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, 2023
[Japanese GAAP]May 10, 2023
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, 2023
Scheduled date of commencing dividend payments:
June 23, 2023
Scheduled date of filing annual securities report:
June 22, 2023
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, 2023 (April 1, 2022 - March 31, 2023)(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, 2023
60,738
10.9
1,631
10.0
3,141
19.7
2,103
61.7
March 31, 2022
54,779
14.1
1,482
72.6
2,625
9.2
1,300
(0.1)
Note: Comprehensive income Fiscal year ended March 31, 2023: ¥3,762 million [4.1%]
Fiscal year ended March 31, 2022: ¥3,614 million [6.4%]
DilutedRatio ofRatio of
Basic earnings
Return on
earnings per
ordinary profit
operating profit
per share
equityshare
to total assets
to net sales
Fiscal year ended
Yen
Yen
%
%
%
96.77
–
4.6
3.9
2.7
March 31, 2023
March 31, 2022
59.90
–
3.0
3.4
2.7
Reference: Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2023: ¥983 million
Fiscal year ended March 31, 2022: ¥369 million(2) Consolidated Financial Position
Total assets
Million yen

Net assets

82,033As of March 31, 2023
79,792As of March 31, 2022
Reference: Equity As of March 31, 2023: ¥46,193 million
As of March 31, 2022: ¥44,266 million

Equity ratio

Net assets per share

Million yen%

Yen

52,21149,72556.3
55.5

2,125.01
2,038.07

(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

Fiscal year ended
March 31, 2023
March 31, 2022

6,198
5,019

(1,588)(1,266)

Million yen(2,818)(1,699)10,8538,931

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

1st
quarterend
Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(forecast)

Total

Total
dividends(annual)Payout ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–

18.00

–

22.00

40.00

872

66.8

2.0

–

20.00

–

22.00

42.00

917

43.4

2.0

–

21.00

–

23.00

44.00

43.5

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 March 31, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners of parent
per shareFirst half
Full year

Million yen

30,30062,500%

8.5
2.9

Million yen

600
2,000

%

–
22.6

Million yen

1,300
3,450

%

33.7
9.8

Million yen

850
2,200

%

150.4
4.6

* 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: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No

Yen

39.10
101.17

(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, 2023:
23,611,200 shares
March 31, 2022:
23,611,200 shares2) Total number of treasury shares at the end of the period:
March 31, 2023:
1,873,135 shares
March 31, 2022:
1,891,100 shares
3) Average number of shares during the period:
Year ended March 31, 2023:
Year ended March 31, 2022:

21,731,534 shares
21,714,840 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 - March 31,2023)(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%
43,07312.7(405)–
1,979 12.5
2,238
30.1
March 31, 2023
March 31, 2022
38,2173.8(481)–
1,759 32.4
1,720
25.6

Fiscal year ended
March 31, 2023
March 31, 2022

Basic earnings per
share
102.5778.89

Diluted earnings
per shareYen(2) Non-consolidated Financial Position
Total assets

Yen

–
–

Net assets

Million yen

56,274As of March 31, 2023
55,642As of March 31, 2022
(Reference) Equity: As of March 31, 2023: ¥32,996 million
As of March 31, 2022: ¥32,373 million

Equity ratio

Net assets per share

Million yen%

Yen

32,99632,373

58.6
58.2

1,511.21
1,484.15* 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 tovarious factors. Please refer to “1. Overview of Operating Results, etc. (4) Future Outlook” on page 3 of theattached 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 Sheets ........................................................................................................ 5(2) Consolidated Statements of Income and Comprehensive Income ................................................ 7(3) Consolidated Statements of Changes in Net Assets ........................................................................ 9(4) Consolidated Statements of Cash Flows ..................................................................................... 11(5) Notes to Consolidated Financial Statements ............................................................................... 12(Notes on going concern assumption) ......................................................................................... 12(Segment information) ................................................................................................................. 12(Per share information) ................................................................................................................ 15(Significant subsequent events) ................................................................................................... 15-1-

