Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2023
(Based on Japanese GAAP)May 12, 2023
Company name:NIPPON CARBIDE INDUSTRIES CO.,INC.

Stock exchange listing: Tokyo
Stock code:
4064
Representative:

Inquiries:

URL

https://www.carbide.co.jp/President
Director

Takahisa Sugiyama

Executive Officer
General ManagerYuichi Yokota

Corporate Planning Department
Scheduled date of ordinary general meeting of shareholders:June 29, 2023

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 29, 2023
June 30, 2023

Preparation of supplementary material on financial results:
Holding of financial results meeting:

YesNo

TEL03-5462-8224(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(6.4)
1,261(60.5)
1,902(53.1)
332(82.8)
11.3
3,192
33.7
4,055
42.2
1,930
(19.8)Net salesYear ended March 31, 2023
Year ended March 31, 2022

Millions of yen
44,00847,003

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–1.1
3.0
2.9
211.10
6.7
6.3
6.8

Diluted earnings per
shareEarnings per share
Yen
35.37
211.49Year ended March 31, 2023
Year ended March 31, 2022
(2) Consolidated financial position

Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
61,83864,546

Millions of yen
33,08632,049Cash flows fromoperating activities
Millions of yen
3,606
4,297

Cash flows frominvesting activities
Millions of yen(2,147)(2,360)Net assets per share%
50.5
47.0

Yen
3,322.62
3,229.86(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(3,215)
9,821(4,210)10,838

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

25.00
30.00

––

30.00
35.00

55.0065.00

510
610

26.0
183.8

1.7
2.0

–

30.00

–

35.00

65.00

143.6

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Net sales
Millions of yen
Six months ending
September 30, 2023
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

22,500(3.5)

300(71.9)300(82.8)

250(81.7)

26.61

48,500

10.2

1,500

18.91,600(15.9)

1,400

321.3

149.004. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

9,406,826 shares As of March 31, 2022

9,394,029 shares

7,168 shares As of March 31, 2022

7,081 shares

Number of treasury shares at the end of the period
As of March 31, 2023
Average number of shares during the period
Year ended March 31, 2023

9,395,762 shares Year ended March 31, 2022

29,126,987 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

11,376
14,773

10,906
12,211

Merchandise and finished goods
Work in process

4,341
1,743

5,017
1,884

Raw materials and supplies
Other

3,088
1,337

3,053
738

Allowance for doubtful accounts

(72)

(165)

36,58833,645

21,621

21,548

Accumulated depreciation(14,701)(15,107)

Buildings and structures, net

6,919

6,441

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

32,23533,899

Accumulated depreciation(28,500)(30,049)

3,734

3,850

Tools, furniture and fixtures

Machinery, equipment and vehicles, net

6,680

7,010

Accumulated depreciation(5,597)(6,009)Tools, furniture and fixtures, net

1,083

1,001

Land

11,414

10,707

Leased assets
Accumulated depreciation

1,467
(950)

1,528
(1,088)517

440

Leased assets, net
Construction in progress

1,150

3,144

Total property, plant and equipment

24,82025,585Intangible assets

776

708

Investments and other assetsInvestment securities

1,520

926

Deferred tax assets
Other571
338

698
342

Allowance for doubtful accounts

(69)

(69)

Total investments and other assets

2,360

1,898

27,95728,19264,546

61,838

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)

7,464

5,912

6,871
584

6,466
409

585
35

612
31Other

3,048

3,436

Total current liabilities

18,591

16,869

7,098
3,634

4,994
3,715

35

18

Deferred tax liabilities for land revaluation
Other

2,636
500

2,411
742

Total non-current liabilities

13,905

11,88232,49628,751

Shareholders' equity
Share capital

7,780

7,789

Capital surplus
Retained earnings

3,150
12,627

3,103
12,909Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provision for retirement benefits for directors (and otherofficers)

Total liabilities
Net assets

Treasury shares
Total shareholders' equity

(12)

(12)

23,54623,789

303
0177
(0)

5,856
828

5,342
2,146

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(215)

(224)

Total accumulated other comprehensive income

6,772

7,441

Non-controlling interests

1,731

1,854

Total net assets

32,04933,08664,546

61,838

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales

47,00344,008

Cost of sales

32,85931,394Gross profit

14,144

12,614

Selling, general and administrative expenses

10,951

11,352

Operating profit

3,192

1,261

Non-operating income
Interest income

100141Dividend income
Share of profit of entities accounted for using equity method

6125599Foreign exchange gains
Other681
306

448
253

1,175911

Total non-operating income
Non-operating expenses
Interest expenses

114

80

Rental costs
Electricity sale expenses

72
68

5069

Other5769

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities

312

270

4,055

1,902–

75

Gain on liquidation of subsidiaries and associates–

76

Total extraordinary income–

151

Loss on retirement of non-current assets
Loss on sale of investment securities

165
3627–

Loss on valuation of investment securities
Impairment losses

–763

61744

Loss on withdrawal from business

462

–

1,428

832

Extraordinary lossesTotal extraordinary losses
Profit before income taxes

2,627

1,221

Income taxes - current

919

621

Income taxes for prior periods
Income taxes - deferred–(412)177
15

Total income taxes

506

815

2,120406

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5189

73

1,930

332

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
2,120406

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(41)
1(105)(0)Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

