Sakai Chemical Industry : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023 (Based on Japanese GAAP)

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)

				August 7, 2023
Company name:	Sakai Chemical Industry Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	4078	URL https://www.sakai-chem.co.jp
Representative:	President, Representative Director	Toshiyuki Yagura
Inquiries:	Director, General Manager of Accounting &	Hiroyuki Hattori	TEL [phone]
	Finance Department
Scheduled date to file Quarterly Securities Report:	August 7, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
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	21,086		(1.5)	932	(49.0)	926		(56.4)	454	(74.3)
Three months ended June 30, 2022	21,400		9.3	1,826	(14.6)	2,125		(9.9)	1,769	8.1
	Earnings per share		Diluted earnings per share
			Yen			Yen
Three months ended June 30, 2023			28.04			27.64
Three months ended June 30, 2022			109.40			-
(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	131,410			85,471				61.7	5,008.05
As of March 31, 2023	128,021			84,717				62.9	4,970.11

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	-	45.00	-	30.00
Year ending March 31, 2024	-
Year ending March 31, 2024 (Forecast)		35.00	-	35.00

Total

Yen 75.00

70.00

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
43,000	0.7	1,200	(63.3)	1,200	(68.7)	400	(86.1)	24.71
September 30, 2023
Full year	91,000	8.5	4,500	2.1	4,500	(7.3)	3,600	53.6	222.40

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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

Yes

(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	17,000,000	shares	As of March 31, 2023	17,000,000	shares
Number of treasury shares at the end of the period
	As of June 30, 2023	805,801	shares	As of March 31, 2023	805,601	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2023	16,194,241	shares	Three months ended June 30, 2022	16,172,698	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	12,409	14,836
Notes and accounts receivable - trade	27,555	27,854
Merchandise and finished goods	16,355	16,313
Work in process	4,192	4,591
Raw materials and supplies	9,577	9,634
Other	2,046	2,414
Allowance for doubtful accounts	(36)	(25)
Total current assets	72,101	75,620
Non-current assets
Property, plant and equipment
Buildings and structures, net	18,177	17,928
Machinery, equipment and vehicles, net	11,583	11,075
Tools, furniture and fixtures, net	1,130	1,156
Land	14,846	14,858
Construction in progress	1,024	1,132
Total property, plant and equipment	46,761	46,152
Intangible assets
Goodwill	1,012	978
Other	355	335
Total intangible assets	1,368	1,314
Investments and other assets
Investment securities	4,838	5,488
Retirement benefit asset	50	63
Deferred tax assets	2,302	2,165
Other	628	636
Allowance for doubtful accounts	(29)	(29)
Total investments and other assets	7,790	8,324
Total non-current assets	55,920	55,790
Total assets	128,021	131,410
Liabilities
Current liabilities
Notes and accounts payable - trade	8,610	9,931
Short-term borrowings	13,175	8,307
Income taxes payable	733	417
Provision for bonuses	1,311	1,784
Other provisions	190	28
Other	5,216	5,585
Total current liabilities	29,237	26,055
Non-current liabilities
Convertible-bond-type bonds with share acquisition rights	-	3,000
Long-term borrowings	8,467	11,315
Provision for environmental measures	145	138
Retirement benefit liability	5,071	5,042
Deferred tax liabilities	139	144
Other	241	243
Total non-current liabilities	14,066	19,884
Total liabilities	43,304	45,939

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			(Millions of yen)
	As of March 31, 2023	As of June 30, 2023
Net assets
Shareholders' equity
Share capital	21,838		21,838
Capital surplus	16,293		16,293
Retained earnings	42,482		42,451
Treasury shares	(1,751)		(1,752)
Total shareholders' equity	78,863		78,831
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,254		1,748
Deferred gains or losses on hedges	(0)		85
Foreign currency translation adjustment	253		323
Remeasurements of defined benefit plans	117		113
Total accumulated other comprehensive income	1,624		2,270
Share acquisition rights	-	35
Non-controlling interests	4,229		4,334
Total net assets	84,717		85,471
Total liabilities and net assets	128,021		131,410

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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	21,400	21,086
Cost of sales	16,010	16,664
Gross profit	5,390	4,421
Selling, general and administrative expenses	3,563	3,489
Operating profit	1,826	932
Non-operating income
Interest income	1	1
Dividend income	86	72
Foreign exchange gains	221	135
Other	25	14
Total non-operating income	333	223
Non-operating expenses
Interest expenses	17	21
Tender offer related expenses	-	194
Other	18	13
Total non-operating expenses	35	229
Ordinary profit	2,125	926
Extraordinary income
Gain on sale of non-current assets	0	0
Gain on sale of investment securities	70	42
Gain on sale of golf club membership	1	-
Insurance claim income	380	-
Total extraordinary income	453	42
Extraordinary losses
Loss on retirement of non-current assets	5	91
Total extraordinary losses	5	91
Profit before income taxes	2,573	878
Income taxes	734	313
Profit	1,838	565
Profit attributable to non-controlling interests	69	110
Profit attributable to owners of parent	1,769	454

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