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.

Summary of Consolidated Financial Results for the First Quarter of Fiscal Year 2022 Ending March 31, 2023
<Under Japanese GAAP>
August 2, 2022

Company Name:
Stock Listings:
Code Number:
URL:
Representative Director:
Inquiries:

SEKISUI KASEI CO., LTD.
Tokyo Stock Exchange4228
https://www.sekisuikasei.com
Mr. Masato Kashiwabara, President
Mr. Katsumi Sasaki, Senior Managing Executive Officer
Head of Corporate Strategic Headquarters+81-3- 3347-9618
August 10, 2022
No
No

TEL:
Scheduled date for submission of quarterly financial statement:
Quarterly earnings supplementary explanatory documents:
Quarterly earnings results briefing:(Figures rounded down to the nearest million yen)
1. Consolidated Business Results for the First Quarter (April 1, 2022 to June 30, 2022)(1) Consolidated Business Results(% figures represent changes from the same period of the previous year.)
Net Income
Net Sales
Operating Income
Ordinary Income
Attributable to
Owners of the Parent
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

1st Q of FY 2022
28,441
(0.5)
(658)
(320)
1st Q of FY 2021
28,583
182)
185.9
251)
Note. Comprehensive Income: 1st Q of FY2022: (420) million yen [ - %] 1st Q of FY2021: (1,157) million yen [ - %]

%

(569)
120)

-

Net Income
Net Income
Attributable toAttributable to
Owners of the Parent
Owners of the Parent
per Shareper Share (Diluted)
yenyen
1st Q of FY 2022
(12.61)
1st Q of FY 2021
2.66)
Note. The Company have applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, March 31, 2020) and related
implementation guidance from the beginning of the first quarter of the previous fiscal year. The percentage change in net sales for thethree months ended June 30, 2021, which were affected by this change, in not shown.
(2) Consolidated Financial Position
Total Assets
Net Assets
Equity to Total Assets
Millions of yen
Millions of yen%
1st Q of FY 2022
145,382
57,50339.0
FY 2021
143,308
58,242
40.1
Reference: Equity: 1st Q of FY2022: 56,760 million yen FY2021: 57,525 million yen
Equity: Shareholders’ Equity including Accumulated Other Comprehensive Income
2. Dividend Status
Dividend per Share
(Date of Record)Year-end

Full year

At the end of 1st Q

At the end of 2nd Q

At the end of 3rd Q

yen
-

yen
5.00

yen
-

yen
7.00

yen
12.00

3.00

-

9.00

12.00

FY 2021
FY 2022
FY 2022 (outlook)
Note. Recent revision of dividend estimates: No

3. Consolidated Outlook for FY2022 (April 1, 2022 to March 31, 2023)(% figures represent changes from the same period of the previous year.)
Net Sales

Operating Income

Millions of yen%
Millions of yen%
Mid-Term
60,0001.0(450)Full Year125,000
6.3
950
-35.1
Note. Recent revision of consolidated earnings estimates: Yes

Ordinary Income
Millions of yen

(220)
1,080

%
-23.0

Net Income
Attributable to
Owners of the
Parent per ShareNet Income
Attributable to
Owners of the Parent
Millions of yen

(700)
100

%
-

yen
(15.49)
2.21)

SEKISUI KASEI CO., LTD. (4228) Consolidated Financial Results for the First Quarter of Fiscal Year 2022 Ended March 31, 2023

Note:(1) Significant change of subsidiary companies during the term
(Change of specified subsidiaries that affected the scope of consolidated reporting): No(2) Application of special methods for quarterly consolidated financial statements: No(3) Changes to the accounting policy, changes or restatements of the accounting estimatesa) Changes caused by revisions to accounting principles: Nob) Changes other than a): Noc) Amendments to accounting estimates: Nod) Restatements: No(4) Number of shares outstanding (common stock)a) Number of shares outstanding at the end of term (including treasury stock):
1st Q of FY2022 46,988,109 shares
FY2021
46,988,109 sharesb) Treasury stock at the end of term:
1st Q of FY2022
1,794,266 shares
FY2021
1,794,266 sharesc) Average outstanding shares in the period (quarterly consolidated cumulative total):
1st Q of FY2022 45,193,843 shares
1st Q of FY2021 45,137,150 shares

