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.

April 30, 2020

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2020
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

Konishi Co., Ltd.
Tokyo Stock Exchange4956
http://www.bond.co.jp/
Takashi Yokota, Representative Director and President
Shozo Arisawa, Director and Senior Managing Executive Officer, General Manager of
Administration DivisionTEL:+81-6-6228-2877
Scheduled date of annual general meeting of shareholders:June 23, 2020
Scheduled date to commence dividend payments:
June 24, 2020
Scheduled date to file annual securities report:
June 23, 2020
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (May be cancelled due to future
developments.)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2020 (from April 1, 2019 toMarch 31, 2020)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2020
March 31, 2019

Millions of yen% Millions of yen

135,180
134,139

Note: Comprehensive income

0.8
4.4

Reference:

7,115
7,031

% Millions of yen

1.2
(2.9)

7,248
7,182

% Millions of yen

0.9
(2.0)

4,585
4,404

%

4.1
(4.6)

¥3,492 million [(2.5)%]¥3,581 million [(35.1)%]

Diluted earnings
per share

Return on equity

Ordinary profit/
total assets

Operating profit/
net sales

Yen

%

%

%

7.8
7.8

6.8
6.8

5.3
5.2

Yen

126.47121.28

Profit attributable toowners of parent

Ordinary profit

For the fiscal year ended March 31, 2020:
For the fiscal year ended March 31, 2019:

Basic earnings
per share
Fiscal year ended
March 31, 2020
March 31, 2019

Operating profit––

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2020:
For the fiscal year ended March 31, 2019:¥19 million¥30 million

(2) Consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Net assets per share

As ofMarch 31, 2020
March 31, 2019

Millions of yen

Millions of yen%

Yen

106,113
108,40263,36060,913

56.6
53.2

1,658.28
1,592.21

Reference:

As of March 31, 2020:
As of March 31, 2019:

Equity¥60,070 million¥57,717 million(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2020
March 31, 2019

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

6,285
5,507

(3,924)(6,571)(1,833)(2,163)

22,812
22,263

2. Cash dividends
Annual dividends

Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
(Forecast)First
quarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Total

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

Yen Millions of yen

%

%

–

13.00

–

13.00

26.00

942

21.4

1.7

–

13.00

–

23.00

36.00

1,304

28.5

2.2

–

18.00

–

18.00

36.00

–

Note: Breakdown of fiscal year-end dividends for the fiscal year ended March 31, 2020:
Ordinary dividend ¥13.00, 150th anniversary commemorative dividend ¥10.00

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2021 (from April 1, 2020 toMarch 31, 2021)
Net sales

Six months ending
September 30, 2020
Fiscal year ending
March 31, 2021

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

Operating profit

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

%

Yen

66,200

1.5

3,070

0.3

3,130

0.2

1,980

0.6

54.61

139,000

2.8

7,180

0.9

7,260

0.2

4,620

0.7

127.42

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(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:None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

40,707,440 shares

As of March 31, 201940,707,440 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2020

4,482,594 shares

As of March 31, 2019

4,457,894 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2020

36,259,369 sharesFiscal year ended March 31, 2019

36,319,668 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2020 (from April 1, 2019 toMarch 31, 2020)(1) Non-consolidated operating results
Net sales
Fiscal year ended
March 31, 2020
March 31, 2019

Operating profit

Millions of yen% Millions of yen

93,53991,268

2.5
4.6

Basic earnings
per share
Fiscal year ended
March 31, 2020
March 31, 2019

(Percentages indicate year-on-year changes.)
Ordinary profit% Millions of yen

4,277
3,816

12.1
(6.0)

4,897
4,486

Profit% Millions of yen

9.2
(3.2)

3,560
3,147

%

13.1
(4.5)

Diluted earnings
per share
Yen

Yen

98.18
86.65

–
–

(2) Non-consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Net assets per share

As ofMarch 31, 2020
March 31, 2019

Millions of yen

Millions of yen%

Yen

91,37091,87549,45547,54754.1
51.8

1,365.23
1,311.67

Reference:

As of March 31, 2020:
As of March 31, 2019:

Equity¥49,455 million¥47,547 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 Forward-looking statements, including the earnings forecasts stated in these materials, are based on
information currently available to the Company and certain assumptions deemed reasonable. Results
may differ materially from the earnings forecasts due to various factors. For the assumptions used as
the basis for the earnings forecasts and special remarks regarding the use of the earnings forecasts,
please refer to “1. Overview of operating results, etc. (4) Future outlook” on page 4 of the financial
results report (Attached Material).
 The Company plans to hold a presentation meeting for institutional investors and analysts on May 27,
2020 (Wednesday), but it may be cancelled due to future developments. In that case, it will beannounced on the Company’s website.

