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 First Six Months of the Fiscal Year Ending December 31, 2023
<under Japanese GAAP>
Company name:
Listing:
Securities code:
URL:
Representative:
Contact:

OAT Agrio Co., Ltd.
Tokyo Stock Exchange4979
https://www.oat-agrio.co.jp
Hisashi Oka, President CEO
Hiroki Takase, Director (Board Member)
TEL: +81-3-5283-0262

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results presentation meeting:

August 8, 2023
–
None
Yes

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated financial results for the first six months of the fiscal year ending December 31, 2023
(from January 1, 2023 to June 30, 2023)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes.)
Net sales
Six months ended

Operating profit

Millions of yen% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen%

June 30, 2023

16,364

6.5

3,253

10.0

3,399

9.3

2,275

8.2

June 30, 2022

15,368

18.7

2,956

61.8

3,109

64.4

2,102

59.7

Note: Comprehensive income

Six months ended June 30, 2023:
Six months ended June 30, 2022:
Basic earnings
per share

Six months ended¥3,884 million¥3,390 million

Diluted earnings
per share
Yen

Yen

June 30, 2023

214.94–

June 30, 2022

199.26–

Note: Diluted earnings per share is not presented because there are no potential shares.

[14.5%][–%]

(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

38,001

15,36137.7

1,348.07

December 31, 2022

31,00911,94935.6

1,043.37

Reference: Equity

As of June 30, 2023:
As of December 31, 2022:%

Yen¥14,311 million¥11,032 million

2. Dividends
Dividends per shareFirst
quarter-end

Secondquarter-end
Yen

Third
quarter-end
Yen

Fiscal year ended
December 31, 2022

–

0.00

Fiscal year ending
December 31, 2023

–

0.00

Fiscal year-end
Yen

Fiscal year ending
December 31, 2023
(Forecast)

Total

Yen

Yen

–

45.00

45.00

–

50.00

50.00

Note: Revisions to the dividends forecasts most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending December 31, 2023
(from January 1, 2023 to December 31, 2023)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
December 31, 2023

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basicearnings
per share

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

%

Yen

28,500

5.7

4,000

19.5

4,050

19.6

2,650

17.2

250.62

Note: Revisions to the 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) Application of special accounting for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies in accordance with changes in accounting standards, etc.: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
(4) Number of shares issued (common shares)
a. Number of shares issued at the end of the period (including treasury shares)
As of June 30, 2023
As of December 31, 2022

11,072,000 shares
11,072,000 sharesb. Number of treasury shares at the end of the period
As of June 30, 2023
As of December 31, 2022

455,953 shares
498,207 sharesc. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Six months ended June 30, 2023
Six months ended June 30, 2022

10,585,702 shares
10,552,056 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 forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable.
Consequently, the statements herein do not constitute assurances regarding the Company’s actual results.
Actual financial and other results may differ substantially from the statements herein due to various factors.

Attached Materials

Index
1. Qualitative information regarding financial results for the first six months ............................................. 2(1) Information regarding operating results ................................................................................................ 2(2) Information regarding financial position ............................................................................................... 2(3) Information regarding consolidated earnings forecasts and other forward-looking statements ............ 3
2. Quarterly consolidated financial statements and significant notes thereto ............................................... 4(1) Consolidated balance sheet.................................................................................................................... 4(2) Consolidated statement of income and consolidated statement of comprehensive income................... 6
Consolidated statement of income (cumulative) ................................................................................... 6
Consolidated statement of comprehensive income (cumulative) .......................................................... 7(3) Consolidated statement of cash flows.................................................................................................... 8(4) Notes to quarterly consolidated financial statements ............................................................................ 9
Notes on premise of going concern ....................................................................................................... 9
Notes on substantial changes in the amount of shareholders’ equity .................................................... 9
Segment information, etc. ...................................................................................................................... 9
Significant subsequent events ................................................................................................................ 9-1-

