Chugoku Marine Paints : Consolidated Financial Results for the Fiscal Year Ended March 31,2023

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

	Summary of Consolidated Financial Results
		for the Year Ended March 31, 2023
		(Based on Japanese GAAP)	May 10, 2023
Company name:	CHUGOKU MARINE PAINTS, LTD.
Stock exchange listing:	Tokyo
Stock code:	4617	URL https://www.cmp.co.jp/
Representative:	President		Kenshi Date
Inquiries:	Director, Chief of Administration	Katsunori Kobayashi	TEL [phone]
Headquarter
Scheduled date of ordinary general meeting of shareholders:	June 22, 2023
Scheduled date to file Securities Report:	June 22, 2023
Scheduled date to commence dividend payments:	June 23, 2023
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:		Yes	(for analysts and institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated operating results												Percentages indicate year-on-year changes
	Net sales			Operating profit	Ordinary profit	Profit attributable to
			owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen	%		Millions of yen		%
Year ended March 31, 2023	99,481		18.0	3,887		465.1		4,351	329.8		3,848		-
Year ended March 31, 2022	84,295		2.2	687		(89.4)		1,012	(84.1)			257		(92.2)
	Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			share			owners of				assets			sales
							parent/equity
		Yen			Yen			%						%				%
Year ended March 31, 2023	76.69				-			6.8						4.0				3.9
Year ended March 31, 2022	4.92				-			0.5						1.0				0.8
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio	Net assets per share
	Millions of yen	Millions of yen					%						Yen
As of March 31, 2023	112,747					63,130					51.6				1,174.01
As of March 31, 2022	104,618					60,039					52.9				1,089.33
(3) Consolidated cash flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities		at end of period
	Millions of yen	Millions of yen		Millions of yen		Millions of yen
Year ended March 31, 2023				29					514					(654)					18,214
Year ended March 31, 2022				(238)					155					(6,318)					17,148
2. Cash dividends
					Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
															to net assets
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
	Yen			Yen	Yen		Yen	Yen	Millions of yen		%			%

Year ended March 31, 2022	-	17.00	-	18.00	35.00	1,799	711.4
Year ended March 31, 2023	-	17.00	-	18.00	35.00	1,750	45.6
Year ending March 31, 2024	-	18.00	-	19.00	37.00		40.7
(Forecast)

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3.1

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3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	105,000	5.5	6,900	77.5	7,300	67.8		4,500	16.9	90.81
4. Notes
(1) Changes in significant subsidiaries during the year ended March 31, 2023			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of March 31, 2023	55,000,000	shares	As of March 31, 2022	62,000,000	shares
Number of treasury shares at the end of the period
	As of March 31, 2023	5,446,058	shares	As of March 31, 2022	11,242,693	shares
Average number of shares during the period
	Year ended March 31, 2023	50,186,751	shares	Year ended March 31, 2022	52,290,182	shares

These financial results are not subject to review by certified public accountants or auditing firms. Explanation regarding the appropriate use of forecasts of business results and other special instructions

These forecasts are based on various assumptions made at the date of release of these materials, including the information available at the date of release of these materials and uncertain factors that may affect future results, and the Company makes no representations as to their achievability. Actual results may differ materially from these forecasts as a consequence of various factors.

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	20,096	21,177
Notes and accounts receivable - trade	27,104	31,667
Electronically recorded monetary claims - operating	1,771	2,218
Merchandise and finished goods	11,075	12,864
Work in process	599	630
Raw materials and supplies	8,930	10,781
Other	2,408	2,240
Allowance for doubtful accounts	(492)	(490)
Total current assets	71,495	81,089
Non-current assets
Property, plant and equipment
Buildings and structures	19,115	19,605
Accumulated depreciation	(14,048)	(14,652)
Buildings and structures, net	5,066	4,953
Machinery, equipment and vehicles	17,997	18,632
Accumulated depreciation	(14,685)	(15,294)
Machinery, equipment and vehicles, net	3,312	3,337
Tools, furniture and fixtures	5,016	5,240
Accumulated depreciation	(4,409)	(4,648)
Tools, furniture and fixtures, net	607	592
Land	13,068	13,136
Leased assets	2,411	2,702
Accumulated depreciation	(700)	(974)
Leased assets, net	1,711	1,728
Construction in progress	287	1,039
Total property, plant and equipment	24,054	24,788
Intangible assets	359	332
Investments and other assets
Investment securities	7,731	5,324
Retirement benefit asset	178	275
Deferred tax assets	334	476
Other	1,803	1,864
Allowance for doubtful accounts	(1,339)	(1,402)
Total investments and other assets	8,708	6,537
Total non-current assets	33,123	31,658
Total assets	104,618	112,747

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			(Millions of yen)
		As of March 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	10,333	11,428
Electronically recorded obligations - operating	1,393	1,730
Short-term borrowings	16,995	20,437
Current portion of long-term borrowings	2	1,700
Lease liabilities	184	177
Accounts payable - other	2,242	2,676
Accrued expenses	2,290	2,674
Income taxes payable	415	719
Provision for bonuses	102	140
Provision for product warranties	165	157
Other	568	373
Total current liabilities	34,694	42,216
Non-current liabilities
Long-term borrowings	2,734	1,000
Lease liabilities	581	591
Long-term accounts payable - other	89	16
Deferred tax liabilities	2,007	1,286
Deferred tax liabilities for land revaluation	2,223	2,223
Retirement benefit liability	1,850	1,855
Other	397	427
Total non-current liabilities	9,884	7,401
Total liabilities	44,578	49,617
Net assets
Shareholders' equity
Share capital	11,626	11,626
Capital surplus	1,504	-
Retained earnings	44,244	41,536
Treasury shares	(10,006)	(4,918)
Total shareholders' equity	47,367	48,244
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,123	1,868
Revaluation reserve for land	3,798	3,798
Foreign currency translation adjustment	932	4,131
Remeasurements of defined benefit plans	68	133
Total accumulated other comprehensive income	7,923	9,932
Non-controlling interests	4,748	4,953
Total net assets	60,039	63,130
Total liabilities and net assets	104,618	112,747

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		March 31, 2022	March 31, 2023
Net sales	84,295	99,481
Cost of sales	64,631	74,750
Gross profit	19,664	24,730
Selling, general and administrative expenses	18,976	20,843
Operating profit	687	3,887
Non-operating income
Interest income	84	123
Dividend income	186	346
Royalty income	84	141
Technical advisory fee income	49	53
Foreign exchange gains	68	34
Rental income from real estate	98	99
Other	251	230
Total non-operating income	823	1,030
Non-operating expenses
Interest expenses	361	425
Commission expenses	13	14
Other	124	126
Total non-operating expenses	498	565
Ordinary profit	1,012	4,351
Extraordinary income
Gain on sale of non-current assets	2	6
Gain on sale of investment securities	601	1,145
Total extraordinary income	603	1,151
Extraordinary losses
Loss on sale of non-current assets	0	2
Impairment losses	-	46
Loss related to COVID-19	-	225
Total extraordinary losses	0	274
Profit before income taxes	1,615	5,228
Income taxes - current	788	1,430
Income taxes - deferred	407	(284)
Total income taxes	1,195	1,146
Profit	419	4,082
Profit attributable to non-controlling interests	162	233
Profit attributable to owners of parent	257	3,848

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