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.

April 26, 2022

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
(Under Japanese GAAP)
Company name:
S.T. CORPORATION
Listing:
Tokyo Stock Exchange
Securities code:
4951
URL:
https://www.st-c.co.jp/
Representative:
Takako Suzuki, Representative Executive Officer, President, COO
Inquiries:
Kouichi Yoshizawa, Executive Officer
Telephone:+81-3-3367-6314
Scheduled date to annual general meeting of shareholders:June 21, 2022
Scheduled date to commence dividend payments:
June 6, 2022
Scheduled date to file Securities Report:
June 21, 2022
Preparation of supplementary material on financial results:
Yes
Holding of quarterly financial results briefing:
None (video streaming only)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31,
2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2022

45,469

–

3,250

–

3,481

–

1,109

–

March 31, 2021

49,673

4.5

3,945

16.9

3,737

11.7

2,525

11.7

Note: Comprehensive income

For the fiscal year ended March 31, 2022:
For the fiscal year ended March 31, 2021:

Basic earnings
per share
Fiscal year ended

Diluted earnings
per shareYen¥431 million¥3,332 million

Return on equity[–%][86.9%]

Ordinary profit/
total assets

Operating profit/
net sales

Yen

%

%

%

March 31, 2022

49.91

49.91

3.5

7.6

7.1

March 31, 2021

113.90113.78

8.2

8.3

7.9

Reference:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2022: ¥(69) million
For the fiscal year ended March 31, 2021: ¥(19) million
Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) and relevant ASBJ
regulations from the beginning of the current fiscal year, and each figure for the fiscal year ended March 31, 2022, is the figure
after applying the accounting standard and relevant ASBJ regulations. The percentage of year-on-year change is not shown.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share%

Yen

Millions of yen

Millions of yen

March 31, 2022

44,402

31,84770.4

1,407.03

March 31, 2021

46,81632,63268.5

1,445.14

Reference:

EquityAs of March 31, 2022:¥31,274 million
As of March 31, 2021:¥32,089 million
Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) and relevant ASBJ
regulations from the beginning of the current fiscal year, and each figure for the fiscal year ended March 31, 2022, is the figure
after applying the accounting standard and relevant ASBJ regulations.

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2022
March 31, 2021

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

2,666
4,423

(1,669)(1,563)(1,075)(1,152)

11,843
11,831

2. Cash dividends
Annual dividends

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year
endingMarch 31, 2023
(Forecast)First
quarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Total cash
dividends(Total)Total

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%

%

–

18.00

–

19.00

37.00

828

32.5

2.7

–

19.00

–

19.00

38.00

853

76.1

2.7

–

20.00

–

20.00

40.00

46.8

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31,
2023)
Net sales
Millions of yen
Six months ending
September 30, 2022
Fiscal year ending
March 31, 2023

(Percentages indicate year-on-year changes.)
Profit attributable to
Basic earnings
Ordinary profit
owners of parent
per share

Operating profit% Millions of yen% Millions of yen% Millions of yen%

Yen

24,6004.8

1,750 (32.3)

1,900 (30.0)

1,200 (35.0)

53.99

47,5004.5

2,550 (21.6)

2,850 (18.1)

1,900

85.48

71.3

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
Newly included: – companies
Excluded:– companies(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
Yes(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: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
Note: For more details, please refer to the section of “Changes in accounting policies” under “(5) Notes on
consolidated financial statements” of “3. Consolidated financial statements and significant notes thereto”
on page 18 of the attached material.
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

23,000,000 shares

As of March 31, 2021

23,000,000 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2022

772,820 shares

As of March 31, 2021

794,610 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Fiscal year ended March 31, 2022

22,223,718 sharesFiscal year ended March 31, 2021

22,176,474 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 toMarch 31, 2022)(1) Non-consolidated operating results
Net sales
Fiscal year ended
March 31, 2022
March 31, 2021

Millions of yen

42,79647,124
Basic earnings
per share(Percentages indicate year-on-year changes.)
Operating profit% Millions of yen

–
7.5

2,707
3,248

Ordinary profit% Millions of yen

–
23.4

3,258
3,455

Profit% Millions of yen

–
12.6

1,418
2,799

%

–
25.8

Diluted earnings
per share

Yen
Yen
Fiscal year ended
March 31, 2022
63.85
63.84
March 31, 2021
126.24126.11
Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) and relevant ASBJ
regulations from the beginning of the current fiscal year, and each figure for the fiscal year ended March 31, 2022, is the figure
after applying the accounting standard and relevant ASBJ regulations. The percentage of year-on-year change is not shown.

(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2022
March 31, 2021

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

40,922
43,23429,64530,33172.4
70.1

1,333.76
1,365.83

Reference:

EquityAs of March 31, 2022: ¥29,645 million
As of March 31, 2021: ¥30,328 million
Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) and relevant ASBJ
regulations from the beginning of the current fiscal year, and each figure for the fiscal year ended March 31, 2022, is the figure
after applying the accounting standard and relevant ASBJ regulations.

2. Non-consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 toMarch 31, 2023)
Net sales
Millions of yen

Six months ending
September 30, 2022
Fiscal year ending
March 31, 2023

(Percentages indicate year-on-year changes.)
ProfitEarnings per share

Operating profit% Millions of yen% Millions of yen%

Yen

23,0003.0

1,900(26.8)

1,400(25.8)

62.99

44,4003.7

2,800(14.1)

2,000

40.9

89.98

* Financial results reports are exempt from audit 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
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable.
Consequently, the statements herein do not constitute assurances regarding the Company’s actual results. Actual
financial and other results may differ substantially from the statements herein due to various factors. Please referto “(1) Outline of operating results for the current fiscal year” of “1. Outline of operating results, etc.” on pages
2 to 4 of the attached materials for the suppositions that form the assumptions for the earnings forecasts andcautions regarding the use of the earnings forecasts.
Method of obtaining the supplementary material on quarterly financial results
We intend to post the video explaining the financial results and the supplementary material on financial resultson the Company’s website on Wednesday, April 27, 2022.

