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.

October 31, 2023

Consolidated Financial Results for
the First Six Months of the Fiscal Year Ending March 31, 2024
(Under Japanese GAAP)
Company name:
Konishi Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4956
URL:
https://www.bond.co.jp/
Representative:
Keiichi Oyama, Representative Director and President
Inquiries:
Shinichi Okamoto, Director and Managing Executive Officer
Telephone:+81-6-6228-2877
Scheduled date to file quarterly securities report:
November 10, 2023
Scheduled date to commence dividend payments:
December 8, 2023
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the first six months of the fiscal year ending March 31, 2024
(from April 1, 2023, to September 30, 2023)(1) Consolidated operating results (YTD)
Net sales(Percentages indicate year-on-year changes.)
Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

65,317

12.3

4,939

71.1

5,208

61.1

3,396

(51.7)

58,1487.8

2,886(15.8)

3,232(11.9)

7,030

195.2

First six months
ended September 30,
2023
First six months
ended September 30,
2022
Note: Comprehensive income

First six months ended September 30, 2023
First six months ended September 30, 2022

Basic earnings
per share

4,902 Millions of yen [(34.5%)]
7,481 Millions of yen [(159.7%)]

Diluted earnings
per share

YenFirst six months
ended September 30,
2023
First six months
ended September 30,
2022

Profit attributable toowners of parent

Ordinary profit

Yen

98.88

-

197.17-(2) Consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

First six months
ended September 30,
2023

136,234

80,58955.7

As of March 31, 2023

132,874

81,482

57.9

Reference:

EquityFirst six months ended September 30, 2023
As of March 31, 2023

75,832 Millions of yen
76,975 Millions of yen%

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen
As of March 31, 2023

-

27.00

As of March 31, 2024

-

27.00

Fiscal year ending
March 31, 2024
(forecast)Fiscal year-end

Total

Yen

Yen

-

22.00

49.00

-

27.00

54.00

Note: Revisions to the forecasts of cash dividends most recently announced: None
Breakdown of dividends at the end of the second quarter for the fiscal year ended March 31, 2023: Ordinary dividend ¥22.00;
70th anniversary of the launch of bond (synthetic adhesive) commemorative dividend ¥5.00

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023, to March
31, 2024)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2024

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basic earnings
per share

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

129,000

4.6

9,300

25.3

9,700

22.4

6,200

(38.2)

175.10Note: Revisions to the consolidated earnings forecasts most recently announced: None
The main reason for the large fluctuation compared with the same period of the previous year in profit attributable to ownersof parent is that a gain on sale of non-current assets due to the transfer of non-current assets was generated for the first six
months of the fiscal year ended March 2023.

* Notes(1) Changes in significant subsidiaries during the first six months ended September 30, 2023 (changes in
specified subsidiaries resulting in the change in scope of consolidation): None
Included: 0 companies, excluded 0 companies(2) Application of special accounting for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

40,707,440 shares

As of March 31, 2023

40,707,440 shares(ii) Number of treasury shares at the end of the period
As of September 30, 2023

7,497,589 shares

As of March 31, 2023

5,298,801 shares(iii) Average number of shares outstanding during the period
As of September 30, 2023

34,350,962 shares

As of September 30, 2022
35,656,632 shares(Notes) The Company cancelled 5,500,000 treasury shares on October 13, 2023, pursuant to a resolution of the Board of
Directors held on September 26, 2023.

* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Caution regarding forward-looking statements and others
Forward-looking statements, including the earnings forecasts stated in these materials, are based on information
currently available to the Company and certain assumptions deemed reasonable. Results may differ materiallyfrom the earnings forecasts due to various factors. For the assumptions used as the basis for the earnings forecasts
and special remarks regarding the use of the earnings forecasts, please refer to “1. Qualitative information
regarding financial results for the first six months (3) Explanation of consolidated earnings forecasts and otherforward-looking statements” on page 3 (Attached Material).
Means of access to contents of supplementary material on quarterly financial results and quarterly financial
results briefing
The Company is scheduled to hold a quarterly financial results briefing for analysts and institutional investors
on Tuesday, November 28, 2023. The Company plans to upload the supplementary materials used for thequarterly financial results briefing on this date on the Company website promptly after the briefing has concluded.

