Ishihara Chemical : Consolidated Financial Results for the Three Months Ended June 30, 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 Three Months Ended June 30, 2022
	[Japanese GAAP]
	August 01, 2022
Company name:	ISHIHARA CHEMICAL CO.,LTD.
Stock exchange listing: Tokyo
Code number:	4462
URL:	https://www.unicon.co.jp/english/

Representative: Yasuyuki Sakai	President and Representative Director
Contact:	Yasumasa Yamaguchi	Director, General Manager of Administration Department and Administrative Manager
Phone:	[phone]
Scheduled date of filing quarterly securities report:	August 09, 2022
Scheduled date of commencing dividend payments:	-
Availability of supplementary briefing material on quarterly financial results: No
Schedule of quarterly financial results briefing session:	No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (April 01, 2022 to June 30, 2022)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
		Net sales			Operating profit		Ordinary profit	Profit attributable to
					owners of parent
Three months ended		Million yen		%		Million yen			%	Million yen	%	Million yen	%
June 30, 2022		5,125		8.8		660		6.7	741	7.2	513	(3.7)
June 30, 2021		4,710		14.4		619		157.1	691	140.6	533	154.1
(Note) Comprehensive income:	Three months ended June 30, 2022:	¥	423 million	[(1.4) %]
		Three months ended June 30, 2021:	¥	429 million	[(5.8) %]
		Basic earnings	Diluted earnings per
		per share				share
Three months ended				Yen					Yen
June 30, 2022				33.36					-
June 30, 2021				33.18					-

(Note) The Company conducted a 2-for-1 stock split of common stock on October 01, 2021. "Basic earnings per share" are calculated on the assumption that the stock split was implemented at the beginning of the preceding fiscal year.

(2) Consolidated Financial Position

		Total assets		Net assets	Capital adequacy ratio
As of		Million yen	Million yen	%
June 30, 2022			25,695	21,172	82.4
March 31, 2022			25,884	21,494	83.0
(Reference) Equity:	As of June 30, 2022:	¥	21,172 million
	As of March 31, 2022:	¥	21,494 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	-	25.00	-		14.00	39.00
Fiscal year ending March 31, 2023	-
Fiscal year ending March 31, 2023		17.00	-		17.00	34.00
(Forecast)

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

For details on the revision to the forecast for dividends, please refer to the "Notice Concerning Revisions to Dividend Forecast" announced July 28, 2022.

(Note) The Company conducted a 2-for-1 stock split of common stock on October 01, 2021. The actual amounts of dividends before the stock split are described for the end of the second quarter of fiscal year ended March 31, 2022.

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	Basic earnings
		to owners of parent	per share
Six months ended	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
10,000		4.1	1,320	(1.3)	1,360	(4.3)	1,060	(6.7)	67.66
September 30, 2022
Full year	20,600		8.2	2,580	9.5	2,670	6.2	2,100	2.4	134.04
(Note) Revision to the financial results forecast announced most recently: No

* Notes:

1. Changes in significant subsidiaries during the three months ended June 30, 2022: No
2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 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
5. Total number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2022: 16,308,280 shares

March 31, 2022: 16,308,280 shares

2) Total number of treasury shares at the end of the period:

June 30, 2022:	1,063,868	shares
March 31, 2022:	641,868	shares

3) Average number of shares during the period:

Three months ended June 30, 2022: 15,385,078 shares

Three months ended June 30, 2021: 16,066,676 shares

(Note) The Company conducted a 2-for-1 stock split of common stock on October 01, 2021. "Average number of shares during the period" are calculated on the assumption that the stock split was implemented at the beginning of the preceding fiscal year.

*These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants and audit corporations.

*Explanation for the appropriate use of performance forecast and other special notes:

The statements regarding forecast of financial results in this report are based on the information that is available to the Company, as well as certain assumptions that are deemed to be reasonable by management, and they are not meant to be a commitment by the Company. Therefore, there might be cases in which actual results differ materially from forecast values due to various factors. For the suppositions that form the assumptions for earnings forecast and cautions concerning the use thereof, please refer to "1. Qualitative Information on Quarterly Financial Results (2) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information" on page 2 of this report.