Konishi Co., Ltd. (4956)

Attached Material
Index
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) Review of cash flow position for the fiscal year under review .......................................................... 4(4) Future outlook .................................................................................................................................... 4(5) Basic policy on profit distribution and dividends for fiscal 2020 and fiscal 2021 ............................. 5
2. Basic concept regarding 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(3) Consolidated statement of changes in equity ................................................................................... 10(4) Consolidated statement of cash flows .............................................................................................. 12(5) Notes on premise of going concern .................................................................................................. 14(6) Changes in significant accounting policies for preparation of consolidated financial statements .... 14(7) Notes to consolidated financial statements ....................................................................................... 14
Segment information, etc. ................................................................................................................ 14
Per share information ....................................................................................................................... 17
Omission of disclosure ..................................................................................................................... 17
Significant events after reporting period .......................................................................................... 17
4. Other ....................................................................................................................................................... 18
Changes in representatives and officers (Effective June 23, 2020) .................................................. 18
Reference: Supplementary Information on Financial Results for the Fiscal Year Ended March 31, 2020 ... 19-1-

Konishi Co., Ltd. (4956)

1. Overview of operating results, etc.
(1) Overview of operating results for the fiscal year under review
During the fiscal year ended March 31, 2020 (the fiscal year under review), the Japanese economy saw
continued improvement in the employment and income environments and a gradual recovery inconsumer spending. However, following the consumption tax increase implemented in October 2019, it
continued to lack robustness. Also, although corporate earnings remained steady, there were signs of
weakening, particularly in the manufacturing industry. While capital investment decreased in the
manufacturing industry, investment in non-manufacturing industries and software grew. The outlook
continues to be uncertain due to factors such as the economic impact of the spread of the novel
coronavirus (COVID-19), as well as trade issues between the US and China, a slowdown in the
Chinese economy, and the UK’s exit from the EU.
Regarding industries in which the Group is engaged, the housing industry continued to see weakening
in the number of new housing starts, but the civil engineering and construction industry saw firm
demand for redevelopment in urban areas and building repair and improvement work, as well as
demand for the maintenance and repair of infrastructure such as roads and rail. The automotive industry
also saw increased demand for products such as electrical components due to the growing use ofelectronics in vehicles.
Within this environment, the Group advanced business in line with the basic strategies of its mediumterm management plan, which positions the fiscal year ending March 31, 2021 as the year in whichtargets are to be achieved.
As a result, the Group’s business performance for the fiscal year under review is as follows. Net sales
increased 0.8% year on year to 135,180 million yen, operating profit increased 1.2% year on year to7,115 million yen, ordinary profit increased 0.9% year on year to 7,248 million yen, and profit
attributable to owners of parent increased 4.1% year on year to 4,585 million yen.
Results by segment are as follows.
(i) Bond (synthetic adhesive)
In general household-related fields, sales through channels such as 100-yen shops and home
improvement stores were firm, but sales through convenience stores decreased. Also, sales of Bond
Saihou Jozu Stick, a new product for handicrafts, were strong.
In the housing-related field, sales increased due to the strong performance of adhesives for interior
work and adhesives for tiling, despite the number of new housing starts weakening. Sales of sealingmaterials for repair were also strong and increased.
In industrial materials-related fields, sales of elastic adhesives for uses such as automotive andelectrical components increased.
As a result of the above, net sales increased 0.5% year on year to 49,979 million yen and operating
profit increased 4.7% year on year to 4,331 million yen.
(ii) Civil Engineering and Construction
In the construction field, sales increased due to the strong performance of materials used inmethods to prevent detachment from exterior walls and sealing materials for construction.
In the civil engineering field, sales increased due to the strong performance of reinforcement
methods such as continuous fiber sheet reinforcement methods, despite the sluggish performance of
methods for surface protection and for preventing detachment.
The Civil Engineering and Construction Business saw steady performance of repair, improvement,
and reinforcement works in the infrastructure, particularly for public works, and used building
markets, and BOND ENGINEERING Co., Ltd. saw an increase in sales. On the other hand, Kinki
Reinforced Concrete Co., Ltd. experienced a significant decline in sales and operating profit.

