Summary of Consolidated Financial Results for the Fiscal Year Ended August 31, 2023 (Based on Japanese GAAP)

October 12, 2023

Company name:

MANI, INC.

Stock exchange listing:

Tokyo

Stock code:

7730

URLhttps://www.mani.co.jp

Representative:

Director, President & Representative Executive Officer

Masahiko Saito

Inquiries:

Director, Executive Vice President & Executive Officer

Kazuo Takahashi

TEL 028-667-1811

Scheduled date of annual general meeting of shareholders:

November 20, 2023

Scheduled date to submit Securities Report:

November 22, 2023

Scheduled date to commence dividend payments:

November 6, 2023

Preparation of supplementary material on quarterly financial results:

Yes

Scheduled to release on October 16, 2023

Holding of quarterly financial results meeting:

Yes

(For analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the fiscal year ended August 31, 2023 (from September 1, 2022 to August 31, 2023)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes)

Net Sales

Operating income

Ordinary income

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Year ended August 31, 2023

24,488

19.9

7,243

17.5

7,995

6.0

5,953

12.5

Year ended August 31, 2022

20,416

18.8

6,163

15.2

7,544

32.8

5,290

23.3

Note:

Comprehensive income:

For the fiscal year ended August 31, 2023

¥7,408 million

[(13.6%)]

For the fiscal year ended August 31, 2022

¥8,574 million

[78.6%]

Earnings per share

Diluted earnings per

Return on equity

Return on assets

Operating margin

share

Year ended August 31,

Yen

Yen

%

%

%

60.46

-

12.5

15.2

29.6

2023

Year ended August 31,

53.75

-

12.5

16.3

30.2

2022

Reference: Share of profit

(loss) of entities accounted for using equity method

As of August 31, 2023

¥

-

million

As of August 31, 2022

¥

-

million

(2) Consolidated financial position

Total assets

Net assets

Equity capital ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of August 31, 2023

54,977

49,827

90.6

505.88

As of August 31, 2022

50,113

45,414

90.6

461.41

Reference:

Equity

As of August 31, 2023

¥49,827 million

As of August 31, 2022

¥45,414 million

(3) Consolidated Cash Flows

Cash flow from operating

Cash flow from investing

Cash flow from financing

Cash and cash equivalents at

activities

activities

activities

end of year

Year ended August

Millions of yen

Millions of yen

Millions of yen

Millions of yen

8,026

(4,016)

(3,251)

23,798

31, 2023

Year ended August

6,559

(2,173)

(2,444)

22,084

31, 2022

2. Cash dividends

Annual dividends per share

Total

Dividend

Ratio of

dividends to net

1Q-end

2Q-end

3Q-end

Year-end

dividends

payout ratio

Total

assets

(Total)

(Consolidated)

(consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of

%

%

yen

Year ended August 31,

-

12.00

-

18.00

30.00

2,952

55.8

7.0

2022

Year ended August 31,

-

14.00

-

21.00

35.00

3,447

57.9

7.2

2023

Year ending August 31,

-

16.00

-

23.00

39.00

65.1

2024

3. Forecast of consolidated financial results for the year ending August 31, 2024 (from September 1, 2023 to August 31, 2024)

(Percentages indicate year-on-year changes)

Net Sales

Operating income

Ordinary income

Profit attributable to

Earnings per share

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Second quarter

13,350

11.0

4,050

17.3

4,050

15.3

2,900

13.1

29.44

Full year

27,500

12.3

8,250

13.9

8,250

3.2

5,900

(0.9)

59.90

※ Notes

(1) Changes in significant subsidiaries during the fiscal year ended August 31, 2023

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) Changes in accounting policies, changes in accounting estimates, and retrospective restatements of prior period financial statements

① Changes in accounting policies due to revisions to accounting standards and other regulations:

Yes

②Changes in accounting policies due to other reasons:

No

③Changes in accounting estimates:

No

④Restatement of prior period financial statements:

No

Note: Please refer to p.16 "Changes in accounting policies" of the Attached Materials Index.

