Eiken Chemical : Consolidated Financial Results for the Year Ended March 31, 2022 PDF

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results for the Year Ended March 31, 2022

[Japanese GAAP]

Company name: EIKEN CHEMICAL CO.,LTD. Stock exchange listing: Tokyo

Code number: 4549

URL:https://www.eiken.co.jpRepresentative: Tsugunori Notomi Contact: Hajime Watari

Phone: [phone]

President & CEO

Senior Vice President & Executive OfficerScheduled date of Annual General Meeting of Shareholders: June 21, 2022 Scheduled date of commencing dividend payments: June 06, 2022 Scheduled date of filing annual securities report: June 22, 2022

Availability of supplementary briefing material on annual financial results: Yes Schedule of annual financial results briefing session: Yes

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022)

(1) Consolidated Operating Results

April 28, 2022

(% indicates changes from the previous corresponding period.)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Fiscal year ended March 31, 2022 March 31, 2021	Million yen 42,996 38,667	% 11.2 5.7	Million yen 8,387 6,612	% 26.8 43.0	Million yen 8,508 6,808	% 25.0 44.1	Million yen 6,218 5,044	% 23.3 42.5

(Note) Comprehensive income:

Fiscal year ended March 31, 2022:

Fiscal year ended March 31, 2021:

¥ ¥

6,290 million 5,507 million

• [ 14.2%]

• [ 65.0%]

  Basic earnings per share	Diluted earnings per share	Rate of return on equity	Ordinary profit to total assets ratio	Operating profit to net sales ratio
  Fiscal year ended March 31, 2022 March 31, 2021	Yen 168.28 136.65	Yen 167.01 135.60	% 14.3 12.9	% 14.4 12.8	% 19.5 17.1

  (Reference) Equity in earnings (losses) of affiliated companies:

  (2) Consolidated Financial PositionFiscal year ended March 31, 2022:

  Fiscal year ended March 31, 2021:

  Operating profit to

¥ ¥

- million - million

Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of March 31, 2022 March 31, 2021	Million yen 62,512 55,685	Million yen 45,803 41,672	% 72.8 74.3	Yen 1,230.55 1,120.36

(Reference) Equity:	As of	March 31, 2022:	¥	45,486 million
As of	March 31, 2021:	¥	41,375 million

(3) Consolidated Cash Flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of period
Fiscal year ended March 31, 2022 March 31, 2021	Million yen 7,769 5,451	Million yen (5,044) (2,193)	Million yen 1,200 (1,275)	Million yen 10,900 6,968

2. Dividends

Annual dividends	Total dividends	Payout ratio (consolidated)	Dividends to net assets (consolidated)
1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
Fiscal year ended March 31, 2021 March 31, 2022	Yen - -	Yen 15.00 20.00	Yen - -	Yen 26.00 31.00	Yen 41.00 51.00	Million yen 1,514 1,885	% 30.0 30.3	% 3.9 4.3
Fiscal year ending March 31, 2023 (Forecast)	-	17.00	-	18.00	35.00	35.8

(Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2022 :

Commemorative dividend Special dividend

- Yen - Yen

(Note) With regard to the year-end dividend for the fiscal year ending March 2022, we have increased the dividend from the latest dividend forecast 21 yen to 31 yen per share.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 01, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Basic earnings per share
Six months ended September 30, 2022 Full year	Million yen 20,100 40,000	% (5.8) (7.0)	Million yen 2,820 4,540	% (41.6) (45.9)	Million yen 2,840 4,570	% (42.0) (46.3)	Million yen 2,180 3,610	% (40.5) (42.0)	Yen 59.01 97.66

* Notes:

• (1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No

  New - (Company name: Exclusion: - (Company name:

  ) )

• (2) 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: No

• 3) Changes in accounting estimates: No

• 4) Retrospective restatement: No

(3) Total number of issued shares (common shares)

1) Total number of issued shares at the end of the period (including treasury shares):March 31, 2022:

March 31, 2021:

43,541,438 shares 43,541,438 shares

2) Total number of treasury shares at the end of the period:March 31, 2022:

March 31, 2021:

6,576,861 shares 6,611,071 shares

3) Average number of shares during the period:

