Eiken Chemical : Consolidated Financial Results for the Six Months Ended September 30, 2023

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 Six Months Ended September 30, 2023

[Japanese GAAP]

								October 26, 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: November 10, 2023
Scheduled date of commencing dividend payments: December 1, 2023
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes
					(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023)
(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Six months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
September 30, 2023	20,264		(11.4)	2,148	(62.0)	2,225	(61.1)	1,618	(62.5)
September 30, 2022	22,865		7.1	5,656	17.1	5,721	16.8	4,321	17.9

(Note) Comprehensive income:	Six months ended September 30, 2023:
	Six months ended September 30, 2022:

¥	1,672 million	[	(61.8) %]
¥	4,373 million	[	19.0%]

	Basic earnings	Diluted earnings per
	per share	share
Six months ended	Yen	Yen
September 30, 2023	43.69	43.32
September 30, 2022	116.91	115.98

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Millions of yen		Millions of yen	%	Yen
September 30, 2023	66,765		50,276	74.8	1,345.59
March 31, 2023	66,275		49,535	74.2	1,327.47
(Reference) Equity: As of	September 30, 2023:	¥	49,918 million
As of	March 31, 2023:	¥	49,154 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, 2023		-		24.00	-		27.00	51.00
Fiscal year ending March 31, 2024		-		25.00
Fiscal year ending March 31, 2024					-		26.00	51.00
(Forecast)
(Note) Revision to the forecast for dividends announced most recently:	No
(Note) Breakdown of the 2nd quarter dividend for the fiscal year ending March 31, 2024 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024(April 1, 2023 to March 31, 2024)

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Yen

yen

yen

yen

yen

Full year

42,000

(2.9)

5,380

(27.9)

5,400

(28.7)

4,250

(25.9)

114.56

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

No

* Notes:

(1) Changes in significant subsidiaries during the six months ended September 30, 2023

(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):

September 30, 2023:	43,541,438	shares
March 31, 2023:	43,541,438	shares
2) Number of treasury shares at the end of the period:
September 30, 2023:	6,443,508	shares
March 31, 2023:	6,512,625	shares

3) Average number of shares outstanding during the period:
Six months ended September 30, 2023:	37,057,611	shares
Six months ended September 30, 2022:	36,964,577	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

					(Millions of yen)
				As of March 31, 2023	As of September 30, 2023
Assets
	Current assets
		Cash and deposits	18,317	18,874
		Notes and accounts receivable - trade, and contract	11,122	12,680
		assets
		Merchandise and finished goods	4,739	4,462
		Work in process	1,940	2,014
		Raw materials and supplies	1,733	1,916
		Other	1,370	978
		Allowance for doubtful accounts	(6)	(7)
		Total current assets	39,217	40,920
	Non-current assets
		Property, plant and equipment
		Buildings and structures	25,367	25,509
			Accumulated depreciation	(13,117)	(13,378)
			Buildings and structures, net	12,249	12,130
		Machinery, equipment and vehicles	7,155	7,303
			Accumulated depreciation	(5,765)	(5,864)
			Machinery, equipment and vehicles, net	1,390	1,438
		Tools, furniture and fixtures	5,027	5,096
			Accumulated depreciation	(3,950)	(4,109)
			Tools, furniture and fixtures, net	1,076	987
		Land	1,928	1,928
		Leased assets	329	304
			Accumulated depreciation	(154)	(121)
			Leased assets, net	174	183
		Construction in progress	382	446
		Total property, plant and equipment	17,202	17,115
		Intangible assets	1,054	957
		Investments and other assets
		Long-term time deposits	4,900	3,800
		Other	3,936	4,006
		Allowance for doubtful accounts	(34)	(34)
		Total investments and other assets	8,802	7,772
		Total non-current assets	27,058	25,844
	Total assets	66,275	66,765

				(Millions of yen)
			As of March 31, 2023	As of September 30, 2023
Liabilities
	Current liabilities
		Notes and accounts payable - trade	4,685	4,486
		Electronically recorded obligations - operating	2,933	3,410
		Income taxes payable	827	652
		Provision for bonuses	766	658
		Other	3,230	2,918
		Total current liabilities	12,443	12,126
	Non-current liabilities
		Bonds payable	3,000	3,000
		Asset retirement obligations	34	35
		Other	1,261	1,327
		Total non-current liabilities	4,296	4,362
	Total liabilities	16,740	16,488
Net assets
	Shareholders' equity
		Share capital	6,897	6,897
		Capital surplus	8,076	8,134
		Retained earnings	36,865	37,484
		Treasury shares	(3,095)	(3,063)
		Total shareholders' equity	48,743	49,453
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	28	28
		securities
		Foreign currency translation adjustment	268	328
		Remeasurements of defined benefit plans	115	107
		Total accumulated other comprehensive income	411	464
	Share acquisition rights	380	358
	Total net assets	49,535	50,276
Total liabilities and net assets	66,275	66,765

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

			(Millions of yen)
		For the six months	For the six months
		ended September 30, 2022	ended September 30, 2023
Net sales	22,865	20,264
Cost of sales	11,452	11,625
Gross profit	11,412	8,639
Selling, general and administrative expenses	5,755	6,490
Operating profit	5,656	2,148
Non-operating income
Interest income		9	4
Dividend income	1	2
Rental income		9	10
Compensation income	3	2
Outsourcing service income		9	-
Subsidy income	10	10
Foreign exchange gains		9	38
Other	20	18
Total non-operating income		73	87
Non-operating expenses
Interest expenses		7	8
Other	1	1
Total non-operating expenses		9	10
Ordinary profit	5,721	2,225
Extraordinary income
Gain on sale of non-current assets	-	1
Gain on sale of investment securities		49	-
Total extraordinary income		49	1
Extraordinary losses
Loss on sale and retirement of non-current assets	1	54
Total extraordinary losses		1	54
Profit before income taxes		5,770	2,172
Income taxes	1,448	553
Profit	4,321	1,618
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent	4,321	1,618

Quarterly Consolidated Statements of Comprehensive Income (For the six months)

		(Millions of yen)
	For the six months	For the six months
	ended September 30, 2022	ended September 30, 2023
Profit	4,321	1,618
Other comprehensive income

Valuation difference on available-for-sale securities

Foreign currency translation adjustment

Remeasurements of defined benefit plans, net of tax

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

(5)	0
66	59
(8)	(7)
51	53
4,373	1,672
4,373	1,672
-	-