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)
April 25, 2023
Company name:NIPPON SHARYO, LTD.

Stock exchange listing: Tokyo, Nagoya
Stock code:
7102
URL
Representative:
Inquiries:

https://www.n-sharyo.co.jp

President and CEO
General Manager,

Kazuhiro Igarashi
Kenichi Nagata

General Affairs Department
Scheduled date of ordinary general meeting of shareholders:

TEL052-882-3316

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:

NoNo(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 changesProfit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
4.2
4,461(28.5)
4,494(28.9)
3,118(40.3)
(5.5)
6,237
(31.1)
6,317(32.1)
5,226(34.1)Net salesYear ended March 31, 2023
Year ended March 31, 2022

Millions of yen
97,96994,022

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
6.3
3.5
4.6
–
11.2
4.7
6.6

Diluted earnings pershare

Earnings per share
Yen216.08362.14

Year 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
124,363
132,868

Millions of yen
51,12348,018Cash flows fromoperating activities
Millions of yen
7,152
14,507

Cash flows frominvesting activities
Millions of yen(1,579)(2,637)

Net assets per share%
41.0
36.0

Yen
3,531.25
3,316.74(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(11,431)
23,263(3,571)
29,111

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

%%

––

10.00
10.00

––

10.00
10.00

20.00
20.00288
288

5.5
9.3

0.6
0.6

–

10.00

–

10.00

20.00

19.0

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Full year

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
88,000 (10.2)
4,100(8.1)
4,200(6.5)
3,200
2.6
221.73

4. 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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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

14,675,012 shares As of March 31, 2022

14,675,012 shares

Number of treasury shares at the end of the period
As of March 31, 2023

243,535 shares As of March 31, 2022

242,928 shares

14,431,752 shares Year ended March 31, 2022

14,432,546 shares

Average number of shares during the period
Year ended March 31, 2023

2

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

3,559
18,7203,570
19,556

Electronically recorded monetary claims - operating
Merchandise and finished goods

1,392
965

2,381
1,602

Semi-finished goods
Work in process

1,147
27,431

1,169
22,229Raw materials and supplies
Short-term loans receivable

1,486
25,752

1,826
19,893

935
(30)

701
(5)

81,362

72,925

Buildings and structures, net
Machinery, equipment and vehicles, net

7,378
4,665

7,122
4,205

Land
Leased assets, net

14,171
1,210

14,142
1,199

177
760

198
682

28,36327,551Intangible assetsInvestments and other assets

529

423

Investment securities
Deferred tax assets

16,601
148

17,144143

Retirement benefit asset
Other

5,127
744

5,302
880

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Construction in progress
Other, net
Total property, plant and equipment

Allowance for doubtful accounts

(8)

(8)

Total investments and other assets

22,612

23,462

Total non-current assets
Total assets

3

51,50551,437

132,868

124,363(Millions of yen)
As of March 31, 2022

As of March 31, 2023Liabilities
Current liabilities
Notes and accounts payable - trade

8,230

7,045

Electronically recorded obligations - operating
Current portion of long-term borrowings

10,513
3,370

8,915
3,194

Accrued expenses
Income taxes payable

2,201
711

2,781
486

Advances received
Provision for bonuses

1,076
1,785

497
1,976

271
49487
500

Other

2,763

3,626

Total current liabilities

30,97329,510Long-term borrowings
Lease liabilities

48,762
1,298

38,165
1,345

Deferred tax liabilities
Provision for compensation for health damage from

3,265

3,64410575

280

291

163

207

53,87543,72984,84973,240Share capital
Retained earnings

11,81030,396

11,81033,225

Treasury shares

(521)

(523)

41,68544,513

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

6,329(2,243)

6,732(2,240)Remeasurements of defined benefit plans

2,096

1,956

Total accumulated other comprehensive income

6,182

6,448

Provision for loss on construction contracts
Provision for loss on orders received

Non-current liabilities

asbestos
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

4151

162

48,01851,123

132,868

124,363

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

94,022

97,969

Cost of sales

80,73185,428Gross profit

13,29012,541

Selling, general and administrative expenses

7,052

8,079

Operating profit

6,237

4,461

Non-operating income
Interest income

4128

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

239
63

278
27

Foreign exchange gains
Rental income

16
41

047

Insurance claim income
Other

2965

27
23

Total non-operating income

498

434

344

324

73

76

Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets

417

401

6,317

4,494

16145

Gain on sale of investment securities
Other1571810–

Total extraordinary income

192

155

180

150

Impairment losses
Loss on sale of investment securities

2440–
1

Loss on repayments of long-term dept
Other–
42264
2

Total extraordinary losses

468

418

Profit before income taxes

6,041

4,231

Income taxes - current
Income taxes - deferred

886
(87)

