Trusco Nakayama : Financial statements 2022 (JAN 1 2022-DEC 31 2022) Cnsolidated

Trusco Nakayama Corporation

Financial Statements

Consolidated Balance Sheet

December 31, 2022

										Thousands of									Thousands of
		Millions of Yen					U.S. Dollars*			Millions of Yen	U.S. Dollars*
ASSETS	2022				2021			2022			LIABILITIES AND EQUITY	2022			2021			2022
CURRENT ASSETS:													CURRENT LIABILITIES:
Cash and cash equivalents	¥ 39,401	¥	41,469		$ 296,916		Accounts payable - trade	¥ 18,866	¥ 16,354		$ 142,172
Accounts receivable - trade	31,558				28,776		237,814		Short-term loans borrowings	10,000	17,000		75,358
Electronically-recorded monetary claims	2,759				2,133		20,789		Current portion of long-term borrowings	10,000						75,358
Merchandise	45,293				42,292		341,316		Other payables	3,090	3,126		23,287
Other current assets	657				815		4,960		Income taxes payable	2,515	2,898		18,955
Allowance for doubtful accounts	(1)				(1)		(8)		Provision for bonuses	12	17		92
													Other current liabilities	1,696	2,863		12,772

Total current assets	119,667	115,484	901,787	Total current liabilities
PROPERTY, PLANT AND EQUIPMENT:
Land	38,547	37,896	290,479	LONG-TERM LIABILITIES:
Buildings and structures	77,865	75,659	586,766	Long-term loans borrowings
Machinery, equipment and vehicles	14,448	14,058	108,880	Deposits received for guarantees
Furniture and fixtures	6,158	6,136	46,408	Retirement allowances for directors and the Audit and
Construction in progress	412	227	3,108	Supervisory board members
Total	137,430		133,976		1,035,641	Other long-term liabilities
Accumulated depreciation	(39,966)	(35,782)	(301,169)	Total long-term liabilities

46,179		42,258		347,994
25,000	35,000	188,395
2,781	2,726	20,956
151	151	1,141
95		95		712
28,027	37,972	211,204

Net property, plant and equipment	97,464	98,194	734,472
INVESTMENTS AND OTHER ASSETS:
Investment securities	3,118	2,967	23,499
Software and software in progress	4,373	5,395	32,958
Deferred tax assets	121	141	910
Deferred tax assets on land revaluation	156	156	1,174
Other assets	318	330	2,396
Allowance for doubtful accounts	(9)		(10)		(75)
Total investments and other assets	8,077		8,979		60,862
TOTAL	¥ 225,208		¥ 222,657		$ 1,697,121

EQUITY :
Common stock	5,022	5,022	37,848
Capital surplus	4,711	4,711	35,504
Retained earnings	141,096	132,580	1,063,273
Unrealized gain on available-for-sale securities	467	679	3,512
Land revaluation difference	(353)	(353)	(2,663)
Foreign currency translation adjustment	139	(133)	1,050
Treasury stock	(80)		(79)		(601)
Total equity	151,002		142,427		1,137,923
TOTAL	¥ 225,208		¥ 222,657		$ 1,697,121

• The translations of Japanese yen amounts into U.S. dollar amounts have been made at the rate of ¥132.70 to $1, the approximate rate of exchange at December 31, 2022.
• Accounting Standard for Revenue Recognition has been applied from the beginning of the fiscal year.

This change in accounting policy has been applied retroactively.

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Trusco Nakayama Corporation

Financial Statements

Consolidated Statement of Income

Year Ended December 31, 2022

																Thousands of
				Millions of Yen			U.S. Dollars*
	2022						2021							2022
NET SALES	¥	246,454		¥	226,834				$	1,857,224
COST OF GOODS SOLD				194,293					179,163							1,464,151
Gross profit				52,161					47,671							393,073
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES				37,494					34,673							282,544
Operating income				14,667					12,998							110,529
OTHER INCOME (EXPENSES) :
Interest and dividend income				58					42							435
Rental income from real estate				166					203							1,251
Subsidy income				139					147							1,044
Interest expenses				(88)					(88)							(663)
Rental costs on real estate				(42)					(56)							(315)
Compensation expenses				(30)												(226)
Gain on sales of non-current assets										3,466
Gain on sales of investment securities				194												1,463
Compensation Loss on eviction										(50)
Other - net				196					309							1,477
Other income - net				593					3,973							4,466
INCOME BEFORE INCOME TAXES				15,260					16,971							114,995
INCOME TAXES :
Current				4,519					4,533							34,055
Deferred				114					842							860
Total income taxes				4,633					5,375							34,915
NET INCOME	¥	10,627		¥	11,596				$	80,080
NET INCOME ATTRIBUTABLE TO OWNERS OF PARENT			¥	10,627				¥	11,596						$	80,080
					Yen										U.S. Dollars*
PER SHARE OF COMMON STOCK :
Basic net income				¥ 161.15					¥ 175.86						$ 1.21
Cash dividends applicable to the year				40.00					35.50						0.30

• The translations of Japanese yen amounts into U.S. dollar amounts have been made at the rate of ¥132.70 to $1, the approximate rate of exchange at December 31, 2022.
• Accounting Standard for Revenue Recognition has been applied from the beginning of the fiscal year.

This change in accounting policy has been applied retroactively.