-2-

Konishi Co., Ltd. (4956)

As a result of the above, net sales increased 3.7% year on year to 30,844 million yen but operating
profit decreased 9.0% year on year to 2,044 million yen.
(iii) Chemicals
In the chemical engineering industry, there was a slight increase in sales due to an increase in salesof ethanol-related products, despite sluggish sales of resin materials.
In the electronic and electrical industry, sales declined due to the sluggish performance ofsemiconductor-related and smartphone-related products.
In the automotive industry, sales grew significantly due to the strong performance of products usedin electrical components.
In the coating materials industry, sales declined due to the sluggish performance of coatingproducts for automotive repair and other coating products, despite the strong performance of
coating products for construction.
MARUYASU & CO., LTD. saw a significant decrease in sales and operating profit due to thesluggish performance of products for use in semiconductor manufacturing and products for use incapacitors.
As a result of the above, net sales decreased 0.8% year on year to 54,084 million yen and operating
profit decreased 10.8% year on year to 553 million yen.
(iv) OtherIn the Other segment, the Real Estate Rental Business saw an increase in rent revenues due to theacquisition of the Kitahama TNK Building (now Kitahama Konishi Building) in February 2019. As
a result of the above, net sales increased 108.4% year on year to 271 million yen and operating
profit increased 917.3% year on year to 219 million yen.
(2) Overview of financial position for the fiscal year under review
Total assets as of March 31, 2020 decreased by 2,288 million yen from the previous fiscal year-end to106,113 million yen.
(i) Assets
Current assets decreased by 1,501 million yen from the previous fiscal year-end to 73,504 million
yen mainly due to a decrease of 2,688 million yen in notes and accounts receivable - trade, despite
an increase of 680 million yen in cash and deposits and an increase of 497 million yen inmerchandise and finished goods.
Non-current assets decreased by 786 million yen from the previous fiscal year-end to 32,609
million yen mainly due to a decrease of 1,388 million yen in investment securities of investments
and other assets and a decrease of 1,078 million yen in construction in progress of property, plantand equipment, despite an increase of 2,108 million yen in buildings and structures of property,
plant and equipment.
(ii) Liabilities
Current liabilities decreased by 4,251 million yen from the previous fiscal year-end to 37,845
million yen mainly due to a decrease of 2,682 million yen in notes and accounts payable - trade, adecrease of 1,190 million yen in electronically recorded obligations - operating, and a decrease of
491 million yen in current portion of long-term borrowings.
Non-current liabilities decreased by 483 million yen from the previous fiscal year-end to 4,907
million yen mainly due to a decrease of 400 million yen in deferred tax liabilities.
(iii) Net assets
Net assets increased by 2,446 million yen from the previous fiscal year-end to 63,360 million yen
mainly due to an increase of 3,642 million yen in retained earnings, despite a decrease of 878
million yen in valuation difference in available-for-sale securities and a decrease of 311 million yen
in remeasurements of defined benefit plans.
-3-

Konishi Co., Ltd. (4956)(3) Review of cash flow position for the fiscal year under review
Cash and cash equivalents (hereinafter “cash”) increased by 549 million yen during the fiscal year
under review (3,282 million yen decrease in the previous fiscal year). This comprised cash flows
provided by operating activities of 6,285 million yen (up 777 million yen year on year), cash flows
used in investing activities of 3,924 million yen (down 2,646 million yen year on year), and cash flows
used in financing activities of 1,833 million yen (down 329 million yen year on year).
As a result, the balance of cash as of March 31, 2020 amounted to 22,812 million yen, an increase of
549 million yen year on year.
(i) Cash flows from operating activities
Net cash provided by operating activities was 6,285 million yen (up 777 million yen year on year).
This was mainly due to profit before income taxes of 7,256 million yen, a decrease in trades
receivables of 2,696 million yen, and depreciation of 1,862 million yen, despite a decrease in trades
payables of 3,405 million yen and income taxes paid of 2,511 million yen.
(ii) Cash flows from investing activities
Net cash used in investing activities was 3,924 million yen (down 2,646 million yen year on year).
This was mainly due to purchase of property, plant and equipment of 4,266 million yen andpayments into time deposits of 705 million yen, despite proceeds from withdrawal of time deposits
of 712 million yen.
(iii) Cash flows from financing activities
Net cash used in financing activities was 1,833 million yen (down 329 million yen year on year).
This was mainly due to dividends paid of 942 million yen, repayments of long-term borrowings of
708 million yen, and purchase of treasury shares of 76 million yen.
Trends in the various cash flow indicators are shown in the table below.
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Equity ratio (%)

