Teikoku Electric Mfg : Summary of Consolidated Financial Results for the Third Quarter of the Year Ended March 31, 2023

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 Nine Months Ended December 31, 2022 (Based on Japanese GAAP)

				February 10, 2023
Company name:	TEIKOKU ELECTRIC MFG.CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	6333	URL https://www.teikokudenki.co.jp/
Representative:	President & CEO	Yoshihiro Koroyasu
Inquiries:	Director, Managing Executive Officer,	Kiyoshi Murata	TEL [phone]
Chief of Administration H.Q.
Scheduled date to file Quarterly Securities Report:	February 13, 2023
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 nine months ended December 31, 2022 (from April 1, 2022 to December 31, 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	%
Nine months ended December 31, 2022	20,618	29.5	3,767	107.9	4,144	96.3	2,871	104.5
Nine months ended December 31, 2021	15,925	10.1	1,812	7.0	2,111	16.2	1,404	(23.1)

	Earnings per share	Diluted earnings per share
		Yen			Yen
Nine months ended December 31, 2022		153.24			-
Nine months ended December 31, 2021		72.76			-
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio
	Millions of yen		Millions of yen		%
As of December 31, 2022	41,572			31,580		75.1
As of March 31, 2022	39,001			30,291		77.0
2. Cash dividends
				Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end
	Yen			Yen		Yen	Yen
Year ended March 31, 2022	-			18.00		-	32.00
Year ending March 31, 2023	-			58.00		-
Year ending March 31, 2023 (Forecast)							58.00

Total

Yen 50.00

116.00

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
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	26,730	20.2	4,480	79.6	5,050	71.0	3,520	77.1	191.95

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4. Notes

1. Changes in significant subsidiaries during the nine months ended December 31, 2022 (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

Yes

(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 December 31, 2022	19,540,038	shares	As of March 31, 2022	20,440,038	shares
Number of treasury shares at the end of the period
	As of December 31, 2022	1,259,553	shares	As of March 31, 2022	1,435,876	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended December 31, 2022	18,738,991	shares	Nine months ended December 31, 2021	19,299,583	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Thousands of yen)
	As of March 31, 2022	As of December 31, 2022
Assets
Current assets
Cash and deposits	14,441,811	14,267,876
Notes and accounts receivable - trade, and contract assets	6,604,424	8,077,457
Electronically recorded monetary claims - operating	1,278,989	1,719,256
Finished goods	1,805,280	2,397,566
Work in process	1,846,682	2,171,719
Raw materials and supplies	1,558,859	2,075,413
Other	1,177,334	840,747
Allowance for doubtful accounts	(613,722)	(724,832)
Total current assets	28,099,659	30,825,204
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,622,790	4,490,581
Other, net	4,067,090	4,119,188
Total property, plant and equipment	8,689,880	8,609,769
Intangible assets
Other	181,692	138,181
intangible assets	181,692	138,181
Investments and other assets	2,029,891	1,999,124
Total non-current assets	10,901,464	10,747,075
Total assets	39,001,124	41,572,279
Liabilities
Current liabilities
Notes and accounts payable - trade	2,110,839	2,353,096
Electronically recorded obligations - operating	635,722	703,587
Short-term borrowings	340,000	380,000
Income taxes payable	497,494	774,539
Provision for product warranties	35,911	50,889
Provision for bonuses	520,341	263,518
Other	3,227,848	3,798,990
Total current liabilities	7,368,157	8,324,623
Non-current liabilities
Long-term borrowings	79,380	78,400
Retirement benefit liability	533,544	547,968
Other	728,974	1,040,822
Total non-current liabilities	1,341,899	1,667,190
Total liabilities	8,710,057	9,991,814

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		(Thousands of yen)
	As of March 31, 2022	As of December 31, 2022
Net assets
Shareholders' equity
Share capital	3,143,675	3,143,675
Capital surplus	3,331,904	2,931,466
Retained earnings	23,882,434	24,159,760
Treasury shares	(1,864,953)	(2,034,704)
Total shareholders' equity	28,493,060	28,200,197
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	419,567	398,877
Foreign currency translation adjustment	1,110,077	2,619,615
Remeasurements of defined benefit plans	(3,691)	(1,916)
Total accumulated other comprehensive income	1,525,953	3,016,575
Non-controlling interests	272,053	363,691
Total net assets	30,291,067	31,580,465
Total liabilities and net assets	39,001,124	41,572,279

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

Consolidated statements of income (cumulative)

		(Thousands of yen)
	Nine months ended	Nine months ended
	December 31, 2021	December 31, 2022
Net sales	15,925,482	20,618,964
Cost of sales	9,483,442	11,792,206
Gross profit	6,442,039	8,826,757
Selling, general and administrative expenses	4,629,649	5,059,617
Operating profit	1,812,389	3,767,140
Non-operating income
Interest income	43,664	79,695
Dividend income	30,143	32,875
Rental income	24,850	23,592
Foreign exchange gains	63,992	187,788
Other	161,548	88,990
Total non-operating income	324,200	412,942
Non-operating expenses
Interest expenses	12,233	24,523
Other	13,273	11,389
Total non-operating expenses	25,507	35,912
Ordinary profit	2,111,082	4,144,170
Extraordinary income
Gain on sale of investment securities	-	25,552
Total extraordinary income	-	25,552
Extraordinary losses
Loss on sale of non-current assets	13,399	-
Loss on valuation of investment securities	-	2,141
Total extraordinary losses	13,399	2,141
Profit before income taxes	2,097,683	4,167,582
Income taxes	649,198	1,194,468
Profit	1,448,485	2,973,113
Profit attributable to non-controlling interests	44,235	101,528
Profit attributable to owners of parent	1,404,250	2,871,585

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