Sakai Chemical Industry : FY2022 Summary of Consolidated Financial Results (Based on Japanese GAAP）

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 Year Ended March 31, 2023

(Based on Japanese GAAP)

					May 12, 2023
Company name:	Sakai Chemical Industry Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	4078	URL http://www.sakai-chem.co.jp
Representative:	President, Representative Director	Toshiyuki Yagura
Inquiries:	Director, General Manager of Accounting &	Hiroyuki Hattori	TEL [phone]
	Finance Department
Scheduled date of ordinary general meeting of shareholders:	June 28, 2023
Scheduled date to file Securities Report:	June 28, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on financial results:	No
Holding of financial results meeting:		Yes	(for analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated operating results												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		%
Year ended March 31, 2023	83,861		4.6	4,407		(41.2)		4,854	(45.1)	2,344		(65.2)
Year ended March 31, 2022	80,135		(5.6)	7,494		74.1		8,840	120.3		6,747		-
	Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			share			owners of				assets			sales
							parent/equity
		Yen			Yen			%						%				%
Year ended March 31, 2023		144.85			-			2.9						3.9				5.3
Year ended March 31, 2022		407.06			-			8.7						7.2				9.4
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio	Net assets per share
	Millions of yen	Millions of yen					%						Yen
As of March 31, 2023		128,021					84,717					62.9				4,970.11
As of March 31, 2022		123,919					82,708					63.6				4,875.69
(3) Consolidated cash flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities		at end of period
	Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended March 31, 2023				773					(2,620)					3,283						12,188
Year ended March 31, 2022				6,567					(1,654)					(5,654)						10,549
2. Cash dividends
					Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
															to net assets
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
	Yen				Yen	Yen		Yen	Yen	Millions of yen		%			%
Year ended March 31, 2022	-			35.00	-		35.00	70.00		1,155		17.2			1.5
Year ended March 31, 2023	-			45.00	-		30.00	75.00		1,214		51.8			1.5
Year ending March 31, 2024	-			35.00	-				35.00	70.00				31.5
(Forecast)

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

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Six months ending

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

43,000

0.7

1,200

(63.3)

1,200

(68.7)

400

(86.1)

24.71

September 30, 2023

Full year

91,000

8.5

4,500

2.1

4,500

(7.3)

3,600

53.6

222.40

4. Notes

(1) Changes in significant subsidiaries during the year ended March 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 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

(3) Number of issued shares (common shares)

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

As of March 31, 2023

17,000,000 shares

As of March 31, 2022

17,000,000 shares

Number of treasury shares at the end of the period

As of March 31, 2023

805,601 shares

As of March 31, 2022

827,228 shares

Average number of shares during the period

Year ended March 31, 2023

16,187,247 shares

Year ended March 31, 2022

16,575,246 shares

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Consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	10,800	12,409
Notes and accounts receivable - trade	29,908	27,555
Merchandise and finished goods	13,026	16,355
Work in process	3,581	4,192
Raw materials and supplies	6,503	9,577
Other	1,717	2,046
Allowance for doubtful accounts	(40)	(36)
Total current assets	65,496	72,101
Non-current assets
Property, plant and equipment
Buildings and structures	46,808	46,946
Accumulated depreciation	(28,204)	(28,769)
Buildings and structures, net	18,604	18,177
Machinery, equipment and vehicles	76,267	77,447
Accumulated depreciation	(63,978)	(65,864)
Machinery, equipment and vehicles, net	12,288	11,583
Tools, furniture and fixtures	7,114	7,264
Accumulated depreciation	(5,981)	(6,134)
Tools, furniture and fixtures, net	1,133	1,130
Land	14,696	14,846
Construction in progress	1,411	1,024
Total property, plant and equipment	48,134	46,761
Intangible assets
Goodwill	1,146	1,012
Other	372	355
Total intangible assets	1,519	1,368
Investments and other assets
Investment securities	4,859	4,838
Retirement benefit asset	51	50
Deferred tax assets	3,352	2,302
Other	534	628
Allowance for doubtful accounts	(29)	(29)
Total investments and other assets	8,769	7,790
Total non-current assets	58,423	55,920
Total assets	123,919	128,021

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		(Millions of yen)
	As of March 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	9,452	8,610
Short-term borrowings	8,202	13,175
Income taxes payable	1,771	733
Provision for bonuses	1,371	1,311
Other provisions	137	190
Other	5,836	5,216
Total current liabilities	26,771	29,237
Non-current liabilities
Long-term borrowings	8,756	8,467
Provision for environmental measures	139	145
Retirement benefit liability	5,190	5,071
Deferred tax liabilities	76	139
Other	277	241
Total non-current liabilities	14,439	14,066
Total liabilities	41,211	43,304
Net assets
Shareholders' equity
Share capital	21,838	21,838
Capital surplus	16,299	16,293
Retained earnings	41,433	42,482
Treasury shares	(1,798)	(1,751)
Total shareholders' equity	77,772	78,863
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,202	1,254
Deferred gains or losses on hedges	6	(0)
Foreign currency translation adjustment	(149)	253
Remeasurements of defined benefit plans	21	117
Total accumulated other comprehensive income	1,081	1,624
Non-controlling interests	3,854	4,229
Total net assets	82,708	84,717
Total liabilities and net assets	123,919	128,021

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2022	March 31, 2023
Net sales	80,135	83,861
Cost of sales	59,090	65,381
Gross profit	21,045	18,479
Selling, general and administrative expenses	13,550	14,072
Operating profit	7,494	4,407
Non-operating income
Interest income	8	4
Dividend income	219	147
Insurance claim income	52	2
Foreign exchange gains	389	363
Subsidies for employment adjustment	23	2
Subsidy income	771	-
Other	117	75
Total non-operating income	1,581	595
Non-operating expenses
Interest expenses	73	76
Guarantee commission	20	20
Other	141	50
Total non-operating expenses	235	148
Ordinary profit	8,840	4,854
Extraordinary income
Gain on sale of non-current assets	30	122
Gain on sale of investment securities	1,533	85
Gain on sale of golf club membership	-	1
Insurance claim income	-	378
Total extraordinary income	1,563	589
Extraordinary losses
Impairment losses	-	40
Loss on explosion and fire accident	294	-
Loss on retirement of non-current assets	613	127
Loss on sale of investment securities	272	-
Loss on valuation of investment securities	0	81
Loss related to quality	-	215
Other	-	1
Total extraordinary losses	1,180	466
Profit before income taxes	9,223	4,977
Income taxes - current	2,389	1,308
Income taxes - deferred	(269)	1,060
Total income taxes	2,119	2,368
Profit	7,104	2,608
Profit attributable to non-controlling interests	357	264
Profit attributable to owners of parent	6,747	2,344

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