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.

May 15, 2023

Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
(Under Japanese GAAP)
Company name:
DKS Co. Ltd.
Listing:
Tokyo Stock Exchange
Security code:
4461
URL:
https://www.dks-web.co.jp
Representative:
YAMAJI Naoki, President COO
Inquiries:
SHIMIZU Shinji, Director
TEL:+81-75-323-5955
Scheduled date of ordinary general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report:
Preparation of supplementary material on financial results:
Holding of financial results briefing:

June 23, 2023
June 26, 2023
June 23, 2023
Yes
Yes (for institutional investors andanalysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Millions of yen

Note: Comprehensive income

Fiscal year ended
Fiscal year ended
March 31, 2023
March 31, 2022
Reference:

Operating income% Millions of yen

Profit attributable toowners of parent

Ordinary income% Millions of yen% Millions of yen%

65,0813.8

1,186(74.4)

1,200(71.4)(407)–

62,672

6.0

4,626

3.1

4,192

(2.8)

2,492

(2.8)

Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

¥375 million¥3,697 million[(89.8)%][(4.3)%]

Ratio of ordinary Ratio of operating
profit to total
income to net
assetssales

Basic earnings per
share

Diluted earnings
per share

Return on equity

Yen

Yen

%

%

%

(41.87)

–

(1.1)

1.4

1.8

244.81

–

7.0

4.9

7.4

Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2023
¥36 million
Fiscal year ended March 31, 2022
¥55 million(2) Consolidated financial position
Total assets
As of
As of March 31, 2023
As of March 31, 2022
Reference:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

85,02586,46938,29640,38340.4
42.5

3,593.49
3,610.31

EquityAs of March 31, 2023 ¥34,346 million
As of March 31, 2022 ¥36,767 million

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

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

724(2,883)(1,030)

9,051

5,520

(2,700)(2,336)

12,151

2. Cash dividends
Annual dividends per share

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(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

%

%

–

35.00

–

45.00

80.00

814

32.7

2.3

–

40.00

–

40.00

80.00

764

–

2.2

–

20.00

–

30.00

50.00

39.8

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 toMarch 31, 2024)
Net sales

Half year
Full year

Operating income(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary income
earnings perowners of parent
shareMillions ofyen%Millions ofyen%Millions ofyen%Millions ofyen

30,00068,000

(8.4)
4.5

400
2,500

(44.2)
110.8

300
2,300

(65.6)
91.7

100
1,200

%

–
–

Yen

10.46
125.55* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
Newly included: – companies
Excluded:– companies(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to reasons other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
Note: For details, kindly refer to “3. Consolidated Financial Statements and Notes, (5) Notes toconsolidated financial statements (Changes in accounting policies)” in page 13 of attachedmaterials.

(3) Number of issued shares (ordinary shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

10,684,321 shares

As of March 31, 2022

10,684,321 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2023

1,126,227 shares

As of March 31, 2022

500,351 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2023

9,737,450 sharesFiscal year ended March 31, 2022

10,181,694 shares[Reference] Overview of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Non-consolidated operating results
Net sales
Fiscal year ended
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Operating income

Millions of yen% Millions of yen

Ordinary income% Millions of yen

Profit% Millions of yen%

43,506

5.0

(826)

–

23

(99.0)(1,177)–41,452

(3.7)

1,967

(15.9)

2,298(11.9)

1,750(20.1)

Basic earnings per
share
Fiscal year ended
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

(Percentages indicate year-on-year changes.)

Diluted earnings per
share

Yen

Yen

(120.93)–171.92–(2) Non-consolidated financial position
Total assets
As of
As of March 31, 2023
As of March 31, 2022
Reference:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

63,091
66,34025,36828,52040.2
43.0

2,654.13
2,800.53

EquityAs of March 31, 2023 ¥25,368 million
As of March 31, 2022 ¥28,520 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 consolidated forecasts stated in these materials, are based on
information currently available to the Company and certain assumptions deemed reasonable. Consequently,
no statements herein constitute assurances regarding actual results by the Company. Results may differ
materially from the consolidated forecasts due to various factors.

