Disco CorporationTSE: 6146

Consolidated Financial Results for the Second Quarter of Fiscal Year 2024

Oct 17, 2024 at 7:26 AM UTC · Issued by Disco Corporation

Unaudited translation, provided for reference only

DISCO Corporation (FY2024 2Q)

October 17, 2024

Consolidated Financial Results for the Second Quarter of Fiscal Year 2024

Company name:	DISCO Corporation
Stock code number:	6146 (TSE Prime Market)
URL:		http://www.disco.co.jp
Notes:	1. The accompanying financial statements have been prepared in accordance with accounting
	principles and practices generally accepted in Japan.

2. Amounts are rounded down to the nearest million yen.

1. Consolidated results for FY2024 2Q (April 1, 2024, through September 30, 2024)

1) Consolidated operating results		(Millions of yen)
		Six months ended

	September 30, 2023	September 30, 2024	YoY (%)

Net sales		126,260	179,043	41.8
Operating income		45,009	75,952	68.7
Ordinary income		46,277	75,052	62.2
Net income		32,708	53,443	63.4
Net income per share (yen)		301.96	493.20	-
Comprehensive income: Six months ended September 30, 2024: 54,743 million yen, 56.9%
Six months ended September 30, 2023:	34,889 million yen, (22.2)%

2) Consolidated financial position			(Millions of yen)
				As of	As of
				March 31, 2024	September 30, 2024

Total assets				556,058	590,998
Net assets				406,560	436,527
Equity ratio (%)				72.9%	73.6%

Equity:	435,031	million yen	(as of	September 30, 2024)
	405,228	million yen	(as of	March 31, 2024)

2. Dividends

				(yen)
	Fiscal Year 2023	Fiscal Year 2024	Fiscal Year 2024
	Actual		Forecast


1Q-end dividends per share (yen)	－		－
2Q-end dividends per share (yen)	76.00		124.00
3Q-end dividends per share (yen)
－			－
Year-end dividends per share (yen)	231.00			－
Annual dividends per share (yen)	307.00			－

Note: Revision to the dividends forecasts most recently announced: Yes

*For the revised dividends forecast, refer to the "DISCO Dividend Payout for Fiscal Year 2024" announced on October 17, 2024. *The year-end dividends for fiscal year 2024 have not been determined at this point.

3. Consolidated forecasts for FY2024 3Q (April 1, 2024, through December 31, 2024)

(Millions of yen)

	Nine months ending	YoY (%)
	December 31, 2024

Net sales	262,900	29.3
Operating income	105,200	39.6
Ordinary income	104,600	38.1
Net income	74,200	52.1
Net income per share (yen)	684.72	-

Shipment figures	297,900	32.7

Note: Revision to the financial forecasts most recently announced: Yes

*For the revised consolidated forecasts, refer to the "Business Forecast Notification" announced on October 17, 2024.

Unaudited translation, provided for reference only

DISCO Corporation (FY2024 2Q)

4. Other

Important changes in subsidiaries: None
Changes in principles, procedures, or display of accounting method concerning consolidated statement policies
1. Changes in accounting policies along with changes in accounting standards: None
2. Other changes: None
Number of shares outstanding (common stock)

(1) Number of shares issued (including treasury stocks)

	As of September 30, 2024:	108,381,183	shares
	As of March 31, 2024:	108,364,683	shares
(2)	Number of shares of treasury stock
	As of September 30, 2024:	15,922	shares
	As of March 31, 2024:	15,837	shares
(3)	Average number of shares
	As of September 30, 2024:	108,360,050	shares
	As of September 30, 2023:	108,320,891	shares

Explanation regarding appropriate use of earnings forecast:

The performance forecasts and estimates provided in this Financial Review are based on certain assumptions judged to be reasonable at the present time in light of information currently available. Consequently, actual operating results may differ substantially from the projections in the Financial Review.

Reference: non-consolidated forecasts for FY2024 3Q (April 1, 2024, through December 31, 2024)

(Millions of yen)

	Nine months ending	YoY (%)
	December 31, 2024

Net sales	222,500	31.1
Operating income	90,800	42.3
Ordinary income	100,600	24.4
Net income	73,700	32.0
Net income per share (yen)	680.11	-

Note: Revision to the financial forecasts most recently announced: Yes

*For the revised non-consolidated forecasts, refer to the "Business Forecast Notification" announced on October 17, 2024.

Unaudited translation, provided for reference only		DISCO Corporation (FY2024 2Q)
5. Consolidated quarterly balance sheets
		(Millions of yen)
	As of March 31,	As of September
	2024	30, 2024
Assets
Current assets
Cash and deposits	215,486	243,571
Notes and accounts receivable - trade, and	46,807	40,586
contract assets