54.4

55.9

53.7

53.2

56.6

Market value equity ratio (%)

59.3

52.9

58.7

53.6

48.9

Interest-bearing debt to cash
flow ratio (yearly)

0.0

0.1

0.2

0.2

0.1

Interest coverage ratio (times)

358.7

361.5

415.6

326.3

446.6

Equity ratio:
equity / total assets
Market value equity ratio:
market capitalization / total assets
Interest-bearing debt to cash flow ratio: interest-bearing debt / cash flow
Interest coverage ratio:
cash flow / interest payments
Note 1: All indicators are calculated using consolidated financial data.
Note 2: Market capitalization is calculated by multiplying the share price at the end of the fiscal year by the
number of issued shares at the end of the fiscal year (excluding treasury shares).
Note 3: Cash flow means cash flows from operating activities.
Note 4: Interest-bearing debt includes the total amount of borrowings on the consolidated balance sheets.
(4) Future outlook
In the Japanese economy, from the beginning of the year to February, with factors such as retail sales
showing underlying strength and exports moderately picking up, it was expected there would be acontinuation of gradual recovery for demand amid a temporary suspension in trade friction between the
U.S. and China. However, since February the impact of COVID-19 has been increasing by the day andthe possibility of a severe recession is growing. Effects of COVID-19 on the Japanese economy are-4-

Konishi Co., Ltd. (4956)

expected to include a decrease in exports due to the slowing down of the global economy and thefragmentation of supply chains, and a decline in domestic consumption due to factors such as thecancellation of various events, people refraining from going out, and a decrease in foreign visitors toJapan. This is predicted to place huge downward pressure on the Japanese economy.
Within this environment, the Bond Business is forecast to weaken due to a slowdown in construction ofrental housing and condominium buildings in the Tokyo metropolitan area in the number of new
housing starts. On the other hand, steady demand is expected for reform work.
In the Civil Engineering and Construction Business, a slowdown in both public and private sector
works is forecast, particularly in the Tokyo metropolitan area, but this is expected to recover in thesecond half of the fiscal year.
In the Chemicals Business, growth is expected to continue in advanced technology fields due to factors
such as the strengthening and expanding of information and communications functions, the growing
use of electronics in vehicles, and an increase in demand for robotics against the backdrop of labor
shortages.
Based on these circumstances, the Group will aim to create sustainable profits and expand business bystrengthening cooperation within the Konishi Group, optimizing the allocation of management andresearch resources by revising our business portfolio, strengthening our core businesses and exploringand developing markets in areas surrounding these, and expanding into Asian markets.
In our consolidated earnings forecasts for the fiscal year ending March 31, 2021, we forecast that net
sales will increase 2.8% year on year to 139,000 million yen, operating profit will increase 0.9% year
on year to 7,180 million yen, ordinary profit will increase 0.2% year on year to 7,260 million yen, andprofit attributable to owners of parent will increase 0.7% year on year to 4,620 million yen.
(5) Basic policy on profit distribution and dividends for fiscal 2020 and fiscal 2021
As a basic policy on profit distribution, the Company believes that returning profits to shareholders is avital issue facing company management. Our policy is to strive to strengthen the Company’s businessbase by enhancing financial structure through revenue-focused business activities and to pay asustainable dividend based on considerations such as each fiscal year’s business performance. We will
also strive to improve business performance through the effective use of internal reserves, such as
investment in automation and labor saving equipment that can improve productivity, investment instrengthening logistics systems, research and development of environmentally friendly and highly
functional products, investment in reducing environmental impact, and the expansion of business areas
through M&A.
For the fiscal year under review (ended March 31, 2020), the Company forecasts a year-end dividendof 23 yen per share (a regular dividend of 13 yen and a 150th anniversary commemorative dividend of
10 yen). In addition to a midterm dividend of 13 yen already paid, this will result in an annual dividendof 36 yen. Regarding the dividends for the following fiscal year (ending March 31, 2021), theCompany forecasts midterm and year-end dividends of 18 yen each, amounting to an annual dividendof 36 yen.

