Dexerials : Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Consolidated Financial Results for the Three Months Ended June 30, 2023

[Under Japanese GAAP]

Company name: Dexerials Corporation	Listing:	Tokyo Stock Exchange	July 31, 2023
Security code:	4980	URL:	https://www.dexerials.jp/en
Representative: Yoshihisa Shinya, Representative Director and President
Contact:	Shinji Tomita, General Manager, PR&IR Department, Business Management Division	Phone: [phone]
Quarterly Securities Report (Shihanki Hokokusho) filing date:		August 8, 2023
Scheduled date of dividend payment:		‒
Preparation of supplementary briefing material on quarterly financial results: Yes
Investors meeting presentation for quarterly financial results:		Yes (For securities analysts and institutional investors)

(Note) Amounts less than one million yen have been omitted.

1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)

(1) Consolidated operating results (cumulative)

(Percentage indicates year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

June 30, 2023

20,858

(22.1)

4,864

(41.4)

4,665

(35.4)

3,224

(30.8)

June 30, 2022

26,775

31.6

8,303

69.2

7,216

59.9

4,660

57.2

Note: Comprehensive income

For the three months ended June 30, 2023:

¥2,743 million

[(52.1%)]

For the three months ended June 30, 2022:

¥5,723 million

[96.8%]

Note: EBITDA

For the three months ended June 30, 2023:

¥6,534 million

[(34.5%)]

For the three months ended June 30, 2022:

¥9,979 million

[55.3%]

Basic earnings per share

Diluted earnings per share

Three months ended

Yen

Yen

June 30, 2023

55.60

55.35

June 30, 2022

78.05

77.62

(2) Consolidated financial position

Total assets

Net assets

Capital to asset ratio

Net assets per share

As of

Millions of yen

Millions of yen

%

Yen

June 30, 2023

124,688

74,395

59.0

1,267.90

March 31, 2023

126,379

73,774

57.7

1,257.14

Reference: Capital (Shareholders' equity + Accumulated other comprehensive income)

As of June 30, 2023:

¥73,528 million

As of March 31, 2023:

¥72,896 million

2. Dividends

Cash dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Fiscal year

Yen

Yen

Yen

Yen

Yen

Ended March 31, 2023

‒

30.00

‒

35.00

65.00

Ending March 31, 2024

‒

Fiscal year

35.00

‒

40.00

75.00

Ending March 31, 2024 (forecast)

Note: Revisions to dividend forecast published most recently: None

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024) (Percentage indicates year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Fiscal year	100,000	(5.8)	25,000	(22.6)	26,300	(12.8)	18,000	(13.0)	305.09

Note: Revisions to earnings forecast published most recently: None

For more information on the consolidated financial results for the three months ended June 30, 2023, please refer to the supplementary briefing material on quarterly financial results, Quarterly Securities Report for the first quarter to be filed on August 8, 2023, and other materials, which you can find on our website at https://www.dexerials.jp/en/ir/library/index.html.

[Notes]

1. Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Application of accounting methods used specifically for preparing the quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements

(a) Changes in accounting policies due to the application of new or revised accounting standards: None

(b) Changes in accounting policies due to reasons other than above (a):	None
(c) Changes in accounting estimates:	None
(d) Restatements of prior period financial statements:	None

(4) Number of shares of common stock issued
(a) Number of shares issued (including treasury shares)
As of June 30, 2023:	61,029,400 shares	As of March 31, 2023:	64,575,000 shares
(b) Number of treasury shares
As of June 30, 2023:	3,037,721 shares	As of March 31, 2023:	6,589,029 shares
(c) Average number of shares of common stock during the period
Three months ended June 30, 2023:	57,987,315 shares	Three months ended June 30, 2022:	59,702,350 shares

Notes: 1. The number of shares issued as of June 30, 2023 has decreased by 3,545,600 shares as the number of shares issued increased by 5,000 shares upon the exercise of stock options but decreased by 3,550,600 shares upon the retirement of treasury shares during the three months ended June 30, 2023.

• 1. As the Company has introduced a stock compensation plan which delivers shares with restrictions on transfer, the Company's treasury shares held mainly for the purpose of allotting them as restricted shares are included in the number of treasury shares at the end of the period (293,800 shares as of June 30, 2023 and 293,800 shares as of June 30, 2022).
  2. As the Company has introduced an Employee Stock Ownership Plan ("J-ESOP") and a Board Benefit Trust (BBT), the number of shares of the Company held by the trust account is included in the number of treasury shares as of the end of the period. In addition, the number of shares of the Company held by the Trust (an average of 5,105,983 shares for the three months ended June 30, 2023 and an average of 4,805,797 shares for the three months ended June 30, 2022) was included in the number of treasury shares to be deducted in the calculation of the average number of shares of common stock during the period.
• This quarterly consolidated financial results report is not subject to a quarterly review by certified public accountants or an audit firm.
• [Proper use of earnings forecast, and other special notes]

(Disclaimer with respect to earnings and other forecasts)

The forward-looking statements including results forecasts contained in this document are based on information currently available to the Company and certain assumptions that the Company deems reasonable. Accordingly, the Company does not intend to promise their achievement. Actual results may differ from these forecasts and forward-looking statements due to various factors.

