Pacific Industrial : Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

April 27, 2023

Consolidated Financial Results

For the Fiscal Year Ended March 31, 2023

Company name: PACIFIC INDUSTRIAL CO., LTD.

Stock exchange listings: Tokyo and Nagoya Stock Exchanges

Stock code number: 7250

URL: https://www.pacific-ind.co.jp/

Representative: Tetsushi Ogawa, President

Contact person: Satoshi Watanabe, General Manager of Accounting Dept.

Telephone: [phone]

(Amounts less than one million yen are omitted)

1. Consolidated Financial Results for FY 2022(From April 1, 2022 to March 31, 2023)

(1) Consolidated financial results

(%: changes from the same period of the previous fiscal year)

	Net sales		Operating income	Ordinary income	Net income
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen		%
FY 2022	191,254		16.3	9,298	-13.6	13,209	-9.6	9,301		-5.1
FY 2021	164,472		9.4	10,756	19.9	14,615	30.3	9,803		22.8

(Note) Comprehensive income: FY2022：12,054 million yen ( -40.2%)		FY2021 : 20,159 million yen ( 28.5% )
			Net income		Diluted net income	Return on equity		Return on asset		Operating margin
			per share			per share
			Yen			Yen		%			%		%
	FY 2022	155.33			155.02		7.0			5.2		4.9
	FY 2021	161.86			161.52		8.1			6.2		6.5
(Reference) Share of (profit) loss of entities accounted for using equity method:
			FY2022 : 782 million yen FY2021 : 1,069 million yen
(2) Consolidated financial position
			Total assets			Net assets		Equity ratio				Net assets per share
			Millions	of yen	Millions of yen				%					Yen
	FY 2022	258,058		138,721				53.4				2,309.07
	FY 2021	245,439		130,382				52.8				2,138.23
(Reference) Equity:	FY2022: 137,717 million yen FY2021: 129,534 million yen
(3) Cash flow
			Cash flows			Cash flows		Cash flows					Cash and cash
			from operating activities	from investing activities		from financing activities			equivalent at end of period
			Millions of yen	Millions of yen				Millions of yen			Millions of yen
	FY 2022		24,129		-16,428				-3,509			31,593
	FY 2021		18,317		-17,189				-4,059			26,609

2. Cash Dividends

		Annual dividends per share		Total annual	Payout ratio		Dividend
	At end of	At end of	At end of				on equity
	At year-end	Total		dividends	(consolidate)
	1st quarter	2nd quarter	3rd quarter		(consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
FY2021	―	16.00	―	25.00	41.00	2,502	25.3	2.0
FY2022	―	20.00	―	22.00	42.00	2,523	27.0	1.9
FY2023	―	20.00	―	22.00	42.00			27.4
(forecast)

3. Forecasts of Consolidated Financial Results for FY2023 (From April 1, 2023 to March 31, 2024)

				(%: changes from the	same period of the previous	fiscal year)
	Net sales		Operating income	Ordinary income	Net income			Net income
		for the year attributable to
			per share
									owners of the parent
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen		%		Yen
First half	91,000		0.1	5,000	92.2	6,500		17.3	4,500		8.9		76.65
FY 2023	185,000		-3.3	10,000	7.6	13,000		-1.6	9,000		-3.2		153.48

* Notes

(1) Changes in significant subsidiaries during the period: None

(Changes in specified subsidiaries resulting in changes in scope of consolidation)

Newly included:	―	(company name)
Newly excluded:	―	(company name)

(2) Changes in accounting policies, accounting estimates and restatements

• Changes in accounting policies with revision of accounting standards : None
  ② Changes other than ① : None
  ③ Changes in accounting estimates : None
  ④ Restatement : None

(3) Number of shares issued and outstanding (common stock)

• Number of shares outstanding at end of period (including treasury stock)

• Number of shares of treasury stock at end of period

• Average number of shares during the year ended March 31

FY2022	61,312,896	shares	FY2021	61,312,896	shares
FY2022	1,670,909	shares	FY2021	732,655	shares
FY2022	59,886,553	shares	FY2021	60,564,126	shares

(Reference) Summary of non-consolidated business results

1. Non-Consolidated Financial Result for FY2022 (From April 1, 2022 to March 31, 2023) (1)Non-consolidatedfinancial results

(%: changes from the same period of the previous fiscal year)

	Net sales		Operating income	Ordinary income	Net income
	Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen		%
FY 2022	82,784		1.5	4,917		-19.3	10,750	-4.3	8,228		-0.5
FY 2021	81,543		-0.3	6,096		19.9	11,237	49.6	8,268		65.8
	Net income	Diluted net income
	per share		per share
			Yen			Yen
FY 2022			136.37			136.11
FY 2021			135.52			135.23

(1)Non-consolidated financial position

		Total assets		Net assets	Equity ratio		Net assets per share
		Millions of yen		Millions of yen		%	Yen
	FY 2022	191,397		93,140		48.6	1,548.37
	FY 2021	183,475		90,800		49.4	1,486.22
(Reference) Equity:	FY2022: 93,043 million yen	FY2021: 90,702 million yen

* Indication regarding status of performance of audit procedures

This summary of financial results is not subject to the audit procedures in accordance with the Financial Instruments and Exchange Act. As of the time of disclosure of this summary of financial results, the audit procedures for consolidated financial statements under the Financial Instruments and Exchange Act have not been completed.

