Sumitomo Osaka Cement : Financial Results for the Fiscal Year Ending March 31, 2023 (JGAAP) (Consolidated)

Summary of Consolidated Financial Results for the Fiscal Year Ending March 2023

	(JGAAP)			May 11,2023
Company name	Sumitomo Osaka Cement Co., Ltd	Stock Exchange Listing	Tokyo
Stock code	5232	URL https://www.soc.co.jp/
Representative	(Job Title) Managing Director	(Name)	Hirotsune Morohashi
Contact Manager	(Job Title) General Manager	(Name)	Chitaru Imai	(TEL) 03-6370-2725

Scheduled date for the Ordinary General Meeting of Shareholders

Scheduled date of submission of annual securities report

June 28, 2023 Scheduled date to commence June 29, 2023 dividend payments

June 28, 2023

Availability of preparation of

：Available

supplementary explanatory materials for

financial results

Availability to hold financial results：Available

briefings

(Figures are rounded down to the nearest million yen)

１．Consolidated Financial Results for the Fiscal Year ending March, 2023

(From April 1, 2022 to March 31, 2023)

（１）Consolidated operating results

(％ indicated changes from the previous

corresponding term)

Net income

Net sales

Operating income

Ordinary income

attributable to

owners of the

parent

Millions of yen

％

Millions of yen

％

Millions of yen

％

Millions of yen

％

Fiscal year ending

204,705

11.1

△8,555

-

△7,849

-

△5,719

-

March, 2023

Fiscal year ending

184,209

-

6,878

△58.6

9.834

△44.3

9,674

△17.5

March, 2022

(Note) Comprehensive FY ending March, △12,425Millions (-％)

FY ending March,

2022 12,207

Millions ( 17.1％)

profit

2023

of yen

of yen

△

Net imcome

Ratio of

Net income per

per share after

Return on

ordinary

Operating

share

adjusting

equity

income to net

income margin

potential share

assets

Yen Sen

Yen

Sen

%

%

%

FY ending March, 2023

△166.79

―

△3.0

△2.3

△4.2

FY ending March, 2022

262.77

―

4.8

3.0

3.7

(Reference) Equity in earnings of affiliates: The fiscal year ending March, 2023

△127 million yen

The fiscal year ending March, 2022

242 million yen

(Note) "Accounting Standards for Revenue Recognition" (Corporate Accounting Standards No. 29, March 31, 2020), etc. is applied from the beginning of the fiscal year ending March 2022. As this has a significant impact on sales, the percentage change in sales for the fiscal year ending March 31, 2022 is not stated.

（２）Consolidated Financial Status

		Total assets		Net assets	Net assets ratio	Net assets per share
		Millions of yen		Millions of yen		％	Yen Sen
FY ending March, 2023		356,558			184,591		51.2	5,326.24
FY ending March, 2022		331,107			203,173		60.7	5,778.40
(Reference) Net The fiscal year ending 182,438	Millions	FY ending	200,964 Millions
assets	March, 2023	of yen	March, 2022	of yen

： None

（3）Consolidated Cash Flow Status

			Financial Cash	Cash and cash
	Operating cash flow	Investment Cash flow	equivalents at end
	flow
			of period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
FY ending March, 2023	△16,146	△19,818	37.292	14,500
FY ending March, 2022	18,255	△16,062	△7,995	13,085

２．Dividend Status

			Annual Dividend			Total	Payout	Dividend on
								dividend	ratio	equity ratio
	End of 1Q	End of 2Q	End of 3Q		Year-end	Total
		(total)	(Consolidated)	(Consolidated)
	Yen	Sen	Yen Sen	Yen Sen		Yen Sen	Yen Sen	Millions	%	%
		of yen
FY ending March,2022		―	60.00	―		60.00	120.00	4,320	45.7	2.1
FY ending March,2023		―	60.00	―		60.00	120.00	4,113	-	2.2
End of March,2024		―	60.00	―		60.00	`120.00		68.5
(Forecast)

３．The fiscal year ending March,2024 Consolidated Performance Forecast （From April 1, 2023 to March 31, 2024）

