	13,922	17.9	682	(25.3)	1,033	(3.7)	583	(12.6)

(Note) Comprehensive income: Three months ended June 30, 2023: ¥838 million [(61.2)%]

				Three months ended June 30, 2022: ¥2,161 million [36.1%]
			Basic earnings	Diluted earnings
			per share	per share
	Three months ended			Yen			Yen
	June 30, 2023		7.37			-
	June 30, 2022		14.73			-
(2) Consolidated Financial Position
				Total assets		Net assets	Equity ratio
				Million yen			Million yen	%
	As of June 30, 2023			78,179		65,396	75.7
	As of March 31, 2023			79,888		66,549	74.3

(Reference) Equity: As of June 30, 2023: ¥59,151 million As of March 31, 2023: ¥59,394 million

2. Dividends

				Annual dividends
		1st quarter-end	2nd quarter-end		3rd quarter-end	Year-end	Total
Fiscal year ended		Yen	Yen		Yen	Yen	Yen
	-	15.00		-	15.00	30.00
March 31, 2023
Fiscal year
ending March		-
31, 2024
Fiscal year ending
March 31, 2024			24.00		-	24.00	48.00
(Forecast)

(Note) Revision to the forecast for dividends announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023-March 31, 2024) (% indicates changes from the previous corresponding period.)

							Profit attributable	Basic earnings
	Net sales		Operating income	Ordinary income	to owners of
		per share
							parent
First half	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
31,000	11.3	1,000	(28.2)	1,200	(40.9)	800	(34.5)	21.22
Full year	63,000	9.5	2,800	16.8	3,300	6.9	2,000	424.2	53.04

(Note) Revision to the financial results forecast announced most recently: None

* Notes:

1. Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation) Newly included: -
   Excluded: -
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes (Note) For details, please see "2. Quarterly Consolidated Financial Statements (3) Notes to Quarterly Consolidated Financial Statements (Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)" on page 7 of the appendix (Japanese version only).
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 1. Changes in accounting policies due to the revision of accounting standards: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
5. Total number of issued and outstanding shares (common shares)
6. 1. Total number of issued and outstanding shares at the end of the period (including treasury shares):

June 30, 2023:	38,678,700 shares
March 31, 2023:	38,678,700 shares
2) Total number of treasury shares at the end of the period:
June 30, 2023:	1,416,027 shares
March 31, 2023:	970,011 shares
3) Average number of shares during the period:
Three months ended June 30, 2023:	37,521,527 shares
Three months ended June 30, 2022:	39,631,504 shares

• These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
• Explanation of the proper use of financial results forecast and other notes (Notes on forward-looking statements, etc.)
  The forward-looking statements contained in this document are based on judgments made in accordance with information available at the time of the release of this document and include many uncertain factors. Actual results may differ from these forecasts due to changes in business conditions and other factors.
  For the assumptions used for the financial results forecast as well as precautions regarding the use of such forecast, please refer to "1. Qualitative Information on Quarterly Financial Results (3) Explanation Regarding Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the Attachments (Japanese version only).

2. Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

					(Million yen)
			As of March 31, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits			18,320		15,689
Notes and accounts receivable - trade, and contract	11,646		11,526
assets
Electronically recorded monetary claims			3,364		3,954
Securities	158		154
Finished goods			1,459		1,323
Work in process	1,877		2,260
Raw materials and supplies			3,547		2,964
Other	2,198		2,550
Allowance for doubtful accounts			(189)		(188)
Total current assets			42,383		40,235
Non-current assets
Property, plant and equipment
Buildings and structures, net			8,093		8,154
Machinery, equipment and vehicles, net	6,225		6,471
Land			9,890		9,905
Construction in progress	560		704
Other, net			717		697
Total property, plant and equipment			25,486		25,932
Intangible assets
Leasehold interests in land	691		708
Other			113		102
Total intangible assets			805		810
Investments and other assets
Investment securities	9,809		9,791
Long-term loans receivable			18		19
Retirement benefit asset	3		-
Other			1,523		1,504
Allowance for doubtful accounts	(141)	(114)
Total investments and other assets			11,212		11,200
Total non-current assets			37,504		37,944
Total assets			79,888		78,179

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					(Million yen)
			As of March 31, 2023	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade			3,913		3,858
Electronically recorded obligations - operating	3,367		3,328
Short-term borrowings			1,262		684
Income taxes payable	172		99
Provision for bonuses			558		378
Provision for bonuses for directors (and other	12		16
officers)
Provision for share awards for directors (and other			8		13
officers)
Other	2,501		2,772
Total current liabilities			11,797		11,152
Non-current liabilities
Long-term borrowings			138		131
Provision for share awards for directors (and other	6		16
officers)
Retirement benefit liability			362		354
Other	1,033		1,127
Total non-current liabilities			1,540		1,630
Total liabilities			13,338		12,782
Net assets
Shareholders' equity
Share capital			6,418		6,418
Capital surplus	1,627		1,725
Retained earnings			47,639		47,348
Treasury shares	(688)	(1,093)
Total shareholders' equity			54,997		54,397
Accumulated other comprehensive income
Valuation difference on available-for-sale securities			1,868		1,985
Foreign currency translation adjustment			2,361		2,608
Remeasurements of defined benefit plans			167		160
Total accumulated other comprehensive income			4,397		4,753
Non-controlling interests			7,155		6,245
Total net assets			66,549		65,396
Total liabilities and net assets			79,888		78,179

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