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.

November 9, 2023

Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

Dai Nippon Toryo Co., Ltd.
Tokyo Stock Exchange4611
https://www.dnt.co.jp/english/
Takayuki Sato, President
Tatsuhiko Nagano, Director, Managing Executive Officer
General Manager, Administrative Division
Telephone:+81-6-6266-3102
Scheduled date to file quarterly securities report:
November 10, 2023
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for institutional investors andanalysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to
September 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

September 30, 2023

36,371

4.3

2,715

53.1

2,961

45.8

1,956

47.8

September 30, 2022

34,855

6.2

1,773

1.6

2,031

15.9

1,323

43.7

Note: Comprehensive income

For the six months ended September 30, 2023:
For the six months ended September 30, 2022:

Basic earnings
per share
Six months ended¥3,609 million¥1,945 million[85.6%][69.0%]

Diluted earnings
per share
Yen

Yen

September 30, 2023

68.78

68.38

September 30, 2022

46.68

46.29

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

September 30, 2023

97,38457,42956.1

1,921.30

March 31, 2023

92,80555,21056.1

1,829.75

Reference:

EquityAs of September 30, 2023:
As of March 31, 2023:¥54,672 million¥52,033 million%

Yen2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

–

0.00

–

0.00

Fiscal year ending
March 31, 2024
(Forecast)Fiscal year-end

Total

Yen

Yen

–

25.00

25.00

–

30.00

30.00

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

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

Fiscal year ending
March 31, 2024

75,000Operating profit%

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

Ordinary profit

Millions ofyen%Millions ofyen%Millions of
yen

%

5,000

26.7

5,200

20.5

3,400

(1.7)

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

Yen

119.56

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations:None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

29,710,678 shares

As of March 31, 2023

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

1,254,811 shares

As of March 31, 2023

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

28,444,748 shares

Six months ended September 30, 2022

28,355,140 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The earnings forecasts and other forward-looking statements in these materials are based on information
currently available to the Company and on certain assumptions deemed reasonable, and the Company
does not intend to guarantee their achievement. Furthermore, actual results, etc. may differ significantly
due to various factors. Please refer to “1. Qualitative Information on Financial Results for the Quarter,(3) Explanation of forward-looking information such as consolidated earnings forecasts” on page 3 ofthe attached materials for the suppositions that form the assumptions for earnings forecasts and cautions
concerning the use thereof.

○ Table of Contents of Attached Materials
Index
1. Qualitative Information on Financial Results for the Quarter .................................................................. 2(1) Explanation of operating results ......................................................................................................... 2(2) Explanation of financial position........................................................................................................ 3(3) Explanation of forward-looking information such as consolidated earnings forecasts ...................... 3
2. Quarterly Consolidated Financial Statements and Major Notes ............................................................... 5(1) Quarterly consolidated balance sheet ................................................................................................. 5(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income 7
Quarterly consolidated statement of income (cumulative) ................................................................. 7
Quarterly consolidated statement of comprehensive income (cumulative) ........................................ 8(3) Quarterly consolidated statement of cash flows ................................................................................. 9(4) Notes on quarterly consolidated financial statements ...................................................................... 11(Notes on the premise of a going concern) ....................................................................................... 11(Note when there is a significant change in the amount of shareholders’ equity) ............................ 11(Changes in important subsidiaries during the period) ..................................................................... 11(Segment information, etc.) .............................................................................................................. 11(Significant subsequent events) ........................................................................................................ 12-1-

