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.

October 28, 2022

Consolidated Financial Results for the Nine Months Ended September 30,
2022 (Under Japanese GAAP)
Company name:Taki Chemical Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4025
URL:
https://www.takichem.co.jp/
Representative:
Takamoto Taki, Representative Director, President
Inquiries:
Tadashi Ohashi, General Manager, General Affairs & Personnel Department
TEL:
079-437-6002
Scheduled date to file quarterly securities report:
November 7, 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 nine months ended September 30, 2022 (from January 1,
2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended
September 30, 2022
September 30, 2021

Millions of yen

25,45523,392

Note: Comprehensive income

Operating profit% Millions of yen

–
8.4

1,923
1,982

Profit attributable toowners of parent

Ordinary profit% Millions of yen

–
83.0

2,182
2,190

% Millions of yen

–
65.3

1,670
1,423

%

–
44.9

For the nine months ended September 30, 2022:¥1,765 million[-%]For the nine months ended September 30, 2021:¥2,274 million[-%]Basic earnings per share
Nine months ended
September 30, 2022
September 30, 2021*

(Percentages indicate year-on-year changes.)

Diluted earnings per share

Yen

192.95
164.51Yen––

The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the first quarter of the current fiscal year, and each figure
for the nine months ended September 30, 2022 is the figure after applying the accounting standard and relevant ASBJ
regulations. The percentage of year-on-year change is not shown.

(2) Consolidated financial position
Total assets
As of
September 30, 2022
December 31, 2021
Reference:*

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

48,16346,03730,742
29,37863.6
63.5

EquityAs of September 30, 2022:¥30,613 million
As of December 31, 2021:¥29,236 million
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the first quarter of the current fiscal year, and each figure
as of September 30, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations.

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
December 31, 2021
Fiscal year ending
December 31, 2022

–

–

–

–

–

–

Fiscal year-end

Fiscal year ending
December 31, 2022
(Forecast)

Total

Yen

Yen

50.00

50.00

50.00

50.00

Note: Revisions to the forecast of cash dividends most recently announced: None
Breakdown of year-end dividend for the fiscal year ended December 31, 2021

Ordinary dividend:Special dividend:¥45.00¥5.00

3. Consolidated earnings forecast for the fiscal year ending December 31, 2022 (from January 1,
2022 to December 31, 2022)
Net sales

Operating profit

Millions ofyenFull year

35,200(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

%

–

Millions of
yen

2,350

%

–

Millions of
yen

2,750

%

–

Millions of
yen

1,950

%

–

Yen

225.24

Note: Revisions to the earnings forecast most recently announced: Yes*
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the first quarter of the current fiscal year, and the figures
for the above consolidated earnings forecast are the figures after applying the accounting standard and relevant ASBJ
regulations. The percentage of year-on-year change is not shown.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
Newly included:
0 companies
Excluded:
0 companies(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements: None
(3) 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 other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
* For more information, please see “(3) Notes to Quarterly Consolidated Financial Statements(Changes in Accounting Policies)” in “2. Quarterly Consolidated Financial Statements andSignificant Notes Thereto” on page 8 of the appendix.
(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2022

9,458,768

As of December 31, 2021

9,458,768(ii) Number of treasury shares at the end of the period
As of September 30, 2022

798,931

As of December 31, 2021

804,996(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Nine months ended September 30, 2022

8,657,276

Nine months ended September 30, 2021

8,651,313* Quarterly financial results reports are exempt from a quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The earnings forecast is based on information available to the Company as of the date of this document as well as certain
assumptions it believes to be reasonable, and actual results may differ materially due to various factors. Please also see“(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information” in “1. Qualitative
Information on Quarterly Financial Results” on page 3 of the appendix.

Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2022

Appendix Table of Contents
Index
1. Qualitative Information on Quarterly Financial Results ........................................................................... 2(1) Explanation of Operating Results ....................................................................................................... 2(2) Explanation of Financial Position ...................................................................................................... 3(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information............... 3
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto .......................................... 4(1) Quarterly Consolidated Balance Sheet ............................................................................................... 4(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income ...................................................................................................................... 6(Quarterly Consolidated Statement of Income) (First nine-month period) ........................................ 6(Quarterly Consolidated Statement of Comprehensive Income) (First nine-month period) .............. 7(3) Notes to Quarterly Consolidated Financial Statements ...................................................................... 8(Notes on Going Concern Assumption) ............................................................................................. 8(Notes on Significant Changes in Shareholders’ Equity) ................................................................... 8(Changes in Accounting Policies) ...................................................................................................... 8(Additional Information) .................................................................................................................... 8-1-

Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2022

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
The Taki Chemical Group (the “Group”) has applied the “Accounting Standard for Revenue
Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the
beginning of the first quarter of the current fiscal year. Due to this change, the revenue recognition
standard used for the first nine months of the current fiscal year is different from the one used for thesame period last fiscal year, and therefore no year-on-year change is shown in the explanation for
operating results.
The Japanese economy during the nine month-period remained rocky due primarily to the COVID-19
pandemic. Given the backdrop of rebounding economic and social activities coupled with measures toprevent the spread of COVID-19, the economic outlook appears poised to pick up due partly to theeffects of various government policies. However, the situation remains uncertain due to domestic andinternational pandemic trends and supply constraints as well as growing downside risks caused by raw
material price hikes, fluctuations in financial and capital markets, and other factors.
Working against this backdrop, the Group focused on enhancing the profitability of its current
businesses in line with the Medium-term Management Plan 2023 launched in January 2021. As a result,net sales for nine months under review totaled ¥25,455 million (¥23,392 million for the same period
last year), operating profit was ¥1,923 million (¥1,982 million for the same period last year), ordinary
profit was ¥2,182 million (¥2,190 million for the same period last year), and profit attributable toowners of the parent was ¥1,670 million (¥1,423 million for the same period last year).
Operating results by segment are as shown below.
Agriculture
While fertilizer sales volume declined as a reaction to last-minute demand in anticipation of priceincreases, sales prices rose due to higher raw material prices, resulting in net sales of ¥7,400
million (¥6,656 million for the same period of last year).
Chemicals
Sales of water treatment chemicals totaled ¥6,869 million (¥6,276 million for the same period lastyear) as the sales volume increased due to steady shipments of ultra-high-basicity polyaluminum
chloride and more.
Sales of functional materials amounted to ¥4,332 million (¥4,144 million for the same period lastyear) due to a higher sales volume of high-purity tantalum oxide for smartphones although the sales
volume of high-basicity aluminum chloride used in ceramic fibers for automotive applications
declined due to semiconductor shortages.
Sales of other chemical products totaled ¥146 million (¥142 million for the same period last year).
As a result, net sales came to ¥11,348 million (¥10,562 million for the same period last year).
Construction materials
Gypsum board sales volume and prices were on par with the same period last year, resulting in net
sales of ¥2,101 million (¥2,102 million for the same period last year).

-2-

Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2022

Petroleum
While the fuel oil sales volume declined, net sales came to ¥1,598 million (¥1,393 million for thesame period last year) as selling prices rose due to higher crude oil prices.
Real estate
Net sales totaled ¥1,001 million (¥942 million for the same period last year) due primarily to arecovery in rental income from shopping centers.
Transportation
Net sales totaled ¥2,006 million (¥1,734 million for the same period last year) due to an upward
trend in the coastal shipping market and an increase in cargo handling volume.
(2) Explanation of Financial Position
Total assets at the end of the third quarter of the current fiscal year came to ¥48,163 million (up ¥2,125
million from the end of the previous fiscal year). Current assets totaled ¥24,805 million (up ¥2,452
million from the end of the previous fiscal year) due primarily to increases of ¥1,218 million in cash
and deposits, ¥1,163 million in merchandise and finished goods, and ¥448 million in raw materials andsupplies, despite a decrease of ¥1,199 million in notes and accounts receivable - trade. Non-current
assets came to ¥23,357 million (down ¥327 million from the end of the previous fiscal year), due
primarily to a decrease of ¥387 million in property, plant and equipment.
Total liabilities amounted to ¥17,420 million (up ¥761 million from the end of the previous fiscal year)
due primarily to increases of ¥1,486 million in notes and accounts payable - trade and ¥252 million inprovision for bonuses, despite a decrease of ¥761 million in accounts payable - other.
Net assets totaled to ¥30,742 million (up ¥1,364 million from the end of the previous fiscal year), due
primarily to an increase of ¥1,237 million in retained earnings.
(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
The full year consolidated earnings forecast announced on February 14, 2022 has been revised in lightof the results for the first nine-month period and other factors. For details, see the “Notice Regarding
Revisions to the Full-Year Consolidated Earnings Forecast” released separately today (October 28,2022).

