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.

May 11, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 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 of ordinary general meeting of shareholders:June 29, 2023
Scheduled date to commence dividend payments:
June 30, 2023
Scheduled date to file annual securities report:
June 29, 2023
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2023

72,849

8.8

3,946

24.0

4,316

24.6

3,458

70.2

March 31, 2022

66,948

6.0

3,183

12.5

3,465

6.0

2,031

3.2

Note: Comprehensive income

For the fiscal year ended March 31, 2023:
For the fiscal year ended March 31, 2022:

Basic earnings
per share

Diluted earnings
per share¥4,040 million¥1,895 million

Return on equity[113.1%][(73.0)%]

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales%%

Fiscal year ended

Yen

Yen

March 31, 2023

121.78120.92

6.8

4.8

5.4

March 31, 2022

71.74

71.10

4.2

4.0

4.8

Reference:%

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2023:¥1 million
For the fiscal year ended March 31, 2022:¥(2) million(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

March 31, 2023

92,80555,21056.1

1,829.75

March 31, 2022

87,70551,99155.9

1,730.00

Reference:

EquityAs of March 31, 2023:
As of March 31, 2022:¥52,033 million¥49,015 million%

Yen(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Fiscal year ended

Millions of yen

Millions of yen

March 31, 2023

1,282

March 31, 2022

3,364

Millions of yen

Millions of yen(1,449)

(473)

6,340

(966)

(2,841)6,479

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year
ending March 31,
2024 (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

%

%

–

0.00

–

25.00

25.00

708

34.8

1.5

–

0.00

–

25.00

25.00

710

20.5

1.4

–

0.00

–

30.00

30.00

25.1

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

Six months ending
September 30,
2023(Cumulative)
Fiscal year ending
March 31, 2024

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

Ordinary profit

Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

37,000

6.2

2,300

29.7

2,400

18.1

1,550

17.1

54.51

75,000

3.0

5,000

26.7

5,200

20.5

3,400

(1.7)

119.56

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(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:None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

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 March 31, 2023

1,273,139 shares

As of March 31, 2022

1,377,931 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2023

28,395,186 sharesFiscal year ended March 31, 2022

28,322,840 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

ProfitFiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2023

43,269

8.6

893

8.2

2,396

15.1

2,464

63.8

March 31, 2022

39,849

5.9

825

8.5

2,082

(19.1)

1,504(26.1)

Basic earnings
per share

Diluted earnings
per share

Fiscal year ended

Yen

Yen

March 31, 2023

86.80

86.19

March 31, 2022

53.13

52.66

(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

March 31, 2023

70,98535,39649.6

1,238.93

March 31, 2022

67,19633,32649.2

1,167.66

Reference:

EquityAs of March 31, 2023:
As of March 31, 2022:¥35,232 million¥33,083 million%

Yen* 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 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. Summary of Business Results, Etc., (4) Future Prospects” onpage 4 of the attached materials for the suppositions that form the assumptions for earnings forecasts andcautions concerning the use thereof.

○ Table of Contents of Attached Materials
Index
1. Summary of Business Results, Etc. .......................................................................................................... 2(1) Summary of Business Results for Current Fiscal Year ....................................................................... 2(2) Summary of Financial Position for Current Fiscal Year ..................................................................... 3(3) Summary of Cash Flows for Current Fiscal Year ............................................................................... 3(4) Future Prospects ................................................................................................................................. 4(5) Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years ................ 4
2. Status of the Corporate Group .................................................................................................................. 6
3. Basic Approach to the Selection of Accounting Standards ....................................................................... 6
4. Consolidated Financial Statements and Major Notes ............................................................................... 7(1) Consolidated balance sheet ................................................................................................................ 7(2) Consolidated statement of income and consolidated statement of comprehensive income ............... 9(Consolidated statement of income) ................................................................................................... 9(Consolidated statement of comprehensive income) ........................................................................ 10(3) Consolidated statement of changes in equity ................................................................................... 11(4) Consolidated statement of cash flows .............................................................................................. 13(5) Notes on consolidated financial statements ...................................................................................... 15(Notes on the premise of a going concern) ....................................................................................... 15(Segment information, etc.) .............................................................................................................. 15(Changes in important subsidiaries during the period) ..................................................................... 19(Per share information) ..................................................................................................................... 20(Significant subsequent events) ........................................................................................................ 20
5. Non-consolidated Financial Statements and Major Notes ...................................................................... 21(1) Balance sheet .................................................................................................................................... 21(2) Statement of income ......................................................................................................................... 23(3) Statement of changes in equity ......................................................................................................... 24
6. Other ....................................................................................................................................................... 26
Change of Officers (Effective June 29, 2023) .................................................................................. 26-1-