1. Qualitative information regarding financial results for the first six months(1) Information regarding operating results
In the first six months of the fiscal year ending December 31, 2023, the Japanese economy did show
improvements in the employment situation and capital investment by companies, etc. but there were also
negative factors such as a prolonged inflationary trend, and the pace of recovery in economic activity
became more moderate. COVID-19’s legal classification of infectious disease was reclassified to ClassV, and restrictions on overseas passage were mostly lifted, and while the environment in which society
operates has been resuming normalcy through such measures, it is considered we have fully entered into
a period of searching for responses to post COVID-19 society.
Under such business conditions, OAT Agrio Group (the “Group”) began initiatives aimed at realizing thelong-term vision set forth in the “New Mid-Term Business Plan [2023-2025],” which was announced in
February 2023. As a “company structured for change,” we are capable of taking on the challenges ofcreating new markets; as a “company receptive to diversity,” we tailor our response to regional
characteristics, etc., and as a “company contributing to the future of agriculture,” we are active in thefields of plant protection, cultivation technology, and biostimulants. This is the “ideal state of OAT Agrio”
that the Group commonly aims for as it moves forward in unison.
As a result, in the first six months under review, net sales was ¥16,364 million, up ¥995 million or 6.5%
year on year, operating profit was ¥3,253 million, up ¥296 million or 10.0% year on year, ordinary profit
was ¥3,399 million, up ¥290 million or 9.3% year on year, and profit attributable to owners of parent was¥2,275 million, up ¥172 million or 8.2% year on year.
Net sales and operating profit of the Group tend to be higher in the first and second quarters of the fiscal
year compared with the other two quarters because they are the periods for deliveries in preparation forpeak demand seasons, particularly with respect to the domestic agrichemicals business.
The Group has a single business segment, the AgriTechno Business. The operating results by businessfields in this segment are as follows.
In the agrichemicals field in Japan, the Group maintained favorable sales results for the Company’s mainstay insecticides Orion and Oncol and fungicide Shochinosuke. Sales were strong for insecticides in thegreen agrochemicals, which is the Company’s focus, such as Toarrow and Tomonol. Meanwhile, in theoverseas markets, the acaricide Cyflumetofen continued to perform well, and sales of green agrochemical
Acaritouch increased significantly year-on-year. As a result, net sales in the agrichemicals field amounted
to ¥7,678 million, up ¥175 million or 2.3% year on year.
In the fertilizer and biostimulant field, mainly sales of the biostimulant Potetoru, which stimulates
photosynthesis and encourages growth, and sales of Lidavital, Algamix, and Fullbody, which are productsof LIDA Plant Research, S.L., our affiliate in Spain grew in the domestic market. In overseas markets,
favorable sales were maintained for Atonik, and it was expanded into Central and South America and the
Asian region. Also, Blue Wave Holding B.V. of the Netherlands, which is strong in Post-Harvest products
such as Cut Flower Long Lasting Liquid, etc., achieved robust sales growth, and LIDA Plant Research,
S.L. of Spain maintained strong sales, particularly in the Central and South American markets. As a result,net sales in the fertilizer and biostimulant field and other fields increased by ¥820 million, or 10.4% year
on year, to ¥8,686 million.
(2) Information regarding financial position
a. Position of assets, liabilities, and net assets
Total assets as of June 30, 2023, was ¥38,001 million, an increase of ¥6,992 million compared to
December 31, 2022. This was mainly the result of increases of ¥1,387 million in cash and deposits,¥559 million in notes receivable - trade, ¥2,643 million in accounts receivable - trade, ¥291 million
in raw materials and supplies, ¥1,372 million in work in process, and ¥325 million in goodwill dueto the impact of foreign currency translation.
Total liabilities was ¥22,640 million, an increase of ¥3,580 million compared to December 31, 2022.
This was mainly the result of increases of ¥3,499 million in short-term borrowings, ¥1,272 million
in notes and accounts payable - trade, and ¥391 million in income taxes payable, and a decrease of¥2,076 million in long-term borrowings.

-2-

Net assets was ¥15,361 million, an increase of ¥3,411 million compared to December 31, 2022. Thiswas mainly the result of the recording of ¥2,275 million in profit attributable to owners of parent,¥475 million in payment of dividends of surplus, and an increase of ¥1,418 million in foreign
currency translation adjustment.
b. Cash flows
Cash and cash equivalents as of June 30, 2023, was ¥4,729 million, an increase of ¥1,358 million
compared to December 31, 2022.
Net cash provided by operating activities was ¥676 million (¥3 million was used in the same periodof the previous fiscal year). The main sources of cash were profit before income taxes of ¥3,399
million, depreciation of ¥456 million, amortization of goodwill of ¥327 million, and an increase intrade payables of ¥1,132 million. The main uses of cash were an increase in trade receivables of¥2,870 million, and an increase in inventories of ¥915 million.
Net cash used in investing activities was ¥226 million (¥262 million was used in the same period of
the previous fiscal year). The main uses of cash were purchase of property, plant and equipment of¥197 million and purchase of intangible assets of ¥34 million.
Net cash provided by financing activities was ¥642 million (¥334 million was provided in the same
period of the previous fiscal year). The main source of cash was an increase in short-term borrowingsof ¥1,880 million. The main uses of cash were repayments of long-term borrowings of ¥669 million,
dividends paid of ¥474 million, and repayments of lease obligations of ¥83 million.
(3) Information regarding consolidated earnings forecasts and other forward-looking statements
There is no change to the consolidated earnings forecasts for the fiscal year ending December 31, 2023
announced on May 10, 2023.