DKS Co. Ltd. (4461)

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 .................................................... 4(3) Overview of Cash Flows for the Fiscal Year Under Review .............................................................. 4(4) Future Outlook ................................................................................................................................... 5(5) Basic Policy for Profit Distributions and Dividends for Current and Next Fiscal Years .................... 5
2. Basic Concept Regarding Selection of Accounting Standards ................................................................. 6
3. Consolidated Financial Statements and Notes .......................................................................................... 7(1) Consolidated Balance Sheet ............................................................................................................... 7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ............ 9(Consolidated statement of income) ................................................................................................... 9(Consolidated statement of comprehensive income) ........................................................................ 10(3) Consolidated statement of changes in equity ................................................................................... 11(4) Consolidated Statement of Cash Flows ............................................................................................ 13(5) Notes to Consolidated Financial Statements .................................................................................... 15(Notes on premise of going concern) ............................................................................................... 15(Notes on significant accounting estimate) ...................................................................................... 15(Changes in accounting policies)...................................................................................................... 15(Notes on Consolidated statement of income) .................................................................................. 15(Segment information, etc.) .............................................................................................................. 16(Per share information) ..................................................................................................................... 20(Significant events after reporting period)........................................................................................ 21-1-

DKS Co. Ltd. (4461)

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year Under Review
During the fiscal year under review, the Japanese economy showed signs of a gentle recovery as
restrictions on movement to combat COVID-19 eased. On the other hand, the semiconductor shortage,
supply chain disruptions limiting the supply of raw materials, and soaring raw material prices due tothe protracted situation in Ukraine hampered corporate growth. As such, the outlook remains uncertain.
Under these circumstances, the Group recorded higher sales but lower profits year on year. The
aforementioned external factors along with delays in price pass-on and new product development
resulted in a major breakdown of the assumptions in place during the establishment of medium-term
management plan, “FELIZ 115.” The environment surrounding the Company in the fiscal year ending
March 31, 2024, the fourth year of the plan, will be difficult, so we do not expect a quick recovery.
First, we will work to improve profitability and secure profits by steadily implementing price pass-on
and reducing costs. We will also accelerate product development, increase production of competitive
products, and improve our plant operating rates. In the Life Sciences business, we aim to quickly returnto profitability through sales promotion and business expansion as the notification for food withfunctional claims is complete for products containing I. Japonica-Bombyx Fungus.
Concerning the results for the fiscal year ended March 31, 2023, net sales were ¥65,081 million (up3.8% year on year), thanks to significant sales growth of flame retardants for overseas markets in the
Functional Materials segment.
Operating income was ¥1,186 million (down 74.4% year on year). Profit decreased mainly in the
Surfactants and Functional Materials segments due primarily to an increase in R&D expenses for the
future and a sharp rise in raw material prices that exceeded price pass-on measures. In addition,
ordinary income was ¥1,200 million (down 71.4% year on year), despite recovery of non-operating
income and expenses. On top of this, an impairment loss was recorded for non-current assets in the
Polyurethane Materials segment as an extraordinary loss, so the loss attributable to owners of parent
after deducting income tax expenses came to ¥407 million (profit of ¥2,492 million in the previous
fiscal year).
Results by segment are as follows.
Surfactants
Net sales in the Surfactants segment were generally firm.
In Japan, sales were sluggish in IT and electronics applications, and paint and coloring agent
applications, but remained firm in machinery and metal applications. Sales for soap and detergent
applications grew significantly.
Overseas, sales for rubber and plastic applications were sluggish, but sales remained firm in textile
applications.
As a result, net sales in this segment were ¥18,976 million (up 2.2% year on year).
Operating income was ¥1,749 million (down 29.4% year on year) due to the impact of soaring raw
materials prices.
Amenity Materials
Net sales in the Amenity Materials segment were generally sluggish.
In Japan, sales of sucrose fatty acid esters remained firm for food applications, and sales of vinyl
polymers were also firm for rubber and plastic applications. Sales of cellulose polymers weresluggish in energy and environmental applications.
Overseas, sales of sucrose fatty acid esters were robust in food applications and personal care(cosmetics) applications.
As a result, net sales in this segment were ¥8,079 million (down 0.2% year on year).
-2-

DKS Co. Ltd. (4461)

