Sakata INX : Consolidated Financial Results for the Six Months Ended June 30, 2023 （150KB）

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Six Months Ended June 30, 2023 [Japanese GAAP]

		August 10, 2023
Company name:	SAKATA INX CORPORATION
Stock exchange listing:	Tokyo
Code number:	4633
URL:	https://www.inx.co.jp/english/
Representative:	Yoshiaki Ueno	Representative Director, President & CEO
Contact:	Daisuke Sugahara	General Manager, Finance & Accounting Div.
Phone:	[phone]

Scheduled date of filing quarterly securities report:	August 10, 2023
Scheduled date of commencing dividend payments:	September 1, 2023
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session:	Yes
	(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended June 30, 2023 (January 1, 2023 to June 30, 2023)
(1) Consolidated Operating Results	(% indicates changes from the previous corresponding period.)

Net sales

Operating income

Ordinary income

Net income attributable

to owners of parent

	Six months ended		Million yen		%		Million yen		%		Million yen		%		Million yen		%
	June 30, 2023		110,151		6.4		5,045		148.7		6,427		156.7		3,812		58.8
	June 30, 2022		103,533		16.8		2,028		(59.8)		2,503		(57.2)		2,400		(40.6)
	(Note) Comprehensive income: Six months ended June 30, 2023:	¥	12,081million	[	(1.9)%]
			Six months ended June 30, 2022:	¥	12,313million	[	45.5%]

Basic earnings

per share

Diluted earnings

per share

Six months ended		Yen
June 30, 2023		76.20
June 30, 2022		42.84

(2) Consolidated Financial Position

Yen

-

-

			Total assets			Net assets		Equity ratio
	As of			Million yen		Million yen		%
	June 30, 2023			192,218		104,169		50.3
	December 31, 2022			177,403		92,952		48.6
	(Note) Equity: As of June 30, 2023:		¥	96,682million
	As of December 31, 2022:	¥	86,272million

2. Dividends

Annual dividends

1st 2nd quarter-endquarter-end

3rd

quarter-end

Year-end

Total

		Yen	Yen	Yen	Yen	Yen
Fiscal year ended December 31, 2022	-	15.00	-	15.00	30.00
Fiscal year ending December 31,	2023	-	15.00
Fiscal year ending December 31,	2023 (Forecast)			-	16.00	31.00

(Note) Revision to the forecast for dividends announced most recently: Yes

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2023 (January 1, 2023 to December 31, 2023)

(% indicates changes from the previous corresponding period.)

Net sales

Operating income Ordinary income

Net income

attributable to

owners of parent

Basic earnings

per share

			Million yen		%		Million yen		%		Million yen		%		Million yen		%		Yen
	Full year		226,000		4.9		10,000		142.4		12,100		143.9		7,900		73.4		157.87

(Note) Revision to the financial results forecast announced most recently: Yes

* Notes:
(1) Changes in significant subsidiaries during the six months ended June 30, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No

1. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement

1)	Changes in accounting policies due to the revision of accounting standards:	No
2)	Changes in accounting policies other than 1) above:	No
3)	Changes in accounting estimates:	No
4)	Retrospective restatement:	No

1. Total number of issued shares (common shares)
   1) Total number of issued shares at the end of the period (including treasury shares):

	June 30, 2023:	54,172,361shares
	December 31, 2022:	54,172,361shares
2)	Total number of treasury shares at the end of the period:
	June 30, 2023:	4,127,468shares
	December 31, 2022:	4,143,541shares
3)	Average number of shares during the period:
	Six months ended June 30, 2023:	50,035,674shares
	Six months ended June 30, 2022:	56,037,577shares

• This consolidated financial results are not subject to quarterly review procedures by Certified Public Accountants or audit firm.
• Explanation of appropriate use of financial forecasts and other special notes
  The above financial forecasts are based on the current available information in the Company and certain reasonable assumption to the Company, and we don't commit to achieve these forecasting numbers. Actual results may differ from these forecasts by a variety of reasons.
• Supplementary information will be disclosed on TDnet on August 10, 2023 and will be uploaded on the Company's website.