S.T. CORPORATION (4951)○ Attached Materials Index
1. Outline of operating results, etc. ......................................................................................................................... 2(1) Outline of operating results for the current fiscal year ................................................................................. 2(i)Outline of overall results for the current fiscal year .......................................................................... 2(ii)
Status by category of the current fiscal year ...................................................................................... 2(iii) Future outlook .................................................................................................................................... 3(2) Outline of financial status for the current fiscal year .................................................................................... 5(i)Assets, Liabilities and Net Assets ...................................................................................................... 5(ii)
Consolidated cash flows .................................................................................................................... 5(3) Basic policy on profit distribution and dividends for the current and next fiscal years ................................ 6
2. Basic concept regarding the selection of accounting standards .......................................................................... 6
3. Consolidated financial statements and significant notes thereto ......................................................................... 7(1) Consolidated balance sheet ........................................................................................................................... 7(2) Consolidated statement of income and consolidated statement of comprehensive
income .......................................................................................................................................................... 9(Consolidated statement of income) ............................................................................................................. 9(Consolidated statement of comprehensive income) .................................................................................. 10(3) (Consolidated statement of changes in shareholders’ equity) ......................................................................11(4) (Consolidated statement of cash flows) ...................................................................................................... 13(5) Notes on consolidated financial statements ................................................................................................ 15(Notes on going concern assumption)......................................................................................................... 15(Important matters that are the basis for preparing consolidated financial statements) .............................. 15(Changes in accounting policies) ................................................................................................................ 18(Related to consolidated balance sheet) ...................................................................................................... 19(Related to consolidated statement of income) ........................................................................................... 20(Related to statement of changes in shareholders’ equity) .......................................................................... 22(Related to consolidated statement of cash flows) ...................................................................................... 25(Segment information) ................................................................................................................................ 25(Per-share information) ............................................................................................................................... 26(Significant post-balance sheet events) ....................................................................................................... 27
4. Other.................................................................................................................................................................. 28-1-

S.T. CORPORATION (4951)

1. Outline of operating results, etc.
The Group has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ guidance from the beginning of the current fiscal year.
The figures for the current fiscal year of the outline of operating results section in this report reflect application of
the accounting standard and relevant ASBJ guidance. As such, amounts of increase and decrease relative to theprevious fiscal year and year-on-year percentage change have not been presented. For more details about theapplication of “Accounting Standard for Revenue Recognition” and relevant ASBJ guidance, please refer to“Changes in accounting policies” under “(5) Notes to consolidated financial statements” of “3. Consolidated
financial statements and significant notes thereto.”(1) Outline of operating results for the current fiscal year(i) Outline of overall results for the current fiscal year
(Millions of yen)
Indicators, etc.
Net sales
Operating profit
Ordinary profit
Net profit attributable to owners of parent
Earnings per share (yen)Previous
consolidated fiscal
year
49,673
3,945
3,737
2,525
113.90Current consolidated
fiscal year
45,469
3,250
3,481
1,109
49.91

YoY percentagechange–––––In the Japanese economy during the current fiscal year, there was a recovery trend due to the spread ofvaccination, various government policies and improvements in overseas economies despite the fact that numberof people infected with COVID-19 remained high due to the influence of new variants.
However, the outlook is becoming even more uncertain as it is impossible to see an end in the spike in raw
materials prices due to the rise in crude oil prices, accompanied by the increasingly serious situation in Ukraine,and the impact of supply chain turmoil caused by the continuation of China’s Zero-COVID policy.
Amid these circumstances, the Group took action to enable its sustainable growth under its strategy of brandvalue management through initiatives that involve “solidification of the existing business profit structure,”“improving resources for growth engines,” “entry to and development of new fields and markets,”“strengthening the management foundation through digital transformation and ESG management,” and“improvement of organizational capacity.”
Consequently, for the current consolidated fiscal year, the Group’s net sales amounted to 45,469 million yen as
COVID-19-related demand has settled down. Meanwhile, operating profit was 3,250 million yen due to a
strategic spending in marketing costs as well as an increase in selling, general and administrative expenses amid
a situation where business activity is gradually rebounding following on a scenario of controls having been
imposed on such activity under last year’s COVID-19 state of emergency declaration. Ordinary profit was 3,481
million yen and net profit attributable to owners of parent was 1,109 million yen, due to recording of impairment
loss under extraordinary loss(ii) Status by category of the current fiscal year
Given that the Group operates a single segment of the daily necessities business, operating results by businesscategory are as follows.

-2-

S.T. CORPORATION (4951)<Net sales by category>Category
Air Care (Air Fresheners and Deodorizers)
Cloth Care (Mothproofing Agents)
Thermal Care (Disposable Warmers)
Hand Care (Household Gloves)
Humidity Care (Dehumidifiers)
Home Care (Others)
Total

Amount(Millions of yen)
19,983
8,213
4,363
5,834
2,845
4,228
45,469Composition
(%)
43.9
18.1
9.6
12.8
6.3
9.3
100.0

