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 5, 2022

Consolidated Financial Results
for the Three Months Ended June 30, 2022
(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:
August 8, 2022
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 toJune 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Three 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%

June 30, 2022

17,0942.6

702(28.0)

922(18.8)

594

1.0

June 30, 2021

16,666

8.1

975

96.9

1,135

99.7

588

136.0

Note: Comprehensive income

For the three months ended June 30, 2022:
For the three months ended June 30, 2021:

Basic earnings
per share
Three months ended¥841 million¥618 million[36.2%][–%]

Diluted earnings
per share
Yen

Yen

June 30, 2022

20.98

20.80

June 30, 2021

20.80

20.64

(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, 2022

90,284

52,12554.2

1,727.18

March 31, 2022

87,70551,99155.9

1,730.00

Reference:

EquityAs of June 30, 2022:
As of March 31, 2022:¥48,935 million¥49,015 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, 2022
Fiscal year ending
March 31, 2023–

Fiscal year-end

Total

Yen

Yen

0.00

–

25.00

25.00

0.00

–

25.00

25.00

–

Fiscal year ending
March 31, 2023
(Forecast)

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

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 toMarch 31, 2023)
Net sales
Millions ofyen

Six months ending
September 30,
2022(Cumulative)
Fiscal year ending
March 31, 2023

Operating profit%

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

Ordinary profit%

Millions ofyen%

34,1003.9

1,250 (28.4)

1,370(21.8)

70,800

5.8

3,300

3,550

2.4

3.7

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

Millions ofyen%

750 (18.6)

2,000

(1.6)

Yen

26.47

70.59

* 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 June 30, 2022

29,710,678 shares

As of March 31, 2022

29,710,678 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2022

1,377,947 shares

As of March 31, 2022

1,377,931 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Three months ended June 30, 2022

