Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2023
(Based on Japanese GAAP)May 12, 2023
Company name:NIPPON KINZOKU CO., LTD.

Stock exchange listing: Tokyo
Stock code:
5491
Representative:
Inquiries:

URL

https://www.nipponkinzoku.co.jp/PresidentManaging Executive Officer

Yasushi Shimokawa
Hisashi MaruyamaScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 29, 2023
June 29, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 30, 2023
No

Holding of financial results meeting:

NoTEL03-5765-8105(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2023
52,566
7.0
1,273(11.4)
1,283
(4.0)
916
(63.6)
Year ended March 31, 2022
49,117
22.5
1,437
–
1,337
–
2,517
–

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
3.8
1.8
2.4
–
11.5
2.0
2.9

Diluted earnings pershare

Yen
136.94376.10Year ended March 31, 2023
Year ended March 31, 2022
(2) Consolidated financial position

Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
73,874
72,179Millions of yen
24,44923,314

Cash flows fromoperating activities
Millions of yen(1,513)
4,500

Cash flows frominvesting activities
Millions of yen(2,716)(2,747)

Net assets per share%
33.1
32.3

Yen
3,652.27
3,482.66(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows from
Cash and cash equivalents
at end of periodfinancing activities
Millions of yen
Millions of yen
2,021
8,035(399)
10,065

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
0.00

––

0.00
5.00

0.00
5.00

–
33

–
3.7

–
0.1

–0.00

–10.00

10.00

18.4

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Net sales
Millions of yen
Six months ending
September 30, 2023
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

28,0008.1

300(64.8)

200(75.5)200(63.9)

29.88

58,00010.3

1,200(5.8)

1,100(14.3)

800(12.7)

119.504. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

6,700,000 shares As of March 31, 2022

6,700,000 shares

5,678 shares As of March 31, 2022

5,654 shares

Number of treasury shares at the end of the period
As of March 31, 2023
Average number of shares during the period
Year ended March 31, 2023

6,694,327 shares Year ended March 31, 2022

2

6,694,400 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

10,134
9,102

8,040
8,937

Electronically recorded monetary claims - operating
Merchandise and finished goods

5,123
5,153

4,820
8,644

Work in process
Raw materials and supplies

4,936
1,531

5,171
1,924

601
(2)

760
(1)

36,58038,297

Buildings and structures, net
Machinery, equipment and vehicles, net

3,956
11,113

3,972
11,152Land
Construction in progress

16,245428

16,230
175

549

523

32,292

32,053

152

133

2,120

2,377

Long-term loans receivable
Deferred tax assets

10851

4833

OtherAllowance for doubtful accounts

207(35)207(34)

Total investments and other assets

3,153

3,389

35,59835,576

72,17973,874

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade13,323

10,283

1,080
10,922

4,338
12,328

Lease liabilities
Income taxes payable

76705

69
166

Provision for bonuses
Provision for product warranties

337
46

340
56

Provision for environmental measures
Other

37
5,249

–
3,757

Total current liabilities

31,77831,339Non-current liabilities
Long-term borrowings

11,52012,212

Lease liabilities
Deferred tax liabilities

174
50

143
46

3,041
2,237

3,041
2,550

Provision for environmental measures
Asset retirement obligations

21
40

48
41

Other

0

0

17,08718,08548,86549,424

Share capital
Capital surplus

6,857
986

6,857
986Retained earnings
Treasury shares

8,465
(10)

9,364
(10)

Total shareholders' equity

16,29817,197

Electronically recorded obligations - operating
Short-term borrowings

Deferred tax liabilities for land revaluation
Retirement benefit liability

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

804

983

Revaluation reserve for land
Foreign currency translation adjustment

6,059
163

6,077
408

Remeasurements of defined benefit plans

(12)

(217)

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

47,015

7,251

23,31424,44972,17973,874

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales
Cost of sales

49,11742,60852,566
46,100Gross profit

6,508

6,466

1,221

1,111

2,183

2,351

107
150
244
(0)
1,163

108
147
195
(2)
1,279

5,070

5,192

1,437

1,273

556
38
13457267439284541232

235

14015925231169
1424–
16Selling, general and administrative expenses
Freight and packing costs
Remuneration, salaries and allowances for directors (and otherofficers)
Provision for bonuses
Retirement benefit expenses
Depreciation
Provision of allowance for doubtful accounts
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income
Compensation income
Sales of scraps income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses
Foreign exchange losses
Depreciation
Other332

225

Ordinary profit

Total non-operating expenses

1,337

1,283

Extraordinary income
Gain on sale of non-current assets
Insurance claim income
Subsidy income