ISHIHARA CHEMICAL CO.,LTD.(4462) Consolidated Financial Results for the Three Months Ended June 30, 2022

○Table of Contents for Attached Materials

1.	Qualitative Information on Quarterly Financial Results	2
	(1)	Explanation of Results of Operations	2
	(2)	Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information	2
2.	Quarterly Consolidated Financial Statements and Principal Notes	3
	(1)	Quarterly Consolidated Balance Sheets	3
	(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	5
	(3)	Notes to Quarterly Consolidated Financial Statements	7
		(Notes to Going Concern Assumptions)	7
		(Notes to Significant Changes in the Amount of Shareholders'Equity)	7

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ISHIHARA CHEMICAL CO.,LTD.(4462) Consolidated Financial Results for the Three Months Ended June 30, 2022

1. Qualitative Information on Quarterly Financial Results

(1) Explanation of Results of Operations

For the three months ended June 30, 2022, Japanese economy continues to recover moderately, but the outlook is uncertain due to the novel coronavirus disease (COVID-19), the situation in Ukraine, the impact of soaring crude oil and raw material prices on domestic and overseas economies, and the impact of the weak yen.

Under such circumstances, the group has been working on the development of high value-added products, conducting web conferencing systems and face-to-face sales activities, and striving to expand the market.

As a result, net sales for the three months ended June 30, 2022 were 5,125 million yen (up 8.8% year on year), operating profit was 660 million yen (up 6.7% year on year), ordinary profit was 741 million yen (up 7.2% year on year), and profit attributable to owners of parent was 513 million yen (down 3.7% year on year).

Overview of financial results by segment are as follows.

Sales of Plating chemicals were strong due to the expansion of demand in the electronic component industry due to the spread of 5G-related servers.

In addition, sales of Automated chemical analyzer were strong due to robust capital investment in package boards for data servers, and so on.

As a result, net sales in this segment were 2,759 million yen (up 3.7% year on year).

As for processed functional materials, the semiconductor market was strong, and sales of ceramics and engineering plastics for semiconductor manufacturing equipment and semiconductor inspection equipment increased.

As a result, net sales in this segment were 220 million yen (up 35.6% year on year).

Sales of air conditioner cleaners increased from the previous year due to the model change of some products in April 2022 and the expansion of car dealers handling air conditioner cleaners. In addition, we raised the prices of some products in response to soaring raw material prices.

As a result, net sales in this segment were 909 million yen (up 12.4% year on year).

Sales of Industrial chemicals increased significantly from the previous year, partly due to the expansion of market share due to the strengthening of the supply chain, against the backdrop of rising market conditions such as the recovery of steel demand.

As a result, net sales in this segment were 1,235 million yen (up 14.7% year on year).

(2) Explanation of consolidated earnings forecast and other forward-looking statements

There is no change to the consolidated earnings forecast for the first six months of the fiscal year ending March 31, 2023, nor to the full-year earnings forecast, both of which were announced on May 13, 2022.

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ISHIHARA CHEMICAL CO.,LTD.(4462) Consolidated Financial Results for the Three Months Ended June 30, 2022

2. Quarterly Consolidated Financial Statements and Principal Notes

(1) Quarterly Consolidated Balance Sheets

				(Thousand yen)
			As of March 31,2022	As of June 30,2022
Assets
	Current assets
		Cash and deposits	5,535,879	4,820,262
		Notes and accounts receivable - trade	3,934,083	4,239,773
		Electronically recorded monetary claims -	601,316	767,032
		operating
		Securities	-	100,010
		Merchandise and finished goods	877,418	892,635
		Work in process	197,610	248,351
		Raw materials and supplies	646,296	878,546
		Other	89,381	135,412
		Total current assets	11,881,986	12,082,025
	Non-current assets
		Property, plant and equipment
		Buildings and structures, net	3,125,229	3,124,907
		Other, net	2,444,640	2,462,947
		Total property, plant and equipment	5,569,869	5,587,854
		Intangible assets	81,477	74,468
		Investments and other assets
		Investment securities	7,303,865	6,862,180
		Other	1,052,661	1,094,240
		Allowance for doubtful accounts	(5,250)	(5,250)
		Total investments and other assets	8,351,277	7,951,171
		Total non-current assets	14,002,624	13,613,494
	Total assets	25,884,611	25,695,519
Liabilities
	Current liabilities
		Notes and accounts payable - trade	1,700,805	2,014,687
		Electronically recorded obligations - operating	858,426	849,772
		Income taxes payable	426,645	257,707
		Provision for bonuses	216,716	114,315
		Provision for bonuses for directors (and other	38,500	6,975
		officers)
		Other	472,432	662,943
		Total current liabilities	3,713,527	3,906,400
	Non-current liabilities
		Retirement benefit liability	51,307	51,928
		Other	624,916	565,185
		Total non-current liabilities	676,223	617,114
	Total liabilities	4,389,751	4,523,514

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