Konishi Co., Ltd. (4956)

Index
1.

Qualitative information regarding financial results for the first six months ...................................................... 2(1) Explanation of operating results ................................................................................................................... 2(2) Explanation of financial position ................................................................................................................. 3(3) Explanation of consolidated earnings forecasts and other forward-looking statements ............................... 4
2. Quarterly consolidated financial statements and significant notes thereto ........................................................ 5(1) Consolidated balance sheet .......................................................................................................................... 5(2) Consolidated statement of income (cumulative) and consolidated statement of comprehensive income(cumulative) ................................................................................................................................................. 7(3) Consolidated statement of cash flows .......................................................................................................... 9(4) Notes to quarterly consolidated financial statements ................................................................................. 10
Notes on premise of going concern ................................................................................................................. 10
Notes on significant changes in the amount of shareholders’ equity ............................................................... 10
Segment information ....................................................................................................................................... 10
Significant subsequent events ...........................................................................................................................11-1-

Konishi Co., Ltd. (4956)
1.

Qualitative information regarding financial results for the first six months(1) Explanation of operating results
During the first six months under review, the Japanese economy returned to a moderate recovery as the legal
status of the COVID-19 pandemic was shifted and socioeconomic activities became more normalized. On theother hand, the situation affecting economic activities, such as soaring prices of resources/energy and raw
materials due to the situation in Ukraine, global monetary tightening, and the ongoing depreciation of the yen,has been prolonged. Therefore, the outlook remains uncertain.
In this business environment, the Group has launched its newly formulated “Medium-Term Management Plan
2026 (Fiscal Period Ending March 2024 to Fiscal Period Ending March 2026).” Based on this plan, the Groupwill work to strengthen new business development and focus on growth areas; make its largest-ever capital
investments in production, logistics, and DX-related areas; and carry out new capital policies. Through these
efforts, the Group will further expand its business and improve management efficiency.
As a result, the Group’s operating results for the first six months under review were as follows. Net sales
increased 12.3% year on year to 65,317 million yen, operating profit grew 71.1% year on year to 4,939 million
yen, ordinary profit was up 61.1% year on year to 5,208 million yen, and profit attributable to owners of parent
fell 51.7% year on year to 3,396 million yen due to the recording of a gain on sale of non-current assets resulting
from the transfer of non-current assets in the second quarter of the fiscal year ended March 31, 2023.
Results by segment are as follows.
(i) Bond
In the general household field, sales through convenience stores and home improvement stores remained
steady. In the housing-related field, construction costs continued to be on an upward trend. The sales
volumes of adhesives for interior work decreased as the recovery of new housing starts was slow. In theindustrial material field, the sales volumes of water-based adhesives used in paper-related applications
decreased, but the sales volumes of elastic adhesives for automotive use, etc., increased. In the civilengineering and construction field, sales volumes of sealing materials for construction and civil engineeringand materials used in construction methods for preventing flaking increased in line with an increase inrenovation projects.
The prices of raw materials used in adhesives and sealants still continued to rise. However, efforts for costsaving and cost improvement, and reflecting cost in product sales prices progressed, resulting in higher net
sales and operating profit.
As a result of the above, net sales grew 6.6% year on year to 35,384 million yen and operating profit
increased 82.0% year on year to 3,237 million yen.
(ii) Chemicals
In the chemical engineering field, sales of heat-dissipating materials increased despite a decrease in salesof resin raw materials. In the automobile field, sales of products for hybrid vehicles were strong. On theother hand, profit from merchandise for electronic and electrical appliances declined due to the impact of
weaker demand for personal consumer products such as PCs, tablets, and smartphones. In addition, products
for use in capacitors and semiconductor manufacturing equipment decreased at Maruyasu & Co., Ltd.
As a result of the above, net sales increased 15.8% year on year to 19,643 million yen and operating profit
fell 7.4% year on year to 629 million yen.
(iii) Construction
In the Construction Business, repair, improvement, and reinforcement works in the infrastructure and(housing) stock markets, particularly for public works, were continuously steady. The progress of-2-