1,349(7)

1,388
(5)

Total other comprehensive income

1,301

1,276

3,421

1,682

3,204

1,514

216

167

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

7,407

Retained earnings

2,778

10,873Cumulative effects of changes inaccounting policies

Total shareholders'equityTreasury shares(12)

21,047

4

Restated balance

7,407

2,778

372

372

4

10,878(12)

21,052

Changes during period
Issuance of new shares

744

Dividends of surplus

(580)

(580)

Profit attributable to owners ofparent

1,930

1,930

399

399

Reversal of revaluation reserve for
land
Purchase of treasury shares

(0)

(0)

Net changes in items other thanshareholders' equity–

Total changes during period
Balance at end of period

372

372

1,749

(0)

2,493

7,780

3,150

12,627(12)

23,546

Share
Nonacquisition controllingrightsinterests

Total net
assets

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges341(1)

Revaluation
reserve forland

6,255

Total

Foreigncurrencytranslation
adjustment

Remeasurements

accumulatedof defined benefit

otherplanscomprehensive(491)(206)

income5,897

2

Cumulative effects of changes inaccounting policies
Restated balance341(1)

6,255

(491)

(206)

5,897

2

1,553

28,500

7

11

1,560

28,512

Changes during period
Issuance of new shares

744

Dividends of surplus(580)

Profit attributable to owners ofparent

1,930

Reversal of revaluation reserve for
land

399

Purchase of treasury shares(0)

Net changes in items other thanshareholders' equity(38)

1(399)

1,319

(8)

874

(2)

170

1,042

Total changes during period(38)1(399)

1,319

(8)

874

(2)

170

3,536

Balance at end of period

303

0

5,856

828

(215)

6,772

–

1,731

32,0497Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

7,780

3,150

88

Total shareholders'equity

Treasury shares

12,627(12)

23,546

Changes during period
Issuance of new shares

17

Dividends of surplus

(563)

(563)

Profit attributable to owners ofparent

332

332

Reversal of revaluation reserve for
land

513

513

Purchase of treasury shares(0)

Decrease (increase) of capitalsurplus by change of share toconsolidated subsidiary(0)(55)(55)

Net changes in items other thanshareholders' equity–

Total changes during period
Balance at end of period

8(47)

282

(0)

243

7,789

3,103

12,909(12)

23,789

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at beginning of period

303

Deferred
gains orlosses onhedges

Revaluation
reserve forland
0

5,856

Foreigncurrencytranslation
adjustment
828

Total
Remeasurements

accumulatedof definedotherbenefit planscomprehensive

Noncontrollinginterests

Total net
assets

1,731

32,049income(215)

6,772Changes during period
Issuance of new shares

17

Dividends of surplus(563)

Profit attributable to owners ofparent

332

Reversal of revaluation reserve forland

513

Purchase of treasury shares(0)

Decrease (increase) of capitalsurplus by change of share toconsolidated subsidiary(55)

Net changes in items other thanshareholders' equity

(125)

(0)

(513)

1,318

Total changes during period(125)

Balance at end of period

177

(0)

(513)

1,318

(8)

669

123

1,036(0)5,342

2,146(224)

7,441

1,854

33,0868(8)669123793

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
2,627

1,221

2,068
763

1,991
744

48

4(12)

(16)

23

210(4)

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income3(161)

87(200)Interest expenses
Foreign exchange losses (gains)

114(176)

80(180)Share of loss (profit) of entities accounted for using equity
method(25)(9)

Loss on retirement of non-current assetsLoss (gain) on valuation of investment securities

165
–2761

Loss (gain) on sale of investment securities
Loss on withdrawal from business

36462

(75)
–Decrease (increase) in trade receivables
Decrease (increase) in inventories

146(1,088)

2,906
(278)

Increase (decrease) in trade payables
Other, net

1,146(1,147)(1,837)(90)

Subtotal

4,995

4,455

Interest and dividends received
Interest paid

174
(114)

212
(79)

Income taxes paid

(758)

(981)

Net cash provided by (used in) operating activities

4,297

3,606(433)548(835)
363(2,541)
3(2,143)
64

Purchase of investment securities
Proceeds from sale of investment securities

(3)
118

(0)
439

Loan advances
Proceeds from collection of loans receivable

(4)
4(1)
3

Depreciation
Impairment losses
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)

Cash flows from investing activities
Payments into time depositsProceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

Other, net
Net cash provided by (used in) investing activities

9(52)

(38)

(2,360)(2,147)

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
(4,502)419

3,900(3,623)

1,100(4,027)

Dividends paid
Repayments of lease liabilities

(580)
(91)

(563)
(75)

Proceeds from issuance of shares resulting from exercise ofshare acquisition rights

742–

Proceeds from long-term borrowings
Repayments of long-term borrowings

Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(54)

(68)

(4,210)(3,215)709

740

Net increase (decrease) in cash and cash equivalents(1,563)(1,016)

Cash and cash equivalents at beginning of period

12,402

10,838Cash and cash equivalents at end of period

10,8389,82110