Disclaimer: This document is an English translation of the original document in Japanese and has been
prepared solely for reference purposes. In the event of any discrepancy between this English
translation and the original in Japanese, the original shall prevail in all respects.

Consolidated Financial Results
for the Nine Months Ended December 31, 2022
[Under Japanese GAAP]
February 10, 2023
Company name: STELLA CHEMIFA CORPORATION
Listing: Tokyo Stock Exchange
Securities code: 4109
URL: https://www.stella-chemifa.co.jp
Representative: Aki Hashimoto, Representative Director, President and Chief Executive Officer
Inquiries: Yasuhiko Nakashima, Director, Executive Officer and General Manager, Accounting Department
Telephone: +81-6-4707-1512
Scheduled date to file quarterly securities report: February 13, 2023
Scheduled date to commence dividend payments: ―Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing: No(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2022 (April 1, 2022 - December 31,
2022)(1) Consolidated Operating Results (cumulative)(% indicates changes from the previous corresponding period.)
Profit attributable toSales revenue
Operating profit
Ordinary profit
owners of parent
Nine months ended Millions of yen% Millions of yen% Millions of yen% Millions of yen%
December 31, 2022
28,2704.2
3,068 (12.8)
3,750
(4.7)
1,658 (47.5)
December 31, 2021
27,124
8.8
3,520
21.3
3,936
42.4
3,159
59.9
(Note) Comprehensive income: For nine months ended December 31, 2022: ¥2,368million [(27.9)%]
For nine months ended December 31, 2021: ¥3,285million [97.4%]
Basic earnings
Diluted earnings
per shareper share
Nine months ended
Yen
Yen
December 31, 2022
134.42–
December 31, 2021
248.02–(2) Consolidated Financial Position
Total assets
Millions of yen

Net assets

Equity-to-asset ratio

Millions of yen

54,913As of December 31, 2022
42,92056,598
As of March 31, 2022
42,728(Reference) Equity: As of December 31, 2022: ¥42,603 million
As of March 31, 2022: ¥42,170 million
2. Cash Dividends
Annual dividends
First
SecondThird
quarter-end
quarter-end
quarter-end
Yen

Yen

Yen

Fiscal year ended
–
24.00
–
March 31, 2022
Fiscal year ending
–
30.00
–
March 31, 2023
Fiscal year ending
March 31, 2023
(Forecast)(Note) Revision to the forecast for dividends announced most recently: None

Net assets per share

%

Yen

77.6
74.5

3,546.05
3,369.93

Fiscalyear-end

Total
Yen

Yen

36.00

60.00

30.00

60.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31,
2023)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
to owners ofSales revenue
Operating profit
Ordinary profit
per share
parentMillions of yen% Millions of yen% Millions of yen% Millions of yen

Full year
35,600 (4.5)
3,750 (18.2)
4,300 (24.7)(Note) Revision to the financial results forecast announced most recently: Yes

2,000

%

(62.7)

Yen

163.13* Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
Newly included: – (Company name: –)Excluded: – (Company name: –)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to revisions to accounting standards and other regulations: None
2) Changes in accounting policies due to other reasons: None
3) Changes in accounting estimates: None
4) Restatement: None
(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022:
13,213,248 shares
As of March 31, 2022:
13,213,248 shares
2) Number of treasury shares at the end of the period
As of December 31, 2022:
As of March 31, 2022:

1,198,891 shares
699,457 shares

3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year):Nine months ended December 31, 2022:
12,341,012 shares
Nine months ended December 31, 2021:
12,739,620 shares* These quarterly consolidated financial results are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Explanation of the proper use of financial results forecast and other notes
The forward-looking statements in this document, including financial results forecasts, are based on the informationin current possession of the Company and the assumptions it believes are reasonable. They are not intended as theCompany’s promise to achieve them. Note also that actual financial results may differ significantly from them. For
the assumptions that form the basis of financial results forecasts and notes on their use, see “1. Qualitative Information
on Quarterly Financial Results for the Period under Review, (3) Explanation of Consolidated Financial Results
Forecast and Other Forward-Looking Information” on page 3 of the Attachments of quarterly consolidated financial
results.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results for the Period under Review ........................... 2(1) Explanation of Operating Results .................................................................................................... 2(2) Explanation of Financial Position .................................................................................................... 2(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information.............................................................................................................................................................. 3
2. Quarterly Consolidated Financial Statements and Principal Notes ...................................................... 4(1) Quarterly Consolidated Balance Sheet ............................................................................................. 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ................................... 6
Quarterly Consolidated Statement of Income
Nine Months Ended December 31 ................................................................................................ 6
Quarterly Consolidated Statement of Comprehensive Income
Nine Months Ended December 31 ................................................................................................ 7(3) Notes to Quarterly Consolidated Financial Statements .................................................................... 8(Notes on going concern assumption) ......................................................................................... 8(Notes on Significant Changes to Shareholders’ Equity) ............................................................ 8(Accounting methods adopted particularly for the preparation of quarterly consolidated
financial statements).................................................................................................................... 8(Segment information, etc.) ......................................................................................................... 9

