FY3/23 3Q Consolidated Financial Statements[J-GAAP]
February 10, 2023
Tokyo Stock Exchange (Prime Market)
https://www.matsuda-sangyo.co.jp

Company name:Company code:
Representative:

Matsuda Sangyo Co., Ltd.
Exchanges listed on:
7456
URL:
President
Yoshiaki Matsuda
Executive Officer/
Inquiries:
General Manager of CSR IR Yoshinori Tanaka
Dept.
Filing date of quarterly report:
February 13, 2023
Date to start dividends distribution:－
Supplementary quarterly materials prepared:
None
Results briefing for quarterly financial results
None
held:

TEL:

+81-3-5381-0728(Figures are rounded down to the nearest million yen)

1. FY3/23 3Q consolidated results (April 1, 2022 – December 31, 2022)(1) Consolidated results
Net sales(millions of yen)

FY3/23 3Q

270,528

FY3/22 3Q

203,634(Note) Comprehensive income:(Percentages are year-on-year changes)

Operating profit(%) (millions of yen)

Profit attributable toowners of parent

Ordinary profit(%) (millions of yen)(%) (millions of yen)

(%)

32.9

11,416

9.1

11,374

0.9

7,976

1.0

18.8

10,463

66.4

11,269

76.9

7,900

69.0

FY3/23 3Q: ¥10,447 million (+24.9%)

Earnings per share

FY3/22 3Q: ¥8,362 million (+83.1%)

Diluted earnings per share
(yen)

(yen)

FY3/23 3Q

305.76－

FY3/22 3Q

302.86－(2) Consolidated financial position
Total assets

Shareholders’ equity ratio(millions of yen)(millions of yen)(%)

137,004

83,58960.974,42064.2

End-FY3/23 3Q
End-FY3/22(Reference) Shareholders’ equity:

Net assets

115,797
End-FY3/23 3Q: ¥83,417 million

End-FY3/22: ¥74,297 million

2. Dividends
1Q

Annual dividends
3Q

2Q
(yen)

(yen)

(yen)

FY3/22

－

22.00

－

FY3/23

－

25.00

－

FY3/23 (Projections)(Note) Revisions to the most recently announced projections of dividends: None

4Q

Annual
(yen)

(yen)

24.00

46.00

25.00

50.00

3. Consolidated earnings projections for FY3/23 (April 1, 2022 – March 31, 2023)(Percentages are year-on-year changes)

Net sales(millions of yen)

FY3/23330,000

Operating profit(%) (millions of yen)(%) (millions of yen)

21.2

0.9

12,800

Profit attributable to Earnings perowners of parent
share

Ordinary profit
13,300(%) (millions of yen)

(3.2)

9,300

(%)

(yen)

(2.7)

356.51(Note) Revisions to the most recently announced projections of consolidated earnings: None

* Notes(1) Material changes in subsidiaries during the period (changes in specified subsidiaries resulting fromchanges in scope of consolidation): No(2) Application of special accounting treatment in preparing the quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and restatement of revisions
1) Changes in accounting policies with revision of accounting standards: No
2) Changes in accounting policies other than the above:No3) Changes in accounting estimates:
No4) Restatement of revisions:No(4) Number of issued shares (common shares)
1) Number of issued shares(including treasury shares)
2) Number of treasury shares
3) Average number of shares
during the period

End-FY3/23 3Q

26,908,581 shares End-FY3/22

28,908,581 shares

End-FY3/23 3Q

822,860 shares End-FY3/22

2,822,619 shares

26,085,787 shares FY3/22 3Q

26,086,356 shares

FY3/23 3Q* This quarterly kessan tanshin document is outside the scope of audit procedures conducted by certified public
accountants and the independent auditor.
* Explanation of the proper use of earnings projections and other notes
This document contains earnings projections and other information that constitute forward-looking statements. Thesestatements are based on reasonable assumptions and information currently available to the Company and provide
no guarantee of future performance. Actual results may differ materially from forward-looking statements due to anumber of factors. For more information about earnings projections, please refer to “1. Qualitative information on
consolidated results during the period, (3) Qualitative information on consolidated earnings projections” on page 3 ofthe attached documents.

