Disclaimer: This document is an English translation of the original document in Japanese and has been
prepared solely for reference purposes. In the event of any discrepancy between thisEnglish translation and the original in Japanese, the original shall prevail in all respects.

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
[Japanese GAAP]May 11, 2022
Company name: NIHON TOKUSHU TORYO CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 4619
URL: https://www.nttoryo.co.jp
Representative: Hiroshi Onda, President, COO
Contact: Yosuke Rikitake, Corporate Officer, General Manager of Financial & Accounting Division and General
Manager of General Administration Division, Operation Planning & Coordination Group
Phone: +81-3-3913-6134
Scheduled date of ordinary general shareholders meeting: June 22, 2022
Scheduled date of commencing dividend payments:
June 23, 2022
Scheduled date of filing annual securities report:
June 22, 2022
Availability of supplementary explanatory materials on annual financial results: No
Schedule of annual financial results briefing session: Yes (for analysts and institutional investors)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 - March 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2022
54,779
14.1
1,482
72.6
2,625
9.2
1,300
(0.1)
March 31, 2021
48,004 (16.1)
858 (69.6)
2,403 (44.1)
1,301 (43.9)
Note: Comprehensive income Fiscal year ended March 31, 2022: ¥3,614 million [6.4%]
Fiscal year ended March 31, 2021: ¥3,396 million [49.7%]
Ratio of
DilutedRatio of
Basic earnings
Return on
ordinary profit
operating profit
earnings perper share
equityto total assets
to net sales
share
Fiscal year ended
Yen
Yen
%
%
%
59.90
–
3.0
3.4
2.7
March 31, 2022
March 31, 2021
59.27
–
3.1
3.3
1.8
Reference: Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2022: ¥369 million
Fiscal year ended March 31, 2021: ¥923 million(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

79,792As of March 31, 2022
75,502As of March 31, 2021
Reference: Equity As of March 31, 2022: ¥44,266 million
As of March 31, 2021: ¥42,566 million

49,72547,154Equity ratio

Net assets per share
%

Yen

55.5
56.4

2,038.07
1,961.12

(3) Consolidated Cash Flows
Cash and cash
equivalents
at end of period

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen

5,019
3,085

(1,266)(5,636)(1,699)
1,059

8,931
6,518

Fiscal year ended
March 31, 2022
March 31, 2021
2. Dividends
1stquarterend
Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
(forecast)

Annual dividends per share
2nd
3rd
Yearquarter- quarterend
end
end

Total

Total
dividends(annual)Payout ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–

17.00

–

21.00

38.00

833

64.1

2.0

–

18.00

–

22.00

40.00

872

66.8

2.0

–

20.00

–

22.00

42.00

28.5

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 March 31, 2023)(% indicates changes from the previous corresponding period.)
Basic
Profit attributable to
Net sales
Operating profit
Ordinary profit
earnings
owners of parent
per shareFirst half
Full year

Million yen%

28,600 14.0
61,000 11.4

Million yen%

850 499.3
3,000 102.4

Million yen

1,800
4,800

%

131.1
82.8

Million yen%

1,000 746.8
3,200 146.0* Notes:(1) Changes in significant subsidiaries during the period under review: No(Changes in specified subsidiaries resulting in changes in scope of consolidation)
Newly included: –(Company name: – )Excluded: –(Company name: – )(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No

Yen

46.05
147.36

(3) Total number of issued and outstanding shares (common shares)
1) Total number of issued and outstanding shares at the end of the period (including treasury shares):
March 31, 2022:
23,611,200 shares
March 31, 2021:
23,611,200 shares2) Total number of treasury shares at the end of the period:
March 31, 2022:
1,891,100 shares
March 31, 2021:
1,905,857 shares
3) Average number of shares during the period:
Year ended March 31, 2022:
Year ended March 31, 2021:

21,714,840 shares
21,960,512 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 - March 31,
2022)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating profit
Ordinary profit
ProfitFiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2022
38,2173.8(481)–
1,759 32.4
1,720
25.6
March 31, 2021
36,832 (17.0)(614)–
1,329 (37.1)
1,369 (16.3)