(％ indicates changes from the previous corresponding term)

							Net income
	Net sales	Operating income	Ordinary income	attributable to	Net imcome
	owners of the		per share
							parent
2ndQuarter	Millions of	％	Millions of	％	Millions of	％	Millions of		％	Yen Sen
(Cumulative)	yen	13.7	yen	-	yen	-	yen		-	△58.39
108,800	△2,100	△1,700	△2,000
Full year	230,000	12.4	6,100	-	6,500	-	6,000		-	175.17

※ Notes

（ 1 ） Changes in significant subsidiaries during this consolidated cumulative quarter

(Changes in specific subsidiaries involving changes in the scope of consolidation)

（2）Changes in accounting policies, changes in accounting estimation or restatements

①	Changes	in accounting policies due to	the ： None
revision of	accounting standards
②	Changes	in	accounting policies other than ①	： None
③	Changes	in	accounting estimation	： None
④	Restatements	: None
（3）	Numbers of Shares Issued（Common stock）

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

② Number of treasury stock at the end of the period

③ Average number of shares during the period

(Reference) Overview of individual performance

FY ending March,	34,329,517Shares	FY ending March,	37,243,217Shares
2023		2022
FY ending March,	76,673Shares	FY ending March,	2,464,655Shares
2023		2022
FY ending March,	34,295,232Shares	FY ending March,	36,816,557Shares
2023		2022

1. Individual performance of FY ending March, 2023 (from April 1, 2022 to March 31, 2023)

(1) Individual operating results

(% indicates year-on-year change)

Sales

Operating income

Ordinary income

Net income

FY ending

Million yen

%

Million yen

%

Million yen

%

Million yen

%

March, 2023

166,654

13.9

△13,257

-

△12,526

-

△9,538

-

FY ending

146,262

-

2,279

△81.3

5,096

△61.8

7,145

△21.5

March, 2022

Net income

Diluted net income

per share

per share

FY ending

Yen

sen

Yen

sen

March, 2023

△278.13

-

FY ending

194.09

-

March, 2022

(Note) "Accounting Standards for Revenue Recognition" (Corporate Accounting Standards No. 29, March 31, 2020), etc. will be applied starting with models from the fiscal year ending March 2022. Since this will have a significant impact on sales, we have not stated the year-on-year change in sales for the fiscal year ending March 31, 2022.

(2) Individual Financial Status

	Total assets			Net assets	Capital adequacy		Net assets
								ratio		per share
	Million yen		Million yen		%		Yen sen
FY ending	303,883		138,713			45.6		4,049.69
March, 2023
FY ending	282,399		160,913			57.0		4,626.80
March, 2022
(Reference) Net assets FY ending March, 2023 138,713 million yen	FY ending March, 2022 160,913 million yen
2. Individual Earnings forecast for FY ending March, 2024 (from April 1, 2023 to March 31, 2024)
								(% indicates year-on-year change)
	Sales			Ordinary income	Net income	Net income per
												share
Second quarter	Million yen		%	Million yen		%	Million yen	%		Yen sen
(cumulative)	90,400		16.2	△2,300		-	△2,000	-		△58.39
full year	193,900		16.3	3,200		-	4,000	-	116.7

※ The quarterly Financial Reports are outside of the scope of quarterly review by certified public accountants and audit corporations

※ Explanation for the appropriate use of performance forecasts and other special notes:

The statements regarding forecast of financial results in this report are based on the information that is available to the Company at present. Therefore, there might be cases in which actual results differ materially from forecast values due to various factors. For the suppositions that from the assumptions for profit forecast and cautions concerning the user thereof, please refer to page 3 of the Appendix

• Table of Contents of Appendix

１．Overview of operating results, etc. ……………………………………………………………2

(1) Overview of operating results for the current fiscal year …………………………………2

1. Overview of financial results for the current fiscal year ……………………………………3
2. Outlook for next fiscal year ………………………………………………………………………3
3. Basic Policy on Profit Distribution and Dividends for Current and Next Fiscal Years …3 2. Basic Approach to Selecting Accounting Standard …………………………………………………4 3．Notes on Consolidated Financial Statements and Principal ……………………………………5

