Chugoku Marine Paints : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

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, 2023
		(Based on Japanese GAAP)
		July 31, 2023
Company name:	CHUGOKU MARINE PAINTS, LTD.
Stock exchange listing:	Tokyo
Stock code:	4617	URL https://www.cmp.co.jp/
Representative:	President	Kenshi Date

Inquiries:	Director, Chief of Administration	Katsunori Kobayashi	TEL [phone]
Headquarter
Scheduled date to file Quarterly Securities Report:	August 8, 2023
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, 2023 (from April 1, 2023 to June 30, 2023)

(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, 2023	26,489		24.7		2,074	-		2,391			-		1,729		-
Three months ended June 30, 2022	21,245		8.9		(450)	-		(149)			-		(461)		-
	Earnings per share			Diluted earnings per share
				Yen				Yen
Three months ended June 30, 2023			34.90				-
Three months ended June 30, 2022			(9.12)				-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%				Yen
As of June 30, 2023	115,221					65,210				52.1		1,211.72
As of March 31, 2023	112,747					63,130				51.6		1,174.01
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, 2023		-		17.00			-				18.00			35.00
Year ending March 31, 2024		-
Year ending March 31, 2024 (Forecast)				34.00			-				34.00			68.00

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	105,000	5.5	8,400	116.1	9,300	113.7	8,400	118.2	169.52

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4. Notes
(1)	Changes in significant subsidiaries during the three months ended June 30, 2023	No
	(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
(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, 2023	55,000,000 shares	As of March 31, 2023		55,000,000 shares
	Number of treasury shares at the end of the period
		As of June 30, 2023	5,448,585 shares	As of March 31, 2023		5,446,058 shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Three months ended June 30, 2023	49,553,121 shares	Three months ended June 30, 2022	50,563,657 shares

These financial results are not subject to review by certified public accountants or auditing firms.

Explanation regarding the appropriate use of forecasts of business results and other special instructions

These forecasts are based on various assumptions made at the date of release of these materials, including the information available at the date of release of these materials and uncertain factors that may affect future results, and the Company makes no representations as to their achievability. Actual results may differ materially from these forecasts as a consequence of various factors.

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits	21,177	21,762
Notes and accounts receivable - trade	31,667	33,684
Electronically recorded monetary claims - operating	2,218	2,303
Merchandise and finished goods	12,864	12,985
Work in process	630	573
Raw materials and supplies	10,781	10,229
Other	2,240	1,867
Allowance for doubtful accounts	(490)	(492)
Total current assets	81,089	82,914
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,953	4,929
Machinery, equipment and vehicles, net	3,337	3,403
Land	13,136	13,146
Other, net	3,360	3,503
Total property, plant and equipment	24,788	24,983
Intangible assets	332	303
Investments and other assets
Investment securities	5,324	5,813
Retirement benefit asset	275	274
Deferred tax assets	476	473
Other	1,864	1,884
Allowance for doubtful accounts	(1,402)	(1,426)
Total investments and other assets	6,537	7,019
Total non-current assets	31,658	32,306
Total assets	112,747	115,221

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			(Millions of yen)
		As of March 31, 2023	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	11,428	11,578
Electronically recorded obligations - operating	1,730	1,902
Short-term borrowings	20,437	20,218
Current portion of long-term borrowings	1,700	1,700
Accounts payable - other	2,676	2,494
Income taxes payable	719	663
Provision for bonuses	140	211
Provision for product warranties	157	145
Other	3,225	3,290
Total current liabilities	42,216	42,205
Non-current liabilities
Long-term borrowings	1,000	1,000
Long-term accounts payable - other	16	16
Deferred tax liabilities	1,286	1,615
Deferred tax liabilities for land revaluation	2,223	2,223
Retirement benefit liability	1,855	1,899
Other	1,019	1,050
Total non-current liabilities	7,401	7,805
Total liabilities	49,617	50,010
Net assets
Shareholders' equity
Share capital	11,626	11,626
Retained earnings	41,536	42,373
Treasury shares	(4,918)	(4,918)
Total shareholders' equity	48,244	49,081
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,868	2,242
Revaluation reserve for land	3,798	3,798
Foreign currency translation adjustment	4,131	4,786
Remeasurements of defined benefit plans	133	132
Total accumulated other comprehensive income	9,932	10,960
Non-controlling interests	4,953	5,167
Total net assets	63,130	65,210
Total liabilities and net assets	112,747	115,221

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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, 2022	June 30, 2023
Net sales	21,245	26,489
Cost of sales	16,781	19,249
Gross profit	4,464	7,240
Selling, general and administrative expenses	4,914	5,165
Operating profit (loss)	(450)	2,074
Non-operating income
Interest income	20	59
Dividend income	190	173
Royalty income	29	30
Technical advisory fee income	13	14
Foreign exchange gains	101	98
Other	63	72
Total non-operating income	418	449
Non-operating expenses
Interest expenses	94	107
Other	22	24
Total non-operating expenses	117	132
Ordinary profit (loss)	(149)	2,391
Extraordinary income
Gain on sale of non-current assets	0	0
Gain on sale of investment securities	21	56
Gain on sale of membership	0	-
Total extraordinary income	21	57
Extraordinary losses
Loss on sale of non-current assets	0	-
Loss related to COVID-19	53	-
Total extraordinary losses	53	-
Profit (loss) before income taxes	(181)	2,448
Income taxes - current	204	419
Income taxes - deferred	75	172
Total income taxes	280	591
Profit (loss)	(461)	1,856
Profit (loss) attributable to non-controlling interests	(0)	127
Profit (loss) attributable to owners of parent		(461)	1,729

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