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.

February 13, 2024

Consolidated Financial Results for the Fiscal Year Ended December 31,
2023 (Under Japanese GAAP)
Company name:Taki Chemical Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4025
URL:
https://www.takichem.co.jp/
Representative:
Takamoto Taki, Representative Director, President
Inquiries:
Osamu Okamoto, General Manager, General Affairs & Personnel Department
TEL:
079-437-6002
Scheduled date of annual general meeting of shareholders:March 27, 2024
Scheduled date to commence dividend payments:
March 28, 2024
Scheduled date to file annual securities report:
March 27, 2024
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended December 31, 2023 (from January 1, 2023 to
December 31, 2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

December 31, 2023

34,852(2.8)

912(66.8)

1,337(57.5)

1,356(34.0)

December 31, 2022

35,846

–

2,751

–

3,144

–

2,056

–

Note: Comprehensive income

For the fiscal year ended December 31, 2023:
For the fiscal year ended December 31, 2022:

Basic earnings
per share
Fiscal year ended

Diluted earnings
per shareYen¥2,893 million¥3,079 million

Return on equity

Yen[(6.0)%][–%]

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

%

%

%

December 31, 2023

156.86

–

4.1

2.6

2.6

December 31, 2022

237.53

–

6.7

6.5

7.7

Reference:*

Operating profit

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended December 31, 2023:¥ – million
For the fiscal year ended December 31, 2022:¥ – million
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020)
and relevant ASBJ regulations from the beginning of the previous fiscal year, and each figure for the fiscal year ended
December 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations. The percentage ofyear-on-year change is not shown.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

December 31, 2023

51,29933,89965.93,994.74

December 31, 2022

50,32332,05763.5

3,689.28

Reference:

EquityAs of December 31, 2023:
As of December 31, 2022:%

Yen¥33,819 million¥31,948 million(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Millions of yen

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

December 31, 2023

1,620

(1,640)(1,169)5,075

December 31, 2022

1,444

(1,083)

(543)

6,256

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen
Fiscal year ended
December 31, 2022
Fiscal year ended
December 31, 2023
Fiscal year ending
December 31, 2024
(Forecast)

Yen

Fiscalyear-end

Yen

Total cash
dividends(Total)

Total

Yen

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%

%

–

–

–

50.00

50.00

432

21.0

1.4

–

–

–

50.00

50.00

423

31.9

1.3

–

–

–

55.00

55.00

Breakdown of year-end dividend
For the fiscal year ended December 31, 2022:
For the fiscal year ended December 31, 2023:

31.0

Ordinary dividend:Commemorative dividend:
Ordinary dividend:Commemorative dividend:¥45.00¥5.00 (Commemorating transition
to the Prime Market)¥45.00¥5.00 (Commemorating
construction of the new head officebuilding)

3. Consolidated earnings forecast for the fiscal year ending December 31, 2023 (from January 1, 2023 to
December 31, 2023)
Net sales

Full year

Operating profit(Percentages indicate year-on-year changes.)
Profit attributable to Basic earnings perowners of parent
share

Ordinary profit

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

37,000

6.2

1,200

31.4

1,650

23.4

1,500

10.6

177.18

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
Newly included:
0 companies
Excluded:
0 companies(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
* For more information, please see “(5) Notes to Consolidated Financial Statements (Changes in
Accounting Policies)” in “3. Consolidated Financial Statements and Significant Notes Thereto” on page
13 of the appendix.
(3) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

9,458,768 shares

As of December 31, 2022

9,458,768 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2023

992,644 shares

As of December 31, 2022

798,931 shares(iii) Average number of shares outstanding during the period
Fiscal year ended December 31, 2023

8,648,061 sharesFiscal year ended December 31, 2022

8,657,922 shares[Reference] Overview of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended December 31, 2023 (from January 1, 2023 to
December 31, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Operating profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

December 31, 2023

27,057(2.8)

830(65.7)

1,321(53.8)

1,419(32.1)

December 31, 2022

27,844

–

2,423

–

2,860

–

2,090

–

Basic earnings
per share
Fiscal year ended*

Ordinary profit

Diluted earnings
per share
Yen

Yen

December 31, 2023

164.18–December 31, 2022

241.50–

The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020)
and relevant ASBJ regulations from the beginning of the previous fiscal year, and each figure for the fiscal year ended
December 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations. The percentage ofyear-on-year change is not shown.

