VALQUA : posted summary of its 1st Quarter, FY ended March 2022 results.

July 28, 2021

Summary of Consolidated Financial Results

for the First Quarter of the Fiscal Year Ending March 31, 2022

VALQUA, LTD. (7995)

English translation from the original Japanese-language document

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan)

Consolidated Balance Sheets

						(Millions of yen)
		As of March 31, 2021				As of June 30, 2021
Assets
Current assets
Cash and deposits	8,099		7,429
Notes and accounts receivable - trade	12,086			－
Notes and accounts receivable - trade, and		－		12,421
contract assets
Electronically recorded monetary claims -	2,272		3,281
operating
Merchandise and finished goods	3,384		3,820
Work in process	612		702
Raw materials and supplies	1,214		1,402
Other	2,043		2,305
Allowance for doubtful accounts			14			12
Total current assets		29,698		31,351
-				-
Non-current assets
Property, plant and equipment
Buildings and structures, net	5,834		6,046
Land	4,002		4,005
Other, net		6,657		7,214
Total property, plant and equipment		16,494		17,265
Intangible assets
Other		1,425		1,493
Total intangible assets		1,425		1,493
Investments and other assets
Investment securities	3,204		3,040
Other	1,868		1,921
Allowance for doubtful accounts				0				0
Total investments and other assets		5,072		4,961
	-				-
Total non-current assets		22,993		23,721
Total assets		52,691		55,073

－ 1 －

					(Millions of yen)
		As of March 31, 2021	As of June 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade		5,423			5,823
Short-term borrowings		1,538			1,361
Current portion of long-term borrowings		109			106
Income taxes payable		660			582
Provision for bonuses		397			166
Provision for bonuses for directors (and		31			15
other officers)
Other			2,603			4,009
Total current liabilities		10,764		12,064
Non-current liabilities
Long-term borrowings		2,506			3,263
Retirement benefit liability		483			514
Other			1,663			1,649
Total non-current liabilities			4,653			5,426
Total liabilities		15,417		17,491
Net assets
Shareholders' equity
Share capital	13,957		13,957
Capital surplus		3,980			3,980
Retained earnings	17,968		17,818
Treasury shares			1,571			1,571
Total shareholders' equity		34,335		34,184
-			-
Accumulated other comprehensive income
Valuation difference on available-for-sale		1,583			1,467
securities
Foreign currency translation adjustment		321			160
			- 49
Remeasurements of defined benefit plans					49
Total accumulated other comprehensive		1,311			1,676
income
Non-controlling interests			1,627			1,720
Total net assets		37,274		37,581
Total liabilities and net assets		52,691		55,073

－ 2 －

Consolidated Statements of Income

						(Millions of yen)
		Three months ended				Three months ended
		June 30, 2020				June 30, 2021
Net sales	10,960		12,151
Cost of sales	6,544		7,406
Gross profit	4,415		4,745
Selling, general and administrative expenses	3,537		3,587
Operating profit	878		1,157
Non-operating income
Interest income			0		1
Dividend income		23		20
Rental income from facilities		73		106
Share of profit of entities accounted for using		－		7
equity method
Foreign exchange gains			3		16
Other		34		22
Total non-operating income	135		175
Non-operating expenses
Interest expenses		16		18
Rental expenses on facilities		56		65
Share of loss of entities accounted for using			1		－
equity method
Other			9		9
Total non-operating expenses		84		93
Ordinary profit	928		1,239
Extraordinary income
Gain on sale of non-current assets			1		－
Gain on sale of investment securities	131		－
Total extraordinary income	132		－
Extraordinary losses
Loss on abandonment of non-current assets			3		5
Impairment losses		－	15
Loss on sale of investment securities		30		－
Compensation expenses for health damage		20		－
caused by asbestos
Total extraordinary losses		54		21
Profit before income taxes	1,007		1,218
Income taxes - current	350		418
Income taxes - deferred	-	42		35
Total income taxes	308		453
Profit	699		764
			-
Profit (loss) attributable to non-controlling interests		1		32
Profit attributable to owners of parent		700		732

－ 3 －

Consolidated Statements of Comprehensive Income

						(Millions of yen)
		Three months ended				Three months ended
		June 30, 2020				June 30, 2021
Profit		699		764
Other comprehensive income
Valuation difference on available-for-sale		510		117
securities					-
Foreign currency translation adjustment	-	283		513
Remeasurements of defined benefit plans, net
	46			0
of tax					-
Share of other comprehensive income of			2		1
entities accounted for using equity method
Total other comprehensive income			271		397
	-
Comprehensive income			970		1,161
Comprehensive income attributable to
Comprehensive income attributable to owners		985		1,097
of parent
Comprehensive income attributable to non-		-15		64
controlling interests

－ 4 －

Appendix

1-a. Consolidated Results by Segment

		1Q, FY2021.3	1Q, FY2022.3
		Three Months Ended	Three Months Ended
Seal Products Business	Net Sales	7,916	8,488
Segment Profit	1,130	1,027
High Performance Plastics Products	Net Sales	2,342	2,994
Business	Segment Profit	-218	171
Silicon Wafer Reclaim and	Net Sales	702	668
Other Businesses	Segment Profit	-33	-41
			(Millions of yen)

1-b. Orders Received and Order Backlog by Segment

		1Q, FY2021.3	1Q, FY2022.3
		Three Months Ended	Three Months Ended
Seal Products Business	Orders Received	7,843	8,774
Order Backlog*	3,510	3,970
High Performance Plastics Products	Orders Received	1,957	5,015
Business	Order Backlog*	2,852	5,818
Silicon Wafer Reclaim and	Orders Received	674	716
Other Businesses	Order Backlog*	197	231
Total	Orders Received	10,475	14,506
Order Backlog*	6,560	10,020
(*)Order backlogs are as of the end of the period.			(Millions of yen)

2. Consolidated Net Sales by Region

	1Q, FY2021.3	1Q, FY2022.3
	Three Months Ended	Three Months Ended
Japan	7,780	8,508
Asia (excluding Japan)	2,049	2,411
North America	1,093	1,190
The Others	37	41
		(Millions of yen)

3. Stock and Dividends Information

(1) Number of Shares Issued (First Quarter of the FY2022.3)

	Number of Shares Issued at the End of the Period (including Treasury Shares)			18,688,733
	Number of Treasury Shares at the End of the Period					1,042,491
	The Average Number of Shares Issued during the Period				17,646,333
	(2) Per Share Data
			1Q, FY2021.3	1Q, FY2022.3
			Three Months Ended	Three Months Ended
	Earnings Per Share				39.82		41.49
	(3) Dividends					(Yen per share)
			FY2021.3	FY2022.3
	Interim Dividend				45.00	(Forecast) 50.00
	Year-End Dividend				50.00	(Forecast) 50.00
	Total Dividends for the Year				95.00	(Forecast) 100.00
						(Yen per share)
	4. Earings Forecasts for the FY2022.3
		Net		Operating	Ordinary	Net	Earnings Per
		Sales		Profit	Profit	Profit	Share (Yen)
	Forecast for the FY2022.3	48,500		4,000	4,000	2,600	147.34
							(Millions of yen)

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