There was an operating loss of ¥1 million (operating income of ¥566 million in the previous fiscal
year) due to the impact of soaring raw material prices and increased operating expenses.
Polyurethane Materials
Net sales in the Polyurethane Materials segment were generally firm.
Sales of civil engineering chemicals related to public works were strong, and sales ofenvironmentally friendly synthetic lubricants related to CFC regulations grew significantly.
Sales of functional polyurethanes were sluggish in construction and other applications, but sales in
IT and electronics applications were firm.
As a result, net sales in this segment were ¥8,761 million (up 5.6% year on year).
The Company posted an operating loss of ¥247 million (operating income of ¥55 million in theprevious fiscal year) due to the impact of soaring raw materials prices.
Functional Materials
Net sales in the Functional Materials segment generally increased significantly.
In Japan, sales of waterborne polyurethane for IT and electronics applications dropped sharply, but
sales of radcure resin materials for IT and electronics applications grew significantly. Sales offlame retardants for rubber and plastic applications also grew significantly.
Overseas, sales of flame retardants for rubber and plastics grew significantly, as did sales of radcure
resin materials for IT and electronics applications.
As a result, net sales in this segment were ¥22,574 million (up 13.3% year on year).
Operating income was ¥281 million (down 79.2% year on year) due to an increase in operating
expenses, mainly R&D expenses, in addition to the impact of soaring raw material prices.
Electronic Device Materials
Net sales in the Electronic Device Materials segment fell significantly overall.
Sales of ionic liquids for display applications and conductive pastes for solar cell applications fellsignificantly.
As a result, net sales in this segment were ¥6,191 million (down 15.4% year on year).
Due to the significant drop in net sales, operating income was ¥139 million (down 80.6% year onyear).
Life Sciences
Net sales in the Life Sciences segment increased by ¥20 million (4.4%) year on year, to ¥497
million. Improvement of cognitive function has been confirmed for intake of I. Japonica-Bombyx
Fungus containing “Naturido” in clinical trials targeting healthy adults and persons with mild
cognitive impairment. In February 2023, notification to the Consumer Affairs Agency for food withfunctional claims is complete for “Kainou Tochukaso (original Japanese name)” and we plan tolaunch the product around the summer.
The OEM business for pharmaceutical additives and health foods made through the concentrationand pulverization of extracts from natural materials was firm.
As for operating income, although net sales increased, there was an operating loss of ¥734 million(operating loss of ¥543 million in the previous fiscal year) due to an increase in operating expenses,
mainly R&D expenses.

-3-

DKS Co. Ltd. (4461)(2) Overview of Financial Position for the Fiscal Year Under Review(Assets)
Current assets at the end of the fiscal year ended March 31, 2023 were ¥45,411 million, down ¥1,122
million from the end of the previous fiscal year. This was primarily due to a decrease of ¥3,095 million
in cash and deposits, despite an increase of ¥685 million in electronically recorded monetary claims operating and an increase of ¥1,128 million in inventories such as merchandise and finished goods.
Non-current assets totaled ¥39,614 million, down ¥321 million from the end of the previous fiscal year.
This was primarily due to a decrease of ¥615 million in property, plant and equipment.
As a result, total assets amounted to ¥85,025 million, down ¥1,443 million from the end of the previous
fiscal year.
(Liabilities)
Current liabilities at the end of the fiscal year ended March 31, 2023 were ¥20,639 million, down
¥1,086 million from the end of the previous fiscal year. This was primarily due to a ¥232 million
decrease in notes and accounts payable-trade, a ¥194 million decrease in short-term borrowings, and a¥343 million decrease in income taxes payable. Non-current liabilities totaled ¥26,089 million, up¥1,730 million from the end of the previous fiscal year. This was primarily due to an increase of ¥2,296
million in long-term borrowings.
As a result, total liabilities at the end of the period under review were ¥46,729 million, up ¥643 million
from the end of the previous fiscal year.
(Net assets)
Total net assets at the end of the fiscal year ended March 31, 2023 were ¥38,296 million, down ¥2,087
million from the end of the previous fiscal year. This was primarily due to an increase in treasury sharesof ¥1,466 million due to purchase of treasury shares and a decrease in retained earnings of ¥1,248
million resulting from loss attributable to owners of parent of ¥407 million and dividend of surplus of¥840 million, despite an increase in non-controlling interests of ¥333 million.
As a result, the equity ratio came to 40.4% (42.5% as of the end of the previous fiscal year).
(3) Overview of Cash Flows for the Fiscal Year Under Review
Cash and cash equivalents (“cash”) at the fiscal year ended March 31, 2023 were ¥9,051 million, adecrease of ¥3,099 million compared to the end of the previous fiscal year.
The respective cash flow positions and the factors thereof in the fiscal year ended March 31, 2023 are
as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥724 million (¥5,520 million was provided in theprevious fiscal year). This was due to a decrease in funds resulting primarily from an increase ininventories of ¥1,362 million (an increase of ¥2,016 million in the previous fiscal year) and an increasein trade receivables of ¥722 million (a decrease of ¥519 million in the previous fiscal year), and anincrease in funds resulting primarily from depreciation of ¥3,295 million (¥3,430 million in theprevious fiscal year).
(Cash flows from investing activities)
Net cash used in investing activities was ¥2,883 million (¥2,700 million was used in the previous fiscal
year). This was due to a decrease in funds due to expenditures from purchase of property, plant andequipment of ¥2,834 million (¥2,661 million for the previous fiscal year).

