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 Six Months Ended September 30, 2022
(Based on Japanese GAAP)
October 28, 2022
NIPPON SHARYO, LTD.
Company name:
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

7102
URL https://www.n-sharyo.co.jp
President and CEO
Kazuhiro Igarashi

Inquiries:

General Manager,General Affairs Department

Kenichi Nagata

TEL

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

November 7, 2022
December 1, 2022

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:NoNo052-882-3316(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Six months ended September 30, 2022
44,402
4.4
1,448 (48.7)
1,507 (47.5)
1,121 (54.2)
Six months ended September 30, 2021
42,512(6.1)
2,826 (11.2)
2,868 (15.1)
2,445(2.9)
Earnings per share

Diluted earnings per share

Yen
77.68
169.46Six months ended September 30, 2022
Six months ended September 30, 2021

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
132,014132,868

As of September 30, 2022
As of March 31, 2022

Equity ratio

Millions of yen
49,10748,018

%
37.1
36.0

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
10.00
10.00

Yen–

Yen
10.00

Yen
20.00

–

10.00

20.00

Year ending March 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Full year

Millions of yen
97,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen
%
Yen
3.2
3,900 (37.5)
3,900 (38.3)
3,100 (40.7)
214.801

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) 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:

NoNo

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

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2022

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 September 30, 2022

243,299 shares As of March 31, 2022

242,928 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

14,431,887 shares Six months ended September 30, 2021

214,432,789 shares

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

As of September 30, 2022

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

3,559
18,7203,536
14,749

Electronically recorded monetary claims - operating
Merchandise and finished goods

1,392
965

1,334
1,251

Semi-finished goods
Work in process

1,147
27,431

1,155
29,900Raw materials and supplies
Short-term loans receivable

1,486
25,752

1,558
26,761

935
(30)

744
(2)

81,36280,990Land
Other, net

14,171
14,191

14,164
13,528

Total property, plant and equipment

28,363

27,693

Intangible assets
Investments and other assets

529

488

Investment securities
Retirement benefit asset

16,601
5,127

16,784
5,150

Other
Allowance for doubtful accounts

892
(8)

916
(8)

Total investments and other assets

22,612

22,84151,50551,023

132,868

132,014

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

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade

8,230

7,069

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

10,513
3,370

10,766
3,373

Income taxes payable
Advances received

711
1,076

548
786

Provision for bonuses
Provision for loss on construction contracts

1,785
271

1,966
566

Other

5,014

4,446

Total current liabilities

30,97329,524

48,762

48,397

105

83

280

296

Non-current liabilities
Long-term borrowings
Provision for compensation for health damage fromasbestos
Retirement benefit liability
Other

4,728

4,605

Total non-current liabilities

53,87553,382

84,84982,907

Total liabilities

3

(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Net assets
Shareholders' equity
Share capital

11,81011,810Retained earnings
Treasury shares

30,396(521)

31,372(522)

Total shareholders' equity

41,68542,661

6,329

6,451

Deferred gains or losses on hedges
Foreign currency translation adjustment–(2,243)0(2,239)

Remeasurements of defined benefit plans

2,096

2,079

Total accumulated other comprehensive income

6,182

6,291

151

154

48,01849,107

132,868

132,014

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

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

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2021

September 30, 2022

Net sales
Cost of sales

42,512
36,24144,40239,011Gross profit

6,270

5,390

Selling, general and administrative expenses

3,443

3,942

Operating profit

2,826

1,448

Interest income
Dividend income

16123

16148

Share of profit of entities accounted for using equity method
Other4664

61
39

Total non-operating income

250266

173

163

3544

Non-operating income

Non-operating expenses
Interest expenses
Other
Total non-operating expenses

208

207

2,868

1,507

4125

Gain on sale of investment securities
Gain on sale of golf membership

37
18

3–

Total extraordinary income

Ordinary profit
Extraordinary income
Gain on sale of non-current assets

60

129

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

85

26

Impairment losses
Loss on valuation of investment securities

15––

Other–

1

Total extraordinary losses

92

28

2,835

1,608379479

2,456

1,128

Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5117

2,445

1,121

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2021

September 30, 2022

2,456

1,128

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(884)
–105
0

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(16)
5

3(16)

3

17

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income

(892)

109

1,564

1,238

1,553

1,230

117

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

6