Note: Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
Note: Proper use of financial results forecasts, and other special matters(Cautionary statement regarding forward-looking statements)
The forward-looking statements in this document, including financial results forecasts, are based on information currently available to
the Company and certain assumptions that the Company considers reasonable, and are not intended as a promise by the Company thatthey will be achieved. In addition, actual results may differ significantly due to various factors. Please refer to “1. Qualitative Information
on Quarterly Financial Results, (3) Explanation of Consolidated Financial Results Forecasts and Other Forward-looking Information” onpage 4 for the assumptions used in financial results forecasts, as well as precautionary statements regarding the use of financial results
forecasts.

Table of Contents
1. Qualitative Information on Quarterly Financial Results ........................................................................................... 2(1) Explanation of Operating Results......................................................................................................................... 2(2) Explanation of Financial Position ........................................................................................................................ 4(3) Explanation of Consolidated Financial Results Forecasts and Other Forward-looking Information ................... 4
2. Quarterly Consolidated Financial Statements and Principal Notes .......................................................................... 6(1) Quarterly Consolidated Balance Sheets ............................................................................................................... 6(2) Quarterly Consolidated Statements of Income and Comprehensive Income ....................................................... 8
Quarterly Consolidated Statements of Income
Three Months Ended June 30............................................................................................................................. 8
Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30............................................................................................................................. 9(3) Quarterly Consolidated Statements of Cash Flows ............................................................................................ 10(4) Notes to Quarterly Consolidated Financial Statements ...................................................................................... 11(Notes on going concern assumption) ................................................................................................................ 11(Notes in case of significant changes in shareholders’ equity) ........................................................................... 11(Business combination, etc.) ............................................................................................................................... 11(Segment information, etc.) ................................................................................................................................ 12-1-

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the three months ended June 30, 2022, the global economy remained uncertain mainly due to the prolonged
situation in Ukraine as well as increasing inflationary pressures caused by soaring resource prices and logistics costs,
while progress was made in terms of both economic activities and preventive measures against the coronavirus(COVID-19) infection. In the automotive industry, in addition to the shortage of semiconductors, supply chain
disruptions, primarily due to lockdowns in Shanghai and other parts of China are still affecting production activities.
Meanwhile, in the electronics-related sector, demand growth for personal computers (PCs) and other products remained
steady, despite slowing down. Although the Japanese economy is showing signs of recovery toward a normalization ofsocio-economic activities, partly due to the spread of vaccinations and the effects of various policies, uncertainty
continues to linger primarily due to soaring raw material and fuel prices, and the rapid depreciation of the yen. In
addition, responses to environmental issues such as reduction of greenhouse gas emissions and climate problems are
becoming even more important.
In Japan’s foam plastics industry, although the increase in demand related to food containers is slowing down, theindustry remains strong. Meanwhile, demand for various components and transportation and packaging materials has
yet to fully recover, due to the ongoing shortage of semiconductors and logistics disruptions, while costs are increasing
due to rising global resource and energy prices, which are forcing the industry to take countermeasures.
Against this challenging business environment, the Group is working to establish a resilient earnings base based on
ESG management in order to contribute to a sustainable society and achieve a sustainable enhancement of its corporate
value, as stated in the basic policy of the three-year mid-term management plan, “Spiral-up 2024,” which was launchedthis fiscal year. At the same time, the safety and health of our business partners and the Group’s employees are our firstpriority, and we will take measures to avoid risks related to COVID-19 to the maximum extent possible. We havepositioned “strengthening the earnings structure” as a key issue of the plan, and will work to restructure our businessportfolio through selection and concentration of management resources, make drastic innovations in production, andrapidly generate profits from developed products. In order to promote a shift to businesses that solve environmental
and social issues, we have also positioned “expanding Sustainable Star Products through recycling-based business” and“striving to achieve carbon neutrality” as key issues. In May 2022, we announced our endorsement of the TCFD
proposals, while we further strive to strengthen the promotion of SKG-5R(*) activities.
In terms of profits, we faced a variety of negative factors, including a delayed shifting of increases in prices to our
products, in response to repeated significant increases in raw material and fuel prices, continued global supply chain
disruptions due to lockdowns in Shanghai, China and other locations, and increased shipping costs for delivery of
increased production at other bases in response to the fire at Sekisui Kasei Oita Co., Ltd. Despite efforts on cost
reductions and fixed cost reductions to cope with these factors, revenue was severely constrained. Moreover, the Proseat
Group was unable to recover its performance, partly due to a decline in European automobile production caused by thesituation in Ukraine.
As a result, for the three months ended June 30, 2022, the Company posted net sales of ¥28,441 million (down 0.5%
year-on-year), operating loss of ¥658 million (compared with operating income of ¥182 million in the same period of
the previous fiscal year), ordinary loss of ¥320 million (compared with ordinary income of ¥251 million in the same
period of the previous fiscal year), and net loss attributable to owners of the parent of ¥569 million (compared with net
income attributable to owners of the parent of ¥120 million in the same period of the previous fiscal year).
* “SKG-5R” refers to SKG as the Sekisui Kasei Group, and 5R as Reduce, Reuse, Recycle, Replace, and Re-create.