YoY percentagechange
–
–
–
–
–
–
–

In the Air Care (Air Fresheners and Deodorizers) category, we have been engaging in efforts that involve striving
for more consistent sales of our existing mainstay products and developing high value-added products. In
addition to steady sales of the Shoshu-Riki (deodorant power) Premium Aroma series and Shoshu-Riki for Toilet,
with the addition of the lineup items of the Shoshu-Riki (deodorant power) DEOX series, which has been wellreceived and uses a receptor block deodorant function that makes it difficult to perceive malodorous components,
net sales were 19,983 million yen.
In the Cloth Care (Mothproofing Agents) category, we have been working to increase sales of Mushuda mite
repellent with a new sheet-type product, to enhance the Mushuda series by renewal. However, as demand forseasonal wardrobe updates with people taking refuge at home last year has settled down, this business category
posted net sales of 8,213 million yen.
In the Thermal Care (Disposable Warmers) category, we have renewed the packaging of Onpax, to heighten the
degree of brand recognition, and in addition, with the On Style series we have been promoting efforts targeting“women suffering from cold sensitivity,” however, due to the tough market environment, sales were 4,363
million yen.
In the Hand Care (Household Gloves) category, we proceeded with revision of the selling price, which had beenraised last year, and as the demand for gloves due to heightened awareness of hygiene has settled down, net
sales were 5,834 million yen.
In the Humidity Care (Dehumidifiers) category, in addition to working to promote environmental friendliness,
we reduced low-gross profit products while shifting to high value-added products, and sales came at 2,845
million yen.
In the Home Care (Others) category, we have been striving to enter new fields of business and markets in Japan,
in addition to the steady trends of the Senjo-Riki brand and Kome-Touban brand. Net sales in this businesscategory amounted to 4,228 million yen due to the recovery of domestic demand due to return to campus
lifestyles and growth in exports for Senjo-Riki Ohisamano-Sentaku shoe cleaner, in addition to strong sales of
Senjo-Riki Fizzy washing machine drum cleaner, which launched in the autumn of last year.
(iii) Future outlook
In the Japanese economy for the following fiscal year, the outlook for the economy is expected to continue tobe uncertain due to inability to anticipate the end of the COVID-19 pandemic as well as concern about
geopolitical risks, such as the situation in Ukraine, and soaring raw material prices and energy prices.
Under these circumstances, the Group will focus on “drastic review of the existing business profit structure,”“concentrated resources in growth areas,” “clarification of business development systems” and “formulationand disclosure of long-term ESG strategies” in order to enable sustainable growth under brand value
management.
In the Air Care (Air Fresheners and Deodorizers) category, the Shoshu-Riki Premium Aroma series, which
focuses on high-quality scents as an initiative for high-value-added products, has been supported by consumers
and has driven the growth of the market, and we will continue to acquire a wide range of customers by renewing
and strengthening the lineup. In addition, we will continue to call attention to the advanced functionality of
Shoshu-Riki DEOX, which uses a receptor block deodorant function that makes it difficult to perceive
malodorous components, and further enhance the lineup to develop it into a main product. We will realize thisby steadily implementing sales promotion activities that are efficiently linked to advertising. In addition to this,-3-

S.T. CORPORATION (4951)
we will renew packaging that uses environmentally friendly materials and promote the production ofenvironmentally friendly products. We also expect sales to increase by actively engaging in overseas ecommerce businesses and strengthening our efforts in new markets.
In the Cloth Care (Mothproofing Agents) category, by growing the sales of Mushuda mite repellent, which is
expected to grow going forward as well, in the Mushuda series, as well as expanding applications in line withnew storage styles, and expansion in adjacent markets, we expect net sales to increase.
In the Thermal Care (Disposable Warmers) category, we will review our strategy toward increased profits inJapan and overseas. In addition to expanding awareness and strengthening the lineup of the existing Onpacks
brand, we will also strengthen the On Style series, however, we expect sales to decline in consideration of thetough market environment.
In the Hand Care (Household Gloves) category, in addition to striving for a stable supply of ultra-thin typegloves to meet the demand for hygiene awareness, we are working on sales promotion to raise brand awarenessof Family household gloves, and sales are expected to increase.
In the Humidity Care (Dehumidifiers) category, we expect sales to level off, and we will enhance the BinchoTan series and Dry Pet Clear for decommoditization, aiming to shift to high value-added products.
In the Home Care (Others) category, we believe that the demand for home-cooked meals and taking refuge athome that has become established due to the COVID-19 pandemic will continue, and we will work to grow thesales of Kome-Touban rice insect repellent and Shinsen-Ban which protects the freshness of food. We will
promote brand recognition by effectively developing active promotion activities and advertising. In addition, inthe pet care business, which we entered in the previous fiscal year as an initiative for new businesses, we will
promote brand recognition by utilizing Web media such as SNS, and promote product development utilizing
new technologies from our unique air-care business, and we expect net sales will increase.
In addition to the above measures for each category, we will continue to actively invest and strengthen ourbusiness management system for developing new products and new sales channels for further growth, aiming
to strengthen our structure to enable sales to increase continuously.
In terms of profits, as we are planning capital investment in main categories to respond to future cost reductions
and production enhancements, as well as promoting research activities as investment in new businesses,
strategic marketing investment for growth, and investment for DX and ESG promotion and human resource
development, we expect a temporary increase in costs.
As a result, for the next fiscal year, we expect 47,500 million yen (up 4.5% year on year) for net sales, 2,550
million yen (down 21.6% year on year) for operating income, 2,850 million yen (down 18.1% year on year) for
ordinary income and 1,900 million yen (up 71.3% year on year) for net profit attributable to owners of parent.
(Impact of COVID-19 Pandemic)
In order to prevent the spread of COVID-19, the Group will continue to take measures such as thoroughimplementation of prevention including wearing masks and ventilation, prohibiting unnecessary and nonurgent
business trips, and actively utilizing video conference systems, as well as decreasing infection risk of employees
by promotion of working from home and staggering attendance to maintain business activities.
The impact on business activities and business performance is limited at present, because there is no major
impact on production aspects such as procurement of raw materials. The business forecast incorporates theeffects of COVID-19 based on the information we have at this time.
However, if the situation does not converge for a long period of time or becomes more serious, it may affectbusiness activities and business performance because it is expected that procurement of raw materials andproduction activities will be delayed or stopped, and sales activities will decline. If it is expected to have asignificant impact on our business activities and business performance in the future, we will promptly disclose
it.

-4-

S.T. CORPORATION (4951)(2) Outline of financial status for the current fiscal year(i) Assets, Liabilities and Net Assets
Total assets at the end of the current fiscal year stood at 44,402 million yen, decreased by 2,414 million yen
from the end of the previous fiscal year. Main factors were a decrease in investment securities of 1,616 million
yen, a decrease in goodwill of 1,263 million yen, a decrease in goods and products of 455 million yen, and anincrease in intangible assets-other of 800 million yen, etc.
Liabilities were 12,554 million yen, decreased by 1,628 million yen from the end of the previous fiscal year.
The decrease is mainly attributable to factors that include an increase in current liabilities - other of 1,937 million
yen, a decrease in accounts payable - other of 1,063 million yen, a decrease in notes and accounts payable trade of 738 million yen, a decrease in deferred tax liabilities of 553 million yen, a decrease in income taxes
payable of 355 million yen, and a decrease in electronically recorded obligations of 351 million yen.
Net assets were 31,847 million yen, decreased by 785 million yen from the end of the previous fiscal year. The
decrease is mainly attributable to factors that include a decrease of valuation difference on available-for-salesecurities of 1,019 million yen.
Consequently, equity amounted to 31,274 million yen and the equity ratio was 70.4%, increased by 1.9
percentage points from the end of the previous fiscal year.
(ii) Consolidated cash flows(Millions of yen)
Item
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodCash and cash equivalents at end of period

