Ohara Inc.TSE: 5218

Consolidated Financial Results for the Nine Months Ended July 31, 2024

Sep 13, 2024 at 6:34 AM UTC · Issued by Ohara Inc.

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.

Consolidated Financial Results

for the Nine Months Ended July 31, 2024

[Japanese GAAP]

Company name: OHARA INC.	September 13, 2024

Listing: Tokyo
Securities code: 5218
URL: https://www.ohara-inc.co.jp
Representative: Hirokazu Saito	President Chief Executive Officer
Inquiries: Takashi Nakajima	Director Senior Managing Executive Officer

Telephone: +81-42-772-2101

Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes

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

1. Consolidated Financial Results for the Nine Months Ended July 31, 2024 (November 1, 2023 to July 31, 2024)

(1) Consolidated Operating Results				(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	%
July 31, 2024	20,838		(2.8)	1,659	(22.1)	1,976	(14.1)	1,173	(24.5)
July 31, 2023	21,449		2.3	2,130	(4.4)	2,301	(13.7)	1,554	(1.3)

(Note) Comprehensive income:	Nine months ended July 31, 2024:
	Nine months ended July 31, 2023:

¥	2,755 million	[	110.6%]
¥	1,308 million	[	(69.2) %]

	Basic earnings	Diluted earnings per
	per share		share
Nine months ended	Yen			Yen
July 31, 2024	48.17			-
July 31, 2023	63.84			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio

As of	Millions of yen		Millions of yen	%
July 31, 2024	63,003			49,558	78.2
October 31, 2023	61,840			47,311	76.1
(Reference) Equity: As of	July 31, 2024:	¥	49,248 million
As of	October 31, 2023:	¥	47,049 million

2. Dividends

				Annual dividends

	1st	2nd			3rd	Year-end	Total
	quarter-end	quarter-end		quarter-end

	Yen		Yen		Yen	Yen	Yen
Fiscal year ended October 31, 2023	-		0.00		-	20.00	20.00
Fiscal year ending October 31, 2024	-		0.00		-
Fiscal year ending October 31, 2024						23.00	23.00
(Forecast)

(Note) Revision to the forecast for dividends	announced most	recently:	None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending October 31, 2024(November 1, 2023 to October 31, 2024) (Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share

	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	26,900		(4.3)	2,000	(10.5)	2,400	(7.8)	1,400	(10.9)	57.46
(Note) Revision to the financial results forecast announced most recently:	None
* Notes:
(1) Significant changes in the scope of consolidation during the period:	None

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

July 31, 2024:	25,450,000	shares
October 31, 2023:	25,450,000	shares
2) Number of treasury shares at the end of the period:
July 31, 2024:	1,085,568	shares
October 31, 2023:	1,085,507	shares

3) Average number of shares outstanding during the period:
Nine months ended July 31, 2024:	24,364,490	shares
Nine months ended July 31, 2023:	24,357,631	shares

Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes(voluntary)
Proper use of earnings forecasts, and other special matters

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

		(Thousands of yen)
	As of October 31, 2023	As of July 31, 2024

Assets
Current assets
Cash and deposits	14,806,248	14,386,614
Notes and accounts receivable - trade	6,718,064	7,003,326
Electronically recorded monetary claims -	1,419,460	1,749,571
operating

Merchandise and finished goods	3,282,428	3,159,685
Work in process	6,845,687	7,301,153
Raw materials and supplies	3,743,883	3,396,505
Other	807,124	453,856
Allowance for doubtful accounts	(39,674)	(22,550)
Total current assets	37,583,221	37,428,164
Non-current assets
Property, plant and equipment
Buildings and structures	14,992,654	15,164,839
Accumulated depreciation	(10,765,911)	(11,011,315)
Buildings and structures, net	4,226,742	4,153,524
Machinery, equipment and vehicles	18,712,598	18,891,342
Accumulated depreciation	(16,147,258)	(16,363,104)
Machinery, equipment and vehicles, net	2,565,340	2,528,238
Tools, furniture and fixtures	12,462,295	12,546,914
Accumulated depreciation	(3,427,140)	(3,468,855)
Tools, furniture and fixtures, net	9,035,154	9,078,058
Land	341,665	337,874
Right of use assets	443,443	478,446
Accumulated depreciation	(166,437)	(225,794)
Right of use assets, net	277,006	252,652
Construction in progress	319,630	320,926
Total property, plant and equipment	16,765,539	16,671,275
Intangible assets	284,064	231,068
Investments and other assets
Investment securities	6,554,742	7,997,196
Retirement benefit asset	386,100	446,625
Deferred tax assets	171,087	135,532
Other	119,424	93,990
Allowance for doubtful accounts	(23,760)	-
Total investments and other assets	7,207,594	8,673,344
Total non-current assets	24,257,198	25,575,687
Total assets	61,840,420	63,003,852

