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 13, 2023

Consolidated Financial Results for the Fiscal Year Ended December 31, 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 of annual general meeting of shareholders:March 29, 2023
Scheduled date to commence dividend payments:
March 30, 2023
Scheduled date to file annual securities report:
March 29, 2023
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended December 31, 2022 (from January 1, 2022 to
December 31, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Millions of yen%

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

December 31, 2022

35,846

–

2,751

–

3,144

–

2,056

–

December 31, 2021

32,812

8.7

2,658

51.0

2,982

37.6

1,916

22.9

Note: Comprehensive income

For the fiscal year ended December 31, 2022:
For the fiscal year ended December 31, 2021:

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share

Yen¥3,079 million¥2,652 million

Return on equity

Yen

[-%]
[153.8%]

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

%

%

%

December 31, 2022

237.53

–

6.7

6.5

7.7

December 31, 2021

221.46

–

6.8

6.7

8.1

Reference:*

Operating profit

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended December 31, 2022:¥ – million
For the fiscal year ended December 31, 2021:¥ – 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 current fiscal year, and each figure for the fiscal year ended
December 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations. The percentage ofyear-on-year change is not shown.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

December 31, 2022

50,32332,05763.5

3,689.28

December 31, 2021

46,037

29,37863.5

3,378.42

Reference:*

EquityAs of December 31, 2022:¥31,948 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 current fiscal year, and each figure for the fiscal year ended
December 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations.

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

December 31, 2022

1,444

(1,083)

(543)

6,256

December 31, 2021

2,823

(2,319)

(498)

6,433

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen
Fiscal year ended
December 31, 2021
Fiscal year ended
December 31, 2022
Fiscal year ending
December 31, 2023
(Forecast)

Yen

Fiscalyear-end

Yen

Total cash
dividends(Total)

Total

Yen

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%

%

–

–

–

50.00

50.00

432

22.6

1.5

–

–

–

50.00

50.00

432

21.0

1.4

–

–

–

50.00

50.00

Breakdown of year-end dividend
For the fiscal year ended December 31, 2021:
For the fiscal year ended December 31, 2022:

30.9

Ordinary dividend:Special dividend:
Ordinary dividend:Commemorative dividend:¥45.00¥5.00¥45.00¥5.00 (commemoration of thetransition to the Prime Market)

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

Full year

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

Ordinary profit

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

38,0006.0

1,550(43.7)

1,900(39.6)

1,400(31.9)

161.67

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
Newly included:
0 companies
Excluded:
0 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 other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
* For more information, please see “(5) Notes to Consolidated Financial Statements (Changes in
Accounting Policies)” in “3. Consolidated Financial Statements and Significant Notes Thereto” on page
13 of the appendix.
(3) 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

9,458,768 shares

As of December 31, 2021

9,458,768 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2022

798,931 shares

As of December 31, 2021

804,996 shares(iii) Average number of shares outstanding during the period
Fiscal year ended December 31, 2022

8,657,922 sharesFiscal year ended December 31, 2021

8,651,933 shares[Reference] Overview of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended December 31, 2022 (from January 1, 2022 to
December 31, 2022)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Operating profit

Millions of yen%

Millions of yen%

ProfitMillions of yen%

Millions of yen%

December 31, 2022

27,844

–

2,423

–

2,860

–

2,090

–

December 31, 2021

25,596

11.7

2,233

57.3

2,636

45.4

1,713

29.4

Basic earnings
per share
Fiscal year ended*

Ordinary profit

Diluted earnings
per share
Yen

Yen

December 31, 2022

241.50–December 31, 2021

198.04–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 current fiscal year, and each figure for the fiscal year ended
December 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations. The percentage ofyear-on-year change is not shown.

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

December 31, 2022

42,63527,18463.8

3,139.10

December 31, 2021

38,64524,44263.2

2,824.44

Reference:*

EquityAs of December 31, 2022:¥27,184 million
As of December 31, 2021:¥24,442 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 current fiscal year, and each figure for the fiscal year ended
December 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations.

* 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
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.
For matters related to the above earnings forecasts, please see “(4) Outlook” in “1. Overview of Operating Results and Others” onpage 4 of the appendix.
(How to obtain supplementary material for financial results)
Supplementary material on financial results is disclosed on the same day on TDnet. and the Company’s website(https://www.takichem.co.jp/).

