Asahi Diamond Industrial : Annual Securities Report_From April 1, 2022 to March 31, 2023 (The 104th fiscal year)

Annual Securities Report

The 104th From April 1, 2022

fiscal year

to March 31, 2023

Cover
Document submitted	Annual Securities Report (Yukashoken Hokokusho)
Clause of stipulation	Article 24, Paragraph 1 of the Financial Instruments and Exchange Act
Submitted to	Director-General, Kanto Local Finance Bureau
Filing date	June 28, 2023
Fiscal year	The 104th fiscal year (April 1, 2022 through March 31, 2023)
Company name	Asahi Daiyamondo Kogyo Kabushiki Kaisha
Company name in English	Asahi Diamond Industrial Co., Ltd.
Title and name of representative	Kazuki Kataoka, President and Representative Director
Address of registered headquarters	4-1,Kioi-cho,Chiyoda-ku, Tokyo
Telephone number	[phone] (main)
Name of contact person	Masami Koura, Executive Officer and Administration Division Director
Nearest place of contact	4-1,Kioi-cho,Chiyoda-ku, Tokyo
Telephone number	[phone] (main)
Name of contact person	Masami Koura, Executive Officer and Administration Division Director
Place for public inspection	Tokyo Stock Exchange, Inc.
	(2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
	Osaka Branch, Asahi Diamond Industrial Co., Ltd.
	(3-4-30, Miyahara, Yodogawa-ku,Osaka-shi, Osaka)
	Nagoya Branch, Asahi Diamond Industrial Co., Ltd.
	(1-16-34, Aoi, Higashi-ku,Nagoya-shi, Aichi)
	North Kanto Branch, Asahi Diamond Industrial Co., Ltd.
	(1-20-1, Azuma, Kitamoto-shi, Saitama)

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Section 1 Company Information

I. Overview of Company

1. Key Financial Data

1. Consolidated financial data

		Fiscal year		100th	101st	102nd	103rd		104th
		Year ended		March 31, 2019	March 31, 2020	March 31, 2021	March 31, 2022		March 31, 2023
Net sales			(millions of yen)	41,046	35,304	30,143	37,161		39,320
Ordinary profit (loss)	(millions of yen)	3,108	591	(337)	3,650		3,275
Profit (loss) attributable to	(millions of yen)	2,321	(340)	(331)	3,288		2,765
owners of parent
Comprehensive income	(millions of yen)	168	(1,497)	992	4,187		5,063
Net assets			(millions of yen)	59,028	56,833	57,297	60,869		62,882
Total assets		(millions of yen)	73,047	70,007	68,144	72,241		74,177
Net assets per share	(yen)	1,040.37	1,000.06	1,008.33	1,067.79		1,142.25
Basic earnings (loss) per	(yen)	41.76	(6.13)	(5.97)	59.23		50.88
share
Diluted earnings per share	(yen)	-	-	-	-		-
Shareholders' equity ratio	(%)	79.0	79.3	82.1	82.1		82.5
Return on equity (ROE)	(%)	4.0	(0.6)	(0.6)	5.7		4.6
Price earnings ratio	(times)	18.3	(75.5)	(89.0)	10.0		18.4
Cash flows from	(millions of yen)	4,449	4,805	(90)	5,948		4,979
operating activities
Cash flows from	(millions of yen)	(5,144)	(4,990)	(4,289)	(356)		(1,260)
investing activities
Cash flows from	(millions of yen)	(914)	(732)	(604)	(1,077)		(3,145)
financing activities
Cash and cash equivalents	(millions of yen)	16,548	15,685	10,649	15,548		16,389
at end of period
Number of employees		2,208	2,139	2,050	2,057		2,037
[separately, average number of temporary
[333]	[331]	[301]	[393]		[416]
employees]
Notes:	1	The information related to diluted earnings per share is omitted because there are no residual shares.

1. The Company introduced a stock compensation plan in the 100th fiscal year. For calculating net assets per share, the Company includes its shares remaining in the stock compensation plan, which are recorded as treasury shares, into the treasury shares to be deducted in calculation of issued shares at end of period. For calculating basic earnings (loss) per share, the Company includes such shares into the treasury shares to be deducted in calculation of the average number of shares of common stock during the period.
2. Since the beginning of the 103rd fiscal year, the Company has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 of March 31, 2020) and other standards. Key financial data for the 103rd fiscal year and beyond are figures after the application of such standards.

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(2) Financial data of the reporting company (Non-consolidated)

		Fiscal year		100th	101st	102nd	103rd	104th
		Year ended		March 31, 2019	March 31, 2020	March 31, 2021	March 31, 2022	March 31, 2023
Net sales			(millions of yen)	31,964	27,740	24,549	29,186	30,691
Ordinary profit		(millions of yen)	2,059	596	76	2,103	3,292
Profit			(millions of yen)	1,684	332	201	1,899	3,165
Share capital		(millions of yen)	4,102	4,102	4,102	4,102	4,102
Total number of issued shares		55,700,000	55,700,000	55,700,000	55,700,000	53,888,600
Net assets			(millions of yen)	46,272	44,905	45,851	46,993	48,265
Total assets		(millions of yen)	57,446	55,336	54,636	56,027	57,437
Net assets per share	(yen)	833.71	808.97	826.04	846.30	901.24
Dividend paid per share		14.00	10.00	6.00	24.00	26.00
(of which, the amount of	(yen)
interim dividend paid per	(6.00)	(4.00)	(3.00)	(8.00)	(11.00)
share)
Basic earnings per share	(yen)	30.31	5.99	3.64	34.21	58.23
Diluted earnings per share	(yen)	-	-	-	-	-
Shareholders' equity ratio	(%)	80.5	81.1	83.9	83.9	84.0
Return on equity (ROE)	(%)	3.6	0.7	0.4	4.1	6.6
Price earnings ratio	(times)	25.2	77.3	146.0	17.3	16.1
Payout ratio		(%)	46.2	167.0	165.0	70.2	44.7
Number of employees		1,037	1,019	1,010	998	983
[separately, average
number of temporary		[302]	[318]	[286]	[378]	[407]
employees]
Total shareholder return	(%)	80.0	51.1	58.5	80.6	90.7
[Benchmark: TOPIX Total	(%)
(126.2)	(114.2)	(162.3)	(144.3)	(131.8)
Return Index]
Highest share price	(yen)	1,147	823	584	743	979
Lowest share price	(yen)	537	403	413	498	546
Notes:	1	The information related to diluted earnings per share is omitted because there are no residual shares.

