ジェイテックコーポレーション（3446） – [Delayed]Consolidated Financial Results for the Nine Months Ended March 31, 2022(Japanese GAAP)

Consolidated Financial Results for the Nine Months Ended March 31, 2022 [Japanese GAAP] May 13, 2022JTEC Corporation 3446 https://www.j-tec.co.jp/english/ Takashi Tsumura, President Yasuhito Hirai, Director and General Manager of Management Department +81-72-655-2785 Company name: Stock exchange listing: Tokyo Stock Exchange Code number: URL: Representative: Contact: Phone: Scheduled filing date for quarterly securities report: Scheduled date for commencement of dividend payments: Availability of supplementary briefing materials on quarterly financial results: Financial results briefing session: May 13, 2022 None Not available None 1. Consolidated Financial Results for the Nine Months Ended March 31, 2022 (July 1, 2021 to March 31, 2022) (1) Consolidated Operating Results (cumulative) (Percentages indicate rates of year-on-year change) (Amounts of less than one million yen are rounded down.) 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 March 31, 2022 March 31, 2021 705 — — — (166) — — — (126) — — — (95) — % — — (Note) Comprehensive income: For the nine months ended March 31, 2022: ¥(95) million [—%] For the nine months ended March 31, 2021: ¥— million [—%] Basic earnings per share Diluted earnings per share Nine months ended March 31, 2022 Yen (16.38) Yen — March 31, 2021 (Note) The Company began preparing consolidated financial statements from the end of the consolidated fiscal year ended June 30, 2021. Therefore, there are no year-on-year change figures for the nine months ended March 31, 2022, nor figures or year-on-year changes for the nine months ended March 31, 2021. — — (2) Consolidated Financial Position Total assets Net assets Equity ratio As of March 31, 2022 As of June 30, 2021 Millions of yen Millions of yen 3,449 3,382 2,163 2,257 % 62.7 66.8 (Reference) Shareholders’ equity: As of March 31, 2022: ¥2,163 million As of June 30, 2021: ¥2,257 million 2. Dividends Annual dividends 1st quarter-end Yen 2nd quarter-end Yen 3rd quarter-end Yen Year-end Total Yen 0.00 0.00 Yen 0.00 0.00 Fiscal year ended June 30, 2021 Fiscal year ending June 30, 2022 Fiscal year ending June 30, 2022 (Forecast) — — 0.00 0.00 — — (Note) Changes in dividend forecast from the most recent announcement: None 3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 to June 30, 2022) Net sales Operating profit Ordinary profit (Percentages indicate rates of year-on-year change) Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Full year 1,700 — 194 — 232 — 150 — Yen 25.76 (Note) Changes in financial results forecast from the most recent announcement: None Notes: (1) Changes in specific subsidiaries during the period (changes in specified subsidiaries resulting in a change in the scope of consolidation): None Newly included: None Excluded: None (2) Application of special accounting treatment in preparing the quarterly financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (4) Total number of issued shares (common stock) 1) Total number of issued shares at the end of the period (including treasury shares): 2) Total number of treasury shares at the end of the period: March 31, 2022: 5,864,000 shares June 30, 2021: 5,855,000 shares March 31, 2022: 148 shares June 30, 2021: 99 shares 3) Average number of shares outstanding during the period Nine months ended March 31, 2022: 5,859,020 shares Nine months ended March 31, 2021: 5,854,901 shares * The quarterly financial statements are outside the scope of quarterly reviews by certified public accountants and auditing * Explanation of the proper use of financial results forecast and other notes The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and certain assumptions deemed reasonable by the Company, and are not intended to be construed as assurance that they will be accomplished in the future. Actual results may differ significantly from the forecasts due to a wide range of factors. Please see page three of the attached materials, “1. Qualitative Information on Quarterly Financial Results (3) Explanation of Financial Results Forecast and Other Forward-Looking Information” for more information regarding assumptions made when formulating earnings projections and matters to note when using these projections. firms. Contents of Attached Materials 1. Qualitative Information on Quarterly Financial Results ………………………………………………………………………………………… 2 (1) Explanation of Business Results …………………………………………………………………………………………………………………….. 2 (2) Explanation of Financial Condition ………………………………………………………………………………………………………………….. 3 (3) Explanation of Financial Results Forecast and Other Forward-Looking Information ……………………………………………….. 3 2. Quarterly Consolidated Financial Statements and Primary Notes …………………………………………………………………………. 4 (1) Consolidated Balance Sheet ………………………………………………………………………………………………………………………….. 