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
The Japanese economy is expected to return to having full-blown economic activities for the nine months ended
December 31, 2022, with eased COVID-19 restrictions. The outlook, however, still remains uncertain due to theprolonged Russia-Ukraine conflict and the impact of factors, including the sharp rise in resources and energy
prices, as well as higher prices in general, provoked by the weakening of the yen in the foreign exchange market.
In this environment, the Group continued to supply a diverse range of fluoride products in line with theneeds of customers mainly in the information and communication industry in Japan and overseas, as well as
developing the chemical product distribution business based on the unique know-how acquired in thetransportation of special cargo.
In regard to the performance for the nine months ended December 31, 2022, while the shipment volume
remained on a similar level as the same period of the previous fiscal year in the Semiconductors, the Company
made efforts to pass through the sharp rise in prices of raw materials. As a result, sales revenue increased to28,270 millions of yen (up 4.2% year on year).
In terms of profits, operating profit amounted to 3,068 millions of yen (down 12.8% year on year), as theimpact of supply and demand in the Chinese market and the weakening yen led to a significant year-on-yearincrease in the price of anhydrous hydrofluoric acid, a key raw material. Ordinary profit amounted to 3,750
millions of yen (down 4.7% year on year) due to a decline in operating profit, despite recording share of profit
of entities accounted for using equity method with the robust operating results of the Quzhou BDX New
Chemical Materials Co., Ltd., an equity method affiliate. Moreover, while recording gain on sale of investment
securities as extraordinary income due to sale of an unlisted security, impairment loss in property, plant andequipment (construction in progress), which is held for the purpose of raising the production, was recorded as
extraordinary losses regarding additives for lithium-ion secondary batteries in the High-purity Chemical
Business. As a result, profit attributable to owners of parent amounted to 1,658 millions of yen (down 47.5%
year on year).
(2) Explanation of Financial Position(Assets)
Current assets at the end of the third quarter of the fiscal year under review decreased by 1,635 millions of yen(5.3%) from the end of the previous fiscal year to 28,945 millions of yen. The main reasons for this decline
included a decrease of 1,141 millions of yen in cash and deposits. Non-current assets decreased by 48 millionsof yen (0.2%) from the end of the previous fiscal year to 25,968 millions of yen. The main reasons for this decline
included a decrease of 23 millions of yen in property, plant and equipment.
Consequently, total assets at the end of the third quarter of the fiscal year under review decreased by 1,684
millions of yen from the end of the previous fiscal year to 54,913 millions of yen.
(Liabilities)
Current liabilities at the end of the third quarter of the fiscal year under review decreased by 1,428 millions ofyen (14.6%) from the end of the previous fiscal year to 8,375 millions of yen. The main reason for this decline
included a decrease of 1,221 millions of yen in income taxes payable. Non-current liabilities decreased by 447
millions of yen (11.0%) from the end of the previous fiscal year to 3,617 millions of yen. The main reason forthis decline included a decrease of 733 millions of yen in long-term borrowings.
Consequently, total liabilities at the end of the third quarter of the fiscal year under review decreased by
1,876 millions of yen from the end of the previous fiscal year to 11,993 millions of yen.
(Net assets)
Total net assets at the end of the third quarter of the fiscal year under review amounted to 42,920 millions of yen,
an increase of 192 millions of yen from the end of the previous fiscal year. The main reason for this growth
included an increase of 832 millions of yen in retained earnings.
2

Consequently, the equity-to-asset ratio was 77.6% (74.5% at the end of the previous fiscal year).

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information
Considering recent financial results, the consolidated financial results forecasts for the fiscal year ending March
31, 2023 announced on May 10, 2022 have been revised.
For details, please refer to “Recording of Impairment Loss and Revisions to Financial Results Forecasts for
the Fiscal Year” released on February 10, 2023.
Moreover, financial results forecasts are based on the information currently available on the day ofannouncement for this document. Actual financial results may differ from the numbers in the forecasts due tovarious factors in the future.