Previous
consolidated fiscal
year
4,423
(1,563)(1,152)Current consolidated
fiscal year

Net increase or
decrease

2,666(1,669)(1,075)(1,757)
(105)
76

2

90

88

1,709

11

(1,697)

10,122

11,831

1,709

11,831

11,843

11

Cash and cash equivalents as of March 31, 2022, stood at 11,843 million yen, increased by 11 million yen fromthe end of the previous fiscal year.
The main contributing factors affecting the respective cash flows during the current fiscal year are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 2,666 million yen (compared with 4,423 million yen provided in
the same period of the previous fiscal year). The major inflows were profit before income taxes of 1,700 million
yen, depreciation of 1,196 million yen, and impairment loss of 1,665 million yen, while the major outflows
were a decrease in trade payable of 1,100 million yen, and income taxes paid of 1,183 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 1,669 million yen (compared with 1,563 million yen used in the same
period of the previous fiscal year). The major outflows were purchase of property, plant and equipment of 864
million yen, and purchase of intangible assets of 894 million yen.
(Cash flows from financing activities)
Net cash used in financing activities was 1,075 million yen (compared with 1,152 million yen used in the same
period of the previous fiscal year). The major outflow was dividends paid of 851 million yen.
Trends in cash flow-related indicators of the Group are as follows:-5-S.T. CORPORATION (4951)

Item

Equity ratio
Market-based equity ratio
Interest-bearing debt to cash flow ratio
Interest coverage ratio

Fiscal year
ended
March 31,
2018
67.3%
119.8%
0.1
10,537.8

Fiscal
year
ended
March
31, 2019
68.2%
99.7%
0.2
315.3

Fiscal year
ended
March 31,2020

Fiscal year
ended
March 31,2021

Fiscal year
ended
March 31,
2022

68.5%
82.0%
0.2
255.4

68.5%
92.7%
0.1
426.4

70.4%
76.4%
0.2
573.9

Equity ratio: Equity/total assets
Market-based equity ratio: market capitalization/total assets
Interest-bearing debts to cash flow ratio: Interest-bearing debts/cash flows
Interest coverage ratio: cash flow/interest payment
1. All indicators are calculated based on consolidated financial figures.
2. Market capitalization is calculated based on the number of issued shares excluding treasury stock(including treasury stock remaining in the trust recorded as treasury stock in shareholders’ equity).
3. For cash flow, we use cash flow from operating activities on the consolidated statement of cash flow.
Interest-bearing debt covers all of the liabilities recorded on the consolidated balance sheet for whichinterest is paid. For interest payments, we use the amount of interest paid on the consolidated statementof cash flow.
(3) Basic policy on profit distribution and dividends for the current and next fiscal years
Our basic policy regarding profit distribution is as follows.
We will ensure retained earnings to perform strategic investment (product development, effective promotion,
capital investment, human resource development, etc.) for sustainable growth and improvement of corporate
value over the medium to long term, and as for dividends we will promote a dividend policy linked to businessperformance while maintaining a basic policy of continuous stable dividends.
With such a concept, regarding the dividend of surplus at the end of the current period, we will set the dividend
per share at 19 yen (38 yen for the full year) in consideration of the situation of net income and the realizationof shareholder interests.
Regarding the dividend of surplus for the next fiscal year, although the outlook for the Japanese economy isuncertain and the business environment remains severe, we plan to distribute 40 yen per share (20 yen out of
this will be interim dividend).

2. Basic concept regarding the selection of accounting standards
The Group has applied Japanese standards in consideration of the period comparability of consolidated financial
statements and the comparability between companies.
Regarding the application of IFRS, we will take appropriate measures in consideration of domestic and overseas
situations.

-6-

S.T. CORPORATION (4951)

3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Thousands of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes receivable - trade
Accounts receivable - trade
Securities
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, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

*3
*4

*1
*1
*1
*5
*1

11,864,226
5,789,675––
73,9207,072,094
206,346
991,276
520,541(34,592)
26,483,487

4,409,983
1,951,317
221,390
3,581,707
218,098
75,99010,458,486

As of March 31, 2022

*3

*4

*1
*1
*1
*5
*1

1,263,627
643,739
1,907,367*2-7-

7,270,358
5,055
7,841
84,255
599,650
7,967,161
20,333,015
46,816,503

11,887,571–
82,3455,720,587–
6,616,934
187,307989,123
656,520(34,482)
26,105,909

4,209,287
1,728,435
229,423
3,593,502
202,829
156,837
10,120,316–
1,444,673
1,444,673*2

5,653,702
5,038
7,456
452,385
613,001
6,731,584
18,296,573
44,402,483

S.T. CORPORATION (4951)(Thousands of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Lease liabilities
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Provision for sales returns
Electronically recorded obligations - non-operating
Other
Total current liabilities
Non-current liabilities
Lease liabilities
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (andother officers)
Provision for share awards for directors
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

*5

*5

-8-

As of March 31, 2022

2,933,890
3,186,586
464,400
55,3432,865,728
789,246778,947
398,130
119,000
83,342
86,777
11,761,393

2,195,372
2,835,283
413,315
49,771
1,802,433
685,379
423,136
93,292–
179,0422,023,903
10,700,931

91,278553,101
262,175

94,226–262,175*5

107,591

107,591

69,1501,337,211
1,741
2,422,250
14,183,643

81,952
1,301,193
6,775
1,853,916
12,554,847

7,065,500
7,036,277
16,982,081(1,040,068)
30,043,790

7,065,500
7,047,201
16,978,052(1,020,666)
30,070,087

2,886,423(537,202)(314,417)
11,3892,046,192
2,328
540,547
32,632,859
46,816,503*5