The results for each segment are as follows.
We have defined food and housing/energy in the Human Life segment, and mobility, electronics, and medical/healthcare-2-

in the Industry segment, as key issue fields. We will work to restructure our business portfolio with the aim of“strengthening the earnings structure,” as stated in the mid-term plan.
<Human Life segment>
Net sales in the Human Life segment were ¥11,985 million (up 8.7% year-on-year), and the segment loss was ¥67
million (compared with segment income of ¥571 million in the same period of the previous fiscal year).
In the food field, although demand for home-cooked and ready-made meals in food container applications declined
slightly, there were signs of a recovery in tourism-related and food service-related products such as lunch box containers,
as the flow of people gradually recovered, resulting in an overall level of shipments similar to the previous year. In
agricultural applications, demand increased due to the earlier harvest season and other factors, and shipments exceeded
those of the previous year. However, shipments for fishery products applications were weak due to a downward trend
in fish catches.
In the housing/energy field, sales of civil engineering applications were sluggish due to delays in the progress ofconstruction projects, while those of building materials applications were strong.
The sales volume of ESLEN Sheets (foamed polystyrene sheets), which is a core product, was on par with the same
period of the previous fiscal year overall, due to strong sales for instant noodle applications, despite a slight decline indemand for take-out container applications and a slowdown in perishable food container applications at supermarkets,
etc. The sales volume of ESLEN Beads (expandable polystyrene beads) decreased from the previous year overall, due
to a slowdown in demand for household goods applications, such as beads for cushions, after the previous year’s
increase in demand, as well as sluggish sales in the fishery field.
In terms of profits, we worked on cost reductions and fixed cost reductions in response to repeated sharp rises in raw
material, fuel, and indirect material prices during the period, and also made efforts to shift such costs to product prices.
However, sudden sharp rises in prices caused delays in this process, which put significant pressure on revenue.
Moreover, in response to the fire accident that occurred at Sekisui Kasei Oita Co., Ltd. in April, although we increased
production at other plants to compensate for the loss, we also subsequently incurred shipping costs for products andother items, which resulted in a loss.
<Industry segment>
Net sales in the Industry segment were ¥16,456 million (down 6.3% year-on-year), and the segment loss was ¥341
million (compared with segment loss of ¥256 million in the same period of the previous fiscal year).
In the mobility field, sales of PIOCELAN (polystyrene/polyolefin hybrid resin foam) for automotive component
applications were sluggish due to the impact of automakers’ production cutbacks in response to shortages of parts,
including semiconductors in countries around the world, and lockdowns in various parts of China, despite continued
growth in component packaging material applications. The Proseat Group in Europe made improvements such as fixed
cost reductions and production consolidation. However, a shortage of parts for semiconductors and other products, andthe situation in Ukraine resulted in a slowdown in orders from European automakers, and a significant increase inenergy costs also affected the Proseat Group’s performance, causing a delay in recovery.
In the electronics field, demand for TECHPOLYMER (organic microparticle polymer) in light diffusion applications
such as LCD panels remained strong. However, demand for PIOCELAN in panel transport material/packaging material
applications was weak in China, Taiwan, and other locations due to factors such as the prolonged lockdown mentioned
above, intensified competition with other materials, and inventory adjustments of LCD panels.
In the medical/healthcare field, sales of ELASTIL (thermoplastic elastomer foam) were strong due to its expansion into-3-

