Eiken Chemical : Consolidated Financial Results for the Nine Months Ended December 31, 2022

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Nine Months Ended December 31, 2022

[Japanese GAAP]

												January 30, 2023
Company name: EIKEN CHEMICAL CO.,LTD.
Stock exchange listing: Tokyo
Code number: 4549
URL: https://www.eiken.co.jp
Representative: Tsugunori Notomi				President & CEO
Contact: Hajime Watari					Senior Vice President & Executive Officer
Phone: [phone]
Scheduled date of filing quarterly securities report: February 10, 2023
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: No
							(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2022 (April 01, 2022 to December 31, 2022)
(1) Consolidated Operating Results				(% indicates changes from the previous corresponding period.)
		Net sales			Operating profit		Ordinary profit		Profit attributable to
						owners of parent
Nine months ended		Million yen		%		Million yen	%		Million yen	%		Million yen	%
December 31, 2022		33,860		6.4		6,999	5.4		7,107	5.4		5,361	6.5
December 31, 2021		31,831		11.5		6,643	20.1		6,740	19.2		5,036	17.5

(Note) Comprehensive income:	Nine months ended December 31, 2022:
	Nine months ended December 31, 2021:

¥	5,325 million	[	4.7%]
¥	5,085 million	[	16.7%]

	Basic earnings	Diluted earnings per
	per share	share
Nine months ended	Yen	Yen
December 31, 2022	145.04	143.85
December 31, 2021	136.29	135.28

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Million yen		Million yen	%	Yen
December 31, 2022	67,531		49,143	72.2	1,319.61
March 31, 2022	62,512		45,803	72.8	1,230.55
(Reference) Equity: As of	December 31, 2022:	¥	48,778 million
As of	March 31, 2022:	¥	45,486 million

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2022

-

20.00

-

31.00

51.00

Fiscal year ending March 31, 2023

-

24.00

-

Fiscal year ending March 31, 2023

24.00

48.00

(Forecast)

(Note) Revision to the forecast for dividends announced most recently:

No

(Note) Breakdown of the 3rd quarter dividend for the fiscal year ending March 31, 2023 :

Commemorative dividend

-

yen

Special dividend

-

yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

43,600

1.4

7,470

(10.9)

7,530

(11.5)

5,800

(6.7)

156.91

(Note) Revision to the financial results forecast announced most recently:

No

* Notes:

(1) Changes in significant subsidiaries during the nine months ended December 31, 2022

(changes in specified subsidiaries resulting in changes in scope of consolidation):

No

New

-

(Company name:

)

Exclusion:

-

(Company name:

)

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:

Yes

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2022:	43,541,438	shares
March 31, 2022:	43,541,438	shares
2) Total number of treasury shares at the end of the period:
December 31, 2022:	6,576,905	shares
March 31, 2022:	6,576,861	shares

3) Average number of shares during the period:
Nine months ended December 31, 2022:	36,964,574	shares
Nine months ended December 31, 2021:	36,952,333	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

						(Million yen)
					As of March 31,2022	As of December 31,2022
Assets
	Current assets
		Cash and deposits		16,121	16,708
		Notes and accounts receivable - trade, and contract	11,956	13,349
		assets
		Securities		-	3,013
		Merchandise and finished goods	4,673	4,646
		Work in process		1,736	1,764
		Raw materials and supplies	1,821	1,858
		Other		733	1,110
		Allowance for doubtful accounts	(4)	(5)
		Total current assets		37,039	42,445
	Non-current assets
		Property, plant and equipment
		Buildings and structures	20,090	25,222
			Accumulated depreciation		(12,343)	(12,893)
			Buildings and structures, net	7,747	12,328
		Machinery, equipment and vehicles		6,936	7,122
			Accumulated depreciation	(5,434)	(5,706)
			Machinery, equipment and vehicles, net		1,501	1,416
		Tools, furniture and fixtures		4,562	4,788
			Accumulated depreciation		(3,874)	(3,957)
			Tools, furniture and fixtures, net	688	830
		Land		1,931	1,931
		Leased assets	299	347
			Accumulated depreciation		(195)	(156)
			Leased assets, net		103	191
		Construction in progress		3,302	206
		Total property, plant and equipment	15,275	16,905
		Intangible assets		1,350	1,117
		Investments and other assets
		Long-term time deposits		1,900	3,000
		Other	6,961	4,097
		Allowance for doubtful accounts		(14)	(34)
		Total investments and other assets	8,847	7,063
		Total non-current assets		25,473	25,086
	Total assets	62,512	67,531

				(Million yen)
			As of March 31,2022	As of December 31,2022
Liabilities
	Current liabilities
		Notes and accounts payable - trade	4,495	4,699
		Electronically recorded obligations - operating	2,961	3,163
		Income taxes payable	1,305	818
		Provision for bonuses	776	379
		Other	2,994	5,013
		Total current liabilities	12,533	14,073
	Non-current liabilities
		Bonds payable	3,000	3,000
		Asset retirement obligations	34	34
		Other	1,141	1,280
		Total non-current liabilities	4,175	4,314
	Total liabilities	16,708	18,388
Net assets
	Shareholders' equity
		Share capital	6,897	6,897
		Capital surplus	8,000	8,000
		Retained earnings	33,162	36,490
		Treasury shares	(3,126)	(3,126)
		Total shareholders' equity	44,934	48,263
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	33	25
		securities
		Foreign currency translation adjustment	258	244
		Remeasurements of defined benefit plans	259	246
		Total accumulated other comprehensive income	551	515
	Share acquisition rights	316	364
	Total net assets	45,803	49,143
Total liabilities and net assets	62,512	67,531

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

			(Million yen)
		For the nine months	For the nine months
		ended December 31,2021	ended December 31,2022
Net sales	31,831	33,860
Cost of sales	16,772	17,312
Gross profit	15,058	16,547
Selling, general and administrative expenses	8,415	9,548
Operating profit	6,643	6,999
Non-operating income
Interest income		14	13
Dividend income	2	3
Rental income		13	13
Compensation income for damage	-	38
Compensation income		11	6
Outsourcing service income	31	9
Subsidy income		17	10
Other	36	34
Total non-operating income		127	128
Non-operating expenses
Interest expenses		4	11
Compensation expenses	-	6
Bond issuance costs		22	-
Other	2	2
Total non-operating expenses		29	20
Ordinary profit	6,740	7,107
Extraordinary income
Gain on sale of non-current assets	1	-
Gain on sale of investment securities		-	56
Total extraordinary income		1	56
Extraordinary losses
Loss on sale and retirement of non-current assets	23	6
Total extraordinary losses		23	6
Profit before income taxes	6,718	7,157
Income taxes	1,682	1,795
Profit	5,036	5,361
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent	5,036	5,361