-4-

DKS Co. Ltd. (4461)(Cash flows from financing activities)
Net cash used in financing activities was ¥1,030 million (¥2,336 million was used in the previous fiscal
year). This was due to a decrease in funds resulting primarily from repayment of long-term borrowingsof ¥5,879 million (¥6,595 million in the previous fiscal year), purchase of treasury shares of ¥1,500
million, and payment of dividends of ¥840 million (¥712 million in the previous fiscal year) despite anincrease in funds from proceeds from long-term borrowings of ¥7,700 million (¥4,890 million in theprevious fiscal year).
(4) Future Outlook
The Group has entered the fourth year of its medium-term management plan, “FELIZ 115.” Initially,
we were going to focus on business expansion starting in the third year of the plan, but market
stagnation due to the prolonged COVID-19 pandemic, geopolitical risks such as Russia’s militaryinvasion of Ukraine, and soaring prices of crude oil, naphtha, and other raw materials have hindered
our efforts to secure profits.
In response to this situation, we will come together as a group to work on improving profitability,
accelerating our efforts to address urgent management issues such as strengthening segment
management, reviewing unprofitable businesses, redistributing management resources, and rebuilding
our performance evaluation and compensation system.
For the next fiscal year, we forecast net sales of ¥68,000 million, operating income of ¥2,500 million,
ordinary income of ¥2,300 million, profit attributable to owners of parent of ¥1,200 million.
(5) Basic Policy for Profit Distributions and Dividends for Current and Next Fiscal Years
Our basic policy is to maintain long-term and stable dividends to our shareholders while keeping areasonable level of internal reserves that we deem is necessary for future business development. With
regard to internal reserves, we will strive to increase corporate value by actively utilizing these for theinvestment necessary for future business development that will lead to strengthening international
competitiveness and new growth.
Although the business circumstances have been difficult, we will pay a year-end dividend of ¥40 tomaintain stable dividends to our shareholders.
Furthermore, in the next fiscal year, because we do not expect a quick recovery from the continuing
poor market conditions, we are planning to pay an interim dividend of ¥20 per share and a year-end
dividend of ¥30 per share, for a total annual dividend of ¥50 per share. We will accelerate our efforts toaddress urgent management issues as we work to improve profitability and secure profits.

-5-

DKS Co. Ltd. (4461)

2. Basic Concept Regarding Selection of Accounting Standards
Most of the stakeholders of the Group are domestic shareholders, creditors, business partners, etc., andthere is little need to raise funds from overseas, we have applied Japanese standards as accounting
standards.
In the future, we plan to consider the application of international accounting standards based on changes in
the ratio of foreign shareholders and trends in the application of international accounting standards of othercompanies in the same industry in Japan.

-6-

DKS Co. Ltd. (4461)

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

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Prepaid expenses
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
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-7-

As of March 31, 2022

As of March 31, 2023

12,224526
14,432

9,128
345
14,759

1,532

2,218

11,582
21
3,905
317
1,996
(4)
46,534

13,131
16
3,489
369
1,956
(3)
45,411

30,486(16,944)
13,54137,426(31,870)
5,555
4,144
(3,413)
730
9,638
4,804
(2,004)2,800
1,091
33,35830,640(17,805)
12,83435,272(30,621)
4,650
4,285
(3,484)
800
9,748
4,582
(2,244)2,338
2,369
32,743

213
405
618

–
341
341

4,004
16
231
172
1,228
310
(6)
5,958
39,93586,469

4,274
14
512
299
1,063
371
(6)
6,529
39,61485,025

DKS Co. Ltd. (4461)(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Lease liabilities
Accrued expenses
Income taxes payable
Accrued business office taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Corporate bonds
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
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-8-

