Aica Kogyo : 【Delayed】Summary of Consolidated Financial Results for the Year Ended March 31, 2021

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, 2021
		(Based on Japanese GAAP)
																				April 30, 2021
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 of ordinary general meeting of shareholders:		June 24, 2021
Scheduled date to file Securities Report:				June 25, 2021
Scheduled date to commence dividend payments:				June 25, 2021
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:							Yes	(for institutional investors and analysts)
												(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
(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, 2021	174,628		(8.8)		17,991		(13.7)		18,438	(13.6)	10,759		(15.5)
Year ended March 31, 2020	191,501		0.1		20,850		0.1		21,333	0.4		12,732		(4.4)
		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, 2021	164.79			164.73				8.1						8.9				10.3
Year ended March 31, 2020	195.01			194.93				9.9						10.7				10.9
(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, 2021		207,363					150,505					65.0				2,064.24
As of March 31, 2020		206,439					146,221					63.1				1,994.03
(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, 2021	19,713					(9,756)					(9,179)					41,185
Year ended March 31, 2020	18,240					(16,798)					(6,210)					40,644
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, 2020	-		49.00		-			57.00	106.00		6,921		54.4			5.4
Year ended March 31, 2021	-		49.00		-			58.00	107.00		6,986		64.9			5.3
Year ending March 31, 2022	-			50.00		-			58.00	108.00				54.2
(Forecast)

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3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

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
93,500	20.0	9,000	48.1	9,300	42.6		5,600	47.7	85.77
September 30, 2021
Full year	200,000	14.5	21,000	16.7	21,400	16.1		13,000	20.8	199.10
4. Notes
(1) Changes in significant subsidiaries during the year ended March 31, 2021			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, 2021	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 March 31, 2021	2,297,405	shares	As of March 31, 2020	2,296,827	shares
Average number of shares during the period
	Year ended March 31, 2021	65,293,525	shares	Year ended March 31, 2020	65,294,096	shares

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	40,690	42,420
Notes and accounts receivable - trade	61,691	57,892
Merchandise and finished goods	10,153	9,537
Work in process	1,132	1,064
Raw materials and supplies	8,098	7,584
Other	8,002	8,582
Allowance for doubtful accounts	(620)	(612)
Total current assets	129,148	126,468
Non-current assets
Property, plant and equipment
Buildings and structures	40,229	41,244
Accumulated depreciation	(25,946)	(27,054)
Buildings and structures, net	14,282	14,190
Machinery, equipment and vehicles	60,851	62,149
Accumulated depreciation	(47,436)	(49,385)
Machinery, equipment and vehicles, net	13,414	12,764
Tools, furniture and fixtures	11,442	11,967
Accumulated depreciation	(9,270)	(9,936)
Tools, furniture and fixtures, net	2,171	2,030
Land	14,530	14,451
Leased assets	4,352	5,675
Accumulated depreciation	(350)	(525)
Leased assets, net	4,001	5,150
Construction in progress	1,965	2,163
Total property, plant and equipment	50,366	50,750
Intangible assets
Goodwill	4,281	4,589
Other	7,780	7,931
Total intangible assets	12,062	12,520
Investments and other assets
Investment securities	12,523	15,632
Deferred tax assets	449	445
Retirement benefit asset	251	255
Other	1,649	1,301
Allowance for doubtful accounts	(12)	(12)
Total investments and other assets	14,862	17,623
Total non-current assets	77,290	80,894
Total assets		206,439	207,363

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			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	24,799	23,469
Electronically recorded obligations - operating	5,207	4,887
Short-term borrowings	5,947	6,015
Income taxes payable	3,616	3,428
Accrued consumption taxes	915	1,147
Provision for bonuses	1,957	2,090
Other	9,124	6,485
Total current liabilities	51,568	47,524
Non-current liabilities
Long-term borrowings	914	1,255
Deferred tax liabilities	3,897	4,373
Retirement benefit liability	1,476	1,486
Other	2,361	2,218
Total non-current liabilities	8,649	9,333
Total liabilities	60,218	56,858
Net assets
Shareholders' equity
Share capital	9,891	9,891
Capital surplus	13,276	13,280
Retained earnings	106,786	110,563
Treasury shares	(2,009)	(2,011)
Total shareholders' equity	127,945	131,724
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,743	4,594
Deferred gains or losses on hedges	16	(0)
Foreign currency translation adjustment	(474)	(1,512)
Remeasurements of defined benefit plans	(33)	(26)
Total accumulated other comprehensive income	2,252	3,055
Share acquisition rights	27	27
Non-controlling interests	15,995	15,697
Total net assets	146,221	150,505
Total liabilities and net assets		206,439	207,363