3
2,448
–

4–
1,844

Total extraordinary income

2,452

1,848

43–
10340

54
1,536
16181

Extraordinary losses
Loss on retirement of non-current assets
Loss on tax purpose reduction entry of non-current assets
Loss on valuation of investment securities
Impairment losses

393

1,789

Profit before income taxes

Total extraordinary losses

3,396

1,342Income taxes - current
Income taxes - deferred705
172

388
37

Total income taxes

878

425

Profit2,517

916

Profit attributable to owners of parent

2,517

916

5

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
2,517

916

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

122

178
245

Remeasurements of defined benefit plans, net of tax

276(204)

301

218

Comprehensive income

Total other comprehensive income2,818

1,135

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,818

1,135––

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

6,857

Retained earnings

986

5,985

Cumulative effects ofchanges in accounting
policies

Total shareholders'equityTreasury shares(10)

13,81920

Restated balance

6,857

986

20

6,006

(10)

13,839Changes during period
Profit (loss) attributable toowners of parent

2,517

2,517

Purchase of treasury shares(0)

Reversal of revaluation
reserve for land

(0)

(57)

(57)

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period

–

–

2,459

(0)

2,459

6,857

986

8,465

(10)

16,298

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Revaluation
reserve for land

803

6,001

Foreigncurrencytranslation
adjustment
140

Remeasurementsof definedbenefit plans(289)

Totalaccumulated
Total net assets
othercomprehensive
income6,656

20,475

–

20

6,656

20,495

Profit (loss) attributable toowners of parent

–

2,517

Purchase of treasury shares–(0)

Reversal of revaluation
reserve for land

–

(57)

Cumulative effects ofchanges in accounting
policies
Restated balance

803

6,001

140(289)

Changes during period

Net changes in items otherthan shareholders' equity

157

22276

359

359

Total changes during period

157

22276

359

2,818

804

6,059

163

(12)

7,015

23,314

Balance at end of period

7Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

6,857

Retained earnings

986

Total shareholders'equity

Treasury shares

8,465

(10)

16,298Changes during period
Profit (loss) attributable toowners of parent

916

916

Purchase of treasury shares(0)

Reversal of revaluation
reserve for land

(0)

(17)

(17)

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period––

898

(0)

898

6,857

9869,364(10)

17,197

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Revaluation
reserve for land

804

6,059

Foreigncurrencytranslation
adjustment
163

Remeasurementsof defined
benefit plans

(12)

Total
accumulated
Total net assets
othercomprehensive
income7,015

23,314

Profit (loss) attributable toowners of parent–

916

Purchase of treasury shares–(0)

Reversal of revaluation
reserve for land–(17)

Changes during period

Net changes in items otherthan shareholders' equity

178

17245(204)

236

236

Total changes during period

178

17245(204)

236

1,135

Balance at end of period

983

6,077

408(217)

7,251

24,4498

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
3,396

1,342

1,680
340

1,797
181

Increase (decrease) in provision for product warranties
Increase (decrease) in provision for environmental measures

7–9(10)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

(0)
24(2)
3Increase (decrease) in retirement benefit liability
Interest and dividend income

(13)
(62)

0(80)

Interest expenses
Loss (gain) on sale of non-current assets

140(3)

169(4)

Loss on retirement of property, plant and equipment
Loss (gain) on valuation of investment securities

43105416

Insurance claim income
Subsidy income(2,448)––(1,844)

Loss on tax purpose reduction entry of non-current assets
Decrease (increase) in trade receivables–(1,943)

1,536554

Decrease (increase) in inventories
Increase (decrease) in trade payables(2,015)
2,898(3,976)84

Other, net

328

(380)

Subtotal

2,383(547)6280Interest paid
Spending on fire paid

(141)
(51)

(170)
–

Proceeds from insurance income
Income taxes paid

2,448
(215)

–
(876)

14–

4,500

(1,513)(2,674)14(4,620)
26

Purchase of intangible assets
Purchase of investment securities

(55)
(20)

(10)
(20)

Payments for retirement of property, plant and equipment
Loan advances

(1)
(1)

(1)
–

Proceeds from collection of loans receivable
Subsidies received

3–

7
1,844

Depreciation
Impairment losses

Interest and dividends received

Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

Other, net
Net cash provided by (used in) investing activities

9(11)58(2,747)(2,716)

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
470

1,1305,000(5,714)

6,600(5,630)

Repayments of lease liabilities
Other, net(155)
(0)

(77)
(0)

Net cash provided by (used in) financing activities

(399)

2,021

Proceeds from long-term borrowings
Repayments of long-term borrowings

Effect of exchange rate change on cash and cash equivalents

8178

1,362(2,030)

Cash and cash equivalents at beginning of period

8,703

10,065

Cash and cash equivalents at end of period

10,065

8,035

Net increase (decrease) in cash and cash equivalents

10