Consolidated Financial Results for the Year Ended October 31, 2024

Company name: OHARA INC.

December 12, 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

(1) Consolidated Operating Results

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Fiscal year ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

October 31, 2024

27,909

(0.8)

2,177

(2.5)

2,587

(0.6)

1,568

(0.2)

October 31, 2023

28,123

(0.6)

2,233

(25.0)

2,603

(29.0)

1,572

(25.7)

Basic earnings per

Diluted earnings per

Rate of return on

Ordinary profit to

Operating profit to

share

share

equity

total assets ratio

net sales ratio

Fiscal year ended

Yen

Yen

%

%

%

October 31, 2024

64.36

-

3.2

4.1

7.8

October 31, 2023

64.54

-

3.4

4.2

7.9

Total assets

Net assets

Capital adequacy ratio

Net assets per share

As of

Millions of yen

Millions of yen

%

Yen

October 31, 2024

65,112

50,833

77.6

2,072.93

October 31, 2023

61,840

47,311

76.1

1,931.08

(Reference) Equity: As of

October 31, 2024:

¥

50,505 million

As of

October 31, 2023:

¥

47,049 million

(3) Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents at the end

operating activities

investing activities

financing activities

of period

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

October 31, 2024

2,736

(2,232)

(1,248)

13,595

October 31, 2023

1,837

(2,105)

(7)

13,934

(Thousands of yen)

As of October 31, 2023

As of October 31, 2024

Assets

Current assets

Cash and deposits

14,806,248

15,161,264

Notes and accounts receivable - trade

6,718,064

7,163,129

Electronically recorded monetary claims -

1,419,460

1,819,509

operating

Merchandise and finished goods

3,282,428

2,887,775

Work in process

6,845,687

7,856,061

Raw materials and supplies

3,743,883

3,568,974

Other

807,124

624,784

Allowance for doubtful accounts

(39,674)

(26,832)

Total current assets

37,583,221

39,054,666

Non-current assets

Property, plant and equipment

Buildings and structures

14,992,654

15,519,988

Accumulated depreciation

(10,765,911)

(11,169,249)

Buildings and structures, net

4,226,742

4,350,738

Machinery, equipment and vehicles

18,712,598

19,008,651

Accumulated depreciation

(16,147,258)

(16,518,683)

Machinery, equipment and vehicles, net

2,565,340

2,489,968

Tools, furniture and fixtures

12,462,295

12,692,181

Accumulated depreciation

(3,427,140)

(3,538,205)

Tools, furniture and fixtures, net

9,035,154

9,153,976

Land

341,665

340,077

Right-of-use assets

443,443

481,245

Accumulated depreciation

(166,437)

(210,283)

Right-of-use assets, net

277,006

270,961

Construction in progress

319,630

517,523

Total property, plant and equipment

16,765,539

17,123,245

Intangible assets

284,064

206,930

Investments and other assets

Investment securities

6,554,742

7,839,288

Retirement benefit asset

386,100

614,254

Deferred tax assets

171,087

177,848

Other

119,424

96,221

Allowance for doubtful accounts

(23,760)

-

Total investments and other assets

7,207,594

8,727,613

Total non-current assets

24,257,198

26,057,789

Total assets

61,840,420

65,112,456

(Thousands of yen)

As of October 31, 2023

As of October 31, 2024

Liabilities

Current liabilities

Notes and accounts payable - trade

1,223,348

1,385,811

Electronically recorded obligations - operating

839,107

718,290

Short-term borrowings

4,264,226

4,011,763

Lease liabilities

364,059

359,437

Income taxes payable

353,396

238,793

Contract liabilities

12,584

44,761

Provision for bonuses

849,917

940,307

Provision for bonuses for directors (and other

115,489

106,085

officers)

Provision for loss on litigation

21,700

-

Asset retirement obligations

989

-

Accounts payable - other

1,040,521

1,349,740

Other

604,264

584,246

Total current liabilities

9,689,605

9,739,237

Non-current liabilities

Long-term borrowings

1,373,363

1,156,870

Lease liabilities

595,016

328,921

Deferred tax liabilities

1,515,848

1,895,789

Retirement benefit liability

1,054,256

857,469

Provision for share awards for directors (and other

97,037

113,090

officers)

Asset retirement obligations

85,663

85,663

Other

118,274

101,767

Total non-current liabilities

4,839,460

4,539,571

Total liabilities

14,529,065

14,278,809

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

28,724,990

Treasury shares

(1,477,050)