1. Summary of Business Results, Etc.
(1) Summary of Business Results for Current Fiscal YearIn the fiscal year under review, the Japanese economy progressively achieved a balance between
preventing the spread of the novel coronavirus infection and maintaining economic activities. However,
the outlook remained uncertain due to factors such as not only the rise in raw material prices andenergy prices triggered by the prolonged situation in Ukraine, but the downturn in overseas economies
and sharp fluctuations in exchange rates brought about by global monetary tightening.
As for the Group’s business results, net sales were ¥72,849 million (an 8.8% year-on-year increase) due
to the effort for price adjustments in each segment. On the profit side, operating profit was ¥3,946
million (a ¥762 million year-on-year increase) and ordinary profit was ¥4,316 million (an ¥850 million
year-on-year increase) due to a strong performance of the lighting business. Profit attributable toowners of parent was ¥3,458 million (a ¥1,426 million year-on-year increase) due to gain on sale ofnon-current assets in the fourth quarter.
The business results by segment were as follows.
[Domestic coatings business]
In the general-use sector, the market for coatings for structures remained strong, but in theindustrial-use sector, demand declined, particularly for coatings for building materials. In thissegment, net sales exceeded year on year due to the effort for price adjustments to respond to therise in raw material prices. Profits were in line with the previous fiscal year as a result of working
on measures to reduce costs, such as the increase of production efficiency and the review of raw
materials and paint formulation.
As a result, net sales were ¥53,250 million (a 7.3% year-on-year increase), and operating profit was¥1,986 million (a ¥3 million year-on-year decrease).
[Overseas coatings business]
In Southeast Asia, demand for coatings for automotive parts remained sluggish in Thailand due tothe shortage of semiconductors and other materials, while demand for coatings for building
materials and baking applications increased in Singapore and Malaysia. In North and Central
America, demand for coatings for automotive parts decreased due to a decline in production bymajor customers. In China, while demand for baking coatings increased, demand for coatings forautomotive parts decreased due to the impact of COVID-19 Zero policy (policy of no newly
infected patients). In this segment, net sales were higher year on year due to the effect of foreign
currency translation resulting from the yen’s depreciation. Profits were lower than in the previous
fiscal year due to higher raw material prices and lower demand in Thailand and Mexico, as well as
a valuation loss on inventories recorded in the China business.
As a result, net sales were ¥8,066 million (a 16.2% year-on-year increase), and operating profit was¥203 million (a ¥32 million year-on-year decrease).
[Lighting business]
In the commercial LED lighting field, demand for lighting for commercial facilities andconstruction recovered, and price adjustment measures were carried out to respond to the rise in
raw material prices. As a result, net sales in this segment were higher year on year. As for profits,
they exceeded year on year due to increased sales as well as efforts to control costs.
As a result, net sales were ¥8,557 million (an 11.8% year-on-year increase), and operating profit
was ¥1,285 million (a ¥708 million year-on-year increase).