As of March 31, 2022

As of March 31, 2023

10,204
429
6,711
558
348
576
41
816
2,040
21,726

9,972
379
6,516
474
308
232
41
712
2,002
20,6396,000
15,051
2,551
318
107
74
255
24,35946,0866,000
17,348
2,131
196
79
74
259
26,08946,7298,895
7,278
20,498(1,021)35,6508,895
7,276
19,250(2,488)32,933

181

467

507
427
1,116
3,616
40,38386,469

765
180
1,413
3,949
38,29685,025

DKS Co. Ltd. (4461)(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated statement of income)(Millions of yen)
Fiscal year ended March 31,
2022

Fiscal year ended March 31,
2023

62,672
46,954
15,71865,081
52,12012,960

4,173
6,918
11,092
4,626

4,198
7,574
11,773
1,186

7
85

10
105

55

36

55
35
79
319

144
35
89
421

188
37
365
162
753
4,192

199
37
–
170
407
1,200

–
194
194

50
–
50

–
–
173
34
207
4,179
1,087
52
1,139
3,039
546
2,492

786
137
102
–
1,027
224
459
(185)
274
(49)
357
(407)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Rental income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Corporate bond interest
Inactive facility expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of investment securities
Reversal for provision for waste disposal costs
Total extraordinary income
Extraordinary losses
Impairment losses
Amortization of goodwill
Loss on disposal of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent-9-DKS Co. Ltd. (4461)(Consolidated statement of comprehensive income)(Millions of yen)
Fiscal year ended March 31,
2022

Fiscal year ended March 31,
2023

3,039

(49)

(303)
768
142

286
356
(238)

50

21

658
3,697

425
375

2,824

(110)

872

486

Profit (loss)
Other 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 ofparentComprehensive income attributable to noncontrolling interests- 10 -

DKS Co. Ltd. (4461)(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of period

Capital surplus

Retained earnings

7,267

18,733

8,895

Cumulative effects ofchanges in accounting
policies
Restated balance

Total shareholders’equityTreasury shares(1,040)

(15)
8,895

7,267

33,856(15)

18,718(1,040)33,841

Changes during period
Dividends of surplus

(712)

(712)

Profit (loss) attributable toowners of parent

2,492

2,492

Purchase of treasury shares
Disposal of treasury shares

11

(0)

(0)

18

29

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

–

11

1,780

18

1,809

8,895

7,278

20,498(1,021)35,650

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

484

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

24

282

Total accumulated
othercomprehensive
income791

Non-controllinginterests

Total net assets

2,756

37,404

Cumulative effects ofchanges in accounting
policies
Restated balance

(15)
484

24

282

791

2,756

37,389Changes during period
Dividends of surplus(712)

Profit (loss) attributable toowners of parent

2,492

Purchase of treasury shares(0)

Disposal of treasury shares

29

Net changes in items otherthan shareholders’ equity

(303)

482

145

324

860

1,184

Total changes during period

(303)

482

145

324

860

2,994

Balance at end of period

181

507

427

1,116

3,616

40,383- 11 -

DKS Co. Ltd. (4461)

Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of period

Capital surplus

Retained earnings

7,278

20,498

8,895

Total shareholders’equityTreasury shares(1,021)

Cumulative effects ofchanges in accounting
policies
Restated balance

35,650
–

8,895

7,278

20,498(1,021)35,650Changes during period
Dividends of surplus

(840)

(840)

Profit (loss) attributable toowners of parent

(407)

(407)

Purchase of treasury shares
Disposal of treasury shares(2)(1,500)(1,500)33

31

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period–(2)(1,248)(1,466)(2,717)

8,895

7,276

19,250(2,488)32,933

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

181

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

507

427

Total accumulated
othercomprehensive
income1,116

Non-controllinginterests

Total net assets

3,616

40,383Cumulative effects ofchanges in accounting
policies
Restated balance

–
181

507

427

1,116

3,616

40,383

Changes during period
Dividends of surplus(840)

Profit (loss) attributable toowners of parent(407)

Purchase of treasury shares(1,500)

Disposal of treasury shares

31

Net changes in items otherthan shareholders’ equity

286

257

(246)

296

333

630

Total changes during period

286

257

(246)

296

333

(2,087)

Balance at end of period

467

765

180

1,413

3,949

38,296- 12 -

DKS Co. Ltd. (4461)(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended March 31,
2022

Fiscal year ended March 31,
2023

4,179
3,430
150

224
3,295
213

(9)

(2)

(417)

(249)