Fiscal year ended
March 31, 2022
March 31, 2021

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

78.89
62.10

(2) Non-consolidated Financial Position
Total assets––

Net assets

Million yen

As of March 31, 2022
55,642As of March 31, 2021
54,345(Reference) Equity: As of March 31, 2022: ¥32,373 million
As of March 31, 2021: ¥31,674 million

Equity ratio

Net assets per share

Million yen%

Yen32,37331,67458.2
58.3

1,484.15
1,453.25* These consolidated financial results are outside the scope of audit by certified public accountants or an audit firm.
* Explanation of the proper use of financial results forecast and other notes(Cautionary statement regarding forward-looking statements, etc.)
The forward-looking statements in this document, including the financial results forecast, are based on
information currently available to the Company and certain assumptions that the Company considers
reasonable, and the Company does not promise that it will achieve such results. Actual results may differ
significantly due to various factors. Please refer to “1. Overview of Operating Results, etc. (4) Future Outlook”
on page 3 of the attached materials for the assumptions used in forecasting financial results and precautionary
statements regarding the use of financial results forecasts.

Table of Contents of the Attachments
1. Overview of Operating Results, etc. ............................................................................................................. 2(1) Overview of Operating Results for the Fiscal Year under Review .......................................................... 2(2) Overview of Financial Position for the Fiscal Year under Review .......................................................... 3(3) Overview of Cash Flows for the Fiscal Year under Review .................................................................... 3(4) Future Outlook ......................................................................................................................................... 3(5) Basic Policy on Profit Allocation and Dividends for the Current and Following Fiscal Years ................ 4
2. Basic Policy on Selection of Accounting Standards ..................................................................................... 4
3. Consolidated Financial Statements and Principal Notes ............................................................................... 5(1) Consolidated Balance Sheet ..................................................................................................................... 5(2) Consolidated Statements of Income and Comprehensive Income ........................................................... 7(3) Consolidated Statement of Changes in Net Assets .................................................................................... 9(4) Consolidated Statement of Cash Flows ................................................................................................. 11(5) Notes to Consolidated Financial Statements .......................................................................................... 12(Notes on going concern assumption) .................................................................................................... 12(Changes in accounting policies) ............................................................................................................ 12(Segment information) ............................................................................................................................ 13(Per share information) ........................................................................................................................... 16(Significant subsequent events) .............................................................................................................. 16-1-

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
In the fiscal year ended March 31, 2022 (the “fiscal year under review”), the Japanese economy showed signsof a gradual recovery as the normalization of economic activities gradually developed due to progress invaccination against COVID-19. However, there are strong concerns about the re-spread of infectious diseases
caused by new variants of COVID-19, and the outlook for the economy remained even more uncertain due tosoaring raw material prices, global semiconductor shortages, and supply chain stagnation, in addition to theimpact of the situation in Ukraine on the economy.
Under these circumstances, NIHON TOKUSHU TORYO CO., LTD. (the “Company”) and its subsidiaries(collectively, the “Group”) have been striving to enhance its corporate value by focusing on strengthening its
revenue base, developing new technologies and products, and promoting sustainability management, as set
forth in the basic strategies of the new medium-term management plan, while taking thorough measures toprevent the spread of COVID-19.
As a result, in the fiscal year under review, net sales totaled 54,779 million yen (up 14.1% year on year), a
significant recovery from the previous year.
On the profit front, operating profit was 1,482 million yen (up 72.6% year on year) due to the recovery in
net sales and the promotion of cost reduction activities and expense reduction measures, despite the impact ofsoaring raw material prices and other factors. Ordinary profit totaled 2,625 million yen (up 9.2% year onyear) due to the impact of share of profit of entities accounted for using equity method and foreign exchange
fluctuations, and profit attributable to owners of the parent totaled 1,300 million yen (down 0.1% year onyear).
Performance by reportable segment is as follows (sales for each segment exclude inter-segment net sales).
Paints & coatings-related businessWith domestic demand on the road to recovery, sales of paints for buildings and structures, especiallywaterproofing materials, our main product line, remained steady. In particular, construction-related sales,such as large-scale renovation work for condominiums, increased by 81.5% year on year, contributing
significantly to the increase in both sales and profit. In addition, amid the impact of soaring raw material
prices, the Company thoroughly implemented cost reduction activities and cost-cutting measures, andreviewed the selling prices of some products.
As a result, net sales for the paints & coatings-related segment totaled 19,351 million yen (up 30.3% year
on year), while segment profit totaled 373 million yen (up 87.0% year on year).
Automotive products-related businessAlthough the outlook remained uncertain due to the global shortage of semiconductors and supply chain
disruptions, including the impact of COVID-19, among automobile manufacturers, which are the Company’s
major customers, sales increased mainly in sound-absorbing, sound-insulation materials due to a certain levelof demand recovery. In this segment, the Company has also promoted multifaceted cost reduction activities
and expense reduction measures in order to build an efficient production system amid the impact of soaring
raw material prices.
As a result, net sales for the automotive products-related segment totaled 35,412 million yen (up 6.8% year
on year), while segment profit totaled 1,100 million yen (up 69.2% year on year).
Other businessNet sales of the insurance agency business totaled 15 million yen (down 0.3% year on year).