28,332,737 shares

Three months ended June 30, 2021

28,305,339 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 of theattached 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 ............................................................... 4(1) Quarterly consolidated balance sheet ................................................................................................. 4(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income 6
Quarterly consolidated statement of income (cumulative) ................................................................. 6
Quarterly consolidated statement of comprehensive income (cumulative) ........................................ 6(3) Notes on quarterly consolidated financial statements ........................................................................ 7(Notes on the premise of a going concern) ......................................................................................... 7(Note when there is a significant change in the amount of shareholders’ equity) .............................. 7(Changes in important subsidiaries during the period) ....................................................................... 7(Segment information, etc.) ................................................................................................................ 7(Significant subsequent events) .......................................................................................................... 8-1-1. Qualitative Information on Financial Results for the Quarter(1) Explanation of operating results
In the first three months of the fiscal year ending March 31, 2023, the Japanese economy showed signsof recovery as economic activities began to normalize, however, the situation still remains
unpredictable as the rapid spread of infection by a new mutant strain of the novel coronavirus infectionis advancing. In addition, uncertainty about the outlook is increasing due to the global supply chain
disruption caused by the prolonged situation in Ukraine, the rise in raw material prices, and thedownside risks to the economy due to the rapid depreciation of the yen.
As for the Group’s business results, net sales were ¥17,094 million (a 2.6% year-on-year increase)
thanks to progress in price pass-through in the domestic coatings business. On the profit side, operating
profit was ¥702 million (a ¥272 million year-on-year decrease), ordinary profit was ¥922 million (a¥213 million year-on-year decrease), and profit attributable to owners of parent was ¥594 million (a ¥5million year-on-year increase) as the impact of the rise in raw material prices was further strengthened.
The business results by segment were as follows.
[Domestic coatings business]
In the general-use sector, sales of coatings for structures remained strong, but in the industrial-use
sector, sales remained sluggish due to a decline in demand for coatings for plastics, etc., caused by
the shortage of semiconductors. In this segment, net sales increased year on year due to progress inprice pass-through. On the profit side, the increase in raw material prices was not enough to offset
the impact of higher prices, resulting in a lower profit year on year.
As a result, net sales were ¥12,810 million (a 3.9% year-on-year increase), and operating profit was¥343 million (a ¥260 million year-on-year decrease).
[Overseas coatings business]
In Southeast Asia and North and Central America, demand for coatings for automotive parts
decreased due to a decline in production by major customers, and sales in each region were lower
year on year. In China, sales of baking coatings increased due to the acquisition of new customers,
and net sales were higher year on year. In this segment, net sales were higher year on year due tothe effect of foreign currency translation resulting from the yen’s depreciation. Profits were lower
year on year due to the impact of higher raw material prices.
As a result, net sales were ¥1,844 million (a 0.4% year-on-year increase), and operating profit was¥95 million (a ¥97 million year-on-year decrease).
[Lighting business]
In the commercial LED lighting field, sales were higher year on year due to a partial recovery inmarket conditions. In this segment, net sales were lower year on year due to a decrease in sales oflighting installation work. As for profits, they exceeded year on year levels due to increased sales in
the commercial LED lighting field as well as efforts to reduce costs.
As a result, net sales were ¥1,768 million (a 1.9% year-on-year decrease), and operating profit was¥169 million (a ¥64 million year-on-year increase).
[Fluorescent color material business]
In the processed products segment, demand is on a recovery trend due to the resumption of various
events, etc. However, in the pigments segment, demand from major customers declined in thedomestic market, and net sales in this segment fell year on year. In terms of earnings, although the-2-company made efforts to pass on the rise in raw material prices and reduce expenses, sales declined
year on year due to a decrease in net sales.
As a result, net sales were ¥289 million (a 12.2% year-on-year decrease), and operating income
was ¥18 million (a ¥3 million year-on-year decrease).
[Other businesses]
Net sales were ¥381 million (a 5.2% year-on-year increase), and operating income was ¥32 million(a ¥2 million year-on-year increase).
(2) Explanation of financial position
Total assets at the end of the first quarter of the fiscal year ending March 31, 2023, were ¥90,284
million, an increase of ¥2,579 million from the end of the previous consolidated fiscal year. Current
assets totaled ¥36,790 million, an increase of ¥2,017 million from the end of the previous consolidated
fiscal year, mainly due to a decrease in cash and deposits of ¥112 million, an increase in notes andaccounts receivable - trade, and contract assets of ¥1,167 million, an increase in inventories of ¥737
million, and other increases of ¥221 million. Non-current assets totaled ¥53,493 million, an increase of¥561 million from the end of the previous consolidated fiscal year, mainly due to an increase intangible fixed assets of ¥727 million and a decrease in investments and other assets of ¥135 million.
Liabilities totaled ¥38,159 million, an increase of ¥2,445 million from the end of the previous
consolidated fiscal year. Current liabilities totaled ¥28,415 million, an increase of ¥2,624 million fromthe end of the previous consolidated fiscal year, mainly due to an increase of ¥436 million in notes andaccounts payable - trade, an increase in short-term borrowings of ¥2,650 million, a decrease in income
taxes payable of ¥275 million, and a decrease in provisions for product compensation of ¥141 million.
Non-current liabilities were ¥9,744 million, a decrease of ¥179 million from the end of the previous
consolidated fiscal year, mainly due to a decrease in deferred tax liabilities of ¥116 million.
Net assets were ¥52,125 million, an increase of ¥133 million from the end of the previous consolidated
fiscal year. The main reasons for this were a decrease in retained earnings of ¥113 million, a decrease invaluation difference on available-for-sale securities of ¥194 million, an increase in foreign currencytranslation adjustment of ¥466 million, a decrease in the remeasurements of defined benefit plans of¥238 million, and an increase in non-controlling interests of ¥213 million.
(3) Explanation of forward-looking information such as consolidated earnings forecasts
The consolidated earnings forecasts for the first six months of the fiscal year ending March 31, 2023,
and the full year are unchanged from the previously announced forecasts (May 11, 2022).

-3-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheet(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise 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-4-

As of June 30, 2022

6,777

6,664

16,411

17,579

5,603
905
3,720
1,386
(31)
34,773

5,788
932
4,245
1,608
(27)
36,79022,323(14,449)
7,873
23,441(19,669)
3,772
11,4981,902(1,001)
900
209
6,820
(5,483)
1,336
25,591

22,575(14,655)
7,919
23,813(19,999)
3,813
12,1901,876(1,044)
832
257
6,901
(5,595)
1,305
26,319

120
254
374

108
236
344

7,324
1,794
17,264608(25)
26,96552,93287,705

7,049
1,735
17,483587(25)
26,83053,49390,284

(Millions of yen)
As of March 31, 2022
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
Provision for environmental measures
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-5-