Merchandise and finished goods	28,858	34,023
Work in process	35,365	42,761
Raw materials and supplies	50,768	53,493
Other	9,776	6,504
Allowance for doubtful accounts	(116)	(128)
Total current assets	386,945	420,812
Non-current assets
Property, plant and equipment
Buildings and structures, net	89,000	88,416
Other, net	58,451	61,206
Total property, plant and equipment	147,451	149,623
Intangible assets	261	253
Investments and other assets	21,399	20,308
Total non-current assets	169,112	170,185
Total assets	556,058	590,998
Liabilities
Current liabilities
Notes and accounts payable - trade	7,748	7,857
Electronically recorded obligations - operating	28,481	26,609
Income taxes payable	19,463	19,028
Contract liabilities	48,467	64,091
Provision for bonuses	31,055	21,338
Other provisions	1,621	2,369
Other	11,877	12,412
Total current liabilities	148,715	153,706
Non-current liabilities	781	763
Total liabilities	149,497	154,470
Net assets
Shareholders' equity
Share capital	21,838	21,932
Capital surplus	23,826	23,920
Retained earnings	346,293	374,708
Treasury shares	(41)	(44)
Total shareholders' equity	391,917	420,517
Accumulated other comprehensive income
Valuation difference on available-for-sale	365	827
Foreign currency translation adjustment	12,936	13,684
Remeasurements of defined benefit plans	8	2
Total accumulated other comprehensive income	13,310	14,514
Share acquisition rights	1,136	1,204
Non-controlling interests	195	291
Total net assets	406,560	436,527
Total liabilities and net assets	556,058	590,998

Unaudited translation, provided for reference only		DISCO Corporation (FY2024 2Q)
6. Consolidated quarterly statement of (comprehensive) income
		(Millions of yen)
	Six months	Six months
	30-Sep-23	30-Sep-24
Net sales	126,260	179,043
Cost of sales	41,597	52,314
Gross profit	84,662	126,728
Selling, general and administrative expenses	39,652	50,776
Operating profit	45,009	75,952
Non-operating income
Interest income	50	28
Share of profit of entities accounted for using equity	67	183
Foreign exchange gains	601	-
Rental income	107	121
Subsidy income	320	332
Other	142	144
Total non-operating income	1,290	810
Non-operating expenses
Foreign exchange losses	-	1,677
Depreciation	18	20
Other	4	11
Total non-operating expenses	22	1,710
Ordinary profit	46,277	75,052
Extraordinary income
Gain on sale of non-current assets	8	1
Total extraordinary income	8	1
Extraordinary losses
Loss on sale and retirement of non-current assets	24	21
Extra retirement payments	15	11
Demolition expenses	-	245
Total extraordinary losses	39	278
Profit before income taxes	46,246	74,775
Income taxes - current	11,703	19,416
Income taxes - deferred	1,850	1,810
Total income taxes	13,554	21,227
Profit	32,692	53,548
Profit attributable to
Profit attributable to owners of parent	32,708	53,443
Profit (loss) attributable to non-controlling interests	(16)	104
Other comprehensive income
Foreign currency translation adjustment	1,918	577
Remeasurements of defined benefit plans, net of tax	13	(6)
Share of other comprehensive income of entities	264	623
accounted for using equity method

Total other comprehensive income	2,196	1,195
Comprehensive income	34,889	54,743
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	34,889	54,646
Comprehensive income attributable to non-controlling	(0)	96
interests

Unaudited translation, provided for reference only	DISCO Corporation (FY2024 2Q)
7. Consolidated statement of cash flow
		(Millions of yen)
	Six months	Six months
	30-Sep-23	30-Sep-24
Cash flows from operating activities
Profit before income taxes	46,246	74,775
Depreciation	5,201	5,680
Demolition expenses	-	245
Share of loss (profit) of entities accounted for using	(67)	(183)
equity method

Increase (decrease) in allowance for doubtful	(8)	16
Increase (decrease) in provision for bonuses	(10,527)	(9,477)
Loss (gain) on sale and retirement of property, plant	15	20
and equipment

Subsidy income	(320)	(332)
Interest and dividend income	(50)	(28)
Decrease (increase) in trade receivables	5,214	5,105
Decrease (increase) in inventories	(13447)	(16721)
Increase (decrease) in trade payables	4,843	(537)
Increase (decrease) in contract liabilities	15,185	17,346
Other, net	4,600	4,337
Subtotal	56,886	80,247
Subsidies received	320	532
Interest and dividends received	52	32
Income taxes refund (paid)	(15,750)	(19,864)
Net cash provided by (used in) operating activities	41,509	60,948
Cash flows from investing activities
Purchase of property, plant and equipment	(7,487)	(7,121)
Proceeds from sale of property, plant and equipment	15	5
Payments for demolition of non-current assets	-	(31)
Purchase of intangible assets	(29)	(36)
Long-term loan advances	(103)	(1)
Proceeds from collection of long-term loans receivable	18	19
Other, net	(42)	51
Net cash provided by (used in) investing activities	(7,627)	(7,114)
Cash flows from financing activities
Proceeds from issuance of shares	199	65
Purchase of treasury shares	(8)	(3)
Dividends paid	(22,881)	(24,996)
Dividends paid to non-controlling interests	(74)	-
Net cash provided by (used in) financing activities	(22,764)	(24,934)
Effect of exchange rate change on cash and cash	1,676	(815)
Net increase (decrease) in cash and cash equivalents	12,794	28,084
Cash and cash equivalents at beginning of period	163,053	215,486
Cash and cash equivalents at end of period	175,847	243,571