Non-Consolidated Balance Sheet
March 31, 2023 and 2022

thousands of yen
March 312022
2023

ASSETS
Current assets
Cash and bank deposits
Notes receivable
Accounts receivable (Note 3)
Allowance for doubtful accounts
Merchandise
Advanced payments
Short-term loans receivable (Note 3)
Other current assets
Total current assets
Noncurrent assets
Investment securities
Investments in affiliated companies
Guarantee deposits
Lease deposits for office rentLong-term loans receivable
Furniture and fixtures (Note 2)
Insurance fund
Other noncurrent assets
Allowance for doubtful accounts
Total noncurrent assets
Total assets￥616,082￥758,680

thousands of U.S.
dollars (Note 1)
2023
$

5,681

572,896

557,055

4,171

1,779,588

2,079,453

15,572-35,000-25,000-188

1,289,280

1,602,064

11,99747,96753,147398

68,35024,000179

136,928

89,569670

4,476,093

5,138,971

38,485754,674

911,129

6,823

232,449

450,353

3,372

150,063

107,988808

125,516

114,559857

20,830-055,820125,498

939

50,53926,968201

15,08715,087112-15,000
1,389,982--1,751,585

13,117￥

5,866,075￥

6,890,556$￥

349,082￥

437,497$

51,603

LIABILITIES and SHAREHOLDERS’ EQUITYCurrent liabilities
Notes payable
Accounts payable (Note 3)
Accrued expenses
Short-term loans payable
Current portion of long-term loans payable
Advances received
Income taxes payable
Provision for employees' bonuses
Other current liabilities
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Guarantee deposits received
Provision for retirement benefits
Other noncurrent liabilities
Noncurrent liabilities
Total liabilities
Shareholders’ equity
Capital stock
Retained earnings
Legal retained earnings
Voluntary earned reserve
Retained earnings brought forward
Treasury shares
Total shareholders' equity
Total liabilities and shareholders’ equity

771,714926,112

3,276
6,935

81,620122,462917

160,000

585,351

4,383

14,00014,000104

79,764

68,730514

110,178

64,174480

176,000

165,430

1,238

97,22443,476325

1,839,585

2,427,237

18,177

17,5003,500

2613,80013,869103

63,50358,692439

73,352--

168,156

76,0625692,007,741

2,503,299

18,74770,00070,000524

16,97917,500131

3,020,000

3,020,000

22,616

767,459

1,281,718

9,598-16,105
3,858,334-1,961-14

4,387,257

32,855-￥5,866,075￥

6,890,556$

Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥133.53 to $1, the approximate rate of exchange at March 31, 2023.
2. Accumulated Depreciation
129,547
153,010$￥￥
3. Receivables and payables from and to subsidiaries
accounts receivable
200,890
168,697
short-term loan receivable
68,350accounts payable
1,866
18,40351,603

1,145
1,263
137

Non-consolidated Statement of Income
for the years ended March 31, 2023 and 2022
￥Sales (Note 2)
Cost of sales (Note 2)
Gross profit
Operating expenses
Operating profit
Non-operating income
Non-operating expenses
Ordinary profit
Income before income taxes
Corporate income taxes
Net profit

thousands of yen
Years ended March 312022
2023
11,067,338 ￥ 12,359,543$￥

thousands of U.S.
dollars (Note 1)
2023
92,5608,598,192

9,851,788

73,7792,469,146

2,507,754

18,7801,941,886

2,112,126

15,817527,259

395,6282,962

249,256

340,799

2,552

98,75656,374422

677,759

680,053

5,092

677,759

680,053

5,092

180,000

130,000

497,759 ￥

550,053

973

$

4,119

Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥133.53 to $1, the approximate rate of exchange at March 31, 2023.
2. Transactions with subsidiaries
sales
700,783 ￥741,417$￥
cost of sales
116,087
127,812

5,552
957

Non-consolidated Statement of Changes in Equity
for the year ended March 31, 2023 and 2022

thousands of yen
Capital stock

Retainedearnings

Voluntary
retainedearnings

Retainedearnings
brought
forward

Total retained
earnings

Balance at April 1, 2021
Profit for the year
Dividend of surplus
Provision of voluntary retained earnings
Provision of legal retained earnings
Total changes of items during period
Balance at March 31, 2022