-2-

[Fluorescent color material business]
In the processed products segment, demand recovered due to the development of the market forsafety applications and the resumption of various events, etc. However, in the pigments segment,
domestic and overseas market conditions were sluggish, and net sales in this segment fell year on
year. Profits exceeded year on year due to increased sales in the high value-added processed
products segment and cost reductions.
As a result, net sales were ¥1,154 million (a 5.7% year-on-year decrease), and operating profit was¥71 million (a ¥24 million year-on-year increase).
[Other businesses]
In the logistics business, transportation sales fell year on year due to a decrease in the volume ofcargo handled. In the painting business, demand recovered mainly in the Tokyo metropolitan area,and net sales increased year on year.
As a result, net sales were ¥1,820 million (a 20.8% year-on-year increase), and operating profit was¥159 million (a ¥44 million year-on-year increase).
(2) Summary of Financial Position for Current Fiscal Year
Total assets at the end of the current fiscal year were ¥92,805 million, an increase of ¥5,099 million
from the end of the previous fiscal year. Current assets increased by ¥3,830 million to ¥38,604 million
from the end of the previous fiscal year. This was mainly due to an increase in notes and accounts
receivable - trade, and contract assets of ¥976 million, an increase in electronically recorded monetaryclaims - operating of ¥1,905 million, and an increase in inventories of ¥912 million. Non-current assets
totaled ¥54,200 million, an increase of ¥1,268 million from the end of the previous fiscal year, mainly
due to a ¥1,244 million increase in investments and other assets.
Liabilities totaled ¥37,594 million, an increase of ¥1,880 million from the end of the previous fiscal
year. Current liabilities were ¥28,240 million, an increase of ¥2,449 million from the end of theprevious fiscal year. An increase of ¥929 million in notes and accounts payable - trade, an increase in
short-term borrowings of ¥1,250 million, an increase in income taxes payable of ¥291 million, adecrease in provision for product warranties of ¥154 million, and an increase in lease liabilities of ¥193
million were the main factors in this. Non-current liabilities were ¥9,354 million, a decrease from theend of the previous fiscal year of ¥568 million. The main factors in this were a decrease in long-termborrowings of ¥500 million, a decrease in deferred tax liabilities for land revaluation of ¥114 million, adecrease in lease liabilities of ¥309 million, and an increase in deferred tax liabilities of ¥289 million.
Net assets were ¥55,210 million, an increase from the end of the previous fiscal year of ¥3,218 million.
The main factors in this were an increase in retained earnings of ¥2,889 million, a decrease of ¥120
million in treasury shares, an increase of ¥331 million in valuation difference on available-for-salesecurities, a decrease of ¥165 million in revaluation reserve for land, an increase in foreign currencytranslation adjustment of ¥793 million, a decrease in remeasurements of defined benefit plans of ¥952
million, and an increase in non-controlling interests of ¥280 million.
(3) Summary of Cash Flows for Current Fiscal Year
During the current fiscal year, cash and cash equivalents (hereinafter, “cash”) decreased from the end of
the previous fiscal year by ¥138 million to ¥6,340 million.
The status of each cash flow during the current fiscal year and their contributing factors are as follows.

-3-

(Cash flows from operating activities)
Cash provided by operating activities in the current fiscal year totaled ¥1,282 million (compared to¥3,364 million gained in the previous fiscal year). This is mainly due to income from an increase intrade payables, and expenditures such as an increase in trade receivables, an increase in net defined
benefit asset, and income taxes paid, based on profit before income taxes and depreciation.
(Cash flows from investing activities)
Cash used in investing activities during the current fiscal year amounted to ¥1,449 million (comparedto ¥966 million expended in the previous fiscal year). The main factors in this are income such asproceeds from sale of property, plant and equipment, and expenditures including the purchase ofproperty, plant and equipment.
(Cash flows from financing activities)
Cash used in financing activities in the current fiscal year amounted to ¥473 million (compared to¥2,841 million expended in the previous fiscal year). The main factors in this are income such asproceeds from short-term borrowings, and expenditures including dividends paid, repayments of longterm borrowings, and repayments of lease liabilities.
(4) Future Prospects
The Japanese economy is expected to pick up in the next fiscal year (ending March 31, 2024) as thenormalization of economic activity thanks to Living With COVID makes further progress. However,
the outlook remains uncertain due to the prolonged situation in Ukraine, rising geopolitical risks suchas the conflict between the U.S. and China, and global inflation, which remain as downside risks to theeconomy.
Under these circumstances, we will respond to changes in the structure of society by strengthening its
product and technology development system to create new added value, focusing on markets where wecan show our strengths such as structural coatings and LED lighting in Japan and coatings andfluorescent pigments for automotive parts overseas. Through these efforts, we will expand our share of
the existing market and cultivate new markets, thereby increasing earnings. At the same time, we willcontinue our efforts to reduce manufacturing costs by improving line productivity and production
automation, and to reduce raw material costs by reexamining raw materials and coating formulations tostabilize our business performance and achieve higher profitability in the future.
As for the business environment in the next fiscal year, in the domestic coatings market, which is our
main market, the demand environment in the general-purpose coatings field is expected to remain firm.
However, in the industrial coatings sector, a gradual recovery in demand is expected against the
backdrop of a recovery in economic activity. Meanwhile, fuel costs are expected to rise in line withhigher energy prices, and trends in raw material prices remain uncertain. It is important to focus on the
manufacturing cost reduction measures mentioned above and to implement an elastic pricing strategy.
Our consolidated earnings forecast for the next fiscal year is net sales of ¥75,000 million, operating
profit of ¥5,000 million, ordinary profit of ¥5,200 million, and profit attributable to owners of parent of¥3,400 million.
This forecast for the next fiscal year is calculated based on the information available at this time, but
actual results may differ due to a variety of factors, including changes in economic and businessconditions and raw materials price trends.
(5) Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years
The Company regards the determination of the amount of dividends to be paid to shareholders as oneof its most important management issues. Our basic policy is to continue to pay stable dividends-4-commensurate with our business performance, while at the same time striving to strengthen our
corporate constitution and maintain financial soundness.
Regarding dividends at the end of the current fiscal year, as announced in the timely disclosure dated
May 11, 2022, the Company plans to pay a dividend of ¥25 per share.
Regarding the next fiscal year, we plan to pay an annual dividend of ¥30 per share. As a result, theconsolidated dividend payout ratio is expected to be 25.1%. To continue to pay stable dividends, wewill continue to make efforts to strengthen the soundness of our financial constitution.