Fiscal Year ended March 31, 2022:

Fiscal Year ended March 31, 2021:

36,955,394 shares 36,917,766 shares

(Reference) Summary of Non-consolidated Financial Results

Net sales	Operating profit	Ordinary profit	Net income
Fiscal year ended March 31, 2022 March 31, 2021	Million yen 42,915 38,610	% 11.1 5.6	Million yen 8,446 6,674	% 26.6 44.5	Million yen 8,515 6,833	% 24.6 45.3	Million yen 6,231 5,070	% 22.9 44.1

Basic earnings per share	Diluted earnings per share
Fiscal year ended March 31, 2022 March 31, 2021	Yen 168.62 137.35	Yen 167.34 136.30

Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of March 31, 2022 March 31, 2021	Million yen 62,469 55,696	Million yen 45,755 41,679	% 72.7 74.3	Yen 1,229.25 1,120.56

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022) (1) Non-consolidated Operating Results

(% indicates changes from the previous corresponding period.)
(Reference) Equity:	As of	March 31, 2022:	¥	45,438 million
As of	March 31, 2021:	¥	41,382 million

(2) Non-consolidated Financial Position

Consolidated Financial Statements Non-consolidated Financial Statements Non-consolidated Balance Sheets

(Million yen)As of March 31,2021

As of March 31,2022

Assets
Current assets
Cash and deposits	8,827	15,741
Notes receivable - trade	433	504
Accounts receivable - trade	11,861	11,447
Lease receivables	14	12
Investments in leases	290	323
Securities	80	-
Merchandise and finished goods	4,461	4,654
Work in process	1,621	1,709
Raw materials and supplies	1,632	1,789
Prepaid expenses	166	165
Other	213	226
Allowance for doubtful accounts	(4)	(4)
Total current assets	29,598	36,569
Non-current assets
Property, plant and equipment
Buildings	17,560	17,718
Accumulated depreciation	(10,596)	(11,045)
Buildings, net	6,964	6,672
Structures	1,456	1,468
Accumulated depreciation	(682)	(755)
Structures, net	773	712
Machinery and equipment	6,092	6,529
Accumulated depreciation	(4,882)	(5,111)
Machinery and equipment, net	1,209	1,418
Vehicles	37	44
Accumulated depreciation	(28)	(32)
Vehicles, net	9	12
Tools, furniture and fixtures	4,435	4,539
Accumulated depreciation	(3,460)	(3,858)
Tools, furniture and fixtures, net	975	681
Land	1,931	1,931
Leased assets	349	294
Accumulated depreciation	(201)	(191)
Leased assets, net	147	102
Construction in progress	345	3,302
Total property, plant and equipment	12,356	14,834
Intangible assets
Patent right	2	1
Software	587	1,137
Other	693	25
Total intangible assets	1,283	1,164

(Million yen)As of March 31,2021

As of March 31,2022

Investments and other assets
Investment securities	3,410	3,614
Investments in capital	0	0
Investments in capital of subsidiaries and associates	1,316	1,316
Distressed receivables	10	10
Long-term prepaid expenses	110	84
Long-term time deposits	4,900	1,900
Life insurance funds	167	167
Prepaid pension costs	969	1,138
Deferred tax assets	642	694
Investments in leases	691	750
Other	252	237
Allowance for doubtful accounts	(14)	(14)
Total investments and other assets	12,456	9,901
Total non-current assets	26,097	25,899
Total assets	55,696	62,469
Liabilities
Current liabilities
Notes payable - trade	3	-
Accounts payable - trade	4,073	4,534
Electronically recorded obligations - operating	2,636	2,961
Lease liabilities	377	392
Accounts payable - other	2,356	1,387
Accrued expenses	243	261
Income taxes payable	1,373	1,305
Refund liabilities	-	467
Contract liabilities	-	114
Advances received	52	-
Deposits received	81	112
Provision for bonuses	763	776
Provision for sales returns	8	-
Other	808	222
Total current liabilities	12,776	12,538
Non-current liabilities
Bonds payable	-	3,000
Lease liabilities	782	798
Asset retirement obligations	33	34
Other	423	342
Total non-current liabilities	1,239	4,175
Total liabilities	14,016	16,713