Nisshin Seifun : Consolidated Financial Results for the Third Quarter of Fiscal 2023

Disclaimer: This document is a translation of the Japanese original. The Japanese original has been disclosed in Japan in accordance with Japanese accounting standards and the Financial Instruments and Exchange Act. This document does not contain or constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on this document. In the case that there is any discrepancy between the Japanese original and this document, the Japanese original is assumed to be correct.

Consolidated Financial Results for the Third Quarter of Fiscal 2023 [Japanese GAAP]

		January 30, 2023
Listed Company Name: Nisshin Seifun Group Inc.	Registered on Tokyo Stock Exchange
Code:	2002
URL:	https://www.nisshin.com
Representative:	Kenji Takihara, Representative Director and President
Contact:	Reiko Adachi, General Manager, Public Communications Department (General Administration Division)
	Tel.: [phone]
Date to submit the Quarterly Securities Report:	February 9, 2023
Date to start distributing dividends:	-
Supplementary materials for these consolidated financial results:	Yes
Results briefing for financial results:	None

(Figures shown are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Third Quarter of Fiscal 2023 (April 1, 2022 to December 31, 2022)

(1) Consolidated Business Results

(The percentages indicate the rates of increase or decrease compared with the same period of the previous fiscal year.)

	Net sales		Operating profit		Ordinary profit		Profit attributable to
				owners of parent
First nine months of	Millions of yen	%	Millions of yen	%		Millions of yen		%	Millions of yen		%
600,005	18.7	25,462	(2.6)		27,040		(8.0)	(22,912)		―
Fiscal 2023
First nine months of	505,310	(1.7)	26,150	17.8		29,384		20.0	18,200		12.0
Fiscal 2022
(Note) Comprehensive	income: First nine months of Fiscal 2023: ¥(20,548) million (―%)
	First nine months of Fiscal 2022: ¥14,821 million (down 50.6%)
	Earnings per share	Fully diluted earnings
	per share
First nine months of		Yen		Yen
	(77.05)		―
Fiscal 2023
First nine months of		61.21		61.21
Fiscal 2022

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Millions of yen	Millions of yen	%
December 31, 2022	695,555	427,821	59.8
March 31, 2022	723,073	460,643	62.1

(Reference) Equity capital: December 31, 2022: ¥415,709 million March 31, 2022: ¥449,174 million

2. Dividends

			Dividend per share
	1Q End	2Q End	3Q End	Year-End	Annual
	Yen	Yen	Yen	Yen	Yen
Fiscal 2022	―	19.00	―	20.00	39.00
Fiscal 2023	―	19.00	―
Fiscal 2023 (forecast)				20.00	39.00

(Note) Revision to the latest forecast of dividends: None

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

(The

percentages indicate

the rates of increase or

decrease

compared with the previous fiscal year.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings

owners of parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Full year

780,000

14.8

33,000

12.1

35,000

7.3

(10,000)

―

(33.63)

(Note) Revision to the latest forecast of financial results: Yes

* Notes

1. Changes in important subsidiaries during the period under review (changes in specified subsidiaries involving a change in the scope of consolidation): None
2. Adoption of special accounting treatment for preparing quarterly consolidated financial statements: Yes

Note: Tax expenses are calculated in accordance with Paragraph 15, "Method for Using the Statutory Effective Tax Rate," of the Practical Guidelines on Tax-Effect Accounting for Preparation of Interim Financial Statements, pursuant to the provision of Paragraph 19 of the Guidance on the Accounting Standard for Quarterly Financial Reporting.

The amount of tax adjustments is included in "Total income taxes."

(3)	Changes in accounting policies, changes in accounting estimates and revisions restated
	1) Changes in accounting policies associated with the revisions of accounting standards, etc.: None
	2) Changes in accounting policies other than the above:	None
	3) Changes in accounting estimates:	None
	4) Revisions restated:	None
(4)	Number of shares issued and outstanding (common stock)

1. Number of shares issued and outstanding (including treasury shares)
2. Number of treasury shares
3. Average number of shares outstanding

As of December	304,357,891	As of March 31,	304,357,891
31, 2022	2022
As of December	6,982,652	As of March 31,	6,960,907
31, 2022	2022
First nine months	297,355,145	First nine months	297,360,848
of Fiscal 2023	of Fiscal 2022

• Quarterly earnings reports are not subject to quarterly review by certified public accountants or independent account auditors.
• Statement regarding the proper use of financial forecasts and other special remarks
• 1. The statements contained in this document are based on various assumptions and do not constitute any guarantee or definite promise that projections of future performance or related business policies will actually be realized.