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Trusco Nakayama Corporation

Financial Statements

Consolidated Statement of Changes in Equity

Year Ended December 31, 2022

	Thousands of
	Shares																																					Millions of Yen
	Outstanding														Shareholders' Equity																				Accumulated Other Comprehensive Income
	Number of																																									Unrealized Gain on						Land	Foreign Currency
	Shares of			Common				Capital			Retained			Treasury					Available-for-Sale				Revaluation	Translation						Total
	Common Stock					Stock				Surplus				Earnings					Stock						Securities				Difference		Adjustment						Equity
BALANCE, JANUARY 1, 2021	65,943		¥	5,022							¥	4,711				¥	123,465			¥	(77)			¥	598		¥	(357)				¥	(402)			¥	132,960
Cumulative effects of changes in accounting																											(235)																																									(235)
policies
Restated balance				¥	5,022							¥	4,711							123,230			¥	(77)			¥	598		¥	(357)				¥	(402)			¥	132,725
Net income																											11,596																																									11,596
Cash dividends, ¥34.0 per share																											(2,242)																																									(2,242)
Purchase of treasury stock	(0)																																		(2)																																	(2)
Disposal of treasury stock	0																0																0																																	0
Other																											(4)																										4
Net change in the year																																															81															269								350
BALANCE, DECEMBER 31, 2021	65,943		¥	5,022							¥	4,711				¥	132,580			¥ (79)			¥	679		¥	(353)				¥	(133)			¥	142,427
Cumulative effects of changes in accounting
policies
Restated balance				¥	5,022							¥	4,711				¥	132,580			¥	(79)			¥	679		¥	(353)				¥	(133)			¥	142,427
Net income																											10,627																																									10,627
Cash dividends, ¥32.0 per share																											(2,111)																																									(2,111)
Purchase of treasury stock	(1)																																		(1)																																	(1)
Disposal of treasury stock	0																0																0																																	0
Other
Net change in the year																																															(212)															272								60
BALANCE, DECEMBER 31, 2022		65,942			¥	5,022							¥	4,711					¥ 141,096				¥	(80)				¥	467			¥	(353)							¥ 139				¥	151,002
																																				Thousands of U.S. Dollars*
																		Shareholders' Equity															Accumulated Other Comprehensive Income
																																												Unrealized Gain on						Land	Foreign Currency
							Common				Capital			Retained			Treasury					Available-for-Sale				Revaluation	Translation						Total
								Stock					Surplus				Earnings					Stock						Securities				Difference		Adjustment							Equity
BALANCE, DECEMBER 31, 2021				$ 37,848				$	35,504					$	999,095			$	(595)	$	5,115		$	(2,663)				$	(1,004)			$	1,073,300
Cumulative effects of changes in accounting policies
Restated balance				$ 37,848				$	35,504					$	999,095			$	(595)	$	5,115		$	(2,663)				$	(1,004)			$	1,073,300
Net income																											80,080																																									80,080
Cash dividends, $0.24 per share																											(15,902)																																									(15,902)
Purchase of treasury stock																																				(6)																															(6)
Disposal of treasury stock																		0																	0																															0
Other
Net change in the year																																									(1,603)															2,054								451
BALANCE, DECEMBER 31, 2022					$ 37,848					$	35,504					$	1,063,273				$	(601)		$	3,512			$	(2,663)					$	1,050				$	1,137,923

• The translations of Japanese yen amounts into U.S. dollar amounts have been made at the rate of ¥132.70 to $1, the approximate rate of exchange at December 31, 2022.
• Accounting Standard for Revenue Recognition has been applied from the beginning of the fiscal year. This change in accounting policy has been applied retroactively.
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Trusco Nakayama Corporation

Financial Statements

Consolidated Statement of Cash Flows

Year Ended December 31, 2022

													Thousands of
			Millions of Yen					U.S. Dollars*
	2022			2021			2022
OPERATING ACTIVITIES:
Income before income taxes	¥	15,260		¥	16,971		$	114,995
Adjustments for:
Depreciation and amortization			6,691				6,958					50,420
Increase(Decrease) in allowance for doubtful accounts			(0)				4					(0)
Gain on sales and disposals of property,								(3,466)
plant and equipment
Compensation loss on eviction								50
Changes in assets and liabilities:
Increase in accounts receivable			(3,398)				(3,497)					(25,610)
Increase in merchandise			(2,906)				(1,022)					(21,901)
Increase in accounts payable			2,505				883					18,880
Increase(Decrease) in accrued consumption taxes			(1,216)				2,071					(9,165)
Other - net			148				417					1,122
Income taxes paid			(4,905)				(3,392)					(36,963)
Compensation loss on eviction paid								(50)
Net cash provided by operating activities			12,179				15,927					91,778
INVESTING ACTIVITIES:
Purchase of property, plant and equipment			(3,818)				(7,876)					(28,773)
Proceeds from sales of property, plants and equipment			3				4,947					23
Purchase of intangible assets			(1,115)				(721)					(8,401)
Purchase of investment securities			(500)				(1,000)					(3,768)
Proceeds from sales of investment securities			236										1,781
Other - net			28				53					211
Net cash used in investing activities			(5,166)				(4,597)					(38,927)
FINANCING ACTIVITIES:
Net increase (decrease) in short-term borrowings			(7,000)										(52,751)
Repurchase of treasury stocks			(0)				(2)					(7)
Proceeds from sales of treasury stocks			0				0					0
Dividends paid			(2,111)				(2,241)					(15,898)
Other - net
Net cash used in financing activities			(9,111)				(2,243)					(68,656)
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS			49				19					363
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS			(2,049)				9,106					(15,442)
CASH AND CASH EQUIVALENTS, BEGINNING
OF YEAR			41,450				32,344					312,358
CASH AND CASH EQUIVALENTS, END OF YEAR		¥	39,401			¥	41,450			$	296,916

• The translations of Japanese yen amounts into U.S. dollar amounts have been made at the rate of ¥132.70 to $1, the approximate rate of exchange at December 31, 2022.
• Accounting Standard for Revenue Recognition has been applied from the beginning of the fiscal year.

This change in accounting policy has been applied retroactively.

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