Contents of Attached Document
1. Qualitative information on consolidated results during the period .................................................. 2(1) Qualitative information on consolidated results ............................................................................................. 2(2) Qualitative information on consolidated financial position ............................................................................ 2(3) Qualitative information on consolidated earnings projections ...................................................................... 3

2. Quarterly consolidated financial statements and related notes ........................................................ 4(1) Quarterly consolidated balance sheets ............................................................................................................ 4(2) Quarterly consolidated statements of income and comprehensive income ................................................. 6(3) Quarterly consolidated statements of cash flows ........................................................................................... 8(4) Notes on quarterly consolidated financial statements ................................................................................. 10(Notes on premise of a going concern) ................................................................................................................ 10(Notes on significant changes in the amount of shareholders’ equity) ................................................................. 10(Segment information, etc.) .................................................................................................................................. 10

1

1. Qualitative information on consolidated results during the period(1) Qualitative information on consolidated results
In the first nine months of the fiscal year ending March 31, 2023, the global economy showed signs of a moderate
pickup. However, concerns about downside risks persisted due to factors such as global inflation and a widening
COVID-19 outbreak in China. In the Japanese economy, consumer spending and corporate capital investment are
picking up, but the outlook remains uncertain amid weakness in production activity and corporate earnings, rising
prices and supply-side constraints.
Against this backdrop, the Matsuda Sangyo Group’s precious metals business segment leveraged its uniquestrengths – integrated capabilities in resources recycling and high-performance electronic materials development –to step up marketing activities, while also actively using production sites in Japan and overseas to secure precious
metals materials, boost sales of products such as precious metal chemical products and expand its industrial waste
treatment outsourcing business. In addition, the food business segment responded dynamically to disruption in foodsupplies and rising procurement prices worldwide, aiming to increase sales volumes by sourcing products that meetincreasingly diverse customer needs and by ensuring stable supplies of safe and reliable food products.
As a result of the above, for the first nine months of the fiscal year ending March 31, 2023, consolidated net sales
were ¥270,528 million (up 32.9% year on year), operating profit was ¥11,416 million (up 9.1% year on year), ordinary
profit was ¥11,374 million (up 0.9% year on year), and profit attributable to owners of parent was ¥7,976 million (up1.0% year on year).
Performance in the Matsuda Sangyo Group’s business segments was as follows.
Precious metals business segment
In the electronics sector, the key market for the precious metals business segment, production activity was strong inthe semiconductor and electronic devices field in the first two quarters, supported by firm demand for data center
applications, but production activity declined from the third quarter as the semiconductor shortage started to easeand demand for electronic parts used in PCs and smartphones contracted. However, market prices for precious
metals rose overall, spurred by accelerating inflation worldwide and heightened geopolitical risks.
In this operating environment, sales and operating profit both increased compared with the same period of theprevious fiscal year, reflecting higher volumes for precious metal recycling and industrial waste treated on an
outsourcing basis, as well as an increase in sales volumes for gold, silver and platinum group products and a rise insales prices in step with higher prices for precious metals in general.
As a result, net sales for the precious metals business segment totaled ¥191,198 million (up 33.9% year on year),and operating profit was ¥9,407 million (up 13.5% year on year).
Food business segment
In the food processing sector, the key market for the food business segment, there were signs of a pickup in demand
from food services and other industries as restrictions on mobility to control the spread of COVID-19 were lifted, butconditions continued to be challenging overall as consumers remained budget-conscious amid a string of price hikeannouncements in response to rising raw material prices and the weakening of the yen.
Against this backdrop, the food business segment reported higher sales compared with the same period of theprevious fiscal year, supported by an increase in sales volumes for seafood products, livestock products andagricultural products and by broadly higher sales prices. However, operating profit declined compared with the same
period of the previous fiscal year due to increases in shipping costs and storage fees.
As a result, net sales for the food business segment were ¥79,391 million (up 30.4% year on year), and operating
profit was ¥2,009 million (down 7.7% year on year).

(2) Qualitative information on consolidated financial position(1) Assets, liabilities and net assets
AssetsTotal assets as of the end of the first nine months were ¥137,004 million, an increase of ¥21,206 million from theprevious fiscal year end. This mainly reflected increases for notes and accounts receivable – trade, inventories, andproperty, plant and equipment such as land and buildings.
Liabilities
Total liabilities as of the end of the first nine months were ¥53,414 million, an increase of ¥12,037 million from theprevious fiscal year end. This primarily reflected increases for accounts payable – trade and long- and short-termloans payable.

2Net assets
Net assets as of the end of the first nine months were ¥83,589 million, an increase of ¥9,169 million from the previous
fiscal year end. This was mainly due to an increase in retained earnings.
Treasury shares were retired on August 22, 2022 in accordance with a resolution approved by the Board of
Directors on August 10, 2022. As a result, retained earnings and treasury shares each declined by ¥2,418 million.
(2) Cash flows status
As of the end of the first nine months under review, the balance of cash and cash equivalents (hereafter, “cash”)
stood at ¥9,833 million, a decrease of ¥1,545 million from the previous fiscal year end.
Cash flows from operating activities
Operating activities used net cash of ¥4,274 million. This primarily reflected the difference between cash provided
from profit before income taxes, depreciation and increase in accounts payable – trade on the one hand, and cashused for increase in notes and accounts receivable – trade, increase in inventories, and income taxes paid on theother. Compared with the same period in the previous fiscal year, when operating activities provided net cash of¥5,281 million, cash from operating activities decreased by ¥9,556 million.
Cash flows from investing activities
Investing activities used net cash of ¥10,357 million. This was mainly due to the purchase of property, plant andequipment such as land and buildings. Compared with the same period in the previous fiscal year, when investing
activities used net cash of ¥1,872 million, cash used by investing activities increased by ¥8,484 million.
Cash flows from financing activities
Financing activities provided net cash of ¥12,222 million. This largely reflected increases in long- and short-termloans payable. Compared with the same period in the previous fiscal year, when financing activities used net cashof ¥1,321 million, cash from financing activities increased by ¥13,544 million.