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

December 31, 2023

43,64229,09266.7

3,436.32

December 31, 2022

42,63527,18463.8

3,139.10

Reference:

EquityAs of December 31, 2023:
As of December 31, 2022:%

Yen¥29,092 million¥27,184 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
The earnings forecast is based on information available to the Company as of the date of this document as well as certain
assumptions it believes to be reasonable, and actual results may differ materially due to various factors.
For matters related to the above earnings forecasts, please see “(4) Outlook” in “1. Overview of Operating Results and Others” onpage 4 of the appendix.
(How to obtain supplementary material for financial results)
Supplementary material on financial results is disclosed on the same day on TDnet. and the Company’s website(https://www.takichem.co.jp/).

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

Appendix Table of Contents
Index
1. Overview of Operating Results and Others .............................................................................................. 2(1) Overview of Operating Results for the Fiscal Year ............................................................................ 2(2) Overview of Financial Position for the Fiscal Year ............................................................................ 3(3) Overview of Cash Flows for the Fiscal Year ...................................................................................... 3(4) Outlook ............................................................................................................................................... 4(5) Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and Next Fiscal
Year .................................................................................................................................................... 5
2. Basic Rationale for Selection of Accounting Standards ........................................................................... 5
3. Consolidated Financial Statements and Significant Notes Thereto .......................................................... 6(1) Consolidated Balance Sheet ............................................................................................................... 6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ............ 8(Consolidated Statement of Income) .................................................................................................. 8(Consolidated Statement of Comprehensive Income) ........................................................................ 9(3) Consolidated Statement of Changes in Equity ................................................................................. 10(4) Consolidated Statement of Cash Flows ............................................................................................ 12(5) Notes to Consolidated Financial Statements .................................................................................... 13(Notes on Going Concern Assumption) ........................................................................................... 13(Changes in Accounting Policies) .................................................................................................... 13(Segment Information) ..................................................................................................................... 13(Per Share Information) .................................................................................................................... 16(Subsequent Events) ......................................................................................................................... 16
4. Other ....................................................................................................................................................... 16-1-

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

1. Overview of Operating Results and Others(1) Overview of Operating Results for the Fiscal Year
Given the backdrop of rebounding economic and social activities, during the fiscal year under review,
the Japanese economy continued recovering gradually due partly to the effects of various government
policies. However, the situation remained uncertain due to downside risks caused by price increases,
fluctuations in financial and capital markets, and other factors.
Working against this backdrop, the Group focused on enhancing the profitability of its current
businesses in line with the Medium-term Management Plan 2023 launched in January 2021. Net sales
for the fiscal year under review totaled ¥34,852 million (down 2.8% versus the previous fiscal year),due to factors such as rising raw materials prices and energy costs, operating profit was ¥912 million(down 66.8% versus the previous fiscal year), ordinary profit was ¥1,337 million (down 57.5% versus
the previous fiscal year), and profit attributable to owners of the parent was ¥1,356 million (down
34.0% versus the previous fiscal year).
Operating results by segment are as shown below.
Agriculture
While fertilizer sales prices increased due to higher raw material prices, sales volume declined
sharply due a decline in demand as people refrained from purchasing in expectation of a drop in
prices, resulting in net sales of ¥9,989 million, a significant decrease of 13.3% versus the previous
fiscal year.
Chemicals
Sales of water treatment chemicals totaled ¥10,728 million, a significant increase of 14.9% versus
the previous fiscal year, as the sales volume of ultra-high-basicity polyaluminum chloride increased
and due to work to revise selling prices resulting from higher raw material prices.
Sales of functional materials amounted to ¥4,822 million, a significant decrease of 12.2% versus
the previous fiscal year, due to lower sales volume of high-purity tantalum oxide for smartphones
and aluminum chloride with high basicity for automotive ceramic fibers as a result of significantly
falling demand.
Sales of other chemical products totaled ¥194 million, on par with the previous fiscal year.
As a result, net sales came to ¥15,745 million, up 4.8% versus the previous fiscal year.
Construction materials
Net sales totaled ¥3,215 million, up 3.2% versus the previous fiscal year as a result of an increase
in selling prices of gypsum board despite the sales volume remaining flat.
Petroleum
Net sales came to ¥1,942 million, a significant decrease of 11.8% versus the previous fiscal year,
due to a decline in fuel oil sales volume as a result of falling demand.
Real estate
Net sales totaled ¥1,357 million, up 1.6% versus the previous fiscal year with rental income at
shopping centers remaining at the same level as the previous fiscal year.