1,866,774(537,202)(177,593)
52,146
1,204,125–573,422
31,847,636
44,402,483

S.T. CORPORATION (4951)(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)(Thousands of yen)
Fiscal year ended
March 31, 2021
Net sales
Cost of sales
Gross profit
Provision for sales returns
Reversal of provision for sales returns
Gross profit - net
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Purchase discounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on redemption of investment securities
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Loss on valuation of investment securities
Loss on sale of shares of subsidiaries and associates
Loss on sale of investments in capital of subsidiaries
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent*1, *3*2, *349,673,733
28,357,741
21,315,991
119,000
118,100
21,315,091
17,369,991
3,945,100-9-*1, *3*2, *345,469,615
27,664,617
17,804,997––
17,804,997
14,554,123
3,250,874

5,665
103,281
148,773
179,804
437,524

5,591
113,143
126,408
121,436
366,580

9,115
509,734

4,643–

19,08069,003

13,45094,067645,447
3,737,177

46,01816,326135,991
3,481,463–
68,989–3,97872,967*5

Fiscal year ended
March 31, 2022

3,889–
30,960–89,509124,358
3,685,785
1,106,149(27,981)
1,078,168
2,607,617
81,6352,525,981*4

43
43,65911,505
194
55,402*5

26,741
1,665,223–
144,494–
1,836,459
1,700,405
837,278(347,037)
490,240
1,210,165
100,989
1,109,175*6

S.T. CORPORATION (4951)(Consolidated statement of comprehensive income)(Thousands of yen)
Fiscal year ended
March 31, 2021
ProfitOther comprehensive income
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
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

Fiscal year ended
March 31, 2022

2,607,617

1,210,165

658,034
36,49528,947(1,019,480)
129,586
40,757

1,228

70,196

724,706
3,332,323(778,939)
431,225

3,240,452

267,108

91,871

164,116

S.T. CORPORATION (4951)(3) (Consolidated statement of changes in shareholders’ equity)
Previous consolidated fiscal year (April 1, 2020-March 31, 2021)(Thousands of yen)
Shareholders’ equity

Balance at beginning of period

Total shareholders’equityShare capital

Capital surplus

Retained earnings

Treasury shares

7,065,500

7,067,815

15,269,715(1,107,935)

28,295,094

Changes during period
Dividends of surplus(805,146)(805,146)

Profit attributable to owners ofparent2,525,981

2,525,981

Purchase of treasury shares
Disposal of treasury shares(8,468)Change in scope of consolidation

(515)

(515)

68,38359,914(31,537)(31,537)

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period–(31,537)

1,712,366

67,867

1,748,696

7,065,500

7,036,277

16,982,081(1,040,068)

30,043,790

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifferenceonavailablefor-salesecurities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

2,228,295(537,202)(341,813)

Total
Remeasureaccumulated
ments ofother
definedcomprehenbenefit plans
sive income(17,558)

1,331,721

Shareacquisitionrights

Noncontrollinginterests

Total net
assets9,858

499,155

30,135,829

Changes during period
Dividends of surplus(805,146)

Profit attributable to owners ofparent2,525,981

Purchase of treasury shares(515)

Disposal of treasury shares

59,914

Change in scope of consolidation(31,537)

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

658,127–

27,39528,947714,470(7,530)41,392

748,333

658,127–

27,39528,947714,470(7,530)41,392

2,497,030

2,886,423(537,202)(314,417)

11,3892,046,192

2,328

540,547

32,632,859- 11 -

S.T. CORPORATION (4951)
Current consolidated fiscal year (April 1, 2021-March 31, 2022)(Thousands of yen)
Shareholders’ equity

Balance at beginning of period

Capital surplus

Retained earnings

Treasury shares

7,065,500

7,036,277

16,982,081(1,040,068)

Cumulative effects of changes inaccounting policies
Restated balance

Total shareholders’equityShare capital

30,043,790(256,380)
7,065,500

7,036,277(256,380)

16,725,701(1,040,068)

29,787,410

Changes during period
Dividends of surplus(851,597)(851,597)

Profit attributable to owners ofparent1,109,175

1,109,175

Purchase of treasury shares
Disposal of treasury shares

(332)

(332)

10,924(5,226)

19,73425,432–

10,924

252,351

19,401

282,677

7,065,500

7,047,201

16,978,052(1,020,666)

30,070,087

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifferenceonavailablefor-salesecurities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

2,886,423(537,202)(314,417)

Total
Remeasureaccumulated
ments ofother
definedcomprehenbenefit plans
sive income
11,389Cumulative effects of changes inaccounting policies
Restated balance

2,046,192

Shareacquisitionrights

Noncontrollinginterests

Total net
assets

2,328

540,547

32,632,859–
2,886,423(537,202)(314,417)

11,3892,046,192(256,380)
2,328

540,547

32,376,479

Changes during period
Dividends of surplus(851,597)

Profit attributable to owners ofparent1,109,175

Purchase of treasury shares(332)

Disposal of treasury shares

25,432

Net changes in items other thanshareholders’ equity(1,019,648)–

136,824

40,757(842,066)(2,328)32,874(811,520)

Total changes during period(1,019,648)–

136,824

40,757(842,066)(2,328)32,874(528,843)

Balance at end of period

1,866,774(537,202)(177,593)

52,146

1,204,125–573,422

31,847,636- 12 -

S.T. CORPORATION (4951)(4) (Consolidated statement of cash flows)(Thousands of yen)
Fiscal year ended
March 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Gain on reversal of share acquisition rights
Loss (gain) on sale and retirement of non-current assets
Loss (gain) on sale and valuation of investment
securities
Loss (gain) on redemption of investment securities
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on sale of investments in capital ofsubsidiaries
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit asset andliability
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
Increase (decrease) in provision for share awards for
directors (and other officers)
Increase (decrease) in provision for sales returns
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Decrease (increase) in leasehold and guarantee deposits
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
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 intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Proceeds from sale of shares of subsidiaries andassociates
Purchase of investments in capital of subsidiaries
Other, net
Net cash provided by (used in) investing activities- 13 -

Fiscal year ended
March 31, 2022

3,685,785
1,349,763
97,202–(3,978)3,889

1,700,405
1,196,789
97,202
1,665,223(194)
26,698(38,028)(43,659)–(11,505)–

144,494

89,509–30,002(120)