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Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2022

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheet(Millions of yen)
As of December 31, 2021

As of September 30, 2022

6,433
8,963

7,651
7,764

1,893

1,955

100
2,285
242
2,216
227
(10)
22,352

–
3,449
277
2,664
1,053
(10)
24,80522,197(15,203)
6,994
16,776(14,949)
1,827
1,481
(1,331)
149
6,413
457
(49)
408
16
15,80922,273(15,535)
6,737
16,840(15,289)
1,550
1,505
(1,377)
127
6,457
457
(73)
383
164
15,422

500
10
11
522

431
10
5
447

7,072
101
214
(35)
7,352
23,68546,037

7,149
168
204
(35)
7,487
23,357
48,163

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
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
SoftwareRight to use water facilities, etc.
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2022
(Millions of yen)
As of December 31, 2021

As of September 30, 2022

4,976
376
60
35
1,964
429
112
43
597
8,596

6,462
368
60
35
1,203
471
58
296
603
9,559

455
413
698
3,770
2,539
185
8,062
16,659

395
386
661
3,725
2,508
182
7,861
17,4202,147
1,372
23,888(736)
26,672

2,147
1,398
25,125(729)
27,941

2,581

2,685

(17)
2,563
142
29,37846,037

(12)
2,672
128
30,742
48,163Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
Retirement benefit liability
Guarantee deposits received
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-

Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2022

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income(Quarterly Consolidated Statement of Income)(First nine-month period)(Millions of yen)
Nine months ended
September 30, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on valuation of investment securities
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-6-

Nine months ended
September 30, 2022

23,392
17,124
6,268
4,285
1,982

25,45519,037
6,418
4,495
1,923

4
158
85
249

4
199
92
296

9
21
11
41
2,190

9
12
16
37
2,182

–
–

145
145

7
5
172
184
2,005
610
(29)
580
1,424
1
1,423

–
–
14
14
2,313
815
(157)
657
1,656
(13)
1,670

Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2022

(Quarterly Consolidated Statement of Comprehensive Income)(First nine-month period)(Millions of yen)
Nine months ended
September 30, 2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests-7-

Nine months ended
September 30, 2022

1,424

1,656

845
3
849
2,274

103
4
108
1,765

2,273

1,779

1

(13)

Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2022

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Not applicable(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Group has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant ASBJ regulations effective from the beginning of the first quarterof the current fiscal year, and it has recognized revenue at the time the control of promised goods orservices are transferred to the customer in the amount expected to be received upon exchange of said
goods or services. As a result, in cases of transactions involving chargeable subcontracting, theGroup previously derecognized the materials supplied to its subcontractors for a fee but no longer
derecognizes them if it bears an obligation to repurchase the supplied materials. The Group has also
applied the alternative treatment specified in paragraph 98 of the “Implementation Guidance on
Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30, March 26, 2021), and incases of sale of merchandise and finished goods in Japan, it still recognizes revenue at the time of
shipment when the period from the time of shipment to the time when control of the merchandise orfinished goods is transferred to the customer is a normal period of time.
Application of Accounting Standard for Revenue Recognition and its implementation guidance issubject to the transitional treatment provided for in the proviso to paragraph 84 of AccountingStandard for Revenue Recognition. The cumulative effect of the retrospective application, assuming
the new accounting policy had been applied to periods prior to the start of the first quarter of thecurrent fiscal year, was added to or subtracted from the opening balance of retained earnings of thefirst quarter of the current fiscal year, and thus the new accounting policy was applied from suchopening balance; provided, however, that the new accounting policy was not retrospectively applied
to contracts where recognitions of nearly all the revenue amounts for periods prior to the start of thefirst quarter of the current fiscal year, were subject to the previous treatment by applying the method
provided for in paragraph 86 of Accounting Standard for Revenue Recognition.
As a result, in the nine-month period, there were decreases of ¥1,083 million in net sales, ¥1,083
million in cost of sales and ¥0 million in profit before income taxes. It also does not have any effecton the opening balance of retained earnings for the current fiscal year.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Group has applied “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant ASBJ regulations from the beginning of the first quarter of the current
fiscal year, and it has applied the new accounting policy provided for by Accounting Standard for
Fair Value Measurement, etc. prospectively in accordance with the transitional measures provided
for in paragraph 19 of Accounting Standard for Fair Value Measurement, and paragraph 44-2 of“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). This has
no effect on the quarterly consolidated financial statements.
(Additional Information)(Accounting Estimates)
COVID-19 has delivered a major blow to the economy and corporate activities, including theGroup’s operations.

-8-

Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2022

Assuming that its impact will continue for at least some part of the current fiscal year, the Groupmade accounting estimates for the impairment of fixed assets, the recoverability of deferred tax
assets, etc. in light of projected demand and determined that COVID-19 would have no material
impact.
Although the Group has made estimates and judgments that it believes are reasonable based on thecurrent situation and available information, actual results may differ from these estimates because of
the uncertainties involved in estimating the resurgence of COVID-19, when the pandemic will end,and other factors.

-9-