-2-

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

Transportation
Net sales dropped 1.7% versus the previous fiscal year to ¥2,602 million as transported cargo andhandling volume both decreased.
(2) Overview of Financial Position for the Fiscal Year
Total assets at the end of the fiscal year under review came to ¥51,299 million (up ¥976 million fromthe end of the previous fiscal year). Current assets totaled ¥23,784 million (down ¥2,254 million fromthe end of the previous fiscal year) due primarily to decreases of ¥1,181 million in cash and deposits,¥769 million in notes and accounts receivable - trade, and ¥360 million in raw materials and supplies.
Non-current assets came to ¥27,515 million (up ¥3,231 million from the end of the previous fiscal year)
due primarily to increases of ¥1,067 million in property, plant and equipment and ¥2,243 million in
investment securities.
Total liabilities amounted to ¥17,400 million (down ¥865 million from the end of the previous fiscal
year) due primarily to decreases of ¥880 million in notes and accounts payable - trade and ¥453 million
in income taxes payable, despite an increase of ¥658 million in deferred tax liabilities.
Net assets totaled ¥33,899 million (up ¥1,842 million from the end of the previous fiscal year) due
primarily to increases of ¥923 million in retained earnings and ¥1,587 million in the valuationdifference on available-for-sale securities, despite a decrease in the purchase of treasury shares of ¥640
million.
(3) Overview of Cash Flows for the Fiscal YearIn the fiscal year under review, net cash provided by operating activities totaled ¥1,620 million, net
cash used in investing activities totaled ¥1,640 million, and net cash used in financing activities totaled¥1,169 million. As a result, cash and cash equivalents at the end of the fiscal year under review totaled¥5,075 million, a decrease of ¥1,181 million compared to the end of the previous fiscal year.
(Cash flows from operating activities)
Net cash provided by operating activities totaled ¥1,620 million (¥1,444 million provided in theprevious fiscal year) due primarily to profit before income taxes of ¥1,956 million, depreciation of¥1,147 million, and an increase in cash resulting from a decrease in sale of trade receivables of ¥717
million, despite decreases in cash resulting from decreases in trade receivables of ¥880 million andincome taxes paid of ¥1,124 million.
(Cash flows from investing activities)
Net cash used in investing activities totaled ¥1,640 million (¥1,083 million used in the previous
fiscal year) due primarily to purchase of non-current assets of ¥2,149 million, despite proceeds fromsale of investment securities of ¥485 million.
(Cash flows from financing activities)
Net cash used in financing activities totaled ¥1,169 million (¥543 million used in the previous fiscal
year) due primarily to the purchase of treasury shares of ¥647 million and dividends paid of ¥432
million.
Trends in cash flow indicators

Equity-to-asset ratio (%)
Equity-to-asset ratio based onmarket value (%)
Ratio of interest-bearing debt
to cash flow (annual)Interest coverage ratio (times)

