S T : FY2023 Q3（508.6KB）

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.

February 7, 2023

Consolidated Financial Results

for the Nine Months Ended December 31, 2022

(Under Japanese GAAP)

Company name:	S.T. CORPORATION
Listing:	Tokyo Stock Exchange
Securities code:	4951
URL:	https://www.st-c.co.jp/
Representative:	Takako Suzuki, Representative Executive Officer, President, COO
Inquiries:	Kouichi Yoshizawa, Executive Officer
Telephone:	[phone]

Scheduled date to file quarterly securities report:	February 14, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results briefing:	None

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

1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)

(1) Consolidated operating results (cumulative)		(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	%
December 31, 2022	35,664		1.1	2,263	(25.8)	2,556	(20.7)	1,666	(24.1)
December 31, 2021	35,277	-		3,049	-	3,222	-	2,195	-

Note: Comprehensive income	For the nine months ended December 31, 2022:	¥1,805 million	[20.5%]
	For the nine months ended December 31, 2021:	¥1,497 million	[-%]
Basic earnings per share	Diluted earnings per
share
Nine months ended	Yen	Yen
December 31, 2022	74.94	-
December 31, 2021	98.79	98.78

Notes: 1. Figures for the nine months ended December 31, 2022, are the figures after applying "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) and relevant ASBJ regulations. The percentage of year-on-year change is not shown.

1. 2. Diluted earnings per share for the nine months ended December 31, 2022, are not given since there are no dilutive shares.

2. Consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
As of	Millions of yen	Millions of yen	%	Yen
December 31, 2022	45,387	32,702	70.8	1,444.60
March 31, 2022	44,402	31,847	70.4	1,407.03
Reference: Equity
As of December 31, 2022:	¥32,129 million
As of March 31, 2022:	¥31,274 million

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended	-	19.00	-	19.00	38.00
March 31, 2022
Fiscal year ending	-	20.00	-
March 31, 2023
Fiscal year ending
March 31, 2023				20.00	40.00
(forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(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
Fiscal year ending	47,500	4.5	2,550	(21.6)	2,850	(18.1)	1,900	71.3	85.48
March 31, 2023

Note: Revisions to the earnings forecasts most recently announced: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None

Newly included:	- companies
Excluded:	- companies

1. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None

Note: For more details, please refer to the section of "Changes in accounting policies" under "(3) Notes to quarterly consolidated financial statements" of "2. Quarterly consolidated financial statements and significant notes thereto" on page 8 of the attached material.

(4) Number of issued shares (common shares)

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

As of December 31, 2022	23,000,000 shares
As of March 31, 2022	23,000,000 shares

1. Number of treasury shares at the end of the period

As of December 31, 2022	759,200 shares
As of March 31, 2022	772,820 shares

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

Nine months ended December 31, 2022	22,240,835 shares
Nine months ended December 31, 2021	22,222,562 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters Caution regarding forward-lookingstatements and others
  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, the statements herein do not constitute assurances regarding the Company's actual results. Actual financial and other results may differ substantially from the statements herein due to various factors. Please refer to "(3) Explanation of consolidated earnings forecasts and other forward-looking statements" of "1. Qualitative information on quarterly consolidated financial results" on page 3 of the attached materials for the suppositions that form the assumptions for the earnings forecasts and cautions regarding the use of the earnings forecasts.
  Change in presentation of amounts
  Amounts given on the Company's quarterly consolidated financial statements and other items were previously rounded down to thousands of yen, but starting from the first quarter of the current fiscal year and the three months ended June 30, 2022, figures are rounded down to millions of yen.
  To make comparisons easier, figures for the previous fiscal year and the nine months ended December 31, 2021, have also been rounded down to millions of yen.
  Method of obtaining the supplementary material on quarterly financial results
  We intend to post the supplementary material on quarterly financial results to the "Investors" page of our corporate website soon after the announcement of the financial results for the nine months ended December 31, 2022, on Tuesday, February 7, 2023.