-5-

2. Status of the Corporate GroupThe following is a diagram of the Company’s operations.
〔 Domestic Coatings Business 〕〔 Overseas Coatings Business 〕

Domestic Customers

Overseas Customers

Sales Companies

Sales Companies○ Dai Nippon Toryo Hokkaido Co., Ltd.
○ Sunday Paint Co., Ltd.
○ DNT Sanyo Chemical Co., Ltd.
○ Ube Toryo Co., Ltd.

Goods
Finished
Goods,
Etc.
Raw
Materials, Etc.

Manufacturing Companies○ Chiba Kako Co., Ltd.
○ Nitto Sanwa Toryo Co., Ltd.
○ DNT Service Co., Ltd.
○ Japan Powder Coatings

Finished
Goods

Manufacturing/Sales Companies

DNT (Mnfg./Sales)

Manufacturing/Sales Companies○ Nitto Chemical Co., Ltd.

○ DNT Singapore Pte., Ltd.
○ DNT KANSAI MEXICANA S.A. de C.V.
(+1 Other Company)＊ Lilama3- Dai Nippon Toryo Co., Ltd.

Finished○ Thai DNT Paint Mfg. Co., Ltd.
○ DNT Paint (Malaysia) Sdn. Bhd.
○ PT. DNT INDONESIA○ DNT (Shanghai) Co., Ltd.
○ DNT (Zhejiang) Co., Ltd.
○ DAI NIPPON TORYO MEXICANA,
S.A. de C.V.

Raw
Materials, Etc.

Manufacturing Co., Ltd.
○ Okayama Kako Co., Ltd.

〔Lighting Business 〕
Manufacturing Companies

Manufacturing/Sales Companies
Finished Goods○ Akita DN Lighting Co., Ltd.

○ DN Lighting Co., Ltd.

〔 Flourescent Color Material Business 〕
Manufacturing/Sales Companies

Overseas Customers

Logistical Tasks, Etc.

○Sinloihi Co., Ltd.

〔

Other Businesses〕(Logistics Business)○ Nitto Service Co., Ltd.

(Notes) 1.
2.

(Painting Business)○ Nitto Engineering Co., Ltd.

(Other)＊Yubi Industry, Ltd.

A circle (○) denotes a consolidated subsidiary.
An asterisk (＊) denotes an equity method affiliate.

3. Basic Approach to the Selection of Accounting Standards
The Company’s policy is to prepare for the future application of IFRS by preparing internal manuals,
guidelines, etc., and by also considering the timing of application.

-6-

Domestic Customers<Some Logistical Tasks>

4. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2022
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-7-

As of March 31, 2023

6,777

6,864

13,145

14,121

3,266
5,603
905
3,720
1,386
(31)
34,773

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

22,323(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

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
25,545

120
254
374

74
370
445

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

7,728
1,909
18,061532(23)
28,21054,20092,805

(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-8-

As of March 31, 2023

16,340
3,050
312
429

17,270
4,300
505
721

56

55

370
5,230
25,790215
5,172
28,240

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

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

8,827
2,440
29,417(1,582)
39,1018,827
2,440
32,307(1,462)
42,112

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

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

(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)(Millions of yen)
Fiscal year ended
March 31, 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
Gain on sale of goods
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of trade receivables
Compensation expenses
Provision for product warranties
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
Loss on disposal of non-current assets
Impairment losses
Business restructuring expenses
Company funeral expenses
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-9-

Fiscal year ended
March 31, 2023

66,94847,29019,65816,474
3,183

72,84952,233
20,616
16,670
3,946

17
210
148
94
202
673

15
229
28
92
220
586

65
33
135
109
48
391
3,465

71
25
4
40
74
216
4,316

240
82
323

746
16
762

116
17
30
–
14
177
3,611
595
732
1,328
2,283
251
2,031

59
71
–
24
10
166
4,912
947
348
1,295
3,617
159
3,458

(Consolidated statement of comprehensive income)(Millions of yen)
Fiscal year ended
March 31, 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- 10 -

Fiscal year ended
March 31, 2023

2,283

3,617

84
418
(890)

331
1,043
(952)

