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.

February 9, 2023

Consolidated Financial Results
for the Nine Months Ended December 31, 2022
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

Dai Nippon Toryo Co., Ltd.
Tokyo Stock Exchange4611
https://www.dnt.co.jp/english/
Takayuki Sato, President
Tatsuhiko Nagano, Director, Managing Executive Officer
General Manager, Administrative Division
Telephone:+81-6-6266-3102
Scheduled date to file quarterly securities report:
February 10, 2023
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: Yes
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 December 31, 2022 (from April 1, 2022
to December 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

December 31, 2022

54,122

7.8

3,035

16.5

3,283

20.0

2,185

30.8

December 31, 2021

50,225

7.5

2,606

41.5

2,734

22.4

1,670

40.8

Note: Comprehensive income

For the nine months ended December 31, 2022:
For the nine months ended December 31, 2021:

Basic earnings
per share
Nine months ended¥3,011 million¥1,458 million[106.4%][18.1%]

Diluted earnings
per share
Yen

Yen

December 31, 2022

76.99

76.41

December 31, 2021

58.98

58.53

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

December 31, 2022

94,56054,18154.0

1,794.17

March 31, 2022

87,70551,99155.9

1,730.00

Reference:

EquityAs of December 31, 2022:
As of March 31, 2022:¥51,016 million¥49,015 million%

Yen2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

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

–

0.00

–

–

0.00

–

Fiscal year-end

Fiscal year ending
March 31, 2023
(Forecast)

Total

Yen

Yen

25.00

25.00

25.00

25.00

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 toMarch 31, 2023)
Net sales
Millions ofyen

Fiscal year ending
March 31, 2023

72,000Operating profit%

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

Ordinary profit

Millions ofyen%Millions ofyen%Millions of
yen

3,800

19.4

4,200

21.2

3,300

Note: Revisions to the consolidated earnings forecasts most recently announced: None

%

62.4

Yen

116.22

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(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:None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022

29,710,678 shares

As of March 31, 2022

29,710,678 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2022

1,276,092 shares

As of March 31, 2022

1,377,931 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Nine months ended December 31, 2022

28,381,717 shares

Nine months ended December 31, 2021

28,320,032 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
The earnings forecasts and other forward-looking statements in these materials are based on information
currently available to the Company and on certain assumptions deemed reasonable, and the Company
does not intend to guarantee their achievement. Furthermore, actual results, etc. may differ significantly
due to various factors. Please refer to “1. Qualitative Information on Financial Results for the Quarter,(3) Explanation of forward-looking information such as consolidated earnings forecasts” on page 3 ofthe attached materials for the suppositions that form the assumptions for earnings forecasts and cautions
concerning the use thereof.

○ Table of Contents of Attached Materials
Index
1. Qualitative Information on Financial Results for the Quarter .................................................................. 2(1) Explanation of operating results ......................................................................................................... 2(2) Explanation of financial position........................................................................................................ 3(3) Explanation of forward-looking information such as consolidated earnings forecasts ...................... 3
2. Quarterly Consolidated Financial Statements and Major Notes ............................................................... 4(1) Quarterly consolidated balance sheet ................................................................................................. 4(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income 6
Quarterly consolidated statement of income (cumulative) ................................................................. 6
Quarterly consolidated statement of comprehensive income (cumulative) ........................................ 7(3) Notes on quarterly consolidated financial statements ........................................................................ 8(Notes on the premise of a going concern) ......................................................................................... 8(Note when there is a significant change in the amount of shareholders’ equity) .............................. 8(Changes in important subsidiaries during the period) ....................................................................... 8(Segment information, etc.) ................................................................................................................ 8(Significant subsequent events) ........................................................................................................ 10-1-