1. Qualitative Information on Financial Results for the Quarter(1) Explanation of operating results
In the first six months of the fiscal year ending March 31, 2024, the Japanese economy was on a
gradual recovery trend due to factors such as the recovery of consumer spending and inbound spending
because of the lifting of restrictions on movement. On the other hand, the outlook remained uncertain
due to the impact of global fiscal tightening, rising energy prices, the prolonged situation in Russia andUkraine and other factors.
As for the Group’s business results, net sales were ¥36,371 million (a 4.3% year-on-year increase)
thanks to a strong performance of the lighting business. On the profit side, improved profit margins dueto the permeation of price adjustments in the domestic coatings business and the lighting businessresulted in an operating profit of ¥2,715 million (a ¥941 million year-on-year increase), ordinary profitof ¥2,961 million (a ¥929 million year-on-year increase), and profit attributable to owners of parent of¥1,956 million (a ¥633 million year-on-year increase).
The business results by segment were as follows.
[Domestic coatings business]
In the general-use sector, although market conditions were unable to reach full-scale recovery, net
sales increased year on year due to the price adjustments carried out in the previous fiscal year andexpanded sales of high value-added products. In the industrial-use sector, although demand forcoatings for building materials decreased significantly due to the decrease of the number of new
housing constructions, net sales increased year on year due to the partial recovery in market
conditions and price adjustments.
Net sales in this segment were lower year on year due to net sales decreasing by approximately¥1.6 billion because of the dissolution of the joint venture with the powder producing subsidiarythat was implemented at the beginning of the fiscal year. However, operating profit increased
significantly year on year as the impact on profits was immaterial.
As a result, net sales were ¥25,935 million (a 0.3% year-on-year decrease), and operating profit
was ¥1,352 million (a ¥522 million year-on-year increase).
[Overseas coatings business]
In Southeast Asia, net sales increased year on year as demand for coatings to automobile-relatedparts recovered in Thailand and Indonesia, and demand for coatings for exterior building materials
increased in Singapore and Malaysia. In Mexico, net sales increased year on year as demand
increased due to the recovery of automobile production volume. In China, net sales increased year
on year because, while sales were sluggish due to a decrease in demand as a result of the impact of
decreased production by Japanese automobile manufacturers, there had been a significant decreasein demand due to the impact of lockdowns during the same period in the previous fiscal year.
In this segment, net sales and operating profit were higher year on year due to the effect of foreign
currency translation resulting from the yen’s depreciation, in addition to the trend of recovering
demand.
As a result, net sales were ¥4,239 million (a 19.7% year-on-year increase), and operating profit was¥242 million (a ¥53 million year-on-year increase).
[Lighting business]
In the commercial LED lighting field, demand continued to increase from the previous fiscal year,
primarily for commercial facilities and construction, against the backdrop of factors such as therecovery of inbound tourist traffic and redevelopment of the Tokyo metropolitan area. In the UV-2-

lamp field, demand for UV disinfection applications increased, primarily for semiconductor-related
markets. Furthermore, net sales and operating profit in this segment increased year on year due tothe progression of price adjustments.
As a result, net sales were ¥4,678 million (a 19.7% year-on-year increase), and operating profit was¥914 million (a ¥396 million year-on-year increase).
[Fluorescent color material business]
Net sales in the segment increased year on year because, while there was a decrease in demand in
the pigments segment due to the economic downturn in the EU region and changing in trends in the
fashion and stationery industries, demand for film products and fluorescent-related materials
increased in the processed products segment. Operating profit was lower year on year due to thedecrease of sales in the pigments segment and the increase of various costs.
As a result, net sales were ¥617 million (a 10.7% year-on-year increase), and operating profit was¥14 million (an ¥18 million year-on-year decrease).
[Other businesses]
In the logistics business, transportation sales and storage sales fell year on year due to a decrease in
the volume of cargo handled. In the painting business, net sales increased year on year as market
conditions recovered gradually.
As a result, net sales were ¥899 million (an 8.5% year-on-year increase), and operating profit was¥45 million (an ¥18 million year-on-year decrease).
(2) Explanation of financial position
Total assets at the end of the second quarter of the fiscal year ending March 31, 2024 were ¥97,384
million, an increase of ¥4,579 million from the end of the previous fiscal year. Current assets totaled¥40,121 million, an increase of ¥1,517 million from the end of the previous consolidated fiscal year,
mainly due to an increase in cash and deposits of ¥585 million, a decrease in notes and accounts
receivable - trade, and contract assets of ¥608 million, an increase in electronically recorded monetaryclaims - operating of ¥1,081 million an increase in inventories of ¥196 million, and other increases of¥265 million. Non-current assets totaled ¥57,262 million, an increase of ¥3,061 million from the end of
the previous fiscal year, due to an increase in property, plant and equipment of ¥927 million, an
increase in intangible assets of ¥166 million, and an increase in investments and other assets of ¥1,968
million.
Liabilities totaled ¥39,954 million, an increase of ¥2,360 million from the end of the previous fiscal
year. Current liabilities totaled ¥30,498 million, an increase of ¥2,257 million from the end of theprevious fiscal year, mainly due to factors such as the ¥2,200 million increase in short-term borrowings
and the ¥107 million increase in other liabilities. Non-current liabilities were ¥9,456 million, an
increase from the end of the previous fiscal year of ¥102 million. The main factors in this were adecrease of long-term borrowings of ¥300 million, a decrease in lease liabilities of ¥145 million, and anincrease in deferred tax liabilities of ¥605 million.
Net assets were ¥57,429 million, an increase of ¥2,219 million from the end of the previous fiscal year.
The main reasons for this were an increase in retained earnings of ¥1,241 million, an increase invaluation difference on available-for-sale securities of ¥1,133 million, an increase in foreign currencytranslation adjustment of ¥675 million, a decrease in the remeasurements of defined benefit plans of¥433 million, and a decrease in non-controlling interests of ¥419 million.
(3) Explanation of forward-looking information such as consolidated earnings forecasts
Regarding the consolidated earnings forecast for the fiscal year ending March 31, 2024, a special
investigation committee is currently conducting an investigation into falsification of test data related to-3-internally established test standards and other inappropriate acts concerning JIS products manufactured
by a consolidated subsidiary of the Company. Once decrease in sales of the JIS products,etc., or thefacts become clear based on the results of the investigation, etc., the Group’s financial position,
operating results, and cash flows may be affected. However, the forecast announced on May 11, 2023
remains unchanged because it is difficult to reasonably estimate the amount of the impact at this time.
In the event that it is necessary to revise the earnings forecast based on future trends in financial results,
the Company will promptly disclose these revisions.