applications for other shoes in addition to running shoe midsoles, and sales of ST-gel (functional high-polymer gel)recovered in medical electrode applications.
In terms of profits, we have worked on productivity improvements and fixed cost reductions. In response to soaring
raw material and fuel prices, we have also proceeded to shift such costs to product prices. However, there were delaysin this process on a global basis, which resulted in a loss.
(2) Explanation of Financial Position
Total assets as of June 30, 2022 increased by ¥2,074 million to ¥145,382 million. Under assets, current assets increasedby ¥2,008 million, mainly due to an increase in inventories.
Under liabilities, total liabilities increased by ¥2,813 million to ¥87,878 million due to an increase in loans and otherliabilities. Under net assets, total net assets decreased by ¥738 million to ¥57,503 million, due to a decrease in retained
earnings resulting from a net loss and a decrease in net unrealized holding gain on securities. As a result, the equity
ratio was 39.0%.
As for cash flows for the three months ended June 30, 2022, cash flows from operating activities increased by ¥472
million year on year to a cash outflow of ¥362 million, mainly due to a decrease in notes and accounts receivable,
despite a decrease in net income before income taxes. Cash flows from investing activities decreased by ¥30 million
year on year to a cash outflow of ¥609 million. Cash flows from financing activities increased by ¥2,892 million year
on year to a cash inflow of ¥892 million, mainly due to proceeds from long-term loans. As a result, cash and cash
equivalents as of June 30, 2022 increased by ¥69 million from the end of the previous fiscal year to ¥10,572 million.
(3) Explanation of Consolidated Financial Results Forecasts and Other Forward-looking Information
Based on recent business trends, we have revised our consolidated financial results forecasts for the first half and fullyear of the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023), which were announced on April 28,
2022, as follows.
Revisions of consolidated financial results forecasts for the first half of the fiscal year ending March 31, 2023
(April 1, 2022 to September 30, 2022)
Net sales

Operating income

Ordinary income

Net income
attributable toowners of theparent

Net income pershare

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previously announced
forecasts (A)60,000

400

300

100

2.21

Revised forecasts (B)60,000

(450)

(220)

(700)

(15.49)Change (B–A)

0

(850)

(520)

(800)

Change (%)

0.0

-

-

-

59,419

653

750

336

(Reference) Actual
results for the first half ofthe previous fiscal year

-4-

7.46

Revisions of consolidated financial results forecasts for the full year of the fiscal year ending March 31, 2023
(April 1, 2022 to March 31, 2023)
Net sales

Operating income

Ordinary income

Net income
attributable toowners of theparent

Net income pershare

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previously announced
forecasts (A)125,000

1,800

1,600

900

19.91

Revised forecasts (B)125,000

950

1,080

100

2.21

Change (B–A)

0

(850)

(520)

(800)

Change (%)

0.0(47.2)(32.5)(88.9)