21,706(43,863)(7,125)–(7,348)12,802

900(108,946)
9,115(15,646)–(118,735)
4,643
10,166

19,08069,003(7,547)(1,107,460)
921,664
120,964(4,978)276,387
5,324,910
113,035(10,374)(1,004,304)
4,423,266(312,456)
640,087(1,100,028)(304,835)
4,663
98,872
3,735,653
118,776(4,645)(1,183,598)
2,666,186(64)(1,155,224)
1,390(417,503)(111,129)
87,412–(19)(864,266)
237(894,756)(53,832)
61,98877,645–

2,654(23,564)
54,693(1,563,988)–
796(1,669,553)

S.T. CORPORATION (4951)(Thousands of yen)
Fiscal year ended
March 31, 2021
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from share issuance to non-controllingshareholders
Purchase of treasury shares
Proceeds from disposal of treasury shares
Dividends paid
Dividends paid to non-controlling interests
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 beginning of period
Cash and cash equivalents at end of period*- 14 -

Fiscal year ended
March 31, 2022

(232,397)(50,442)

10,137–(515)
56,362(805,146)(94,711)(86,044)(1,152,317)(332)
23,298(851,597)(131,242)(65,359)(1,075,675)

2,304

90,394

1,709,264
10,122,492
11,831,757

11,351
11,831,757
11,843,109*

S.T. CORPORATION (4951)(5) Notes on consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Important matters that are the basis for preparing consolidated financial statements)
1. Matters concerning scope of consolidation(1) Number of consolidated subsidiaries
7 companies
Names of major consolidated subsidiaries
S.T. PRO CO., LTD.
S.T. Business Support Co., Ltd.
S.T. MYCOAL CO., LTD.
S.T. (Thailand) Co., Ltd.
Family Glove Co., Ltd. (Taiwan)
S.T. Korea Corporation (South Korea)
Shaldan (Thailand) Co., Ltd.
(2) Names of major non-consolidated subsidiaries and other related information
Major non-consolidated subsidiaries
Japan Aroma Laboratory Co., Ltd.
(Reasons for exclusion from scope of consolidation)
As the non-consolidated subsidiary is small, and none of its total assets, net sales, net income (amountcorresponding to equity interest) and retained earnings (amount corresponding to equity interest) have asignificant impact on consolidated financial statements, it is excluded from the scope of consolidation.
2. Matters relating to application of equity method(1) Number of affiliated companies accounted for by the equity method
2 companies
Names of major companies
Aekyung S.T. Co., Ltd.(South Korea)
NS FaFa Japan Co., Ltd.
Note that we sold all the shares we owned for Shaldan (Philippines), which was the affiliated company
accounted for by the equity method, as of March 31, 2022 and therefore it is excluded from the scope of
consolidation.
(2) As for non-consolidated subsidiary Japan Aroma Laboratory Co., Ltd., which is not accounted for by theequity method, its net income (amount corresponding to equity interest) and retained earnings (amountcorresponding to equity interest) have a minor effect on the consolidated financial statements even if it is
excluded from being a subject of the equity method, and is insignificant in general, so it is excluded fromthe scope of equity method application.
(3) For affiliates accounted for by the equity-method whose closing date is different from the consolidated
closing date, the financial statements for each company’s business year are used.
3. Matters concerning business year, etc. of consolidated subsidiaries
Among consolidated subsidiaries, the closing date for S.T. (Thailand) Co., Ltd., Family Glove Co., Ltd.
(Taiwan), S.T. Korea Corporation (South Korea) and Shaldan (Thailand) is December 31. In preparing theconsolidated financial statements, the financial statements as of the relevant closing date are used. However,for important transactions that occurred during the period from January 1st to March 31st, the consolidated
closing date, necessary adjustments have been made for consolidation.
4. Matters concerning accounting policy(1) Valuation methods and standards for important assets
a. Securities
Available-for-sale securities
With market value
Stated at market value at fiscal year-end (full amount of valuation difference is charged to net assets
using the direct net asset method, and sales cost is calculated by the moving-average method).
Without market value
Stated at cost by the moving-average method.
- 15 -

S.T. CORPORATION (4951)
Securities are stated at cost or amortized at cost.
b. Inventory assets
The Company and our domestic consolidated subsidiaries mainly use the cost method based on the total
average method (the balance sheet value is calculated by the method of devaluing the book value basedon the decline in profitability), and the overseas consolidated subsidiaries mainly use the low pricemethod based on the total average method.
(2) Depreciation method for important depreciable assets
a. Property, plant and equipment (excluding leased assets)
The Company and its domestic consolidated subsidiaries use the declining balance method, and overseas
consolidated subsidiaries mainly use the straight-line method based on the provisions of the accounting
standards of the country concerned.
(However, the Company and its domestic consolidated subsidiaries use the straight-line method forbuildings acquired on or after April 1, 1998 (excluding facilities attached to buildings) and for facilities
attached to buildings and structures acquired on or after April 1, 2016.)
The main useful lives are as follows.
Buildings and structures
3 - 50 years
Machinery, equipment and delivery equipment
2 - 17 years
Tools, furniture and fixtures
2 - 20 years
b. Intangible fixed assets (excluding leased assets)
The straight-line method is used.
The software used in-house is based on the usable period (mainly 5 years) in the company.
c. Leased assets
Leased assets relating to financial lease transactions without transfer of ownership
Amortized by the straight-line method based on the lease term as the useful life and residual value ofzero.
(3) Accounting standards for major allowancesa. Allowance for doubtful accounts
In order to prepare for bad debt losses such as trade receivables and loans, the Company and its domestic
consolidated subsidiaries provide for allowance for doubtful accounts at an uncollectable amount basedon the historical percentage of credit losses for general credit, and at an amount that is estimated to beuncollectible individually considering the possibilities of collection for specific credit such as bad credit
where there is a high probability of loss. In addition, overseas consolidated subsidiaries mainly provide
for estimated uncollectible amounts.
b. Reserve for retirement benefits for officers
The Company provides for the amount required to be paid at the end of the term based on internal
regulations in order to prepare for the future payment of retirement benefits to officers.
c. Reserve for stock benefits for officers
The Company provides for the estimated amount of stock benefit obligations at the end of the current
consolidated fiscal year in order to prepare for the delivery of the Company’s shares to Executive Officers
based on internal regulations.
(4) Accounting method for retirement benefits(i) Period attribution method for expected retirement benefits
In calculating the retirement benefits obligation, the attribution method for the expected retirement
benefits amount to the period up to the end of the current consolidated fiscal year is based on the projected
benefits method.
(ii) Method of amortization of actuarial differences
The actuarial differences are amortized by the straight-line method over a certain number of years (5years), which is within the average period of the remaining years of service of eligible employees andare amortized from the following fiscal year in which the actuarial differences are recognized.
(iii) Adoption of a simplified method in small businesses, etc.
Some consolidated subsidiaries apply a simplified method to calculate retirement benefit liabilities andretirement benefit costs, using a method in which the amount required for voluntary resignations at theend of the term relating to retirement benefits is used as the retirement benefit obligation.