(385)

–

(93)
188
37

(115)
199
37

(55)

(36)

–

786

173

102

34
–
519
(2,016)
744
213
6,693
181
(227)
(1,127)
5,520

–
(50)
(722)
(1,362)
(321)
(442)
1,556
240
(234)
(838)
724

(69)
68
(2,661)
–
(2)
–
1
(36)
(2,700)(78)
78(2,834)
10
(2)
70
1
(128)
(2,883)673
4,890(6,595)
(571)
(0)
(712)
(40)

174
7,700
(5,879)(531)(1,500)
(840)
(152)

20

–

(2,336)(1,030)

135

89

619

(3,099)Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for waste disposal
costsInterest and dividend income
Interest expenses
Corporate bond interest
Share of loss (profit) of entities accounted for using
equity method
Impairment losses
Loss (gain) on disposal of property, plant andequipment
Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other
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 property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from collection of loans receivable
Other
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
Repayments of lease liabilities
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Proceeds from share issuance to non-controllingshareholders
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- 13 -

DKS Co. Ltd. (4461)(Millions of yen)
Fiscal year ended March 31,
2022

Fiscal year ended March 31,
2023

11,531
12,151

12,151
9,051

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 14 -

DKS Co. Ltd. (4461)(5) Notes to Consolidated Financial Statements(Notes on premise of going concern)
Not applicable.
(Notes on significant accounting estimate)
The following items are recorded in the consolidated financial statements for the fiscal year ended
March 31, 2023 based on accounting estimates and may have a significant impact on the consolidated
financial statements for the next consolidated fiscal year.
Recoverability of deferred tax assets(1) Amount recorded in consolidated financial statements for the fiscal year ended March 31, 2023
(Millions of yen)
As of March 31, 2022

As of March 31, 2023

1,037

1,324

Deferred tax assets (before offsetting with deferred tax
liabilities)(2) Information on significant accounting estimates for identified items
At the end of the fiscal year under review, we scheduled the timing of the reversal of deductible
temporary differences and tax loss carryforwards based on future taxable income estimatedaccording to future business plans and recorded deferred tax assets to reflect the extent of theireffect on reducing the future tax burden.
In this business plan, the main assumptions include progress on price pass-through in response
to soaring raw material and energy prices and the sales volume forecast based on projecteddemand in the product markets to which the Company belongs.
These estimates may be affected by fluctuations in uncertain economic conditions in the future.
If the actual timing and amount of taxable income generated differ from the estimates, it could
have a material effect on the amount of deferred tax assets in the consolidated financial
statements for the next fiscal year.
(Changes in accounting policies)
Application of Accounting Standard for Fair Value Measurement, etc.
We have applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021; “Fair Value Measurement Implementation Guidance”) fromthe beginning of the fiscal year under review and decided to apply new accounting standards set forthin the Fair Value Measurement Implementation Guidance prospectively in accordance with thetransitional treatment provided for in Section 27-2 of the Fair Value Measurement Implementation
Guidance.
There is no impact of application of this implementation guidance on the consolidated financial
statements.
(Notes on Consolidated statement of income)
Inactive facility expenses
Expenses related to inactive equipment in the fiscal year ended March 31, 2022 are fixed costs related
to the period during which operation of radcure resin materials manufacturing equipment in the Chitose
Plant of the Yokkaichi Branch was suspended, etc.

- 15 -

DKS Co. Ltd. (4461)(Segment information, etc.)
a. Segment information
1. Description of Reportable Segments
Our reportable segments are subject to regular review by the Board of Directors to determine
resource allocation decisions and assess performance for which separate financial information
is available from constituent units of the Company.
We have six reportable segments, that is, “Surfactants,” “Amenity Materials,” “Polyurethane
Materials,” “Functional Materials,” “Electronic Device Materials” and “Life Sciences,”
depending on the composition and manufacturing method of the product.
“Surfactants” manufactures and sells nonionic surfactants, anionic surfactants, cationicsurfactants, amphoteric surfactants, etc. “Amenity Materials” manufactures and sells sucrose
fatty acid esters, cellulose polymers (CMC), vinyl polymer materials, acrylic polymer
materials, etc. “Polyurethane Materials” manufactures and sells polyether polyols, urethane
prepolymers, urethane systems, etc. “Functional Materials” manufactures and sells radcure
resin materials, waterborne polyurethane resins, flame retardants, amide-based lubricants, etc.
“Electronic Device Materials” manufactures and sells ionic liquids, conductive pastes forelectronic components, pellets for injection molding, etc. “Life Sciences” manufactures andsells health foods (TENCHUKASOU, I. Japonica-Bombyx Fungus, Sudachin, etc.).
2. Explanation of measurements of sales, profit (loss), asset, and other items for each reportablesegment
The method of accounting for the reported business segments is in line with the accounting
policies adopted to prepare the consolidated financial statements.
Profit for the reportable segment is based on operating income.
3. Disclosure of sales, profit (loss), asset, and other items for each reportable segment
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable segments