Konishi Co., Ltd. (4956)
construction was also good. As a result, net sales and operating profit of all five related construction
companies increased significantly.
As a result of the above, net sales grew 29.2% year on year to 10,199 million yen and operating profit
increased 120.9% year on year to 1,002 million yen.
(iv) Other
The “Other” segment represents the Real Estate Rental Business, etc. Net sales decreased 3.7% year on
year to 88 million yen and operating profit was 58 million yen (operating loss of 30 million yen in the same
period of the previous year).
(2) Explanation of financial position
Assets, liabilities and net assets
Total assets as of September 30, 2023 increased 3,359 million yen from the previous fiscal year-end to 136,234
million yen.
(i) Assets
Current assets increased 433 million yen from the previous fiscal year-end to 94,867 million yen. This was
mainly due to an increase of 1,113 million yen in electronically recorded monetary claims - operating and
an increase of 689 million yen in notes and accounts receivable - trade, and contract assets, despite adecrease of 940 million yen in cash and deposits. Non-current assets increased 2,925 million yen from theprevious fiscal year-end to 41,366 million yen mainly due to an increase of 1,576 million yen in property,
plant and equipment and an increase of 1,601 million yen in investment securities.
(ii) Liabilities
Current liabilities increased 3,708 million yen from the previous fiscal year-end to 49,564 million yen
mainly due to an increase of 4,278 million yen in notes and accounts payable - trade, despite a decrease of
1,773 million yen in income taxes payable. Non-current liabilities grew 544 million yen from the previous
fiscal year-end to 6,080 million yen mainly due to an increase of 526 million yen in other.
(iii) Net assets
Net assets were down 893 million yen from the previous fiscal year-end to 80,589 million yen, mainly due
to an increase of 4,956 million yen in treasury shares, an item that reduces net assets because the company
has to acquire such shares with its own cash, despite an increase of 2,617 million yen in retained earnings
and an increase of 972 million yen in valuation difference on available-for-sale securities.
(iv) Cash flows
Cash and cash equivalents (hereinafter “cash”) decreased by 1,050 million yen during the first six months
under review (an increase of 8,126 million yen in the same period of the previous year). This comprised
net cash provided by operating activities of 6,225 million yen (2,953 million yen increase year on year),net cash used in investing activities of 1,503 million yen (an increase of 5,745 million yen in the same
period of the previous year), and net cash used in financing activities of 5,837 million yen (4,818 million
yen increase year on year).
As a result, the balance of cash as of September 30, 2023 amounted to 30,218 million yen.
(a) Cash flows from operating activities
Net cash provided by operating activities was 6,225 million yen (up 2,953 million yen year on year).
This was mainly due to profit before income taxes of 5,206 million yen, an increase in trade payablesof 4,153 million yen, and depreciation of 864 million yen, despite income taxes paid of 3,258 million
yen, and an increase in trade receivables and contract assets of 1,691 million yen.

-3-

Konishi Co., Ltd. (4956)(b) Cash flows from investing activities
Net cash used in investing activities was 1,503 million yen (provided 5,745 million yen in the same
period of the previous year). This was mainly due to purchase of property, plant and equipment of
1,710 million yen, and payments into time deposits of 589 million yen, despite proceeds fromwithdrawal of time deposits of 1,045 million yen.
(c) Cash flows from financing activities
Net cash used in financing activities was 5,837 million yen (up 4,818 million yen year on year). Thiswas mainly due to purchase of treasury shares of 5,045 million yen, and dividends paid of 780 million
yen.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
There are currently no changes to the earnings forecast announced on April 28, 2023.

-4-

Konishi Co., Ltd. (4956)
2.

Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and deposits

32,19531,254

Notes and accounts receivable–trade, and contract
assets34,75235,441

Electronically recorded monetary claims–operating

14,667

15,781

Merchandise and finished goods

9,355

9,290

Work in process

314

283

Raw materials and supplies

1,640

1,512

Other

1,565

1,454

Allowance for doubtful accounts

(57)

(151)

94,434

94,867

Property, plant and equipment

25,74627,322Intangible assets

1,188

1,563

Investment securities

8,084

9,685

Other

3,440

2,812

Allowance for doubtful accounts

(17)

(17)

Total investments and other assets

11,506

12,48038,44041,366

132,874

136,234

Total current assets
Non-current assets

Investments and other assets

Total non-current assets
Total assets-5-

Konishi Co., Ltd. (4956)(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Notes and accounts payable–trade33,98338,262

Electronically recorded obligations–operating

3,728

3,701

Short-term borrowings

48

176

Current portion of long-term borrowings

60

47

Income taxes payable

3,298

1,525

Provision for bonuses

1,152

1,227

131

53

Other

3,450

4,570

Total current liabilities

45,85649,564Long-term borrowings

116

96

Retirement benefit liability

645

683

Other

4,774

5,301

Total non-current liabilities

5,536

6,080

51,39255,645

Share capital

4,603

4,603

Capital surplus

4,557

4,585

Retained earnings

69,45072,067

Treasury shares(5,904)(10,860)

Total shareholders’ equity

72,70770,395

2,611

3,584

Provision for bonuses for directors (and otherofficers)

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(0)

(0)

Foreign currency translation adjustment

450

713

Remeasurements of defined benefit plans

1,206

1,139

Total accumulated other comprehensive income

4,268

5,436

Non-controlling interests

4,507

4,756

Total net assets

81,48280,589132,874

136,234

Total liabilities and net assets-6-

Konishi Co., Ltd. (4956)(2) Consolidated statement of income (cumulative) and consolidated statement of comprehensive income(cumulative)
Consolidated statement of income (cumulative)(Millions of yen)Six months ended September 30,
2022

Six months ended September 30,
2023

Net sales

58,14865,317

Cost of sales

47,20452,350Gross profit

10,943

12,966

Selling, general and administrative expenses

8,057

8,026

Operating profit

2,886

4,939

Interest income

88Dividend income

135

132

Foreign exchange gains

131

106

Share of profit of entities accounted for using equity
method

12

19

Other

94

84

Total non-operating income

382

350

Interest expenses

44Commission expenses-

45

Depreciation

12

25

Other

20

6

Total non-operating expenses

37

82

3,232

5,208

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of investment securities

0108

Gain on sale of non-current assets

7,184

2

Total extraordinary income

7,184

110

Loss on disposal of non-current assets

525

Provision of allowance for loan losses

-

84

Other

0

1

Total extraordinary losses

5112Profit before income taxes

10,411

5,206

Income taxes–current

3,105

1,573

Income taxes–deferred

125

47

Total income taxes

3,230

1,620

Profit

7,180

3,586

Extraordinary losses

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

-7-

149

189

7,030

3,396

Konishi Co., Ltd. (4956)
Consolidated statement of comprehensive income (cumulative)(Millions of yen)Six months ended September 30,
2022

Six months ended September 30,
2023

7,180

3,586

(137)

1,066

(0)

(0)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

444

280

Remeasurements of defined benefit plans, net of tax

(37)

(67)

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

31

36

Total other comprehensive income

300

1,316

7,481

4,902

Comprehensive income attributable to owners of parent

7,310

4,564

Comprehensive income attributable to non-controllinginterests

170

337

Comprehensive income
Comprehensive income attributable to-8-

Konishi Co., Ltd. (4956)(3) Consolidated statement of cash flows(Millions of yen)Six months ended
September 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sale of investment securities
Loss (gain) on disposal of property, plant and equipment
Loss (gain) on sale of property, plant and equipment
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and other officers)
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Decrease (increase) in trade receivables and contract assets
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities
Other