Year ended
December 2019
61.5

Year ended
December 2020
62.7

Year ended
December 2021
63.5

Year ended
December 2022
63.5

Year ended
December 2023
65.9

94.8

131.3

109.0

78.4

53.1

0.9

1.0

1.0

1.8

1.6

212.1

227.6

222.1

118.3

135.6

-3-

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023
Equity-to-asset ratio: Equity/Total assets
Equity-to-asset ratio based on market value: Total market capitalization/Total assets
Ratio of interest-bearing debt to cash flow: Interest-bearing debt/operating cash flow
Interest coverage ratio: Operating cash flow/Interest paid
Notes:

1.
2.
3.

Each indicator is calculated based on consolidated financial data.
Total market capitalization is calculated by multiplying the closing share price at the end of the fiscal yearby the number of shares outstanding (after deducting treasury shares) at the end of the fiscal year.
Cash flows from operating activities in the consolidated statement of cash flows are used for operating
cash flow. Interest-bearing debts include all of those debts reported on the consolidated balance sheet on
which interest is paid. Interest expenses in the consolidated statement of cash flows are used for interest
paid.

(4) Outlook
Given the backdrop of rebounding economic and social activities, the Japanese economy is recovering
gradually due partly to the effects of various government policies. However, the future outlook of theJapanese economy remains uncertain due to downside risks caused by price increases, fluctuations infinancial and capital markets, and other factors.
The Group has completed the Medium-term Management Plan 2023, a three-year plan that started in
2021. As a result, consolidated net sales were ¥34,800 million compared to the target of ¥32,000
million, but the fertilizer sales volume in the Agriculture business segment declined due to a slowdownof purchases in anticipation of lower prices, and the cost of sales ratio increased due to the impact of
product inventories. In the construction materials business, the impact of being unable to fully pass onhigher energy costs to product prices resulted in consolidated ordinary profit of ¥1,300 million against
a target of ¥2,500 million, and a ROE of 4.1% against a target of 6.0% or more.
Based on these results, the Group formulated the “Long-Term Vision 2050” that clarifies the ideal stateof the company in 2050, as a roadmap for sustainable growth in times when making predictions for the
future is difficult. The five-year “Medium-term Management Plan 2028” was also created bybackcasting from the long-term vision, and has been launched in 2024. The “Medium-termManagement Plan 2028” sets out four basic policies: (1) Invest aggressively in growth businesses andcreate new businesses, (2) Enhance profitability by strengthening existing businesses, (3) Implement
sustainability transformation, and (4) Promote GRC (Governance, Risk Management and Compliance),with the management targets for the final year of the plan set forth as consolidated net sales of ¥42,000
million, consolidated operating profit of ¥3,000 million and ROE of 6.0% or more.
To promote sustainability, the Company formulated the “Sustainability Vision 2030” with the view ofaccomplishing Sustainable Development Goals (SDGs), and have identified four materialities and 13
key issues based on “Addressing climate change,” “Contributing to the environment and society
through products and services,” “Respect for human rights and human resource development,” and“Governance and communication,” and the Group is united in its efforts toward contributing to thedevelopment of a sustainable society and enhancing corporate value.
In the fiscal year ending December 31, 2024, the Group expects net sales of ¥37,000 million, operating
profit of ¥1,200 million, ordinary profit of ¥1,650 million and profit attributable to owners of parent of¥1,500 million.
A project team is developing technology for “Fully artificial cultivation of Tricholoma bakamatsutake”
in preparation for commercialization. Various investigations in the cultivation research facilities arebeing conducted to resolve issues such as production cost and stability of production at scale.
Restaurants and other locations have been supplied with samples and ongoing market assessments
indicate a certain level of recognition in terms of aroma and flavor. Market demand and production
efficiency will continue to be assessed in detail. Going forward, we will promptly release new
information as it becomes available.