Contents for Attached Materials
1. Quarterly Consolidated Financial Statements and Notes	P. 2
(1)	Quarterly consolidated balance sheet	P. 2
(2)	Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income	P. 4
	Quarterly consolidated statement of income
	For the three months ended June 30, 2023	P. 4
	Quarterly consolidated statement of comprehensive income
	For the three months ended June 30, 2023	P. 5
(3)	Notes to quarterly consolidated financial statements	P. 6
	(Going concern assumption)	P. 6
	(Significant changes in shareholders' equity)	P. 6
	(Supplemental information)	P. 6
	(Segment information)	P. 7
	(Significant subsequent events)	P. 8

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1. Quarterly Consolidated Financial Statements and Notes

(1) Quarterly consolidated balance sheet

			(Millions of yen)
		Previous fiscal year	Current quarter
		(As of March 31, 2023)	(As of June 30, 2023)
	Assets
	Current assets:
	Cash and deposits	29,286	28,617
	Notes and accounts receivable - trade	13,126	14,214
	Electronically recorded monetary claims - operating	342	329
	Merchandise and finished goods	4,111	4,175
	Work in process	2,883	3,115
	Raw materials and supplies	4,358	4,882
	Other	5,133	2,364
	Allowance for doubtful accounts	(2)	(3)
	Total current assets	59,238	57,696
	Non-current assets:
	Property, plant and equipment
	Buildings and structures	27,709	27,730
	Accumulated depreciation	(13,976)	(14,121)
	Buildings and structures, net	13,732	13,608
	Machinery, equipment and vehicles	40,475	40,773
	Accumulated depreciation	(33,308)	(33,788)
	Machinery, equipment and vehicles, net	7,167	6,985
	Land	2,524	2,524
	Construction in progress	6,646	7,196
	Other	8,672	8,701
	Accumulated depreciation	(6,458)	(6,451)
	Other, net	2,214	2,249
	Total property, plant and equipment	32,284	32,564
	Intangible assets:
	Goodwill	21,444	20,873
	Patent right	695	656
	Customer-related intangible assets	2,884	2,839
	Other	2,295	2,390
	Total intangible assets	27,320	26,760
	Investments and other assets:
	Shares of subsidiaries and associates	117	122
	Retirement benefit asset	3,242	3,281
	Deferred tax assets	2,389	2,431
	Other	1,799	1,846
	Allowance for doubtful accounts	(13)	(14)
	Total investments and other assets	7,535	7,667
	Total non-current assets	67,141	66,992
	Total assets	126,379	124,688

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			(Millions of yen)
		Previous fiscal year	Current quarter
		(As of March 31, 2023)	(As of June 30, 2023)
	Liabilities
	Current liabilities:
	Notes and accounts payable - trade	5,972	6,844
	Electronically recorded obligations - operating	2,569	2,280
	Short-term borrowings	2,000	2,000
	Current portion of long-term borrowings	6,560	6,561
	Accounts payable - other	7,817	6,145
	Accrued expenses	856	1,212
	Income taxes payable	4,705	962
	Provision for bonuses	2,558	1,058
	Other	2,034	6,864
	Total current liabilities	35,074	33,929
	Non-current liabilities
	Long-term borrowings	11,152	9,955
	Retirement benefit liability	4,273	4,184
	Deferred tax liabilities	1,323	1,395
	Other	780	827
	Total non-current liabilities	17,530	16,362
	Total liabilities	52,605	50,292
	Net assets
	Shareholders' equity:
	Share capital	16,194	16,196
	Capital surplus	16,147	16,148
	Retained earnings	52,663	42,380
	Treasury shares	(15,908)	(4,525)
	Total shareholders' equity	69,097	70,199
	Accumulated other comprehensive income:
	Deferred gains or losses on hedges	(26)	(1,538)
	Foreign currency translation adjustment	3,278	4,338
	Remeasurements of defined benefit plans	547	527
	Total accumulated other comprehensive income	3,799	3,328
	Non-controlling interests	878	867
	Total net assets	73,774	74,395
	Total liabilities and net assets	126,379	124,688

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