	S.T. CORPORATION (4951)
○ Attached Material Index
1. Qualitative information on quarterly consolidated financial results	2
(1)	Explanation of operating results	2
(2)	Explanation of financial position	3
(3)	Explanation of consolidated earnings forecasts and other forward-looking statements	3
2. Quarterly consolidated financial statements and significant notes thereto	4
(1)	Quarterly consolidated balance sheet	4
(2)	Quarterly consolidated statement of income and quarterly consolidated statement of
	comprehensive income	6
	Quarterly consolidated statement of income (cumulative)	6
	Quarterly consolidated statement of comprehensive income (cumulative)	7
(3)	Notes to quarterly consolidated financial statements	8
	Notes on going concern assumption	8
	Notes when there are significant changes in amounts of shareholders' equity	8
	Application of specific accounting for preparing the quarterly consolidated financial statements	8
	Changes in accounting policies	8
	Segment information	8

- 1 -

S.T. CORPORATION (4951)

1. Qualitative information on quarterly consolidated financial results

1. Explanation of operating results
   During the nine months ended December 31, 2022, the Japanese economy showed signs of recovery as restrictions on movement within Japan were relaxed and economic and social activities started to normalize amid the continuous impact of the novel coronavirus disease (COVID-19). On the other hand, a sense of uncertainty about the future persists as there are concerns surrounding the impact of energy resource and raw material price hikes, etc., on personal consumption, owing to the continuing war in Ukraine, and the confusion associated with the easing of zero-COVID measures in China.
   Under these circumstances, the Group has been taking action to enable its sustainable growth under its strategy of brand value management through initiatives that involve "drastic review of the existing business profit structure," "concentrated resources in growth areas," "clarification of business development systems," and "formulation and disclosure of long-term ESG strategies."
   For the nine months ended December 31, 2022, the Group's net sales amounted to 35,664 million yen (up 1.1% year on year) owing to growth in Thermal Care despite a fall-off in Cloth Care.
   As for profit, operating profit was 2,263 million yen (down 25.8% year on year), because of a rise in procurement costs caused by yen depreciation and an increase in selling, general and administrative expenses due to strategic marketing expenses for growth, and ordinary profit was 2,556 million yen (down 20.7% year on year) and profit attributable to owners of parent was 1,666 million yen (down 24.1% year on year), as the share of loss (profit) of entities accounted for using equity method and foreign exchange losses (gains) improved.
   Given that the Group operates a single segment of the daily necessities business, operating results by business category are as follows.
   In the Air Care (Air Fresheners and Deodorizers) category, we have been engaging in efforts that involve striving for more consistent sales of our existing mainstay products and developing high value-added products. Shoshu-Riki Natulief Reed Diffuser for entrances and living rooms, a new product that uses authentic botanical aroma formulation and is environmentally sound using paper sticks, etc., contributed to sales thanks to digital promotion, and sales of products with high unit price and high added value, such as Shoshu-Riki Premium Aroma for entrances and living rooms in the Premium Aroma series, were firm, although there was a stagnant growth in sales of Shoshu-Riki for entrances and living rooms, an existing core product, and a decline in sales of Shoshu-Riki DEOX for Toilet. Therefore, net sales were 15,667 million yen (down 0.8% year on year).
   In the Cloth Care (Mothproofing Agents) category, we are strengthening the Mushuda series by updating the product lineup and are moving forward with efforts to expand sales of Mushuda mite repellent. However, sales activities targeting seasonal wardrobe updates of last spring were launched earlier than normal, and sales of existing core products, including Mushuda for Drawers and Clothes Cases and Mushuda for Closets, declined, resulting in net sales of 5,649 million yen (down 3.7% year on year).
   For the Thermal Care (Disposable Warmers) category, we are focusing on expanding awareness and strengthening the lineup of the existing Onpax brand. In the fall, we launched sales of the Haru-Onpax Airy (adhesive type) value- added line, which achieves a new level of "lightness" and "thinness." Thanks mainly to an increase in sales of adhesive-type disposable warmers and an increase in exports to overseas, net sales were 4,175 million yen (up 14.2% year on year).
   In the Hand Care (Household Gloves) category, we worked to expand sales of Family gloves for home use. The selling price was revised due to a reduction in prices. In addition, growth in sales of industrial-use gloves, etc., and strong sales in overseas subsidiaries resulted in net sales of 4,373 million yen (up 2.0% year on year).
   In the Humidity Care (Dehumidifiers) category, we moved forward with a shift toward high value-added products by strengthening the Bincho-tan series and Dry Pet Clear products in order to prevent them from becoming mere commodities. Thanks mainly to growth in sales of tank-type dehumidifiers, net sales were 2,464 million yen (up 2.1% year on year).
   In the Home Care (Others) category, we have been aggressively promoting efforts to enter new business fields, which has included developing the Senjo-Riki and Kome-Touban brands. The firm sales of Kome-Touban, which prevents bugs in rice, through integrated deployment of TV commercials and SNS, the launch of the system toilet series for cats that solve odor problems into the growing pet care products market, and Shinsenban, a new product that maintains the freshness of vegetables that was launched last spring, contributed to sales, resulting in net sales of 3,332 million yen (up 2.3% year on year).
2. • 2 -