As of June 30, 2022

16,340
3,050
312
429

16,777
5,700
297
154

56

–

370
5,230
25,790228
5,256
28,415

1,200
981
5,436
1,303
938
8
54
9,923
35,713

1,200
909
5,319
1,303
953
8
49
9,744
38,1598,827
2,440
29,417(1,582)
39,1018,827
2,440
29,303(1,582)
38,988

3,027
1,882
(2)
5,006
9,913
243
2,732
51,99187,705

2,833
1,882
463
4,768
9,947
243
2,945
52,12590,284

(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income
Quarterly consolidated statement of income (cumulative)(Millions of yen)Three months ended
June 30, 2021
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 losses
Loss on disposal 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

Three months ended
June 30, 2022

16,666
11,532
5,133
4,158
975

17,094
12,261
4,833
4,130
702

5
93
29
82
211

3
103
82
73
263

19
30
50
1,135

17
26
43
922

14
–
14
1,121
121
311
433
687
98
588

4
71
75
847
62
138
200
646
51
594

Quarterly consolidated statement of comprehensive income (cumulative)(Millions of yen)Three months ended
June 30, 2021
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-6-

Three months ended
June 30, 2022

687

646

(248)
380
(202)

(194)
628
(238)

0

0

(69)
618

195
841

458

628

159

213

(3) 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)
Not applicable.
(Changes in important subsidiaries during the period)
During the quarter under review, Nitto Chemical Co., Ltd. and BO Chemical Co., Ltd., consolidated
subsidiaries of the Company, conducted an absorption-type merger on April 1, 2022, with Nitto
Chemical Co., Ltd. as the surviving company and BO Chemical Co., Ltd. as the dissolving company,
and excluded the dissolved company BO Chemical Co., Ltd. from the scope of consolidation.
(Segment information, etc.)[Segment information]
Ⅰ

First three months of the fiscal year ended March 31, 2022 (April 1, 2021 to June 30, 2021)
1. Information on net sales and the amount of profit or loss by reported 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

12,333

1,838

1,802

329

16,304

265

1

6

19

293

12,599

1,839

1,809

349

16,598

603

192

104

21

922

Amount ofadjustment2

Quarterly
consolidated
incomestatement3

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

Overseascoatings

Total

362

16,666–

16,666

584

878

(878)

–

947

17,545(878)

16,666

30

952

23

975

“Other” refers to business segments not included in the reportable segments, such as thepainting business and logistics business.
The adjustment of segment profit of ¥23 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 reported segment
During the first three months of the fiscal year ending March 31, 2023, 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.
-7-

ⅠⅠ First three months of the fiscal year ending March 31, 2023 (April 1, 2022 to June 30, 2022)
1. Information on net sales and the amount of profit or loss by reported segment(Millions of yen)
Reportable segments
Domestic
coatings
Net sales
Net sales to external customers
Intersegment internal net sales
or transfers
Total

1,768

289

16,713

266

–

7

23

297

13,076

1,844

1,776

313

17,010

343

95

169

18

625

Amount ofadjustment2

Quarterly
consolidated
incomestatement3

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

3.

Total

1,844

Other1

2.

Fluorescentcolor materials

Lighting

12,810

Segment profit(Notes) 1.

Overseascoatings

Total

381

17,094–17,094

596

893

(893)

–

977

17,988(893)

17,094

32

658

44

702

“Other” refers to business segments not included in the reportable segments, such as thepainting business and logistics business.
The adjustment of segment profit of ¥44 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 reported 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.
(Significant subsequent events)
Disposal of treasury shares as restricted stock compensation
At the Board of Directors meeting held on June 29, 2022, the Company resolved to dispose of its own
treasury shares as restricted stock compensation, and the payment procedures were completed asfollows on July 20, 2022.
Overview of disposal(1) Payment due dateJuly 20, 2022

(2) Type and number of shares to be disposed

22,455 shares of the Company’s common stock(3) Disposal value¥718 per share(4) Total amount of disposal¥16,122,690(5) Disposal destination

Directors of the Company*
Executive officer of the Company* Excludes outside Directors.

-8-

5 persons 16,921 shares
5 persons 5,534 shares