(3) Number of issued shares (common shares)

① Total number of issued shares at the end of the period (including treasury shares)

As of August 31, 2023

106,981,502 shares

As of August 31, 2022

106,911,000 shares

②Number of treasury shares at the end of the period

As of August 31, 2023

8,484,510 shares

As of August 31, 2022

8,484,468 shares

③Average number of shares during the period (cumulative from the beginning of the fiscal year)

As of August 31, 2023

98,471,183 shares

As of August 31, 2022

98,426,535 shares

  • Quarterly financial reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
  • Proper use of earnings forecasts, and other special matters
    The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ substantially due to various factors.

MANI, INC. (TOKYO 7730) Consolidated Financial Results of the Fiscal Year Ended August 31, 2023

  • Attached Materials Index

1. Overview of business results

2

(1)

Explanation of operating results

2

(2)

Explanation of financial position and cash flows

3

(3)

Future outlook

5

(4)

Basic policy on profit distribution and dividends for the current and next fiscal years

6

2. Basic approach on the selection of accounting standards

7

3. Consolidated financial statements

8

(1)

Consolidated balance sheet

8

(2)

Consolidated income statements and consolidated comprehensive income statements

10

Consolidated income statements

10

Consolidated comprehensive income statements

11

(3)

Consolidated statements of changes in net assets

12

(4)

Consolidated statements of cash flows

14

(5)

Notes to consolidated financial statements

16

(Notes on premise of going concern)

16

(Changes in accounting policies)

16

(Notes on consolidated balance sheets)

16

(Segment information, etc.)

17

(Per share information, etc.)

20

(Significant subsequent events of going concern)

20

4. Others

21

(1)

Changes in officers

21

(2)

Others

21

-1-

MANI, INC. (TOKYO 7730) Consolidated Financial Results of the Fiscal Year Ended August 31, 2023

1. Overview of business results

(1) Explanation of operating results

During the fiscal year ended August 31, 2023, the global economy showed signs of normalization of social and economic activities, as the impact of COVID-19 has been eased and daily human activities have recovered in Japan and overseas. However, the current outlook remains uncertain and requires careful observation due to factors such as the prolonged Russian invasion of Ukraine, continued soaring resource and energy prices, drastic rise in policy interest rates in Europe and the United States in response to inflationary risks, rapid exchange rate fluctuations, and concerns over an economic slowdown in China.

Under such circumstances, our Group aims to contribute to the well-being of people around the world by providing our products worldwide, based on our commitment "The Best Quality In The World, To The World." To achieve further growth, we have started our medium-term management plan from the fiscal year ended August 31, 2022, and are engaged in realizing our corporate philosophy by reforming our business model through the globalization of our sales, production, and development functions. During this fiscal year, our second year of the medium-term management plan, we are strengthening the construction of the mass production system and marketing activities aimed at expanding sales for the NiTi rotary file "JIZAI"1, which is one of our key products.

With the aim "to establish a global production system," at our German subsidiary MANI MEDICAL GERMANY GmbH (formerly GDF, hereinafter referred to as MMG), the construction of the new Head Office Factory has completed in August 2023, and production activities have begun from September. Going forward, MMG will increase its manufacturing capacity for dental restoration materials2 and promote sales in Europe, North America and Asia. In addition, preparations to construct the Smart Factory within Japan have been completed, and construction of the building will begin in October 2023. The Smart Factory is positioned as the first "pilot factory" for future overseas expansion of mass production technology of our new products and new production processes. With this Smart Factory, we will aim to expand sales globally while reducing the cost of products. To promote global marketing, as a new organization we established the "Dental Business Division" in September 2023 to further expand market share and sales of Dental products. We have set the enhancement of competitive advantage and marketing function of the Dental product segment as one of our important targets for the fiscal year ending August 31, 2024. (For details, please refer to (3) Future outlook).

We will continue to aim to increase corporate value through growth strategies based on our medium-term management plan.

(References)

  1. A flexible nickel titanium dental endodontic instrument used to treat an infected dental root canal in an endodontic treatment, which is one of the treatments for the dental nervous system known as pulp.
  2. An artificial resin material that is used for treatments to restore the shape of a tooth by filling the deficit portion (dental restoration treatment) and treatments to enhance dental aesthetics (aesthetic dental treatment).

