Fuso Chemical : Announcement of financial results for the first quarter ended June 30, 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 Three Months Ended June 30, 2023 (Based on Japanese GAAP)

Company name:	FUSO CHEMICAL CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	4368	URL https://fusokk.co.jp
Representative:	Representative Director & President	Shinichi Sugita
Inquiries:	Senior Executive Officer,	Hiroyuki Ito
Division Manager of Administration Division
Scheduled date to file Quarterly Securities Report:	August 10, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

July 31, 2023

TEL [phone]

(Amounts less than one million yen are rounded down)

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)

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

%

Three months ended June 30, 2023

13,642

(22.2)

3,194

(31.9)

3,727

(30.5)

2,454

(33.0)

Three months ended June 30, 2022

17,544

36.7

4,693

39.2

5,363

58.9

3,662

63.7

Note: Comprehensive income Three months ended June 30, 2023

¥3,266 million

[(28.4)%]

Three months ended June 30, 2022

¥4,563 million

[99.3%]

Earnings per share

Diluted earnings per share

Yen

Yen

Three months ended June 30, 2023

69.63

-

Three months ended June 30, 2022

103.90

-

Reference: Operating profit before depreciation and amortization (Consolidated operating profit + depreciation and amortization)

Three months ended June 30, 2023

¥4,180 million

Three months ended June 30, 2022

¥5,677 million

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of June 30, 2023

124,355

89,606

72.1

2,542.48

As of March 31, 2023

113,528

87,502

77.1

2,482.80

Reference: Equity

As of June 30, 2023

¥89,606 million

As of March 31, 2023

¥87,502 million

2. Cash dividends

Annual dividends per share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2023

-

30.00

-

33.00

63.00

Year ending March 31, 2024

-

Year ending March 31, 2024 (Forecast)

33.00

-

33.00

66.00

Note: Revisions to the cash dividend forecast most recently announced: None

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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
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
33,600	(5.0)	7,100	(25.9)	7,100	(34.0)	4,850	(35.5)	137.61
September 30, 2023
Full year	69,300	1.2	13,800	(27.1)	13,800	(30.1)	9,450	(33.1)	268.13

Note: Revisions to the financial results forecasts most recently announced: None

Reference: Operating profit before depreciation and amortization (Consolidated operating profit + depreciation and amortization)

		First half (cumulative)	¥10,150 million	[(12.7)%] Full year	¥21,700 million	[(6.7)%]
4. Notes
(1)	Changes in significant subsidiaries during the three months ended June 30, 2023	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	Yes
	Note: Simple accounting procedures and accounting procedures specific for the preparation of quarterly consolidated financial statements.
(3)	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
(4)	Number of issued shares (common shares)
	Total number of issued shares at the end of the period (including treasury shares)
		As of June 30, 2023		35,511,000 shares	As of March 31, 2023		35,511,000 shares
	Number of treasury shares at the end of the period
		As of June 30, 2023		267,502 shares	As of March 31, 2023		267,466 shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Three months ended June 30, 2023	35,243,530 shares	Three months ended June 30, 2022	35,243,575 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Explanation of proper use of financial results forecast, and other special matters

(Caution concerning forward-looking statements)

The forward-looking statements, including the financial results forecast shown in this document, are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. As such, they do not constitute guarantees by the Company of future performance. Actual performance and other results may also differ materially due to various factors.

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits	23,412,586	30,392,449
Notes and accounts receivable - trade	14,968,781	13,409,261
Merchandise and finished goods	11,880,482	13,379,074
Work in process	691,534	779,711
Raw materials and supplies	3,468,641	3,918,334
Other	936,534	1,377,678
Allowance for doubtful accounts	(14,513)	(12,473)
Total current assets	55,344,047	63,244,035
Non-current assets
Property, plant and equipment
Buildings and structures, net	9,418,074	10,318,616
Machinery, equipment and vehicles, net	6,240,614	6,748,404
Land	6,913,458	6,924,283
Construction in progress	30,938,084	32,430,321
Other, net	791,270	802,405
Total property, plant and equipment	54,301,501	57,224,030
Intangible assets	1,346,426	1,263,451
Investments and other assets
Investment securities	691,304	776,274
Long-term prepaid expenses	366,419	339,064
Deferred tax assets	1,173,700	1,097,471
Retirement benefit asset	102,262	94,674
Other	203,209	316,756
Allowance for doubtful accounts	(0)	(0)
Total investments and other assets	2,536,896	2,624,240
Total non-current assets	58,184,824	61,111,721
Total assets	113,528,872	124,355,756

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			(Thousands of yen)
		As of March 31, 2023	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	3,294,849	3,511,921
Accounts payable - other	1,983,822	2,144,744
Accounts payable - facilities	13,775,370	4,363,526
Income taxes payable	3,301,849	1,153,123
Provision for bonuses	690,054	347,033
Provision for bonuses for directors (and other officers)	71,800	22,910
Provision for repairs	356,024	280,704
Other	434,899	771,072
Total current liabilities	23,908,669	12,595,035
Non-current liabilities
Long-term borrowings	-	20,000,000
Deferred tax liabilities	191,191	207,601
Retirement benefit liability	1,624,715	1,651,597
Asset retirement obligations	27,974	27,974
Long-term accounts payable - facilities	167,408	163,715
Other	106,088	103,691
Total non-current liabilities	2,117,377	22,154,580
Total liabilities	26,026,047	34,749,616
Net assets
Shareholders' equity
Share capital	4,334,047	4,334,047
Capital surplus	4,820,722	4,820,722
Retained earnings	76,183,899	77,475,030
Treasury shares	(1,112,711)	(1,112,857)
Total shareholders' equity	84,225,957	85,516,943
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	188,739	266,390
Deferred gains or losses on hedges	(3,019)	16,890
Foreign currency translation adjustment	3,091,146	3,805,916
Total accumulated other comprehensive income	3,276,866	4,089,197
Total net assets	87,502,824	89,606,140
Total liabilities and net assets	113,528,872	124,355,756

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Three months ended	Three months ended
		June 30, 2022	June 30, 2023
Net sales	17,544,083	13,642,185
Cost of sales	10,509,230	8,082,998
Gross profit	7,034,852	5,559,186
Selling, general and administrative expenses	2,341,770	2,364,775
Operating profit	4,693,082	3,194,411
Non-operating income
Interest income	6,918	75,139
Dividend income	7,085	6,404
Foreign exchange gains	647,403	485,526
Other	12,615	8,342
Total non-operating income	674,023	575,413
Non-operating expenses
Interest expenses	-	22,587
Commission expenses	1,974	-
Depreciation	898	304
Loss on investments in investment partnerships	953	18,462
Other	-	1,141
Total non-operating expenses	3,826	42,496
Ordinary profit	5,363,279	3,727,328
Extraordinary income
Gain on sale of non-current assets	-	1,693
Gain on sale of investment securities	71,218	12,100
Total extraordinary income	71,218	13,793
Extraordinary losses
Loss on retirement of non-current assets	2,774	37,586
Total extraordinary losses	2,774	37,586
Profit before income taxes	5,431,723	3,703,535
Income taxes - current	1,740,160	1,217,313
Income taxes - deferred	29,501	32,054
Total income taxes	1,769,662	1,249,367
Profit	3,662,061	2,454,167
Profit attributable to owners of parent	3,662,061	2,454,167

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