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

Appendix Table of Contents
Index
1. Overview of Operating Results and Others .............................................................................................. 2(1) Overview of Operating Results for the Fiscal Year ............................................................................ 2(2) Overview of Financial Position for the Fiscal Year ............................................................................ 3(3) Overview of Cash Flows for the Fiscal Year ...................................................................................... 3(4) Outlook ............................................................................................................................................... 4(5) Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and Next Fiscal
Year .................................................................................................................................................... 5
2. Basic Rationale for Selection of Accounting Standards ........................................................................... 5
3. Consolidated Financial Statements and Significant Notes Thereto .......................................................... 6(1) Consolidated Balance Sheet ............................................................................................................... 6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ............ 8(Consolidated Statement of Income) .................................................................................................. 8(Consolidated Statement of Comprehensive Income) ........................................................................ 9(3) Consolidated Statement of Changes in Equity ................................................................................. 10(4) Consolidated Statement of Cash Flows ............................................................................................ 12(5) Notes to Consolidated Financial Statements .................................................................................... 13(Notes on Going Concern Assumption) ........................................................................................... 13(Changes in Accounting Policies) .................................................................................................... 13(Additional Information) .................................................................................................................. 13[Segment information] ..................................................................................................................... 14(Per Share Information) .................................................................................................................... 17(Subsequent Events) ......................................................................................................................... 17
4. Other ....................................................................................................................................................... 17-1-

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

1. Overview of Operating Results and Others(1) Overview of Operating Results for the Fiscal Year
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 fiscal year under review. Due to this change, the revenue recognition standard used forthe fiscal year under review is different from the one used for the previous fiscal year, and therefore noyear-on-year change is shown in the explanation for operating results.
The Japanese economy during the fiscal year under review remained rocky due 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 the fiscal year under review totaled ¥35,846 million (¥32,812 million for the previous
fiscal year), operating profit was ¥2,751 million (¥2,658 million for the previous fiscal year), ordinary
profit was ¥3,144 million (¥2,982 million for the previous fiscal year), and profit attributable to ownersof the parent was ¥2,056 million (¥1,916 million for the previous fiscal year).
Operating results by segment are as shown below.
Agriculture
While the fertilizer sales volume declined as a reaction to last-minute demand in anticipation ofprice increases, sales prices rose due to higher raw material prices, resulting in net sales of ¥11,521
million (¥10,011 million for the previous fiscal year).
Chemicals
Sales of water treatment chemicals totaled ¥9,340 million (¥8,409 million for the previous fiscal
year) as the sales volume increased due to steady shipments of ultra-high-basicity polyaluminum
chloride and more.
Sales of functional materials amounted to ¥5,489 million (¥5,757 million for the previous year) due
to falling demand for high-purity tantalum oxide for smartphones, as well as a decline in the sales
volume of high-basicity aluminum chloride used in ceramic fibers for automotive applications,which was caused by semiconductor shortages.
Sales of other chemical products totaled ¥194 million (¥191 million for the previous fiscal year).
As a result, net sales came to ¥15,024 million (¥14,357 million for the previous fiscal year).
Construction materials
The gypsum board sales volume declined, but net sales came to ¥3,115 million (¥2,902 million forthe previous fiscal year) as selling prices rose.
Petroleum
While the fuel oil sales volume remained at the same level as the previous fiscal year, net sales
came to ¥2,202 million (¥1,966 million for the previous fiscal year) as selling prices rose due tohigher crude oil prices.

