Fuso Chemical : Announcement of financial results for the second quarter ended september 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 September 30, 2022 (Based on Japanese GAAP)

October 31, 2022

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:

Executive Officer,

Hiroyuki Ito

TEL

03-3639-6311

Division Manager of Administration Division

Scheduled date to file Quarterly Securities Report:

November 14, 2022

Scheduled date to commence dividend payments:

December 9, 2022

Preparation of supplementary material on quarterly financial results:

No

Holding of quarterly financial results meeting:

Yes

(for institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 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 September 30, 2022

35,359

40.5

9,578

49.1

10,757

65.9

7,516

67.5

Six months ended September 30, 2021

25,167

23.7

6,425

38.8

6,482

43.9

4,488

45.4

Note: Comprehensive income

Six months ended September 30, 2022

¥8,704 million

[84.8%]

Six months ended September 30, 2021

¥4,710 million

[50.4%]

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended September 30, 2022

213.26

-

Six months ended September 30, 2021

126.59

-

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

Six months ended September 30, 2022

¥11,624 million

Six months ended September 30, 2021

¥8,550 million

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of September 30, 2022

98,973

82,950

83.8

2,353.63

As of March 31, 2022

92,009

75,303

81.8

2,136.65

Reference: Equity

As of September 30, 2022

¥82,950 million

As of March 31, 2022

¥75,303 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, 2022

-

25.00

-

30.00

55.00

Year ending March 31, 2023

-

30.00

Year ending March 31, 2023 (Forecast)

-

30.00

60.00

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, 2023 (from April 1, 2022 to March 31, 2023)

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	68,500	22.8	17,100	13.7	18,100	16.7	12,550	15.2	356.09

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

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

		Full year	¥21,750 million	[11.6%]
4. Notes
(1)	Changes in significant subsidiaries during the six months ended September 30, 2022	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:	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 September 30, 2022		35,511,000 shares	As of March 31, 2022		35,511,000 shares
	Number of treasury shares at the end of the period
		As of September 30, 2022		267,425 shares	As of March 31, 2022		267,425 shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Six months ended September 30, 2022	35,243,575 shares	Six months ended September 30, 2021	35,452,463 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, 2022	As of September 30, 2022
Assets
Current assets
Cash and deposits	24,236,473	21,350,960
Notes and accounts receivable - trade	14,886,764	16,231,675
Securities	123,756	-
Merchandise and finished goods	7,972,496	9,507,500
Work in process	764,836	690,129
Raw materials and supplies	3,240,909	3,689,577
Other	866,980	1,029,394
Allowance for doubtful accounts	(14,013)	(14,946)
Total current assets	52,078,203	52,484,291
Non-current assets
Property, plant and equipment
Buildings and structures, net	9,651,063	9,743,645
Machinery, equipment and vehicles, net	7,049,478	7,346,500
Land	6,902,935	6,924,113
Construction in progress	11,247,687	17,728,698
Other, net	439,421	577,812
Total property, plant and equipment	35,290,587	42,320,769
Intangible assets	1,904,627	1,675,519
Investments and other assets
Investment securities	1,030,246	847,790
Long-term prepaid expenses	492,355	421,153
Deferred tax assets	910,570	910,913
Retirement benefit asset	121,063	107,456
Other	181,848	205,371
Allowance for doubtful accounts	(0)	(0)
Total investments and other assets	2,736,084	2,492,687
Total non-current assets	39,931,299	46,488,976
Total assets	92,009,502	98,973,268

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			(Thousands of yen)
		As of March 31, 2022	As of September 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	3,039,108	2,887,416
Accounts payable - other	1,883,766	1,676,615
Accounts payable - facilities	4,900,797	4,712,891
Income taxes payable	3,219,784	3,020,198
Provision for bonuses	628,515	683,587
Provision for bonuses for directors (and other officers)	65,600	64,000
Provision for repairs	373,514	169,417
Other	556,315	679,784
Total current liabilities	14,667,402	13,893,912
Non-current liabilities
Deferred tax liabilities	187,187	228,913
Retirement benefit liability	1,555,891	1,595,680
Long-term accounts payable - facilities	182,180	174,794
Asset retirement obligations	8,289	17,924
Other	105,202	111,490
Total non-current liabilities	2,038,751	2,128,803
Total liabilities	16,706,154	16,022,715
Net assets
Shareholders' equity
Share capital	4,334,047	4,334,047
Capital surplus	4,820,722	4,820,722
Retained earnings	64,183,183	70,642,017
Treasury shares	(1,112,561)	(1,112,561)
Total shareholders' equity	72,225,391	78,684,226
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	421,137	315,025
Deferred gains or losses on hedges	25,107	22,269
Foreign currency translation adjustment	2,631,711	3,929,031
Total accumulated other comprehensive income	3,077,957	4,266,325
Total net assets	75,303,348	82,950,552
Total liabilities and net assets		92,009,502	98,973,268

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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
		September 30, 2021	September 30, 2022
Net sales	25,167,339	35,359,319
Cost of sales	15,138,136	21,066,444
Gross profit	10,029,202	14,292,874
Selling, general and administrative expenses	3,603,939	4,714,317
Operating profit	6,425,262	9,578,556
Non-operating income
Interest income	7,020	25,606
Dividend income	14,682	13,215
Foreign exchange gains	26,482	1,122,723
Other	12,645	23,089
Total non-operating income	60,831	1,184,635
Non-operating expenses
Commission expenses	-	1,769
Depreciation	1,277	1,767
Loss on investments in investment partnerships	1,728	1,714
Other	572	406
Total non-operating expenses	3,579	5,658
Ordinary profit	6,482,515	10,757,534
Extraordinary income
Gain on sales of property, plant and equipment	554	-
Gain on sale of investment securities	10,793	84,121
Total extraordinary income	11,348	84,121
Extraordinary losses
Loss on retirement of non-current assets	18,181	19,489
Loss on valuation of investment securities	397	-
Total extraordinary losses	18,579	19,489
Profit before income taxes	6,475,284	10,822,166
Income taxes - current	1,920,353	3,251,619
Income taxes - deferred	66,722	54,405
Total income taxes	1,987,075	3,306,024
Profit	4,488,208	7,516,141
Profit attributable to owners of parent	4,488,208	7,516,141

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