2. Basic concept regarding selection of accounting standards
The Group has adopted Japanese accounting standards in order to ensure comparability with other Japanesecompanies in the same industries.

-5-

Konishi Co., Ltd. (4956)

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
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Costs on construction contracts in progress
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
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-6-

As of March 31, 2019

As of March 31, 2020

22,34639,82923,027
37,140

3,878

3,862

290
6,005
204
1,014
318
1,164
(47)
75,005

295
6,502
205
1,054
343
1,114
(43)
73,504

20,795(11,812)
8,982
14,698(12,456)
2,241
3,893
(3,415)
478
8,519
296
(98)
197
1,837
22,256
1,219

22,956(11,865)
11,091
15,420(13,134)
2,286
4,068
(3,438)
630
8,418
299
(119)
180
758
23,365
1,050

7,317
38
496
1,129
164
794
(20)
9,919
33,396
108,402

5,929
28
377
806
300
768
(18)
8,193
32,609106,113

Konishi Co., Ltd. (4956)(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Lease obligations
Long-term guarantee deposits
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-7-

As of March 31, 2019

As of March 31, 2020

30,878
4,924
98
708
22
1,296
1,017

28,195
3,733
95
216
22
1,251
1,079

123

106

3,027
42,0973,142
37,845

192
2,834
435
611
1,039
277
5,391
47,488

172
2,842
244
211
1,225
210
4,907
42,753

4,603
4,499
50,541(4,548)55,095

4,603
4,513
54,184(4,599)58,701

2,271

1,392

(0)
77
272
2,621
3,196
60,913
108,402

(0)
16
(38)
1,369
3,289
63,360106,113

Konishi Co., Ltd. (4956)(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Foreign exchange losses
Compensation expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on sales of shares of subsidiaries and associates
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-8-

Fiscal year ended
March 31, 2020

134,139
111,669
22,47015,438
7,031

135,180
112,196
22,984
15,868
7,115

20
191

14
204

30

19

220
463

249
487

16
203
18
24
48
311
7,182

14
206
53
35
44
354
7,248

36
0
–
36

40
114
0
155

77
61
4
143
7,075
2,515
(119)
2,395
4,679
274
4,404

132
–
14
147
7,256
2,432
(10)
2,422
4,834
249
4,585

Konishi Co., Ltd. (4956)

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2019
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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 ofparentComprehensive income attributable to noncontrolling interests-9-

Fiscal year ended
March 31, 2020

4,679

4,834

(718)
(0)
(128)
(245)

(966)
(0)
(38)
(311)

(5)

(24)

(1,097)
3,581(1,342)
3,492

3,372

3,334

208

158

Konishi Co., Ltd. (4956)(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

4,603

4,480

47,117(4,229)51,971

Changes during period
Dividends of surplus

(981)

(981)

Profit attributable toowners of parent

4,404

4,404

Purchase of treasury shares
Disposal of treasury shares

19

(340)

(340)

22

41

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

–

19

3,423

(318)

3,124

4,603

4,499

50,541(4,548)55,095

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

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

2,937

(0)

197

518

3,653

(666)

(0)

(120)

(245)

(1,031)

Total changes during period

(666)

(0)

(120)

(245)

(1,031)

Balance at end of period

2,271

(0)

77

272

2,621

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes in items otherthan shareholders’ equity

Balance at beginning of period

Non-controllinginterests

Total net assets

3,291

58,916

Changes during period
Dividends of surplus(981)

Profit attributable toowners of parent

4,404

Purchase of treasury shares(340)

Disposal of treasury shares

41

Net changes in items otherthan shareholders’ equity(94)(1,126)

Total changes during period

(94)

1,997

Balance at end of period

3,196

60,913- 10 -

Konishi Co., Ltd. (4956)

Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

4,603

4,499

50,541(4,548)55,095

Changes during period
Dividends of surplus

(942)

(942)