-2-

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

Real estate
Net sales totaled ¥1,335 million (¥1,261 million for the previous fiscal year) due primarily to arecovery in rental income from shopping centers.
Transportation
Net sales totaled ¥2,646 million (¥2,312 million for the previous fiscal year) due to an upward
trend in the coastal shipping market and an increase in cargo handling volume.
(2) Overview of Financial Position for the Fiscal Year
Total assets at the end of the fiscal year under review came to ¥50,323 million (up ¥4,285 million fromthe end of the previous fiscal year). Current assets totaled ¥26,039 million (up ¥3,687 million year onyear) due primarily to increases of ¥1,038 million in notes and accounts receivable - trade, ¥302 million
in electronically recorded monetary claims - operating, and ¥1,799 million in merchandise and finishedgoods. Non-current assets came to ¥24,283 million (up ¥598 million from the end of the previous fiscal
year) due primarily to an increase of ¥1,288 million in investment securities, despite a decrease of ¥497
million in property, plant and equipment.
Total liabilities amounted to ¥18,266 million (up ¥1,607 million year on year) due primarily toincreases of ¥1,808 million in notes and accounts payable - trade and ¥432 million in deferred tax
liabilities, despite a decrease of ¥592 million in accounts payable - other.
Net assets totaled ¥32,057 million (up ¥2,678 million year on year) due primarily to increases of¥1,623 million in retained earnings and ¥1,031 million in the valuation difference on available-for-salesecurities.
(3) Overview of Cash Flows for the Fiscal YearIn the fiscal year under review, net cash provided by operating activities totaled ¥1,444 million, net
cash used in investing activities totaled ¥1,083 million, and net cash used in financing activities totaled¥543 million. As a result, cash and cash equivalents at the end of the fiscal year under review totaled¥6,256 million, a decrease of ¥176 million compared to the end of the previous fiscal year.
(Cash flows from operating activities)
Net cash provided by operating activities totaled ¥1,444 million (¥2,823 million provided in theprevious fiscal year) due primarily to profit before income taxes of ¥3,038 million, depreciation of¥1,281 million, and an increase in cash resulting from an increase in trade payables of ¥1,808
million, despite decreases in cash resulting from increases in trade receivables of ¥1,341 million,
inventories of ¥1,904 million and other assets of ¥727 million, and income taxes paid of ¥797
million.
(Cash flows from investing activities)
Net cash used in investing activities totaled ¥1,083 million (¥2,319 million used in the previous
fiscal year) due primarily to purchase of non-current assets of ¥1,478 million, despite proceeds fromsale of investment securities of ¥267 million.
(Cash flows from financing activities)
Net cash used in financing activities totaled ¥543 million (¥498 million used in the previous fiscal
year) due primarily to dividends paid of ¥432 million.

-3-

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

Trends in cash flow indicators

Equity-to-asset ratio (%)
Equity-to-asset ratio based onmarket value (%)
Ratio of interest-bearing debt
to cash flow (annual)Interest coverage ratio (times)

Year ended
December 2018
60.1

Year ended
December 2019
61.5

Year ended
December 2020
62.7

Year ended
December 2021
63.5

Year ended
December 2022
63.5

116.3

94.8

131.3

109.0

78.4

1.3

0.9

1.0

1.0

1.8

143.8

212.1

227.6

222.1

118.3

Equity-to-asset ratio: Equity/Total assets
Equity-to-asset ratio based on market value: Total market capitalization/Total assets
Ratio of interest-bearing debt to cash flow: Interest-bearing debt/ operating cash flow
Interest coverage ratio: Operating cash flow/Interest paid
Notes:

1.
2.
3.

Each indicator is calculated based on consolidated financial data.
Total market capitalization is calculated by multiplying the closing share price at the end of the fiscal yearby the number of shares outstanding (after deducting treasury shares) at the end of the fiscal year.
Cash flows from operating activities in the consolidated statement of cash flows are used for operating
cash flow. Interest-bearing debts include all of those debts reported on the consolidated balance sheet on
which interest is paid. Interest expenses in the consolidated statement of cash flows are used for interest
paid.