817
279

Total income taxes

798

1,097

5,243

3,134

Extraordinary losses
Loss on sale and retirement of non-current assets

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

51616

5,226

3,118

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
5,243

3,134(2,321)
(14)

376
264(139)426(2,267)

265

Comprehensive income

2,975

3,400

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,959

3,384

1616

Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income

Comprehensive income 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

Retained earnings

11,81025,409Cumulative effects ofchanges in accounting
policies
Restated balance

Total shareholders'equity

Treasury shares(519)

36,69949
11,81049

25,458(519)

36,748Changes during period
Dividends of surplus

(288)

(288)

Profit attributable to ownersof parent

5,226

5,226

Purchase of treasury shares

(1)

(1)

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

–

4,937

(1)

4,936

11,81030,396(521)

41,685

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of period

8,646

Foreigncurrencytranslation
adjustment

Total accumulated
otherof defined benefit
comprehensiveplansincomeRemeasurements(2,228)

2,031

8,449

Noncontrollinginterests

Total net assets

138

45,288Cumulative effects ofchanges in accounting
policies
Restated balance

49
8,646(2,228)

2,031

8,449

138

45,337

Changes during period
Dividends of surplus(288)

Profit attributable to ownersof parent

5,226

Purchase of treasury shares(1)

Net changes in items otherthan shareholders' equity(2,317)

Total changes during period(2,317)

Balance at end of period

6,329

(14)

64(2,267)(14)

64(2,267)

12

2,681

(2,243)

2,096

6,182

151

48,0187

12(2,254)

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

Retained earnings

11,810Total shareholders'equityTreasury shares

30,396(521)

41,685

Changes during period
Dividends of surplus

(288)

(288)

Profit attributable to ownersof parent

3,118

3,118

Purchase of treasury shares

(1)

(1)

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

–

2,829

(1)

2,827

11,81033,225(523)

44,513

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of period

6,329

Total accumulated
otherof defined benefit
comprehensive
plansincomeForeigncurrencytranslation
adjustment

Remeasurements(2,243)

2,096

6,182

Noncontrollinginterests

Total net assets

151

48,018Changes during period
Dividends of surplus(288)

Profit attributable to ownersof parent

3,118

Purchase of treasury shares(1)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period403

2(139)

265

11276

403

2(139)

265

11

3,104

6,732

(2,240)

1,956

6,448

162

51,1238

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
6,041

4,231

Depreciation
Impairment losses

2,693
244

2,706
–

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

8(188)(25)
190

Increase (decrease) in provision for loss on construction
contracts

240

215

Increase (decrease) in provision for loss on orders received
Increase (decrease) in provision for environmental measures

49(104)451
2

Increase (decrease) in provision for compensation for healthdamage from asbestos

13(30)

Increase (decrease) in retirement benefit liability
Interest and dividend income

20(280)11(307)

Insurance claim income
Interest expenses

(29)
344

(27)
324

Share of loss (profit) of entities accounted for using equity
method

(63)

(27)

(157)

(8)

14(123)

–

264

9,319
(1,405)(1,822)
4,203

967
(95)

(2,783)(585)

Decrease (increase) in retirement benefit asset
Other, net(118)(1,566)

(376)
1,678

Subtotal

15,948

8,163

278
29308
27

Interest paid
Income taxes refund (paid)(348)(1,401)(325)(1,021)

Net cash provided by (used in) operating activities

14,507

7,152(0)(0)(2,560)59(1,732)
185

(2)
44(0)
197(176)(231)(2,637)(1,579)Loss (gain) on sale of investment securities
Loss (gain) on sale and retirement of property, plant andequipment
Loss on repayments of long-term dept
Decrease (increase) in trade receivables and contract assets
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received

Interest and dividends received
Proceeds from insurance income

Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Other, net
Net cash provided by (used in) investing activities

9

(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

Cash flows from financing activities
Proceeds from long-term borrowings

190

109

Repayments of long-term borrowings
Dividends paid(3,363)(287)(11,147)
(287)

(111)

(106)

Net cash provided by (used in) financing activities(3,571)(11,431)

Effect of exchange rate change on cash and cash equivalents

46

9Other, net

Net increase (decrease) in cash and cash equivalents

8,344(5,848)Cash and cash equivalents at beginning of period

20,766

29,111

Cash and cash equivalents at end of period

29,111

23,26310