- 16 -

S.T. CORPORATION (4951)(5) Standards for recording important income and expenses
The Company and domestic consolidated subsidiaries have applied the “Accounting Standard for Revenue
Recognition” (ASBJ Statement No. 29, March 31, 2020) and “Implementation Guidance on AccountingStandard for Revenue Recognition (ASBJ Guidance No. 30 of March 26, 2021) and have recognizedrevenue at the time the control of promised goods or services is transferred to the customer at the amount
expected to be received upon exchange of said goods or services. The time when the customer gains control
is determined to be the time when the product arrives at the customer in domestic sales and the time when
the product arrives at the point agreed with the customer in export sales.
These revenues are measured by deducting rebates and returns from the consideration promised in thecontract with the customer.
(6) Standards for translation of significant foreign currency-denominated assets or liabilities into Japanesecurrency
Foreign currency-denominated monetary receivables and payables are translated into yen at the spot
exchange rate on the consolidated closing date, and the translation difference is treated as profit or loss.
Assets and liabilities, and income and expenses of overseas subsidiaries, etc. are translated into yen at the
spot exchange rate on the consolidated closing date, and the translation difference is included in the foreignexchange translation adjustment account and non-controlling interests in the net assets section.
(7) Important hedge accounting method
a. Hedge accounting method
We mainly use deferred hedging. As to forward-exchange contracts eligible for allocation treatment,
allocation treatment is applied, and in current consolidated fiscal year, all are processed with allocation
treatment.
b. Hedging method and hedge target
Hedging method
Forward exchange contract
Hedge target
Foreign currency denominated transactions
There is no balance at the end of the current consolidated fiscal year.
c. Hedging policy
The Company mainly conducts forward exchange contracts to hedge the risk of short-term exchange
fluctuations in transactions scheduled to be denominated in foreign currencies.
(8) Goodwill amortization method and amortization period
Goodwill is amortized on an individual basis and is amortized evenly over a reasonable number of years
up to 20 years.
(9) Scope of funds in the consolidated statement of cash flows
Funds (cash and cash equivalents) in the consolidated cash flow statement consist of cash on hand, deposits
that can be withdrawn at any time, and short-term investments that are easily redeemable, and is due within
3 months from the date of acquisition, in which only tiny risk of fluctuations in value is assumed.

- 17 -

S.T. CORPORATION (4951)(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and relevant ASBJ guidance from the beginning of the current consolidated fiscal year, andit has recognized revenue at the time the control of promised goods or services is transferred to the customer
at the amount expected to be received upon exchange of the said goods or services. As a result, some of thesales promotion expenses and promotion expenses previously recorded in selling, general and administrative
expenses, and sales discounts previously recorded in non-operating expenses, have been deducted from net
sales. Moreover, the Company had been handling projected merchandise returns by recording respective
gross profit amounts in the provision for sales returns, but has changed to an approach that involves notrecognizing revenue at the time of sale in accordance with provisions regarding variable consideration withrespect to projected merchandise returns.
In applying the Accounting Standard for Revenue Recognition and relevant ASBJ guidance, the Company
has applied the transitional treatment provided for in the provision of paragraph 84 of the AccountingStandard for Revenue Recognition. Accordingly, the new accounting standard is applied from the beginningbalance of the current fiscal year, such that cumulative effects of retroactively applying the new accounting
standard with respect to the periods prior to the beginning of the current fiscal year are to be added to or
subtracted from retained earnings at the beginning of the current fiscal year.
For the current consolidated fiscal year, as a result of this change, net sales decreased by 3,410,904 thousand
yen, cost of sales increased by 7,275 thousand yen, selling, general and administrative expenses decreased
by 3,088,906 thousand yen and operating profit decreased by 329,273 thousand yen, while ordinary profit
and profit before income taxes each increased by 159,376 thousand yen. In addition, retained earnings at the
beginning of the current fiscal year decreased by 256,380 thousand yen.
Whereas the provision for sales returns had been presented under current liabilities in the consolidatedbalance sheet for the previous fiscal year, as a result of having applied the Accounting Standard for Revenue
Recognition and relevant ASBJ guidance, the provision for sales returns is to be presented such that returns
assets are to be included in other under current assets and refund liabilities are to be included in other undercurrent liabilities, beginning with the current fiscal year. In accordance with the transitional treatment
provided for in paragraph 89-2 of the Accounting Standard for Revenue Recognition, figures for the previous
fiscal year have not been restated in accordance with the new approach to presentation.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019) and relevant ASBJ guidance from the beginning of the current fiscal year, and decided to apply
new accounting standards set forth in the Accounting Standard for Fair Value Measurement and relevant
ASBJ guidance prospectively in accordance with the transitional treatment provided for in paragraph 19 of
the Accounting Standard for Fair Value Measurement and in paragraph 44-2 of the “Accounting Standard for
Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). The application of the above standards andregulations does not have any impact on the consolidated financial statements.