4 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income …………………………………… 5 Consolidated Statement of Income …………………………………………………………………………………………………………………… 5 Consolidated Statement of Comprehensive Income ……………………………………………………………………………………………. 6 (3) Notes to the Financial Statements …………………………………………………………………………………………………………………… 7 (Notes on going concern assumption) ……………………………………………………………………………………………………………….. 7 (Notes in the event of significant changes in shareholders’ equity) ………………………………………………………………………… 7 (Changes in accounting policies) ………………………………………………………………………………………………………………………. 7 (Additional information)……………………………………………………………………………………………………………………………………. 7 (Segment information) …………………………………………………………………………………………………………………………………….. 7 1 1. Qualitative Information on Quarterly Financial Results All matters relating to the future in the sections below reflect the current views of the Group as of March 31, 2022. We began preparing consolidated financial statements from the end of the consolidated fiscal year ended June 30, 2021. Accordingly, we have not performed a comparative analysis with the previous fiscal year. (1) Explanation of Business Results In the nine months ended March 31, 2022, the Japanese economy saw sluggishness in company activities and personal spending due to the renewed spread of infections in many regions, resulting from the Omicron variant of COVID-19. The global outlook has become even more uncertain, for example due to restrictions on production activities resulting from semiconductor shortages, soaring commodity prices resulting from the conflict in Ukraine, rapid fluctuations in exchange rates, and inflation concerns. Under these economic circumstances, the Company strove to strengthen and expand the management foundation through two businesses that use proprietary technology, namely the Optical segment and the LS & Equipment Development segment. The results of ESCO, Ltd. are included in the Other business category. As a result, during the nine months ended March 31, 2022, we recorded net sales of ¥705,839 thousand, an operating loss of ¥166,385 thousand, an ordinary loss of ¥126,055 thousand, and a loss attributable to owners of parent of ¥95,949 thousand. Results by segment were as follows. (Optical segment) In the nine months ended March 31, 2022, the segment saw expanded sales on products for synchrotron radiation facilities in Japan (e.g., SPring-8, SLiT-J, and SAGA), as well as for Advanced Photon Source (APS) in the United States and the Institute of High Energy Physics (IHEP) in China. In typical years, the Company books substantial sales for facilities in Japan at the end of the third quarter, and similar results were achieved during the current fiscal year. Again in typical years, the largest volume of sales is booked in the fourth quarter, and the Company plans to book substantial sales this fiscal year as well, mainly overseas. The impact of the Covid-19 pandemic differs from one country to the next; for example, the impact of “zero-COVID” policies on the economy in Shanghai and other parts of China is still unclear. Nevertheless, the impact of COVID-19 on facilities worldwide is gradually declining, as they are in the process of returning to normal activities. In terms of manufacturing, there were delays in the manufacturing of mirrors that were scheduled to be delivered in the second quarter of the current fiscal year, resulting in sales being booked later than forecasted, but these products were delivered and inspected during the third quarter, and the delay in the booking of sales has been resolved. In terms of sales, we received large orders from facilities in the United States, China, and Japan as announced on several occasions from the end of the previous fiscal year in our press releases, and we have continued to receive orders since then as well. In Japan, we have received an increasing number of orders from the SLiT-J synchrotron radiation facility in the Tohoku region (scheduled for completion in 2023). In China, although travel restrictions continue, orders from IHEP, a fourth-generation synchrotron radiation facility under construction in Beijing (the largest of its kind in the world), the X-ray free electron laser facility under construction in Shanghai, and other facilities have increased. Furthermore, orders from facilities in European countries have grown as they execute plans to upgrade to fourth-generation facilities, and we were able to restart face-to-face sales activities recently, through travel to several European countries. We will continue to seek out new demand through detailed sales activities moving forward. In addition, we are investigating applications for JTEC’s proprietary technologies in areas other than X-ray mirrors. Specifically, we are planning applications in aerospace and next-generation semiconductor