(1,477,135)

Total shareholders' equity

39,986,063

41,064,995

Accumulated other comprehensive income

Valuation difference on available-for-sale

1,980,984

2,839,310

securities

Foreign currency translation adjustment

5,378,166

6,479,903

Remeasurements of defined benefit plans

(295,334)

121,645

Total accumulated other comprehensive income

7,063,816

9,440,859

Non-controlling interests

261,475

327,793

Total net assets

47,311,354

50,833,647

Total liabilities and net assets

61,840,420

65,112,456

(Thousands of yen)

For the fiscal year

For the fiscal year

ended October 31, 2023

ended October 31, 2024

Net sales

28,123,223

27,909,188

Cost of sales

19,174,823

19,125,422

Gross profit

8,948,400

8,783,766

Selling, general and administrative expenses

6,714,467

6,606,167

Operating profit

2,233,933

2,177,599

Non-operating income

Interest income

106,588

160,190

Dividend income

115,887

124,194

Foreign exchange gains

112,419

-

Share of profit of entities accounted for using equity

15,143

97,177

method

Other

126,630

124,007

Total non-operating income

476,669

505,569

Non-operating expenses

Interest expenses

38,846

42,587

Loss on retirement of non-current assets

43,783

36,801

Foreign exchange losses

-

11,556

Provision for loss on litigation

21,700

-

Other

2,900

4,446

Total non-operating expenses

107,229

95,391

Ordinary profit

2,603,373

2,587,777

Extraordinary income

Gain on sale of investment securities

73,001

-

Total extraordinary income

73,001

-

Profit before income taxes

2,676,375

2,587,777

Income taxes - current

1,033,077

978,111

Income taxes - deferred

8,336

(44,506)

Total income taxes

1,041,413

933,605

Profit

1,634,961

1,654,172

Profit attributable to non-controlling interests

62,921

85,967

Profit attributable to owners of parent

1,572,039

1,568,205

(Thousands of yen)

For the fiscal year

For the fiscal year

ended October 31, 2023

ended October 31, 2024

Profit

1,634,961

1,654,172

Other comprehensive income

Valuation difference on available-for-sale securities

(7,986)

858,325

Foreign currency translation adjustment

212,551

1,102,512

Remeasurements of defined benefit plans, net of tax

714,021

416,980

Share of other comprehensive income of entities

9,146

(776)

accounted for using equity method

Total other comprehensive income

927,733

2,377,042

Comprehensive income

2,562,695

4,031,214

Comprehensive income attributable to

(Thousands of yen)

Shareholders' equity

Retained

Total

Share capital

Capital surplus

Treasury shares

shareholders'

earnings

equity

Balance at beginning

5,855,000

7,962,140

26,563,833

(1,492,577)

38,888,396

of period

Changes during

period

Dividends of

(489,187)

(489,187)

surplus

Profit attributable to

1,572,039

1,572,039

owners of parent

Purchase of treasury

-

shares

Disposal of treasury

15,527

15,527

shares

Decrease (increase)

in retained earnings

(712)

(712)

due to exclusion

from consolidation

Net changes in

items other than

-

shareholders' equity

Total changes

-

-

1,082,139

15,527

1,097,666

during period

Balance at end of

5,855,000

7,962,140

27,645,972

(1,477,050)

39,986,063

period

Accumulated other comprehensive income

Valuation

Total

Non-controlling

Foreign currency

Remeasurements

accumulated

Total net assets

difference on

translation

of defined

other

interests

available-for-sale

adjustment

benefit plans

comprehensive

securities

income

Balance at beginning

1,988,971

5,156,468

(1,009,356)

6,136,083

237,610

45,262,090

of period

Changes during

period

Dividends of

-

(489,187)

surplus

Profit attributable to

-

1,572,039

owners of parent

Purchase of treasury

-

-

shares

Disposal of treasury

-

15,527

shares

Decrease (increase)

in retained earnings

-

(712)

due to exclusion

from consolidation

Net changes in

items other than

(7,986)

221,698

714,021

927,733

23,864

951,597

shareholders' equity

Total changes

(7,986)

221,698

714,021

927,733

23,864

2,049,264

during period

Balance at end of

1,980,984

5,378,166

(295,334)

7,063,816

261,475

47,311,354

period

(Thousands of yen)

