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.

August 8, 2023

Consolidated Financial Results
for the Three Months Ended June 30, 2023
(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:
August 9, 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 three months ended June 30, 2023 (from April 1, 2023 toJune 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Three 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%

June 30, 2023

17,814

4.2

1,201

71.0

1,362

47.8

910

53.1

June 30, 2022

17,0942.6

702(28.0)

922(18.8)

594

1.0

Note: Comprehensive income

For the three months ended June 30, 2023:
For the three months ended June 30, 2022:

Basic earnings
per share
Three months ended¥2,008 million¥841 million[138.6%][36.2%]

Diluted earnings
per share
Yen

Yen

June 30, 2023

32.02

31.83

June 30, 2022

20.98

20.80

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

June 30, 2023

93,86855,90756.7

1,871.15

March 31, 2023

92,80555,21056.1

1,829.75

Reference:

EquityAs of June 30, 2023:
As of March 31, 2023:¥53,210 million¥52,033 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, 2023
Fiscal year ending
March 31, 2024–

Fiscal year-end

Total

Yen

Yen

0.00

–

25.00

25.00

0.00

–

30.00

30.00

–

Fiscal year ending
March 31, 2024
(Forecast)

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

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

Six months ending
September 30,
2023(Cumulative)
Fiscal year ending
March 31, 2024

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

Ordinary profit

Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

37,000

6.2

2,300

29.7

2,400

18.1

1,550

17.1

54.51

75,000

3.0

5,000

26.7

5,200

20.5

3,400

(1.7)

119.56

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

* 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 June 30, 2023

29,710,678 shares

As of March 31, 2023

29,710,678 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2023

1,273,139 shares

As of March 31, 2023

1,273,139 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Three months ended June 30, 2023

28,437,539 shares

Three months ended June 30, 2022

28,332,737 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 three months of the fiscal year ending March 31, 2024, the Japanese economy was on a
gradual recovery trend due to factors such as the recovery of consumer spending and inbound spending
because of the lifting of restrictions on movement. On the other hand, the outlook remained uncertain
due to the impact of high raw material prices, rising energy prices, the prolonged situation in Ukraine
and other factors.
As for the Group’s business results, net sales were ¥17,814 million (a 4.2% year-on-year increase)
thanks to a strong performance of the lighting business. On the profit side, despite the impact of the
prolongation of high raw material prices, progress in price adjustments resulted in an operating profit of¥1,201 million (a ¥498 million year-on-year increase), ordinary profit of ¥1,362 million (a ¥440 million
year-on-year increase), and profit attributable to owners of parent of ¥910 million (a ¥315 million yearon-year increase).
The business results by segment were as follows.
[Domestic coatings business]
In the general-use sector, although market conditions were unable to reach full-scale recovery, net
sales increased year on year due to the improvement of the product mix and price adjustments
carried out in the previous fiscal year. In the industrial-use sector, although demand for coatings forbuilding materials decreased significantly due to the decrease of the number of new housing
constructions, net sales increased year on year due to the partial recovery in market conditions andprice adjustments. Net sales in this segment were lower year on year due to net sales decreasing by
approximately ¥0.8 billion because of the dissolution of the joint venture with the powder
producing subsidiary that was implemented at the beginning of the fiscal year. However, operating
profit increased year on year as the impact on profits was immaterial.
As a result, net sales were ¥12,701 million (a 0.8% year-on-year decrease), and operating profit
was ¥586 million (a ¥243 million year-on-year increase).
[Overseas coatings business]
In Southeast Asia, demand remained sluggish in Thailand due to production adjustments atbusiness partners, while demand for coatings for exterior building materials increased in Singapore
and Malaysia, resulting in an increase of net sales. In Mexico, although demand increased due tothe recovery of automobile production volume, net sales remained at the same level year on year in
the local currency due to the impact of foreign currency translation for strong pesos. In China, net
sales decreased due to demand decrease because of the impact of decreased production by Japanese
automobile manufacturers. In this segment, net sales and operating profit were higher year on year
due to the effect of foreign currency translation resulting from the yen’s depreciation.
As a result, net sales were ¥2,127 million (a 15.3% year-on-year increase), and operating profit was¥105 million (a ¥10 million year-on-year increase).
[Lighting business]
In the commercial LED lighting field, demand continued to increase from the previous fiscal year,
primarily for commercial facilities and construction, against the backdrop of factors such as therecovery of inbound tourist traffic and redevelopment of the Tokyo metropolitan area. In the UVlamp field, demand for UV disinfection applications increased, primarily for semiconductor-related
markets. Furthermore, net sales and operating profit increased year on year due to the progressionof price adjustments.

