Press Kogyo : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022 (Based on Japanese GAAP)

Translation

Notice: This document is a 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 Three Months Ended June 30, 2022 (Based on Japanese GAAP)

				August 4, 2022
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:	August 4, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
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 June 30, 2022 (from April 1, 2022 to June 30, 2022)

(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	%
Three months ended June 30, 2022		42,287	4.3		2,448	(34.1)		2,935	(22.1)	1,628	(31.9)
Three months ended June 30, 2021		40,537	-		3,718	-		3,769	-	2,391	-
Note: Comprehensive income	For the	three months ended June 30, 2022	¥3,975 million	[(18.6)%]
	For the three months ended June 30, 2021	¥4,886 million	[-%]
		Earnings per share	Diluted earnings per
			share
			Yen			Yen
Three months ended June 30, 2022			15.53			-
Three months ended June 30, 2021			22.06			-

Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of the previous fiscal year, each figure for the three months ended June 30, 2021, is the figure after applying the accounting standard, etc., and the percentage of year-on-year change is not shown.

(2) Consolidated financial position

	Total assets		Net assets		Equity ratio		Net assets per share
	Millions of yen	Millions of yen			%		Yen
As of June 30, 2022	169,588	104,169			56.4		922.44
As of March 31, 2022	172,617	103,219			54.9		899.34
Reference: Equity
As of June 30, 2022:	¥95,683 million
As of March 31, 2022:	¥94,794 million
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, 2022	-			9.50			-		10.50	20.00
Year ending March 31, 2023	-
Year ending March 31, 2023 (Forecast)				10.50			-		10.50	21.00

Note: Revisions to the forecast of cash dividends most recently announced: No

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

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
83,900	11.1	4,600	(15.9)	4,800	(11.4)			4,100	24.0	39.55
September 30, 2022
Full year	172,100	7.5	10,800	(13.1)	11,100	(12.4)			7,500	5.5	72.34
Note: Revisions to the	forecast of financial results most recently announced: No
4. Notes
(1) Changes in significant subsidiaries during the three months ended June 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 restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:		No
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 June 30, 2022	111,015,070	shares	As of March 31, 2022	111,015,070	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	7,286,776	shares	As of March 31, 2022	5,610,620	shares

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

Three months ended June 30, 2022

104,816,833 shares

Three months ended June 30, 2021

108,400,066 shares

• Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants or auditing firms
• Explanation regarding appropriate use of business forecasts and other special instructions

The projections contained in this document are based on information currently available to the Company and certain assumptions that are deemed to be reasonable, and the Company does not intend to guarantee their achievement. Actual results may differ significantly as a consequence of various factors. Please refer to "1. Qualitative information on financial results for the three months ended June 30, 2022, (1) Explanation of operating results" on page 2 of the attached materials for the conditions that form the assumptions for the business forecasts.

Attached Material

1.	Qualitative information on financial results for the three months ended June 30, 2022...........................	2
	(1)	Explanation of operating results....................................................................................................	2
	(2)	Explanation of financial position ..................................................................................................	3
	(3)	Explanation of consolidated financial results forecast and other forward-looking statements .....	3
2.	Quarterly consolidated financial statements .............................................................................................	4
	(1)	Consolidated balance sheets..........................................................................................................	4

1. Consolidated statements of income (cumulative) and consolidated statements of

comprehensive income (cumulative) ............................................................................................	6
Consolidated statements of income (cumulative) .........................................................................	6
Consolidated statements of comprehensive income (cumulative) ................................................	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
(Segment information)..................................................................................................................	8

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1. Qualitative information on financial results for the three months ended June 30, 2022

(1) Explanation of operating results

In the three months ended June 30, 2022, the outlook for the truck and construction machinery business environment in Japan and overseas was uncertain as a result of the ongoing shortage of semiconductors, as well as factors such as lockdowns in China and soaring resource prices due to the situation in Europe.

Although the Group promoted structural changes and rationalization activities amid drastically dwindling manufacturing activities, primarily at bases in Japan, it was significantly affected by the increased burden of fixed costs and soaring energy costs.

As a result of the above, in the three months ended June 30, 2022, the Company recorded net sales of 42,287 million yen (up 4.3% year on year) due to the impact of exchange differences and rising raw material prices because of the weakening yen, operating profit of 2,448 million yen (down 34.1% year on year), ordinary profit of 2,935 million yen (down 22.1% year on year) and profit attributable to owners of parent of 1,628 million yen (down 31.9% year on year).

Business performance by segment is as follows.

(Automotive-Related Business)

The business environment and business performance in Japan and overseas in this segment was as follows.

[Japan]

Domestic demand for heavy- and medium-duty trucks decreased by 6,700 vehicles year on year, to 11,900 vehicles, and domestic demand for light-duty trucks decreased by 4,800 vehicles year on year, to 14,400 vehicles. Domestic production decreased year on year due to shortages in semiconductors and other factors although combined exports of heavy- and medium-duty trucks and light-duty trucks increased year on year.

[Thailand]

Due to increased domestic demand and exports of 1-tonpick-up trucks, production increased year on year at the TSPK- Group.

[U.S.A.]

Production at PK U.S.A. INC. increased year on year due to new start-ups and so forth, despite a decrease in domestic demand.

[Indonesia]

Owing to increased domestic demand and exports of commercial vehicles, production increased significantly year on year at PT. PK Manufacturing Indonesia.

[Sweden]

Production increased year on year at PRESS KOGYO SWEDEN AB.

As a result of the above, net sales in this segment amounted to 34,388 million yen (up 8.6% year on year) and segment profit amounted to 3,128 million yen (down 17.0% year on year).

(Construction Machinery-Related Business)

The business environment and business performance in Japan and overseas in this segment was as follows.

[Japan]

Production at KYOWA MFG. CO. LTD. increased year on year with strong performance in mining machinery but fell at the Company's Onomichi Plant due to the impact of capacity utilization adjustments at customers' operations in response to component supply constraints.

[China]

Production at PRESS KOGYO MINI CABIN (SUZHOU) CO., LTD. decreased year on year due to sluggish domestic demand.

PM CABIN MANUFACTURING CO., LTD. was dissolved on September 28, 2021, and is currently in liquidation.

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As a result of the above, net sales in this segment amounted to 7,865 million yen (down 11.5% year on year) and segment profit amounted to 142 million yen (down 80.4% year on year).

(2) Explanation of financial position

Total assets at the end of the first three months ended June 30, 2022 were 169,588 million yen, a decrease of 3,028 million yen from the end of the previous fiscal year. The main factor was a decrease in accounts receivable - trade.

Total liabilities were 65,419 million yen, a decrease of 3,978 million yen from the end of the previous fiscal year. The main factor was a decrease in short-term borrowings.

Net assets were 104,169 million yen, an increase of 949 million yen from the end of the previous fiscal year. The main factor was an increase in foreign currency translation adjustment.

As a result, the equity ratio was 56.4%.

(3) Explanation of consolidated financial results forecast and other forward-looking statements

Consolidated forecasts for the fiscal year ending March 31, 2023 are unchanged from the forecast announced on May 13, 2022.

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