-4-

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

(5) Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and Next
Fiscal Year
The Company recognizes the return of profit to its shareholders as a key management priority, and it
maintains a policy of paying stable dividends on a continual basis. Moreover, the Company will
allocate profits to capital investment, research and development investment, and rationalization
investment to improve sustainable development and the corporate value of the Company.
The Company has given comprehensive consideration to a range of factors including the enhancementof business structure, future business development and business performance, and it plans to pay a
year-end dividend for the fiscal year under review of ¥50 in total, consisting of an ordinary dividend of¥45 and a commemorative dividend to commemorate the construction of the new head office buildingof ¥5 per share, to repay the support of shareholders.
For the next fiscal year, the Company plans to pay a year-end dividend of ¥55 per share.

2. Basic Rationale for Selection of Accounting Standards
The Group, in consideration of the inter-period-comparability and inter-company-comparability ofconsolidated financial statements, will prepare its consolidated financial statements, for the time being,in accordance with the Japanese accounting standards. With regard to the adoption of International
Financial Reporting Standards (IFRS), the Group intends to give appropriate consideration to this issue
as well as to various circumstances in Japan and overseas.

-5-

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

3. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Balance Sheet(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
SoftwareRight to use water facilities, etc.
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-6-

As of December 31, 2022

As of December 31, 2023

6,256
10,002
2,196
4,085
271
2,292
947
(13)
26,039

5,075
9,233
2,248
4,274
242
1,931
790
(12)
23,784

22,324(15,652)
6,672
16,810(15,346)
1,463
1,494
(1,383)
111
6,455
457
(93)
364
245
15,312

22,376(16,086)
6,290
16,908(15,641)
1,266
1,571
(1,425)
145
7,086
457
(121)
336
1,255
16,380

406
9
1
418

317
9
–
326

8,361
29
196
(35)
8,552
24,28350,323

10,60557
179(34)
10,80727,51551,299

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023
(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Guarantee deposits received
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-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-7-

As of December 31, 2022

As of December 31, 2023

6,785
369
60
35
1,372
627
77
42
602
9,973

5,904
373
60
35
1,218
174
109
42
584
8,503

395
378
1,131
3,693
2,509
185
8,293
18,266

335
342
1,789
3,733
2,550
146
8,897
17,4002,147
1,398
25,511(729)
28,3272,147
1,420
26,435(1,370)28,632

3,612
8
3,621
108
32,05750,323

5,199
(12)
5,187
79
33,89951,299

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Millions of yen)
Fiscal year ended
December 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on sale of investment securities
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Waste disposal costs
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Subsidy income
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on valuation of investment securities
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent-8-

Fiscal year ended
December 31, 2023

35,846
27,040
8,805
6,053
2,751

34,852
27,922
6,929
6,016
912

5
334
45
64
450

4
375
24
67
472

12
28
7
9
58
3,144

11
25
5
4
47
1,337

145
–
145

404
214
618

110
125
14
251
3,038
983
32
1,015
2,022
(33)
2,056

–
–
–
–
1,956
687
(58)
628
1,328
(28)
1,356

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

(Consolidated Statement of Comprehensive Income)(Millions of yen)
Fiscal year ended
December 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-9-

Fiscal year ended
December 31, 2023

2,022

1,328

1,031
26
1,057
3,079

1,587
(21)
1,565
2,893

3,113

2,922

(33)

(28)

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

(3) Consolidated Statement of Changes in Equity
Fiscal year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)(Millions of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

2,147

1,372

23,888(736)

Total shareholders’equity26,672

Changes during period
Dividends of surplus

(432)

(432)

Profit attributable to ownersof parent

2,056

2,056

Purchase of treasury shares
Disposal of treasury shares

25

(0)

(0)

6

31

Loss attributable to noncontrolling interests–

Net changes in items otherthan shareholders’ equity–

Total changes during period
Balance at end of period

–

25

1,623

6

1,655

2,147

1,398

25,511(729)

28,327

Non-controllinginterests

Total net assets

142

29,378

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at beginning of period

2,581

Remeasurements ofdefined benefit plans(17)

