Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between thistranslated document and the Japanese original, the original shall prevail.

Summary of Consolidated Financial Results of Fiscal Year 2022 Ended March 31, 2023
<Under Japanese GAAP>
April 28, 2023
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
June 23, 2023
June 26, 2023
June 26, 2023
Yes
Yes (For securities analysts and institutional investor fund managers)

Company Name:
Stock Listings:
Code Number:
URL:
Representative Director:
Inquiries:
TEL:
Scheduled General Meeting Shareholders:
Scheduled date for payment of dividends:
Scheduled date for submission of financial statement:
Earnings supplementary explanatory documents:
Earnings results briefing:(Figures rounded down to the nearest million yen)

1. Consolidated Business Results for FY 2022 (April 1, 2022 to March 31, 2023)(1) Consolidated Business Results(% figures represent changes from 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%
FY 2022
124,6836.1
793(45.8)
704(49.7)452
FY 2021
117,5671,463(30.0)
1,401(28.4)(5,917)Note. Comprehensive Income: FY2022: 642million yen [ - %] FY2021: (11,433)million yen [ - %]Net Income
Attributable to
Owners of the Parent
per Share

Net Income
Attributable to
Owners of the parent
per Share (Diluted)

Net Income to
Equity Ratio

Ordinary Income toTotal Assets Ratio

Operating Income
Ratio

yen
yen
%
%
%
FY 2022
10.00
0.8
0.5
0.6
FY 2021(130.99)
(9.3)
0.9
1.2
Note. Share of profit of entities accounted for using equity method: FY2022: - million yen FY2021: - million yen
Note. The Group has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and related
implementation guidance from the beginning of the previous fiscal year. The percentage change in net sales of the fiscal year 2021 ended march 31,
2022, which were affected by this change, in not shown.
(2) Consolidated Financial Position
Total Assets

Equityto Total Assets

Net Assets

Net Assets
per Share

Millions of yen
Millions of yen
FY 2022
145,175
58,46439.8
FY 2021
143,308
58,242
40.1
Reference: Equity: As of March 31, 2023: 57,723million yen As of March 31, 2022: 57,525million yen
Equity: Shareholders’ Equity including Accumulated Other Comprehensive Income%

1,275.00
1,272.86

yen(3) Consolidated Cash Flows
Operating Activities

Investing Activities

Millions of yen
3,110
3,831

FY 2022
FY 2021

Financing Activities

Millions of yen(993)(3,186)

Millions of yen(1,542)(2,573)

Cash and cash equivalents
At end of period
Millions of yen
11,072
10,503

2. Dividend Status
Dividend per Share
(Date of Record)

At the end

of 1Q

yen
FY 2021
FY 2022
FY 2023 (outlook)-At the end

of 2Q
yen
5.00
3.00
3.00

At the end

of 3Q
yen
-

Year-end

Full year

yen
7.00
9.00
9.00

yen
12.00
12.00
12.00

3. Consolidated Outlook for FY2023 (April 1, 2023-March 31, 2024)

Net Sales

Mid-term
Full Year

Millions of yen
64,000130,000

Operating Income
%
5.1
4.3

Millions of yen
%
200
2,000
152.2

Total Dividend
Payment(full year)
Millions of yen
542
543

Payout Ratio(consolidated)
%
120.0
98.8

Dividend toequity ratio(consolidated)
%
0.9
0.9

(% figures represent changes from the same period of the previous year.)Ordinary Income
Millions of yen
100
1,700

%
35.7
141.3

Net Income
Attributable to
Owners of the Parent
Millions of yen
(500)
-550

%
21.5

Net Income
Attributable to
Owners of the
Parent per Shareyen(11.04)-12.15SEKISUI KASEI CO., LTD. (4228) Consolidated Financial Results 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) 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(3) Number of shares outstanding (common stock)a) Number of shares outstanding at the end of term (including treasury stock)
FY2022 46,988,109 shares
FY2021 46,988,109 sharesb) Treasury stock at end of term
FY2022 1,714,425 shares
FY2021 1,794,266 sharesc) Average outstanding shares in the period
FY2022 45,250,078 shares
FY2021 45,176,402 shares(Reference information) Summary of Non-consolidated financial results
1. Non-consolidated financial results for FY 2022 (April 1, 2022 to March 31, 2023)(1) Non-Consolidated Business Results
Net Sales
FY 2022
FY 2021

Millions of yen
66,84962,869Operating Income%
6.3-

Millions of yen
2,380
3,107

%
(23.4)(0.5)(% figures represent changes from the previous year.)Ordinary Income
Millions of yen
130
4,249

Net Income%(96.9)
7.0)

Millions of yen
324)(10,212)%-Net Income
per Share

Net Income
per Share (Diluted)
yenyen
FY 2022
7.17)
FY 2021(226.06)
Note. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and related
implementation guidance from the beginning of the previous fiscal year. The percentage change in net sales of the fiscal year 2021 ended march 31,
2022, which were affected by this change, in not shown.
(2) Non-Consolidated Financial Position
Total Assets

Net Assets

EquityTo Total Assets

Millions of yen
Millions of yen
FY 2022
122,195
50,89441.6
FY 2021120,188
50,995
42.4
Reference: Equity: As of March 31, 2023: 50,894million yen As of March 31, 2022: 50,995million yen
Equity: Shareholders’ Equity including Accumulated Other Comprehensive Income

Net Assets
per Share%yen
1,124.14
1,128.38

Note: Execution chart for audit procedures
The Financial instruments and Exchange Law does not require this brief announcement of the most recent financial statements to be subject toaudit review.
Note: Remarks on appropriate use of forecasted resulted of operation and other special matters(Cautionary statement regarding forward-looking statements)
The earnings forecasts and other forward-looking statement presented in this report are based on information available at the time of its issue
and on certain assumption that the Group considers reasonable. Forward-looking statements in no capacity represent a guarantee that the Groupwill achieve the stated amounts. Various factors can cause actual results to differ materially from the forecasts. For important matters regarding
the conditions associated with the assumptions of these forecasts and their appropriate use, please see “1. Summary of Business Results, (3)Outlook” on page 7.

