Nippon Chemiphar : Summary of Consolidated Financial Results for the Fiscal Year 2022.

Summary of Consolidated Financial Results for the

Fiscal Year 2022 (Japanese GAAP)

Company name:

Nippon Chemiphar Co., Ltd.

Listing: Tokyo Stock Exchange

May 12, 2023

Securities code:

4539

URL: https://www.chemiphar.co.jp/english/

Representative:

Kazushiro Yamaguchi, President & CEO

Contact:

Shinji Nakajima, Corporate Officer and Senior Manager of Accounts & Finance Department

Phone: [phone]

Scheduled date of ordinary general meeting of shareholders: June 21, 2023

Scheduled date of dividend payout:

June 22, 2023

Supplementary documents for annual financial results:

Yes

Annual financial results briefing:

Yes (for institutional investors and securities analysts)

*Amounts less than one million yen are rounded down

1. Consolidated Financial Results for the FY2022 (from April 1, 2022 to March 31, 2023)

(1) Business Results

(Percentages represent year-on-year changes.)

Profit attributable to

Net sales

Operating profit

Ordinary profit

owners of parent

Year ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

March 31, 2023

31,559

(2.9)

(241)

-

58

(94.3)

339

(51.6)

March 31, 2022

32,506

-

825

-

1,022

-

700

-

(Note) Comprehensive income:

Fiscal year ended March 31, 2023: 216 million yen (down 64.7 %)

Fiscal year ended March 31, 2022: 611 million yen (- %)

Ordinary profit to

Earnings per

Diluted earnings

Return on equity

Operating profit

share

per share

total assets

to net sales

Year ended

Yen

Yen

%

%

%

March 31, 2023

94.07

-

1.8

0.1

(0.8)

March 31, 2022

194.33

-

3.8

2.1

2.5

(Reference) Share of profit/loss

of entities accounted

for using equity method:

As of March 31, 2023: 27 million yen

As of March 31, 2022: 27 million yen

(Note) The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc., effective from the beginning of the fiscal year ended March 31, 2022. The figures for the fiscal year ended March 31, 2022 are the figures after the application of the relevant accounting standards and percentages for year-on-year changes are not indicated.

(2) Financial Position

	Total assets		Net assets				Equity ratio	Net assets per share
As of		Million yen		Million yen					%			Yen
March 31, 2023		48,571		18,534					38.1		5,130.65
March 31, 2022		49,453		18,501					37.4		5,119.99
(Reference) Equity:	As of March 31, 2023:	18,517 million yen				As of March 31, 2022: 18,484 million yen
(3) Cash Flows
	Cash flows from	Cash flows from			Cash flows from	Cash and cash
			equivalents at end of
	operating activities	investing activities		financing activities
			period
Year ended		Million yen		Million yen			Million yen			Million yen
March 31, 2023		(916)		(394)					144		10,529
March 31, 2022		1,801				35					(793)		11,645
2. Dividends
		Dividend per share				Dividends				Dividends to
					End of					total	Payout ratio		net assets
	End of Q1	End of Q2	End of Q3	fiscal year		Annual		(Annual)	(Consolidated)		(Consolidated)
Year ended	Yen	Yen		Yen	Yen			Yen		Million yen		%	%
-	0.00		-	50.00		50.00	182			25.7	1.0
March 31, 2022
Year ended	-	0.00		-	50.00		50.00	182			53.2	1.0
March 31, 2023
Year ending	-			-
March 31, 2024 (forecast)	0.00		50.00		50.00					300.8

3. Forecast of Consolidated Financial Results for the FY2023(from April 1, 2023 to March 31, 2024)

							(Percentages represent year-on-year changes.)
							Profit attributable to
	Net sales		Operating profit		Ordinary profit	owners of parent	Earnings per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full-year	32,700	3.6	200	-	100	70.4	60	(82.3)	16.62

* Notes

1. Changes in significant subsidiaries during the period (changes in specific subsidiaries accompanied by a change in the scope of consolidation): No
2. Changes in accounting policies and changes or restatement of accounting estimates
3. 1. Changes in accounting policies accompanying amendments to accounting standards, etc.: No

(ii) Changes in accounting policies other than (i):	No
(iii) Changes in accounting estimates:	No
(iv) Restatement:	No

(3) Number of shares outstanding (common stock)
(i) Number of shares outstanding at the end of the period (including treasury shares)
As of March 31, 2023:	4,261,420 shares	As of March 31, 2022:	4,261,420 shares
(ii) Number of treasury shares at the end of the period
As of March 31, 2023:	652,254 shares	As of March 31, 2022:	651,170 shares
(iii) Average number of outstanding shares during the period (cumulative from the beginning of the period)
Fiscal year ended March 31, 2023:	3,609,412 shares	Fiscal year ended March 31, 2022:	3,606,523 shares