-2-(2) Overview of Financial Position for the Fiscal Year under Review
Total assets
The Company’s total assets as of the end of the fiscal year under review increased by 4,289 million yen year
on year to 79,792million yen. This was primarily due to an increase in cash and deposits of 2,412 million yen,a decrease in notes and accounts receivable – trade of 11,093 million yen, an increase in accounts receivable– trade of 10,272 million yen, an increase in contract assets of 2,737 million yen, an increase in work inprocess of 992 million yen, and a decrease in property, plant and equipment of 1,947 million yen. As
described in “3. Consolidated Financial Statements and Principal Notes (5) Notes to Consolidated Financial
Statements (Changes in accounting policies),” due to the adoption of the Revenue Recognition AccountingStandard, etc. “notes and accounts receivable - trade,” which were presented under “current assets” in the
consolidated balance sheets for the previous fiscal year, are separately presented in “notes receivable - trade,”“accounts receivable – trade,” and “contract assets” in the consolidated balance sheets from the fiscal year
under review.
Liabilities
Total liabilities increased by 1,719 million yen year on year to 30,066 million yen. This was primarily due toan increase in notes and accounts payable - trade of 1,485 million yen.
Net assets
Net assets increased by 2,570 million yen year on year to 49,725 million yen. This was primarily due to anincrease in retained earnings of 482 million yen, an increase in foreign currency translation adjustment of
1,339 million yen, and an increase in non-controlling interests of 870 million yen. The equity ratio decreased
by 0.9% to 55.5%.

