Eiken Chemical : Consolidated Financial Results for the Six Months Ended September 30, 2022

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Six Months Ended September 30, 2022

[Japanese GAAP]

											October 27, 2022
Company name: EIKEN CHEMICAL CO.,LTD.
Stock exchange listing: Tokyo
Code number: 4549
URL: https://www.eiken.co.jp
Representative: Tsugunori Notomi			President & CEO
Contact: Hajime Watari				Senior Vice President & Executive Officer
Phone: [phone]
Scheduled date of filing quarterly securities report: November 10, 2022
Scheduled date of commencing dividend payments: December 01, 2022
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes
						(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 01, 2022 to September 30, 2022)
(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit		Ordinary profit		Profit attributable to
					owners of parent
Six months ended		Million yen		%	Million yen	%		Million yen	%		Million yen	%
September 30, 2022		22,865		7.1	5,656	17.1		5,721	16.8		4,321	17.9
September 30, 2021		21,341		20.4	4,831	77.3		4,897	75.2		3,666	70.4

(Note) Comprehensive income:	Six months ended September 30, 2022:
	Six months ended September 30, 2021:

¥	4,373 million	[	19.0%]
¥	3,673 million	[	67.7%]

	Basic earnings	Diluted earnings per
	per share	share
Six months ended	Yen	Yen
September 30, 2022	116.91	115.98
September 30, 2021	99.23	98.50

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Million yen		Million yen	%	Yen
September 30, 2022	67,895		49,062	71.7	1,317.86
March 31, 2022	62,512		45,803	72.8	1,230.55
(Reference) Equity: As of	September 30, 2022:	¥	48,714 million
As of	March 31, 2022:	¥	45,486 million

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2022

-

20.00

-

31.00

51.00

Fiscal year ending March 31, 2023

-

24.00

Fiscal year ending March 31, 2023

-

24.00

48.00

(Forecast)

(Note) Revision to the forecast for dividends announced most recently:

No

(Note) Breakdown of the 2nd quarter dividend for the fiscal year ending March 31, 2023 :

Commemorative dividend

-

yen

Special dividend

-

yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

43,600

1.4

7,470

(10.9)

7,530

(11.5)

5,800

(6.7)

156.91

(Note) Revision to the financial results forecast announced most recently:

No

* Notes:

(1) Changes in significant subsidiaries during the six months ended September 30, 2022

(changes in specified subsidiaries resulting in changes in scope of consolidation):

No

New

-

(Company name:

)

Exclusion:

-

(Company name:

)

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:

Yes

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

September 30, 2022:	43,541,438	shares
March 31, 2022:	43,541,438	shares
2) Total number of treasury shares at the end of the period:
September 30, 2022:	6,576,861	shares
March 31, 2022:	6,576,861	shares

3) Average number of shares during the period:
Six months ended September 30, 2022:	36,964,577	shares
Six months ended September 30, 2021:	36,946,203	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

					(Million yen)
				As of March 31,2022	As of September 30,2022
Assets
	Current assets
		Cash and deposits	16,121	17,262
		Notes and accounts receivable - trade, and contract	11,956	12,968
		assets
		Merchandise and finished goods	4,673	4,629
		Work in process	1,736	1,739
		Raw materials and supplies	1,821	1,903
		Other	733	1,221
		Allowance for doubtful accounts	(4)	(5)
		Total current assets	37,039	39,720
	Non-current assets
		Property, plant and equipment
		Buildings and structures	20,090	25,013
			Accumulated depreciation	(12,343)	(12,735)
			Buildings and structures, net	7,747	12,277
		Machinery, equipment and vehicles	6,936	7,151
			Accumulated depreciation	(5,434)	(5,643)
			Machinery, equipment and vehicles, net	1,501	1,507
		Tools, furniture and fixtures	4,562	4,728
			Accumulated depreciation	(3,874)	(3,953)
			Tools, furniture and fixtures, net	688	775
		Land	1,931	1,931
		Leased assets	299	370
			Accumulated depreciation	(195)	(170)
			Leased assets, net	103	199
		Construction in progress	3,302	211
		Total property, plant and equipment	15,275	16,903
		Intangible assets	1,350	1,213
		Investments and other assets
		Long-term time deposits	1,900	3,000
		Other	6,961	7,072
		Allowance for doubtful accounts	(14)	(14)
		Total investments and other assets	8,847	10,058
		Total non-current assets	25,473	28,175
	Total assets	62,512	67,895

				(Million yen)
			As of March 31,2022	As of September 30,2022
Liabilities
	Current liabilities
		Notes and accounts payable - trade	4,495	4,540
		Electronically recorded obligations - operating	2,961	3,077
		Income taxes payable	1,305	1,567
		Provision for bonuses	776	761
		Other	2,994	4,572
		Total current liabilities	12,533	14,518
	Non-current liabilities
		Bonds payable	3,000	3,000
		Asset retirement obligations	34	34
		Other	1,141	1,279
		Total non-current liabilities	4,175	4,314
	Total liabilities	16,708	18,832
Net assets
	Shareholders' equity
		Share capital	6,897	6,897
		Capital surplus	8,000	8,000
		Retained earnings	33,162	36,338
		Treasury shares	(3,126)	(3,126)
		Total shareholders' equity	44,934	48,110
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	33	27
		securities
		Foreign currency translation adjustment	258	325
		Remeasurements of defined benefit plans	259	250
		Total accumulated other comprehensive income	551	603
	Share acquisition rights	316	348
	Total net assets	45,803	49,062
Total liabilities and net assets	62,512	67,895

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

			(Million yen)
		For the six months	For the six months
		ended September 30,2021	ended September 30,2022
Net sales	21,341	22,865
Cost of sales	11,085	11,452
Gross profit	10,255	11,412
Selling, general and administrative expenses	5,424	5,755
Operating profit	4,831	5,656
Non-operating income
Interest income		9	9
Dividend income	1	1
Rental income		8	9
Compensation income	5	3
Outsourcing service income		22	9
Subsidy income	-	10
Foreign exchange gains		3	9
Other	16	20
Total non-operating income		68	73
Non-operating expenses
Interest expenses		0	7
Other	1	1
Total non-operating expenses		2	9
Ordinary profit	4,897	5,721
Extraordinary income
Gain on sale of non-current assets	1	-
Gain on sale of investment securities		-	49
Total extraordinary income		1	49
Extraordinary losses
Loss on sale and retirement of non-current assets	7	1
Total extraordinary losses		7	1
Profit before income taxes		4,891	5,770
Income taxes	1,224	1,448
Profit	3,666	4,321
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent	3,666	4,321