Dexerials : Consolidated Financial Results for the Three Months Ended June 30, 2022

Consolidated Financial Results for the Three Months Ended June 30, 2022

[Under Japanese GAAP]

Company name: Dexerials Corporation	Listing:	Tokyo Stock Exchange	July 28, 2022
Security code:	4980	URL:	https://www.dexerials.jp/en
Representative: Yoshihisa Shinya, Representative Director and President
Contact:	Shinji Tomita, General Manager, IR Department, Corporate Strategy Division	Phone: [phone]
Quarterly Securities Report (Shihanki Hokokusho) filing date:		August 5, 2022
Scheduled date of dividend payment:		‒
Preparation of supplementary briefing material on quarterly financial results: Yes
Investors meeting presentation for quarterly financial results:		Yes (For securities analysts and institutional investors)

(Note) Amounts less than one million yen have been omitted.

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 - June 30, 2022)

(1) Consolidated operating results (cumulative)

(Percentage indicates year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

June 30, 2022

26,775

31.6

8,347

70.1

7,260

60.9

4,664

57.3

June 30, 2021

20,347

47.0

4,907

290.6

4,513

263.6

2,965

281.7

Note: Comprehensive income

For the three months ended June 30, 2022:

¥5,740 million

[97.4%]

For the three months ended June 30, 2021:

¥2,908 million

[303.1%]

Note: EBITDA

For the three months ended June 30, 2022:

¥ 9,979million

[55.3%]

For the three months ended June 30, 2021:

¥6,424 million

[129.8%]

Basic earnings per share

Diluted earnings per share

Three months ended

Yen

Yen

June 30, 2022

78.13

77.69

June 30, 2021

48.63

48.28

(2) Consolidated financial position

Total assets

Net assets

Capital to asset ratio

Net assets per share

As of

Millions of yen

Millions of yen

%

Yen

June 30, 2022

118,712

63,976

53.5

1,076.72

March 31, 2022

127,410

64,140

50.0

1,063.24

Reference: Capital (Shareholders' equity + Accumulated other comprehensive income) As of June 30, 2022:

¥63,544 million

As of March 31, 2022:

¥63,735 million

2. Dividends

Cash dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Fiscal year

Yen

Yen

Yen

Yen

Yen

Ended March 31, 2022

‒

30.00

‒

30.00

60.00

Ending March 31, 2023

‒

Fiscal year

30.00

‒

35.00

65.00

Ending March 31, 2023 (forecast)

Note: Revisions to dividend forecast published most recently: None

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2023 (from April 1, 2022 - March 31, 2023) (Percentage indicates year-on-year changes.)

	Net sales		Operating profit		Ordinary profit	Profit attributable to		Basic earnings
			owners of parent		per share
	Millions of yen		%	Millions of yen	%		Millions of yen	%	Millions of yen	%		Yen
Fiscal year	110,000		14.9	31,000	16.4		29,600	18.3	20,000	20.0		329.48
Note: Revisions	to earnings forecast published most recently: None
For more information on consolidated financial results, please refer to results briefing materials posted on our website
(https://www.dexerials.jp/en/ir/library/index.html) and other materials.

[Notes]

1. Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Application of accounting methods used specifically for preparing the quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements

(a) Changes in accounting policies due to the application of new or revised accounting standards: Yes

(b) Changes in accounting policies due to reasons other than above (a):	None
(c) Changes in accounting estimates:	None
(d) Restatements of prior period financial statements:	None

Note: For further details, please see "1. Quarterly Consolidated Financial Statements and Notes, (3) Notes to quarterly consolidated financial statements (Changes in accounting policies)" on page 6 of the attached materials.

(4) Number of shares of common stock issued
(a) Number of shares issued (including treasury shares)
As of June 30, 2022:	64,519,400 shares	As of March 31, 2022:	64,493,400 shares
(b) Number of treasury shares
As of June 30, 2022:	5,503,329 shares	As of March 31, 2022:	4,548,709 shares
(c) Average number of shares of common stock during the period
Three months ended June 30, 2022: 59,702,350 shares	Three months ended June 30, 2021: 60,969,843 shares

Notes: 1. As a result of the exercise of stock options during the first quarter of the fiscal year ending March 31, 2023, the number of shares issued as of June 30, 2022 has increased by 26,000 shares.