(3) Overview of Cash Flows for the Fiscal Year under Review
Cash and cash equivalents (hereafter referred to as “funds”) at the end of the fiscal year under review
increased by 2,412 million yen to 8,931 million yen.
Funds from operating activities resulted in an inflow of 5,019 million yen (up 1,934 million yen year onyear). This was primarily due to the recording of profit before income taxes of 3,074 million yen, an increasein trade receivables of 1,505 million yen, an increase in trade payables of 1,296 million yen, interest anddividends received of 1,426 million yen, and income taxes paid of 800 million yen.
Funds from investing activities resulted in an outflow of 1,266 million yen (down 4,369 million yen year
on year). This was primarily due to purchase of property, plant and equipment and intangible assets of 2,240
million yen and proceeds from sale of investment securities of 533 million yen.
Funds from financing activities resulted in an outflow of 1,699 million yen (up 2,758 million yen year onyear). This was primarily due to proceeds from long-term borrowings of 1,000 million yen, repayments oflong-term borrowings of 1,552 million yen, and dividends paid of 847 million yen.
(4) Future Outlook
With regard to the outlook for the future, while there are expectations for normalization of economic
activities and a self-sustaining recovery of the economy amid the ongoing global outbreak of COVID-19, thetiming when COVID-19 will be contained is still uncertain. Economic trends are also expected to remain
uncertain, as there is an increasing risk of further rises in raw material prices affected by the situation in
Ukraine, stagnation in supply chains, and the global shortage of semiconductors, which will put downward
pressure on corporate earnings.
In the Company’s paints & coatings-related business, the business environment is expected to remainchallenging due to further intensifying market competition amid a certain degree of ongoing weakness incorporate earnings and personal consumption as well as the impact of COVID-19, combined with cost
increases due to soaring raw material prices and other factors.
In the automotive products-related business, although the future outlook remains uncertain, a steadyrecovery in customer demand is expected through the second half of the fiscal year ending March 31, 2023
due to an increase in automobile production volume. On the other hand, there is an urgent need to address
cost-increasing factors, such as soaring raw material prices, and to strengthen and stabilize the supply chain.
In addition, in recent years, there has been a strong demand in both businesses to place greater emphasis on
sustainable growth, including addressing environmental challenges to become carbon neutral.
In view of this business environment, based on the basic strategies set forth in the new medium-term
management plan, the Group will strive to build a stable revenue base that can withstand changes in the-3-external environment and establish an efficient business structure that can respond appropriately to changes.
In addition, the Company will further enhance the management foundation for sustainable growth bypromoting sustainability management focusing on “sustainability,” including strengthening the developmentof new technologies and new products focusing on functionality, weight reduction, and environmental
responsiveness, which are the Company’s strengths.
The Company’s performance forecasts for the fiscal year ending March 31, 2023 estimate that net sales
will reach 61,000 million yen (up 11.4% year on year) based on demand forecasts for each business segment.
On the profit front, the Company takes into account developments in raw material prices and foreignexchange trends and progress of various initiatives designed to improve productivity, and currently forecasts
operating profit of 3,000 million yen (up 102.4% year on year), ordinary profit of 4,800 million yen (up82.8% year on year), and profit attributable to owners of the parent of 3,200 million yen (up 146.0% year onyear).
The outlook for business performance by reportable segment is as follows.
(Million yen)
Net sales

Segment profit

YoY change
Paints & coatings-related
business
Automotive productsrelated businessYoY change

17,500(9.6)%

200(46.5)%

43,500

22.8%

2,800

154.3%

With respect to the revision of market classification on Tokyo Stock Exchange, Inc. in April 2022, theCompany has chosen to list its shares on the Prime Market. As of the transition reference date (June 30, 2021),
the Company did not meet the criteria for “tradable shares market capitalization” on the Prime Market, so theCompany has set the period through the fiscal year ending March 31, 2025 as the planning period, and is
promoting various efforts to improve market capitalization and the ratio of tradable shares.
The Company will focus on achieving the goals of the medium-term management plan, which ends in thefiscal year ending March 31, 2025, while striving to sustainably enhance the Company’s corporate value andcomply with the criteria for maintaining the Company’s listing.

(5) Basic Policy on Profit Allocation and Dividends for the Current and Following Fiscal Years
We pursue the substantial return of profit to our shareholders by strengthening profitability and maintaining asound financial condition focused on cash flow, which has been positioned as an important management taskof the Company.
On the other hand, the management environment surrounding the business of the Group is experiencing
major changes such as price competition as well as intensifying competition in development of high valueadded paints with environmental and other measures, automobile technological innovation including
electrification, and advancement of globalization in automobile production. To maintain competitiveness andimprove profitability in the future, we must aggressively and continually make R&D and capital investment
for new products and technologies, investment in overseas businesses for globally enhancing technical andproductive abilities, and furthermore, investment in human resources who will serve as the foundation of theabove.
Accordingly, based on the medium- to long-term management plan, with a focus placed on maintaining
stable dividends and increasing internal funds for strategic investment described above, the distribution of
profits is decided in comprehensive consideration of factors such as financial condition, profit levels, and thepayout ratio as the Company’s basic policy. Based on the above policy, we plan to pay a year-end dividend of
22 yen per share for the fiscal year under review. As a result, the annual dividend per share, including aninterim dividend of 18 yen, will be 40 yen per share.
For the fiscal year ending March 31, 2023, we expect to pay an annual dividend of 42 yen per share,including an interim dividend of 20 yen per share and a year-end dividend of 22 yen.