1. The highest and lowest share prices are quoted prices on the First Section of the Tokyo Stock Exchange on or before April 3, 2022, and those on the Prime Market of the Tokyo Stock Exchange on or after April 4, 2022.
2. The Company introduced a stock compensation plan in the 100th fiscal year. For calculating net assets per share, the Company includes its shares remaining in the stock compensation plan, which are recorded as treasury shares, into the treasury shares to be deducted in calculation of the total number of issued shares at end of period. For calculating basic earnings per share, the Company includes such shares into the treasury shares to be deducted in calculation of the average number of shares of common stock during the period.
3. Since the beginning of the 103rd fiscal year, the Company has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 of March 31, 2020) and other standards. Key financial data for the 103rd fiscal year and beyond are figures after the application of such standards.

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2. History

October 1937	Asahi Diamond Industrial Co., Ltd. established in Ota-ku, Tokyo for manufacturing and marketing diamond
	tools.
January 1944	Ueno Factory (formerly Mie Factory) completed in Ueno-shi (currently Iga-shi), Mie.
December 1945	Corporate name changed to Asahi Kogei Co., Ltd. Production of Shippo (cloisonne enamel) crafts started.
May 1950	Head office moved to Chuo-ku, Tokyo.
May 1952	Corporate name changed to Asahi Diamond Industrial Co., Ltd. Full-scale production of diamond tools started.
July 1959	Asahi Electric Wire Co., Ltd. merged by absorption.
March 1963	Asahi Diamond Trading Co., Ltd. merged by absorption.
September 1965	Tamagawa Factory completed in Takatsu-ku,Kawasaki-shi.
April 1966	Asahi Trading Co., Ltd. merged by absorption.
September 1972	Participated in the management of Sun Diamond Kogyo Co., Ltd. (currently Yamanashi Asahi Diamond
	Industrial Co., Ltd., a consolidated subsidiary).
October 1972	Listed on the Second Section of the Tokyo Stock Exchange.
May 1978	Shinhan Diamond Industrial Co., Ltd., a joint venture (currently an equity-method associate), established in
	South Korea.
September 1978	Listed on the First Section of the Tokyo Stock Exchange.
August 1984	Mie No. 2 Factory completed in Ueno-shi (currently Iga-shi), Mie.
March 1989	Chiba Tsurumai Factory and Research and Development Center completed in Ichihara-shi, Chiba. (Shut down
	in February 2021.)
July 1991	Head office moved to the current location.
December 1993	Acquired all shares of Triefus France (currently Asahi Diamond Industrial Europe SAS, a consolidated
	subsidiary) and Triefus Australia (currently Asahi Diamond Industrial Australia Pty., Ltd., a consolidated
	subsidiary).
November 1995	Acquired additional shares of Taiwan Asahi Diamond Industrial Co., Ltd. (established as a joint venture in May
	1968; currently a consolidated subsidiary).
March 1999	Chiba No. 2 Factory completed in Chonan-machi,Chosei-gun, Chiba.
July 2002	Acquired all shares of P.T. Asahi Diamond Industrial Indonesia (currently a consolidated subsidiary).
July 2002	Asahi Diamond America, Inc. established in the United States (currently a consolidated subsidiary).
July 2002	Shanghai Xu Hui Diamond Industrial Co., Ltd. established in China (currently a consolidated subsidiary).
June 2006	Mie and Mie No. 2 Factories integrated to launch the current Mie Factory in Iga-shi, Mie.
December 2011	Acquired additional shares of Asahi Diamond (Thailand) Co., Ltd.(currently a consolidated subsidiary).
July 2013	Acquired all shares of Koremura Co., Ltd., a company manufacturing and selling whetstones (currently
	Koremura Asahi Diamond Industrial Co., Ltd., a consolidated subsidiary).
January 2015	Asahi Diamond Industrial Germany GmbH established in Germany (currently a consolidated subsidiary).
July 2015	Asahi Diamond Industrial Scandinavia AB established in Sweden (currently a consolidated subsidiary).
July 2015	Asahi Diamond Industrial Malaysia Sdn. Bhd. established in Malaysia (currently a consolidated subsidiary).
August 2015	Asahi Diamond de Mexico, S.A. de C.V. established in Mexico (currently a consolidated subsidiary).
July 2020	Chiba Factory completed in Sodegaura-shi, Chiba.
February 2021	Engineering & Development Center established in Takatsu-ku,Kawasaki-shi.
August 2021	North Kanto Branch opened in Kitamoto-shi, Saitama.
April 2022	Moved from the First Section to the Prime Market of the Tokyo Stock Exchange due to the restructuring of the
	market segments.

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