Aica Kogyo : 【Delayed】Summary of Consolidated Financial Results for the Three Months Ended June 30, 2020(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 Three Months Ended June 30, 2020
		(Based on Japanese GAAP)
		July 31, 2020
Company name:	Aica Kogyo Company, Limited
Stock exchange listing:	Tokyo, Nagoya
Stock code:	4206	URL http://www.aica.co.jp
Representative:	President	Yuji Ono

Inquiries:	General Manager,Financial Management	Yousuke Mori	TEL [phone]
Department
Scheduled date to file Quarterly Securities Report:	August 7, 2020
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)
(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	%
Three months ended June 30, 2020	37,364		(14.2)	2,534		(42.5)	3,023		(34.4)	1,504	(45.9)
Three months ended June 30, 2019	43,558		2.0	4,405		1.1	4,608		0.8	2,781	5.2
	Earnings per share		Diluted earnings per share
			Yen			Yen
Three months ended June 30, 2020			23.04				23.03
Three months ended June 30, 2019			42.60				42.59
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen		Millions of yen				%
As of June 30, 2020	192,120	139,378				65.5
As of March 31, 2020	203,626	144,414				63.9

2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended March 31, 2020	-	49.00	-	57.00	106.00
Year ending March 31, 2021	-
Year ending March 31, 2021 (Forecast)		49.00	-	57.00	106.00

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)

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
77,500	(15.6)	5,100	(49.0)	5,300	(49.5)	3,300	(49.9)	50.54
September 30, 2020
Full year	174,500	(8.9)	14,500	(30.5)	14,700	(31.1)	9,000	(29.3)	137.84

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2020 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

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, 2020	67,590,664	shares	As of March 31, 2020	67,590,664	shares
Number of treasury shares at the end of the period
	As of June 30, 2020	2,296,935	shares	As of March 31, 2020	2,296,827	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2020	65,293,769	shares	Three months ended June 30, 2019	65,294,414	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2020	As of June 30, 2020
Assets
Current assets
Cash and deposits	40,690	38,453
Notes and accounts receivable - trade	61,691	52,443
Merchandise and finished goods	10,153	11,185
Work in process	1,132	1,443
Raw materials and supplies	8,098	7,939
Other	8,002	6,835
Allowance for doubtful accounts	(620)	(670)
Total current assets	129,148	117,630
Non-current assets
Property, plant and equipment	49,478	48,547
Intangible assets
Goodwill	6,352	6,971
Other	3,784	4,014
Total intangible assets	10,136	10,985
Investments and other assets
Other	14,874	14,969
Allowance for doubtful accounts	(12)	(12)
Total investments and other assets	14,862	14,956
Total non-current assets	74,477	74,490
Total assets	203,626	192,120
Liabilities
Current liabilities
Notes and accounts payable - trade	24,799	20,846
Electronically recorded obligations - operating	5,207	4,847
Short-term borrowings	5,947	5,367
Income taxes payable	3,616	4,457
Provision for bonuses	1,957	2,461
Other	10,040	7,726
Total current liabilities	51,568	45,706
Non-current liabilities
Long-term borrowings	914	797
Retirement benefit liability	1,476	1,426
Other	5,252	4,812
Total non-current liabilities	7,643	7,036
Total liabilities	59,212	52,742
Net assets
Shareholders' equity
Share capital	9,891	9,891
Capital surplus	13,276	13,276
Retained earnings	106,786	104,555
Treasury shares	(2,009)	(2,009)
Total shareholders' equity		127,945	125,714

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		(Millions of yen)
	As of March 31, 2020	As of June 30, 2020
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,743	2,940
Deferred gains or losses on hedges	16	(0)
Foreign currency translation adjustment	(474)	(2,767)
Remeasurements of defined benefit plans	(33)	(43)
Total accumulated other comprehensive income	2,252	129
Share acquisition rights	27	27
Non-controlling interests	14,188	13,506
Total net assets	144,414	139,378
Total liabilities and net assets	203,626	192,120

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2019	June 30, 2020
Net sales	43,558	37,364
Cost of sales	32,097	27,425
Gross profit	11,460	9,938
Selling, general and administrative expenses	7,055	7,403
Operating profit	4,405	2,534
Non-operating income
Interest income	47	45
Dividend income	161	148
Gain on sales of investment securities	-	536
Other	191	305
Total non-operating income	400	1,036
Non-operating expenses
Interest expenses	28	36
Sales discounts	39	33
Delivery delay conpensation	-	364
Other	128	113
Total non-operating expenses	196	547
Ordinary profit	4,608	3,023
Extraordinary losses
Loss on disaster	18	-
Total extraordinary losses	18	-
Profit before income taxes	4,590	3,023
Income taxes - current	1,473	1,560
Income taxes - deferred	(37)	(330)
Total income taxes	1,435	1,229
Profit	3,154	1,794
Profit attributable to non-controlling interests	373	289
Profit attributable to owners of parent		2,781	1,504

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Consolidated statements of comprehensive income (cumulative)

