[Delayed]Summary of Consolidated Financial Results for the Six Months Ended September 30, 2021 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended September 30, 2021 (Based on Japanese GAAP)

November 5, 2021

Company name:

PRESS KOGYO CO., LTD.

Stock exchange listing:

Tokyo

Stock code:

7246

URL

https://www.presskogyo.co.jp

Representative:

President & CEO

Tetsushi Mino

Inquiries:

General Manager, General Affairs Dept.

Takanori Sasaoka

TEL [phone]

Scheduled date to file Quarterly Securities Report:

November 5, 2021

Scheduled date to commence dividend payments:

December 2, 2021

Preparation of supplementary material on quarterly financial results:

No

Holding of quarterly financial results meeting:

Yes

(for analysts and institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Six months ended September 30, 2021

75,521

-

5,471

-

5,415

-

3,306

-

Six months ended September 30, 2020

67,194

(36.1)

(1,281)

-

(1,220)

-

(2,585)

-

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended September 30, 2021

30.50

-

Six months ended September 30, 2020

(23.85)

-

Note: From the beginning of the 1st quarter of the current fiscal year ending March 31, 2022, the Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29). The figures for the 1st quarter of the current fiscal year above include the effects of the said standards. Accordingly, percentages of changes from the same period of the previous fiscal year are not indicated.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen	%	Yen
As of September 30, 2021	158,337	100,104	58.6	855.77
As of March 31, 2021	152,609	95,604	58.3	820.51

Note: From the beginning of the 1st quarter of the current fiscal year ending March 31, 2022, the Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29). The figures for the 1st quarter of the current fiscal year above include the effects of the said standards.

2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended March 31, 2021	-	0.00	-	7.50	7.50
Year ending March 31, 2022	-	9.50
Year ending March 31, 2022 (Forecast)			-	9.50	19.00

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Full year	157,400	-	12,000		-	11,700		-	6,600		-	61.41

Note: From the beginning of the year ending March 31, 2022, the Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29). Forecast of consolidated financial results above include the effects of the said standards. Accordingly, percentages of changes from the same period of the previous fiscal year are not indicated.

1

The Company resolved acquisition and cancellation of treasury stock at the Board of Directors held on November 5, 2021 as described below. In the "Earnings per share" of the forecast, the impact of the acquisition of treasury stock is taken into account.

(1)Details of acquisition
・Type of stock to be acquired:	Common Stock
・Total number of shares to be acquired:	Up to 3 million shares
・Total acquisition amount:	Up to 1.2 billion yen
・Acquisition period:	From November 8, 2021 to March 15, 2022
・Acquisition method:	Market transactions on the Tokyo Stock Exchange
	・Off-Auction Own Share Purchase Trading System (ToSTNeT-3)
	・Open Market Acquisition based on discretionary dealing agreement.
(2)Details of cancellation
・Type of stock to be cancelled:	Common Stock
・Total number of shares to be cancelled:	All the shares of common stock to be acquired in accordance with above (1)
・Scheduled date of cancellation:	March 31, 2022
4. Notes
(1) Changes in significant subsidiaries during the six months ended September 30, 2021	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 restatement of prior period financial statements

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

(4) Number of issued shares (common shares)

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

	As of September 30, 2021	114,009,770	shares	As of March 31, 2021	114,009,770	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	5,610,314	shares	As of March 31, 2021	5,609,495	shares

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

Six months ended September 30, 2021

108,399,888 shares

Six months ended September 30, 2020

108,400,976 shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	17,151	20,186
Notes and accounts receivable - trade	34,360	31,511
Merchandise and finished goods	1,381	1,331
Work in process	12,644	13,232
Raw materials and supplies	1,748	1,733
Income taxes receivable	10	5
Other	1,653	4,149
Allowance for doubtful accounts	-	(3)
Total current assets	68,950	72,147
Non-current assets
Property, plant and equipment
Buildings and structures, net	11,499	12,059
Machinery, equipment and vehicles, net	17,127	17,551
Land	32,223	32,252
Other, net	10,949	11,381
Total property, plant and equipment	71,800	73,245
Intangible assets
Other	637	631
Total intangible assets	637	631
Investments and other assets
Deferred tax assets	636	791
Retirement benefit asset	3,571	3,653
Investment and other assets	7,089	7,943
Allowance for doubtful accounts	(76)	(76)
Total investments and other assets	11,221	12,312
Total non-current assets	83,658	86,190
Total assets	152,609	158,337
Liabilities
Current liabilities
Notes and accounts payable - trade	24,176	23,932
Short-term borrowings	7,213	7,306
Income taxes payable	366	970
Provision for bonuses	2,637	2,264
Provisions	77	46
Other	7,238	8,557
Total current liabilities	41,709	43,078
Non-current liabilities
Long-term borrowings	2,571	2,233
Deferred tax liabilities	1,870	1,993
Deferred tax liabilities for land revaluation	7,601	7,601
Provisions	205	188
Retirement benefit liability	2,115	2,198
Asset retirement obligations	404	405
Other	526	533
Total non-current liabilities	15,295	15,154
Total liabilities		57,005	58,232

3

						(Millions of yen)
					As of March 31, 2021	As of September 30, 2021
Net assets
Shareholders' equity
Share capital					8,070	8,070
Capital surplus				2,074	2,074
Retained earnings				59,941	62,434
Treasury shares				(1,619)	(1,619)
Total shareholders' equity				68,466	70,959
Accumulated other comprehensive income
Valuation	difference	on	available-for-sale	1,561	2,118
securities
Revaluation reserve for land			17,255	17,255
Foreign currency translation adjustment	629	1,393
Remeasurements of defined benefit plans	1,031	1,037
Total accumulated other comprehensive income	20,477	21,806
Non-controlling interests				6,660	7,339
Total net assets					95,604	100,104
Total liabilities and net assets				152,609	158,337

4

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		September 30, 2020	September 30, 2021
Net sales	67,194	75,521
Cost of sales	62,112	63,497
Gross profit	5,081	12,023
Selling, general and administrative expenses	6,363	6,552
Operating profit (loss)	(1,281)	5,471
Non-operating income
Interest income	16	11
Dividend income	90	88
Rental income from non-current assets	36	33
Other	108	28
Total non-operating income	252	162
Non-operating expenses
Interest expenses	112	72
Foreign exchange losses	57	125
Other	19	19
Total non-operating expenses	190	217
Ordinary profit (loss)	(1,220)	5,415
Extraordinary income
Gain on sale of non-current assets	1	13
Gain on insurance claims	1	-
Total extraordinary income	3	13
Extraordinary losses
Loss on sale of non-current assets	-	0
Loss on retirement of non-current assets	37	39
Impairment losses	73	-
Provision for environmental measures	179	-
Loss on COVID19	1,673	-
Total extraordinary losses	1,964	39
Profit (loss) before income taxes	(3,180)	5,390
Income taxes - current	463	1,178
Income taxes - deferred	(626)	(288)
Total income taxes	(162)	890
Profit (loss)	(3,018)	4,499
Profit (loss) attributable to non-controlling interests	(432)	1,193
Profit (loss) attributable to owners of parent	(2,585)	3,306

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