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
In the fiscal year ended March 31, 2023 (the “fiscal year under review”), the Japanese economy showed signsof the normalization of economic activities due to the progress in measures to prevent the spread of COVID19. However, the outlook for the economy remained uncertain primarily due to soaring prices of raw
materials and energy caused by the lingering situation in Ukraine, concerns about economic slowdown
resulting from global monetary tightening, and rapid foreign exchange fluctuations.
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 60,738 million yen (up 10.9% year on year), a
steady increase from the previous year.
On the profit front, operating profit was 1,631 million yen (up 10.0% year on year) due to the recovery in
net sales, despite the impact of soaring prices of raw materials and energy and other factors. Ordinary profit
totaled 3,141 million yen (up 19.7% year on year) 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 parent totaled
2,103 million yen (up 61.7% year on year).
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 and floor coatings, our main product line, remained steady. In addition, constructionrelated sales, such as large-scale renovation work for condominiums, increased by 6.1% year on year,
continuing business expansion. Accordingly, net sales for the paints & coatings-related segment totaled
20,565 million yen (up 6.3% year on year).
On the profit front, the Company has been reviewing sales prices for certain products such as paints forbuildings and structures while continuously making multifaceted efforts to lower cost prices, but the impact
of soaring prices of raw materials and energy exceeded these efforts. Accordingly, segment loss totaled 113
million yen (segment profit of 373 million yen in the previous fiscal year).
Automotive products-related business
Sales for this segment increased mainly in sound-absorbing, sound-insulation materials, and paints such as
anti-corrosive paints due to certain recovery of automobile production volume at the Company’s major
customers, despite remaining impacts such as global shortage of semiconductors and supply chain stagnation.
Accordingly, net sales for the automotive products-related segment totaled 40,157 million yen (up 13.4% year
on year).
On the profit front, this segment was also impacted by soaring prices of raw materials and energy and otherfactors, but backed by a recovery in net sales, segment profit totaled 1,737 million yen (up 57.8% year onyear).
Other businessNet sales of the insurance agency business totaled 15 million yen (down 0.4% 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 2,241 million yen year
on year to 82,033 million yen. This was primarily due to increases in cash and deposits of 1,922 million yen
and accounts receivable - trade of 1,318 million yen and a decrease in long-term loans receivable of 1,348
million yen.
Liabilities
Total liabilities decreased by 244 million yen year on year to 29,822 million yen. This was primarily due toan increase in notes and accounts payable - trade of 1,232 million yen and a decrease in borrowings of 1,466
million yen.
Net assets
Net assets increased by 2,486 million yen year on year to 52,211 million yen. This was primarily due to anincrease in retained earnings of 1,186 million yen, a decrease in valuation difference on available-for-salesecurities of 716 million yen, and an increase in foreign currency translation adjustment of 1,477 million yen.
The equity ratio increased by 0.8% to 56.3%.

(3) Overview of Cash Flows for the Fiscal Year under Review
Cash and cash equivalents (hereinafter referred to as “funds”) at the end of the fiscal year under review
increased by 1,922 million yen to 10,853 million yen.
Funds from operating activities resulted in an inflow of 6,198 million yen (up 1,178 million yen year onyear). This was primarily due to the recording of profit before income taxes of 3,694 million yen, an increasein trade receivables of 1,619 million yen, an increase in trade payables of 1,747 million yen, interest anddividends received of 1,504 million yen, and income taxes paid of 1,118 million yen.
Funds from investing activities resulted in an outflow of 1,588 million yen (down 322 million yen year onyear). This was primarily due to purchase of property, plant and equipment and intangible assets of 2,286
million yen and proceeds from sale of investment securities of 574 million yen.
Funds from financing activities resulted in an outflow of 2,818 million yen (down 1,119 million yen year
on year). This was primarily due to repayments of long-term borrowings of 1,456 million yen and dividends
paid of 912 million yen.
(4) Future Outlook
With regard to the outlook for the future, while there are expectations for the normalization of social andeconomic activities and a self-sustaining recovery of the economy amid the limited impact of COVID-19, theoutlook will remain uncertain due to sustained high prices of raw materials and energy caused by the situationin Ukraine, etc. and concerns about economic slowdown resulting from monetary tightening.
With such circumstances continuing, the Company’s paints & coatings-related business will increase its
earning power by promoting the development and sales expansions of high-value-added products while
continuously focusing on reviewing sales prices of paints for buildings and structures, etc. and lowering costprices.
In the automotive products-related business, although the future outlook remains uncertain, as a recovery
trend for automobile production is expected to continue mainly in the Japanese market, the Company will
strengthen its capability to address cost-increasing factors such as soaring costs of raw materials and energy,
and strive to strengthen and stabilize the supply chain to enhance productivity and profitability.
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 theexternal 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.