Total accumulated
other comprehensive
income2,563

Changes during period
Dividends of surplus(432)

Profit attributable to ownersof parent

2,056

Purchase of treasury shares(0)

Disposal of treasury shares

31

Loss attributable to noncontrolling interests
Net changes in items otherthan shareholders’ equity

(33)

(33)

1,031

26

1,057

0

1,057

Total changes during period

1,031

26

1,057

(33)

2,678

Balance at end of period

3,612

8

3,621

108

32,057- 10 -

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

Fiscal year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(Millions of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

2,147

1,398

25,511(729)

Total shareholders’equity28,327

Changes during period
Dividends of surplus

(432)

(432)

Profit attributable to ownersof parent

1,356

1,356

Purchase of treasury shares
Disposal of treasury shares

22

(647)

(647)

6

28

Loss attributable to noncontrolling interests–

Net changes in items otherthan shareholders’ equity–

Total changes during period
Balance at end of period

–

22

923

(640)

305

2,147

1,420

26,435(1,370)28,632

Non-controllinginterests

Total net assets

108

32,057

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at beginning of period

Remeasurements ofdefined benefit plans

3,612

8

Total accumulated
other comprehensive
income3,621

Changes during period
Dividends of surplus(432)

Profit attributable to ownersof parent

1,356

Purchase of treasury shares(647)

Disposal of treasury shares

28

Loss attributable to noncontrolling interests
Net changes in items otherthan shareholders’ equity

(28)

(28)

1,587

(21)

1,566

(0)

1,565

Total changes during period

1,587

(21)

1,566

(28)

1,842

Balance at end of period

5,199

(12)

5,187

79

33,899- 11 -

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
December 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on sale of investment securities
Impairment losses
Loss (gain) on valuation of investment securities
Loss on retirement of non-current assets
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Interest and dividend income
Subsidy income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividends received
Subsidies received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of non-current assets
Proceeds from sale of non-current assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Refund of guarantee deposits received
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 12 -

Fiscal year ended
December 31, 2023

3,038
1,281
(145)
110
125
4
2
(38)
(339)
–
12
(1,341)(1,904)
1,808
(727)
49
(20)
1,915
339
–
(12)
(797)
1,444

1,956
1,147
(404)
–
–
25
(1)
8
(380)
(214)
11
717
199
(880)
134
(154)
(4)
2,162
380
214
(11)
(1,124)
1,620(1,478)
8
(3)
267
100
22
(1,083)(2,149)
22
(13)
485
–
15
(1,640)

(6)
(60)
(11)
(0)
(432)
(32)
(543)

3
(60)
(0)
(647)
(432)
(32)
(1,169)

5

7

(176)
6,433
6,256

(1,181)
6,256
5,075

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable(Changes in Accounting Policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Group has applied the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021) from the beginning of the fiscal year underreview, and it has applied the new accounting policy provided for by the Implementation Guidanceon Accounting Standard for Fair Value Measurement prospectively in accordance with thetransitional measures provided for in paragraph 27-2 of the Implementation Guidance on AccountingStandard for Fair Value Measurement. This has no effect on the consolidated financial statements.
(Segment Information)
1. Overview of reportable segments
The Group’s reportable segments are components of the Group for which separate financial
information is available, and which are subject to regular review by the Board of Directors for the
purpose of making decisions about the allocation of managerial resources and assessing theirperformance.
The Group is composed of segments based on the products and services they handle, and their six
reportable segments are “Agriculture,” “Chemicals,” “Construction materials,” “Petroleum,”“Real estate” and “Transportation.” Each segment formulates comprehensive strategies andconducts business activities for the businesses that each of them controls (including thebusinesses of subsidiaries).
The primary products and/or business details of each reportable segment are as follows:
Agriculture ·······Compound fertilizers, phosphate fertilizers, agriculture-related materials, etc.
Chemicals ········Water treatment chemicals, functional materials, etc.
Construction
materials ··········Gypsum board
Petroleum ········Petroleum, etc.
Real estate········Real estate leasing, sale, etc.
Transportation ···Marine transportation, land transportation, etc.
From the fiscal year under review, to measure the operating results for each reportable segment
within the scope possible by management and gain a clearer understanding, part of the selling,
general and administrative expenses not allocated to each reportable segment have been allocatedto each segment in accordance with rational standards.
Segment information for the previous fiscal year has been created using the standards after thechange and included here.
2. Method for calculating amounts of net sales, profit or loss, assets, liabilities, and other items byreportable segment
The accounting method for reportable segments follows that used to prepare the consolidated
financial statements.
Profit figures for reportable segments are based on operating profit.
Intersegment revenue or transfers are based on actual market prices.