Profit attributable toowners of parent

4,585

4,585

Purchase of treasury shares
Disposal of treasury shares

13

(76)

(76)

25

39

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

–

13

3,642

(50)

3,605

4,603

4,513

54,184(4,599)58,701

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

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

2,271

(0)

77

272

2,621

(878)

(0)

(61)

(311)

(1,251)

Total changes during period

(878)

(0)

(61)

(311)

(1,251)

Balance at end of period

1,392

(0)

16

(38)

1,369

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes in items otherthan shareholders’ equity

Balance at beginning of period

Non-controllinginterests

Total net assets

3,196

60,913

Changes during period
Dividends of surplus(942)

Profit attributable toowners of parent

4,585

Purchase of treasury shares(76)

Disposal of treasury shares

39

Net changes in items otherthan shareholders’ equity

92(1,158)

Total changes during period

92

2,446

Balance at end of period

3,289

63,360- 11 -

Konishi Co., Ltd. (4956)(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sales of investment securities
Loss (gain) on sales of shares of subsidiaries andassociates
Loss (gain) on disposal of property, plant andequipment
Loss (gain) on sales of property, plant and equipment
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Payments for sales of shares of subsidiaries resulting
in change in scope of consolidation
Proceeds from cancellation of insurance funds
Other, net
Net cash provided by (used in) investing activities- 12 -

Fiscal year ended
March 31, 2020

7,075
1,590
189
0

7,256
1,862
189
(113)

61

–

25

21

33

(40)

0

(6)

(12)

61

16

(16)

(1)
135
(211)
16

9
50
(218)
14

(30)

(19)

(3,159)
(649)
2,673
160
99
(132)
7,880
210
(16)
(2,566)
5,507

2,696
(514)
(3,405)
341
(73)
494
8,590
220
(14)
(2,511)
6,285

(876)
1,965
(166)
(7,683)
266
(235)
(62)
0

(705)
712
(141)
(4,266)
446
(166)
(69)
195

–

29

(22)

–

231
11
(6,571)34
5(3,924)

Konishi Co., Ltd. (4956)(Millions of yen)
Fiscal year ended
March 31, 2019
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of lease obligations
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- 13 -

Fiscal year ended
March 31, 2020

(40)
(22)
(704)
(340)
(980)
(73)
–
(2,163)

(16)
(23)
(708)
(76)
(942)
(65)
(0)
(1,833)(55)

21(3,282)25,54522,263549
22,263
22,812

Konishi Co., Ltd. (4956)(5) Notes on premise of going concern
Not applicable.
(6) Changes in significant accounting policies for preparation of consolidated financial statements
Changes in presentation
Consolidated statement of income“Compensation expenses” which were included in “Other” of “Non-operating expenses” in theprevious fiscal year are presented separately from the fiscal year under review, as they exceeded 10%of the total amount of non-operating expenses. To reflect the changes to presentation, the consolidated
financial statements of the previous fiscal year have been reclassified.
As a result, in the consolidated statement of income of the previous fiscal year, the 72 million yen that
had been shown in the “Other” of “Non-operating expenses” has been reclassified as 24 million yen in“Compensation expenses” and 48 million yen in “Other.”(7) Notes to consolidated financial statements
Segment information, etc.
Segment information
1. Description of reportable segments
The reportable segments of the Company are constituent units of the Company for which separate
financial information is available. The Board of Directors periodically examines these segments todecide on the allocation of management resources and evaluate business performance.
The Company basically consists of three business divisions, the Bond Business, Civil Engineeringand Construction Business, and Chemicals Business, with each business formulating acomprehensive strategy that includes Japan and overseas, and pursuing business activities.
Accordingly, the Company has the following three reportable segments: Bond, Civil Engineeringand Construction, and Chemicals.
“Bond” covers the manufacture and sale of industrial adhesives, adhesives for general household
use, adhesives for construction, sealing materials for use in housing construction, adhesives forwall coverings, waxes, and adhesive tapes. “Civil Engineering and Construction” covers the
manufacture and sale of adhesives, repair materials, and sealing materials for use in civilengineering and construction works, and the undertaking of contracts for repair, improvement, andreinforcement works in the infrastructure and used building markets. “Chemicals” covers the saleof industrial chemicals, synthetic resins, resin mold products, materials for electronic components,
and thin film materials.
2. Method of calculating net sales, profit or loss, and other items by reportable segment
The accounting method used for reported business segments is generally the same as the method
recorded in “Significant matters forming the basis of preparing consolidated financial statements”
in the Company’s recent Annual Securities Report (submitted June 21, 2019)
Values for profits shown in reportable segments are based on operating profit.
Intersegment internal revenues and transfers are based on market prices.
Please note the Company does not allocate assets and liabilities to business segment.