Six months ended
September 30, 2023

10,4111,030
64
0
2(7,184)
1
60
(60)
(23)
47
(144)
4
(12)
(266)
(1,214)
1,250
70
8
404

5,206
864
63
(108)
4
13
91
73
(77)
(52)
8
(141)
4
(19)
(1,691)
240
4,153
345
59
307

4,450
144
(4)
(1,318)

9,346
141
(4)
(3,258)

3,272

6,225

(510)
510
(656)
6,470
(37)
(38)
0
6
5,745

(589)
1,045
(1,710)
88
(435)
(59)
153
3
(1,503)

(6)
(145)
(11)
(0)
(784)
(72)
0
(1,019)

120
(33)
(10)
(5,045)(780)(87)(5,837)

128

65

Net increase (decrease) in cash and cash equivalents

8,126(1,050)Cash and cash equivalents at beginning of period

25,51431,268Cash and cash equivalents at end of period

33,641

30,218SubtotalInterest and dividends received
Interest paid
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Other
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents-9-Konishi Co., Ltd. (4956)(4) Notes to quarterly consolidated financial statements
Notes on premise of going concern
Not applicable.
Notes on significant changes in the amount of shareholders’ equity
The Company acquired 2,231,100 shares of treasury shares pursuant to a resolution of the Board of Directors
held on June 20, 2023. As a result, treasury shares increased by 5,000 million yen during the first six months
under review, including the acquisition through the purchase of odd-lot shares.
As a result of this and other impacts, treasury shares were 10,860 million yen as of September 30, 2023.
Segment information
1.

Disclosure of net sales and profit or loss by reportable segment
Six months ended September 30, 2022
(Millions of yen)
Adjustments(Note) 2

Amount inconsolidated
statement ofincome(Note) 3

Reportable segments
Bond

Net sales(1) Revenues fromexternal customers(2) Intersegment sales andtransfers
Total
Segment profit or loss

Total

Other
(Note) 1

7,897 58,055

92

58,148-58,148

356

41

397

(397)

-

7,897 58,412
453 2,912

133
(30)

58,545
2,882

(397)
3

58,1482,886

Chemicals Construction

33,196

16,962

173

183

33,3691,778

17,145
679

-

Total

Notes: 1. The “Other” category is a business segment not included in reportable segments, and includes the realestate rental business.
2. Adjustments of segment profit or loss represent eliminations for intersegment transactions.
3. Segment profit or loss is adjusted with operating profit in the consolidated statement of income.
Six months ended September 30, 2023
(Millions of yen)
Reportable segments
Bond
Net sales(1) Revenues from externalcustomers(2) Intersegment sales andtransfers
Total
Segment profit

Total

Other
(Note) 1

Total

10,199 65,228

88

65,317-65,317

295

37

333

(333)

-

10,203 65,523

126

65,650(333)

65,317

1,002

58

4,928

11

4,939

Chemicals Construction

35,384

19,643149

141

35,534

19,785

3,237

629

Amount inconsolidated
statement ofincome(Note) 3

3

4,869

Adjustments(Note) 2

Notes: 1. The “Other” category is a business segment not included in reportable segments, and includes the realestate rental business.
2. Adjustments of segment profit represent eliminations for intersegment transactions.
3. Segment profit is adjusted with operating profit in the consolidated statement of income.

-10-

Konishi Co., Ltd. (4956)
2.

Disclosure of impairment loss on non-current assets or goodwill, etc. by reportable segment
Not applicable.

Significant subsequent events
Cancellation of treasury shares
At a meeting of the Board of Directors held on September 26, 2023, the Company resolved matters pertaining
to the cancellation of treasury shares pursuant to the provisions of Article 178 of the Companies Act andcanceled the treasury shares.
1.
2.
3.

Class of shares cancelled
Common shares of the Company
Total number of shares cancelled
5,500,000 (13.51% of total outstanding shares before cancellation)
Date of cancellation
October 13, 2023

-11-