70,00014,3522,770,000

548,6033,332,9553,386,849

3,386,849

497,759

497,759

497,759

497,759-26,275-26,275-26,275-26,275

Balance at April 1, 2022
Profit for the year
Dividend of surplus
Provision of legal retained earnings
Disposition of treasury stock
Total changes of items during period
Balance at March 31, 2023

250,000-250,000

2,627

Total
shareholders’ Total net assets
equityTreasuryshares-16,105-2,627-2,627

250,000

218,856

471,484-

471,484

471,484

70,00016,9793,020,000

767,4593,804,439-16,105

3,858,334

3,858,334

70,00016,9793,020,000

767,4593,804,439-16,105

3,858,334

3,858,334

550,053550,053550,053550,053-31,530-31,530-31,530-31,530520-520-3,744-3,74414,144

10,40010,400-520-

514,258

514,779

14,144

528,923

528,923

70,00017,5003,020,000

1,281,718

4,319,218-1,961

4,387,257

4,387,257

thousands of U.S. dollars (Note 1)
Capital stock

Retainedearnings

Voluntary
retainedearnings

Retainedearnings
brought
forward

Total retained
earnings

Balance at April 1, 2021
Profit for the year
Dividend of surplusProvision of voluntary retained earnings
Provision of legal retained earnings
Total changes of items during period
Balance at March 31, 2022

524

107

20,744

4,108

24,96025,36325,363

3,727

3,727

3,727

3,727

-197

-197

-197

-197

Balance at April 1, 2022
Profit for the year
Dividend of surplus
Provision of voluntary retained earnings
Provision of legal retained earnings
Total changes of items during period
Balance at March 31, 2023

1,872

-1,872

19

TreasurysharesTotal shareholders' equity Total net assets

-121

-19

-19

1,872

1,639

3,530-

3,530

3,530

524

127

22,616

5,747

28,491-121

28,89428,894524

127

22,616

5,747

28,491-121

28,89428,894

4,119

4,119

4,119

4,119

-237

-237

-237

-237

3-3
-29

-29

105

77

77

-

3-

3,851

3,855

105

3,961

3,961

524

131

22,616

9,598

32,346-16

32,85532,855

Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥133.53 to $1, the approximate rate of exchange at March 31, 2023.

Profile and Organization
1.

Subsidiaries

Company name2.

Stock ownership ratio

Main business

AR BROWN (Shanghai)Co., Ltd.

100.0%

Imports, exports and sales of chemical materials,
test & measurement equipment

AR BROWN (THAILAND)
Co., Ltd.

100.0%

Imports, exports and sales of chemical materials,
test & measurement equipment

ARBROWN INDIA TRADING Pvt.
Ltd.

100.0%

Imports, exports and sales of chemical materials

AR BROWN KOREA
Co., Ltd.

75.0%

Imports and sales of chemical materials

F. B. Automation Co., Ltd.

100.0%

Sales of measurement equipment

Shareholders

Number of stocks held
Employee stock ownership
67,850
Directors of the company (6 people)
21,000Treasury shares
900
A.R. Brown McFarlane & Co., Ltd.
5,000
Others (6 people)
17,750Total number of stocks issued *112,500（* The total number of authorized stocks is 400,000.）
3.

Voting rights ratio
34.7%
53.7%
2.5%
9.1%
100.0%

Company employees

OfficeTokyo head officeOsaka branch
Nagoya branchInstitute ofScience and Technology
4.

Stock ownership ratio
60.3%
18.7%
0.8%
4.4%
15.8%
100.0%

Number of employees
66
2110

Average age

Average length of service

44.5

13.6 yrs.

