Nittoseiko : Summary of Consolidated Financial Results for the Six Months Ended June 30, 2022

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 Six Months Ended June 30, 2022 (Based on Japanese GAAP)

August 8, 2022

Company name:

Nittoseiko Co.,Ltd.

Stock exchange listing:

Tokyo

Stock code:

5957

URL

https://www.nittoseiko.co.jp/

Representative:

President

Masami Zaiki

Inquiries:

Director,Accounting & Finance Division

Shinichi Matsumoto

TEL

(0773)42-3111

Scheduled date to file Quarterly Securities Report:

August 10, 2022

Scheduled date to commence dividend payments:

September 8, 2022

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022)

(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

%

Six months ended June 30, 2022

20,890

3.1

1,221

△35.1

1,459

△27.4

833

△32.4

Six months ended June 30, 2021

20,252

27.5

1,881

245.4

2,010

233.0

1,231

273.6

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended June 30, 2022

22.56

-

Six months ended June 30, 2021

33.41

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of June 30, 2022

52,854

34,089

57.4

As of December 31, 2021

50,924

32,702

57.4

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 December 31, 2021

-

7.50

-

8.50

16.00

Year ending December 31, 2022

-

8.00

Year ending December 31, 2022 (Forecast)

-

8.00

16.00

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

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	42,500	4.9	3,400	4.6	3,500	0.3	2,200	0.0	59.54

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(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:	Yes
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, 2022	39,985,017	shares	As of December 31, 2021	39,985,017	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	3,032,301	shares	As of December 31, 2021	3,051,981	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2022	36,934,680	shares	Six months ended June 30, 2021	36,875,211	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	11,415,551	9,612,857
Notes and accounts receivable - trade	8,577,471	9,445,590
Electronically recorded monetary claims - operating	3,506,977	3,368,231
Securities	391,926	140,666
Merchandise and finished goods	3,162,404	4,227,718
Work in process	2,189,604	2,793,033
Raw materials and supplies	2,574,345	2,901,101
Accounts receivable - other	646,769	622,926
Other	187,987	264,120
Allowance for doubtful accounts	(6,820)	(7,774)
Total current assets	32,646,217	33,368,471
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,992,679	4,436,777
Machinery, equipment and vehicles, net	2,808,414	3,028,838
Land	5,330,524	5,652,005
Construction in progress	484,064	607,819
Other, net	476,330	487,085
Total property, plant and equipment	13,092,013	14,212,526
Intangible assets
Software	387,061	368,118
Goodwill	557,538	514,505
Customer related assets	63,975	55,625
Technology related assets	242,550	227,850
Other	30,237	28,630
Total intangible assets	1,281,362	1,194,729
Investments and other assets
Investment securities	1,425,150	1,536,895
Deferred tax assets	669,565	589,796
Retirement benefit asset	1,161,762	1,229,277
Long-term time deposits	80,000	80,000
Other	568,947	644,019
Allowance for doubtful accounts	(1,000)	(1,000)
Total investments and other assets	3,904,425	4,078,988
Total non-current assets	18,277,801	19,486,244
Total assets	50,924,018	52,854,715

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			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	4,421,022	4,491,541
Electronically recorded obligations - operating	3,648,408	4,269,607
Short-term borrowings	2,610,540	2,597,402
Accounts payable - other	298,624	284,754
Income taxes payable	866,491	496,066
Provision for bonuses	213,525	296,420
Other	1,616,682	1,868,055
Total current liabilities	13,675,295	14,303,848
Non-current liabilities
Long-term borrowings	758,233	726,631
Provision for directors' retirement benefits	96,755	186,141
Provision for share-based remuneration for directors (and	55,213	53,087
other officers)
Deferred tax liabilities	409,695	392,109
Retirement benefit liability	2,685,480	2,550,368
Other	541,205	553,341
Total non-current liabilities	4,546,584	4,461,679
Total liabilities	18,221,880	18,765,528
Net assets
Shareholders' equity
Share capital	3,522,580	3,522,580
Capital surplus	2,674,370	2,674,370
Retained earnings	24,319,204	24,836,275
Treasury shares	(1,254,713)	(1,245,411)
Total shareholders' equity	29,261,441	29,787,814
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	100,776	84,135
Foreign currency translation adjustment	(196,858)	368,463
Remeasurements of defined benefit plans	86,075	77,437
Total accumulated other comprehensive income	(10,006)	530,036
Non-controlling interests	3,450,703	3,771,336
Total net assets	32,702,138	34,089,187
Total liabilities and net assets	50,924,018	52,854,715

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		June 30, 2021	June 30, 2022
Net sales	20,252,533	20,890,418
Cost of sales	14,977,091	15,936,949
Gross profit	5,275,442	4,953,468
Selling, general and administrative expenses	3,393,620	3,732,065
Operating profit	1,881,822	1,221,403
Non-operating income
Interest income	16,197	12,242
Dividend income	8,311	8,058
Rental income	46,557	44,070
Foreign exchange gains	22,744	123,215
Share of profit of entities accounted for using equity method	18,838	22,582
Other	95,370	136,012
Total non-operating income	208,021	346,183
Non-operating expenses
Interest expenses	11,514	10,771
Rental costs	41,245	32,863
Other	26,791	63,970
Total non-operating expenses	79,551	107,604
Ordinary profit	2,010,291	1,459,981
Extraordinary income
Gain on sales of non-current assets	3,579	4,706
Gain on sales of investment securities	121,762	3,508
Total extraordinary income	125,341	8,215
Extraordinary losses
Loss on disposal of non-current assets	3,857	18,798
Total extraordinary losses	3,857	18,798
Profit before income taxes	2,131,776	1,449,398
Income taxes - current	638,796	440,499
Income taxes - deferred	35,391	28,974
Total income taxes	674,187	469,473
Profit	1,457,588	979,924
Profit attributable to non-controlling interests	225,640	146,795
Profit attributable to owners of parent	1,231,947	833,128

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