Amountrecorded in
Reconcilingconsolidated
items
financial(Note) 3
statements(Note) 1

Functional
Materials

Electronic
DeviceMaterials

8,294

19,9287,316

476

62,672–

62,672

8,092

8,294

19,9287,316

476

62,672–

62,672

–

–

–

–

–

–

–

–

–
62,672

Surfactants

Amenity
Materials

Revenue fromcontracts withcustomers

18,564

8,092

Revenues fromexternal customers

18,564

Transactions withother segments

Polyurethane
Materials

Life Sciences

Total

Net sales

Total

18,564

8,092

8,294

19,9287,316

476

62,672–

Segment profit (loss)

2,476

566

55

1,355

715

(543)

4,626

–

4,626

Segment assets

18,009

9,187

10,766

26,732

3,427

1,332

69,45517,01486,469Depreciation(Note) 2

922

458

743

1,131

72

55

3,383

46

3,430

Amortization of
goodwill

–

–

–

–

–

150

150

–

150

Investments inentities accounted forusing equity method

301

–

–

393

–

–

694

–

694

Increase in property,
plant and equipment
and intangible assets

549

366

69

762

96

80

1,925

–

1,925

Other items- 16 -

DKS Co. Ltd. (4461)

Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable segments

Amountrecorded in
Reconcilingconsolidated
items
financial(Note) 3
statements(Note) 1

Functional
Materials

Electronic
DeviceMaterials

8,761

22,574

6,191

497

65,081–65,081

8,079

8,761

22,574

6,191

497

65,081–65,081

–

–

–

–

–

–

–

–

–
65,081

Surfactants

Amenity
Materials

Revenue fromcontracts withcustomers

18,976

8,079

Revenues fromexternal customers

18,976

Transactions withother segments

Polyurethane
Materials

Life Sciences

Total

Net sales

Total

18,976

8,079

8,761

22,574

6,191

497

65,081–

Segment profit (loss)

1,749

(1)

(247)

281

139

(734)

1,186

–

1,186

Segment assets

18,120

9,361

9,284

28,732

3,288

1,133

69,92015,10485,025

Depreciation(Note) 2

748

500

534

1,324

86

57

3,250

44

3,295

Amortization of
goodwill

–

–

–

–

–

213

213

–

213

Investments inentities accounted forusing equity method

301

–

–

339

–

–

640

–

640

Increase in property,
plant and equipment
and intangible assets

1,012

604

28

1,357

151

18

3,172

–

3,172

Other items

Notes: 1. Total amount of profit or loss in reportable segments and operating income in the consolidated statement ofincome coincide.
2. Depreciation includes depreciation expenses associated with long-term prepaid expenses.
3. The adjustment amount is surplus assets under management (cash and deposits), long-term investment funds(investment securities) and assets related to the administrative department at the filing company.

- 17 -

DKS Co. Ltd. (4461)

b. Information associated with reportable segments
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)
1. Information for Each Product or Service(Millions of yen)
Surfactants

Amenity
Materials

18,564

8,092

Revenues fromexternalcustomers

Polyurethane
Materials

Functional
Materials

Electronic
DeviceMaterials

Life
Sciences

8,294

19,928

7,316

476

Total

62,672

2. Information for Each Region(1) Net sales(Millions of yen)
Japan

Asia
48,596

Notes:

Other
12,512

Total
1,563

62,672

1. Net sales is classified by country or region based on customers’ location.
2. Countries and regions are segmented by geographical proximity.
3. Major countries or regions included in each category:(i) Asia
Taiwan, China, South Korea, Indonesia(ii) Other regions
North America, Europe(2) Property, plant and equipment(Millions of yen)Japan

Taiwan27,668Notes:

Other
5,545

Total
144

33,358

1. Property, plant and equipment is classified by country or region based on companies’ location.
2. Major countries or regions included in “Other”:
China, Indonesia, Netherlands

Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
1. Information for Each Product or Service(Millions of yen)

Revenues fromexternalcustomers

Surfactants

Amenity
Materials

18,976

8,079

Polyurethane
Materials

Functional
Materials

Electronic
DeviceMaterials

Life
Sciences

8,761

22,5746,191

497- 18 -

Total

65,081

DKS Co. Ltd. (4461)

2. Information for Each Region(1) Net sales(Millions of yen)
Japan

Asia
49,574

Notes:

Other
13,578

Total
1,927

65,081

1. Net sales is classified by country or region based on customers’ location.
2. Countries and regions are segmented by geographical proximity.
3. Major countries or regions included in each category:(i) Asia
Taiwan, China, South Korea, Indonesia(ii) Other regions
North America, Europe(2) Property, plant and equipment(Millions of yen)Japan

Taiwan26,548Notes:

Other
5,964

Total
229

32,743

1. Property, plant and equipment is classified by country or region based on companies’ location.
2. Major countries or regions included in “Other”:
China, Indonesia, Netherlandsc. Disclosure of impairment losses on non-current assets for each reportable segment
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)
Not applicable.
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Surfactants

Impairment
losses–Amenity Polyurethan Functional
Materials e Materials Materials–

786Electronic
DeviceMaterials––

UnallocatedLifeamounts andSciences
elimination
–

–

Total

786

(Significant impairment losses related to non-current assets)
In the Polyurethane Materials segment, non-current assets belonging to the Company’s asset groupin the Polyurethane Materials segment declined due to delays in product price revision activities
and new product development activities in response to soaring raw material prices. In conjunction
with this, the book value of the assets was reduced to the recoverable amount, and that amount wasrecorded under extraordinary losses as an impairment loss. The recoverable amount of this asset
group is measured by utility value, which is zero because no future cash flows are expected.

- 19 -

DKS Co. Ltd. (4461)

d. Amortization and unamortized balance of goodwill for each reportable segment
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)
Surfactants

Amenity Polyurethan Functional
Materials e Materials Materials

Electronic
DeviceMaterials

UnallocatedLifeamounts andSciences
elimination

Total

Amortization in thefiscal year

–

–

–

–

–

150

–

150

Balance at
end ofperiod

–

–

–

–

–

213

–

213

Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Surfactants

Amenity Polyurethan Functional
Materials e Materials Materials

Electronic
DeviceMaterials

UnallocatedLifeamounts andSciences
elimination

Total

Amortization in thefiscal year

–

–

–

–

–

213

–

213

Balance at
end ofperiod

–

–

–

–

–

–

–

–

Note: Amortization in the fiscal year under review in the Life Sciences segment includes amortization in accordancewith the provisions of paragraph (32) of the “Practical Guidelines on Accounting Standards for Capital
Consolidation Procedures in Preparing Consolidated Financial Statements” (final revision of JICPA
Accounting Practice Committee Statement No. 7, October 28, 2022).

(Per share information)(Yen)
Fiscal year ended March 31, 2022
Net assets per share
Basic earnings (loss) per share

Fiscal year ended March 31, 2023

3,610.31

3,593.49

244.81(41.87)

Notes: 1. The amount of diluted earnings per share is not provided because there are no potential shares.
2. The basis for calculation of net assets per share is as follows:(Millions of yen)
Fiscal year ended March 31, 2022

Fiscal year ended March 31, 2023

Total net assets

40,38338,296

Deduction from total net assets

3,616

3,949

(Non-controlling interests)(3,616)(3,949)Net assets attributable to ordinary
shares at the end of the period

36,76734,346

Number of ordinary shares at the endof period used for calculating theamounts of net assets per share(Thousands of shares)

10,1839,558- 20 -

DKS Co. Ltd. (4461)

3. The basis for calculation of basic earnings (loss) per share is as follows:(Millions of yen)
Fiscal year ended March 31, 2022

Fiscal year ended March 31, 2023

Profit (loss) attributable to ownersof parent (Millions of yen)

2,492

(407)

Amounts not attributable toordinary shareholders (Millions of
yen)

－

－

Profit (loss) attributable to ownersof parent for ordinary shares(Millions of yen)

2,492

(407)

Average number of ordinary shares
outstanding during the period(Thousands of shares)

10,181

9,737

Basic earnings (loss) per share(Significant events after reporting period)
Not applicable.

- 21 -