2. Quarterly Consolidated Financial Statements and Related Notes

(1) Quarterly Consolidated Balance Sheets

(Millions of yen)

	Fiscal 2022	Fiscal 2023
	Third Quarter
	(As of March 31,
	(As of December 31,
	2022)
	2022)
Assets
Current assets
Cash and deposits	69,607	76,615
Notes and accounts receivable - trade, and contract	100,594	113,865
assets
Securities	1,103	-
Inventories	96,596	115,125
Other	13,167	10,894
Allowance for doubtful accounts	(542)	(744)
Total current assets	280,527	315,755
Non-current assets
Property, plant and equipment
Buildings and structures, net	68,843	67,494
Machinery, equipment and vehicles, net	53,018	57,666
Land	46,334	46,513
Right-of-use assets	29,050	17,021
Other, net	22,131	14,984
Total property, plant and equipment	219,379	203,680
Intangible assets
Goodwill	42,385	7,852
Other	26,367	16,559
Total intangible assets	68,752	24,411
Investments and other assets
Investment securities	141,590	133,808
Other	12,948	18,019
Allowance for doubtful accounts	(125)	(120)
Total investments and other assets	154,414	151,707
Total non-current assets	442,546	379,799
Total assets	723,073	695,555

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(Millions of yen)

	Fiscal 2022	Fiscal 2023
	Third Quarter
	(As of March 31,
	(As of December 31,
	2022)
	2022)
Liabilities
Current liabilities
Notes and accounts payable - trade	63,655	65,680
Short-term loans payable	6,789	14,767
Income taxes payable	5,784	3,354
Accrued expenses	24,727	20,806
Other	28,201	36,180
Total current liabilities	129,158	140,790
Non-current liabilities
Bonds	20,000	20,000
Long-term loans payable	13,785	13,725
Lease obligations	38,939	37,441
Deferred tax liabilities	28,360	24,130
Provision for repairs	1,373	1,543
Net defined benefit liability	22,845	22,934
Other	7,968	7,167
Total non-current liabilities	133,272	126,943
Total liabilities	262,430	267,733
Net assets
Shareholders' equity
Capital stock	17,117	17,117
Capital surplus	12,622	12,726
Retained earnings	347,165	312,650
Treasury shares	(10,960)	(10,993)
Total shareholders' equity	365,946	331,501
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	60,585	57,294
Deferred gains or losses on hedges	445	(391)
Foreign currency translation adjustment	23,059	27,977
Remeasurements of defined benefit plans	(862)	(672)
Total accumulated other comprehensive income	83,227	84,208
Subscription rights to shares	95	44
Non-controlling interests	11,373	12,067
Total net assets	460,643	427,821
Total liabilities and net assets	723,073	695,555

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

		(Millions of yen)
	First nine months of	First nine months of
	Fiscal 2022	Fiscal 2023
	(April 1, 2021 to	(April 1, 2022 to
	December 31, 2021)	December 31, 2022)
Net sales	505,310	600,005
Cost of sales	392,079	478,719
Gross profit	113,231	121,285
Selling, general and administrative expenses	87,080	95,823
Operating profit	26,150	25,462
Non-operating income
Interest income	114	181
Dividend income	2,640	2,836
Share of profit of entities accounted for using equity	1,960	774
method
Other	967	747
Total non-operating income	5,682	4,540
Non-operating expenses
Interest expenses	2,192	2,629
Other	256	332
Total non-operating expenses	2,448	2,962
Ordinary profit	29,384	27,040
Extraordinary income
Gain on sale of investment securities	1,645	12,716
Total extraordinary income	1,645	12,716
Extraordinary losses
Loss on retirement of non-current assets	516	347
Impairment losses	-	56,046
Expenses related to change of the corporate name	111	211
Total extraordinary losses	628	56,605
Profit (loss) before income taxes	30,401	(16,848)
Total income taxes	11,168	5,310
Profit (loss)	19,232	(22,159)
Profit attributable to non-controlling interests	1,031	753
Profit (loss) attributable to owners of parent	18,200	(22,912)

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