Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

July 31, 2023

Consolidated Financial Results for
the First Three Months of the Fiscal Year Ending March 31, 2024
(Under Japanese GAAP)
Company name:
Konishi Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4956
URL:
https://www.bond.co.jp/
Representative:
Keiichi Oyama, Representative Director and President
Inquiries:
Shinichi Okamoto, Director and Managing Executive Officer
Telephone:+81-6-6228-2877
Scheduled date to file quarterly securities report:
August 9, 2023
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
None
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the first three months of the fiscal year ending March 31, 2024
(from April 1, 2023, to June 30, 2023)(1) Consolidated operating results (YTD)(Percentages indicate year-on-year changes.)

Net salesOperating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

31,844

14.9

2,202

75.3

2,416

61.5

1,586

67.7

27,7076.6

1,256(19.2)

1,496(11.4)

946(18.4)

First three months
ended June 30, 2023
First three months
ended June 30, 2022
(Note) Comprehensive income

First three months ended June 30, 2023
First three months ended June 30, 2022

Basic earnings
per share

2,502 Millions of yen(127.8%)
1,098 Millions of yen[(7.2%)]

Diluted earnings
per shareYen

First three months
ended June 30, 2023
First three months
ended June 30, 2022

Profit attributable toowners of parent

Ordinary profit

Yen

45.30

-26.55-(2) Consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

First three months
ended June 30, 2023

127,138

79,72059.1

As of March 31, 2023

132,874

81,482

57.9(Reference) Equity
First three months ended June 30, 2023
As of March 31, 2023

75,129 Millions of yen
76,975 Millions of yen%

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-endYen

Yen

Yen
As of March 31, 2023-

As of March 31, 2024-

Fiscal year ending March31, 2024 (forecast)Fiscal year-endTotal

Yen

Yen

27.00

-

22.00

49.00

27.00

-

27.00

54.00

Note: Revisions to the forecasts of cash dividends most recently announced: None
Breakdown of dividends at the end of the second quarter for the fiscal year ended March 31, 2023: Ordinary dividend ¥22.00;
70th anniversary of the launch of bond (synthetic adhesive) commemorative dividend ¥5.00

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023, to March31, 2024)(Percentages indicate year-on-year changes.)
Net sales

Six months ending
September 30, 2023
Fiscal year ending
March 31, 2024

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basic earnings
per share

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen

62,000

6.6

4,350

50.7

4,500

39.2

2,900(58.8)

81.90

129,000

4.6

9,300

25.3

9,700

22.4

6,200(38.2)

175.10Note: Revisions to the consolidated earnings forecasts most recently announced: NoneThe main reason for the large fluctuation compared with the same period of the previous year in profit attributable to ownersof parent is that extraordinary income of 7,184 million yen was generated for the first six months of the fiscal year ended
March 2023 as a gain on sale of non-current assets due to the transfer of non-current assets.

* Notes(1) Changes in significant subsidiaries during the first three months ended June 30, 2023 (changes in specified
subsidiaries resulting in the change in scope of consolidation): None
Included: 0 companies, excluded 0 companies(2) Application of special accounting for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2023

40,707,440 shares

As of March 31, 2023

40,707,440 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2023

6,859,001 shares

As of March 31, 2023

5,298,801 shares(iii) Average number of shares outstanding during the period
As of June 30, 2023

35,018,589

As of June 30, 2022

35,640,060* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the earnings forecasts stated in these materials, are based on information
currently available to the Company and certain assumptions deemed reasonable. Results may differ materiallyfrom the earnings forecasts due to various factors. For the assumptions used as the basis for the earnings forecasts
and special remarks regarding the use of the earnings forecasts, please refer to “(3) Explanation of consolidated
earnings forecasts and other forward-looking statements” in “1. Qualitative information regarding financial
results for the first three months” on page 3 (Attached Material).

Konishi Co., Ltd. (4956)

Index
1.

Qualitative information regarding financial results for the first three months .................................................. 2(1) Explanation of operating results ................................................................................................................ 2(2) Explanation of financial position ............................................................................................................... 3(3) Explanation of consolidated earnings forecasts and other forward-looking statements ............................ 32.

