Harima Chemicals : Consolidated Financial Results Highlights for the First Quarter of the Fiscal Year ending March 31, 2024

Consolidated Financial Results Highlights

for the First Quarter of the Fiscal Year ending March 31, 2024

[Japanese GAAP]

July 31, 2023

Company Name: HARIMA CHEMICALS GROUP, INC.

Code Number: 4410

(URL: www.harima.co.jp)

Stock Exchange Listing: Tokyo Stock Exchange

Representative: Yoshihiro Hasegawa, President

Contact: Kiyotaka Uetsuji, Managing Director, Accounting Section Director

Phone: [phone]

Scheduled submission date of the Quarterly Securities Report: August 7, 2023

Scheduled date to commence dividend payments: -

Availability of supplementary briefing material on quarterly results: Available

Schedule of quarterly results briefing session: Not scheduled

(Figures are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of the Year Ending March 31, 2024 (From April 1, 2023 to June 30, 2023)

(1) Consolidated Results of Operations (Cumulative)	(% indicates changes from the same period of the previous year)
							Net income attributable to
	Net sales		Operating income	Ordinary income		Harima Chemicals
							Group,INC.
First Quarter ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2023	22,596	1.9	(372)	－	(238)	－	(138)	－
June 30, 2022	22,184	27.1	1,340	67.2	1,643	60.9	895	36.3

(Note) Comprehensive income: First quarter ended June 30, 2023:	461million yen	[(82.0%)],
	First quarter ended June 30, 2022:	2,562million yen	[59.5%]
	Net income per share	Fully diluted net income
		per share
First Quarter ended	Yen		Yen
June 30, 2023	(5.72)		－
June 30, 2022	35.57		－

(2) Consolidated Financial Position

		Total assets	Net assets		Equity ratio
		Millions of yen	Millions of yen		%
First Quarter ended		94,770	40,284		39.0
June 30, 2023
Fiscal year ended		92,439	40,820		40.1
March 31, 2023
(Reference) Equity: The first quarter of Fiscal year ending March 31, 2024: 36,947 million yen,
	Fiscal year ended March 31, 2023: 37,102 million yen

2. Dividends

			Annual dividend
	1Q	2Q	3Q	Year end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended	－	21.00	－	21.00	42.00
March 31, 2023
Fiscal year ending	－
March 31, 2024
Fiscal year ending
March 31,		21.00	－	21.00	42.00
2024(Forecast)
(Note) Changes in forecasts of dividends from recently announced figures: None

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3. Forecast of Consolidated Financial Results for Fiscal Year Ending March 31, 2024 (From April 1, 2023 to March 31, 2024)

					(% indicates	changes from the same period	of the	previous year)
							Net income attributable		Net income
	Net sales		Operating income		Ordinary income	to Harima Chemicals
				per share
							Group,INC.
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%		Yen
2Q(cumulative)	45,200	(3.6)	(1,200)	－	(1,050)	－	(900)	－		(37.19)
Full year	91,000	(3.7)	(1,400)	－	(1,300)	－	(1,450)	－		(59.91)

(Note) Changes in forecasts of financial results from recently announced figures: Yes

4. Others

(1) Significant changes of subsidiaries during period under review (affecting specific subsidiaries due to

changes in scope of consolidation): None
Newly included: 0 (Company name:	) Excluded: 0 (Company name:	)

1. Application of special accounting method for the preparation of quarterly consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates and corrections of errors
3. 1. Changes in accounting policies accompanying the revisions to items such as accounting standards: None
   2. Changes in accounting policies other than (1) above: None
   3. Changes in accounting estimates: None
   4. Corrections of errors: None
4. Number of shares issued (common stock)
5. 1. Total number of shares issued at the end of the period (including treasury stock)

	1Q of fiscal year ending March 31, 2024	26,080,396 shares
	Fiscal year ended March 31, 2023	26,080,396 shares
(2)	Total number of treasury stock at the end of the period
	1Q of fiscal year ending March 31, 2024	1,878,064 shares
	Fiscal year ended March 31, 2023	1,878,064 shares
(3)	Average number of shares during the period (cumulative from the beginning of the fiscal year)
	1Q of fiscal year ending March 31, 2024	24,202,332 shares
	1Q of fiscal year ended March 31, 2023	25,165,733 shares

• This summary of consolidated financial results is not subject to audit procedure.
• Explanation for the appropriate use of performance forecasts and other special notes:

The performance forecasts and other forward-looking statements herein are based on information currently available to the Company and certain preconditions which the Company believes to be reasonable. Actual results may differ significantly from these forecasts due to a wide range of factors.

* Regarding the change in disclosure unit of the amounts:

Amounts of accounts and other items in the Company's consolidated financial statements used to be stated in units of thousands of yen, but from the first quarter of the consolidated cumulative period under review, they will be stated in units of millions of yen. For easy comparison, figures for the first quarter of the previous fiscal year have also been changed to units of millions of yen.

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Segment Information

I. Three months ended June 30, 2022 (April 1, 2022 to June 30, 2022)

Information regarding net sales and income or loss by reporting segment

(Millions of yen)

			Reporting segment
	Resin & Tall Oil	Paper Chemicals	Electronics	Lawter	Subtotal
	Products	Materials
Net sales
Net sales to external	4,695	5,532	1,852	9,611	21,692
customers
Intersegment sales or	72	84	－	260	417
transfers
Total	4,768	5,617	1,852	9,872	22,110
Segment income	58	397	167	929	1,553

Others		Adjustment	Amount in consolidated
Total	statement of income
(Note 1)	(Note 2)
	(Note 3)

Net sales

Net sales to external	492	22,184	0	22,184
customers
Intersegment sales or	46	464	(464)	－
transfers
Total	538	22,648	(464)	22,184
Segment income	13	1,566	(226)	1,340

1. Three months ended June 30, 2023 (April 1, 2023 to June 30, 2023) Information regarding net sales and income or loss by reporting segment

(Millions of yen)

			Reporting segment
	Resin & Tall Oil	Paper Chemicals	Electronics	Lawter	Subtotal
	Products	Materials
Net sales
Net sales to external	5,201	5,338	2,794	8,308	21,642
customers
Intersegment sales or	159	－	－	237	396
transfers
Total	5,360	5,338	2,794	8,545	22,039
Segment income (loss)	（66）	169	23	(422)	(296)

Others		Adjustment	Amount in consolidated
Total	statement of income
(Note 1)	(Note 2)
	(Note 3)

Net sales

Net sales to external	955	22,598	(1)	22,596
customers
Intersegment sales or	63	459	(459)	－
transfers
Total	1,018	23,057	(461)	22,596
Segment income (loss)	6	(290)	(82)	(372)

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(Notes) 1.The "Others" segment includes businesses not included in the reporting segments and mainly includes "Real estate management."

2.The adjustment amount of segment income (loss) includes adjustments for inventories.

3.Segment income (loss) is adjusted to reflect operating income as recorded in the quarterly consolidated statement of income.

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