Fuso Chemical : Announcement of financial results for the third quarter ended December 31, 2022

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 Nine Months Ended December 31, 2022 (Based on Japanese GAAP)

January 31, 2023

Company name:

FUSO CHEMICAL CO., LTD.

Stock exchange listing:

Tokyo

Stock code:

4368

URL https://fusokk.co.jp

Representative:

Representative Director & President

Shinichi Sugita

Executive Officer,

Inquiries:

Division Manager of Administration Division Hiroyuki Ito

TEL

03-3639-6311

Scheduled date to file Quarterly Securities Report:

February 10, 2023

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

No

Holding of quarterly financial results meeting:

No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)

(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

%

Nine months ended December 31, 2022

52,634

32.7

14,703

43.3

15,392

47.1

11,008

50.2

Nine months ended December 31, 2021

39,656

27.2

10,259

42.7

10,462

51.1

7,330

52.2

Note: Comprehensive income

Nine months ended December 31, 2022

¥10,998 million

[39.3%]

Nine months ended December 31, 2021

¥7,897 million

[61.7%]

Earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended December 31, 2022

312.36

-

Nine months ended December 31, 2021

207.18

-

Reference: Operating profit before depreciation and amortization (Consolidated operating profit + depreciation and amortization)

Nine months ended December 31, 2022

¥17,885 million

Nine months ended December 31, 2021

¥13,490 million

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of December 31, 2022

107,666

84,186

78.2

2,388.71

As of March 31, 2022

92,009

75,303

81.8

2,136.65

Reference: Equity

As of December 31, 2022

¥84,186

million

As of March 31, 2022

¥75,303 million

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, 2022

-

25.00

-

30.00

55.00

Year ending March 31, 2023

-

30.00

-

Year ending March 31, 2023 (Forecast)

30.00

60.00

Note: Revisions to the cash dividend forecast most recently announced: None

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3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

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	68,500	22.8	17,100	13.7	18,100	16.7	12,550	15.2	356.09

Note: Revisions to the financial results forecasts most recently announced: None

Reference: Operating profit before depreciation and amortization (Consolidated operating profit + depreciation and amortization)

		Full year	¥21,750 million	[11.6%]
4. Notes
(1)	Changes in significant subsidiaries during the nine months ended December 31, 2022	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:	Yes
	Note: Simple accounting procedures and accounting procedures specific for the preparation of quarterly consolidated financial statements.
(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:	Yes
	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 December 31, 2022		35,511,000 shares	As of March 31, 2022		35,511,000 shares
	Number of treasury shares at the end of the period
		As of December 31, 2022		267,425 shares	As of March 31, 2022		267,425 shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Nine months ended December 31, 2022	35,243,575 shares	Nine months ended December 31, 2021	35,382,580 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Explanation of proper use of financial results forecast, and other special matters

(Caution concerning forward-looking statements)

The forward-looking statements, including the financial results forecast shown in this document, are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. As such, they do not constitute guarantees by the Company of future performance. Actual performance and other results may also differ materially due to various factors.

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2022	As of December 31, 2022
Assets
Current assets
Cash and deposits	24,236,473	17,492,110
Notes and accounts receivable - trade	14,886,764	16,534,453
Securities	123,756	-
Merchandise and finished goods	7,972,496	10,744,943
Work in process	764,836	582,073
Raw materials and supplies	3,240,909	3,612,904
Other	866,980	1,155,302
Allowance for doubtful accounts	(14,013)	(12,252)
Total current assets	52,078,203	50,109,536
Non-current assets
Property, plant and equipment
Buildings and structures, net	9,651,063	9,483,492
Machinery, equipment and vehicles, net	7,049,478	6,712,037
Land	6,902,935	6,912,664
Construction in progress	11,247,687	30,085,524
Other, net	439,421	616,352
Total property, plant and equipment	35,290,587	53,810,072
Intangible assets	1,904,627	1,470,006
Investments and other assets
Investment securities	1,030,246	635,016
Long-term prepaid expenses	492,355	405,499
Deferred tax assets	910,570	932,807
Retirement benefit asset	121,063	100,653
Other	181,848	202,787
Allowance for doubtful accounts	(0)	(0)
Total investments and other assets	2,736,084	2,276,763
Total non-current assets	39,931,299	57,556,841
Total assets	92,009,502	107,666,378

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			(Thousands of yen)
		As of March 31, 2022	As of December 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	3,039,108	2,910,288
Accounts payable - other	1,883,766	1,429,342
Accounts payable - facilities	4,900,797	13,193,852
Income taxes payable	3,219,784	2,141,978
Provision for bonuses	628,515	418,917
Provision for bonuses for directors (and other officers)	65,600	95,260
Provision for repairs	373,514	257,192
Other	556,315	950,045
Total current liabilities	14,667,402	21,396,878
Non-current liabilities
Deferred tax liabilities	187,187	185,205
Retirement benefit liability	1,555,891	1,599,715
Long-term accounts payable - facilities	182,180	171,101
Asset retirement obligations	8,289	17,924
Other	105,202	108,726
Total non-current liabilities	2,038,751	2,082,674
Total liabilities	16,706,154	23,479,552
Net assets
Shareholders' equity
Share capital	4,334,047	4,334,047
Capital surplus	4,820,722	4,820,722
Retained earnings	64,183,183	73,077,496
Treasury shares	(1,112,561)	(1,112,561)
Total shareholders' equity	72,225,391	81,119,704
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	421,137	179,500
Deferred gains or losses on hedges	25,107	(15,149)
Foreign currency translation adjustment	2,631,711	2,902,769
Total accumulated other comprehensive income	3,077,957	3,067,121
Total net assets	75,303,348	84,186,825
Total liabilities and net assets		92,009,502	107,666,378

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Nine months ended	Nine months ended
		December 31, 2021	December 31, 2022
Net sales	39,656,407	52,634,119
Cost of sales	23,692,532	30,839,798
Gross profit	15,963,874	21,794,320
Selling, general and administrative expenses	5,704,269	7,090,862
Operating profit	10,259,604	14,703,458
Non-operating income
Interest income	12,570	74,414
Dividend income	30,836	25,286
Foreign exchange gains	142,749	562,291
Other	21,595	36,869
Total non-operating income	207,751	698,860
Non-operating expenses
Commission expenses	-	1,769
Depreciation	1,945	2,511
Loss on investments in investment partnerships	2,491	5,163
Other	784	597
Total non-operating expenses	5,221	10,041
Ordinary profit	10,462,134	15,392,277
Extraordinary income
Gain on sale of non-current assets	955	44
Gain on sale of investment securities	89,437	365,113
Gain on sale of membership	272	-
Total extraordinary income	90,665	365,158
Extraordinary losses
Loss on retirement of non-current assets	18,922	21,907
Loss on valuation of investment securities	428	-
Total extraordinary losses	19,351	21,907
Profit before income taxes	10,533,449	15,735,529
Income taxes - current	3,106,896	4,642,724
Income taxes - deferred	95,690	83,877
Total income taxes	3,202,587	4,726,601
Profit	7,330,861	11,008,927
Profit attributable to owners of parent	7,330,861	11,008,927

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