-4-2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheet(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

As of September 30, 2023

6,864

7,449

14,121

13,513

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

6,253
6,296
957
4,084
1,590
(22)
40,121

23,145(15,148)
7,996
24,164(20,374)
3,790
11,400
1,598
(964)
634
144
7,403
(5,822)
1,580
25,54523,657(15,486)
8,171
24,217(20,407)
3,810
11,426
1,593(1,073)
520
1,067
7,420
(5,944)
1,476
26,472

74
370
445

53
558
611

7,728
1,909
18,061532(23)
28,21054,20092,8059,344
1,874
18,466517(24)
30,17857,262
97,384

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses for directors (and otherofficers)
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

As of September 30, 2023

17,270
4,300
505
721

17,340
6,500
503
679

55

–

215
5,172
28,240194
5,279
30,498

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

400
526
6,331
1,189
941
67
9,456
39,9548,827
2,440
32,307(1,462)
42,1128,827
2,440
33,548(1,441)
43,374

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

4,493
1,717
1,466
3,620
11,297
164
2,593
57,42997,384

(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income
Quarterly consolidated statement of income (cumulative)(Millions of yen)Six months ended
September 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Other
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-7-

Six months ended
September 30, 2023

34,85524,846
10,0098,235
1,773

36,371
25,231
11,140
8,424
2,715

7
135
114
127
383

18
159
60
100
338

39
86
126
2,031

37
56
93
2,961

–
–

178
178

33
71
24
128
1,902
383
113
497
1,405
81
1,323

58
–
–
58
3,081
712
345
1,057
2,024
67
1,956

Quarterly consolidated statement of comprehensive income (cumulative)(Millions of yen)Six months ended
September 30, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-8-

Six months ended
September 30, 2023

1,405

2,024

(313)
1,308
(455)

1,133
884
(433)

0

0

539
1,945

1,585
3,609

1,584

3,332

360

277

(3) Quarterly consolidated statement of cash flows(Millions of yen)Six months ended
September 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase/decrease in net defined benefit asset/liability
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for environmental
measures
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on disposal of non-current assets
Impairment losses
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Payments of business restructuring expenses
Income taxes refund
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from sale of businesses
Other, net
Net cash provided by (used in) investing activities-9-

Six months ended
September 30, 2023

1,902
1,173

3,081
1,184

(56)

(55)

(1,071)(148)(1,001)
(20)

(8)

–

(2)
(142)
39
(59)

4
(178)
37
(55)

(2)

3

33
71
–
(1,615)
(835)
200
(202)
(724)
142
(39)
(24)
183
(361)
(823)

58
–
(178)
(273)
(235)
(261)
(131)
1,976
178
(36)
–
86
(843)
1,361

(97)
104
(2,101)
126

(105)
105
(1,860)
2

(8)

(46)

(20)
(5)
–
–
4
(1,998)

(220)
(5)
198
349
9
(1,574)

(Millions of yen)Six months ended
September 30, 2022
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Dividends paid
Dividends paid to non-controlling interests
Purchase of treasury shares
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
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- 10 -