3. Consolidated Financial Statements

(1) Consolidated Balance Sheets

			(Millions of yen)
		FY2021	FY2022
		(As of March 31, 2022)	(As of March 31, 2023)
Assets
Current assets
Cash and deposits	11,645	10,529
Notes and accounts receivable―trade, and contract assets	8,100	7,516
Electronically recorded monetary claims―operating	4,544	3,738
Merchandise and finished goods	4,942	6,468
Work in process	1,484	1,277
Raw materials and supplies	2,385	3,010
Income taxes refund receivable	-	220
Others	391	675
Total current assets	33,495	33,436
Non-current assets
Property, plant, and equipment
Buildings and structures	15,745	15,956
Accumulated depreciation	(10,774)	(11,170)
Buildings and structures, net	4,971	4,786
Machinery, equipment, and vehicles	9,072	9,353
Accumulated depreciation	(7,140)	(7,717)
Machinery, equipment, and vehicles, net	1,931	1,636
Tools, furniture and fixtures	2,519	2,755
Accumulated depreciation	(2,200)	(2,376)
Tools, furniture and fixtures, net	319	379
Land	4,345	4,344
Leased assets	347	376
Accumulated depreciation	(179)	(205)
Leased assets, net	168	170
Construction in progress	112	200
Total property, plant and equipment	11,848	11,518
Intangible assets
Patent rights	17	15
Trademark rights	61	54
Sales rights	666	383
Leased assets	23	47
Software	105	59
Telephone subscription rights	9	9
Total intangible assets	884	569
Investments and other assets
Investment securities	1,810	1,385
Long-term prepaid expenses	359	496
Retirement benefit assets	309	401
Leasehold and guarantee deposits	68	57
Deferred tax assets	329	353
Others	410	414
Allowance for doubtful accounts	(61)	(61)
Total investments and other assets	3,225	3,046
Total non-current assets	15,957	15,134
Deferred assets
Bond issuance costs	0	-
Total deferred assets	0	-
Total assets	49,453	48,571
		- 1 -

			(Millions of yen)
		FY2021	FY2022
		(As of March 31, 2022)	(As of March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable-trade	2,146	2,545
Electronically recorded obligations-operating	7,420	6,399
Short-term borrowings	400		392
Current portion of bonds payable	200		-
Current portion of long-term borrowings	2,581	2,650
Lease obligations	73		77
Accounts payable-other	107		84
Income taxes payable	292		81
Accrued consumption taxes	200		91
Accrued expenses	1,950	1,678
Deposits received	164		175
Refund liabilities	300		221
Others	913		369
Total current liabilities	16,750	14,766
Non-current liabilities
Long-term borrowings	11,399	11,950
Lease obligations	135		161
Provision for retirement benefits for directors	469		457
Net defined benefit liability	132		139
Deferred tax liabilities for land revaluation	915		915
Others	1,149	1,645
Total non-current liabilities	14,202	15,270
Total liabilities	30,952	30,037
Net assets
Shareholders' equity
Capital stock	4,304	4,304
Capital surplus	1,263	1,263
Retained earnings	13,482	13,636
Treasury shares	(3,110)		3,110)
Total shareholders' equity	15,939	16,093
	ሺ
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	547		335
Revaluation reserve for land	2,070	2,072
Foreign currency translation adjustment	(170)		(20)
Remeasurements of defined benefit plans	98		35
Total accumulated other comprehensive income	2,545	2,423
Share acquisition rights	17		17
Total net assets	18,501	18,534
Total liabilities and net assets		49,453	48,571

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1. Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income

			(Millions of yen)
		FY2021	FY2022
		(Year ended March 31, 2022)	(Year ended March 31, 2023)
Net sales	32,506	31,559
Cost of sales	23,432	23,374
Gross profit	9,073	8,184
Selling, general and administrative expenses	8,248	8,425
Operating profit (loss)	825	(241)
Non-operating income
Interest income	0	2
Dividend income	29	30
Rental income from non-current assets	6	6
Share of profit of entities accounted for using equity	27	27
method
Foreign exchange gains	355	386
Dividend income of insurance	8	8
Others	21	13
Total non-operating income	449	475
Non-operating expenses
Interest expenses	118	122
Commission expense	31	39
Cost for idle operation	66	-
Others	35	13
Total non-operating expenses	251	175
Ordinary profit	1,022	58
Extraordinary income
Gain on sales of non-current assets	141	10
Gain on sales of investment securities	-	411
Total extraordinary income	141	422
Extraordinary losses
Impairment losses	14	-
Loss on valuation of investment securities	10	-
Loss on valuation of inventories	162	-
Total extraordinary losses	187	-
Profit before income taxes	976	480
Income taxes-current	414	79
Income taxes-deferred	(138)	61
Total income taxes	275	141
Profit	700	339
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent		700	339

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