1. Qualitative Information on Financial Results for the Quarter(1) Explanation of operating results
In the first nine months of the fiscal year ending March 31, 2023, the Japanese economy progressively
achieved a balance between preventing the spread of the novel coronavirus infection and maintaining
economic activities. However, the outlook remained uncertain due to factors such as not only the rise in
raw material prices and energy prices triggered by the prolonged situation in Ukraine, but the downturnin overseas economies and sharp fluctuations in exchange rates brought about by global monetary
tightening.
As for the Group’s business results, net sales were ¥54,122 million (a 7.8% year-on-year increase)
thanks to progress in price pass-through in each segment. On the profit side, this progress in price passthrough and a strong performance in the lighting business resulted in an operating profit of ¥3,035
million (a ¥429 million year-on-year increase), ordinary profit of ¥3,283 million (a ¥548 million yearon-year increase), and profit attributable to owners of parent of ¥2,185 million (a ¥514 million year-onyear increase).
The business results by segment were as follows.
[Domestic coatings business]
In the general-use sector, sales of coatings for structures remained strong, but in the industrial-use
sector, sales remained sluggish due to a decline in demand for coatings for building materials andplastics. In this segment, net sales increased year on year due to further progress in price passthrough. On the profit side, the price pass-through was not enough to offset the impact of higher
raw material prices, resulting in a lower profit year on year.
As a result, net sales were ¥39,896 million (a 6.5% year-on-year increase), and operating profit was¥1,601 million (a ¥95 million year-on-year decrease).
[Overseas coatings business]
In Southeast Asia, demand from major customers recovered in Singapore and Malaysia. In North
and Central America, demand for coatings for automotive parts decreased due to a decline inproduction by major customers. In China, although sales of baking coatings increased thanks to theacquisition of new customers, demand for coatings for automotive parts decreased due primarily tothe impact of the COVID-19 Zero policy (policy of no newly infected patients). In this segment,
net sales were higher year on year due to measures to pass on the rise in raw material prices and theeffect of foreign currency translation resulting from the yen’s depreciation. Profits were lower year
on year due primarily to a decrease in demand and the impact of higher raw material prices inThailand, Mexico and China.
As a result, net sales were ¥5,917 million (a 15.3% year-on-year increase), and operating profit was¥241 million (a ¥17 million year-on-year decrease).
[Lighting business]
In the commercial LED lighting field, net sales in this segment were higher year on year due tomeasures to pass on the rise in raw material prices, in addition to a recovery in demand for lighting
for commercial facilities and construction. As for profits, they exceeded year on year levels due toincreased sales and efforts to reduce costs.
As a result, net sales were ¥6,083 million (a 9.0% year-on-year increase), and operating profit was¥874 million (a ¥511 million year-on-year increase).