(4) Outlook
Given the backdrop of rebounding economic and social activities coupled with measures to prevent the
spread of COVID-19, the outlook for the Japanese economy is expected to improve 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.
Amid this environment, the Group has completed the second year of Medium-term Management Plan
2023, a three-year plan that started in 2021. The basic policies of Medium-term Management Plan 2023
are (1) proactive investment into growth businesses, (2) enhancement of profitability of current
businesses, (3) strengthening of management foundation and (4) promotion of compliancemanagement. Its financial targets for the final fiscal year are consolidated net sales of ¥32,000 million,
consolidated ordinary profit of ¥2,500 million and ROE of 6.0% or more, based on the assumption of a
gradual economic recovery after the COVID-19 pandemic. In FY2022, there was a continuation of lastminute demand in the Agriculture business in anticipation of fertilizer price increases, as well as arecovery in demand for smartphone-related products in the functional materials segment of the
Chemicals business. As a result, numerical targets for Group performance for the final year of theMedium-term Management Plan 2023 were exceeded in this, the second year of the Plan, as they werein the first year. However, in addition to expecting a reaction to the last-minute demand of the previous
year and an increase in fuel prices in FY2023, which is the final year of the Medium-term Management
Plan 2023, we project a prolongation of the semiconductor shortage and falling demand forsmartphones to make it difficult to achieve the target for ordinary profit. We will work to secure profits
by continuing to adjust production as appropriate in response to trends in demand, revising selling
prices, and taking other steps. Furthermore, will formulate the next Medium-term Management Plan,
which is scheduled to begin in 2024, so as to include measures to address climate change and othersustainability targets, and to help realize a sustainable society and enhance the Group’s corporate value.
In the fiscal year ending December 31, 2023, the Group expects net sales of ¥38,000 million, operating
profit of ¥1,550 million, ordinary profit of ¥1,900 million and profit attributable to owners of parent of¥1,400 million.
With regard to the “Fully artificial cultivation of Tricholoma bakamatsutake” announced on October 4,
2018, the project team has been forging ahead with technology development in preparation forcommercialization. As announced on November 28, 2022, as a result of conducting various
investigations in the cultivation research facilities, which were expanded in May 2021, to resolve issues
such as production cost and stability of production at scale, we judge that we have reached the stage of-4-

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

having the cultivated Tricholoma bakamatsutake evaluated in the market. Accordingly, since November
2022, restaurants and other locations have been assessing their quality and value as a cooking
ingredient. A decision on beginning construction of facilities for commercial production will depend on
the feasibility of the product in the light of these assessments, and so has been postponed until 2023 or
beyond. Going forward, we will continue to promptly release new information as it becomes available.
(5) Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and Next
Fiscal Year
The Company recognizes the return of profit to its shareholders as a key management priority, and it
maintains a policy of paying stable dividends on a continual basis. Moreover, the Company will
allocate profits to capital investment, research and development investment, and rationalization
investment to improve sustainable development and the corporate value of the Company.
The Company has given comprehensive consideration to a range of factors including the enhancementof business structure, future business development and business performance, and it plans to pay a
year-end dividend for the fiscal year under review of ¥50 in total, consisting of an ordinary dividend of¥45 and a commemorative dividend to commemorate the transition to the Prime Market of ¥5 pershare, to repay the support of shareholders.
For the next fiscal year, the Company plans to pay a year-end dividend of ¥50 per share.

2. Basic Rationale for Selection of Accounting Standards
The Group, in consideration of the inter-period-comparability and inter-company-comparability ofconsolidated financial statements, will prepare its consolidated financial statements, for the time being,in accordance with the Japanese accounting standards. With regard to the adoption of International
Financial Reporting Standards (IFRS), the Group intends to give appropriate consideration to this issue
as well as to various circumstances in Japan and overseas.

-5-

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

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

As of December 31, 2022

6,433
8,963

6,256
10,002

1,893

2,196

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

–
4,085
271
2,292
947
(13)
26,03922,197(15,203)
6,994
16,776(14,949)
1,827
1,481
(1,331)
149
6,413
457
(49)
408
16
15,80922,324(15,652)
6,672
16,810(15,346)
1,463
1,494
(1,383)
111
6,455
457
(93)
364
245
15,312

500
10
11
522

406
9
1
418

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

8,361
29
196
(35)
8,552
24,28350,323

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-6-

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022
(Millions of yen)
As of December 31, 2021

As of December 31, 2022

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

6,785
369
60
35
1,372
627
77
42
602
9,973

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

395
378
1,131
3,693
2,509
185
8,293
18,2662,147
1,372
23,888(736)
26,672

2,147
1,398
25,511(729)
28,327

2,581

3,612

(17)
2,563
142
29,37846,0378
3,621
108
32,05750,323Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
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-7-

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Millions of yen)
Fiscal year 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
Gain on sale of investment securities
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Waste disposal costs
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
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
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent-8-

Fiscal year ended
December 31, 2022

32,812
24,247
8,564
5,906
2,658

35,846
27,040
8,805
6,053
2,751

7
272
–
101
380

5
334
45
64
450

12
30
6
6
56
2,982

12
28
7
9
58
3,144

11
–
11

–
145
145

7
3
302
313
2,679
719
43
763
1,915
(0)
1,916

110
125
14
251
3,038
983
32
1,015
2,022
(33)
2,056

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

(Consolidated Statement of Comprehensive Income)(Millions of yen)
Fiscal year ended
December 31, 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-9-

