Asahi Diamond Industrial : Summary of the Consolidated Financial Results for the Fiscal Year Ended March 31, 2023〔under Japanese GAAP〕

May 12, 2023

Summary of the Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023䛊under Japanese GAAP䛋

Financial Statements

1) Consolidated Balance Sheet

			Millions of yen
	FISCAL YEAR
	2022/3		2023/3
Cash and deposits		14,771	16,375
Notes and accounts receivable - trade		10,642	10,059
Securities		776	13
Merchandise and finished goods		2,847	3,169
Work in process		1,611	1,427
Raw materials and supplies		2,284	2,624
Other		527	738
Allowance for doubtful accounts		(101)	(106)
Current assets		33,361	34,301
Buildings and structures		27,913	27,293
Accumulated depreciation		(15,741)	(15,624)
Buildings and structures, net
	12,171	11,668
Machinery, equipment and vehicles
	31,623	31,870
Accumulated depreciation		(25,918)	(26,402)
Machinery, equipment and vehicles, net
	5,704	5,467
Land
	6,655	6,674
Construction in progress		81	515
Other		6,638	6,372
Accumulated depreciation		(5,816)	(5,636)
Other, net
	821	736
Property, plant and equipment		25,434	25,061
Intangible assets		240	190
Investment securities		10,715	12,861
Long-term loans receivable		―	4
Deferred tax assets		1,839	1,095
Other		1,158	1,138
Allowance for doubtful accounts		(507)	(477)
Investments and other assets		13,205	14,623
Non-current assets		38,880	39,876
Assets		72,241	74,177

Notes

䞉 Numbers with "( )" indicate negative numbers.

• This report contains estimates and forecasts pertaining to the future plans and business results. Such statements are based on information available at the time of the report's production and include potential risks and uncertainties. Actual results may differ from estimates and forecasts contained herein.

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			Millions of yen
	FISCAL YEAR
	2022/3		2023/3
Notes and accounts payable - trade		1,489	1,477
Short-term borrowings		210	179
Income taxes payable		532	503
Provision for bonuses		914	910
Other		1,934	2,183
Current liabilities		5,081	5,255
Retirement benefit liability		5,360	5,151
Deferred tax liabilities for land revaluation		350	350
Asset retirement obligations		59	61
Provision for business restructuring		259	217
Provision for share awards		116	125
Other		144	132
Non-current liabilities		6,290	6,039
Liabilities		11,372	11,295
Share capital		4,102	4,102
Capital surplus		7,129	7,129
Retained earnings		45,166	45,048
Treasury shares		(134)	(247)
Shareholders' equity		56,263	56,032
Valuation difference on available-for-sale securities		2,541	3,645
Revaluation reserve for land		196	196
Foreign currency translation adjustment		292	1,283
Remeasurements of defined benefit plans		(2)	15
Total accumulated other comprehensive income		3,028	5,140
Non-controlling interests		1,577	1,709
Net assets		60,869	62,882
Liabilities and net assets		72,241	74,177

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1. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income Consolidated Statement of Income

			Millions of yen
	FISCAL YEAR
	2021/4-2022/3		2022/4-2023/3
Net sales		37,161	39,320
Cost of sales		26,811	28,790
Gross profit		10,350	10,530
Selling expenses		4,819	5,208
General and administrative expenses		2,719	2,816
Selling, general and administrative expenses		7,539	8,024
Operating profit		2,811	2,506
Interest income		44	49
Dividend income		135	165
Foreign exchange gains		122	214
Share of profit of entities accounted for using equity method		359	250
Subsidy income		137	49
Miscellaneous income		57	67
Non-operating income		857	797
Interest expenses		4	20
Miscellaneous losses		13	7
Non-operating expenses		17	27
Ordinary profit		3,650	3,275
Gain on sale of non-current assets		64	―
Gain on sale of investment securities		228	555
Reversal of provision for business restructuring		208	―
Refund of customs duty		255	―
Extraordinary income		757	555
Profit before income taxes		4,408	3,830
Income taxes - current		713	732
Income taxes - deferred		308	240
Income taxes		1,021	973
Profit		3,387	2,856
Profit attributable to non-controlling interests		98	91
Profit attributable to owners of parent		3,288	2,765

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Consolidated Statement of Comprehensive Income

		Millions of yen
	FISCAL YEAR
	2021/4-2022/3	2022/4-2023/3
Profit	3,387	2,856
Other comprehensive income
Valuation difference on available-for-sale securities	(178)	1,103
Foreign currency translation adjustment	904	613
Remeasurements of defined benefit plans, net of tax	(124)	48
Share of other comprehensive income of entities accounted for using equity method	198	441
Other comprehensive income	799	2,206
Comprehensive income	4,187	5,063
(Comprehensive income attributable to)
Comprehensive income attributable to owners of parent	4,115	5,060
Comprehensive income attributable to non-controlling interests	71	3

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3) Consolidated Statement of Cash Flows

		Millions of yen
	FISCAL YEAR
	2021/4-2022/3	2022/4-2023/3
Cash flows from operating activities
Profit before income taxes	4,408	3,830
Depreciation	2,961	2,882
Increase (decrease) in allowance for doubtful accounts	(26)	(48)
Increase (decrease) in provision for bonuses	231	(14)
Increase (decrease) in retirement benefit liability	(221)	(162)
Increase (decrease) in provision for share awards	22	9
Increase (decrease) in provision for business restructuring	(210)	(63)
Interest and dividend income	(179)	(215)
Interest expenses	4	20
Share of loss (profit) of entities accounted for using equity method	(359)	(250)
Loss on retirement of property, plant and equipment	9	39
Loss (gain) on sale of property, plant and equipment	(71)	(5)
Loss (gain) on sale of investment securities	(228)	(555)
Decrease (increase) in trade receivables	(1,287)	774
Decrease (increase) in inventories	(253)	(337)
Increase (decrease) in trade payables	93	(145)
Other, net	1,231	(225)
Subtotal	6,123	5,533
Interest and dividends received	179	215
Interest paid	(4)	(20)
Income taxes paid	(350)	(748)
Net cash provided by (used in) operating activities	5,948	4,979
Cash flows from investing activities
Proceeds from sale of securities	1,000	―
Purchase of property, plant and equipment	(1,701)	(1,898)
Proceeds from sale of property, plant and equipment	151	21
Purchase of investment securities	(30)	(25)
Proceeds from sale of investment securities	401	687
Other, net	(178)	(45)
Net cash provided by (used in) investing activities	(356)	(1,260)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	(380)	(43)
Purchase of treasury shares	(0)	(1,540)
Proceeds from sale of treasury shares	16	28
Dividends paid	(612)	(1,479)
Dividends paid to non-controlling interests	(18)	(53)
Repayments of lease liabilities	(83)	(55)
Net cash provided by (used in) financing activities	(1,077)	(3,145)
Effect of exchange rate change on cash and cash equivalents	385	266
Net increase (decrease) in cash and cash equivalents	4,898	840
Cash and cash equivalents at beginning of period	10,649	15,548
Cash and cash equivalents at end of period	15,548	16,389

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