Sumitomo Osaka Cement : Summary of Consolidated Financial Results of Sumitomo Osaka Cement Co., Ltd. for the Third Quarter Fiscal Year 2023 Ending March 31, 2023 (JGAAP)

Summary of Consolidated Financial Results of Sumitomo Osaka Cement Co., Ltd.

for the Third Quarter Fiscal Year 2023, Ending March 31, 2023 (JGAAP)

February

9,2023

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

to submitFebruary 10, 2023

Scheduled date to commence

-

the Quarterly Report

dividend payments

Availability of supplementary briefing

：Not

material on quarterly financial results

available

Scheduled date of Quarterly Financial：Not

Results Briefing Session

available

(Figures are rounded down to the nearest million yen)

１．Consolidated Financial Results for the third quarter

(From April 1, 2022 to December 31, 2022)

（１）Consolidated operating results(cumulative)

(％ indicated changes from the previous

corresponding term)

Quarterly net

Net sales

Operating profit

Ordinary profit

profit attributable

to owners of the

parent

Millions of yen

％

Millions of yen

％

Millions of yen

％

Millions of yen

％

2023 the third quarter

150,499

9.9

△7,126

-

△6,417

-

△1,705

-

term

2022 the third quarter

136,988

-

7,498

△34.3

9,980

△17.9

8,292

1.7

term

(Note) Comprehensive

FY ending March △9,572Millions

(-％)

FY ending March 2022

9,891 Millions (

12.4％)

profit

2023 the third

of yen

the third quarter

of yen

quarter

Quarterly net

Quarterly net

profit per share

profit per share

after adjusting

potential share

Yen

Sen

Yen

Sen

FY

ending

March,2023

△49.71

―

the third quarter

FY

ending

March,2022

222.99

―

the third quarter

Accounting Standard for Revenue Recognition" (Corporate Accounting Standard No. 29, March 31, 2020) has been applied from the beginning of the first quarter of the current consolidated accounting period. The year-on- year rate of change in sales for the third quarter of the fiscal year ending March 2022 is not shown because it will have a significant impact on sales.

（２）Consolidated Financial Status

	Total assets		Net assets		Net assets ratio
	Millions of yen		Millions of yen			％
FY ending March,2023	352,129			187,448			52.6
the third quarter term
FY ending March,2022	331,107			203,173			60.7
(Reference) Net 2023 the third quarter 185,322	Millions	FY ending	200,964 Millions
assets			of yen	March		of yen
				2022

： None

： None

： None

２．Dividend Status

				Annual Dividend
	End of 1Q	End of 2Q	End of 3Q		Year-end		Total
	Yen	Sen	Yen Sen	Yen Sen			Yen Sen		Yen Sen
FY ending March,2022		―	60.00		―			60.00		120.00
FY ending March,2023		―		60.00		―
End of March,2023									60.00		120.00
(Forecast)
(Note) Revisions from the most recently published dividend forecast	：None

３．The fiscal year ending March,2023 Consolidated Performance Forecast （From April 1, 2022 to March 31, 2023）

(％ indicates changes from the previous corresponding term)

								Net profit
	Net sales		Operating profit	Ordinary profit	attributable to	Net profit
		owners of the		per share
								parent
	Millions of		％	Millions of	％	Millions of		Millions of			Yen Sen
	yen		yen	yen		yen
				％		％
Full year	207,400		12.6	△5,550	―	△4,600	―	△600		―	△17.49

(Note) Presence or absence of revisions from the most recently announced earnings forecast: None

※ Notes
（ 1 ） Changes in significant subsidiaries during this consolidated	： None
cumulative quarter

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

New －Company	（Name of	Excluded －Company	（Name of
Company）	company）

（２）Adoption of specific accounting treatments to the preparation ：None of quarterly consolidated financial statements

（３）Changes in accounting policies, changes in accounting estimation or restatements ① Changes in accounting policies due to the revision

of accounting standards

② Changes in accounting policies other than ①

③ Changes in accounting estimation

④ Restatements

: None

（4） Numbers of Shares Issued（Common stock）

① Total number of issued shares （including treasury stock）

• Total number of treasury stocks

• Average number of shares during the period（cumulative）

FY ending March,		FY ending March,
2023	34,329,517Shares	2022	37,243,217Shares
3Ｑ
FY ending March,		FY ending March,
2023	75,779Shares	2022	2,464,655Shares
3Ｑ
FY ending March,		FY ending March,
2023	34,307,875Shares	2022m	37,187,903Shares
3Ｑ		3Ｑ

• 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 "1, Qualitative Information on Quarterly Financial Results" and "(3) Qualitative Information on Forecast of Consolidated Financial Results and Other Forward-Looking Information" on page 2 of the Appendix.