- 13 -

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

3. Information on amounts of net sales, profit or loss, assets, liabilities, and other items for eachreportable segment and information on disaggregation of revenue
Fiscal year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)(Millions of yen)
Reportable segments

Agriculture Chemicals

Net sales
Agriculture
Water treatment
chemicals
Functional
materials
Construction
materials
Petroleum
Real estateTransportation
Others11,521
–
–

–
9,340
5,489

ConstrucTransportion
Petroleum Real estatetationmaterials

–
–

–
–

–
–

–
–

–

–

–

–

–

–

–

Total

11,521
9,340
5,489

Consolidated
financial
Adjustments
statement(Note 1)amounts(Note 2)

–
–
–

9,340
5,489

–

–

–
–
–
–

–
–
–
194

–
–
–
–

2,176
–
–
–

–
18
–
–

–
–
2,540
–

2,176
18
2,540
194

–
–
–
–

2,176
18
2,540
194

Revenue fromcontracts withcustomers

11,521

15,024

3,115

2,176

18

2,540

34,396–34,396

Other revenue(Note 3)

–

–

–

26

1,317

106

1,449

–

1,449

11,521

15,024

3,115

2,202

1,335

2,646

35,846–35,846

–

53

–

148

75

533

811

(811)

–

11,521

15,078

3,115

2,351

1,411

3,180

36,657(811)

35,846

Segment profit(loss)

1,123

1,631

(155)

18

705

306

3,630

(878)

2,751

Segment assets

11,13810,081

2,209

979

6,421

6,101

36,932

13,39050,323

167

506

34

15

300

181

1,206

75

1,281

128

293

24

0

295

7

750

45

795

Sales to externalcustomers
Intersegment sales
or transfers
Total

OthersDepreciation
Increase inproperty, plant andequipment andintangible assets

3,115

3,115

–

11,521

Notes: 1. Adjustments are as follows.
(1) The adjustment to segment profit (loss) of negative ¥878 million represents corporate expenses,
etc. not allocated to each reportable segment.
(2) The adjustment to segment assets of ¥13,390 million represents corporate assets of ¥13,407 million
not allocated to each reportable segment. Corporate assets mainly consist of cash and deposits ofthe parent company, long-term investment funds (investment securities) and assets, etc. in theadministrative department.
(3) The adjustment to depreciation of ¥75 million represents the depreciation of corporate assets notallocated to each reportable segment.
(4) The adjustment to the increase in property, plant and equipment and intangible assets of ¥45
million represents an increase to corporate assets not allocated to each reportable segment.
2. Segment profit (loss) is adjusted with operating profit in the consolidated statement of income.
3. Other revenue consists of transactions included in the scope of the Accounting Standard for Lease
Transactions.