Quarterly consolidated financial statements and significant notes thereto ........................................................ 4(1) Consolidated balance sheet........................................................................................................................ 4(2) Consolidated statement of income (quarterly) and consolidated statement of comprehensive income(quarterly) .................................................................................................................................................. 6(3) Notes to quarterly consolidated financial statements ................................................................................ 8Notes on premise of going concern ........................................................................................................... 8Notes on significant changes in the amount of shareholders' equity ......................................................... 8Segment information ................................................................................................................................. 8-1-

Konishi Co., Ltd. (4956)
1. Qualitative information regarding financial results for the first three months(1) Explanation of operating results
During the three months ended June 30, 2023, the Japanese economy showed signs of a recovery, with therelaxation of behavioral restrictions against COVID-19 and the normalization of socioeconomic activities. On
the other hand, the situation affecting economic activities, such as the state of affairs in Ukraine, soaring
resource and energy prices, and the ongoing yen’s depreciation, has been prolonged. Therefore, the outlook
remains uncertain.
In this business environment, the Group has launched its newly formulated “Medium-Term Management Plan
2026 (Fiscal Period Ending March 2024 to Fiscal Period Ending March 2026).” Based on this plan, the Groupwill strengthen new business development, further focus on growth areas, and make the largest-ever capital
investments in production, logistics, and DX-related areas. Through these efforts, the Group will further expand
its business and improve management efficiency.
As a result, the Group’s operating results for the first three months under review were as follows. Net sales
increased 14.9% year on year to 31,844 million yen, operating profit grew 75.3% year on year to 2,202 million
yen, ordinary profit was up 61.5% year on year to 2,416 million yen, and profit attributable to owners of parentrose 67.7% year on year to 1,586 million yen.
Results by segment are as follows.
(i)

BondIn the general household field, sales through convenience stores remained steady. In the housing-related
field, construction costs continued to be on an upward trend. The sales volumes of adhesives for interior
work remained at the same level as in the same period last year as the recovery of new housing starts wasslow. In the industrial material field, the sales volume of elastic adhesives for use in such applications as
automotive and electrical components increased. In the civil engineering and construction field, the sales
volumes of sealing materials for construction repair and for civil engineering and construction decreased,
partly due to the low number of construction projects.
The prices of raw materials used in adhesives and sealants continued to rise. However, efforts for costsaving and cost improvement, and reflecting cost in product sales prices progressed, resulting in higher
net sales and operating profit.
As a result of the above, net sales grew 8.3% year on year to 17,445 million yen and operating profit
increased 64.5% year on year to 1,448 million yen.

(ii) Chemicals
In the chemical engineering field, sales of heat-dissipating materials increased despite a decrease in salesof resin raw materials. In the automobile field, sales of products for hybrid vehicles were strong. On theother hand, profit from merchandise for electronic and electrical appliances declined due to the impact ofweaker demand for personal consumer products such as PCs, tablets, and smartphones. In addition,products for use in capacitors and semiconductor manufacturing equipment decreased at Maruyasu & Co.,Ltd.
As a result of the above, net sales increased 14.9% year on year to 9,480 million yen and operating profit
fell 18.9% year on year to 294 million yen.
(iii) Construction
In the Construction Business, repair, improvement, and reinforcement works in the infrastructure and(housing) stock markets, particularly for public works, were continuously steady. The progress of-2-

Konishi Co., Ltd. (4956)
construction projects based on the percentage of completion was also good. As a result, net sales andprofit of all five related construction companies increased significantly.
As a result of the above, net sales grew 47.4% year on year to 4,874 million yen and operating profit
increased 1,475.4% year on year to 424 million yen.
(iv) Other
The “Other” segment represents the Real Estate Rental Business, etc. Net sales decreased 1.8% year onyear to 44 million yen and operating profit was 25 million yen (operating loss of 14 million yen in thesame period of the previous year).
(2) Explanation of financial position
Assets, liabilities and net assets
Total assets as of June 30, 2023, decreased 5,736 million yen from the previous fiscal year-end to 127,138
million yen.
(i)

AssetsCurrent assets dropped 6,576 million yen from the previous fiscal year-end to 87,857 million yen, mainly
due to a decrease of 5,102 million yen in cash and deposits, and a drop of 1,306 million yen in notes andaccounts receivable–trade, and contract assets, despite an increase of 474 million yen in electronicallyrecorded monetary claims–operating. Non-current assets grew 840 million yen from the previous fiscal
year-end to 39,280 million yen, mainly due to an increase of 1,147 million yen in investment securities.

(ii) Liabilities
Current liabilities were down 4,604 million yen from the previous fiscal year-end to 41,251 million yen,mainly due to a decrease of 2,960 million yen in income taxes payable, a decrease of 775 in notes andaccounts payable–trade, and a decrease of 489 million yen in provision for bonuses. Non-current liabilities
grew 629 million yen from the previous fiscal year-end to 6,165 million yen, mainly due to an increaseof 623 million yen in other liabilities, despite a decrease of 10 million yen in long-term borrowings.
(iii) Net assets
Net assets were down 1,762 million yen from the previous fiscal year-end to 79,720 million yen, mainly
due to an increase of 3,398 million yen in treasury shares, an item that reduces net assets because thecompany has to acquire such shares with its own cash, despite an increase of 807 million yen in retained
earnings and an increase of 695 million yen in valuation difference on available-for-sale securities.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
There are currently no changes to the earnings forecast announced on April 28, 2023.