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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, 2020	March 31, 2021
Net sales	191,501	174,628
Cost of sales	139,564	125,095
Gross profit	51,936	49,532
Selling, general and administrative expenses
Packing and transportation costs	8,985	8,277
Advertising expenses	1,819	1,628
Salaries and bonuses	8,633	8,850
Provision for bonuses	949	1,050
Retirement benefit expenses	350	391
Welfare expenses	1,728	1,856
Depreciation	1,102	1,793
Rent expenses	703	752
Other	6,812	6,940
Total selling, general and administrative expenses	31,085	31,541
Operating profit	20,850	17,991
Non-operating income
Interest income	172	194
Dividend income	371	336
Gain on sale of investment securities	216	571
Subsidy	-	236
Other	685	685
Total non-operating income	1,446	2,024
Non-operating expenses
Interest expenses	125	138
Sales discounts	136	139
Compensation for delayed delivery	283	552
Foreign exchange losses	73	175
Other	345	571
Total non-operating expenses	963	1,576
Ordinary profit	21,333	18,438
Extraordinary income
Insurance claim income	522	-
Total extraordinary income	522	-
Extraordinary losses
Business restructuring costs	-	279
Loss on disaster	500	-
Total extraordinary losses	500	279
Profit before income taxes	21,355	18,159
Income taxes - current	7,047	6,467
Income taxes - deferred	140	(296)
Total income taxes	7,187	6,171
Profit	14,167	11,988
Profit attributable to non-controlling interests	1,434	1,228
Profit attributable to owners of parent		12,732	10,759

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Consolidated statements of comprehensive income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2020	March 31, 2021
Profit	14,167	11,988
Other comprehensive income
Valuation difference on available-for-sale securities	(1,564)	1,851
Deferred gains or losses on hedges	22	(17)
Foreign currency translation adjustment	(293)	(1,464)
Remeasurements of defined benefit plans, net of tax	(232)	7
Share of other comprehensive income of entities accounted	(101)	(1)
for using equity method
Total other comprehensive income	(2,169)	375
Comprehensive income	11,998	12,363
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	10,423	11,563
Comprehensive income attributable to non-controlling	1,574	800
interests

6

Consolidated statements of changes in equity

Fiscal year ended March 31, 2020

									(Millions of yen)
					Shareholders' equity
	Share capital		Capital surplus	Retained earnings		Treasury shares	Total shareholders'
			equity
Balance at beginning of period	9,891		13,279		100,739		(2,007)	121,904
Changes during period
Dividends of surplus						(6,855)			(6,855)
Profit attributable to owners						12,732			12,732
of parent
Purchase of treasury shares								(2)	(2)
Change in scope of						169			169
consolidation
Change in ownership interest
of parent due to transactions				(3)					(3)
with non-controlling interests
Net changes in items other
than shareholders' equity
Total changes during period		-		(3)		6,046		(2)	6,041
Balance at end of period	9,891		13,276		106,786		(2,009)	127,945
			Accumulated other comprehensive income
	Valuation	Deferred gains or	Foreign currency	Remeasurements	Total accumulated
	difference on	translation	of defined benefit	other
	available-for-sale	losses on hedges	comprehensive
	adjustment	plans
	securities			income
Balance at beginning of period	4,307	(5)		60	199	4,562
Changes during period
Dividends of surplus
Profit attributable to owners
of parent
Purchase of treasury shares
Change in scope of
consolidation
Change in ownership interest
of parent due to transactions
with non-controlling interests
Net changes in items other	(1,564)	22		(534)	(232)	(2,309)
than shareholders' equity
Total changes during period	(1,564)	22		(534)	(232)	(2,309)
Balance at end of period	2,743	16		(474)	(33)	2,252
	Share acquisition	Non-controlling	Total net assets
	rights		interests
Balance at beginning of period	27	9,622		136,116
Changes during period
Dividends of surplus					(6,855)
Profit attributable to owners					12,732
of parent
Purchase of treasury shares					(2)
Change in scope of					169
consolidation
Change in ownership interest
of parent due to transactions					(3)
with non-controlling interests
Net changes in items other	-	6,373		4,063
than shareholders' equity
Total changes during period	-	6,373		10,105
Balance at end of period	27	15,995		146,221

