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

July 29, 2022

Consolidated Financial Results for
the First Three Months of the Fiscal Year Ending March 31, 2023
(Under Japanese GAAP)
Company name:
Konishi Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4956
URL:
http://www.bond.co.jp/
Representative:
Keiichi Oyama, Representative Director and President
Inquiries:
Shozo Arisawa, Director and Senior Managing Executive Officer
Telephone:+81-6-6228-2877
Scheduled date to file quarterly securities report:
August 9, 2022
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
None
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the first three months of the fiscal year ending March 31, 2023
(from April 1, 2022 to June 30, 2022)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

27,7076.6

1,256(19.2)

1,496(11.4)

946(18.4)

25,996

10.3

1,554

52.8

1,689

51.9

1,158

75.3

1,098
1,184

Millions of yen [7.2%]
Millions of yen [17.8%]

First three months
ended June 30, 2022
First three months
ended June 30, 2021
Note: Comprehensive income

First three months ended June 30, 2022
First three months ended June 30, 2021

Basic earnings
per share

Diluted earnings
per share

YenFirst three months
ended June 30, 2022
First three months
ended June 30, 2021

Profit attributable toowners of parent

Ordinary profit

Yen

26.55

-

32.55

-

(2) Consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

First three months
ended June 30, 2022

117,841

73,13958.5

As of March 31, 2022

119,148

72,897

57.6

Reference:

EquityFirst three months ended June 30, 2022
As of March 31, 2022

68,899 Millions of yen
68,664 Millions of yen%

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen
As of March 31, 2022-

Fiscal year ending March
31, 2023-

Fiscal year ending March
31, 2023 (Forecast)Fiscal year-end

Total

Yen

Yen

22.00

-

22.00

44.00

27.00

-

22.00

49.00

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

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023
(from April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)
Net sales

Six months ending
September 30, 2022
Fiscal year ending March
31, 2023

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basic earnings
per share

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

%

Yen

58,2508.0

2,670(22.1)

2,800(23.7)

6,860

188.0

192.54122,000

7.3

6,950

(4.8)

7,250

(7.3)

9,600

86.9

269.44

Note: Revisions to the consolidated earnings forecasts most recently announced: None
The main reason for the large fluctuation in profit attributable to owners of parent is that extraordinary income of 7,176
million yen will be generated for the first six months of the fiscal year as a gain on sale of non-current assets due to thetransfer of non-current assets.

* Notes(1) Changes in significant subsidiaries during the first three months ended June 30, 2022 (changes in specified
subsidiaries resulting in the change in scope of consolidation): None
Included: 0 companies, excluded 0 companies(2) Application of special accounting for preparing quarterly consolidated financial statements:
None(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates:None(iv) Restatement:
None(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022

40,707,440 shares

As of March 31, 2022

40,707,440 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2022

5,067,373 shares

As of March 31, 2022

5,067,401 shares(iii) Average number of shares outstanding during the period
As of June 30, 2022

35,640,060 shares

For the first three months ended June 30, 2021

35,605,327 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the earnings forecasts stated in these materials, are based on information
currently available to the Company and certain assumptions deemed reasonable. Results may differ materiallyfrom the earnings forecasts due to various factors. For the assumptions used as the basis for the earnings
forecasts and special remarks regarding the use of the earnings forecasts, please refer to “1. Qualitative
information regarding financial results for the first three months (3) Explanation of consolidated earnings
forecasts and other forward-looking statements” on page 3 (Attached Material).

Konishi Co., Ltd. (4956)

Index
1.

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

2.