related fields As a result, sales in the Optical segment during the period under review were ¥489,257 thousand and segment heading into 2030. profit was ¥115,218 thousand. (LS & Equipment Development segment) In the nine months ended March 31, 2022, the segment’s earnings were driven by sales in the equipment development business, including URD manufacturing automation systems and the evaluation of vacuum ducts for 2 kicker magnets. As for quartz crystal unit wafer machining systems, following the delivery of the first unit, we continue to explore sales channels for customers in Japan and overseas. As a result, sales in the LS & Equipment Development segment during the period under review were ¥150,689 thousand and the segment loss was ¥40,095 thousand. (Other segment) (TDS) equipment. loss was ¥15,162 thousand. The Other segment shows results from subsidiary ESCO, Ltd., and during the period under review, mainly recorded sales associated with contracted measurements and services related to thermal desorption spectrometry As a result, sales in the Other segment during the period under review were ¥65,892 thousand and the segment In the consolidated fiscal year ended June 30, 2021, the Company acquired shares in ESCO, Ltd., which was included in the scope of consolidation. As the deemed acquisition date was June 30, 2021 and the difference between the closing date of the subsidiary and the consolidated reporting date is within three months, the consolidated financial results for the nine months ended March 31, 2022 reflects performance of the acquired company during the six months from July 2021 to December 2021. (2) Explanation of Financial Condition (Assets) As of March 31, 2022, current assets amounted to ¥1,521,787 thousand, up ¥49,747 thousand from their level on June 30, 2021. This change was primarily due to a ¥129,789 thousand increase in work in process, offsetting a ¥90,884 thousand decline in accounts receivable–trade. Non-current assets came to ¥1,927,758 thousand, up ¥17,756 thousand compared to June 30, 2021. This was mainly because deferred tax assets increased ¥33,489 thousand, while buildings and structures declined by ¥24,621 thousand and goodwill declined by ¥21,191 thousand. As a result, total assets were ¥3,449,546 thousand, up ¥67,503 thousand from their level on June 30, 2021. Current liabilities came to ¥654,061 thousand, up ¥218,129 thousand from their level on June 30, 2021. This change was primarily because current liabilities (other) increased ¥157,438 thousand and accounts payable–trade rose ¥40,671 thousand due in part to growth in advances received following an increase in new orders. Non-current liabilities were ¥631,589 thousand, down ¥56,548 thousand compared to June 30, 2021. This was due to a ¥56,592 thousand decrease in long-term borrowings, as scheduled repayments continued. As a result, total liabilities were ¥1,285,651 thousand, up ¥161,580 thousand from their level on June 30, (Liabilities) 2021. (Net assets) Total net assets amounted to ¥2,163,895 thousand, down ¥94,076 thousand from their level on June 30, 2021. This was primarily due to the booking of a loss of ¥95,949 thousand. (3) Explanation of Financial Results Forecast and Other Forward-Looking Information The Company has made no changes to the forecast for the fiscal year ending June 30, 2022 that it announced in the “Consolidated Financial Results for the Six Months Ended December 31, 2021” released on February 14, 2022. 3 2. Quarterly Consolidated Financial Statements and Primary Notes (1) Consolidated Balance Sheet (Thousands of yen)As of June 30, 2021 As of March 31, 2022 Assets Current assets Cash and deposits Electronically recorded monetary claims–operating Accounts receivable–trade Merchandise and finished goods Work in process Raw materials and supplies Other Total current assets Non-current assets Property, plant and equipment Buildings and structures (net) Machinery, equipment and vehicles (net) Land Construction in progress Other (net) Total property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Deferred tax assets Other Total investments and other assets Total non-current assets Total assets Liabilities Current liabilities Accounts payable–trade Short-term borrowings Current portion of long-term borrowings Income taxes payable Provision for bonuses Other Total current liabilities Non-current liabilities Long-term borrowings Provision for retirement benefits for directors (and other officers) Retirement benefit liability Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Total net assets Total liabilities and net assets 4 – 847,701 410,865 33,659 80,386 33,014 66,413 1,472,040 794,144 200,272 318,979 12,475 11,099 1,336,971 423,829 15,186 439,016 119,524 14,489 134,014 1,910,001 3,382,042 18,559 200,000 75,456 764 15,457 125,694 435,932 672,875 3,018 2,192 10,052 688,138 1,124,070 821,241 781,241 