117,567

1,463

1,401

(5,917)(Reference) Actual
results for the full year of
the previous fiscal year

(130.99)(Major reasons for revisions of the financial results forecasts (the impact on operating income))- Impact of soaring raw material and fuel prices (approximately ¥(800) million)
At the time of the announcement of the financial results forecasts for the fiscal year under review disclosed on April
28, 2022, we had prepared a plan based on certain estimates for increases in raw material and fuel prices, and were
proceeding to shift those increases to selling prices. However, there have been delays in shifting further increases in
raw material and fuel prices to selling prices due to repeated, sudden sharp rises since that time, resulting in significant
pressure on revenue.
- Decrease in demand due to the Shanghai lockdown (approximately ¥(100) million)
The lockdown in Shanghai, China forced a temporary suspension of plants in China, and had a significant impact on
business activities. Although the lockdown was lifted in June, the supply chain has still not returned to normal, primarily
due to a reoccurrence of COVID-19 infections, and demand has been affected.
- Response to the fire at Sekisui Kasei Oita Co., Ltd. (approximately ¥(200) million)
Sekisui Kasei Oita Co., Ltd., which produces ESLEN Sheets, a raw material for food containers, experienced a fire on
April 22, 2022. To fulfill our responsibility to supply products to customers, we are responding by increasing production
at other production subsidiaries. However, we have incurred temporary expenses such as shipping costs from otherbases to the Kyushu area.
In July, Sekisui Kasei Oita Co., Ltd. partially resumed production. Going forward, we will continue to work on
restoration of the plant.
- Others (cost reductions, etc.) (approximately ¥250 million)
As described above, we are working on cost reductions and fixed cost reductions to cope with various factors that have
put pressure on revenue. However, we have not been able to cover all such factors, and have thus revised our financial
results forecasts.
With regard to the performance for the second half of the fiscal year, the forecast figures previously incorporated in theforecast will remain unchanged due to the implementation of measures to address the negative impact of the first halfof the fiscal year. Therefore, the revised amount of the full-year consolidated operating income forecast is the same as
the revised amount for the first half of the fiscal year.
(Revisions of dividend forecasts)
There is no revision to the dividend forecast (total annual dividend for the fiscal year ending March 31, 2023: ¥12(interim: ¥3, year-end: ¥9)) as a result of the revisions of the financial results forecasts.
If it becomes necessary to make further revisions to the financial results forecasts in the future, we will make anannouncement promptly.
-5-

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process goods
Raw materials and supplies
Other current assets
Less allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Other intangible assets
Total intangible assets
Investments and other assets
Investments in securities
Assets for retirement benefits
Other assets
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-6-

As of June 30, 2022

10,51028,993
6,526
8,633
1,785
4,756
2,617
(52)
63,771

10,57928,583
6,713
9,095
2,096
5,246
3,494
(30)
65,77915,44813,737
21,413
5,053
55,652

15,42813,59021,523
5,159
55,701

1,131
1,131

1,346
1,346

14,849
6,155
1,796
(47)
22,752
79,536
143,308

14,568
6,219
1,815
(47)
22,55479,602
145,382(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans
Accrued income taxes
Provision for bonuses to employees
Provision for bonuses to directors and audit and supervisoryboard members
Provision for loss on business withdrawal of a subsidiary
Other current liabilities
Total current liabilities
Long-term liabilities
Bond
Long-term loans
Liabilities for retirement benefits
Provision for product warranty
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized holding gain on securities
Surplus arising from land revaluation
Translation adjustments
Retirement benefits liability adjustments
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-7-

As of June 30, 2022

16,065
9,145
16,252767
1,046

16,356
8,861
17,596
201
570

6

18

446
6,985
50,71574
8,818
52,4977,000
13,863
3,608
108
9,769
34,34985,0657,000
14,733
3,666
96
9,884
35,38087,878