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

Konishi Co., Ltd. (4956)
1. Qualitative information regarding financial results for the first three months(1) Explanation of operating results
The global economy is in a difficult situation due to rising interest rates, inflation, and climbing energy prices.
In Japan’s economy, the business condition’s diffusion index (DI) for large companies in the Bank of Japan’s
Tankan (June survey) improved for the first time in two quarters for non-manufacturing industries but worsened
for two consecutive quarters for manufacturing industries. In the manufacturing industry, rising raw material
costs due to climbing resource prices and stagnant supply chains due to the Shanghai lockdown pushed downbusiness sentiment.
In the Konishi Group (the “Group”), the outlook for demand for automobiles and electric machinery remained
uncertain due to supply chain disruptions caused by the Shanghai lockdown. Still, personal consumption
showed signs of picking up, and the housing industry remained firm. In addition, the orders for repair,
improvement, and reinforcement works in infrastructure and stock markets were strong regarding public
investment. On the other hand, rising raw material costs due to the prolonged situation in Ukraine andrestrained economic activities in China, etc., put pressure on earnings.
As a result, the Group’s operating results for the first three months under review were as follows. Net sales
increased 6.6% year on year to 27,707 million yen, operating profit fell 19.2% year on year to 1,256 million
yen, ordinary profit was down 11.4% year on year to 1,496 million yen, and profit attributable to owners ofparent decreased 18.4% year on year to 946 million yen.

Results by segment are as follows.
(i)

Bond
In the general household field, sales through home improvement stores were on a par with those in thesame period of the previous fiscal year, but sales through convenience stores recovered and increased. In
the housing-related field, sales of adhesives for interior work and interior building materials and sales ofsealants for exterior walls increased as the number of new housing starts continued to pick up. In theindustrial materials field, sales of elastic adhesives used in electrical components, etc., were on a par withthose in the same period of the previous fiscal year. Still, sales increased due to strong sales of products
such as water-based adhesives for paper-related applications. In the construction field, sales of materials
used for building repairs and preventing the exfoliation of exterior walls, as well as construction sealants,
increased. Additionally, in the civil engineering field, sales grew due to the favorable performance of sales
for construction methods for surface protection and for preventing detachment.
However, the prices of raw materials used in adhesives and sealants rose even higher. Despite efforts forcost-saving and cost improvement, and reflecting these in selling prices, profits declined.
As a result of the above, net sales increased 10.0% year on year to 16,107 million yen and operating profit
fell 16.3% year on year to 880 million yen.

(ii) Chemicals
In the chemical engineering field, although sales of resin materials and heat dissipating materials werestrong, sales of products for automobiles and electric machinery were affected by production cutbacks
due to a shortage of parts supply caused by the Shanghai lockdown. Sales at Maruyasu & Co., Ltd.
continued to show the strong performance of products for use in semiconductor manufacturing andproducts for use in capacitors.
As a result of the above, net sales grew 6.8% year on year to 8,247 million yen and operating profit
increased 49.1% year on year to 362 million yen.

-2-

Konishi Co., Ltd. (4956)(iii) Construction
In the Civil Engineering and Construction Business, the orders of repair, improvement, and reinforcement
works in the infrastructure and stock markets, particularly for public works, were continuously steady.
However, profit dropped due to higher prices of materials used in construction and other reasons.
As a result of the above, net sales decreased 7.6% year on year to 3,306 million yen and operating profit
was down 87.9% year on year to 26 million yen.
(iv) OtherThe Other segment represents the Real Estate Rental Business. Net sales increased 0.3% year on year to
45 million yen and operating loss was 14 million yen (operating profit of 30 million yen in the same
period of the previous year).
(2) Explanation of financial position
Assets, liabilities and net assets
Total assets as of June 30, 2022 decreased by 1,307 million yen from the previous fiscal year-end to 117,841
million yen.
(i)

AssetsCurrent assets dropped 884 million yen from the previous fiscal year-end to 81,381 million yen mainly
due to a decrease of 2,872 million yen in notes and accounts receivable - trade, and contract assets, despite
an increase of 1,417 million yen in electronically recorded monetary claims - operating. Non-current
assets fell 423 million yen from the previous fiscal year-end to 36,459 million yen mainly due to adecrease of 175 million yen in buildings and structures and a decrease of 132 million yen in investment
securities.

(ii) Liabilities
Current liabilities were down 1,630 million yen from the previous fiscal year-end to 39,564 million yen
mainly due to a decrease of 1,011 million yen in income taxes payable and a decrease of 493 million yen
in provision for bonuses. Non-current liabilities grew 81 million yen from the previous fiscal year-end to
5,137 million yen, mainly due to an increase of 168 million yen in other liabilities, despite a decrease of
99 million yen in long-term borrowings.
(iii) Net assets
Net assets were up 242 million yen from the previous fiscal year-end to 73,139 million yen, mainly due
to an increase of 192 million yen in foreign currency translation adjustment and 162 million yen inretained earnings, despite a decrease of 101 million yen in valuation difference on available-for-salesecurities.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
There are currently no changes to the earnings forecast announced on April 28, 2022.