（1）Consolidated balance sheet ………………………………………………………………………… 5

（2）Consolidated income and loss calculation and comprehensive income …………………… 7

1. Consolidated Statement of Changes in Equity ……………………………………………………8
2. Consolidated Statements of Cash Flows ……………………………………………………………11 (5)Notes to Consolidated Financial Statements ………………………………………………………13

（Notes to going concern assumption） …………………………………………………………13

(Change display method) ………………………………………………………………………………13

(Segment information) …………………………………………………………………………………13

(Information per share) ………………………………………………………………………………17

(Subsequent events matter) …………………………………………………………………………17

３．Supplementary Information …………………………………………………………………………18

(1) Consolidated segment income and loss（Period comparison） ………………………………18

1. Individual financial statements ……………………………………………………………………19 (Individual balance sheet) …………………………………………………………………………19 (Individual income statement) ……………………………………………………………………19 (Individual statements of changes in equity, etc.) …………………………………………20

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1．Overview of operating results, etc.

(1) Overview of operating results for the current fiscal year

In the current fiscal year, the Japanese economy was affected by rising prices due to exchange rate trends, etc., but the impact of the COVID-19 infection was easing, and there were also improvements in overseas economies and the effects of the government's economic measures. As a result, a moderate recovery continued.

In the cement industry, although private sector demand increased due to an increase in private sector capital investment due to redevelopment projects in urban areas, etc., public sector demand decreased due to a decrease in the budget for public works related expenses and a labor shortage. The domestic cement demand decreased by 1.6% from the previous term to 37,280,000 tons. Exports, on the other hand, fell 29.1% year on year. As a result, the total sales volume of domestic manufacturers, including exports, fell 8.0% from the previous fiscal year to 45,402,000 tons.

Under these circumstances, based on the "FY2020-2022Medium-Term Management Plan," which ends in the current fiscal year, the Group has been implementing various measures as its business strategy: in the Cement-related business (Cement, Mineral resources, and Cement-related products), "improving the profitability of cement and solidification materials and developing the business base" and "expanding related businesses," and in the High-performance products business (Optoelectronics, and Advanced materials), "securing the competitive advantage of existing main products and developing new products," "strengthen environmental measures" and "work to reduce CO2 emissions" as environmental measures.

As a result of the above, net sales for the current fiscal year were 204,705 million yen, an increase of 11.1% from the previous fiscal year, due to increased sales in the cement business and the Advanced materials business.

However, profits decreased by 17,683 million yen compared to the previous fiscal year, resulting in an ordinary loss of 7,849 million yen due to decreased profits in the cement business. In addition, although gains on sales of investment securities were recorded, net loss attributable to owners of the parent was 5,719 million yen, a year-on-year deterioration of 15,394 million yen.

An overview by business is as follows.

Cement business

Although the sales volume was lower than the previous term, the domestic selling price was raised in response to the cost increase, resulting in sales of 140,344 million yen, an increase of 13,724 million yen (10.8%) from the previous term. However, due to soaring coal prices and other factors, operating income was 19,542 million yen, a year-on-year deterioration of 17,160 million yen.

Mineral resources business

Net sales increased 1,060 million yen (8.6%) year on year to 13,370 million yen due to increased sales of limestone for overseas and domestic steel markets. Operating income was 2,448 million yen, an increase of 184 million yen (8.1%) from the previous fiscal year.

Cement-related products business

Sales increased by 1,384 million yen (6.7%) year-on-year to 22,107 million yen due to an increase in ground improvement work. However, operating income was 1,511 million yen a decrease of 306 million yen (16.9%) due to a decrease in the sales volume of secondary concrete products and an increase in raw material costs.

Optoelectronics business

Due to a decrease in the sales volume of optical communication parts for the new transmission method, net sales were 2,385 million yen, a decrease of 1,382 million yen (36.7%) from the previous fiscal year. Operating loss was 129 million yen, a deterioration of 228 million yen from the previous fiscal year.

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