16,533
16,503
16,602(1,448)48,19016,533
16,47815,716(1,448)47,280

7,442
1,479
745
(332)
9,334
717
58,242
143,308

7,247
1,479
1,106
(351)
9,480
742
57,503
145,382

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended June 30(Millions of yen)
For the three months ended
June 30, 2021

For the three months ended
June 30, 2022

28,583
22,571
6,012
5,830
182

28,441
23,267
5,174
5,832
(658)

3
175
40
114
333

4
192
288
38
523

100
96
67
264
251

104
6
75
185
(320)

305
305
556
434
121
1
120

(320)
246
(566)
3
(569)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expense
Loss on sales or disposal of equipment
Other non-operating expenses
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of investments in securities
Total extraordinary income
Net income (loss) before income taxes
Income taxes
Net income (loss)
Net income attributable to non-controlling interests
Net income (loss) attributable to owners of the parent-8-

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30(Millions of yen)
For the three months ended
June 30, 2021

For the three months ended
June 30, 2022

121

(566)

(1,285)113(107)(1,279)(1,157)

(195)
360
(18)
145
(420)

(1,159)1(423)
3

Net income (loss)
Other comprehensive (loss) income
Net unrealized holding gain on securities
Translation adjustments
Retirement benefits liability adjustments
Total other comprehensive (loss) income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests-9-(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
For the three months ended
June 30, 2021

For the three months ended
June 30, 2022

556
1,555
43
(0)
(178)
100
(467)
(6)
(267)
(305)
94
(231)
(937)
428
(251)
133
178
(122)
54
(1,078)
(835)

(320)
1,389
(24)
(196)
104
(476)
(11)
(50)
4
1,161
(939)
(379)
(101)
160
196
(107)
(612)
(362)

(932)
16
(0)
359
(6)
4
(20)
(579)

(640)
23
(0)
(0)
0
7
(609)

1,780
(2,801)
(735)
(2)
(240)
(2,000)25(3,388)12,498
9,109

814
4,140
(3,512)
(316)
(1)
(232)
892
149
69
10,503
10,572

Cash flows from operating activities
Net income (loss) before income taxes
Depreciation and amortization
Amortization of goodwill
Decrease in allowance for doubtful accounts
Interest and dividend income
Interest expense
Decrease in provision for bonuses to employees
Decrease in provision for product warranty
Changes in assets and liabilities for retirement benefits, net(Gain) loss on sales of investments in securities
Loss on sales or disposal of equipment, net(Increase) decrease in notes and accounts receivable
Increase in inventories
Increase (decrease) in notes and accounts payable
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from casualty insurance claims
Income taxes
Net cash used in operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of investments in securities
Proceeds from sales of investments in securities
Increase in short-term and long-term loans receivableCollection of short-term and long-term loans receivable
Other, net
Net cash used in investing activities
Cash flows from financing activities
Net increase in short-term loans
Proceeds from long-term loans
Repayment of long-term loans
Dividends paid
Dividends paid to non-controlling shareholders
Other, net
Net cash (used in) provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period- 10 -

(4) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
Not applicable.
(Business combination, etc.)(Additional acquisition of subsidiary shares)
At the meeting of the Board of Directors held on April 28, 2022, the Company approved a resolution to acquire
additional shares of Proseat Europe GmbH, a consolidated subsidiary of the Company, making it a wholly-owned
subsidiary on May 20, 2022.
1. Name of the combined company and business description(1) Name of the combined company: Proseat Europe GmbHBusiness description:
Management policy-making and managerial administration of the Proseat Group(2) Date of the business combination
May 20, 2022
(3) Legal form of the business combination
Acquisition of shares from a non-controlling shareholder(4) Name of the company after the business combination
There is no change in the company name.
(5) Other matters related to the outline of the transaction
The additional acquisition is due to the exercise of a put option by Recticel NA/SA, a non-controlling shareholder
of Proseat Europe GmbH.
2. Summary of the accounting treatment
The Company treated this as a transaction with a non-controlling shareholder under common control, in accordancewith the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21, January 16, 2019) and“Implementation Guidance on Accounting Standard for Business Combinations and Accounting Standard forBusiness Divestitures” (ASBJ Guidance No. 10, January 16, 2019).
3. Additional acquisition of subsidiary shares
Acquisition cost of the acquired company and breakdown by type of consideration
Consideration for the acquisition: Cash and deposits 1 EuroAcquisition cost: 1 Euro
4. Changes in the Company’s interests related to the transaction with the non-controlling shareholder(1) Main reason for changes in capital surplus
Additional acquisition of subsidiary shares(2) Amount of capital surplus decreased due to the transaction with the non-controlling shareholder¥24 million- 11 -