-3-

Konishi Co., Ltd. (4956)
2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Electronically recorded monetary claimsoperating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

As of June 30, 2022

26,16925,90435,08732,214

10,637

12,054

7,280
253
1,305
1,579
(47)
82,266

7,989
300
1,575
1,390
(48)
81,381

11,967
13,651
25,618811

11,791
13,64925,441
757

7,628
2,842
(17)
10,45336,882
119,148

7,496
2,781
(18)
10,26036,459117,841

Konishi Co., Ltd. (4956)(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (andother officers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-5-

As of June 30, 2022

31,73731,619

3,413

3,316

46
104
1,238
1,125

47
78
227
632

116

33

3,413
41,195

3,609
39,564

256
612
4,186
5,055
46,251

157
624
4,355
5,137
44,701

4,603
4,544
61,164(5,504)64,8084,603
4,544
61,326(5,503)64,970

2,383

2,282

0
270
1,201

(0)
463
1,182

3,856

3,928

4,232
72,897
119,148

4,240
73,139117,841

Konishi Co., Ltd. (4956)(2) Consolidated statement of income (quarterly) and consolidated statement of comprehensive income(quarterly)
Consolidated statement of income (quarterly)(Millions of yen)Three months ended June30, 2021

Three months ended June30, 2022

25,996
20,517
5,478
3,923
1,554

27,70722,411
5,295
4,039
1,256

1
94
5

1
113
83

2

7

42
146

50
256

2
6
1
10
1,689

1
6
8
16
1,496

1
17
19

2
0
2

12
0
12
1,696
210
277
487
1,208
49
1,158

11
1
13
1,485
235
235
471
1,014
67
946

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Depreciation
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-6-

Konishi Co., Ltd. (4956)
Consolidated statement of comprehensive income (quarterly)(Millions of yen)Three months ended June30, 2021
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests-7-

Three months ended June30, 2022

1,208

1,014

(206)

(119)

(0)
190

(0)
201

(4)

(18)

(3)

21

(24)
1,184

84
1,098

1,126

1,018

57

80

Konishi Co., Ltd. (4956)(3) Notes to quarterly consolidated financial statements
Notes on premise of going concern
Not applicable.
Notes on significant changes in the amount of shareholders’ equity
Not applicable.
Segment information
1. Disclosure of net sales and profit or loss by reportable segment
Three months ended June 30, 2021
(Millions of yen)
Reportable segments
Bond

Chemicals Construction

Total

Other
(Note 1)

Total

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

Net sales(1) Revenues from externalcustomers(2) Intersegment sales andtransfers
Total
Segment profit

14,647

7,723

3,580

25,95145

25,996-25,996

72

41

-

114

20

135

(135)

-

14,720

7,765

3,580

26,065

65

26,131(135)

25,996

1,052

243

222

1,518

30

1,549

5

1,554

Notes: 1. The “Other” category is a business segment not included in reportable segments, and includes the realestate rental business.
2. Adjustments of segment profit represent eliminations for intersegment transactions.
3. Segment profit is adjusted with operating profit in the consolidated statement of income.
Three months ended June 30, 2022
(Millions of yen)
Reportable segments
Bond

Chemicals Construction

Total

Other
(Note 1)

Total

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

Net sales(1) Revenues from externalcustomers(2) Intersegment sales andtransfers
Total
Segment profit or loss

16,107

8,247

3,306

27,66145

27,707-

27,707

89

106

-

195

20

216

(216)

-

16,197

8,353

3,306

27,85765

27,923(216)

27,707

880

362

26

1,270

(14)

1,256

(0)

1,256

Notes: 1. The “Other” category is a business segment not included in reportable segments, and includes the realestate rental business.
2. Adjustments of segment profit or loss represent eliminations for intersegment transactions.
3. Segment profit or loss is adjusted with operating profit in the consolidated statement of income.
2. Disclosure of impairment loss on non-current assets or goodwill, etc. by reportable segment
Not applicable.

-8-