• Explanation about appropriate use of the financial results forecasts, and other noteworthy matters Statements related to the future, including the forecasts of financial results, described in this document are based on information currently available to Pacific industrial and on certain assumptions deemed by Pacific industrial to be rational.

Consolidated Balance Sheets

					(Million Yen)
	FY2021	FY2022		FY2021	FY2022
	(As of Mar.31, 2022)	(As of Mar.31, 2023)		(As of Mar.31, 2022)	(As of Mar.31, 2023)
（Assets）			（Liabilities）
Current Assets	82,351	90,690	Current Liabilities	44,910	52,635
Cash and time deposits	27,014	32,088	Trade notes and accounts payable	13,189	14,394
Notes receivable - trade	1,495	1,544	Electronically recorded obligations - operating	8,095	6,832
Accounts receivable	28,503	29,683	Short-term borrowings	1,015	1,015
Merchandise and finished goods	7,834	9,522	Current portion of long-term borrowings	5,986	6,851
Work in process	6,209	7,414	Accounts payable	4,387	5,285
Raw materials and supplies	6,429	6,185	Accrued expenses	2,536	2,226
Accounts receivable	4,164	3,228	Income taxes payable	3,234	2,040
Other current assets	859	1,196	Consumption taxes payable	491	107
Less: Allowance for doubtful accounts	(159)	(173)	Deposit received	191	334
			Allowance for bonuses	1,671	1,605
Fixed Assets	163,087	167,367	Notes payable - facilities	85	120
			Other current liabilities	4,025	11,822
Property, Plant and Equipment	104,348	111,924
Buildings and structures	30,218	32,658	Noncurrent Liabilities	70,146	66,701
Machinery and vehicles	47,797	46,081
Tools, Furniture, and fixtures	2,140	2,297	Long-term borrowings	55,099	53,350
Land	10,456	10,651	Deferred tax liabilities	11,455	10,042
Lease Asset	1,036	1,311	Provision for directors retirement benefit	160	173
Construction in progress	12,699	18,924	Net defined benefit liabilities	610	553
			Other noncurrent liabilities	2,821	2,580
Intangible Fixed Assets	12,063	11,545
Goodwill	6,751	6,219	Total Liabilities	115,056	119,337
Other	5,312	5,325
Investments and Other Assets	46,675	43,897	（Net assets）
Investments in securities	38,473	36,636	Shareholders' Equity	102,265	107,854
Long-term loans	43	27	Capital stock	7,316	7,316
Deferred tax assets	433	364	Capital surplus	7,683	7,686
Net defined benefit asset	6,791	6,118	Retained earnings	87,470	94,044
Other fixed assets	940	752	Less:Treasury stock at cost	(205)	(1,193)
Less: Allowance for doubtful accounts	(8)	(1)
			Valuation and Translation Adjustment	27,268	29,862
			Valuation difference on available securities	18,284	16,100
			Foreign currency translation adjustments	7,602	13,154
			Remeasurement of defined benefit plan	1,381	608
			Subscription rights to shares	97	97
			Minority Interests	751	905
			Total Net Assets	130,382	138,721
Total Assets	245,439	258,058	Total Liabilities and Net Assets	245,439	258,058

Consolidated Statements of Income

		(Million Yen)
	FY2021	FY2022
	For the Year Ended	For the Year Ended
	Mar.31, 2022	Mar.31, 2023
Net sales	164,472	191,254
Cost of sales	141,002	168,424
Gross profit	23,469	22,829
Selling, general and administrative expenses	12,712	13,531
Operating Income (loss)	10,756	9,298
Non-operating income	4,242	4,231
Interest income	46	103
Dividend income	733	767
Equity in earnings of affiliated companies	1,069	782
Foreign exchange gain	1,192	1,130
Subsidy income	589	59
Gain on sales of investment securities	0	649
Other non-operating income	611	737
Non-operating Expenses	383	320
Interest expense	334	285
Other non-operating expense	49	35
Ordinary income (loss)	14,615	13,209
Extraordinary Losses	810	298
Loss on sales and retirements of fixed assets	810	149
Impairment loss	―	148
Profit (loss) before income taxes and non controlling interests	13,805	12,911
Income taxes	3,937	3,498
Current term net profit (loss)	9,868	9,412
Profit (loss) attributable to non-controlling interests	64	110
Profit (loss) attributable to owners of parent	9,803	9,301