Table of Contents
1. Summary of Business Results ........................................................................................................................... 2(1) Summary of Business Results for FY2022 ................................................................................................... 2(2) Summary of Financial Position for FY2022 ................................................................................................. 6(3) Outlook ......................................................................................................................................................... 7
2. Management Policy........................................................................................................................................... 8(1) Mid- to Long-term Management Strategy, Targets for Management Indices .............................................. 8
3. Basic Approach to the Selection of Accounting Standards............................................................................... 9
4. Consolidated Financial Statements and Notes to Consolidated Financial Statement ..................................... 10(1) Consolidated Balance Sheets ...................................................................................................................... 10(2) Consolidated Statement of Income and Statement of Comprehensive Income .......................................... 12(3) Consolidated Statement of Income ............................................................................................................. 12(3) Consolidated Statement of Comprehensive Income ................................................................................... 13(3) Consolidated Statement of Changes in Net Assets ..................................................................................... 14(4) Consolidated Statement of Cash Flows ...................................................................................................... 16(5) Notes to Consolidated Financial Statements............................................................................................... 17(3) Notes regarding assumption of going concern............................................................................................ 17(3) Significant matters that serve as the basis of preparation of consolidated financial statement .................. 17(3) Segment Information, etc. ........................................................................................................................... 17(3) Per share information .................................................................................................................................. 21(3) Subsequent events ....................................................................................................................................... 221

1.

Summary of Business Results(1) Summary of Business Results for FY2022
1) Business Results for FY2022
During the fiscal year under review, countries around the world progressively relaxed both
restrictions on behavior imposed in response to novel coronavirus infectious disease (COVID-19)
and measures to prevent infection, which led to signs of a resumption in economic activity centeredon personal consumption, but the prolongation of the situation in Ukraine and ongoing inflationarypressure caused by soaring energy prices led to continued uncertainty for the global economy. In
the automotive industry, shortages of semiconductors and other parts and disruption to supply
chains across the world has continued to affect production activities. In electronics-relatedindustries, there has been a softening of demand for personal computers and other products, andLCD panel manufacturers continue to apply inventory corrections. Although the Japanese economy
is showing signs of recovery toward a normalization of socio-economic activities due to the easingof COVID-19 related restrictions on behavior, uncertainty continues to linger due to concerns about
falling consumption caused by soaring energy and other prices, and volatility in the foreignexchange and interest rate markets. In addition, responses to environmental issues, such as
reductions in greenhouse gas emissions and the problem of climate change, are becoming
increasingly important.
In Japan’s foam plastics industry, food container-related demand, primarily for home meals andhome-meal replacements, is slowing due in part to the easing of restrictions on behavior. Due tothe impact of the continued shortage of semiconductors and so on, demand for parts, transportmaterials and packaging materials has yet to experience a full-fledged recovery, and high prices
for energy and other factors remain an issue.
Against this challenging business environment, the Group has taken steps to avoid the risk of
COVID-19 while seeking to ease restrictions on behavior, and at the same time the members of theGroup have been working as one on the three Key Issues of the three-year mid-term management
plan, “Spiral-up 2024,” which began in the fiscal year under review. In terms of “Strengthen theearnings structure,” by selecting and concentrating management resources we are working to
restructure the business portfolio, implement bold innovations in production, and generate profits
rapidly from newly developed products. In terms of “Shift to businesses that solve environmental
and social issues,” we have also positioned “expanding Sustainable Star Producs through recyclingbased business” and “striving to achieve carbon neutrality” as our issues, while further striving tostrengthen the promotion of SKG-5R*. As part of this initiative, we are developing
environmentally friendly new materials, such as ReNew+* and BIO Cellular*, and taking steps toachieve efficient production of these products and to increase their sales. Moreover, by blending
our proprietary recycling technology with polymerization technology, we have established a massproduction approach that enables up to 50% of raw materials to be recycled, which can be used forexample in the recycling of fish boxes, where the removal of unwanted odors had previously been
an issue. We are also making progress with the installation of facilities to enable the shift awayfrom fossil energy and towards renewable energy for our production activities, and solar power
generation systems have been introduced at four Group company locations in Japan.
In terms of “Reinforce our management foundation,” we have identified what constitutes
materiality, and are moving forward with related activities. One of these is “human capital2