2. Basic Policy on Selection of Accounting Standards
The Group intends to prepare consolidated financial statements based on Japanese accounting standards for thetime being to facilitate comparability between periods and with other companies. However, going forward, theCompany will consider applying international accounting standards depending on various circumstances insideand outside Japan.
-4-3. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes receivable - trade
Electronically recorded monetary claims -operating
Accounts receivable - trade
Contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Income taxes refund receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

As of March 31, 2022

6,535
11,093
－
3,102
－
－
1,392
417
1,179
167
1,529
(4)
25,414

8,948
－
792
2,987
10,662
2,347
1,824
1,409
1,431
－
1,456
(3)
31,857

8,855
8,751
4,710
2,509
2,192
27,01810,028
8,481
4,703
483
1,374
25,071

1,244
1,244

1,265
1,265

18,762
1,410
129
1,571
(50)
21,82450,08775,502

18,255
1,504
99
1,793
(55)
21,59747,934
79,792

(Million yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Retirement benefit liability
Deferred tax liabilities
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
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

As of March 31, 2022

7,164
3,250
5,608
6
238

8,649
3,376
5,617
6
601

102

72

3,405
19,775

3,949
22,273

3,667
12
3,520
1,260
111
8,571
28,347

3,209
17
3,313
1,147
105
7,792
30,066

4,753
4,190
30,064(1,119)37,8884,753
4,194
30,547(1,112)38,383

5,149
(636)
165
4,677
4,588
47,15475,502

4,989
702
191
5,883
5,458
49,72579,792

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Subsidies for employment adjustment
Foreign exchange gains
Rental income from real estate
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of leasehold contracts
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Insurance claim income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on sale of investment securities
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

For the fiscal year
ended March 31, 2021
48,00438,263
9,741
8,882
858

For the fiscal year
ended March 31, 2022
54,77944,298
10,480
8,998
1,482

88
200
140
－
51

88
206
72
285
53

923

369

247
1,651

146
1,222

72
12
21
106
2,403

56
－
23
79
2,625

7
3
378
388

294
14
239
547

71
0
71
2,720
724
143
868
1,852
551
1,301

98
－
98
3,074
1,133
(45)
1,088
1,986
685
1,300

-7-

Consolidated Statements of Comprehensive Income(Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the fiscal year
ended March 31, 2021
1,852

For the fiscal year
ended March 31, 2022
1,986

1,798
(41)
207

(159)
849
22

(421)

915

1,543
3,396

1,627
3,614

2,874

2,506

521

1,107

-8-

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2021

Share capital Capital surplus
Balance at beginning of period

4,753

4,237

(Million yen)

Shareholders’ equity
Retained
Treasury sharesearnings
29,602

Total shareholders’equity(748)

37,845

Cumulative effects of changes inaccounting policies
Restated balance

－
4,753

4,237

29,602(748)

37,845

Changes during period
Dividends of surplus(839)

Change in ownershipinterest of parent due totransactions with noncontrolling interests
Profit attributable to ownersof parent

(839)

(46)

(46)
1,301

1,301

Purchase of treasury shares

(371)

(371)

Disposal of treasury shares－

Net changes in items otherthan shareholders’ equity－

Total changes during period

－

(46)

461

(371)

43

Balance at end of period

4,753

4,190

30,064(1,119)37,888

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

3,333

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets

(43)

3,104

4,112

45,062(185)

Cumulative effects of changes inaccounting policies
Restated balance

－
3,333

(185)

(43)

3,104

4,112

45,062

Changes during period
Dividends of surplus
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items otherthan shareholders’equity

－

(839)