• 1. As the Company has introduced a stock compensation plan which delivers shares with restrictions on transfer, the Company's shares are included in the number of treasury shares at the end of the period (293,800 shares as of June 30, 2022 and 293,800 shares as of June 30, 2021) mainly for the purpose of allotting them as restricted shares.
  2. As the Company has introduced an Employee Stock Ownership Plan ("J-ESOP") and a Board Benefit Trust (BBT), the number of shares of the Company held by the trust account is included in the number of treasury shares as of the end of the period. In addition, the number of shares of the Company held by the Trust (an average of 4,805,797 shares for the three months ended June 30, 2022 and an average of 3,331,648 shares for the three months ended June 30, 2021) was included in the number of treasury shares to be deducted in the calculation of the average number of shares of common stock during the period.
• This consolidated financial results report is not subject to a quarterly review by certified public accountants or an audit firm.
• [Proper use of earnings forecast, and other special notes]

(Disclaimer with respect to earnings and other forecasts)

The forward-looking statements including results forecasts contained in this document are based on information currently available to the Company and certain assumptions that the Company deems reasonable. Accordingly, the Company does not intend to promise their achievement. Actual results may differ from these forecasts and forward-looking statements due to various factors.

Contents for Attached Materials
1. Quarterly Consolidated Financial Statements and Notes.......................................................................................................	P. 2
(1)	Quarterly consolidated balance sheet...............................................................................................................................	P. 2
(2)	Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ...............	P. 4
	Quarterly consolidated statement of income
	For the three months ended June 30, 2022.............................................................................................................	P. 4
	Quarterly consolidated statement of comprehensive income
	For the three months ended June 30, 2022.............................................................................................................	P. 5
(3)	Notes to quarterly consolidated financial statements .......................................................................................................	P. 6
	(Going concern assumption)..........................................................................................................................................	P. 6
	(Significant changes in shareholders' equity) ................................................................................................................	P. 6
	(Changes in accounting policies)...................................................................................................................................	P. 6
	(Supplemental information)...........................................................................................................................................	P. 6
	(Segment information)...................................................................................................................................................	P. 7

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1. Quarterly Consolidated Financial Statements and Notes

(1) Quarterly consolidated balance sheet

			(Millions of yen)
		Previous fiscal year	Current quarter
		(As of March 31, 2022)	(As of June 30, 2022)
	Assets
	Current assets:
	Cash and deposits	29,363	23,756
	Notes and accounts receivable - trade	19,140	19,957
	Electronically recorded monetary claims - operating	289	324
	Merchandise and finished goods	3,794	4,118
	Work in process	3,565	3,288
	Raw materials and supplies	4,465	4,728
	Other	4,468	2,216
	Allowance for doubtful accounts	(2)	(3)
	Total current assets	65,086	58,387
	Non-current assets:
	Property, plant and equipment
	Buildings and structures	32,288	22,716
	Accumulated depreciation	(21,693)	(13,495)
	Buildings and structures, net	10,595	9,220
	Machinery, equipment and vehicles	38,755	39,033
	Accumulated depreciation	(31,651)	(32,017)
	Machinery, equipment and vehicles, net	7,103	7,015
	Land	3,572	2,462
	Construction in progress	3,620	5,416
	Other	7,664	8,111
	Accumulated depreciation	(5,915)	(6,125)
	Other, net	1,749	1,986
	Total property, plant and equipment	26,642	26,102
	Intangible assets:
	Goodwill	25,592	24,975
	Patent right	831	793
	Other	1,541	1,608
	Total intangible assets	27,966	27,377
	Investments and other assets:
	Shares of subsidiaries and associates	160	103
	Retirement benefit asset	3,250	3,326
	Deferred tax assets	2,730	1,734
	Other	1,586	1,693
	Allowance for doubtful accounts	(12)	(12)
	Total investments and other assets	7,716	6,845
	Total non-current assets	62,324	60,325
	Total assets	127,410	118,712

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			(Millions of yen)
		Previous fiscal year	Current quarter
		(As of March 31, 2022)	(As of June 30, 2022)
	Liabilities
	Current liabilities:
	Notes and accounts payable - trade	13,087	11,326
	Electronically recorded obligations - operating	2,928	3,045
	Short-term borrowings	6,500	6,500
	Current portion of long-term borrowings	4,465	4,451
	Accounts payable - other	5,935	6,183
	Accrued expenses	877	1,284
	Income taxes payable	6,822	1,797
	Provision for bonuses	3,084	1,048
	Other	6,102	5,536
	Total current liabilities	49,803	41,174
	Non-current liabilities
	Long-term borrowings	8,467	8,089
	Retirement benefit liability	4,385	4,356
	Deferred tax liabilities	297	374
	Other	316	741
	Total non-current liabilities	13,466	13,561
	Total liabilities	63,270	54,735
	Net assets
	Shareholders' equity:
	Share capital	16,170	16,178
	Capital surplus	16,170	16,128
	Retained earnings	35,733	38,510
	Treasury shares	(7,444)	(11,427)
	Total shareholders' equity	60,629	59,390
	Accumulated other comprehensive income:
	Deferred gains or losses on hedges	(359)	(343)
	Foreign currency translation adjustment	2,691	3,742
	Remeasurements of defined benefit plans	774	755
	Total accumulated other comprehensive income	3,105	4,153
	Non-controlling interests	404	432
	Total net assets	64,140	63,976
	Total liabilities and net assets	127,410	118,712

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