management,” which reflects our perception of our employees as an important management
resource. We have also made a declaration of health and productivity management with theobjective of helping to maintain and enhance the mental and physical health of our employees, andreceived certification as a 2023 Health and Productivity Management Organization in the Large
Enterprise Category.
In terms of sales, in Human Life Segment, we worked to revise prices and increase sales volumes
in the wake of the recovery in flows of people, while in Industry Segment we strived to expand
sales in the various business fields that are beginning to recover.
In terms of profits, we responded to multiple negative impacts in the first half, such as those of the
global supply chain disruption resulting from lockdowns in Shanghai, China and other locations,the fire at Sekisui Kasei Oita Co., Ltd., and soaring prices for raw materials and fuel, by steadfastly
working to pass higher inputs on to selling prices, reduce costs and cut fixed expenses, but we wereunable to completely offset these negative factors. As a result of the above factors, consolidated
net sales for the fiscal year under review came to ¥124,683 million (up 6.1% year on year), with
operating income of ¥793 million (down 45.8% year on year), and ordinary income of ¥704 million(down 49.7% year on year). After recording extraordinary income of ¥1,632 million derived frompartial sales of investment securities, and deducting income taxes, this resulted in a net income
attributable to owners of the parent of ¥452 million (compared to a net loss of ¥5,917 million forthe previous fiscal year).
* The “SKG” in “SKG-5R” represents SEKISUI KASEI Group, and the “5R” stands for Reduce, Reuse, Recycle, Replace and Re-create.
* ReNew+ is our category brand of products that use recycled raw materials.
* BIO Cellular is our category brand of products that use biodegradable plastics or plastics derived from biomass.

2) Summary by Business Segment<Human Life Segment>
Net sales in Human Life Segment reached ¥52,602 million (up 6.2% year on year), with segment
profit of ¥2,585 million (down 23.4% year on year).
Sales in the field of Food were up overall year on year, due to price revisions. Although flows ofpeople are returning and driving signs of a recovery in takeout containers, as well as in lunchboxes
and other products related to tourist and restaurant demand, food container demand related to homemeals and home-meal replacements declined slightly. In agricultural applications, shipments wereflat year on year due in part to the impact of the weather and other factors, but fishery remained
weak due to the trend towards declining catches.
In the Housing/Energy field, civil engineering was weak due to delays in the progress ofconstruction projects, but construction materials performed strongly.
Demand related to take-out containers remained strong, and despite signs of a slowdown in fresh
food trays used in supermarkets and elsewhere, and a fall in instant noodle-related demand, sales
volume of ESLEN Sheets (foamed polystyrene sheets), our mainstay product, were flat year on
year. Sales volume of ESLEN Beads (expandable polystyrene beads) recorded a year-on-year
decline overall, with beads for cushions and other life goods showing a slowing of the demand
growth of the previous year, and weakness being seen in demand related to agriculture and fishery.
In response to repeated sharp increases in the price of raw materials and secondary resources as3

well as cost of energy, we worked to reduce costs and fixed expenses and also passed higher inputs
on to selling prices. However, lower sales resulting from market weakness, costs incurred as aresult of transferring products from other factories following the fire at Sekisui Kasei Oita in April,and other factors put pressure on margins, and profits declined.
<Industry Segment>
Net sales in Industry segment reached ¥72,081 million (up 5.9% year on year), with a segment lossof ¥400 million, compared to a loss of ¥1,777 million for the previous fiscal year.
In the Mobility field, demand for automotive parts applications was sluggish due to the impact of
production cutbacks by automakers in response to shortages of semiconductors in other parts incountries around the world, and to lockdowns in various parts of China in the first half. In the latterstages of the first half the trend began to improve, but it has not reached a full-fledged recovery.
On the other hand, after growing significantly in the first half, sales of parts packaging applications
receded in the second half, and sales of PIOCELAN (polystyrene/polyolefin hybrid resin foam)
were flat year on year. In Europe, Proseat Group worked on improvements such as reductions in
fixed costs and consolidation of production, but orders from European automobile manufacturers
continue to stagnate due to shortages of semiconductors and other parts, and as a result of thesituation in Ukraine. Due to this and the impact of significant increases in energy costs, a recovery
in earnings will take time, and losses continue to be recorded.
In the Electronics field, demand for TECHPOLYMER (organic polymer particles) used in light
diffusion applications for LCD panels, etc. fell sharply from the second quarter onward due to theimpact of inventory corrections, but in the fourth quarter we began to see signs of a moderate
recovery. Due to the impact of the lockdowns, intensified competition with other materials, andinventory corrections for LCD panels, demand for panel transport materials and packaging
materials using PIOCELAN in China, Taiwan and elsewhere was weak.
In the Medical/Healthcare field, we succeeded in expanding applications for ELASTIL(thermoplastic elastomer foam) used in midsoles for running shoes, to other types of shoe. Growthin sales was recorded both for ST-gel (functional high-polymer gel) for applications such as
medical electrodes, and for TECHPOLYMER used in cosmetics applications.
In terms of profits, although we took steps to raise productivity and cut fixed expenses, the timelag between being affected by sharp increases in energy costs and raw materials prices and passing
them on to customers resulted in a loss.
3) Other Important Items<Global Expansion>
SEKISUI KASEI Group is moving to expand its business globally, primarily in Industry segment
including Mobility and Electronics. With the move towards carbon neutrality by 2050 progressing
around the world, in the Mobility field, the shift toward EVs (electric vehicles) is expected toaccelerate, and the market for the Company’s foam plastic products, which contribute to greater
functionality, is expected to expand.
The Group is moving to expand globally to address demand for parts and packaging materials that4

