Summary: Consolidated Financial Results for FY3/23 3Q

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

February 8, 2023

Consolidated Financial Results

for the Nine Months Ended December 31, 2022

(Under Japanese GAAP)

Company name:	Yonex Co., Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	7906
URL:	https:// www.yonex.co.jp
Representative:	President and Representative Director	Alyssa Yoneyama
Inquiries:	Executive Managing Director	Shuichi Yoneyama
Telephone:	03-3839-7112

Scheduled date to file quarterly securities report:	February 10, 2023
Scheduled date to commence dividend payments:	－
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	No

(Yen amounts are rounded down to millions, unless otherwise noted.)

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
	Nine months ended	Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen	%
	December 31, 2022	79,632		47.5	9,317		55.9	9,152	47.1	6,703	31.9
	December 31, 2021	53,975		51.1	5,978		－	6,223	832.0	5,081	－
		Basic earnings	Diluted earnings
		per share		per share
	Nine months ended			Yen			Yen
	December 31, 2022			76.83			－
	December 31, 2021			58.08			－
(2) Consolidated financial position
		Total assets		Net assets		Equity-to-asset ratio
	As of	Millions of yen	Millions of yen		%
	December 31, 2022			80,632			53,764		66.5
	March 31, 2022			66,299			45,729		68.8

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end		Third quarter-end	Fiscal year-end	Total
	Yen	Yen		Yen	Yen	Yen
Fiscal year ended	－	5.00		－	5.00	10.00
March 31, 2022
Fiscal year ending	－	6.00		－
March 31, 2023
Fiscal year ending					5.00	11.00
March 31, 2023 (Forecast)

Note: Revision to the forecast of cash dividends most recently announced: None

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	106,000	42.3	10,000	48.4	9,800	35.2	7,200	24.6	82.62

Note: Revisions to the forecast of consolidated financial results most recently announced: Yes

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of December 31, 2022

As of March 31, 2022

93,620,800 shares

93,620,800 shares

(ii) Number of treasury shares at the end of the period

As of December 31, 2022

As of March 31, 2022

6,469,652 shares

6,371,157 shares

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

Nine months ended December 31, 2022

Nine months ended December 31, 2021

87,259,052 shares

87,493,867 shares

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of December 31, 2022
Assets
Current assets
Cash and deposits	17,922	21,131
Notes and accounts receivable - trade	12,676	15,533
Merchandise and finished goods	8,336	12,744
Work in process	1,798	2,006
Raw materials and supplies	1,657	1,984
Other	2,478	2,611
Allowance for doubtful accounts	(29)	(50)
Total current assets	44,841	55,961
Non-current assets
Property, plant and equipment
Buildings, net	5,179	5,201
Land	8,882	8,924
Other, net	3,228	5,572
Total property, plant and equipment	17,290	19,698
Intangible assets
Software	259	208
Software in progress	977	1,767
Goodwill	102	58
Other	15	15
Total intangible assets	1,355	2,050
Investments and other assets
Investment securities	208	202
Long-term time deposits	400	400
Deferred tax assets	1,736	1,795
Other	467	524
Allowance for doubtful accounts	(0)	(0)
Total investments and other assets	2,811	2,921
Total non-current assets	21,457	24,670
Total assets		66,299	80,632

								(Millions of yen)
							As of March 31, 2022	As of December 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade			4,790	7,181
Accounts payable - other				2,910	3,002
Current portion of long-term borrowings			535	705
Income taxes payable					966	1,388
Accrued consumption taxes				40	1
Provision for bonuses					998	782
Provision	for	bonuses for	directors (and	63	22
other officers)
Provision for point card certificates			3	4
Other							3,341	4,457
Total current liabilities				13,649	17,545
Non-current liabilities
Long-term borrowings				1,421	2,549
Retirement benefit liability				2,811	2,765
Provision	for	retirement	benefits	for	261	203
directors (and other officers)
Provision for share awards				111	101
Long-term guarantee deposits			1,970	2,075
Other							343	1,626
Total non-current liabilities				6,919	9,322
Total liabilities						20,569	26,867
Net assets
Shareholders' equity
Share capital						4,706	4,706
Capital surplus						7,708	7,751
Retained earnings					34,216	39,958
Treasury shares					(1,544)	(1,739)
Total shareholders' equity				45,086	50,677
Accumulated other comprehensive income
Valuation	difference	on available-for-sale	18	14
securities
Foreign currency translation adjustment			629	3,011
Remeasurements of defined benefit plans			(126)	(107)
Total accumulated	other	comprehensive	521	2,919
income
Non-controlling interests					122	167
Total net assets						45,729	53,764
Total liabilities and net assets				66,299	80,632

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Nine months ended	Nine months ended
		December 31, 2021	December 31, 2022
Net sales	53,975	79,632
Cost of sales	29,779	44,936
Gross profit	24,196	34,696
Selling, general and administrative expenses	18,218	25,378
Operating profit	5,978	9,317
Non-operating income
Interest income	35	72
Rental income	11	9
Subsidy income	36	2
Foreign exchange gains	128	－
Other	57	81
Total non-operating income	268	166
Non-operating expenses
Interest expenses	19	38
Foreign exchange losses	－	288
Other	3	3
Total non-operating expenses	22	330
Ordinary profit	6,223	9,152
Extraordinary income
Gain on sale of investment securities	1	－
Gain on bargain purchase	343	－
National subsidies	170	329
Total extraordinary income	515	329
Profit before income taxes	6,739	9,482
Income taxes - current	1,489	2,746
Income taxes - deferred	168	1
Total income taxes	1,657	2,748
Profit	5,081	6,734
Profit attributable to non-controlling interests	－	30
Profit attributable to owners of parent		5,081	6,703