-2-

As a result, net sales were ¥2,253 million (a 27.4% year-on-year increase), and operating profit was¥423 million (a ¥254 million year-on-year increase).
[Fluorescent color material business]
Although demand for film products increased in the processed products segment, net sales in thepigments segment were lower year on year, primarily due to the stagnation of overseas market
conditions. Operating profit was lower year on year due to the decrease of sales and increase ofcosts, such as electricity costs.
As a result, net sales were ¥280 million (a 3.2% year-on-year decrease), and operating profit was¥7 million (a ¥10 million year-on-year decrease).
[Other businesses]
In the logistics business, transportation sales and storage sales fell year on year due to a decrease in
the volume of cargo handled. In the painting business, net sales increased year on year as market
conditions recovered gradually.
As a result, net sales were ¥451 million (a 18.3% year-on-year increase), and operating profit was¥18 million (a ¥13 million year-on-year decrease).
(2) Explanation of financial position
Total assets at the end of the first quarter of the fiscal year ending March 31, 2024, were ¥93,868
million, an increase of ¥1,063 million from the end of the previous fiscal year. Current assets decreasedby ¥248 million to ¥38,355 million from the end of the previous fiscal year. This was mainly due to adecrease in notes and accounts receivable - trade, and contract assets of ¥1,127 million, an increase ininventories of ¥382 million, and an increase in other of 386 million. Non-current assets totaled ¥55,513
million, an increase of ¥1,312 million from the end of the previous fiscal year, mainly due to a decreasein property, plant and equipment of ¥320 million, an increase in intangible assets of ¥131 million, andan increase in investments and other assets of ¥1,500 million.
Liabilities totaled ¥37,961 million, an increase of ¥366 million from the end of the previous fiscal year.
Current liabilities totaled ¥28,178 million, a decrease of ¥61 million from the end of the previous fiscal
year, mainly due to a decrease of ¥440 million in notes and accounts payable - trade, an increase in
short-term borrowings of ¥1,000 million, a decrease in income taxes payable of ¥436 million, and adecrease in other of ¥112 million. Non-current liabilities were ¥9,782 million, an increase of ¥427
million from the end of the previous fiscal year, mainly due to a decrease in retirement benefit liabilityof ¥107 million and an increase in deferred tax liabilities of ¥628 million.
Net assets were ¥55,907 million, an increase of ¥697 million from the end of the previous fiscal year.
The main reasons for this were an increase in retained earnings of ¥199 million, an increase invaluation difference on available-for-sale securities of ¥988 million, an increase in foreign currencytranslation adjustment of ¥205 million, a decrease in the remeasurements of defined benefit plans of¥216 million, and a decrease in non-controlling interests of ¥480 million.
(3) Explanation of forward-looking information such as consolidated earnings forecasts
The consolidated earnings forecasts for the first six months of the fiscal year ending March 31, 2024,
and the full year are unchanged from the previously announced forecasts (May 11, 2023).

-3-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheet(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims - operating
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
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 June 30, 2023

6,864

6,856

14,121

12,993

5,171
5,934
997
4,209
1,324
(19)
38,604

5,280
6,271
954
4,297
1,710
(10)
38,35523,145(15,148)
7,996
24,164(20,374)
3,790
11,400
1,598
(964)
634
144
7,403
(5,822)
1,580
25,54523,247(15,339)
7,907
23,809(20,157)
3,652
11,406
1,598(1,020)
577
196
7,377
(5,892)
1,484
25,225

74
370
445

63
512
576

7,728
1,909
18,061532(23)
28,21054,20092,8059,136
1,796
18,285516(24)
29,71055,51393,868(Millions of yen)
As of March 31, 2023
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
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 June 30, 2023

17,270
4,300
505
721

16,830
5,300
504
284

55

–

215
5,172
28,240199
5,060
28,178

700
672
5,726
1,189
1,016
49
9,354
37,594

700
583
6,354
1,189
909
44
9,782
37,9618,827
2,440
32,307(1,462)
42,1128,827
2,440
32,506(1,462)
42,311