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Fiscal year ended March 31, 2021

									(Millions of yen)
					Shareholders' equity
	Share capital		Capital surplus	Retained earnings		Treasury shares	Total shareholders'
			equity
Balance at beginning of period	9,891		13,276		106,786		(2,009)	127,945
Changes during period
Dividends of surplus						(6,921)			(6,921)
Profit attributable to owners						10,759			10,759
of parent
Purchase of treasury shares								(2)	(2)
Change in scope of						(61)			(61)
consolidation
Change in ownership interest
of parent due to transactions				4					4
with non-controlling interests
Net changes in items other
than shareholders' equity
Total changes during period		-		4		3,776		(2)	3,779
Balance at end of period	9,891		13,280		110,563		(2,011)	131,724
			Accumulated other comprehensive income
	Valuation	Deferred gains or	Foreign currency	Remeasurements	Total accumulated
	difference on	translation	of defined benefit	other
	available-for-sale	losses on hedges	comprehensive
	adjustment	plans
	securities			income
Balance at beginning of period	2,743	16		(474)	(33)	2,252
Changes during period
Dividends of surplus
Profit attributable to owners
of parent
Purchase of treasury shares
Change in scope of
consolidation
Change in ownership interest
of parent due to transactions
with non-controlling interests
Net changes in items other	1,851	(17)		(1,037)	7	803
than shareholders' equity
Total changes during period	1,851	(17)		(1,037)	7	803
Balance at end of period	4,594	(0)		(1,512)	(26)	3,055
	Share acquisition	Non-controlling	Total net assets
	rights		interests
Balance at beginning of period	27	15,995		146,221
Changes during period
Dividends of surplus					(6,921)
Profit attributable to owners					10,759
of parent
Purchase of treasury shares					(2)
Change in scope of					(61)
consolidation
Change in ownership interest
of parent due to transactions					4
with non-controlling interests
Net changes in items other	-	(298)		504
than shareholders' equity
Total changes during period	-	(298)		4,284
Balance at end of period	27	15,697		150,505

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Consolidated statements of cash flows

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		March 31, 2020	March 31, 2021
Cash flows from operating activities
Profit before income taxes	21,355	18,159
Depreciation	4,664	5,773
Increase (decrease) in allowance for doubtful accounts	197	(40)
Increase (decrease) in provision for bonuses	21	142
Increase (decrease) in retirement benefit liability	172	151
Interest and dividend income	(543)	(531)
Interest expenses	125	138
Decrease (increase) in trade receivables	178	3,857
Decrease (increase) in inventories	659	1,075
Decrease (increase) in other current assets	(237)	972
Increase (decrease) in trade payables	(3,669)	(1,813)
Increase (decrease) in other current liabilities	1,327	(2,422)
Other, net	(268)	417
Subtotal	23,981	25,883
Interest and dividends received	552	544
Interest paid	(126)	(137)
Income taxes paid	(6,167)	(6,577)
Net cash provided by (used in) operating activities	18,240	19,713
Cash flows from investing activities
Payments into time deposits	(21)	(1,282)
Proceeds from withdrawal of time deposits	190	102
Purchase of property, plant and equipment	(5,863)	(5,560)
Purchase of intangible assets	(2,304)	(1,306)
Purchase of securities	-	(1,000)
Purchase of investment securities	(612)	(1,492)
Proceeds from sale of investment securities	737	1,533
Purchase of shares of subsidiaries resulting in change in scope	(7,033)	(294)
of consolidation
Purchase of shares of subsidiaries and associates	(29)	-
Other, net	(1,859)	(456)
Net cash provided by (used in) investing activities	(16,798)	(9,756)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	1,439	(141)
Repayments of long-term borrowings	(305)	(585)
Proceeds from long-term borrowings	823	973
Dividends paid	(6,850)	(6,921)
Dividends paid to non-controlling interests	(879)	(1,067)
Repayments of lease obligations	(171)	(181)
Purchase of shares of subsidiaries not resulting in change in	(264)	(1,253)
scope of consolidation
Other, net	(2)	(1)
Net cash provided by (used in) financing activities	(6,210)	(9,179)
Effect of exchange rate change on cash and cash equivalents	(100)	(236)
Net increase (decrease) in cash and cash equivalents	(4,869)	541
Cash and cash equivalents at beginning of period	45,379	40,644
Increase (decrease) in cash and cash equivalents resulting from	133	-
change in scope of consolidation
Cash and cash equivalents at end of period		40,644	41,185

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