Fiscal year ended
December 31, 2022

1,915

2,022

727
9
736
2,652

1,031
26
1,057
3,079

2,652

3,113

(0)

(33)

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

(3) Consolidated Statement of Changes in Equity
Fiscal year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)(Millions of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

2,147

1,342

22,361(742)

Total shareholders’equity25,109Changes during period
Dividends of surplus

(389)

(389)

Profit attributable to ownersof parent

1,916

1,916

Purchase of treasury shares
Disposal of treasury shares

30

(0)

(0)

6

36

Loss attributable to noncontrolling interests–

Net changes in items otherthan shareholders’ equity–

Total changes during period
Balance at end of period

–

30

1,526

5

1,562

2,147

1,372

23,888(736)

26,672

Non-controllinginterests

Total net assets

143

27,079(0)(390)

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

1,854

Remeasurements ofdefined benefit plans(27)

Total accumulated
other comprehensive
income1,827

Changes during period
Dividends of surplus
Profit attributable to ownersof parent

1,916

Purchase of treasury shares(0)

Disposal of treasury shares

36

Loss attributable to noncontrolling interests
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

(0)

(0)

727

9

736

0

736

727

9

736

(0)

2,298

2,581

(17)

2,563

142

29,378- 10 -

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

Fiscal year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)(Millions of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

2,147

1,372

23,888(736)

Total shareholders’equity26,672

Changes during period
Dividends of surplus

(432)

(432)

Profit attributable to ownersof parent

2,056

2,056

Purchase of treasury shares
Disposal of treasury shares

25

(0)

(0)

6

31

Loss attributable to noncontrolling interests–

Net changes in items otherthan shareholders’ equity–

Total changes during period
Balance at end of period

–

25

1,623

6

1,655

2,147

1,398

25,511(729)

28,327

Non-controllinginterests

Total net assets

142

29,378

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

2,581

Remeasurements ofdefined benefit plans(17)

Total accumulated
other comprehensive
income2,563

Changes during period
Dividends of surplus(432)

Profit attributable to ownersof parent

2,056

Purchase of treasury shares(0)

Disposal of treasury shares

31

Loss attributable to noncontrolling interests
Net changes in items otherthan shareholders’ equity

(33)

(33)

1,031

26

1,057

0

1,057

Total changes during period

1,031

26

1,057

(33)

2,678

Balance at end of period

3,612

8

3,621

108

32,057- 11 -

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
December 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on sale of investment securities
Impairment losses
Loss (gain) on valuation of investment securities
Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of non-current assets
Proceeds from sale of non-current assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Refund of guarantee deposits received
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net
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
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 12 -

Fiscal year ended
December 31, 2022

2,679
1,188
–
7
3
(11)
117

3,038
1,281
(145)
110
125
–
4

(0)

2

(66)
(279)
12
(1,058)
518
546
134
(543)
(7)
3,241
279
(12)
(683)
2,823

(38)
(339)
12
(1,341)(1,904)
1,808
(727)
49
(20)
1,915
339
(12)
(797)
1,444

(2,605)
31
(9)
164
–
100
(2,319)(1,478)
8
(3)
267
100
22
(1,083)

2
(71)
(13)
(0)
(389)
(0)
(25)
(498)

(6)
(60)
(11)
(0)
(432)
–
(32)
(543)

1

5

7
6,426
6,433

(176)
6,433
6,256

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
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 fiscal year
under review, and it has recognized revenue at the time the control of promised goods or services aretransferred to the customer in the amount expected to be received upon exchange of said goods orservices. As a result, in cases of transactions involving chargeable subcontracting, the Grouppreviously 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 fiscal year underreview, was added to or subtracted from the opening balance of retained earnings of the fiscal year
under review, and thus the new accounting policy was applied from such opening balance; provided,
however, that the new accounting policy was not retrospectively applied to contracts whererecognitions of nearly all the revenue amounts for periods prior to the start of the fiscal year underreview, 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 fiscal year under review there were decreases of ¥1,487 million in net sales,¥1,483 million in cost of sales and ¥4 million in profit before income taxes. The application of thestandard has no effect on the opening balance of retained earnings for the fiscal year under review.
(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 fiscal year under review,
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 inparagraph 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 consolidated financial statements.
(Additional Information)(Accounting Estimates)
COVID-19 has delivered a major blow to the economy and corporate activities, including theGroup’s operations.
Assuming that its impact will continue for at least some part of the next fiscal year, the Group madeaccounting 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- 13 -