Shareholders' equity

Retained

Total

Share capital

Capital surplus

Treasury shares

shareholders'

earnings

equity

Balance at beginning

5,855,000

7,962,140

27,645,972

(1,477,050)

39,986,063

of period

Changes during

period

Dividends of

(489,187)

(489,187)

surplus

Profit attributable to

1,568,205

1,568,205

owners of parent

Purchase of treasury

(84)

(84)

shares

Disposal of treasury

-

shares

Decrease (increase)

in retained earnings

-

due to exclusion

from consolidation

Net changes in

items other than

-

shareholders' equity

Total changes

-

-

1,079,017

(84)

1,078,932

during period

Balance at end of

5,855,000

7,962,140

28,724,990

(1,477,135)

41,064,995

period

Accumulated other comprehensive income

Valuation

Total

Non-controlling

Foreign currency

Remeasurements

accumulated

Total net assets

difference on

translation

of defined

other

interests

available-for-sale

adjustment

benefit plans

comprehensive

securities

income

Balance at beginning

1,980,984

5,378,166

(295,334)

7,063,816

261,475

47,311,354

of period

Changes during

period

Dividends of

-

(489,187)

surplus

Profit attributable to

-

1,568,205

owners of parent

Purchase of treasury

-

(84)

shares

Disposal of treasury

-

-

shares

Decrease (increase)

in retained earnings

-

-

due to exclusion

from consolidation

Net changes in

items other than

858,325

1,101,736

416,980

2,377,042

66,318

2,443,360

shareholders' equity

Total changes

858,325

1,101,736

416,980

2,377,042

66,318

3,522,292

during period

Balance at end of

2,839,310

6,479,903

121,645

9,440,859

327,793

50,833,647

period

(Thousands of yen)

For the fiscal year

For the fiscal year

ended October 31, 2023

ended October 31, 2024

Cash flows from operating activities

Profit before income taxes

2,676,375

2,587,777

Depreciation

1,461,126

1,491,439

Share of loss (profit) of entities accounted for using

(15,143)

(97,177)

equity method

Decrease (increase) in retirement benefit asset

(124,240)

(209,903)

Increase (decrease) in retirement benefit liability

(645,651)

(196,787)

Increase (decrease) in long-term accounts payable -

(20,220)

(15,680)

other

Increase (decrease) in provision for share awards for

(2,355)

16,053

directors (and other officers)

Increase (decrease) in provision for bonuses

(103,861)

75,001

Increase (decrease) in allowance for doubtful accounts

39,906

(37,590)

Increase (decrease) in provision for loss on litigation

21,700

(21,700)

Increase (decrease) in asset retirement obligations

1,115

(50)

Interest and dividend income

(222,475)

(284,384)

Interest expenses

38,846

42,587

Foreign exchange losses (gains)

35,723

33,351

Loss on retirement of non-current assets

43,783

36,801

Loss (gain) on sale of non-current assets

(7,885)

(25,199)

Loss (gain) on sale of investment securities

(73,001)

-

Decrease (increase) in trade receivables

732,462

(557,047)

Decrease (increase) in inventories

(1,207,316)

(143,544)

Increase (decrease) in trade payables

(276,452)

38,719

Other, net

683,180

854,683

Subtotal

3,035,615

3,587,349

Interest and dividends received

219,683

282,314

Interest paid

(39,405)

(43,717)

Proceeds from insurance income

3,914

-

Income taxes paid

(1,367,635)

(1,089,888)

Payments into deposit money

(15,000)

-

Income from return of deposit

-

15,000

Settlement paid

-

(15,000)

Net cash provided by (used in) operating activities

1,837,173

2,736,057

Cash flows from investing activities

Payments into time deposits

(1,109,364)

(2,733,003)

Proceeds from withdrawal of time deposits

582,400

2,115,496

Purchase of investment securities

(150,000)

(182,000)

Proceeds from sale of investment securities

255,147

200,000

Purchase of property, plant and equipment

(1,625,745)

(1,588,271)

Proceeds from sale of property, plant and equipment

21,619

36,773

Payments for retirement of property, plant and

(28,402)

(29,086)

equipment

Purchase of intangible assets

(47,020)

(47,110)

Payments for asset retirement obligations

(313)

(938)

Other, net

(3,627)

(4,579)

Net cash provided by (used in) investing activities

(2,105,307)

(2,232,720)