Nittoseiko : Summary of Consolidated Financial Results for the Six Months Ended（443kb）

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

		Summary of Consolidated Financial Results
		for the Six Months Ended June 30, 2023
		(Based on Japanese GAAP)
					August 10, 2023
Company name:	Nittoseiko Co.,Ltd.
Stock exchange listing:	Tokyo
Stock code:	5957	URL https://www.nittoseiko.co.jp/
Representative:	President		Makoto Araga
Inquiries:	Director,Accounting & Finance Division	Shinichi Matsumoto	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 10, 2023
Scheduled date to commence dividend payments:	September 8, 2023
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2023 (from January 1, 2023 to June 30, 2023)

(1) Consolidated operating results (cumulative)				Percentages indicate year-on-year changes
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Six months ended June 30, 2023	22,447	7.5	1,298	25.9	1,476	16.2	833	△16.3
Six months ended June 30, 2022	20,890	3.1	1,032	△45.2	1,270	△36.8	996	△19.1

	Earnings per share	Diluted earnings per share
		Yen				Yen
Six months ended June 30, 2023		22.57				-
Six months ended June 30, 2022		26.97				-
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen		Millions of yen		%
As of June 30, 2023	53,370		35,717		59.6
As of December 31, 2022	53,408		34,501		57.6
2. Cash dividends
				Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end
	Yen			Yen			Yen	Yen
Year ended December 31, 2022	-			8.00			-	8.00
Year ending December 31, 2023	-			9.00
Year ending December 31, 2023 (Forecast)							-	9.00

Total

Yen 16.00

18.00

3. Forecast of consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	46,500	5.6	3,500	19.4	3,700	14.4	2,200	20.3	59.54

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2023 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

	As of June 30, 2023	39,985,017	shares	As of December 31, 2022	39,985,017	shares
Number of treasury shares at the end of the period
	As of June 30, 2023	3,036,260	shares	As of December 31, 2022	3,034,386	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2023	36,950,225	shares	Six months ended June 30, 2022	36,934,680	shares

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2023 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

As of June 30, 2023	39,985,017	shares	As of December 31, 2022	39,985,017	shares
Number of treasury shares at the end of the period
As of June 30, 2023	3,036,260	shares	As of December 31, 2022	3,034,386	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2023	36,950,225	shares	Six months ended June 30, 2022	36,934,680	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2022	As of June 30, 2023
Assets
Current assets
Cash and deposits	9,098,940	9,618,434
Notes and accounts receivable - trade	9,890,226	9,262,658
Electronically recorded monetary claims - operating	4,096,689	3,552,532
Merchandise and finished goods	4,359,638	4,689,396
Work in process	2,835,323	3,008,862
Raw materials and supplies	2,886,760	3,218,761
Accounts receivable - other	873,875	512,107
Other	307,505	314,107
Allowance for doubtful accounts	(6,458)	(6,444)
Total current assets	34,342,500	34,170,416
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,240,912	4,229,686
Machinery, equipment and vehicles, net	3,007,907	3,277,096
Land	5,608,449	5,674,346
Construction in progress	712,956	501,196
Other, net	515,733	529,516
Total property, plant and equipment	14,085,959	14,211,843
Intangible assets
Software	408,588	375,085
Goodwill	467,671	424,822
Customer related assets	47,275	39,825
Technology related assets	213,150	198,450
Other	9,985	9,985
Total intangible assets	1,146,669	1,048,168
Investments and other assets
Investment securities	1,168,756	1,312,735
Deferred tax assets	678,324	581,626
Retirement benefit asset	1,350,119	1,407,413
Other	636,857	639,019
Allowance for doubtful accounts	(1,000)	(1,000)
Total investments and other assets	3,833,058	3,939,793
Total non-current assets	19,065,687	19,199,805
Total assets	53,408,188	53,370,221

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			(Thousands of yen)
		As of December 31, 2022	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	4,468,705	4,616,922
Electronically recorded obligations - operating	4,546,412	4,345,700
Short-term borrowings	2,436,836	1,851,930
Accounts payable - other	529,316	290,919
Income taxes payable	758,998	438,142
Provision for bonuses	263,798	329,873
Other	1,597,245	1,758,309
Total current liabilities	14,601,312	13,631,797
Non-current liabilities
Long-term borrowings	559,973	479,795
Provision for directors' retirement benefits	193,762	198,447
Provision for share-based remuneration for directors (and	62,237	77,806
other officers)
Deferred tax liabilities	395,051	426,795
Retirement benefit liability	2,585,929	1,842,160
Other	507,925	996,143
Total non-current liabilities	4,304,880	4,021,148
Total liabilities	18,906,193	17,652,946
Net assets
Shareholders' equity
Share capital	3,522,580	3,522,580
Capital surplus	2,674,370	2,767,848
Retained earnings	25,534,331	26,070,702
Treasury shares	(1,246,518)	(1,341,072)
Total shareholders' equity	30,484,763	31,020,058
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	60,050	133,157
Foreign currency translation adjustment	81,013	540,679
Remeasurements of defined benefit plans	131,562	119,614
Total accumulated other comprehensive income	272,627	793,451
Non-controlling interests	3,744,604	3,903,764
Total net assets	34,501,994	35,717,275
Total liabilities and net assets	53,408,188	53,370,221

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