Aica Kogyo : Summary of Consolidated Financial Results for the Three Months 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)
		July 27, 2023
Company name:	Aica Kogyo Company, Limited
Stock exchange listing:	Tokyo, Nagoya
Stock code:	4206	URL https://www.aica.co.jp
Representative:	President	Kenji Ebihara

Inquiries:	General Manager,Financial Management	Yousuke Mori	TEL [phone]
Department
Scheduled date to file Quarterly Securities Report:	August 9, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(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	54,497	(2.0)	5,230	25.6	5,609	22.2	3,137		9.7
Three months ended June 30, 2022	55,620	22.3	4,164	1.1	4,592	3.4	2,860		8.1

	Earnings per share	Diluted earnings per share
	Yen		Yen
Three months ended June 30, 2023	49.06		49.04
Three months ended June 30, 2022	44.72		44.71
(2) Consolidated financial position
	Total assets		Net assets	Equity ratio
	Millions of yen		Millions of yen	%
As of June 30, 2023	252,952		161,728	58.3
As of March 31, 2023	250,049		158,074	58.1

2. Cash dividends
		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end
	Yen	Yen	Yen	Yen
Year ended March 31, 2023	-	50.00	-	59.00
Year ending March 31, 2024	-
Year ending March 31, 2024 (Forecast)		51.00	-	59.00

Total

Yen 109.00

110.00

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
119,000	1.1	10,000		6.0	10,300		0.1	6,200	(3.7)	96.93
September 30, 2023
Full year	250,000	3.3	21,500		4.6	22,500		1.9	13,200	31.2	206.37

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2023 (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:	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	67,590,664	shares	As of March 31, 2023	67,590,664	shares
Number of treasury shares at the end of the period
	As of June 30, 2023	3,627,458	shares	As of March 31, 2023	3,627,311	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2023	63,963,297	shares	Three months ended June 30, 2022	63,958,193	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits	50,993	50,496
Notes receivable - trade	21,419	19,618
Accounts receivable - trade	48,250	46,254
Merchandise and finished goods	15,867	17,376
Work in process	1,575	1,786
Raw materials and supplies	13,979	13,522
Other	8,129	10,667
Allowance for doubtful accounts	(934)	(980)
Total current assets	159,279	158,741
Non-current assets
Property, plant and equipment	60,872	62,390
Intangible assets
Goodwill	3,617	3,485
Other	8,915	8,761
Total intangible assets	12,532	12,247
Investments and other assets
Other	17,366	19,573
Allowance for doubtful accounts	(1)	(1)
Total investments and other assets	17,365	19,572
Total non-current assets	90,769	94,210
Total assets	250,049	252,952
Liabilities
Current liabilities
Notes and accounts payable - trade	28,824	28,188
Electronically recorded obligations - operating	6,126	5,952
Short-term borrowings	7,299	7,022
Income taxes payable	4,058	2,144
Provision for bonuses	2,147	2,752
buy-sell transaction liabilities	2,165	2,382
Other	9,047	9,191
Total current liabilities	59,669	57,635
Non-current liabilities
Convertible-bond-type bonds with share acquisition rights	18,072	18,067
Long-term borrowings	4,222	4,117
Retirement benefit liability	1,577	1,625
Other	8,434	9,778
Total non-current liabilities	32,305	33,588
Total liabilities	91,974	91,224

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		(Millions of yen)
	As of March 31, 2023	As of June 30, 2023
Net assets
Shareholders' equity
Share capital	9,891	9,891
Capital surplus	8,541	8,541
Retained earnings	119,695	119,056
Treasury shares	(6,141)	(6,142)
Total shareholders' equity	131,986	131,347
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	4,270	5,839
Deferred gains or losses on hedges	(12)	9
Foreign currency translation adjustment	8,962	10,402
Remeasurements of defined benefit plans	(5)	(18)
Total accumulated other comprehensive income	13,215	16,233
Share acquisition rights	23	23
Non-controlling interests	12,848	14,122
Total net assets	158,074	161,728
Total liabilities and net assets	250,049	252,952

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

Consolidated statements of income (cumulative)

		(Millions of yen)
	Three months ended	Three months ended
	June 30, 2022	June 30, 2023
Net sales	55,620	54,497
Cost of sales	42,801	40,412
Gross profit	12,819	14,085
Selling, general and administrative expenses	8,655	8,854
Operating profit	4,164	5,230
Non-operating income
Interest income	39	103
Dividend income	172	173
Foreign exchange gains	205	80
Other	248	177
Total non-operating income	666	534
Non-operating expenses
Interest expenses	60	52
Other	177	102
Total non-operating expenses	238	154
Ordinary profit	4,592	5,609
Profit before income taxes	4,592	5,609
Income taxes - current	1,475	1,962
Income taxes - deferred	42	191
Total income taxes	1,518	2,154
Profit	3,074	3,455
Profit attributable to non-controlling interests	213	317
Profit attributable to owners of parent	2,860	3,137

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