-2-

[Fluorescent color material business]
In the processed products segment, demand is on a recovery trend due to the resumption of various
events, etc. However, in the pigments segment, demand from major customers declined in both
domestic and overseas markets, and net sales in this segment fell year on year. In terms of earnings,
sales increased year on year due to measures to pass on the rise in raw material prices and reduce
expenses.
As a result, net sales were ¥860 million (a 5.7% year-on-year decrease), and operating profit was¥57 million (a ¥26 million year-on-year increase).
[Other businesses]
Net sales were ¥1,364 million (an 18.2% year-on-year increase), and operating profit was ¥104
million (a ¥2 million year-on-year decrease).
(2) Explanation of financial position
Total assets at the end of the third quarter of the fiscal year ending March 31, 2023, were ¥94,560
million, an increase of ¥6,855 million from the end of the previous fiscal year. Current assets increasedby ¥5,557 million to ¥40,330 million from the end of the previous fiscal year. This was mainly due toan increase in notes and accounts receivable - trade, and contract assets of ¥3,640 million, and anincrease in inventories of ¥1,848 million. Non-current assets totaled ¥54,229 million, an increase of¥1,297 million from the end of the previous fiscal year. This was mainly due to an increase in property,
plant and equipment of ¥1,140 million, and an increase in investments and other assets of ¥190 million.
Liabilities totaled ¥40,379 million, an increase of ¥4,665 million from the end of the previous fiscal
year. Current liabilities totaled ¥31,026 million, an increase of ¥5,235 million from the end of theprevious fiscal year, mainly due to an increase of ¥2,708 million in notes and accounts payable - trade,an increase in short-term borrowings of ¥2,800 million, a decrease in provision for product warrantiesof ¥121 million, and an increase in lease liabilities of ¥191 million. Non-current liabilities were ¥9,352
million, a decrease from the end of the previous fiscal year of ¥570 million. The main factors in thiswere a decrease of long-term borrowings of ¥300 million, and a decrease in lease liabilities of ¥217
million.
Net assets were ¥54,181 million, an increase of ¥2,189 million from the end of the previous fiscal year.
The main reasons for this were an increase in retained earnings of ¥1,452 million, a decrease in treasury
shares of ¥116 million, a decrease in valuation difference on available-for-sale securities of ¥200
million, an increase in foreign currency translation adjustment of ¥1,304 million, a decrease in theremeasurements of defined benefit plans of ¥672 million, and an increase in non-controlling interests of¥266 million.
(3) Explanation of forward-looking information such as consolidated earnings forecasts
The consolidated earnings forecast for the full year ending March 31, 2023, is unchanged from theforecast announced on October 27, 2022.

-3-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheet(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise 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
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

As of December 31, 2022

6,777

6,741

16,411

20,052

5,603
905
3,720
1,386
(31)
34,773

6,605
982
4,488
1,475
(15)
40,33022,323(14,449)
7,873
23,441(19,669)
3,772
11,4981,902(1,001)
900
209
6,820
(5,483)
1,336
25,591

23,175(15,038)
8,136
24,158(20,298)
3,859
12,313
1,777(1,070)
706
152
7,351
(5,788)
1,562
26,732

120
254
374

85
255
341

7,324
1,794
17,264608(25)
26,96552,93287,705

6,973
1,771
17,893540(23)
27,15654,22994,560(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses for directors (and otherofficers)
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Retirement benefit liability
Provision for environmental measures
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-5-

As of December 31, 2022

16,340
3,050
312
429

19,048
5,850
504
366

56

–

370
5,230
25,790249
5,007
31,026

1,200
981
5,436
1,303
938
8
54
9,923
35,713

900
764
5,339
1,303
995
–
49
9,352
40,3798,827
2,440
29,417(1,582)
39,1018,827
2,440
30,870(1,465)40,671

3,027
1,882
(2)
5,006
9,913
243
2,732
51,99187,705

2,827
1,882
1,301
4,333
10,344
166
2,998
54,181
94,560(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income
Quarterly consolidated statement of income (cumulative)(Millions of yen)

Nine months ended
December 31, 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
Compensation expenses
Provision for product warranties
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
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-

Nine months ended
December 31, 2022

50,22535,292
14,932
12,326
2,606

54,122
38,623
15,49812,462
3,035

13
185
261
460

10
206
236
454

51
83
103
94
332
2,734

56
23
40
86
207
3,283

105
82
188

2
8
10

94
0
–
95
2,828
408
583
991
1,836
166
1,670

42
71
24
138
3,154
524
323
847
2,307
122
2,185

Quarterly consolidated statement of comprehensive income (cumulative)
Nine months ended
December 31, 2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-(Millions of yen)
Nine months ended
December 31, 2022

1,836

2,307

41
188
(607)

(200)
1,577
(672)