-3-

The Company’s performance forecasts for the fiscal year ending March 31, 2024 estimate that net sales
will reach 62,500 million yen (up 2.9% year on year) based on demand forecasts for each business segment.
On the profit front, the Company takes into account developments in prices of raw materials and energy,
foreign exchange trends, and progress of various initiatives designed to improve profitability andproductivity, and currently forecasts operating profit of 2,000 million yen (up 22.6% year on year), ordinary
profit of 3,450 million yen (up 9.8% year on year), and profit attributable to owners of parent of 2,200 million
yen (up 4.6% year on year).
The outlook for business performance by reportable segment is as follows.
(Million yen)
Net sales

Segment profit

YoY change
Paints & coatings-related
business
Automotive products-related
business

YoY change

18,300(11.0)%

250–

44,200

10.1%

1,750

0.7%

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 the Company has set the period through the fiscal year ending March 31, 2025 as the planning period, andis 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, and will continuously strive to enhance the Company’s corporate value
sustainably.

(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
further intensifying development competition for catering to the needs of customers and the age amid rapidly
advancing worldwide technological innovation including information and telecommunications technology.
The Group is also required to address various and complicated issues such as carbon neutrality and humanrights.
Under such environment, in order to maintain competitiveness and improve profitability in the future, wemust continue to develop high-value-added technology and products through aggressive R&D investments,
invest in tangible and intangible assets for enhancing productivity in consideration of their environmental
impacts, etc., and furthermore, invest in human resources who will underpin the Group’s sustainable growth.
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 underreview. As a result, the annual dividend per share, including an interim dividend of 20 yen, will be 42 yen per
share.
For the fiscal year ending March 31, 2024, we expect to pay an annual dividend of 44 yen per share,including an interim dividend of 21 yen per share and a year-end dividend of 23 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, 2022
AssetsCurrent assets
Cash and deposits
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, 2023

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

10,870694
3,362
11,980
2,456
1,670
888
1,583
37
2,470
(2)
36,013

10,028
8,481
4,703
483
1,374
25,071

10,234
7,732
4,679
466
1,187
24,299

1,265
1,265

1,247
1,247

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

18,423
156
88
1,863
(57)
20,47346,02082,033

(Million yen)
As of March 31, 2022
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, 2023

8,649
3,376
5,617
6
601

9,882
3,921
5,314
7
469

72

75

3,949
22,273

3,924
23,595

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

2,045
17
3,213
842
107
6,226
29,822

4,753
4,194
30,547(1,112)38,383

4,753
4,207
31,734(1,102)
39,592

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

4,273
2,180
147
6,601
6,017
52,211
82,033

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
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
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
Compensation income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Income taxes - refund
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-7-

For the fiscal year
ended March 31, 2023

54,77944,298
10,4808,998
1,482

60,73849,652
11,085
9,454
1,631

88
206
285
53

101
220
103
52

369

983

218
1,222

156
1,618

56
23
79
2,625

64
43
108
3,141

294
14
239
–
547

68
–
529
44
642

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

88
88
3,694
953
41
(128)
866
2,828
725
2,103

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, 2022
1,986

For the fiscal year
ended March 31, 2023
2,828

(159)
849
22

(725)
459
(42)

915

1,242

1,627
3,614

933
3,762

2,506

2,820

1,107

941

-8-

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2022

(Million yen)

Shareholders’ equity
Share capital

Capital surplus

Balance at beginning of
periodCumulative effects ofchanges inaccounting policies

4,753

4,190

Restated balance

4,753

Retainedearnings

30,064

Treasury shares

Total
shareholders’equity(1,119)37,88832
4,190

30,09732(1,119)37,921

Changes during period
Dividends of surplus

(850)

(850)

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity

1,300

1,300

Total changes during period
Balance at end of period

3

(2)

(2)

10

14
–

–

3

450

7

461

4,753

4,194

30,547(1,112)38,383

Valuationdifference on
available-forsale securities
Balance at beginning of
periodCumulative effects ofchanges inaccounting policies

5,149

Restated balance

5,149

Accumulated other comprehensive income
Foreign
Total accumulated
Remeasurements
currency
otherof defined benefit
translation
comprehensiveplans
adjustment
income

(636)

165

4,677

Non-controllinginterests

Total net assets

4,588

47,154
32

(636)

165

4,677

4,588

47,186

Changes during period
Dividends of surplus

–

(850)

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity

–

1,300

–

(2)

