Harima Chemicals : Consolidated Financial Results Highlights for the Second Quarter of the Fiscal Year ending March 31, 2024

Consolidated Financial Results Highlights

for the Second Quarter of the Fiscal Year ending March 31, 2024

[Japanese GAAP]

October 31, 2023

Company Name: HARIMA CHEMICALS GROUP, INC.

Code Number: 4410 (URL www.harima.co.jp)

Stock Exchange Listing: Tokyo Stock Exchange

Representative: Yoshihiro Hasegawa, President

Contact: Kiyotaka Uetsuji, Managing Director, Accounting Section Director

Phone: [phone]

Scheduled submission date of the Quarterly Securities Report: November 7, 2023

Scheduled date to commence dividend payments: December 4, 2023

Availability of supplementary briefing material on quarterly results: Available

Schedule of quarterly results briefing session: Not scheduled

(Figures are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter of the Year Ending March 31, 2024 (From April 1, 2023 to September 30, 2023)

(1) Consolidated Results of Operations (Cumulative)	(% indicates changes from the same period of the previous year)
							Net income attributable to
	Net sales		Operating income	Ordinary income		Harima Chemicals
							Group,INC.
Second Quarter ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
September 30, 2023	45,272	(3.5)	(607)	－	(304)	－	(406)	－
September 30, 2022	46,897	29.0	2,199	12.9	2,796	37.6	1,491	19.1

(Note) Comprehensive income: Second quarter ended September 30, 2024:	1,754 million yen [ (62.4)%]
	Second quarter ended September 30, 2023:	4,660 million yen [ 63.3%]
	Net income per share	Fully diluted net income
	per share
Second Quarter ended	Yen		Yen
September 30, 2023	(16.79)	－
September 30, 2022	59.52	－

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Millions of yen	Millions of yen	%
Second Quarter ended	100,506	41,610	37.9
September 30, 2023
Fiscal year ended	92,439	40,820	40.1
March 31, 2023
(Reference) Equity: The second quarter of Fiscal year ending March 31, 2024: 38,103 million yen,
Fiscal year ended March 31, 2023: 37,102 million yen

2. Dividends

					Annual dividend
		1Q	2Q		3Q	Year end	Total
		Yen	Yen		Yen	Yen	Yen
Fiscal year ended			21.00		－	21.00	42.00
March 31, 2023		－
Fiscal year ending			21.00
March 31, 2024		－
Fiscal year ending
March 31, 2024					－	21.00	42.00
(Forecast)

(Note) Changes in forecasts of dividends from recently announced figures: None

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3. Forecast of Consolidated Financial Results for Fiscal Year Ending March 31, 2023(From April 1, 2023 to March 31, 2024)

					(% indicates	changes from the same period	of the	previous year)
							Net income attributable		Net income
	Net sales		Operating income		Ordinary income	to Harima Chemicals
				per share
							Group,INC.
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%		Yen
Full year	91,000	(3.7)	(1,400)	－	(1,300)	－	(1,450)	－		(59.83)
(Note) Changes in forecasts of financial results from recently announced figures: None

4. Others

(1) Significant changes of subsidiaries during period under review (affecting specific subsidiaries due to

changes in scope of consolidation): None
Newly included: 0 (Company name:	) Excluded: 0 (Company name:	)

1. Application of special accounting method for the preparation of quarterly consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates and corrections of errors
3. 1. Changes in accounting policies accompanying the revisions to items such as accounting standards: None
   2. Changes in accounting policies other than (1) above: None
   3. Changes in accounting estimates: None
   4. Corrections of errors: None
4. Number of shares issued (common stock)
5. 1. Total number of shares issued at the end of the period (including treasury stock)

	2Q of fiscal year ending March 31, 2024	26,080,396 shares
	Fiscal year ended March 31, 2023	26,080,396 shares
(2)	Total number of treasury stock at the end of the period
	2Q of fiscal year ending March 31, 2024	1,846,843 shares
	Fiscal year ended March 31, 2023	1,878,064 shares
(3)	Average number of shares during the period (cumulative from the beginning of the fiscal year)
	2Q of fiscal year ending March 31, 2024	24,215,727 shares
	2Q of fiscal year ended March 31, 2023	25,063,997 shares

This summary of consolidated financial results is not subject to audit procedure.

* Explanation for the appropriate use of performance forecasts and other special notes:

The performance forecasts and other forward-looking statements herein are based on information currently available to the Company and certain preconditions which the Company believes to be reasonable. Actual results may differ significantly from these forecasts due to a wide range of factors.

* Regarding the change in disclosure unit of the amounts:

Amounts of accounts and other items in the Company's consolidated financial statements used to be stated in units of thousands of yen, but from this first quarter of the consolidated cumulative period, they have been stated in units of millions of yen. For easy comparison, figures for the second quarter of the previous fiscal year have also been changed to units of millions of yen.

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Segment Information

1. Six months ended September 30, 2022 (April 1, 2022 to September 30, 2022) Information regarding net sales and income or loss by reporting segment

(Millions of yen)

			Reporting segment
	Resin & Tall Oil	Paper Chemicals	Electronics	Lawter	Subtotal
	Products	Materials
Net sales
Net sales to external	9,343	12,170	3,780	20,463	45,758
customers
Intersegment sales or	134	122	－	712	968
transfers
Total	9,477	12,292	3,780	21,176	46,727
Segment income(loss)	(111)	856	159	1,616	2,521

Others		Adjustment	Amount in consolidated
Total	statement of income
(Note 1)	(Note 2)
	(Note 3)

Net sales

Net sales to external	1,065	46,824	73	46,897
customers
Intersegment sales or	89	1,057	(1,057)	－
transfers
Total	1,154	47,881	(984)	46,897
Segment income(loss)	(22)	2,498	(299)	2,199

1. Six months ended September 30, 2023 (April 1, 2023 to September 30, 2023) Information regarding net sales and income or loss by reporting segment

(Millions of yen)

			Reporting segment
	Resin & Tall Oil	Paper Chemicals	Electronics	Lawter	Subtotal
	Products	Materials
Net sales
Net sales to external	10,438	11,613	5,562	15,809	43,424
customers
Intersegment sales or	353	－	－	421	774
transfers
Total	10,792	11,613	5,562	16,230	44,199
Segment income(loss)	25	643	223	(1,158)	(265)

Others		Adjustment	Amount in consolidated
Total	statement of income
(Note 1)	(Note 2)
	(Note 3)

Net sales

Net sales to external	1,862	45,286	(14)	45,272
customers
Intersegment sales or	112	887	(887)	－
transfers
Total	1,975	46,174	(902)	45,272
Segment income(loss)	(25)	(290)	(316)	(607)

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(Notes) 1.The "Others" segment includes businesses not included in the reporting segments and mainly includes "Real estate management."

1. The adjustment amount of segment income (loss) includes adjustments for inventories.
2. Segment income (loss) is adjusted to reflect operating income (loss) as recorded in the quarterly consolidated statement of income.

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