		(Millions of yen)
	Three months ended	Three months ended
	June 30, 2019	June 30, 2020
Profit	3,154	1,794
Other comprehensive income
Valuation difference on available-for-sale securities	(457)	197
Deferred gains or losses on hedges	(0)	(17)
Foreign currency translation adjustment	363	(3,010)
Remeasurements of defined benefit plans, net of tax	(77)	(10)
Share of other comprehensive income of entities accounted	5	8
for using equity method
Total other comprehensive income	(167)	(2,832)
Comprehensive income	2,987	(1,038)
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	2,537	(618)
Comprehensive income attributable to non-controlling	450	(420)
interests

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Support Data for the Summary of Consolidated

Financial Results for

the Three Months Ended June 30, 2020

Challenge & Creation

July 31, 2020

AICA KOGYO CO., LTD

1. Summary of consolidated financial results for the Three Months Ended June 30, 2020

[Millions of yen]

		FY Mar/2020			FY Mar/2021
		Q1	Profit	Q1		Profit	Growth	Q1-Q2	Progress
		margin		margin	Rate	Forecast	rate
	Net Sales	43,558	－	37,364		－	▲14.2%	77,500	48.2%
	Operating Profit	4,405	10.1%	2,534		6.8%	▲42.5%	5,100	49.7%
	Ordinary Profit	4,608	10.6%	3,023		8.1%	▲34.4%	5,300	57.0%
	Profit attributable to	2,781	6.4%	1,504		4.0%	▲45.9%	3,300	45.6%
	owners of the parent
									[Yen]
	Profit per share	42.6	－	23.0		－	▲45.9%	50.5	45.6%

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2. Sales result at the Three Months Ended June 30, 2020 and the breakdown by business segment

[Millions of yen]

Net Sales

Operating Profit

FY

FY

FY

Progress

FY

FY

FY

Progress

Mar/2020

Mar/2021

Difference

Mar/2021

Mar/2020

Mar/2021

Difference

Mar/2021

Q1

Q1

Q1-Q2

rate

Q1

Q1

Q1-Q2

rate

Forecast

Forecast

Chemical

1,856

1,293

▲ 563

2,375

54.4%

Amount

25,048

20,693

▲ 4,354

39,600

52.3%

Products

7.4%

6.2%

▲ 0.6%

6.0%

－

Profit margin

Construction

3,249

1,913

▲ 1,336

4,362

43.9%

Amount

18,509

16,670

▲ 1,839

37,900

44.0%

Materials

17.6%

11.5%

▲ 0.6%

11.5%

－

Profit margin

▲ 700

▲ 671

28

▲ 1,637

41.0%

（Non-allocation operating expenses→）

Amount

4,405

2,534

▲ 1,871

5,100

49.7%

Amount

TOTAL

43,558

37,364

▲ 6,193

77,500

48.2%

10.1%

6.8%

▲ 3.3%

6.6%

－

Profit margin

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3. Results of domestic and overseas sales (breakdown by business segment) at the Three Months Ended June 30, 2020

						[Millions of yen]
				Net Sales
		FY Mar/2021	FY Mar/2021
		Q1-Q2		Q1
		Forecast		YoY	Result	Progress rate
			(Q1 per Q1-Q2
						forecast)
Domestic sales	58,104.5		▲15%	27,252.7	46.9%
	Chemical	24,329.0		▲20%	12,698.6	52.2%
Overseas	Products
sales	Construction	5,137.2		▲20%	2,586.7	50.4%
	Materials

• Excluding new consolidated companies
• Sales before removing consolidated transactions

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4. Chemical Products Segment : Sales Breakdown by Product

					[Billions of yen]
		FY Mar/2020	FY Mar/2021
		Q1	Q1		Growth Rate
Adhesive	15.6	12.98		▲16.8%
	AAP(*)	12.43	10.31		▲17.0%
Construction Resin	2.18	1.91		▲12.5%
Speciality &	4.77	3.58		▲25.1%
Performcance materials
Others	2.48	2.21		▲10.8%
Total	25.04	20.69		▲17.4%

(*)AAP：AICA Asia Pacific Holding Pte. Ltd. (Singapore)

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5. Construction Materials Segment : Sales Breakdown by Product

				[Billions of yen]
	FY Mar/2020	FY Mar/2021
	Q1	Q1		Growth Rate
Melamine Decorative Laminated	3.94	4.22		7.1%
Sheets
Decorative Polyester Boards,	2.89	2.20		▲23.8%
Decorative Films
Melamine Noncombustible	4.48	3.88		▲13.4%
Decorative Panel "Cerarl"
Nonconbustible Decorative Panel	2.19	1.53		▲30.3%
(Except "Cerarl" )
Counterstops,	3.74	3.68		▲1.7%
Postforming products
Fittings, Interior Housing	1.24	1.13		▲8.4%
Materials
TOTAL	18.50	16.67		▲9.9%

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The matters such as current plan, prospect, strategy, or conviction which indicated in this report but not historical fact are only the expectation of the future achievement, and there are the risks or unexpected factors.

This information has made based on the judgment of the manager of Aica Kogyo Co., Ltd. using current available information. The actual result can be difference from the current prospect because of various important elements, so please avoid depending on fully to only this prospect.

This document is not a thing for investment inducement. We request that the decision about the investment will be performed by the judgment of each user.

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