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

the uncertainties involved in estimating the resurgence of COVID-19, when the pandemic will end,and other factors.
[Segment information]
1. Overview of reportable segments
The Group’s reportable segments are components of the Group for which separate financial
information is available, and which are subject to regular review by the Board of Directors for the
purpose of making decisions about the allocation of managerial resources and assessing theirperformance.
The Group is composed of segments based on the products and services they handle, and their six
reportable segments are “Agriculture,” “Chemicals,” “Construction materials,” “Petroleum,”“Real estate” and “Transportation.” Each segment formulates comprehensive strategies andconducts business activities for the businesses that each of them controls (including thebusinesses of subsidiaries).
The primary products and/or business details of each reportable segment are as follows:
Agriculture ·······Compound fertilizers, phosphate fertilizers, agriculture-related materials, etc.
Chemicals ········Water treatment chemicals, functional materials, etc.
Construction
materials ··········Gypsum board
Petroleum ········Petroleum, etc.
Real estate········Real estate leasing, sale, etc.
Transportation ···Marine transportation, land transportation, etc.
2. Method for calculating amounts of net sales, profit or loss, assets, liabilities, and other items byreportable segment
The accounting method for reportable segments follows that used to prepare the consolidated
financial statements.
Profit figures for reportable segments are based on operating profit.
Intersegment revenue or transfers are based on actual market prices.
As described in “Changes in Accounting Policies,” the Group applied the “Accounting Standard
for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ
regulations from the beginning of the fiscal year under review. Because the method of accounting
treatment for revenue recognition has changed, the method used for calculating reportablesegment profit or loss has been similarly changed.
As result of this change, net sales and segment profit for Agriculture in the fiscal year underreview decreased by ¥1,148 million and ¥4 million respectively, while net sales for Chemicals
decreased by ¥339 million. There was no impact on segment profit for Chemicals.

- 14 -

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

3. Information on amounts of net sales, profit or loss, assets, liabilities, and other items for eachreportable segment and information on disaggregation of revenue
Fiscal year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)(Millions of yen)
Reportable segments

Agriculture Chemicals

Net sales
Sales to externalcustomers
Intersegment sales
or transfers

ConstrucTransportion
Petroleum Real estatetationmaterials

Total

Consolidated
financial
Adjustments
statement(Note 1)amounts(Note 2)

10,011

14,357

2,902

1,966

1,261

2,312

32,812–32,812

0

54

–

128

74

497

755

(755)

–

10,012

14,412

2,902

2,095

1,336

2,809

33,568(755)

32,812

Segment profit(loss)

917

2,475

(4)

12

635

249

4,285

(1,627)2,658

Segment assets

7,735

9,920

2,063

965

6,361

5,943

32,99013,04646,037

139

470

35

16

229

186

1,078

109

1,188

87

334

53

43

1,991

591

3,102

192

3,294

Total

OthersDepreciation
Increase inproperty, plant andequipment andintangible assets

Notes: 1. Adjustments are as follows.
(1) The adjustment to segment profit (loss) of negative ¥1,627 million represents corporate expenses,
etc. not allocated to each reportable segment.
(2) The adjustment to segment assets of ¥13,046 million represents corporate assets of ¥13,064 million
not allocated to each reportable segment. Corporate assets mainly consist of cash and deposits ofthe parent company, long-term investment funds (investment securities) and assets, etc. in theadministrative department.
(3) The adjustment to depreciation of ¥109 million represents the depreciation of corporate assets notallocated to each reportable segment.
(4) The adjustment to the increase in property, plant and equipment and intangible assets of ¥192
million represents an increase to corporate assets not allocated to each reportable segment.
2. Segment profit (loss) is adjusted with operating profit in the consolidated statement of income.