use foam plastics, which contribute to the weight-reduction efforts that will become increasingly
important in the Mobility field going forward. It is working to grow the automotive parts andpackaging materials business in North America, which includes the United States and Mexico, andin Asian countries such as China, Thailand, and Indonesia. In February 2019 the Group alsoacquired European auto parts manufacturer Proseat Group as a stepping stone towards expanding
the business in Europe, and is building a structure to allow it to respond quickly to the shift towards
electric vehicles that originated in Europe. Since the acquisition performance has deteriorated, but
we are striving to strengthening competitiveness by withdrawing from unprofitable operations andrestructuring the organization, putting in place a stronger foundation for business, and working todevelop products and expand the customer base in order to grow the European business.
In fields such as Electronics and Medical/Healthcare, we will develop new materials with reduced
environmental impacts, including foam plastics and polymer particles based on new technology,
ReNew+, and BIO Cellular, and strive to achieve efficient production and to increase sales of theseproducts. Note that overseas sales for the consolidated fiscal year under review came to ¥49,509
million (39.7% of consolidated net sales).
<Sustainability Initiatives>
The Group is shifting into businesses that resolve environmental and social issues, as a means ofenhancing environmental, social, and economic value and achieving sustainable expansion, an
approach that is a higher-level replacement for the previous Corporate Social Responsibility (CSR)
program. In January this year we formulated this Sustainability Policy: “SEKISUI KASEI Groupis committed to fulfilling our social responsibility to all stakeholders, including the global
environment, by carrying out our management philosophy. We strive to contribute to thesustainable development of society globally and to enhance the sustainable corporate value.” Thesustainability activities conducted by the Group are founded on the three themes of “manufacturingwith consideration for the environment, safety and quality,” “sincere management activities
focusing on compliance” and “practice of Zen-in Keiei.*”With regard to the environment, since its founding, the Group has advanced its foaming andpolymerization technologies while taking on the challenges of conducting monozukuri(manufacturing craftsmanship) and innovative business activities in harmony with the environment,
including energy conservation and recycling, with the aim of creating a low-carbon and recyclingbased society. Moreover, in May 2022, the Group endorsed the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD), and in accordance with the TCFD’s
recommendations the Group began disclosing information on initiatives to address climate change
in April 2023, thus contributing through its business activities to efforts to achieve a sustainable
society.
With regard to compliance, rather than restricting ourselves to the perspective of conformance withlaws and regulations, we are working on a general and wide-ranging strengthening of governance,
including taking measures to enhance the effectiveness of the Board of Directors, and rebuilding
the committee structure of the Company.
In terms of “practice of Zen-in Keiei,” we will focus on promoting health and productivity
management, workstyle reforms and diversity (promoting the participation and advancement of
women in the workplace, nurturing global managers, etc.) as human capital management initiatives,with the aim of strengthening frameworks that ensure that employees with enthusiasm and ability
5can participate.
Based on international standards and guidelines, the SDGs, and similar information, and withreference to what is important to the Group and what is important to stakeholders, we haveidentified materiality (key management issues) from the perspective of the environment, society,and governance, have established issues to promote and KPIs for each, and are strengthening ESG
management in order to achieve sustainable growth.
*Zen-in Keiei is our group culture we value that each individual of SEKISUI KASEI Group fully recognize the aim of the entire Group andachieves goals by joining forces as a team and cooperate each other while optimizing personally and strength of individuals, and what leads togreater achievement of the entire Group.

(2) Summary of Financial Position for FY2022
1) Assets, Liabilities and Net Assets
As of the end of the consolidated fiscal year under review, assets totaled ¥145,175 million (anincrease of ¥1,867 million from the end of the previous year).
In assets, increases in items such as electronically recorded monetary claims-operating resulted incurrent assets rising by ¥3,102 million. Non-current assets decreased by ¥1,235 million due to salesof investments in securities.
In liabilities, repayments of short-term loans led to a decrease of ¥2,619 million in current liabilities.
In addition, mainly as a result of an increase in long-term loans, long-term liabilities increased by¥4,264 million.
The net assets rose by ¥221 million.
2) Cash FlowsThe balance of cash and cash equivalents (hereafter “net cash”) at the end of the consolidated fiscal
year under review increased by ¥569 million compared to the end of the previous fiscal year, to¥11,072 million.
<Cash flows from operating activities>
Cash flow from operating activities saw decrease by ¥721 million, resulting in ¥3,110 million in
net cash provided in operating activities, due mainly to the decrease in operating income.
<Cash flows from investing activities>
Cash flow from investing activities saw increase by ¥2,192 million, resulting in ¥993 million in
net cash used in financing activities, due to increases in proceeds from sales of investments insecurities.
<Cash flows from financing activities>
Net cash used in financing activities was ¥1,542 million, an increase of ¥1,031 million from theprevious fiscal year due mainly to decreases in repayment of loans.

6

(Reference) Change in cash flow-related indices
FY2018FY2019FY2020

FY2021

FY2022Equity ratio

42.5

44.1

44.2

40.1

39.8

Equity ratio on a market value basis

27.2

17.6

17.7

13.8

13.0

Interest-bearing debt to cash flow ratio

4.9

5.5

5.8

10.9

13.6

Interest coverage ratio

38.8

15.0

17.1

10.7

6.8

(Notes)Equity ratio: Shareholders’ equity/Total assets
Equity ratio on a market value basis: Market capitalization/Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/cash flow
Interest coverage ratio: Cash flow/interest payments*All figures are calculated on a consolidated basis.
*Market capitalization is calculated based on the number of shares outstanding excluding treasury stock.
*Interest-bearing debt includes all debt in the consolidated balance sheet for which interest is paid.