(3) Qualitative information on consolidated earnings projections
At this stage, there are no revisions to the Company’s earnings projections released on November 10, 2022.

3

2. Quarterly consolidated financial statements and related notes(1) Quarterly consolidated balance sheets(millions of yen)
End-FY3/22(As of March 31, 2022)

End-FY3/23 3Q(As of December 31, 2022)

AssetsCurrent assets
Cash and deposits

11,379

9,833

Notes and accounts receivable – trade26,10435,176Merchandise and finished goods

27,20233,260Work in process

614

637

Raw materials and supplies

13,962

12,878

Accounts receivable - other

1,938

2,048

Others

4,918

4,308

(45)

(7)

86,073

98,134

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

12,633

13,927

Accumulated depreciation(6,061)(6,525)

Buildings and structures, net

6,572

7,401

Machinery, equipment and vehicles

12,65913,368

Accumulated depreciation(9,294)(10,245)

Machinery, equipment and vehicles, net

3,365

3,123

Land

8,768

16,649Leased assets

1,723

1,844

Accumulated depreciation(899)(1,009)Leased assets, net

824

835

Construction in progress

994

780

1,537

1,650

(1,285)(1,423)252

227

20,77729,017

Others772

1,096

Total intangible assets

772

1,096

Investment securities

5,484

5,708

Deferred tax assets

819

247

1,895

2,822

-

(2)

1,895

2,819

(25)

(21)

Others
Accumulated depreciation
Others, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Others
Accumulated depreciation
Others, net
Allowance for doubtful accounts
Total investments and other assets

8,174

8,754

Total non-current assets

29,72438,869Total assets

115,797

137,004

4

(millions of yen)
End-FY3/22(As of March 31, 2022)

End-FY3/23 3Q(As of December 31, 2022)

Liabilities
Current liabilities
Accounts payable – trade

11,231

12,975

Short-term loans payable

9,724

12,440Current portion of long-term loans payable

1,588

3,102

Lease obligations

302

269

Income taxes payable

3,128

1,505

Provision for bonuses

1,012

534

Accounts payable - other

1,312

923

Others

5,292

4,370

Total current liabilities

33,59236,123

4,239

13,773535

578

Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities

12

15

Provision for directors’ retirement benefits

742

777

Provision for executive officers’ retirement
benefits

25

20

2,111

2,006

117

119

7,784

17,291

41,37753,414

Common stock

3,559

3,559

Capital surplus

4,008

4,008

Retained earnings

69,94074,219Treasury shares(3,413)(995)

Total shareholders’ equity

74,09580,792

Valuation difference on available-for-salesecurities

580

546

Deferred gains or losses on hedges

(766)

113

Foreign currency translation adjustment

1,311

2,672

Remeasurements of defined benefit plans

(923)

(708)

Total accumulated other comprehensive income

202

2,624

122

171

74,42083,589115,797

137,004

Net defined benefit liability
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets5(2) Quarterly consolidated statements of income and comprehensive income[Quarterly consolidated statements of income](millions of yen)
FY3/22 3Q(April 1, 2021 –December 31, 2021)

FY3/23 3Q(April 1, 2022 –December 31, 2022)

Net sales

203,634

270,528

Cost of sales

180,341

244,448

Gross profit

23,292

26,080

Selling, general, and administrative expenses

12,82914,663Operating profit

10,463

11,416

Interest income

56Dividend income

2930

Non-operating income

Gain on sale of investment securities-

40

Share of profit of entities accounted for using
equity method

393

345

Purchase discounts

1111

Foreign exchange gains

44-

Subsidy income

326-

Others45

70

Total non-operating income

856

505

Non-operating expenses
43

145

Foreign exchange losses-

353

Others7

48

Total non-operating expenses

50

547

11,26911,374Gain on liquidation of subsidiaries and associates-

88

Gain on sale of non-current assets-

40

Total extraordinary income

Interest expenses

Ordinary profit
Extraordinary income-

129

Profit before income taxes

11,26911,503

Income taxes – current

3,172

3,393

Income taxes – deferred

181

105

Total income taxes

3,354

3,498

Profit

7,915

8,005

14

29

7,900

7,976

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6

[Quarterly consolidated statements of comprehensive income](millions of yen)
FY3/22 3Q(April 1, 2021 –December 31, 2021)
ProfitFY3/23 3Q(April 1, 2022 –December 31, 2022)