9Directors and statutory auditor

NameTitle

Michihiro Tatsuoka

Representative director
President

Hirotaka Shimada

Managing Director

Masaki Okada

Director

Atsushi Kawaguchi

Director

Hitoshi Shimizu

Director

Miyazaki Hiroshige

Statutory auditor

Principal position(s) and important concurrent
position(s)Officer in charge of Administrative and General
Director, AR BROWN KOREA Co., Ltd.
Director. ARBROWN INDIA TRADING Pvt. Ltd.
Officer in charge of Performance Chemical Business,
Fine Chemical Business and Overseas Business
Head of Overseas Operations and Sales
President, AR BROWN (Shanghai) Co., Ltd.
Director, AR BROWN KOREA Co., Ltd.
Director, ARBROWN INDIA TRADING Pvt. Ltd.
Director, AR BROWN (THAILAND) Co., Ltd.
Officer in charge of Life Science Business, Hu-Vet
Business and DX Project
General Manager, Life Science Dept., Hu-Vet Dept.
Officer in charge of Test & Measurement Business
General Manager, Test & Measurement Dept.
President, F. B. Automation Co., Ltd.
Officer in charge of Electronics Materials Business
General Manager, AR BROWN (Shanghai) Co., Ltd.

May 23, 2023
President
Managing DirectorDirectorDirector
Director

Michihiro Tatsuoka
Hirotaka Shimada
Masaki Okada
Atsushi Kawaguchi
Hitoshi Shimizu

The above statements have duly been examined and authorized.
May 9, 2023
AuditorHiroshige Miyazaki[Reference Materials]
Note:

Financial Statements in accordance with Japanese Companies Act were reviewed by Kuno Yasunari CPA Firm.
These statements translated into English was made for reference.

Consolidated Balance Sheet
March 31, 2023 and 2022

ASSETS
Current assets
Cash and bank deposits
Notes and accounts receivable
Merchandise
Other current assets
Total current assets
Noncurrent assets
Investment securities
Long-term loans receivable
Furniture and fixtures
Other noncurrent assets
Allowance for doubtful accounts
Total noncurrent assets
Total assets

thousands of U.S.
dollars (Note 1)

thousands of yen
March 31
2022
2023
￥

1,622,889￥

1,896,674

2023$

14,2042,546,954

3,027,324

22,6711,600,285

2,187,723

251,611

246,895

1,848

6,021,740

7,358,619

55,108754,674

958,264

7,176

20,830--195,265426,750

3,195

347,083

298,558

2,235-15,000--

1,302,855

1,683,574

12,60816,383￥7,324,595￥

9,042,193$

67,716￥1,200,769￥

1,648,394$

12,344

LIABILITIES and NET ASSETS
Current liabilities
Notes and accounts payable
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for employees' bonuses
Other current liabilities
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Other noncurrent liabilities
Noncurrent liabilities
Total Liabilities
Net assets
Shareholders’ equity
Capital stock
Retained earnings
Treasury shares
Accumulated other comprehensive income(loss)Foreign currency translation adjustment
Non-controlling interests
Total net assets
Total liabilities and net assets￥

160,000

585,351

14,00014,0004,383
104

123,33187,781657

176,000

165,430

1,238

291,390

303,1442,270

1,965,491

2,804,102

20,99917,500207,644

1,555

63,50358,692

439

107,753

121,268

908

188,757

387,605

2,902

2,154,248

3,191,707

23,90270,00070,000524

4,929,014

5,559,292

41,633-16,105-1,961-15

167,721

199,733

1,495

19,71523,421

175

5,170,346

5,850,486

43,814

7,324,595￥

9,042,193$Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥133.53 to $1, the approximate rate of exchange at March 31, 2023.

67,716

[Reference Materials]
Consolidated Statement of Income
for the year ended March 31, 2023 and 2022

￥

Sales
Cost of sales
Gross profit
Operating expenses
Operating profit
Non-operating income
Non-operating expenses
Ordinary profit
Income before income taxes
Income taxes
Net profit
Profit attributable to non-controlling interestsNet profit attributable to owners of parent￥

thousands of yen
Years ended March 31
2022
2023
12,876,298 ￥
14,805,610

thousands of U.S.
dollars (Note 1)
2023$

110,878

9,636,434

11,286,937

84,5273,239,863

3,518,672

26,351

2,328,186

2,655,625

19,887

911,677

863,047

6,463

149,050

164,796

1,234

104,730

65,087487

955,996

962,756

7,210

955,996

962,756

7,210

286,206

289,255

2,166

669,790

673,500

5,043

9,125

3,416

660,664￥

670,083

25

$

5,018

Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readersoutside Japan and have been made at the rate of￥133.53 to $1, the approximate rate of exchange at March 31, 2023.