(3) Outlook
With respect to the outlook going forward, we must pay attention to the trend in the recovery fromCOVID-19 and geopolitical risks such as and the worsening of the situation in Ukraine, as well as
to the impact of exchange rate volatility and fluctuations of prices for raw materials and energy.
In Human Life Segment, although we expect slowing demand for home meals and home-meal
replacements in the form of supermarket food trays and restaurant take-out containers, we also
anticipate rising demand for recreation and tourism-related materials as a result of a recovery in
inbound tourism, and a continuation of strong sales. In Industry segment, which operates globally,in the Mobility field there are concerns about the impact on supply chains of the situation in
Ukraine, as well as instability in the balance between supply and demand for parts such as
semiconductors, but we expect parts applications and parts packaging applications to trend toward
recovery, despite the lack of visibility. In the Electronics field, we expect LCD-related demand asa whole, which has been soft, to recover.
As a result, for the fiscal year ending March 31, 2024, we forecast consolidated net sales of ¥130.0
billion, operating income of ¥2.0 billion, ordinary income of ¥1.7 billion and net income
attributable to owners of the parent of ¥0.5 billion.

7

2.

Management Policy
Mid- to Long-term Management Strategy, Targets for Management Indices
SEKISUI KASEI Group has created a new “Spiral-up 2024” mid-term management plan, whichbegan in April 2022. In accordance with the <Basic Policy> below, all our members have been
participating in this plan, with their efforts centered on <Key Issues>.
(1) Basic Policy
To contribute to a sustainable society, and to achieve the sustainable enhancement of ourcorporate value, we will establish a resilient earnings base based on ESG management.
(2) Key Issues(i) Strengthen the earnings structure1) Restructuring the business portfolio(5 priority fields)“Food,” “Electronics,” “Mobility,” “Medical/Healthcare,” “Housing/Energy”
2) Constructing a highly profitable structure in Proseat business
3) Strengthening cost competitiveness through innovations in production4) Rapidly generating profits from developed products(ii) Shift to businesses that solve environmental and social issues
1) Expanding Sustainable Star Products through recycling business
2) Striving to achieve carbon neutrality(iii) Reinforce our management foundations
1) Strengthening efforts to address materiality (key management issues)2) Enhancing financial health(3) Quantitative targets
We took into consideration the future supplement of the market and the prospect of a delayed
recovery of Proseat Group's business performance, etc., in response to the issues facing theGroup. We have also partially revised the plan for FY2024 as follows.
Consolidated targets
Net Sales(Original plan)
Operating income(Original plan)
Ordinary Income(Original plan)
Net income attributable to owners of the parent(Original plan)

FY2021(results)¥117.5 billion

FY2022(results)¥124.6 billion

FY2023(plan)¥130.0 billion(¥125.0 billion)¥1.4 billion¥0.7 billion(¥135.0 billion)¥2.0 billion(¥1.8 billion)¥1.4 billion¥0.7 billion¥0.4 billion¥1.7 billion－

0.8%(1.5%)¥3.7 billion(¥4.8 billion)¥0.5 billion(¥0.9 billion)

ROE(Original plan)¥4.0 billion(¥5.0 billion)(¥1.6 billion)¥(5.9) billion

FY2024(plan)¥135,0 billion¥2.4 billion(¥3.0 billion)

1.0%

3.0%
(3.0%)(Amounts of less than ¥100 million are not shown)8

3.

Basic Approach to the Selection of Accounting Standards
Taking into account comparability between reporting periods and between companies in its
consolidated financial statements, for the time being the Group’s policy is to prepare its
consolidated financial statements based on Japanese GAAP. With regards to the application ofinternational financial reporting standards (IFRS), the Group will respond appropriately, taking
into account various conditions both domestically and overseas.

9

4.

Consolidated Financial Statements and Notes to Consolidated Financial Statement(1) Consolidated Balance Sheets
FY2021
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable
Accounts receivable
Contract assets
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investments in securities
Deferred income taxes
Assets for retirement benefits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

10(Millions of Yen)FY2022As of March 31, 2023

10,5104,335
23,565
1,092
6,526
8,633
1,785
4,756
2,617
(52)
63,771

11,0803,085
23,727
1,575
7,930
9,253
1,909
5,127
3,227
(42)
66,874

48,614(33,165)
15,44889,839(76,102)
13,737
21,413
1,743
18,664(15,354)
3,309
55,65249,140(34,336)
14,80490,482(77,729)
12,753
21,492
1,472
19,815(16,635)
3,180
53,702

665
465
1,131

1,277
486
1,763

14,849
822
6,155
973
(47)
22,752
79,536
143,308

14,041
851
6,936
1,053
(47)
22,83478,301
145,175

FY2021
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable
Electronically recorded obligations-operating
Short-term loans
Accrued expenses
Accrued income and enterprise taxes
Contract liabilities
Accrued consumption taxes
Provision for bonuses to employees
Provision for bonuses to directors andaudit and supervisory board members
Notes payable-facilities
Electronically recorded obligations -non-operating
Other
Total current liabilities
Long-term liabilities
Bonds payable
Long-term loans
Deferred income taxes
Deferred income taxes for land revaluation
Provision for product warranty
Liabilities for retirement benefits
Other
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 gains 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

11(Millions of yen)
FY2022As of March 31, 2023

16,065
9,145
16,252
3,357
767
405
259
1,046
6

17,026
8,263
13,026
3,420
1,338
684
265
1,010
42

71
691
2,646
50,715

46
724
2,246
48,0967,000
13,863
4,410
1,596
108
3,608
3,763
34,34985,0657,000
18,094
4,593
1,596
82
3,728
3,521
38,61486,711

