Nippon Chemiphar : Summary of consolidated financial results for the third quarter of FY2022.

Summary of Consolidated Financial Results for the

Third Quarter of Fiscal Year 2022 (Japanese GAAP)

		January 31, 2023
Company name:	Nippon Chemiphar Co., Ltd.	Listing: Tokyo Stock Exchange
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 dividend payout:	-
Supplementary documents for quarterly financial results: Yes
Quarterly financial results briefing:	None

*Amounts less than one million yen are rounded down

1. Consolidated Financial Results for the Third Quarter of FY2022 (from April 1, 2022 to December 31, 2022)

(1) Business Results							(Percentages represent year-on-year changes.)
											Profit attributable to
		Net sales		Operating profit	Ordinary profit	owners of parent
Nine months ended		Million yen		%	Million yen	%	Million yen		%	Million yen	%
December 31, 2022		24,015		(2.9)	192	(82.5)	549		(52.3)	684	(28.1)
December 31, 2021		24,727		-	1,099		-	1,152		-	952	-
(Note) Comprehensive income:		Nine Months ended December 31, 2022: 852 million yen (down 8.7%)
		Nine Months ended December 31, 2021: 933 million yen (- %)
		Earnings per	Diluted earnings
		share		per share
Nine months ended		Yen		Yen
December 31, 2022	189.62		-
December 31, 2021	264.15		-

(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 nine months ended December 31, 2021 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
December 31, 2022		50,035			19,171		38.3	5,307.03
March 31, 2022		49,453			18,501		37.4	5,119.99
(Reference) Equity:	As of December 31,	2022: 19,154 million yen	As of March 31, 2022: 18,484 million yen
2. Dividends
		Dividend per share
					End of fiscal
	End of Q1	End of Q2	End of Q3	year	Annual
Year ended	Yen	Yen	Yen	Yen	Yen
-	0.00		-	50.00		50.00
March 31, 2022
Year ending	-	0.00		-
March 31, 2023
Year ending
March 31, 2023 (forecast)					50.00		50.00

(Note) Revision to the forecast for dividends announced most recently: None

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages represent year-on-year changes.)

							Profit attributable to
	Net sales		Operating profit	Ordinary profit	owners of parent	Earnings per share
Full-year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
32,500	(0.0)	300	(63.7)	500	(51.1)	550	(21.5)	152.38
(Note) Revision to the financial results forecast announced most recently: Yes

* Notes

1. Changes in significant subsidiaries during the period (changes in specific subsidiaries accompanied by a change in the scope of consolidation): No
2. Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies and changes or restatement of accounting estimates

(i)	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

1. Number of shares outstanding (common stock)
2. 1. Number of shares outstanding at the end of the period (including treasury shares)

As of December 31, 2022:	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 December 31, 2022:	652,241 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)
Nine months ended December 31, 2022: 3,609,494 shares	Nine months ended December 31, 2021: 3,605,280 shares

4. Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

			(Millions of yen)
	FY2021		Q3 of FY2022
	(As of March 31, 2022)	(As of December 31, 2022)
Assets
Current assets
Cash and deposits	11,645	12,034
-	8,100	7,709
Notes and accounts receivable trade, and contract assets
-	4,544	3,823
Electronically recorded monetary claims operating
Merchandise and finished goods	4,942	6,014
Work in process	1,484	1,482
Raw materials and supplies	2,385	2,829
Income taxes refund receivable	-	169
Others		391	558
Total current assets		33,495	34,621
Non-current assets
Property, plant, and equipment
Buildings and structures, net	4,971	4,981
Machinery, equipment, and vehicles, net	1,931	1,803
Tools, furniture and fixtures, net	319	344
Land	4,345	4,344
Leased assets, net	168	162
Construction in progress		112	221
Total property, plant and equipment		11,848	11,858
Intangible assets
Patent rights	17	13
Trademark rights	61	56
Sales rights	666	454
Leased assets	23	51
Software	105	69
Telephone subscription rights		9	9
Total intangible assets		884	654
Investments and other assets
Investment securities	1,810	1,357
Long-term prepaid expenses	359	462
Retirement benefit assets	309	433
Leasehold and guarantee deposits	68	56
Deferred tax assets	329	236
Others	410	415
Allowance for doubtful accounts		(61)	(61)
Total investments and other assets		3,225	2,901
Total non-current assets		15,957	15,414
Deferred assets
Bond issuance costs		0	0
Total deferred assets		0	0
Total assets		49,453	50,035

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			(Millions of yen)
		FY2021	Q3 of FY2022
		(As of March 31, 2022)	(As of December 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable-trade	2,146	2,322
Electronically recorded obligations-operating	7,420	6,613
Short-term borrowings	400		620
Current portion of bonds payable	200		200
Current portion of long-term borrowings	2,581	2,791
Lease obligations	73		77
Accounts payable-other	107		95
Income taxes payable	292		57
Accrued consumption taxes	200		114
Accrued expenses	1,950	1,588
Deposits received	164		267
Refund liabilities	300		243
Others	913		389
Total current liabilities	16,750	15,381
Non-current liabilities
Long-term borrowings	11,399	12,172
Lease obligations	135		156
Provision for retirement benefits for directors	469		451
Net defined benefit liability	132		141
Deferred tax liabilities for land revaluation	915		915
Others	1,149	1,645
Total non-current liabilities	14,202	15,482
Total liabilities	30,952	30,864
Net assets
Shareholders' equity
Capital stock	4,304	4,304
Capital surplus	1,263	1,263
Retained earnings	13,482	13,981
Treasury shares	(3,110)		3,110)
Total shareholders' equity	15,939	16,438
	ሺ
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	547		322
Revaluation reserve for land	2,070	2,072
Foreign currency translation adjustment	(170)		235
Remeasurements of defined benefit plans	98		85
Total accumulated other comprehensive income	2,545	2,715
Share acquisition rights	17		17
Total net assets	18,501	19,171
Total liabilities and net assets		49,453	50,035

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

			(Millions of yen)
		For the nine months ended	For the nine months ended
		December 31, 2021	December 31, 2022
Net sales	24,727	24,015
Cost of sales	17,642	17,665
Gross profit	7,085	6,349
Selling, general and administrative expenses	5,985	6,156
Operating profit	1,099	192
Non-operating income
Interest income	0	1
Dividend income	27	30
Rental income from non-current assets	4	5
Share of profit of entities accounted for using equity	21	20
method
Foreign exchange gains	155	398
Dividend income of insurance	2	1
Others	16	8
Total non-operating income	226	465
Non-operating expenses
Interest expenses	93	97
Commission expense	5	5
Cost for idle operation	66	-
Others	8	6
Total non-operating expenses	174	108
Ordinary profit	1,152	549
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	-
Total extraordinary losses	14	-
Profit before income taxes	1,279	971
Income taxes-current	434	124
Income taxes-deferred	(107)	162
Total income taxes	326	286
Profit	952	684
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent		952	684

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