0

0

(387)
1,895

422
4,040

1,631

3,630

264

409

(3) Consolidated statement of changes in equity
Previous fiscal year (April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity
Share capital Capital surplus
Balance at beginning of period

8,827

2,440

Retainedearnings

TreasurysharesTotalshareholders’equity28,101(1,614)37,754

Changes during period
Dividends of surplus

(707)

(707)

Profit attributable to ownersof parent

2,031

2,031

Purchase of treasury shares
Disposal of treasury shares(7)

Transfer of loss on disposalof treasury shares
Purchase of shares of
consolidated subsidiaries

7

(0)

(0)

31

23

(7)

–

(0)

(0)

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

–

(0)

1,316

31

1,347

8,827

2,440

29,417(1,582)

39,101

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
availablefor-salesecurities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

2,943

1,882

(407)

Total
Remeasureaccumulated
ments ofother
defined benefit
comprehenplans
sive income
5,896

10,314

Shareacquisitionrights241

Noncontrolling Total net assetsinterests

2,554

50,865

Changes during period
Dividends of surplus(707)

Profit attributable to ownersof parent

2,031

Purchase of treasury shares(0)

Disposal of treasury shares

23

Transfer of loss on disposalof treasury shares
Purchase of shares of
consolidated subsidiaries
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

–
(0)
84

404

(889)

(400)

2

177

(220)

84

–

404

(889)

(400)

2

177

1,126

3,027

1,882

(2)

5,006

9,913

243

2,732

51,991- 11 -

Current fiscal year (April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity
Share capital Capital surplus
Balance at beginning of period

8,827

2,440

Retainedearnings

TreasurysharesTotalshareholders’equity29,417(1,582)

39,101

Changes during period
Dividends of surplus

(708)

(708)

Profit attributable to ownersof parent

3,458

3,458

Purchase of treasury shares
Disposal of treasury shares(24)

Transfer of loss on disposalof treasury shares
Reversal of revaluation
reserve for land

24

(0)

(0)

120

95

(24)

–

165

165

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

–

–

2,889

120

3,010

8,827

2,440

32,307(1,462)

42,112

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
availablefor-salesecurities

Revaluation
reserve for
land

3,027

1,882

Foreigncurrencytranslation
adjustment
(2)

Total
Remeasureaccumulated
ments ofother
defined benefit
comprehenplans
sive income
5,006

9,913

Share
acquisitionrights243

Noncontrolling Total net assetsinterests

2,732

51,991

Changes during period
Dividends of surplus(708)

Profit attributable to ownersof parent

3,458

Purchase of treasury shares(0)

Disposal of treasury shares

95

Transfer of loss on disposalof treasury shares
Reversal of revaluation
reserve for land
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

–
(165)
331

(165)

–

793

(952)

172

(79)

280

373

331

(165)

793

(952)

7

(79)

280

3,218

3,359

1,717

790

4,053

9,921

164

3,012

55,210- 12 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Business restructuring expenses
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 sale of non-current assets
Loss (gain) on disposal of non-current assets
Loss (gain) on sale of investment securities
Impairment losses
Company funeral expenses
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
Payments of company funeral 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
Other, net
Net cash provided by (used in) investing activities- 13 -

Fiscal year ended
March 31, 2023

3,611
2,545
30

4,912
2,395
–

12

(1)

(2,054)1(2,094)
(154)

–

(8)

(36)
(227)
65
(107)

(15)
(245)
71
(8)

2

(1)

(240)
116
(82)
17
–
(593)
(1,191)
1,608
94
3,567
229
(65)
(45)
–
337
(659)
3,364

(738)
59
(16)
71
24
(2,693)
(660)
684
179
1,761
245
(71)
(24)
(24)
190
(793)
1,282

(328)
294
(1,302)
298

(513)
328
(2,926)
1,802

(125)

(41)

(65)
(13)
265
10
(966)

(195)
(11)
102
6
(1,449)(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Repayments of lease liabilities
Dividends paid
Dividends paid to non-controlling interests
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- 14 -

Fiscal year ended
March 31, 2023

(1,050)
–
(600)
(0)
(394)
(707)
(74)

1,250
100
(600)
(0)
(386)
(708)
(129)

(13)

–

–
(2,841)

0
(473)

