Nicca Chemical : Summary of Consolidated Financial Results for the Nine Months Ended September 30, 2022 (Based on Japanese GAAP)

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 September 30, 2022 (Based on Japanese GAAP)

				October 27, 2022
Company name:	Nicca Chemical Co., Ltd.
Stock exchange listing:	Tokyo, Nagoya
Stock code:	4463	URL https://www.nicca.co.jp/
Representative:	President and Representative	EMORI Yasumasa
Inquiries:	Director, Member of the Board	SAWASAKI Shoya	TEL [phone]
General manager of Administration Division
Scheduled date to file Quarterly Securities Report:	November 11, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
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 September 30, 2022 (from January 1, 2022 to September 30, 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 September 30, 2022	38,233		-		2,315	-		2,929			-		1,871		-
Nine months ended September 30, 2021	35,909		19.2		2,177	162.9		2,399		132.4		2,308		303.5
	Earnings per share		Diluted earnings per share
			Yen					Yen
Nine months ended September 30, 2022			118.69					-
Nine months ended September 30, 2021			146.60					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%				Yen
As of September 30, 2022		56,503					30,837				50.1		1,793.85
As of December 31, 2021		54,533					27,323				45.9		1,589.37
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 December 31, 2021		-			8.00			-				14.00			22.00
Year ending December 31, 2022		-			11.00			-
Year ending December 31, 2022 (Forecast)													11.00			22.00

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

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	52,000	-	2,900		-	3,500		-	2,200	(15.3)	139.51

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4. Notes

1. Changes in significant subsidiaries during the nine months ended September 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

(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 September 30, 2022	17,710,000	shares	As of December 31, 2021	17,710,000	shares
Number of treasury shares at the end of the period
	As of September 30, 2022	1,928,421	shares	As of December 31, 2021	1,948,421	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended September 30, 2022	15,770,179	shares	Nine months ended September 30, 2021	15,746,384	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2021	As of September 30, 2022
Assets
Current assets
Cash and deposits	7,659	6,918
Notes and accounts receivable - trade	9,618	-
Notes and accounts receivable - trade, and contract assets	-	10,452
Merchandise and finished goods	4,895	5,851
Work in process	669	910
Raw materials and supplies	3,766	4,770
Other	952	1,059
Allowance for doubtful accounts	(0)	(0)
Total current assets	27,562	29,963
Non-current assets
Property, plant and equipment
Buildings and structures, net	13,283	13,459
Machinery, equipment and vehicles, net	3,587	3,173
Land	5,247	5,362
Other, net	1,159	954
Total property, plant and equipment	23,277	22,949
Intangible assets
Other	298	414
Total intangible assets	298	414
Investments and other assets
Other	3,395	3,181
Allowance for doubtful accounts	(0)	(6)
Total investments and other assets	3,394	3,175
Total non-current assets	26,970	26,540
Total assets		54,533	56,503

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			(Millions of yen)
		As of December 31, 2021	As of September 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	6,619	5,896
Short-term borrowings	5,662	5,941
Income taxes payable	570	552
Provision for bonuses	772	498
Provision for bonuses for directors (and other officers)	35	37
Other	3,042	2,902
Total current liabilities	16,702	15,829
Non-current liabilities
Long-term borrowings	6,038	5,237
Retirement benefit liability	3,298	3,385
Provision for share-based compensation	115	152
Other	1,054	1,061
Total non-current liabilities	10,506	9,835
Total liabilities	27,209	25,665
Net assets
Shareholders' equity
Share capital	2,898	2,898
Capital surplus	2,928	2,951
Retained earnings	19,284	20,763
Treasury shares	(1,444)	(1,449)
Total shareholders' equity	23,667	25,163
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	632	476
Foreign currency translation adjustment	1,002	2,881
Remeasurements of defined benefit plans	(251)	(212)
Total accumulated other comprehensive income	1,383	3,145
Non-controlling interests	2,272	2,527
Total net assets	27,323	30,837
Total liabilities and net assets		54,533	56,503

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Nine months ended	Nine months ended
		September 30, 2021	September 30, 2022
Net sales	35,909	38,233
Cost of sales	23,786	25,889
Gross profit	12,122	12,343
Selling, general and administrative expenses	9,945	10,027
Operating profit	2,177	2,315
Non-operating income
Interest income	25	23
Dividend income	18	17
Share of profit of entities accounted for using equity method	10	63
Foreign exchange gains	116	289
Other	199	251
Total non-operating income	370	647
Non-operating expenses
Interest expenses	34	27
Sales discounts	58	-
Other	55	6
Total non-operating expenses	148	33
Ordinary profit	2,399	2,929
Extraordinary income
Gain on sale of non-current assets	599	22
Gain on sale of investment securities	116	-
Subsidy income	-	124
Total extraordinary income	716	146
Extraordinary losses
Loss on retirement of non-current assets	1	1
Loss on sale of non-current assets	4	0
Loss on valuation of investment securities	2	27
Total extraordinary losses	8	28
Profit before income taxes	3,106	3,046
Income taxes	684	1,063
Profit	2,422	1,983
Profit attributable to non-controlling interests	114	111
Profit attributable to owners of parent		2,308	1,871

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