16,533
16,503
16,602(1,448)48,19016,533
16,445
16,602(1,382)
48,199

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

7,440
1,479
562
41
9,524
740
58,464145,175

(2) Consolidated Statement of Income and Statement of Comprehensive Income
Consolidated Statement of Income
FY2021(From April 1, 2021
to March 31, 2022)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gain, net
Subsidy income
Compensation income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales and retirement of non-current
assetsCommission fee
Compensation expenses
Loss on fire
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investments in securities
Total extraordinary income
Extraordinary loss
Impairment loss
Total extraordinary losses
Net income (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income (loss)
Net income (loss) attributable to non-controllinginterests
Net income (loss) attributable to owners of theparent12(Millions of yen)
FY2022(From April 1, 2022
to March 31, 2023)

117,567
92,831
24,73523,271
1,463

124,683
100,072
24,611
23,818
793

13
328
288
58
－
330
1,019

19
349
143
29
210
273
1,025

386
214
57
114
－
309
1,082
1,401

538
31
14
12
228
289
1,114
704

445
445

1,632
1,632

6,407
6,407
(4,560)
1,436
(120)
1,316
(5,876)
41

50
50
2,287
1,846
(13)
1,833
453
0

(5,917)452

Consolidated Statement of Comprehensive Income(Millions of yen)
End of FY2022(From April 1, 2022
to March 31, 2023)

End of FY2021(From April 1, 2021
to March 31, 2022)
Net income (loss)
Other comprehensive income
Net unrealized gains on securities
Translation adjustments
Retirement benefits liability adjustments
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to ownersof the parent
Comprehensive income attributable to noncontrolling interests

13(5,876)453(4,417)720(1,860)(5,557)(11,433)

(1)
(183)
374
189
642

(11,460)

641

27

0

(3) Consolidated Statement of Changes in Net Assets
FY2021 (April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity
Common stock
Balance at April 1, 2021

Capital surplus

16,533Retained earnings

16,515

Total shareholders’equityTreasury stock

23,523(1,493)55,077

Changes of items during period
Dividend of surplus(1,002)(1,002)

Net income attributableto owners of the parent(5,917)(5,917)

Decrease due to additional acquisitionof shares of consolidated subsidiaries‐

Acquisition of treasury stock(12)

Disposal of treasury stock

(0)

(0)

45

33

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at March 31, 2022

－

(12)

(6,920)45(6,886)

16,533

16,503

16,602(1,448)48,190

Accumulated other comprehensive income
Net unrealized Surplus arising
gains onfrom land
securities
revaluation
Balance at April 1, 2021

11,859Translation
adjustments

1,479

11

Retirement
benefits
liability
adjustments

Total
accumulated
othercomprehensive
income1,527

14,877

Noncontrollinginterests

Total net assets

702

70,657

Changes of items during period
Dividend of surplus(1,002)

Net income attributable toowners of the parent(5,917)

Decrease due to additional acquisitionof shares of consolidated subsidiaries‐

Acquisition of treasury stock(0)

Disposal of treasury stock33

Net changes of items otherthan shareholders’ equity(4,417)－734(1,860)(5,543)14(5,528)

Total changes of items during
period(4,417)－734(1,860)(5,543)

14(12,415)

Balance at March 31, 2022

7,442

1,479

745

(332)

9,334

717

58,24214

FY2022 (April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity
Common stock
Balance at April 1, 2021

Capital surplus

Retained earnings

16,503

16,602

16,533

Treasury stock

Total shareholders’equity(1,448)48,190Changes of items during period
Dividend of surplus

(452)

(452)

452

452

Net income attributable toowners of the parent
Decrease due to additional acquisitionof shares of consolidated subsidiaries

(24)

(24)

Acquisition of treasury stock(32)

Disposal of treasury stock

(0)

(0)

65

33

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at March 31, 2022

－

(57)

0

65

8

16,533

16,445

16,602(1,382)

48,199

Accumulated other comprehensive income
Net unrealized Surplus arising
gains onfrom land
securities
revaluation
Balance at April 1, 2022

7,442Translation
adjustments

1,479

745

Retirement
benefits
liability
adjustments

Total
accumulated
othercomprehensive
income

(332)

9,334

Noncontrollinginterests

Total net assets

717

58,242

Changes of items during period(452)

Dividend of surplus
Net income attributable toowners of the parent

452

Decrease due to additional acquisitionof shares of consolidated subsidiaries(24)

Acquisition of treasury stock(0)

Disposal of treasury stock33

Net changes of items otherthan shareholders’ equity

(1)

－

(183)

374

189

23

212

Total changes of items during
period

(1)

－

(183)

374

189

23

221

7,440

1,479

562

41

9,524

740

58,464

Balance at March 31, 202215

(4) Consolidated Statement of Cash FlowsFY2021(From April 1, 2021
to March 31, 2022)
Cash flows from operating activities
Net income (loss) before income taxes
Depreciation and amortization
Amortization of goodwill
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Increase (decrease) in provision for bonuses to
employees
Increase (decrease) in provision for product warranty
Increase (decrease) in net liabilities for retirement
benefits
Loss (gain) on sales of investments in securities
Loss (gain) on sales and retirement of property, plantand equipment
Subsidy income
Loss on fire
Decrease (increase) in notes and accounts receivable
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from casualty insurance claims
Proceeds from subsidy income
Income taxes (paid) refunded
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from withdrawal of time deposits
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 provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) 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 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 the beginning of the year
Cash and cash equivalents at the end of the quarter

16(Millions of yen)
FY2022(From April 1, 2022
to March 31, 2023)(4,560)
6,176
128
6,407
(11)
(342)
386
(9)
(23)
(1,058)
(445)