		(Thousands of yen)
	As of October 31, 2023	As of July 31, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade	1,223,348	1,354,115
Electronically recorded obligations - operating	839,107	718,841
Short-term borrowings	4,264,226	4,424,892
Lease liabilities	364,059	327,638
Income taxes payable	353,396	153,950
Contract liabilities	12,584	8,155
Provision for bonuses	849,917	573,602
Provision for bonuses for directors (and other	115,489	84,569
officers)

Provision for loss on litigation	21,700	-
Asset retirement obligations	989	989
Accounts payable - other	1,040,521	887,486
Other	604,264	587,794
Total current liabilities	9,689,605	9,122,036
Non-current liabilities
Long-term borrowings	1,373,363	801,252
Lease liabilities	595,016	368,963
Deferred tax liabilities	1,515,848	1,780,629
Retirement benefit liability	1,054,256	1,076,120
Provision for share awards for directors (and other	97,037	109,077
officers)

Asset retirement obligations	85,663	85,663
Other	118,274	101,767
Total non-current liabilities	4,839,460	4,323,473
Total liabilities	14,529,065	13,445,509
Net assets
Shareholders' equity
Share capital	5,855,000	5,855,000
Capital surplus	7,962,140	7,962,140
Retained earnings	27,645,972	28,330,537
Treasury shares	(1,477,050)	(1,477,135)
Total shareholders' equity	39,986,063	40,670,542
Accumulated other comprehensive income
Valuation difference on available-for-sale	1,980,984	2,720,871
securities

Foreign currency translation adjustment	5,378,166	6,072,640
Remeasurements of defined benefit plans	(295,334)	(215,208)
Total accumulated other comprehensive income	7,063,816	8,578,303
Non-controlling interests	261,475	309,496
Total net assets	47,311,354	49,558,342
Total liabilities and net assets	61,840,420	63,003,852

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

		(Thousands of yen)
	For the nine months	For the nine months
	ended July 31, 2023	ended July 31, 2024

Net sales	21,449,323	20,838,087
Cost of sales	14,438,469	14,187,761
Gross profit	7,010,854	6,650,325
Selling, general and administrative expenses	4,880,370	4,990,620
Operating profit	2,130,484	1,659,704
Non-operating income
Interest income	69,785	109,748
Dividend income	63,239	69,448
Foreign exchange gains	30,262	49,976
Share of profit of entities accounted for using equity	4,109	46,039
method

Other	96,079	109,063
Total non-operating income	263,475	384,276
Non-operating expenses
Interest expenses	27,494	31,249
Loss on retirement of non-current assets	40,511	32,648
Provision for loss on litigation	21,700	-
Other	2,712	3,399
Total non-operating expenses	92,419	67,297
Ordinary profit	2,301,540	1,976,684
Extraordinary income
Gain on sale of investment securities	73,001	-
Total extraordinary income	73,001	-
Profit before income taxes	2,374,542	1,976,684
Total income taxes	771,214	735,261
Profit	1,603,327	1,241,422
Profit attributable to non-controlling interests	48,438	67,670
Profit attributable to owners of parent	1,554,889	1,173,752

Quarterly Consolidated Statements of Comprehensive Income (For the nine months)

		(Thousands of yen)
	For the nine months	For the nine months
	ended July 31, 2023	ended July 31, 2024

Profit	1,603,327	1,241,422
Other comprehensive income
Valuation difference on available-for-sale securities	152,456	739,886
Foreign currency translation adjustment	(462,689)	523,484
Remeasurements of defined benefit plans, net of tax	60,588	80,126
Share of other comprehensive income of entities	(44,918)	170,989
accounted for using equity method

Total other comprehensive income	(294,562)	1,514,487
Comprehensive income	1,308,764	2,755,909
Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

1,260,3262,688,239

48,43867,670