－

(46)

－

1,301

－

(371)

－

－

1,816

(451)

208

1,573

Total changes during period

1,816

(451)

208

1,573

475

2,091

Balance at end of period

5,149

(636)

165

4,677

4,588

47,154

-9-

475

2,048

For the fiscal year ended March 31, 2022

(Million yen)

Share capital Capital surplus
Balance at beginning of period

4,753

Shareholders’ equity
Retained
Treasury sharesearnings

4,190

30,064

Cumulative effects of changes inaccounting policies
Restated balance

Total shareholders’equity(1,119)37,888

32
4,753

4,190

32

30,097(1,119)37,921

Changes during period
Dividends of surplus

(850)

(850)

Change in ownership interestof parent due totransactions with noncontrolling interests－

Profit attributable to owners ofparent

1,300

1,300

Purchase of treasury shares
Disposal of treasury shares

3

(2)

(2)

10

14

Net changes in items otherthan shareholders’ equity－

Total changes during period

－

3

450

7

461

Balance at end of period

4,753

4,194

30,547(1,112)38,383Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets

165

4,677

4,588

47,154

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning period

5,149

Foreigncurrencytranslation
adjustment(636)

Cumulative effects of changes inaccounting policies
Restated balance

32
5,149

(636)

165

4,677

4,588

47,186

Changes during period

－

(850)

－

－

－

1,300

Purchase of treasury shares－(2)

Disposal of treasury shares－

14

Dividends of surplus
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Profit attributable to ownersof parent

Net changes in items otherthan shareholders’ equity

(160)

1,339

26

1,206

870

2,076

Total changes during period

(160)

1,339

26

1,206

870

2,538

Balance at end of period

4,989

702

191

5,883

5,458

49,725- 10 -

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in retirement benefit liability
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale of non-current assets
Loss (gain) on disposal of non-current assets
Loss (gain) on sale of investment securities
Insurance claim income
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment andintangible assets
Proceeds from sale of property, plant and equipment andintangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Loan advances
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
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- 11 -For the fiscal year
ended March 31, 2022

2,720
3,654
(96)
4
(288)
72

3,074
3,198
(166)
4
(294)
56

(923)

(369)

(7)
71
(378)
(3)
(670)
60
(168)
(1,031)
3,015
1,135
(101)
3
(976)
8
3,085

(293)
97
(239)
(14)
(1,505)
(615)
1,296
35
4,265
1,426
(54)
14
(800)
168
5,019

(5,155)(2,240)

13

311

(8)
482
(1,058)154(63)(5,636)

(9)
533
(5)
43
100
(1,266)

3,899
100(1,603)
(369)
(839)
(18)

29
1,000
(1,552)
(0)
(847)
(325)

(62)