-3-

2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of December 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims - operating
Accounts receivable - trade
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
Intangible assets
Goodwill
Software
Customer relation assets
Other
Total intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for compensation for damages
Refund liability
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities-4-

As of June 30, 2023

3,614
452
62
5,239
3,443
1,071
2,345
750
(60)
16,920

5,001
1,011
41
7,883
2,982
2,444
2,637
1,004
(64)
22,940

3,779

4,059

5,960
184
2,650
382
9,177
1,132
14,08931,009

6,286
178
2,827
417
9,710
1,291
15,06038,001

2,954
5,865
686
646
37
23
128
1,275
11,617

4,226
9,365
520
1,038
37
26
262
1,603
17,081

5,951
282
883
324
7,442
19,060

3,874
286
1,002
395
5,558
22,640(Millions of yen)
As of December 31, 2022
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
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-

As of June 30, 2023

461
2,410
7,906
(408)
10,371

461
2,395
9,706
(373)
12,189

72
632
(44)
660
917
11,94931,009

111
2,051
(41)
2,121
1,050
15,361
38,001

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Millions of yen)Six months ended
June 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Foreign exchange gains
Dividend income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale 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-

Six months ended
June 30, 2023

15,368
7,790
7,578
4,621
2,956

16,364
8,186
8,178
4,924
3,253

4
208
2

15
230
3

8

11

29
253

11
271

87
12
100
3,109

95
30
125
3,399

0
0

0
0

0
–
19
20
3,088
1,021
(105)
916
2,172
69
2,102

0
0
0
0
3,399
1,139
(66)
1,073
2,326
51
2,275

Consolidated statement of comprehensive income (cumulative)(Millions of yen)Six 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
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-

Six months ended
June 30, 2023

2,172

2,326

(3)
1,223
(1)
1,218
3,390

39
1,515
1
1,557
3,884

3,230

3,735

160

148

(3) Consolidated statement of cash flows(Millions of yen)Six months ended
June 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Increase (decrease) in retirement benefit liability
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in refund liability
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Share-based payment expenses
Foreign exchange losses (gains)
Insurance claim income
Loss (gain) on sale and retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from sale of property, plant and equipment
and intangible assets
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase 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
Proceeds from long-term borrowings
Repayments of lease liabilities
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-8-

Six months ended
June 30, 2023

3,088
420
301
19
1
16
138
3
(7)
87
14
1
–
0
(3,110)
(556)
250
(116)
554
6
(79)
–
(486)
(3)

3,399
456
327
0
(0)
(0)
133
0
(19)
95
19
(85)
(0)
(0)
(2,870)
(915)
1,132
(125)
1,545
14
(101)
0
(782)
676

(3)

(3)

0

0

(125)
(60)
(71)
(2)
(262)

(197)
(34)
(0)
8
(226)

1,150
(507)
12
(84)
(237)
–
(0)
334

1,880
(669)
–
(83)
(474)
(19)
10
642

227

265

295
3,514
3,809

1,358
3,371
4,729

(4) Notes to quarterly consolidated financial statements
Notes on premise of going concern
No items to report.
Notes on substantial changes in the amount of shareholders’ equity
No items to report.
Segment information, etc.
[Segment information]
As the Group consists of a single business segment, the AgriTechno Business, this information isomitted.
Significant subsequent events
Purchase of treasury shares
At the Board of Directors meeting held on August 8, 2023, the Company resolved to purchase treasury
shares as provided for in the Articles of Incorporation in accordance with the provision of Article 459,
paragraph (1) of the Companies Act.
1. Reason for purchase of treasury shares
To provide return of profit to the shareholders and to improve capital efficiency.
2. Details of matters concerning the purchase(1) Type of shares to be purchased:

Common shares(2) Total number of shares to be purchased: Up to 400,000 shares(Ratio to the total number of issued shares(excluding treasury shares): 3.77%)(3) Aggregate purchase value:

Up to ¥600 million(4) Purchase period:

From August 9, 2023 to December 31, 2023

(5) Purchase method:

Purchase by means of market trades on the Tokyo
Stock Exchange-9-