0

0

(377)
1,458

704
3,011

1,353

2,615

105

395

(3) Notes on quarterly consolidated financial statements(Notes on the premise of a going concern)
Not applicable.
(Note when there is a significant change in the amount of shareholders’ equity)
The Company has disposed of 22,455 of its own treasury shares as restricted stock compensation,
based on the resolution passed at the Board of Directors meeting held on June 29, 2022. The Company
also disposed of 79,400 treasury shares through the exercise of employee share options. As a result,during the first nine months of the fiscal year ending March 31, 2023, treasury shares decreased by¥117 million to ¥1,465 million at the end of the third quarter of the fiscal year ending March 31, 2023.
(Changes in important subsidiaries during the period)
During the first quarter of the fiscal year ending March 31, 2023, Nitto Chemical Co., Ltd. and BO
Chemical Co., Ltd., consolidated subsidiaries of the Company, conducted an absorption-type merger on
April 1, 2022, with Nitto Chemical Co., Ltd. as the surviving company and BO Chemical Co., Ltd. as
the dissolving company, and the Company excluded the dissolved company BO Chemical Co., Ltd.
from the scope of consolidation.
(Segment information, etc.)[Segment information]
Ⅰ

First nine months of the fiscal year ended March 31, 2022 (April 1, 2021 to December 31, 2021)
1. Information on net sales and the amount of profit or loss by reported segment(Millions of yen)
Reportable segments
Domestic
coatings

Net sales
Net sales to external customers
Intersegment internal net sales
or transfers
Total
Segment profit

Total
Segment profit(Notes) 1.
2.
3.

Fluorescentcolor materials

Lighting

Total

37,445

5,132

5,582

912

49,071

782

–

43

65

891

38,227

5,132

5,626

977

49,963

1,696

259

363

31

2,350

Amount ofadjustment2

Quarterly
consolidated
incomestatement3

Other1
Net sales
Net sales to external customers
Intersegment internal net sales
or transfers

Overseascoatings

Total

1,153

50,225–50,225

1,804

2,695

(2,695)–

2,958

52,921(2,695)50,225

107

2,458

147

2,606

“Other” refers to business segments not included in the reportable segments, such as thepainting business and logistics business.
The adjustment of segment profit of ¥147 million refers to the elimination of intersegment
transactions.
Segment profit is adjusted to be consistent with operating profit shown on the quarterly
consolidated statement of income.

-8-

2. Information on impairment losses or goodwill, etc. of non-current assets for each reported segment
During the first nine months of the fiscal year ending March 31, 2023, there was no recognition ofsignificant impairment losses on non-current assets, no significant fluctuations in the amount of
goodwill, and no recognition of significant gain on bargain purchase.

-9-ⅠⅠ First nine months of the fiscal year ending March 31, 2023 (April 1, 2022 to December 31, 2022)
1. Information on net sales and the amount of profit or loss by reported segment(Millions of yen)
Reportable segments
Domestic
coatings
Net sales
Net sales to external customers
Intersegment internal net sales
or transfers
Total
Segment profit

Total
Segment profit(Notes) 1.
2.
3.

Fluorescentcolor materials

Lighting

Total

39,896

5,917

6,083

860

52,757

907

5

54

81

1,049

40,804

5,923

6,137

941

53,807

1,601

241

874

57

2,775

Amount ofadjustment2

Quarterly
consolidated
incomestatement3

Other1
Net sales
Net sales to external customers
Intersegment internal net sales
or transfers

Overseascoatings

Total

1,364

54,122–

54,122

1,787

2,837

(2,837)–

3,152

56,959(2,837)

54,122

104

2,880

155

3,035

“Other” refers to business segments not included in the reportable segments, such as thepainting business and logistics business.
The adjustment of segment profit of ¥155 million refers to the elimination of intersegment
transactions.
Segment profit is adjusted to be consistent with operating profit shown on the quarterly
consolidated statement of income.

2. Information on impairment losses or goodwill, etc. of non-current assets for each reported segment
The amount of impairment losses on non-current assets for each segment during the period underreview was ¥71 million for “Domestic coatings.”
In addition, there is no significant fluctuation in the amount of goodwill or recognition of significant
gain on bargain purchase.
(Significant subsequent events)
Not applicable.

- 10 -