(Segment information, etc.)(Segment information)
I. For the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)
1. Information on net sales and income (loss) by reportable segment, and information on disaggregation of revenue

Reportable segments

Net sales
Japan
EuropeAsia
Other
Revenue from contracts withcustomers
Other revenue
Net sales to third parties
Inter-segment net sales ortransfers
Total
Segment income (loss)
Notes:

Total

Adjustments(Note 1)

(Millions of yen)Amounts recorded in
the Quarterly
Consolidated
Statements of Income(Note 2)

Human Life

Industry

10,987
33
0

5,344
8,175
3,474
567

16,332
8,175
3,507
568

-

16,332
8,175
3,507
568

11,02017,56328,583-28,583

11,02017,56328,583-28,583

146

33

179

(179)

-

11,167571

17,596(256)

28,763
315

(179)
(63)

28,583251

1. Adjustments were as follows:
Adjustments for segment income (loss) of ¥(63) million consisted of inter-segment eliminations of ¥0 million and companywide expenses not allocated to reportable segments of ¥(64) million.
2. Segment income (loss) was adjusted for ordinary income in the Quarterly Consolidated Statements of Income.
3. Major products in each segment- Human Life:ESLEN Beads, ESLEN Sheet, ESLEN Wood, INTERFOAM, other foamed/molded products, ES Dan Mat,ESLEN Block, etc.
- Industry:
PIOCELAN, LIGHTLON, NEOMICROLEN, CELPET, TECHPOLYMER, ST-gel, TECHEATER, ELASTIL,
FOAMAC, ST-LAYER, ST-Eleveat, other foamed/molded products, etc.

- 12 -

II. For the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
1.Information on net sales and income (loss) by reportable segment, and information on disaggregation of revenue

Reportable segments
Human Life

Industry

Total

Adjustments(Note 1)

(Millions of yen)Amounts recorded in
the Quarterly
Consolidated
Statements of Income(Note 2)

Net salesJapan
11,952
5,086
17,03917,039Europe
7,322
7,322
7,322
Asia
32
3,256
3,289
3,289
Other
790
790
790
Revenue from contracts with
11,985
16,45628,441
28,441
customers
Other revenue
Net sales to third parties
11,985
16,45628,441
28,441
Inter-segment net sales or
160
39
199
(199)
transfers
Total
12,145
16,49528,640(199)
28,441
Segment income (loss)
(67)
(341)
(409)
88
(320)
Notes: 1. Adjustments were as follows:
Adjustments for segment income (loss) of ¥88 million consisted of inter-segment eliminations of ¥(0) million and companywideexpenses not allocated to reportable segments of ¥89 million.
2. Segment income (loss) was adjusted for ordinary loss in the Quarterly Consolidated Statements of Income.
3. Major products in each segment- Human Life:ESLEN Beads, ESLEN Sheet, ESLEN Wood, INTERFOAM, other foamed/molded products, ES Dan Mat,ESLEN Block, etc.
- Industry:
PIOCELAN, LIGHTLON, NEOMICROLEN, CELPET, TECHPOLYMER, ST-gel, TECHEATER, ELASTIL,
FOAMAC, ST-LAYER, ST-Eleveat, other foamed/molded products, etc.

- 13 -