- 15 -

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

Fiscal year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)(Millions of yen)
Reportable segments

Agriculture Chemicals

Net sales
Agriculture
Water treatment
chemicals
Functional
materials
Construction
materials
Petroleum
Real estateTransportation
Others11,521
–
–

–
9,340
5,489

ConstrucTransportion
Petroleum Real estatetationmaterials

–
–

–
–

–
–

–
–

–

–

–

–

–

–

–

Total

11,521
9,340
5,489

Consolidated
financial
Adjustments
statement(Note 1)amounts(Note 2)

–
–
–

9,340
5,489

–

–

–
–
–
–

–
–
–
194

–
–
–
–

2,176
–
–
–

–
18
–
–

–
–
2,540
–

2,176
18
2,540
194

–
–
–
–

2,176
18
2,540
194

Revenue fromcontracts withcustomers

11,521

15,024

3,115

2,176

18

2,540

34,396–34,396

Other revenue(Note 3)

–

–

–

26

1,317

106

1,449

–

1,449

11,521

15,024

3,115

2,202

1,335

2,646

35,846–35,846

–

53

–

148

75

533

811

(811)

–

Sales to externalcustomers
Intersegment sales
or transfers
Total

3,115

3,115

–

11,521

3,115

11,521

15,078

3,115

2,351

1,411

3,180

36,657(811)

35,846

Segment profit(loss)

1,426

2,156

(155)

18

749

306

4,501

(1,749)2,751

Segment assets

10,936

9,743

2,209

979

6,265

6,101

36,235

14,08750,323

133

438

34

15

293

181

1,096

184

1,281

99

225

24

0

163

7

521

273

795

OthersDepreciation
Increase inproperty, plant andequipment andintangible assets

Notes: 1. Adjustments are as follows.
(1) The adjustment to segment profit (loss) of negative ¥1,749 million represents corporate expenses,
etc. not allocated to each reportable segment.
(2) The adjustment to segment assets of ¥14,087 million represents corporate assets of ¥14,104 million
not allocated to each reportable segment. Corporate assets mainly consist of cash and deposits ofthe parent company, long-term investment funds (investment securities) and assets, etc. in theadministrative department.
(3) The adjustment to depreciation of ¥184 million represents the depreciation of corporate assets notallocated to each reportable segment.
(4) The adjustment to the increase in property, plant and equipment and intangible assets of ¥273
million represents an increase to corporate assets not allocated to each reportable segment.
2. Segment profit (loss) is adjusted with operating profit in the consolidated statement of income.
3. Other revenue consists of transactions included in the scope of the Accounting Standard for Lease
Transactions.

- 16 -

Taki Chemical Co., Ltd. (4025) Financial Results for the Fiscal Year Ended December 31, 2022

(Per Share Information)
Fiscal year ended December 31, 2021
(from January 1, 2021
to December 31, 2021)
Net assets per share
Basic earnings per share
Notes:(Yen)
Fiscal year ended December 31, 2022
(from January 1, 2022
to December 31, 2022)

3,378.42

3,689.28

221.46237.53

1. The amount of diluted earnings per share is not provided because there are no potential shares.
2. The basis of calculating net assets per share is as follows:
Fiscal year ended December 31, 2021
(from January 1, 2021 to December 31,
2021)

Fiscal year ended December 31, 2022
(from January 1, 2022 to December 31,
2022)

29,37832,057

142

108

[142]

[108]

Net assets related to common stockat end of period (Millions of yen)

29,236

31,948

Number of shares of common stockat end of period used in thecalculation of net assets per share(Thousand shares)

8,653

8,659

Total net assets (Millions of yen)Amount to be deducted from total
net assets (Millions of yen)(of which, non-controlling interests(Millions of yen))

3. The basis for calculating basic earnings per share is as follows.
Fiscal year ended December 31, 2021
(from January 1, 2021
to December 31, 2021)

Fiscal year ended December 31, 2022
(from January 1, 2022
to December 31, 2022)

Profit attributable to owners ofparent (Millions of yen)

1,916

2,056

Amount not attributable toshareholders of common shares(Millions of yen)––

Profit attributable to owners ofparent related to common shares(Millions of yen)

1,916

2,056

Average number of shares
outstanding during the period(Thousand shares)

8,651

8,657

(Subsequent Events)
Not applicable

4. OtherFor details regarding the changing of officers on March 29, 2023, please refer to “Appointment of
Officers” disclosed today on the Company’s website (https://www.takichem.co.jp/).

- 17 -