2,287
5,650
－
50
(12)
(369)
538
(36)
(26)
(142)
(1,632)

210

24

(58)
－
(892)
(1,544)2,209(1,041)
5,530
342
(357)
157
58
(1,899)
3,831

(29)
228
108
(788)
(170)
(1,417)
4,262
369
(458)
174
29
(1,266)3,110

26(3,700)
37
(4)
581
(7)
17
(137)
(3,186)－(3,070)
75
(4)
2,444
(18)
5
(424)
(993)

2,243
2,751
(5,570)(993)(2)(1,002)(2,573)(67)(1,995)
12,49810,503

1,342
8,807(10,278)
(453)
(1)
(959)
(1,542)(4)569
10,503
11,072

(5) Notes to Consolidated Financial Statements(Note regarding assumption of going concern)
Not applicable.
(Significant matters that serve as the basis of preparation of consolidated financial statements)(Matters related to scope of consolidation)
Consolidated subsidiaries 39
Major subsidiaries:
Sekisui Kasei Hokkaido Co., Ltd., Sekisui Kasei Kansai Co., Ltd., Sekisui Kasei Toubu Co., Ltd.,Sekisui Kasei Seibu Co., Ltd., Sekisui Kasei Chubu Co., Ltd., Sekisui Kasei Yamakyu Co., Ltd.,Sekisui Kasei Europe B.V., Proseat Europe GmbH, Sekisui Kasei U.S.A., Inc., Sekisui Kasei
Mexico S.A. de C.V., Sekisui Kasei Korea Co., Ltd., Sekisui Kasei Taiwan Co., Ltd., Sekisui Kasei(Shanghai) International Trading Co., Ltd., Sekisui Kasei (Thailand) Co., Ltd., PT. Sekisui Kasei
Indonesia(Segment Information)<Segment Information>
1. Outline of reported segments
The reportable segments of the Company are components for which discrete financial
information is available, and whose operating results are regularly reviewed by the Board of
Directors to make decisions about resource allocation and to assess performance.
The Company’s business revolves mainly around plastics. The Company has establishedbusiness divisions based on product markets and applications for global development in the twosegments of Human Life and Industry. Each division works closely with subsidiaries to planoverall strategies and operate its business.
Accordingly, the Group consists of segments by product market and application on the basis of
the divisions and has two reportable segments “Human Life” and “Industry.”
Human Life Segment primarily manufactures and sells boxes and trays for agricultural andfishery products, food containers, and housing and civil engineering materials, etc. The main
products for Industry Segment include automobile components, digital consumer electronics
components, packaging materials and other related products.
2. Methods used for calculating sales, income (or loss), assets and other items of each reportablesegment
The accounting policies of the segments are the same as those stated in “Significant matters thatserve as the basis of preparation of consolidated financial statements.”
Segment income is based on ordinary income. Inter-segment sales and transfers are based onprevailing market prices.

17

3. Information on sales, income (or loss), assets and other items of each reportable segment
FY2021 (April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable Segments
Human Life
Segment

Industry
Segment

Total

Adjustments andeliminations (*1)

Total (*2)

Net sales:
49,39121,801
71,193
71,193
Japan
30,25430,25430,254
Europe137
13,561
13,698
13,698
Asia
1
2,419
2,420
2,420
Other
Earnings from contracts with
49,53068,036
117,567
117,567
customers
Other earnings
49,53068,036
117,567
117,567
Sales to third parties
Intersegment sales and transfers
611
133
745
(745)
Total
50,141
68,170118,312(745)
117,567
3,376(1,777)
1,598
(196)
1,401
Segment income (loss)
66,05059,708125,758
17,549143,308
Segment assets
Other items
1,903
3,535
5,438
738
6,176
Depreciation and amortization
128
128
128
Amortization of goodwill
Increase in property, plant and
1,229
1,856
3,086
739
3,825
equipment and intangible assets(Notes)1. Adjustments and eliminations in the preceding table were as follows:(1) Segment income in the amount of (196) million yen includes elimination of inter-segment transactions in theamount of 1 million yen and unallocated corporate expenses of (198) million yen.
(2) Segment assets in the amount of 17,549 million yen consisted primarily of investments in securities and assets
related to administrative departments and the Central R&D Laboratory owned by the Company.
(3) Depreciation and amortization in the amount of 738 million yen include amortization of long-term pre-paid
expenses, and consisted primarily of depreciation of assets related to administrative departments and the Central R&D
Laboratory owned by the Company.
(4) Increase in property, plant and equipment and intangible assets in the amount of 739 million yen consisted
primarily of assets related to the Central R&D Laboratory owned by the Company.
2. Segment income was adjusted for ordinary income in the consolidated statement of income.
3. Names of major products belonging to each segment- Human Life Segment: ESLEN Beads, ESLEN Sheets, ESLEN Wood, INTERFOAM, other foamed / molded products
using these materials, ES Dan Mat, ESLEN Block, etc.
- Industry Segment: PIOCELAN, LIGHTLON, NEOMICROLEN, CELPET, TECHPOLYMER, ST-gel, TECHEATER,
ELASTIL, FOAMAC, ST-LAYER, ST-Eleveat, other foamed/molded products using these materials, etc.