186

502

(257)
6,736
6,479

(138)
6,479
6,340

(5) Notes on consolidated financial statements(Notes on the premise of a going concern)
Not applicable.
(Segment information, etc.)[Segment information]
1. Overview of reportable segments
The Company’s reportable segments are components of the Company for which separate financial
information is available and for which the Board of Directors conducts periodic review todetermine the allocation of management resources and evaluate operating results.
The Company has established a domestic coatings business division and an Overseas Operations
Division at its head office. Each formulates comprehensive strategies and develops businessactivities regarding the products and services of the domestic and overseas coatings businesscompanies, respectively. In addition, domestic consolidated subsidiaries are engaged in the lighting
business and the fluorescent color material business.
Therefore, the Group has four reportable segments: the domestic coatings business, the overseas
coatings business, the lighting business, and the fluorescent color material business.
The domestic coatings business manufactures and sells coatings in Japan. The overseas coatingsbusiness manufactures and sells coatings mainly in Asia and North and Central America. The
lighting business includes the manufacture and sale of various types of lighting equipment as well
as store construction. The fluorescent color material business manufactures and sells fluorescentpigments and special coating materials.
2. Calculation methods of net sales, profit or loss, assets, and other items by reportable segment
The accounting treatment of our reported business segments is in accordance with the accounting
principles and procedures employed in the preparation of our consolidated financial statements.
Profit by reportable segment is based on operating profit.
Intersegment transactions are between consolidated companies, and are based on market prices andother factors.

- 15 -

3. Information on net sales, profits or losses, and other items by reportable segment
Previous fiscal year (April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable segments
Domestic
coatings
Net sales
Net sales to external customers
Intersegment internal net sales
or transfers
Total

Overseascoatings

Fluorescentcolor materials

Lighting

Total

49,622

6,939

7,656

1,223

65,441

1,028

1

84

87

1,202

50,650

6,940

7,740

1,311

66,643

Segment profit

1,990

236

577

46

2,850

Segment assets

68,22011,87013,0691,242

94,403

1,850

364

239

61

2,516

–

0

–

–

0

1,159

522

199

35

1,917

Amount ofadjustment2, 4

Amountrecorded inconsolidated
financialstatements3

Other items
Depreciation
Amount of investment in equity
method affiliate
Increase in property, plant andequipment and intangible assets

Other1

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

Total

1,507

66,948–66,948

2,374

3,577

(3,577)–
66,9483,881

70,525(3,577)

Segment profit

114

2,965

218

3,183

Segment assets

2,580

96,984(9,278)87,705

28

2,545

–

2,545

31

32

–

32

55

1,972

–

1,972

Other items
Depreciation
Amount of investment in equity
method affiliate
Increase in property, plant andequipment and intangible assets(Notes) 1.
2.
3.
4.

“Other” refers to business segments not included in the reportable segments, such as thepainting business and logistics business.
The adjustment of segment profit of ¥218 million refers to the elimination of intersegment
transactions.
Segment profit is adjusted to be consistent with operating profit shown on the consolidated
financial statements.
The adjustment of segment assets of minus ¥9,278 million refers to the elimination ofintersegment transactions.

- 16 -

Current fiscal year (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable segments
Domestic
coatings
Net sales
Net sales to external customers
Intersegment internal net sales
or transfers
Total

Overseascoatings

Fluorescentcolor materials

Lighting

Total

53,250

8,066

8,557

1,154

71,028

1,255

6

69

110

1,443

54,506

8,072

8,627

1,264

72,471

Segment profit

1,986

203

1,285

71

3,547

Segment assets

70,852

12,65914,0801,283

98,875

1,592

464

262

49

2,368

–

1

–

–

1

1,666

153

1,069

52

2,941

Amount ofadjustment2, 4

Amountrecorded inconsolidated
financialstatements3

Other items
Depreciation
Amount of investment in equity
method affiliate
Increase in property, plant andequipment and intangible assets

Other1

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

Total

1,820

72,849–72,849

2,354

3,798

(3,798)–4,175

76,647(3,798)72,849Segment profit

159

3,707

238

3,946

Segment assets

2,682

101,558(8,753)92,805

27

2,395

–

2,395

32

34

–

34

20

2,961

–

2,961

Other items
Depreciation
Amount of investment in equity
method affiliate
Increase in property, plant andequipment and intangible assets(Notes) 1.
2.
3.
4.

“Other” refers to business segments not included in the reportable segments, such as thepainting business and logistics business.
The adjustment of segment profit of ¥238 million refers to the elimination of intersegment
transactions.
Segment profit is adjusted to be consistent with operating profit shown on the consolidated
financial statements.
The adjustment of segment assets of minus ¥8,753 million refers to the elimination ofintersegment transactions.