3,359
1,717
790
4,053
9,921
164
3,012
55,21092,805

4,348
1,717
996
3,836
10,899164
2,532
55,907
93,868

(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income
Quarterly consolidated statement of income (cumulative)(Millions of yen)Three months ended
June 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
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-

Three months ended
June 30, 2023

17,094
12,261
4,833
4,130
702

17,814
12,342
5,471
4,269
1,201

3
103
82
73
263

7
124
28
50
210

17
26
43
922

22
26
48
1,362

–
–

173
173

4
71
75
847
62
138
200
646
51
594

4
–
4
1,531
174
407
582
949
38
910

Quarterly consolidated statement of comprehensive income (cumulative)(Millions of yen)Three months ended
June 30, 2022
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-

Three months ended
June 30, 2023

646

949

(194)
628
(238)

988
287
(216)

0

0

195
841

1,059
2,008

628

1,888

213

120

(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)
Not applicable.
(Changes in important subsidiaries during the period)
During the first quarter of the fiscal year ending March 31, 2024, for Japan Powder Coatings
Manufacturing Co., Ltd., which was established in January 2015 as a joint venture for the production of
powder coatings between the Company and KUBOKO PAINT CO., Ltd., a consolidated subsidiary of
Kansai Paint Co., Ltd., the joint venture was dissolved on April 1, 2023. Furthermore, Japan Powder
Coatings Manufacturing Co., Ltd. became a wholly-owned subsidiary of the Company as the Company
acquired all shares held by KUBOKO PAINT CO., Ltd. on April 27, 2023.
(Segment information, etc.)[Segment information]
I

First three months of the fiscal year ended March 31, 2023 (April 1, 2022 to June 30, 2022)
1. Information on net sales and the amount of profit or loss by reportable 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

12,810

1,844

1,768

289

16,713

266

–

7

23

297

13,076

1,844

1,776

313

17,010

343

95

169

18

625

Amount ofadjustment2

Quarterly
consolidated
incomestatement3

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

Overseascoatings

Total

381

17,094–17,094

596

893

(893)

–

977

17,988(893)

17,094

32

658

44

702

“Other” refers to business segments not included in the reportable segments, such as thepainting business and logistics business.
The adjustment of segment profit of ¥44 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 reportable segment(Significant impairment loss on non-current assets)-8-

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.
II First three months of the fiscal year ending March 31, 2024 (April 1, 2023 to June 30, 2023)
1. Information on net sales and the amount of profit or loss by reportable 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

12,701

2,127

2,253

280

17,363

280

–

16

24

321

12,982

2,127

2,269

304

17,684

586

105

423

7

1,124

Amount ofadjustment2

Quarterly
consolidated
incomestatement3

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

Overseascoatings

Total

451

17,814–

17,814

574

895

(895)

–

1,025

18,710(895)

17,814

18

1,142

58

1,201

“Other” refers to business segments not included in the reportable segments, such as thepainting business and logistics business.
The adjustment of segment profit of ¥58 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 reportable segment
During the first three months of the fiscal year ending March 31, 2024, 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-(Significant subsequent events)
Disposal of treasury shares as restricted stock compensation
At the Board of Directors meeting held on June 29, 2023, the Company resolved to dispose of its own
treasury shares as restricted stock compensation, and the payment procedures were completed asfollows on July 20, 2023.
1. Overview of disposal(1) Payment due dateJuly 20, 2023

(2) Type and number of shares to be disposed

18,328 shares of the Company’s common stock(3) Disposal value¥929 per share(4) Total amount of disposal¥17,026,712(5) Planned disposal destination

Directors of the Company
6 persons 15,020 shares(Excludes Outside Directors)
Executive Officers of the Company
4 persons 3,308 shares(Excludes those who concurrently serve as Directors)(6) Other

The Company has submitted the securities notice for the
disposal of treasury shares in accordance with the Financial
Instruments and Exchange Act.

2. Purpose and reason for disposal
The purpose and reason for disposal of treasury shares as restricted stock compensation is to introduce
the compensation plan for granting restricted stock to the Company’s Directors (excluding Outside
Directors) and Executive Officers (excluding those who concurrently serve as Directors) in order toprovide an incentive to the Company’s Directors (excluding Outside Directors) and Executive Officers(excluding those who concurrently serve as Directors) to sustainably improve its medium- to long-termbusiness performance and corporate value as well as to further share the benefits and risks of stock
price fluctuations with shareholders and increase their motivation to contribute to increases in the stock
price more than ever.

- 10 -