－

(47)
1,059
45
(1,446)
7,964
6,518

(2)
(1,699)
358
2,412
6,518
8,931

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Changes in accounting policies)(Application of Revenue Recognition Accounting Standard)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020; hereinafter “Revenue Recognition Accounting Standard”) and other standards from the
beginning of the fiscal year under review. The Company recognizes revenue when control of a promised goodor service is transferred to a customer in an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those goods and services.
The major effects of the adoption of this accounting standard on the consolidated financial statements forthe fiscal year under review are as follows.
 Mold transactions
For mold-related costs that are recovered from customers over a certain period of time, the Company
previously recorded net sales and cost of sales according to the relevant period, but has changed to recording
net sales and cost of sales at a single point in time when specific requirements are met.
 Consideration paid to customers
Sales rebates, which are consideration paid to customers, were previously treated as selling, general andadministrative expenses, but are now reduced from the transaction price.
 Repurchase agreement
For the paid-in transactions in which the Group is the supplier, we used to recognize the extinguishment of
the paid-in supplies, but we have changed the method to not recognize the extinguishment of such supplies
when we are obligated to repurchase the supplied goods. In addition, we previously recognized theconsideration received from the suppliers as revenue, but have changed to a method whereby such revenue is
not recognized. Furthermore, for transactions in which the Group receives payment from a supplier, wepreviously recognized net sales and cost of sales upon selling back to the supplier, but have changed torecognizing only the amount equivalent to the processing fee as revenue on a net amount basis.
 Agency transactions
For transactions in which the Group’s role in the sale to a customer is that of an agent, we previously
recognized as revenue the gross consideration received from the customer, but have changed to recognizing
revenue as the net amount of such gross consideration minus the amount paid to the third party.
The Company applies the Revenue Recognition Accounting Standard, etc., in accordance with thetransitional treatment provided for in the proviso to Paragraph 84 of the Revenue Recognition AccountingStandard. The cumulative impact of retrospectively applying the new accounting policies to prior periods isadjusted to retained earnings at the beginning of the fiscal year under review, with the new accounting
policies applied from the beginning balance.
The cumulative impact of this change has been reflected on net assets at the beginning of the fiscal year
under review. As a result, the beginning balance of retained earnings increased by 32 million yen. In addition,compared with the figures before the application of the Revenue Recognition Accounting Standard, etc., net
sales increased by 371 million yen, cost of sales decreased by 95 million yen, selling, general andadministrative expenses decreased by 65 million yen, and operating profit, ordinary profit, and profit before
income taxes increased by 533 million yen.
Due to the adoption of the Revenue Recognition Accounting Standard, “notes and accounts receivable trade,” which were presented under “current assets” in the consolidated balance sheets for the previous fiscal
year, are presented in “notes receivable - trade,” “accounts receivable – trade,” and “contract assets” in the
consolidated balance sheets from the fiscal year under review. In accordance with the transitional treatment
set forth in Paragraph 89-2 of the Revenue Recognition Accounting Standard, figures for the previous fiscal
year have not been reclassified based on the new presentation method.
(Application of Fair Value Measurement Standard)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019; hereinafter “Fair Value Measurement Standard”) and other standards from the beginning of the
fiscal year under review, and will prospectively apply the new accounting policies stipulated by the Fair
- 12 -

Value Measurement Standard, etc., in accordance with the transitional treatment provided in Paragraph 19 of
the Fair Value Measurement Standard and Paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). This does not affect the consolidated financial
statements.
(Segment information)
1. Overview of reportable segments
The Company’s reportable segments are components of the Company for which segregated financial
information is available, and are subject to regular review by the Board of Directors to determine how toallocate management resources and evaluate performance.
The Company has established the Paints & Coatings Group and the Automotive Products Group at its head
office, and formulates comprehensive domestic and overseas strategies for the products and services it
handles with the two groups operating business activities in cooperation with subsidiaries and affiliates intheir respective business domains.
As such, the Company comprises individual product and service segments based on each group, and has
two reportable segments, the paints & coatings-related business and the automotive products-related business.
The paints & coatings-related business covers primarily the manufacture and sale of paints and coatings, aswell as contract construction work. The automotive products-related business focuses largely on the
manufacture and sales of automotive parts, such as soundproofing materials and anti-corrosive coatings forautomobiles.
2. Method for calculating the monetary totals for net sales, profit or loss, assets or liabilities, and other items byreportable segment
The accounting method used for reportable business segments are generally the same as those used in the
preparation of the consolidated financial statements. Segment profit is based on operating profit. Intersegment net sales and transfers are based on prevailing market prices.

- 13 -

3. Information on net sales, profit or loss, assets or liabilities and other items by reportable segment
Fiscal year ended March 31, 2021
(Million yen)
Reportable segment

Net sales
Net sales tooutsidecustomers
Inter-segment net
sales or transfers
Total
Segment profit
Segment assets
Other items
Depreciation
Share of profit ofentities
accounted forusing equity
methodInvestment inentities
accounted forusing equity
methodIncrease inproperty, plantand equipment
and intangible
assets

Notes:

Adjustment(Note 2)

Consolidation(Note 3)48,004-48,004

-

3

(3)