Six months ended
September 30, 2023

3,200
(300)
(181)
(708)
(129)
(0)

2,200
(300)
(177)
(710)
(95)
–

–

(600)

0
1,881

–
315

598

446

(342)
6,479
6,136

549
6,340
6,889

(4) Notes on quarterly consolidated financial statements(Notes on the premise of a going concern)
Not applicable.
(Note when there is a significant change in the amount of shareholders’ equity)
The Company has disposed of 18,328 of its own treasury shares as restricted stock compensation,
based on the resolution passed at the Board of Directors meeting held on June 29, 2023. As a result,during the first six months of the fiscal year ending March 31, 2024, treasury shares decreased by ¥21
million to ¥1,441 million at the end of the second quarter of the fiscal year ending March 31, 2024.
(Changes in important subsidiaries during the period)
During the first quarter of the fiscal year ending March 31, 2024, for Japan Powder Coatings
Manufacturing Co., Ltd., which was established in January 2015 as a joint venture for the production of
powder coatings between the Company and KUBOKO PAINT CO., Ltd., a consolidated subsidiary of
Kansai Paint Co., Ltd., the joint venture was dissolved on April 1, 2023. Furthermore, Japan Powder
Coatings Manufacturing Co., Ltd. became a wholly-owned subsidiary of the Company as the Company
acquired all shares held by KUBOKO PAINT CO., Ltd. on April 27, 2023.
(Segment information, etc.)[Segment information]
I

First six months of the fiscal year ended March 31, 2023 (April 1, 2022 to September 30, 2022)
1. Information on net sales and the amount of profit or loss by reportable segment(Millions of yen)
Reportable segments
Domestic
coatings

Net sales
Net sales to external customers
Intersegment internal net sales
or transfers
Total
Segment profit

Total
Segment profit(Notes) 1.
2.
3.

Fluorescentcolor materials

Lighting

Total

26,017

3,543

3,907

558

34,026

536

5

26

50

619

26,554

3,548

3,933

608

34,645

829

188

517

32

1,569

Amount ofadjustment2

Quarterly
consolidated
incomestatement3

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

Overseascoatings

Total

829

34,855–34,855

1,188

1,807

(1,807)–2,017

36,662(1,807)34,855

64

1,633

140

1,773

“Other” refers to business segments not included in the reportable segments, such as thepainting business and logistics business.
The adjustment of segment profit of ¥140 million refers to the elimination of intersegment
transactions.
Segment profit is adjusted to be consistent with operating profit shown on the quarterly
consolidated statement of income.

- 11 -

2. Information on impairment losses or goodwill, etc. of non-current assets for each reportable segment(Significant impairment loss on non-current assets)
The amount of impairment losses on non-current assets for each segment during the period underreview was ¥71 million for “Domestic coatings.”
In addition, there is no significant fluctuation in the amount of goodwill or recognition of significant
gain on bargain purchase.
II First six months of the fiscal year ending March 31, 2024 (April 1, 2023 to September 30, 2023)
1. Information on net sales and the amount of profit or loss by reportable segment(Millions of yen)
Reportable segments
Domestic
coatings
Net sales
Net sales to external customers
Intersegment internal net sales
or transfers
Total
Segment profit

Total
Segment profit(Notes) 1.
2.
3.

Fluorescentcolor materials

Lighting

Total

25,935

4,239

4,678

617

35,471

527

–

19

47

594

26,462

4,239

4,698

665

36,065

1,352

242

914

14

2,523

Amount ofadjustment2

Quarterly
consolidated
incomestatement3

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

Overseascoatings

Total

899

36,371–36,371

1,152

1,746

(1,746)–

2,052

38,117(1,746)36,371

45

2,568

146

2,715

“Other” refers to business segments not included in the reportable segments, such as thepainting business and logistics business.
The adjustment of segment profit of ¥146 million refers to the elimination of intersegment
transactions.
Segment profit is adjusted to be consistent with operating profit shown on the quarterly
consolidated statement of income.

2. Information on impairment losses or goodwill, etc. of non-current assets for each reportable segment
During the first six months of the fiscal year ending March 31, 2024, there was no recognition ofsignificant impairment losses on non-current assets, no significant fluctuations in the amount of
goodwill, and no recognition of significant gain on bargain purchase.
(Significant subsequent events)
Not applicable.

- 12 -