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

		(Million yen)
	As of December 31,2022	As of June 30,2023
Assets
Current assets
Cash and deposits	12,120	14,423
Notes and accounts receivable - trade	53,862	57,891
Merchandise and finished goods	13,164	17,233
Work in process	1,514	1,601
Raw materials and supplies	18,669	14,804
Other	2,394	3,116
Allowance for doubtful accounts	(575)	(630)
Total current assets	101,150	108,440
Non-current assets
Property, plant and equipment
Buildings and structures, net	19,858	20,307
Machinery, equipment and vehicles, net	10,391	10,774
Land	9,816	10,045
Leased assets, net	231	251
Construction in progress	3,814	4,329
Other, net	4,273	4,557
Total property, plant and equipment	48,385	50,266
Intangible assets
Goodwill	441	459
Other	1,901	3,506
Total intangible assets	2,342	3,965
Investments and other assets
Investment securities	23,942	27,703
Other	2,592	2,905
Allowance for doubtful accounts	(1,010)	(1,064)
Total investments and other assets	25,524	29,545
Total non-current assets	76,252	83,778
Total assets	177,403	192,218

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		(Million yen)
	As of December 31,2022	As of June 30,2023
Liabilities
Current liabilities
Notes and accounts payable - trade	23,121	23,674
Electronically recorded obligations - operating	14,316	12,393
Short-term borrowings	11,046	11,493
Current portion of long-term borrowings	1,979	3,611
Accrued expenses	4,656	4,843
Income taxes payable	524	538
Provision for bonuses	547	506
Other	2,951	3,162
Total current liabilities	59,143	60,223
Non-current liabilities
Bonds payable	1,000	1,000
Long-term borrowings	11,244	12,527
Retirement benefit liability	4,869	4,956
Asset retirement obligations	74	75
Other	8,119	9,266
Total non-current liabilities	25,307	27,826
Total liabilities	84,450	88,049
Net assets
Shareholders' equity
Capital stock	7,472	7,472
Capital surplus	5,672	5,673
Retained earnings	71,729	74,836
Treasury shares	(4,015)	(3,999)
Total shareholders' equity	80,859	83,982
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,111	1,842
Deferred gains or losses on hedges	(0)	0
Foreign currency translation adjustment	5,010	11,494
Remeasurements of defined benefit plans	(709)	(638)
Total accumulated other comprehensive income	5,412	12,699
Non-controlling interests	6,680	7,486
Total net assets	92,952	104,169
Total liabilities and net assets	177,403	192,218

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

		(Million yen)
	For the six months	For the six months
	ended June 30,2022	ended June 30,2023
Net sales	103,533	110,151
Cost of sales	84,454	86,757
Gross profit	19,078	23,394
Selling, general and administrative expenses	17,050	18,348
Operating income	2,028	5,045
Non-operating income
Interest income	25	70
Dividend income	172	72
Equity in earnings of affiliates	331	866
Foreign exchange gains	-	535
Other	225	308
Total non-operating income	755	1,854
Non-operating expenses
Interest expenses	187	395
Foreign exchange losses	62	-
Other	30	77
Total non-operating expenses	280	472
Ordinary income	2,503	6,427
Extraordinary income
Gain on sales of investment securities	1,442	-
Total extraordinary income	1,442	-
Extraordinary losses
Loss on valuation of shares of subsidiaries and associates	-	280
Total extraordinary losses	-	280
Income before income taxes	3,945	6,147
Income taxes - current	1,183	1,592
Income taxes - deferred	247	296
Total income taxes	1,431	1,888
Net income	2,514	4,258
Net income attributable to non-controlling interests	113	445
Net income attributable to owners of parent	2,400	3,812

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