7,915

8,005

Valuation difference on available-for-salesecurities

7

(33)

Deferred gains or losses on hedges

Other comprehensive income

3882

Foreign currency translation adjustment

218

1,274

Remeasurements of defined benefit plans

178

226

Share of other comprehensive income ofentities accounted for using equity method

39

92

Total other comprehensive income
Comprehensive income

447

2,442

8,362

10,447

8,356

10,398549

Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests7(3) Quarterly consolidated statements of cash flows(millions of yen)
FY3/22 3Q(April 1, 2021 –December 31,
2021)

FY3/23 3Q(April 1, 2022 –December 31,
2022)

Cash flows from operating activities
Profit before income taxes

11,26911,503

Depreciation

1,585

1,694

Increase (decrease) in allowance for doubtful accounts

(122)

(41)

Increase (decrease) in provision for bonuses

(493)

(477)

Increase (decrease) in net defined benefit liability

193

217

Increase (decrease) in provision for directors’ retirement benefits

30

34

Increase (decrease) in provision for executive officers’ retirement
benefits

5(5)Interest and dividend income

(35)

(37)

Interest expenses

43

145

(393)

(345)

(5,211)(8,613)

Decrease (increase) in accounts receivable - other

(532)

(101)

Decrease (increase) in inventories

614(4,506)

Increase (decrease) in accounts payable – trade

607

1,408

Increase (decrease) in accounts payable - other

(565)

(385)

Others1,126

96

Subtotal

8,121

585

Interest and dividend income received

124

201

Interest paid

Share of (profit) loss of entities accounted for using equity method
Decrease (increase) in notes and accounts receivable – trade

(43)

(137)

Income taxes paid

(2,920)(4,923)

Net cash provided by (used in) operating activities

5,281(4,274)(1,702)(9,567)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

6

115

Purchase of intangible assets

(211)

(513)

Purchase of investment securities

(21)

(14)

-

57

55

(434)

(1,872)(10,357)

Proceeds from sale of investment securities
OthersNet cash provided by (used in) investing activities8

(millions of yen)
FY3/22 3Q(April 1, 2021 –December 31,
2021)

FY3/23 3Q(April 1, 2022 –December 31,
2022)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

1,173

2,670

Proceeds from long-term loans payable-

13,500

Repayments of long-term loans payable(1,141)(2,451)

Cash dividends paid

(1,095)(1,278)

(1)

0

(256)

(217)

(1,321)

12,222

Purchase of treasury shares
OthersNet cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

95

863

Net increase (decrease) in cash and cash equivalents

2,183(1,545)

Cash and cash equivalents at beginning of period

8,803

11,379Cash and cash equivalents at end of period

10,9879,833

9

(4) Notes on quarterly consolidated financial statements(Notes on premise of a going concern)
There is nothing to report.

(Notes on significant changes in the amount of shareholders’ equity)
There is nothing to report.

(Segment information, etc.)
I. FY3/22 3Q (April 1, 2021 – December 31, 2021)
1. Information for net sales and profit/loss for each reportable segment(millions of yen)Amountrecorded onquarterly
consolidated
statements ofincomeReportable Segments
Precious
metalsbusinesssegment

Adjustments
Food businesssegment

Note 1

Total

Note 2

Net sales
Net sales to external
parties
Net sales &remittances between
segments

142,794

60,839203,634-

203,634

-

57

57

(57)

-

Total

142,794

60,896

203,691(57)

203,634

Segment profit

8,286

2,176

10,463-

10,463(Notes)1. Adjustments correspond to the elimination of transactions and remittances between segments.
2. Total segment profit matches operating profit recorded on the quarterly consolidated statements
of income.

II. FY3/23 3Q (April 1, 2022 – December 31, 2022)
1. Information for net sales and profit/loss for each reportable segment(millions of yen)Amountrecorded onquarterly
consolidated
statements ofincomeReportable Segments
Precious
metalsbusinesssegment

Adjustments
Food businesssegment

Note 1

Total

Note 2

Net sales
Net sales to external
parties
Net sales &remittances between
segments

191,198

79,329270,528-

270,528

-

61

61

(61)

-

Total

191,198

79,391

270,590(61)

270,528

Segment profit

9,407

2,009

11,416-

11,416(Notes)1. Adjustments correspond to the elimination of transactions and remittances between segments.
2. Total segment profit matches operating profit recorded on the quarterly consolidated statements
of income.

10