• Table of Contents of Appendix

１．Qualitative Information on Quarterly Financial Results	………………………………2
(1)	Qualitative information on consolidated operational results	…………………………2
(2)	Qualitative information on consolidated financial position	……………………………2
(3)	Qualitative information on consolidated financial results
and other forward-looking information	…………………………………………2

２．Notes on Quarterly Consolidated Financial Statements and Principal ……………………3

（1）Quarterly consolidated balance sheet ………………………………………………………… 3

（2）Quarterly consolidated profit and loss calculation and comprehensive profit …… 5

(3)Notes to Quarterly Consolidated Financial Statements ………………………………………7

(Notes to going concern assumption) ……………………………………………………………7

(Notes to significant changes in the amount of shareholders' equity)……………… 7

(Display method changes) ………………………………………………………………………… 7

(Segment information etc.) ………………………………………………………………………8

(Significant Subsequent Events) …………………………………………………………………8

３．Supplementary Information …………………………………………………………………………10

(1) Consolidated segment profit and loss（Period comparison） ………………………………10

1

1．Qualitative Information on Quarterly Financial Results

(1) Qualitative Information on Consolidated Operating Results

During the third quarter of the current fiscal year (April-December, 2022), Although the Japanese economy was affected by rising prices due to the situation in Ukraine and exchange rate trends, the impact of COVID-19 has subsided, and also the government's economic measures were underway, and thus the economy was on a gradual recovery trend.

In the cement industry, private-sector demand was firm due to increased capital investment resulting from the resumption of economic activity. However, public sector demand decreased due to a decline in the execution rate of public works budgets caused by soaring material prices and other factors. As a result, domestic demand for cement fell 1.3% year on year to 28,600 thousand tons. On the other hand, exports decreased by 22.3% year-on-year. As a result, the total sales volume of domestic manufacturers, including exports, was 35,244 thousand tons, down 6.1% year-on-year.

Under these circumstances, the Group has been working on various measures for its business strategy based on the "2020-2022 Note Management Plan," which is scheduled to be fulfilled in the current fiscal year. In the cement-related business (cement, mineral products, and construction materials), we worked to "improve profitability of cement and solidification materials and develop the business base" and "expand related businesses," and in the high-performance products business (optical electronics and new materials), we worked to "secure competitive advantage in existing core products and develop new products. As for environmental measures, we have been implementing "strengthening environmental measures" and "efforts to reduce CO2 emissions.

As a result of the above, net sales for the period totaled 150,499 million yen, up 13,510 million yen year on year, and ordinary loss totaled 6,417 million yen, down 16,397 million yen year on year. Net loss attributable to owners of the parent company was 1,705 million yen, a deterioration of 9,997 million yen year on year.

(2) Qualitative Information on Consolidated Financial Position

Total assets at the end of the third quarter of the current fiscal year were 352,129 million yen, an increase of 21,022 million yen from the end of the previous fiscal year. The main changes were a 4,413 million yen increase in cash and deposit and 16,300 million yen in raw materials and supplies.

Total liabilities amounted to 164,681 million yen, an increase of 36,747 million yen from the end of the previous fiscal year. The main changes were an increase of 11,155 million yen in short-term loans payable and an increase of 11,616 million yen in long-term loans payable.

Net assets were 187,448 million yen, a decrease of 15,725 million yen from the end of the previous fiscal year. The main changes were a decrease of 8,296 million yen in treasury stock (increase in net assets) due to the purchase and cancellation of treasury stock, a decrease of

16,091 million yen in retained earnings, and a decrease of 8,089 million yen in valuation difference on available-for-sale securities.

1. Qualitative Information on Consolidated Financial Forecasts and Other Forward-Looking Statements There are no changes to the consolidated earnings forecast announced on November 9, 2022.

2