- 17 -

[Related information]
Previous fiscal year (April 1, 2021 to March 31, 2022)
1. Information by product and service
This information has been omitted because the segmentation of products and services is the same as
the reportable segments.
2. Information by region(1) Net sales(Millions of yen)Japan
59,483

Other
7,465

Total
66,948(2) Property, plant and equipment(Millions of yen)Japan
21,679

Other
3,911

Total
25,591

3. Information by major customer(Millions of yen)

Customer name

Net sales

Mitsubishi Shoji Chemical Corporation

12,726

Name of related segment(s)Domestic coatings
Fluorescent color materials
Other

Current fiscal year (April 1, 2022 to March 31, 2023)
1. Information by product and service
This information has been omitted because the segmentation of products and services is the same as
the reportable segments.
2. Information by region(1) Net sales(Millions of yen)Japan
64,036

Other
8,812

Total
72,849(2) Property, plant and equipment(Millions of yen)Japan
21,368

Other
4,177

Total
25,545

3. Information by major customer
Information by a major customer is omitted because among net sales to external customers, net sales
to a certain customer account for less than 10% of net sales in the consolidated statements of income.

- 18 -

[Information on impairment losses of non-current assets by reportable segment]
Previous fiscal year (April 1, 2021 to March 31, 2022)(Millions of yen)

Impairment
lossesDomestic
coatings

Overseascoatings

Lighting

Fluorescentcolormaterials

Other

Corporate/Elimination

Total

17

–

–

–

–

–

17

Current fiscal year (April 1, 2022 to March 31, 2023)(Millions of yen)

Impairment
lossesDomestic
coatings

Overseascoatings

Lighting

Fluorescentcolormaterials

71

–

–

–

Other

Corporate/Elimination

Total

–

–

71

[Information on amortization and unamortized balance of goodwill by reportable segment]
Previous fiscal year (April 1, 2021 to March 31, 2022)
Not applicable.
Current fiscal year (April 1, 2022 to March 31, 2023)
Not applicable.
[Information on gain on negative goodwill by reportable segment]
Previous fiscal year (April 1, 2021 to March 31, 2022)
Not applicable.
Current fiscal year (April 1, 2022 to March 31, 2023)
Not applicable.
(Changes in important subsidiaries during the period)
During the first quarter of the fiscal year ended March 31, 2023, 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 the Company excluded the dissolved company BO Chemical Co., Ltd.
from the scope of consolidation.

- 19 -

(Per share information)
Previous fiscal year
(April 1, 2021 to March 31, 2022)(Yen)
Current fiscal year
(April 1, 2022 to March 31, 2023)

Net assets per share

1,730.00

1,829.75

Earnings per share

71.74

121.78

Diluted earnings per share

71.10

120.92(Note)The basis for calculating earnings per share and diluted earnings per share is as follows.
Previous fiscal year
(April 1, 2021 to March 31, 2022)

Current fiscal year
(April 1, 2022 to March 31, 2023)

Profit attributable to owners of parent(millions of yen)

2,031

3,458

Amount not attributable to commonshareholders (millions of yen)––

Profit attributable to owners of parent
related to common shares (millionsof yen)

2,031

3,458

Average number of common shares
during the period (thousands ofshares)28,32228,395––

Increase in common shares(thousands of shares)

252

202

(execution of share acquisition rights[thousands of shares])

(252)

(202)

Summary of latent shares notincluded in the calculation of diluted
earnings per share due to the absenceof dilutive effects––

Earnings per share

Diluted earnings per share
Adjustment to profit attributable toowners of parent (millions of yen)

(Significant subsequent events)
Not applicable.

- 20 -

5. Non-consolidated Financial Statements and Major Notes(1) Balance sheet(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Short-term loans receivable
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Leased assets
Construction in progress
Total property, plant and equipment
Intangible assets
Leasehold interests in land
SoftwareLeased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Prepaid pension costs
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 21 -

As of March 31, 2023

341
3,331
6,337
2,671
419
1,082
1,073
3,602
294
(4)
19,149

277
5,483
6,420
2,748
458
1,137
1,311
3,903
313
(3)
22,050

3,292
329
1,131
3
602
8,872
837
13
15,084

3,283
257
968
2
637
7,786
612
58
13,605

64
85
119
44
313

64
61
74
167
367

7,043
13,080
2,482
9,773
282
(12)
32,64948,047
67,196

7,390
13,0802,561
11,706232(9)34,962
48,93470,985

(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Accounts payable - otherAccrued expenses
Income taxes payable
Deposits received
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
Provision for retirement benefits
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for contribution to society
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Revaluation reserve for land
Total valuation and translation adjustments
Share acquisition rights
Total net assets
Total liabilities and net assets- 22 -