Operating results for the fiscal year ended August 31, 2023

Net sales were ¥24,488 million (up 19.9% year on year), due to high product demands mainly in Asia and Europe. In particular, demand towards Eyeless Needle products have greatly increased. The increase in overseas sales caused by depreciation of yen have also contributed significantly to net sales. Cost of sales were ¥9,066 million (up 15.6% year on year) due to an increase in manufacturing costs at overseas subsidiaries. Selling, general and administrative expenses were ¥8,177 million (up 27.5% year on year) due to an increase in R&D expenses and expenses for enhancing our personnel structure at the Head Office. Despite there was an increase in cost of sales and selling, general and administrative expenses, our operating income was ¥7,243 million (up 17.5% year on year) because the increase in net sales have exceeded these negative factors substantially and led to an increase in operating income. Ordinary income was ¥7,995 million (up 6.0% year on year) mainly due to the recording of foreign exchange gains caused by depreciation of yen. Profit attributable to owners of parent was ¥5,953 million (up 12.5% year on year) due to an increase in operating income.

The following is an overview of financial results by segment. Segment sales figures are those from external customers.

Net sales

Segment income (Operating income)

Millions of yen

Year on year

Millions of yen

Year on year

Surgical products

6,784

13.9%

2,121

7.1%

Eyeless Needle products

8,574

37.2%

2,865

63.6%

Dental products

9,128

11.2%

2,256

(7.2%)

Consolidated

24,488

19.9%

7,243

17.5%

- 2 -

MANI, INC. (TOKYO 7730) Consolidated Financial Results of the Fiscal Year Ended August 31, 2023

(Surgical products)

The segment's sales were ¥6,784 million (up 13.9% year on year) and segment income was ¥2,121 million (up 7.1% year on year). Sales have increased due to an increase in demand for ophthalmic knives, which are used in cataract surgery, mainly in Asia and Europe from the same period of the previous fiscal year. Segment income has increased mainly due to an increase in net sales despite an increase in manufacturing costs.

(Eyeless Needle products)

The segment's sales were ¥8,574 million (up 37.2% year on year) and segment income was ¥2,865 million (up 63.6% year on year). Sales and segment income have continued to increase greatly due to an increase in orders for eyeless needles, which was caused by growing demand in Asia, North America, Europe and South America.

(Dental products)

The segment's sales were ¥9,128 million (up 11.2% year on year), and segment income was ¥2,256 million (down 7.2% year on year). Sales have increased due to strong sales of MMG products in Europe and North America, and steady sales of dental endodontic instruments (reamers and files) and dental rotary and cutting instruments (dia-burs) in Asian countries, particularly in China and India. Furthermore, depreciation of yen also boosted the increase in sales. Segment income, on the other hand, has decreased from the same period of the previous fiscal year due to increase in selling, general and administrative expenses..

  1. Explanation of financial position and cash flows i). Financial position

(Millions of yen)

End of the previous

End of the current

consolidated accounting period

consolidated accounting period

Change

(August 31, 2022)

(August 31, 2023)

Total assets

50,113

54,977

4,863

Current assets

32,503

34,994

2,490

Fixed assets

17,610

19,982

2,372

Liabilities

4,698

5,149

450

Net assets

45,414

49,827

4,412

Total assets as of the consolidated accounting period ended August 31, 2023 stood at ¥54,977 million, an increase of ¥4,863 million from the end of the previous consolidated accounting period. This was primarily due to an increase of ¥2,490 million in current assets (mainly an increase in cash and deposits) and an increase of ¥2,372 million in fixed assets (mainly an increase in construction in progress for the construction of the new Head Office Factory for MMG).

Total liabilities as of the consolidated accounting period ended August 31, 2023 stood at ¥5,149 million, an increase of ¥450 million from the end of the previous consolidated accounting period. This was primarily due to an increase of payments of other accounts payable and allowance for bonuses.

Total net assets as of the consolidated accounting period ended August 31, 2023 stood at ¥49,827 million, an increase of ¥4,412 million from the end of the previous consolidated accounting period. This was primarily due to an increase in retained earnings resulting from recordings of profit attributable to owners of parent and an increase in foreign currency translation adjustments related to overseas subsidiaries caused by depreciation of yen.

- 3 -

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Mani Inc. published this content on 12 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 October 2023 06:48:07 UTC.