3

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically 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, net
Machinery, equipment and vehicles, net
Land
Leased assets
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Other
Total investments and other assets
Total non-current assets
Total assets

4

As of December 31, 2022

15,895
8,577
65
2,175
1,510
1,584
789
(17)
30,581

14,754
8,504
45
2,081
1,566
1,572
437
(16)
28,945

6,535
4,772
5,467
132
3,147
1,611
21,667

6,179
4,285
5,467
164
3,906
1,641
21,644

375
375

293
293

3,973
3,973
26,01656,5984,030
4,030
25,96854,913

(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Electronically recorded obligations facilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provision for retirement benefits for directors (andother officers)
Provision for share awards
Asset retirement obligations
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
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5

As of December 31, 2022

1,743
876
1,920
1,494
1,370
379

1,773
943
1,950
1,095
149
190

55

31

401
1,563
9,804

390
1,852
8,375

2,003
956

1,269
959

31

33

99
645
329
4,065
13,869

115
684
554
3,617
11,993

4,829
8,793
29,450(1,642)
41,4304,829
8,793
30,282(2,991)
40,914

50
46
643
739
49
508
42,72856,598

29
－
1,659
1,689
48
268
42,92054,913

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income
Nine Months Ended December 31(Millions of yen)

Sales revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Share of profit of entities accounted for using equity
methodSubsidy income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share issuance costs
Depreciation

For the nine months ended
December 31, 2021
27,124
20,407
6,717
3,196
3,520

For the nine months ended
December 31, 2022
28,27022,252
6,017
2,949
3,068

382

561

37
19
67
506

28
279
78
947

22
37
6
－
25
91
3,936

21
－
－
240
4
266
3,750

15
259
－
275

9
－
1,258
1,267

49
－
－
49
4,162
1,308
2,853
(306)
3,159

454
0
1,926
2,380
2,636
1,283
1,353
(305)
1,658

Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of shares of subsidiaries and associates
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on sale of non-current assets
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6

Quarterly Consolidated Statement of Comprehensive Income
Nine Months Ended December 31(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
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

For the nine months ended
December 31, 2021
2,853

For the nine months ended
December 31, 2022
1,353

10
43
350

(20)
(46)
867

27

213

431
3,285

1,014
2,368

3,551

2,608

(266)

(239)

7

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes on Significant Changes to Shareholders’ Equity)
Not applicable.
(Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements)(Calculation of tax expenses)
The Company has calculated tax expenses by reasonably estimating the effective tax rate after the application oftax effect accounting to profit before income taxes for the fiscal year including the third quarter of the fiscal year
under review and multiplying profit before income taxes by the estimated effective tax rate.

8

(Segment information, etc.)[Segment information]
I. For the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
1. Information on sales revenue and profit or loss by reportable segment
Reportable segment
High-purity
ChemicalSales revenue
Sales revenue tooutside customers
Inter-segment sales
revenue or transfers
Total
Segment profit (loss)

Transportation

Medical

Total(Millions of yen)

Other
(Note)

Total

23,3993,515

84

27,000124

27,124

250

2,277

–

2,528

165

2,693

23,650
3,658

5,793
606

84
(511)

29,529
3,754

289
13

29,8183,767(Note) The “Other” category is for non-reportable business segments, including insurance agency business andautomobile maintenance business.

2. Difference between the total amount of reportable segment profit or loss and the amount in the quarterly
consolidated statement of income and main details of this difference (matters relating to difference adjustments)(Millions of yen)
ProfitAmountReportable segment total

3,754

Profit in “Other” category

13

Inter-segment elimination(246)

Operating profit in the quarterly consolidated
statement of income

3,520

3. Matters relating to changes in reportable segments, etc.
Not applicable.
4. Information on impairment losses on non-current assets or goodwill, etc. by reportable segment
Not applicable.

9II. For the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)
1. Information on sales revenue and profit or loss by reportable segment

High-purity Chemical
Sales revenue
Sales revenue tooutside customers
Inter-segment sales
revenue or transfers
Total
Segment profit

Reportable segment
Transportation

Total(Millions of yen)

Other
(Note)

Total

24,7003,453

28,153116

28,270

0

2,561

2,561

176

2,738

24,700
2,619

6,014
441

30,714
3,060

293
16

31,0083,077(Note) The “Other” category is for non-reportable business segments, including insurance agency business andautomobile maintenance business.

2. Difference between the total amount of reportable segment profit or loss and the amount in the quarterly
consolidated statement of income and main details of this difference (matters relating to difference adjustments)(Millions of yen)
ProfitAmountReportable segment total

3,060

Profit in “Other” category

16

Inter-segment elimination(8)

Operating profit in the quarterly consolidated
statement of income

3,068

3. Matters relating to changes in reportable segments, etc.
In the previous fiscal year, the Company sold part of its shares in Stella Pharma Corporation, which became an
equity method affiliate from a consolidated subsidiary. Accordingly, the “Medical” category has been excluded
from reportable segments from the first quarter of the fiscal year.
4. Information on impairment losses on non-current assets or goodwill, etc. by reportable segment(Significant impairment losses on non-current assets)
In the High-purity Chemical segment, impairment loss in property, plant and equipment (construction inprogress), which is held for the purpose of raising the production, was recorded as extraordinary losses regarding
additives for lithium-ion secondary batteries, as a result of revising future business plans. The amount recorded
as impairment loss for the nine months ended December 31, 2022 was 1,926 millions of yen.

10