As of March 31, 2023

2,031
11,945
2,450
600
258
750
684
83
7,873

2,279
12,757
3,700
600
253
920
678
133
7,456

19

12

366
113
27,177

175
164
29,132

1,200
859
3,211
1,303
98
20
6,693
33,870

700
605
3,858
1,189
84
17
6,456
35,588

8,827

8,827

2,443
2,443

2,443
2,443

780

780

106
17,633
18,520(1,582)
28,208104
19,532
20,417(1,462)30,225

2,991
1,882
4,874
243
33,326
67,196

3,288
1,717
5,006
164
35,39670,985

(2) Statement of income(Millions of yen)
Fiscal year ended
March 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income from real estate
Outsourcing service income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of trade receivables
Provision for product warranties
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Company funeral expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit- 23 -

Fiscal year ended
March 31, 2023

39,84929,288
10,561
9,735
825

43,26932,747
10,521
9,628
893

45
712
234
296
272
1,561

55
932
235
270
174
1,669

86
32
105
81
305
2,082

85
25
–
53
165
2,396

100
30
4
135

743
16
–
759

76
0
–
0
77
2,140
21
614
635
1,504

39
71
24
0
136
3,020
153
402
555
2,464

(3) Statement of changes in equity
Previous fiscal year (April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity
Capital surplus
SharecapitalRetained earnings
Other retained earnings

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

2,443

–

2,443

780

Total
retainedearnings

TreasurysharesTotalshareholders’ equity(1,614)

27,388Reservefor contribution tosociety

Retainedearnings
brought
forward109

16,841

17,731

(2)

2

–

–

Dividends of surplus

(707)

(707)

(707)

Profit

1,504

1,504

1,504

Balance at beginning of period

8,827

Changes during period
Reversal of reserve forcontribution to society

Purchase of treasury shares
Disposal of treasury shares

(7)

(7)

Transfer of loss on disposal oftreasury shares

7

7

(7)

(7)

(0)

(0)

31

23
–

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

–

–

–

–

–

(2)

791

789

31

820

8,827

2,443

–

2,443

780

106

17,633

18,520(1,582)

28,208Valuation and translation adjustments

Balance at beginning of period

Valuationdifferenceonavailablefor-salesecurities

Revaluation
reserve for
land

Total
valuationandtranslation
adjustments

ShareacquisitionrightsTotal net
assets

2,863

1,882

4,746

241

32,375

Changes during period
Reversal of reserve forcontribution to society–

Dividends of surplus(707)

Profit

1,504

Purchase of treasury shares(0)

Disposal of treasury shares

23

Transfer of loss on disposal oftreasury shares–

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

128

128

2

130

128

–

128

2

951

2,991

1,882

4,874

243

33,326- 24 -

Current fiscal year (April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity
Capital surplus
SharecapitalRetained earnings
Other retained earnings

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

2,443

–

2,443

780

Total
retainedearnings

TreasurysharesTotalshareholders’ equity(1,582)

28,208Reservefor contribution tosociety

Retainedearnings
brought
forward106

17,633

18,520

(2)

2

–

–

Dividends of surplus

(708)

(708)

(708)

Profit

2,464

2,464

2,464

Balance at beginning of period

8,827

Changes during period
Reversal of reserve forcontribution to society

Purchase of treasury shares
Disposal of treasury shares
Transfer of loss on disposal oftreasury shares
Reversal of revaluation
reserve for land

(24)

(24)

24

24

(0)

(0)

120

95

(24)

(24)

–

165

165

165

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

–

–

–

–

–

(2)

1,898

1,896

120

2,017

8,827

2,443

–

2,443

780

104

19,532

20,417(1,462)30,225

Valuation and translation adjustments

Balance at beginning of period

Valuationdifferenceonavailablefor-salesecurities

Revaluation
reserve for
land

Total
valuationandtranslation
adjustments

ShareacquisitionrightsTotal net
assets

2,991

1,882

4,874

243

33,326

Changes during period
Reversal of reserve forcontribution to society–

Dividends of surplus(708)

Profit2,464

Purchase of treasury shares(0)

Disposal of treasury shares

95

Transfer of loss on disposal oftreasury shares
Reversal of revaluation
reserve for land
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

–
(165)
296

(165)

–

296

(79)

217

296

(165)

131

(79)

2,069

3,288

1,717

5,006

164

35,396- 25 -

6. Other
Change of Officers (Effective June 29, 2023)[Change of representative]
Not applicable.
[Change of other officers]
Candidates for New Directors
Director
Akihiro Miyake[Current Executive Officer, General
Manager of Production Division]- 26 -