18

FY2022 (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable Segments
Human Life
Segment

Industry
Segment

Total

Adjustments andeliminations (*1)

Total (*2)

Net sales:
52,47022,76475,23475,234
Japan
33,103
33,103
33,103
Europe131
12,524
12,655
12,655
Asia
3,689
3,689
3,689
Other
Earnings from contracts with
52,602
72,081
124,683
124,683
customers
Other earnings
52,602
72,081
124,683
124,683
Sales to third parties
Intersegment sales and transfers
565
161
726
(726)
Total
53,167
72,242
125,410(726)
124,683
2,585
(400)
2,185
(1,481)704
Segment income (loss)
67,06360,314
127,378
17,796145,175
Segment assets
Other items
1,852
3,024
4,877
773
5,650
Depreciation and amortization
Amortization of goodwill
Increase in property, plant and
1,387
1,614
3,002
680
3,682
equipment and intangible assets(Notes)1. Adjustments and eliminations in the preceding table were as follows:(1) Segment income in the amount of (1,481) million yen includes elimination of inter-segment transactions in theamount of (1) million yen and unallocated corporate expenses of (1,480) million yen.
(2) Segment assets in the amount of 17,796 million yen consisted primarily of investments in securities and assets
related to administrative departments and the Central R&D Laboratory owned by the Company.
(3) Depreciation and amortization in the amount of 773 million yen include amortization of long-term pre-paid
expenses, and consisted primarily of depreciation of assets related to administrative departments and the Central R&D
Laboratory owned by the Company.
(4) Increase in property, plant and equipment and intangible assets in the amount of 680 million yen consisted
primarily of assets related to the Central R&D Laboratory owned by the Company.
2. Segment income was adjusted for ordinary income in the consolidated statement of income.
3. Names of major products belonging to each segment- Human Life Segment: ESLEN Beads, ESLEN Sheets, ESLEN Wood, INTERFOAM, other foamed / molded products
using these materials, ES Dan Mat, ESLEN Block, etc.
- Industry Segment: PIOCELAN, LIGHTLON, NEOMICROLEN, CELPET, TECHPOLYMER, ST-gel, TECHEATER,
ELASTIL, FOAMAC, ST-LAYER, ST-Eleveat, other foamed/molded products using these materials, etc.

19

<Related information>
FY2021 (April 1, 2021 to March 31, 2022)
1. Information by product and service
Omitted as information is categorized the same as for the reportable segments.
2. Information by region(1) Net sales(Millions of yen)Japan

Europe71,193

Asia
30,254

Other
13,698

Total
2,420

117,567(Note) Net sales are categorized by region based on customer location.

(2) Property, plant and equipment(Millions of yen)Japan

EuropeAsia

45,016

Other

4,159

4,506

Total
1,970

55,652

3. Information by major customer(Millions of yen)
Customer or individual name

Net sales

Related segment

FP Corporation

15,467

Human Life Segment

FY2022 (April 1, 2022 to March 31, 2023)
1. Information by product and service
Omitted as information is categorized the same as for the reportable segments.
2. Information by region(1) Net sales(Millions of yen)Japan

Europe75,173

Asia
33,103

Other
12,716

Total
3,689

124,683(Note) Net sales are categorized by region based on customer location.

(2) Property, plant and equipment(Millions of yen)Japan

Europe43,271

Asia
4,201

Other
4,239

Total
1,990

53,702

3. Information by major customer(Millions of yen)
Customer or individual name

Net sales

FP Corporation

Related segment
17,381

20

Human Life Segment

<Information concerning impairment loss on non-current assets in each reportable segment>
FY2021 (April 1, 2021 to March 31, 2022)(Millions of yen)
Human Life
Segment

Industry
Segment
6,407－

Impairment loss

Corporate/
Eliminations

Total
－

6,407

FY2022 (April 1, 2022 to March 31, 2023)(Millions of yen)
Human Life
Segment
Impairment loss

Industry
Segment－

Corporate/
Eliminations

Total
－

50

50

<Information regarding amortization of goodwill and unamortized balance of goodwill by eachreportable segment >FY2021 (April 1, 2021 to March 31, 2022)(Millions of yen)
Human Life
Segment

Industry
Segment－－

Amortization of goodwill
Unamortized balance of goodwill

Corporate/
Eliminations

Total
－
－

128
－

128
－

FY2022 (April 1, 2022 to March 31, 2023)
Not applicable.

(Per share information)
FY2021(From April 1, 2021
to March 31, 2022)
Net assets per share

FY2022(From April 1, 2022
to March 31, 2023)

1,272.86 yen

1,275.00 yen

Net income per share(130.99) yen(Notes) 1. Diluted net income per share has not been presented as there are no potentially dilutive shares.

10.00 yen

(Notes) 2. Basis for computation of net assets per share is as follows.
FY2021

FY2022(As of March 31, 2022)(As of March 31, 2023)

58,242

58,464

717

740

(717)

(740)

Net assets related to common stock at the fiscal year-end (million yen)

57,52557,723

Number of shares of common stock outstanding (thousands)

46,98846,988

Number of shares of treasury stock (thousands)

1,794

1,714

Number of shares of common stock at fiscal year-end used incomputing net assets per share (thousands)

45,19345,273

Total net assets (million yen)Amounts deducted from total net assets (million yen)(of which, equity of non-controlling interests (million yen))

21

(Notes) 3. Basis for computation of net income per share is as follows.
FY2021

FY2022(From April 1,2021
to March 31, 2022)(From April 1, 2022
to March 31, 2023)

Net income per share
Net income attributable to owners of the parent (million yen)

(5,917)452

Amount not attributable to common shareholders (million yen)－－

Net income related to common stock attributable to owners of
the parent (million yen)

(5,917)452

Average number of shares during the period (thousands)

45,17645,250(Subsequent events)
Not applicable.

22