- 14 -

Konishi Co., Ltd. (4956)

3. Disclosure of net sales, profit or loss, and other items by reportable segment
Fiscal year ended March 31, 2019
(Millions of yen)
Reportable segments
Total

Total

Adjustments

54,538134,009130

134,139–

134,139

99

105

859

47

907

(907)

–

50,37429,85054,643

134,868178

135,046(907)

134,139

4,138

2,246

621

7,005

21

7,026

4

7,031

1,206

305

26

1,537

34

1,571

18

1,590

7

182

–

189

–

189

–

189

Bond

Chemicals

49,72029,750654

Total
Segment profit

Net sales
Revenues from externalcustomers
Intersegment sales andtransfers

Other items
Depreciation
Amortization of
goodwill

Amount inconsolidated
financialstatements(Note) 3

Other(Note) 1

Civil
EngineeringandConstruction(Note) 2

Notes: 1. The “Other” category is a business segment not included in reportable segments, and includes the real estate
rental business.
2. Details of adjustments are as follows:(1) Adjustments of segment profit represent eliminations for intersegment transactions.
(2) Adjustments of depreciation represent depreciation unallocated to the reportable segments.
3. Segment profit is adjusted with operating profit in the consolidated statement of income.

Fiscal year ended March 31, 2020
(Millions of yen)
Reportable segments
Other(Note) 1

Amount inconsolidated
financialstatements(Note) 3

Bond

Civil
EngineeringandConstruction

Chemicals

Total

49,97930,84454,084

134,909271

135,180–

135,180

801

365

110

1,278

84

1,363

(1,363)–

Total

50,781

31,21054,194

136,187356

136,544(1,363)

135,180

Segment profit

4,331

2,044

553

6,929

219

7,148

(32)

7,115

1,394

363

34

1,792

52

1,844

18

1,862

7

182

–

189

–

189

–

189

Net sales
Revenues from externalcustomers
Intersegment sales andtransfers

Other items
Depreciation
Amortization of
goodwill

Total

Adjustments(Note) 2

Notes: 1. The “Other” category is a business segment not included in reportable segments, and includes the real estate
rental business.
2. Details of adjustments are as follows:(1) Adjustments of segment profit represent eliminations for intersegment transactions.
(2) Adjustments of depreciation represent depreciation unallocated to the reportable segments.
3. Segment profit is adjusted with operating profit in the consolidated statement of income.

- 15 -

Konishi Co., Ltd. (4956)

Disclosure of impairment loss on non-current assets by reportable segment
Fiscal year ended March 31, 2019
Not applicable.
Fiscal year ended March 31, 2020
Not applicable.
Amortization and unamortized balance of goodwill by reportable segment
Fiscal year ended March 31, 2019
(Millions of yen)
Reportable segment
Civil
EngineeringandConstruction

Bond

Corporateandelimination

Other
Chemicals

Total

Total

Amortization
during period

7

182

–

189

–

–

189

Balance at endof period

15

591

–

607

–

–

607

Fiscal year ended March 31, 2020
(Millions of yen)
Reportable segment
Civil
EngineeringandConstruction

Bond

Corporateandelimination

Other
Chemicals

Total

Total

Amortization
during period

7

182

–

189

–

–

189

Balance at endof period

7

418

–

426

–

–

426

Information about gain on bargain purchase by reportable segment
Fiscal year ended March 31, 2019
Not applicable.
Fiscal year ended March 31, 2020
Not applicable.