Consolidated statement of Changes in Equity
for the year ended March 31, 2023 and 2022

thousands of yen
Capital stock

Accumulated
Total
Non-controllingothershareholders' comprehensive
Total net assetsinterests
equityincome(loss)

Legal
retainedearnings

Treasuryshares4,296,258-16,105

Balance at April 1, 2021
Profit for the year
Dividend of surplus
OthersNet changes of items other than shareholders' equity
Total changes of items during period
Balance at March 31, 2022

70,000-632,755-

632,755

143,3709,859

785,985

70,0004,929,014-16,105

4,982,909

167,721

19,7155,170,346

Balance at April 1, 2022
Profit for the year
Dividend of surplus
Disposition of treasury stock
OthersNet changes of items other than shareholders' equity
Total changes of items during period
Balance at March 31, 2023

70,0004,929,014-16,105

4,982,909

167,721

19,7155,170,346

4,350,153

24,3509,856

4,384,360

660,664

660,664

660,664-26,275-26,275-26,275-1,633-1,633-1,633
143,370

9,859

153,229670,083

670,083

670,083-31,530-31,530-31,530

14,14414,14414,144-8,275-8,275-8,27532,011

3,705

35,717-630,278

14,144644,42232,011

3,705

680,139

70,0005,559,292-1,961

5,627,331

199,733

23,4215,850,486

thousands of U.S. dollars (Note 1)
Capital stockLegalretainedearnings

32,174

Accumulated
Total
other
Non-controlling Total net assets
shareholders' comprehensive
interests
equityincome(loss)

TreasurysharesBalance at April 1, 2021
Profit for the year
Dividend of surplus
OthersNet changes of items other than shareholders' equity
Total changes of items during period
Balance at March 31, 2022

524

-121

-

4,738

524

36,913

Balance at April 1, 2022
Profit for the year
Dividend of surplus
Disposition of treasury stock
OthersNet changes of items other than shareholders' equity
Total changes of items during period
Balance at March 31, 2023

524

36,913-121

32,5781827332,834

4,947

4,947

4,947

-197

-197

-197

-13

-13-13-

1,073

73

1,147

-

4,738

1,073

73

5,886

-121

37,316

1,256

147

38,72037,316

1,256

147

38,720

5,018

5,018

5,018

-237

-237

-237

105

105

105
-62

-62

-62
239

27

267

-

4,720

105

4,826

239

27

5,093

524

41,633-15

42,142

1,495

175

43,814

Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥133.53 to $1, the approximate rate of exchange at March 31, 2023.

[Reference Materials]
Consolidated Statement of cash flows
for the year ended March 31, 2023

thousands of U.S.
dollars (Note 1)

thousands of yen

Ⅰ.

Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on sales of investment securities
Loss on abandonment of goods
Foreign exchange losses (gains)
Decrease (increase) in notes and accounts receivable – trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable – trade
OthersSubtotalInterest and dividend income
Interest expenses
Income taxes paid
Cash flows from operating activities

Ⅱ.

Cash flows from investing activities
Purchase of tangible and intangible assets
Purchase of long-term investment securities
Proceeds from long-term investment securities
Purchase of shares of subsidiaries
OthersCash flows from investing activities-92,864-267,788
150,236-75,125
56,371-229,170-695-2,005
1,125
-562
422
-1,716

Ⅲ.

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from sales of treasury shares
Cash dividends paid
Cash flows from financing activities

421,255
25,000-47,039
10,400-31,530
378,086

3,154
187
-352
77-236
2,831

Ⅳ.
Ⅴ.
Ⅵ.
Ⅶ.

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

29,943
273,785
1,622,889
1,896,674

224
2,050
12,153
14,204￥

962,756
57,475-56,01336,385-8,294-332,101-468,298
213,766-64,219
341,455
35,501-5,232-276,79894,925$Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥133.53 to $1, the approximate rate of exchange at March 31, 2023.

7,210
430
-419
272
-62-2,487-3,507
1,600
-480
2,557
265
-39-2,072710