- 14 -

3,115

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

Fiscal year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(Millions of yen)
Reportable segments

Agriculture Chemicals

Net sales
Agriculture
Water treatment
chemicals
Functional
materials
Construction
materials
Petroleum
Real estateTransportation
Others

9,989
–
–

–
10,7284,822

ConstrucTransportion
Petroleum Real estatetationmaterials

–
–

–
–

–
–

–
–

–

–

–

–

–

–

–

Total

9,989
10,7284,822

Consolidated
financial
Adjustments
statement(Note 1)amounts(Note 2)–––

10,728
4,822

–

–

–
–
–
–

–
–
–
194

–
–
–
–

1,917
–
–
–

–
18
–
–

–
–
2,477
–

1,917
18
2,477
194

–
–
–
–

1,917
18
2,477
194

Revenue fromcontracts withcustomers

9,989

15,745

3,215

1,917

18

2,477

33,363–33,363

Other revenue(Note 3)

–

–

–

25

1,338

124

1,488

–

1,488

9,989

15,745

3,215

1,942

1,357

2,602

34,852–

34,852

–

59

–

133

74

488

756

(756)

–

9,989

15,804

3,215

2,076

1,432

3,090

35,608(756)

34,852

Segment profit(loss)

(423)

1,475

(315)

16

721

265

1,740

(827)

912

Segment assets

10,437

10,742

2,197

924

6,636

6,158

37,096

14,20351,299

157

442

4

14

297

166

1,081

66

1,147

511

844

34

11

647

24

2,073

73

2,146

Sales to externalcustomers
Intersegment sales
or transfers
Total

OthersDepreciation
Increase inproperty, plant andequipment andintangible assets

3,215

3,215

–

9,989

Notes: 1. Adjustments are as follows.
(1) The adjustment to segment profit (loss) of negative ¥827 million represents corporate expenses,
etc. not allocated to each reportable segment.
(2) The adjustment to segment assets of ¥14,203 million represents corporate assets of ¥14,218 million
not allocated to each reportable segment. Corporate assets mainly consist of cash and deposits ofthe parent company, long-term investment funds (investment securities) and assets, etc. in theadministrative department.
(3) The adjustment to depreciation of ¥66 million represents the depreciation of corporate assets notallocated to each reportable segment.
(4) The adjustment to the increase in property, plant and equipment and intangible assets of ¥73
million represents an increase to corporate assets not allocated to each reportable segment.
2. Segment profit (loss) is adjusted with operating profit in the consolidated statement of income.
3. Other revenue consists of transactions included in the scope of the Accounting Standard for Lease
Transactions.

- 15 -

3,215

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2023

(Per Share Information)
Fiscal year ended December 31, 2022
(from January 1, 2022
to December 31, 2022)
Net assets per share
Basic earnings per share
Notes:(Yen)
Fiscal year ended December 31, 2023
(from January 1, 2023
to December 31, 2023)

3,689.28

3,994.74

237.53156.86

1. The amount of diluted earnings per share is not provided because there are no potential shares.
2. The basis of calculating net assets per share is as follows:
Fiscal year ended December 31, 2022
(from January 1, 2022
to December 31, 2022)

Fiscal year ended December 31, 2023
(from January 1, 2023
to December 31, 2023)

32,05733,899

108

79

(108)

(79)

Net assets related to common stockat end of period (Millions of yen)

31,94833,819Number of shares of common stockat end of period used in thecalculation of net assets per share(Thousand shares)

8,659

8,466

Total net assets (Millions of yen)Amount to be deducted from total
net assets (Millions of yen)(of which, non-controlling interests(Millions of yen))

3. The basis for calculating basic earnings per share is as follows.
Fiscal year ended December 31, 2022
(from January 1, 2022
to December 31, 2022)

Fiscal year ended December 31, 2023
(from January 1, 2023
to December 31, 2023)

Profit attributable to owners ofparent (Millions of yen)

2,056

1,356

Amount not attributable toshareholders of common shares(Millions of yen)––

Profit attributable to owners ofparent related to common shares(Millions of yen)

2,056

1,356

Average number of shares
outstanding during the period(Thousand shares)

8,657

8,648

(Subsequent Events)
Not applicable

4. OtherFor details regarding the changing of officers on March 27, 2024, please refer to “Appointment of
Officers” disclosed today on the Company’s website (https://www.takichem.co.jp/).

- 16 -