- 16 -

Konishi Co., Ltd. (4956)

Per share information(Yen)
Fiscal year ended March 31, 2019
Net assets per share
Basic earnings per share

Fiscal year ended March 31, 2020

1,592.21

1,658.28

121.28126.47

Notes: 1. Diluted earnings per share is not stated because there were no potential shares.
2. Basis for calculation is as follows:(i) Net assets per share
Fiscal year ended March 31, 2019

Fiscal year ended March 31, 2020

Total net assets(Millions of yen)

60,91363,360Net assets attributable to commonshares(Millions of yen)

57,71760,070

3,196

3,289

Number of issued common shares(Thousand shares)

40,70740,707

Number of treasury common shares(Thousand shares)

4,457

4,482

Number of common shares used for
calculating net assets per share(Thousand shares)

36,24936,224

Fiscal year ended March 31, 2019

Fiscal year ended March 31, 2020

Profit attributable to owners of parent(Millions of yen)

4,404

4,585

Amounts not attributable to commonshareholders(Millions of yen)––

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

4,404

4,585

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

36,31936,259Main details of differences (Millionsof yen)Non-controlling interests(ii) Basic earnings per share

Omission of disclosure
Notes other than the above are omitted because their disclosure is considered unnecessary in financial
results reports.
Significant events after reporting period
Not applicable.

- 17 -

Konishi Co., Ltd. (4956)

4. Other
Changes in representatives and officers (Effective June 23, 2020)
1. New candidates for Audit & Supervisory Board Member
Shinya Enomoto
Yoshiki Yamada
Note: Yoshiki Yamada is a candidate for outside Audit & Supervisory Board Member.
2. Retiring Audit & Supervisory Board Members
Masato Togo
Ikuo Yoshikawa
Note: Ikuo Yoshikawa is an outside Audit & Supervisory Board Member.

- 18 -

Konishi Co., Ltd. (4956)

Reference: Supplementary Information on Financial Results for the Fiscal Year Ended March 31, 2020
1. Business performance and earnings forecasts(Millions of yen)
Fiscal year
ended March
31, 2020
Full year
Net sales

Fiscal year ending March 31, 2021 (forecast)
2Q(cumulative)

Full year

Changes(amount)

Changes(%)

Consolidated

135,180

66,200139,000

3,819

2.8%

Nonconsolidated

93,53946,62095,040

1,500

1.6%

Consolidated

7,115

3,070

7,180

64

0.9%

Operating profit

Nonconsolidated

4,277

1,910

4,280

2

0.1%

Consolidated

7,248

3,130

7,260

11

0.2%

Ordinary profit

Nonconsolidated

4,897

2,460

4,900

2

0.1%

Profit attributable
Consolidated
to owners of parent

4,585

1,980

4,620

34

0.7%

Nonconsolidated

3,560

1,870

3,560

0

(0.0)%

Profit2. Business performance and earnings forecasts by segment(Millions of yen)
Fiscal year
ended March
31, 2020
Full year
Bond

Civil Engineeringand Construction
Chemicals

Other

Total

2Q
(cumulative)

Full year

Changes(amount)

Changes(%)

Net sales

49,97925,40052,200

2,220

4.4%

Operatingprofit

4,331

2,030

4,335

3

0.1%

Net sales

30,84414,00032,300

1,455

4.7%

Operatingprofit

2,044

680

2,080

35

1.8%

Net sales

54,084

26,67054,230145

0.3%Operatingprofit

553

255

555

1

0.2%

Net sales

271

130

270

(1)

(0.6)%

Operatingprofit

219

105

210

(9)

(4.2)%Net sales
Adjustments

Fiscal year ending March 31, 2021 (forecast)

–

–

–

–

–

135,180

66,200139,000

3,819

2.8%

7,115

3,070

7,180

64

0.9%

Operatingprofit(32)

Net sales
Operatingprofit- 19 -––
32–

Konishi Co., Ltd. (4956)

3. Indicators(Millions of yen)
Fiscal year
ended March
31, 2020
Full year
Consolidated
Capital investment Nonconsolidated
Depreciation

Research anddevelopment

Fiscal year ending March 31, 2021 (forecast)
Full year

Changes(amount)

Changes
(%)

3,775

7,120

3,345

88.6%

2,488

4,331

1,843

74.1%

Consolidated

1,862

1,907

44

2.4%

Nonconsolidated

1,184

1,286

102

8.7%

Consolidated

1,644

1,836

191

11.7%

Non1,426
1,626
199
14.0%
consolidated
Note 1: Figures are rounded down to the nearest ¥1 million.
Note 2: Changes (amount and %) are presented in comparison with the same period of the previous fiscal year.

- 20 -