-

47,993850
59,47915
857

48,008858
59,537(3)
15,96448,004858
75,502

3,398

3,653

-

3,653

-

3,653

26

897

923

-

923

-

923

265

9,590

9,856

-

9,856

-

9,856

368

3,872

4,240

-

4,240

115

4,356

Other
(Note 1)

Paints & coatingsrelated

Automotive
productsrelated

Total

14,84633,14347,989

15

3

-

3

14,849199
10,67433,143650
48,804254

Total

1. “Other” represents businesses not included in reportable segments, namely, the insurance
agency business.
2. “Adjustment” consists of the following.
Adjustment of segment assets of 15,964 million yen and the increase in property, plant andequipment and intangible assets of 115 million yen comprise company-wide assets notallocated to individual reportable segments. Company-wide assets consist mainly of theCompany’s surplus funds (cash and cash equivalents, etc.), funds for longer-term
investments and loans (investment securities, etc.) and assets relating to the Company’s
management departments.
3. Segment profit is adjusted with operating profit on the consolidated statements of income.

- 14 -

Fiscal year ended March 31, 2022

(Million yen)

Reportable segment
Automotive
Paints & coatingsproductsrelated
relatedNet sales
Net sales tooutsidecustomers
Inter-segment net
sales or transfers
Total
Segment profit
Segment assets
Other items
Depreciation
Share of profit ofentities
accounted forusing equity
methodInvestment inentities
accounted forusing equity
methodIncrease inproperty, plantand equipment
and intangible
assets

Notes:

Others(Note 1)

Total

Total

Adjustment(Note 2)

Consolidation(Note 3)

19,35135,412

54,763

15

54,779-54,779

3

-

3

-

3

(3)

-

19,355373
12,71335,412
1,100
50,83654,767
1,474
63,55015
7
6154,782
1,482
63,611(3)
16,18054,7791,482
79,792

272

2,923

3,196

-

3,196

-

3,196

57

312

369

-

369

-

369

318

9,783

10,101-

10,101-

10,101

473

1,811

2,284

-

2,284

16

2,301

1. “Other” represents businesses not included in reportable segments, namely, the insurance
agency business.
2. “Adjustment” consists of the following.
Adjustment of segment assets of 16,180 million yen and the increase in property, plant andequipment and intangible assets of 16 million yen comprise company-wide assets notallocated to individual reportable segments. Company-wide assets consist mainly of theCompany’s surplus funds (cash and cash equivalents, etc.), funds for longer-term
investments and loans (investment securities, etc.) and assets relating to the Company’s
management departments.
3. Segment profit is adjusted with operating profit on the consolidated statements of income.

- 15 -

(Per share information)
Fiscal year ended
March 31, 2021
Net assets per share (Yen)
1,961.12
Basic earnings per share
59.27
Diluted earnings per share is not presented because there
were no potential shares.

Fiscal year ended
March 31, 2022
Net assets per share (Yen)
2,038.07
Basic earnings per share
59.90
Diluted earnings per share is not presented because there
were no potential shares.

Note: Basis of calculation
1. The basis for calculating net assets per share is as follows.
As of March 31, 2021
Total of net assets section
47,154(Million yen)Amount deducted from the total
4,588
of net assets (Million yen)[of which, share acquisitionrights][of which, amount attributable
to non-controlling[4,588]shareholders]
Net assets pertaining to common
42,566
shares (Million yen)
Number of common shares used
to calculate net assets per share
21,705(Thousand shares)
2. The basis for calculating earnings per share is as follows.
Fiscal year ended
March 31, 2021
Basic earnings per share (Yen)

As of March 31, 2022
49,7255,458[5,458]44,266
21,720Fiscal year ended
March 31, 2022

Profit attributable to owners ofparent (Million yen)

1,301

1,300

Amount not attributable tocommon shareholders (Million
yen)

-

-

Profit attributable to owners ofparent relating to commonshares (Million yen)

1,301

1,300

Average number of commonshares during the period(Thousand shares)

21,96021,714--

Diluted earnings per share (Yen)(Significant subsequent events)
Not applicable.

- 16 -