–

14

(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

49,725-9-

For the fiscal year ended March 31, 2023

(Million yen)
Shareholders’ equity

Share capital

Capital surplus

Balance at beginning of
periodCumulative effects ofchanges inaccounting policies

4,753

4,194

Restated balance

4,753

Retainedearnings

30,547

Treasury shares

Total
shareholders’equity(1,112)38,383–

4,194

30,547(1,112)38,383

Changes during period
Dividends of surplus

(916)

(916)

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity

2,103

2,103

Total changes during period
Balance at end of period

12

(2)

(2)

12

25
–

–

12

1,186

9

1,209

4,753

4,207

31,734(1,102)

39,592

Valuationdifference on
available-forsale securities
Balance at beginning of
periodCumulative effects ofchanges inaccounting policies

4,989

Restated balance

4,989

Accumulated other comprehensive income
Foreign
Total accumulated
Remeasurements
currency
otherof defined benefit
translation
comprehensiveplans
adjustment
income

702

191

5,883

Non-controllinginterests

Total net assets

5,458

49,725
–

702

191

5,883

5,458

49,725

Changes during period
Dividends of surplus

–

(916)

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity

–

2,103

–

(2)

–

25

(716)

1,477

(43)

717

559

1,277

Total changes during period

(716)

1,477

(43)

717

559

2,486

Balance at end of period

4,273

2,180

147

6,601

6,017

52,211- 10 -

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2022
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
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, 2023

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

3,694
3,179
(162)
0
(322)
64

(369)

(983)

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

(67)
87
(529)
–
(1,619)
551
1,747
106
5,748
1,504
(64)
–
(1,118)128
6,198(2,240)(2,286)

311

93

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

(10)
574
(7)
29
18
(1,588)29
1,000(1,552)
(0)
(847)
(325)
(2)
(1,699)
358
2,412
6,518
8,931

(11)
–
(1,456)
–
(912)
(435)
(2)
(2,818)
130
1,922
8,931
10,853

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(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 is generally the same as those used in the
preparation of the consolidated financial statements.
Segment profit is based on operating profit. Inter-segment net sales and transfers are based on prevailingmarket prices.

- 12 -

3. Information on net sales, profit or loss, assets or liabilities and other items by reportable segment
Fiscal year ended March 31, 2022
(Million yen)
Reportable segment
Paints &Automotive
coatings-related products-related
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:

Other(Note 1)

Total

Adjustment(Note 2)

Total

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.

- 13 -

Fiscal year ended March 31, 2023

(Million yen)

Reportable segment
Paints &Automotive
coatings-related products-related
Net sales
Net sales tooutsidecustomers
Inter-segment net
sales or transfers
Total
Segment profit(loss)
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:

Other(Note 1)

Total

Adjustment(Note 2)

Total

Consolidation(Note 3)

20,56540,15760,72315

60,738–60,738

3

–

3

–

3

(3)

–

20,56940,15760,72615

60,741(3)

60,738

(113)

1,737

1,623

7

1,631

–

1,631

13,17652,56865,74474

65,81916,21482,033

260

2,916

3,176

–

3,176

–

3,176

36

947

983

–

983

–

983

353

11,066

11,419–11,419–11,419

126

2,067

2,193

–

2,193

23

2,217

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 16,214 million yen and the increase in property, plant andequipment and intangible assets of 23 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 (loss) is adjusted with operating profit on the consolidated statements ofincome.

- 14 -

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

Fiscal year ended
March 31, 2023
Net assets per share (Yen)
2,125.01
Basic earnings per share (Yen)
96.77
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, 2022
Total of net assets section
49,725(Million yen)Amount deducted from the total
5,458
of net assets (Million yen)[of which, share acquisition–rights][of which, amount attributable
to non-controlling[5,458]shareholders]
Net assets pertaining to common
44,266
shares (Million yen)
Number of common shares used
to calculate net assets per share
21,720(Thousand shares)
2. The basis for calculating earnings per share is as follows.
Fiscal year ended
March 31, 2022
Basic earnings per share (Yen)

As of March 31, 2023
52,211
6,017–[6,017]
46,193
21,738

Fiscal year ended
March 31, 2023

Profit attributable to owners ofparent (Million yen)

1,300

2,103

Amount not attributable tocommon shareholders (Million
yen)

–

–

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

1,300

2,103

Average number of commonshares during the period(Thousand shares)

21,714

21,731––

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

- 15 -