655,854 (365) 2,257,971 2,257,971 3,382,042 843,963 9,909 319,980 39,127 210,175 36,159 62,472 1,521,787 769,522 212,815 318,979 14,942 10,643 1,326,902 402,638 12,280 414,918 153,013 32,923 185,937 1,927,758 3,449,546 59,230 200,000 75,456 7,536 28,704 283,133 654,061 616,283 3,731 2,057 9,517 631,589 1,285,651 822,246 782,246 559,905 (502) 2,163,895 2,163,895 3,449,546 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income (Thousands of yen)For the nine months ended March 31, 2022 Consolidated Statement of Income Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit (loss) Non-operating income Interest income Subsidy income Other Total non-operating income Non-operating expenses Interest expenses Foreign exchange losses Other Total non-operating expenses Ordinary profit (loss) Extraordinary losses Loss on sale and retirement of non-current assets Loss on sale of investment securities Impairment losses Total extraordinary losses Profit (loss) before income taxes Income taxes–current Income taxes–deferred Total income taxes Profit (loss) Profit attributable to non-controlling interests Profit (loss) attributable to owners of parent 705,839 291,362 414,477 580,862 (166,385) 5 43,666 227 43,899 2,993 555 19 3,569 (126,055) 442 20 578 1,041 (127,096) 2,318 (33,465) (31,147) (95,949) – (95,949) 5 Consolidated Statement of Comprehensive Income Profit (loss) Comprehensive income (Breakdown) Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests (Thousands of yen)For the nine months ended March 31, 2022 (95,949) (95,949) (95,949) – 6 (3) Notes to the Financial Statements (Notes on going concern assumption) There is no relevant information. (Notes in the event of significant changes in shareholders’ equity) There is no relevant information. (Changes in accounting policies) (Application of Accounting Standard for Revenue Recognition, etc.) The Company began applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020; hereinafter the “Revenue Recognition Standard”) and related implementation guidance at the beginning of the first quarter of the current fiscal year. Accordingly, the Company recognizes the amount expected to be received in exchange for promised goods or services as revenue when control over such goods and services is transferred to the customer. The Company applies the Revenue Recognition Standard in accordance with the transitional treatment set forth in the proviso in Paragraph 84 of the Revenue Recognition Standard. However, there has been no cumulative effect on retained earnings of retroactively applying the new accounting policy prior to the beginning of the first quarter of the current fiscal year. The changes stated above produce no impact on the quarterly consolidated financial statements. (Application of Accounting Standard for Fair Value Measurement, etc.) The Company began applying the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30; July 4, 2019; hereinafter the “Fair Value Measurement Standard”) and related implementation guidance at the beginning of the first quarter of the current fiscal year. In accordance with the transitional treatment set forth in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10; July 4, 2019), the Company will apply the new accounting policy prescribed in the Fair Value Measurement Standard prospectively. There is no impact on the quarterly consolidated financial statements. (Additional information) There have been no significant changes to the assumptions underlying accounting estimates in relation to the COVID-19 pandemic, which were described in the “Significant accounting estimates” in the Annual Securities Report for the fiscal year ended June 30, 2021. (Segment information) Nine months ended March 31, 2022 (July 1, 2021 to March 31, 2022) 1. Information on sales and profit by reportable segment (Thousands of yen) Reportable segment Optical Total LS & Equipment Development Other (Note 1) Total Adjustments (Note 2) Net sales Sales to external customers 489,257 150,689 639,946 65,892 705,839 Total 489,257 150,689 639,946 65,892 705,839 Segment profit (loss) 115,218 (40,095) 75,122 (15,162) 59,960 (226,345) (166,385) Amount stated in the consolidated statement of income (Note 3) — — 705,839 705,839 Notes 1. “Other” refers to businesses not included in reportable segments and includes the results of ESCO, Ltd. 2. “Adjustments” are company-wide expenses, mainly comprising general and administrative expenses, and research and development expenses not attributable to reportable segments. 3. Segment profit (loss) is adjusted to operating profit (loss) in the consolidated statement of income. 7 2. Information on impairment losses on non-current assets and goodwill (Significant impairment losses on non-current assets) The Company recorded an impairment loss of ¥578 thousand due to a decline in profitability in the LS & Equipment Development segment. 8