-3-Konishi Co., Ltd. (4956)
2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade, andcontract assets
Electronically recorded monetary claims–
operatingMerchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

As of June 30, 2023

32,19527,092

34,75233,445

14,667

15,142

9,355
314
1,640
1,565
(57)
94,434

8,990
310
1,573
1,361
(58)
87,85725,746
1,188

25,760
1,257

8,084
3,440
(17)
11,50638,440132,874

9,231
3,049
(17)
12,26239,280127,138Konishi Co., Ltd. (4956)(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable–trade
Electronically recorded obligations–operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (andother officers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-5-

As of June 30, 2023

33,98333,207

3,728

3,298

48
60
3,298
1,152

48
51
338
662

131

32

3,450
45,856

3,612
41,251

116
645
4,774
5,536
51,392

105
662
5,398
6,165
47,417

4,603
4,557
69,450(5,904)72,707

4,603
4,557
70,257(9,302)
70,1162,611

3,307(0)
450
1,206

0
532
1,172

4,268

5,013

4,507
81,482
132,874

4,590
79,720127,138

Konishi Co., Ltd. (4956)(2) Consolidated statement of income (quarterly) and consolidated statement of comprehensive income(quarterly)
Consolidated statement of income (quarterly)(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gainsShare of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Depreciation
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of investment securities
Other
Total extraordinary losses
Profit before income taxes
Income taxes–current
Income taxes–deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Three months ended June
Three months ended June30, 2022
30, 2023
27,707
31,844
22,411
25,554
5,295
6,289
4,039
4,087
1,256
2,202-6-

1113
83

2
110
72

7

950
256

40
235

16
8
16
1,496

2
12
5
20
2,416

20
2

0
0

0
110
13
1,485
235
235
471
1,014
67946

25
25
2,391
380
332
713
1,678
92
1,586

Konishi Co., Ltd. (4956)
Consolidated statement of comprehensive income (quarterly)(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof tax
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

Three months ended June
Three months ended June30, 2022
30, 2023
1,014
1,678-7-(119)

755

(0)
201

072

(18)

(33)

21

29

84
1,098

824
2,5021,018

2,33180171

Konishi Co., Ltd. (4956)(3) Notes to quarterly consolidated financial statements
Notes on premise of going concern
Not applicable.
Notes on significant changes in the amount of shareholders' equity
The Company acquired 1,560,200 shares of treasury shares pursuant to a resolution of the Board ofDirectors held on June 20, 2023. As a result, treasury shares increased by 3,398 million yen during thefirst three months under review, and treasury stock was 9,302 million yen as of June 30, 2023.
Segment information
1. Disclosure of net sales and profit or loss by reportable segment
Three months ended June 30, 2022
(Millions of yen)
Total

Amount inconsolidated
Adjustments
statement of(Note 2)
income(Note 3)

45

27,707-

27,707

195

20216

(216)

-

3,306 27,857
26 1,27065(14)

27,923
1,256(216)(0)

27,707
1,256

Reportable segment
Bond
Net sales(1) Revenues fromexternal customers(2) Intersegment sales andtransfers
Total
Segment profit or loss

Total

Other(Note 1)

3,306 27,661

Chemicals Construction

16,107

8,247

89106

16,197880

8,353362-(Notes) 1. The “Other” category is a business segment not included in reportable segments, and includes the realestate rental business.
2. Adjustments of segment profit or loss represent eliminations for intersegment transactions.
3. Segment profit or loss is adjusted with operating profit in the consolidated statement of income.

Three months ended June 30, 2023
(Millions of yen)
Total

Amount inconsolidated
Adjustments
statement of(Note 2)
income(Note 3)44

31,844-

31,844

128

18147

(147)

-

4,874 31,928
424 2,167

63
25

31,991
2,193(147)8

31,8442,202

Reportable segment
BondNet sales(1) Revenues fromexternal customers(2) Intersegment sales andtransfers
Total
Segment profit

Total

Other(Note 1)

4,874 31,799

Chemicals Construction

17,445

9,480

75

52

17,520
1,448

9,533
294

-(Notes) 1. The “Other” category is a business segment not included in reportable segments, and includes the realestate rental business.
2. Adjustments of segment profit represent eliminations for intersegment transactions.
3. Segment profit is adjusted with operating profit in the consolidated statement of income.

2. Disclosure of impairment loss on non-current assets or goodwill, etc. by reportable segment
Not applicable.

-8-