Furukawa Battery : Financial Results for the Six-month Period Ended September 30, 2020

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2021 (April 1, 2020 - March 31, 2021)

(Percentage figures represent year-on-year changes)

Notes:

(1) Changes in significant subsidiaries during the six-month period ended September 30, 2020 (Changes in specific subsidiaries accompanied by changes in the scope of consolidation): Newly included: None Excluded: None

1. Use of accounting methods that are specific to the preparation of the quarterly consolidated financial statements: Yes Note: For details, please refer to "2. Consolidated Financial Statements and Related Notes (3) Notes on Consolidated Financial Statements (Application of Special Accounting for Preparing Consolidated Financial Statements)" on page 8 of Attachment.
2. Changes in accounting policies, changes in accounting estimates, and retrospective restatements:
3. 1. Changes in accounting policies accompanying revisions in accounting standards: None
   2. Changes other than in (a): None
   3. Changes in accounting estimates: None
   4. Retrospective restatements: None
4. Number of shares outstanding (common stock)
5. 1. Shares outstanding (including treasury shares)

• Quarterly financial results reports are not required to be subjected to quarterly reviews conducted by certified public accountants or an audit corporation.
• Appropriate use of performance forecasts and other special items: (Disclaimer on forward-looking statements, etc.)
  Forward-looking statements in these materials are based on information available to management at the time this report was prepared, and on assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number of reasons. Please refer to "1. Qualitative Information on Consolidated Financial Results for the Six- month Period (3) Explanation of Forecast for the Fiscal Year Ending March 31, 2021" on page 3 of Attachment for details on the assumptions used and other related matters concerning the forecast of consolidated financial results.
  (Obtaining the supplementary documents for quarterly financial results)
  The Company plans to stream the financial results briefing via video for institutional investors and analysts on Tuesday, November 17, 2020.
  The video and the supplementary documents for quarterly financial results will be posted on the Company's website.

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1. Qualitative Information on Consolidated Financial Results for the Six-month Period

1. Explanation of Operating Results

(Business Environment)

During the six-month period ended September 30, 2020, the global economy has been in an extremely serious situation due to the impact of the global outbreak of the novel coronavirus disease (COVID-19), but there have been some signs of picking up.

Despite the continuation of this extremely serious situation due to the impact of COVID-19, the Japanese economy is expected to continue to pick up due to the effects of various policy measures and the improvement of the overseas economy.

The Furukawa Battery Group flexibly implemented measures to prevent the spread of infection, such as telework, and worked for the continuation of business, although there were signs of turmoil in the supply chains of various industries due to the spread of COVID-19.

(Operating Results)

The Group recorded consolidated sales of 25,457 million yen for the six-month period ended September 30, 2020, a decrease of 3,909 million yen year on year. Overseas sales were 9,147 million yen and accounted for 35.9% of total sales.

With regard to profit and loss, sales for replacement demand remained strong, despite sluggish sales to automobile manufacturers in the Japanese market and in the Thai market due to the stagnation of economic activity caused by COVID-19. Furthermore, profit improved at the Indonesia subsidiary due to the improvement of profitability and other factors, despite a decrease in sale amounts. As a result of the above, the Group overall recorded operating profit of 849 million yen, an increase of 163 million yen year on year. Ordinary profit increased by 199 million yen year on year to 866 million yen.

Profit attributable to owners of parent came to 674 million yen, increasing 99 million yen year on year.

(2) Explanation of Financial Position

Total assets were 53,181 million yen as of September 30, 2020, which is 853 million yen less than at the end of the previous fiscal year. Current assets decreased by 538 million yen from the end of the previous fiscal year to 24,600 million yen, while non-current assets decreased by 315 million yen to 28,581 million yen.

The main factors leading to the decrease in current assets were decreases in notes and accounts receivable - trade. There was an 838 million yen decrease in property, plant and equipment to 23,614 million yen. The main factor

leading to the decrease was that the decline resulting from depreciation, etc. was greater than the increase in capital investment.

Investments and other assets increased by 436 million yen to 4,744 million yen.

Total liabilities as of September 30, 2020, decreased by 1,161 million yen to 25,236 million yen. Current liabilities decreased by 2,112 million yen to 12,742 million yen, and non-current liabilities increased by 951 million yen to 12,494 million yen.

Interest-bearing debt, which is the sum of short-term borrowings and long-term borrowings, increased by 675 million yen to 7,405 million yen.

Equity increased by 313 million yen to 26,817 million yen, resulting in an increase in the equity ratio from 49.1% at the end of the previous fiscal year to 50.4% at the end of the six-month period.

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