- 18 -

S.T. CORPORATION (4951)(Related to consolidated balance sheet)* 1 The accumulated depreciation of property, plant and equipment is as follows.
(Thousands of yen)Previous consolidated fiscal
year(March 31, 2021)
Cash and deposit accounts

Current consolidated fiscal year
(March 31, 2022)

14,092,595

14,072,260*2 The items for non- consolidated subsidiaries and affiliated companies are as follows.
(Thousands of yen)Previous consolidated fiscal
year(March 31, 2021)
Investment securities (shares)

441,907

Current consolidated fiscal year
(March 31, 2022)
276,884*3 Collateral assets
The assets pledged as collateral are as follows.
(Thousands of yen)Previous consolidated fiscal
year(March 31, 2021)
Deposits (note)

4,544

Current consolidated fiscal year
(March 31, 2022)
4,531(Note) Deposits are used as collateral for transactions.
*4 Bills receivable (export bills) discount amount(Thousands of yen)Previous consolidated fiscal
year(March 31, 2021)
Bills receivable (export bills) discount amount

8,258

Current consolidated fiscal year
(March 31, 2022)
6,296*5 Under the Act on Revaluation of Land (Act No. 34 of March 31, 1998) and the Act on Partial Revision of
the Act on Revaluation of Land (Act No. 19 of March 31, 2001), we reevaluated the land for business use,
and for the valuation difference, record the tax equivalent amount related to the valuation difference in theliability section as deferred tax liability related to revaluation, and the amount after deduction of this amountis recorded in the net assets section as valuation difference on land revaluation.
Method of revaluation: It is calculated by making reasonable adjustments based on the fixed asset tax
valuation amount stipulated in Article 2, item 3 of the Order for Enforcement of
Act on Revaluation of Land (Cabinet Order No. 119 of March 31, 1998) and theland price tax law stipulated in Article 2, item 4 of the Order.
Date when revaluation is conducted: March 31, 2002
(Thousands of yen)Previous consolidated fiscal
year(March 31, 2021)
Difference between the end-of-term market value of therevalued land and the book value after revaluation(167,671)- 19 -

Current consolidated fiscal year
(March 31, 2022)(197,327)

S.T. CORPORATION (4951)(Related to consolidated statement of income)* 1 The year-end inventory is the amount after book value is devalued due to the decline in profitability, andthe following inventory valuation loss is included in the cost of sales.
(Thousands of yen)Previous consolidated fiscal
Current consolidated fiscal year
year
(April 1, 2021-March 31, 2022)(April 1, 2020-March 31, 2021)
307,836

477,762*2 The main items and amounts of selling, general and administrative expenses are as follows.
(Thousands of yen)Previous consolidated fiscal
Current consolidated fiscal year
year
(April 1, 2021-March 31, 2022)(April 1, 2020-March 31, 2021)
Shipping and storage costs
Sales promotion expenses
Advertising expenses
SalaryRetirement benefit costs
Provision of reserve for stock benefits for officers
Provision of allowance for doubtful accounts

1,711,446
3,657,963
2,559,534
2,447,762
167,425
11,05929,571

1,656,726
554,9812,605,613
2,486,947
157,684
12,802–*3 The total amount of R & D expenses included in general and administrative expenses and manufacturing
expenses for the current period is as follows.
(Thousands of yen)Previous consolidated fiscal
Current consolidated fiscal year
year
(April 1, 2021-March 31, 2022)(April 1, 2020-March 31, 2021)
790,382

851,253*4 Contents of gain on sales of fixed assets are as follows.
(Thousands of yen)Previous consolidated fiscal
Current consolidated fiscal year
year
(April 1, 2021-March 31, 2022)(April 1, 2020-March 31, 2021)
Machinery, equipment and delivery equipment
Tools, furniture and fixtures

–
–

41
1

Total

–

43

*5 Contents of loss on disposal or impairment of fixed assets are as follows.
(Thousands of yen)Previous consolidated fiscal
Current consolidated fiscal year
year
(April 1, 2021-March 31, 2022)(April 1, 2020-March 31, 2021)
Buildings and structures
Machinery, equipment and delivery equipment
Tools, furniture and fixtures
Other

1,310
1,829
643
106

12,97012,654
348
768

Total

3,889

26,741- 20 -

S.T. CORPORATION (4951)*6 Impairment loss
Previous consolidated fiscal year (April 1, 2020-March 31, 2021)
Not applicable.
Current consolidated fiscal year (April 1, 2021-March 31, 2022)
In the current consolidated fiscal year, the Group recorded an impairment loss for the following asset groups.
Location
Tokyo

Use
Other

Type
Goodwill

Impairment loss
(Thousands of yen)
1,166,425

Tochigi City, Tochigi Prefecture Business assets

Buildings
andstructures,
machinery, equipment anddelivery equipment, tools,
furniture and fixtures, etc.

Tochigi City, Tochigi Prefecture Idle assets

Land

4,451

Chon Buri Province, Thailand

Buildings
andstructures,
machinery, equipment anddelivery equipment, tools,
furniture and fixtures

87,126

Business assets

407,220

For business assets, the Group determines the asset group in consideration of the management accountingclassification, and for shared assets such as the head office, the entire business is the unit of grouping. In addition,idle assets that are not used for business are grouped by individual property.
As a result of reviewing the business plan of the Disposable Warmers business due to the decline in profitability,
the excess profitability initially expected could no longer be expected. Therefore, the entire amount of theundepreciated balance of goodwill relating to the Disposable Warmers business and the carrying amount ofbusiness assets held by the Company and its subsidiary, S.T. MYCOAL Co., Ltd., was reduced to the recoverable
value, and the reduced amount was recorded as impairment loss under extraordinary loss.
For these assets, the recoverable value is measured by the net selling price, and the net selling price is calculatedby the appraisal (movables and real estate) obtained from an external valuation company. The main assumptionsof the appraisal value are the estimated sale price of machinery, the replacement cost of the building, and thevacant lot price of the land.
Since the profitability of the business assets held by the consolidated subsidiary Shaldan (Thailand) has declined,
the carrying amount was reduced to the recoverable value and the reduced amount was recorded as impairment
loss under extraordinary loss.
The recoverable value is measured by the value in use and is calculated assuming that the value in use is zero.
For idle assets, the carrying amount was reduced to the recoverable value because the intended use was not
currently determined, and the reduced amount was recorded as impairment loss under extraordinary loss. For
idle assets, the recoverable value is measured by the net selling price, and the net selling price is calculated byreal estate appraisal by a real estate appraiser.

- 21 -

S.T. CORPORATION (4951)(Related to statement of changes in shareholders’ equity)
Previous consolidated fiscal year (April 1, 2020-March 31, 2021)
1. Matters concerning the class and total number of issued shares and the class and number of treasury stock
Number of shares at
Number of shares
Number of shares
Number of shares atthe beginning of theincreased during thedecreased during thethe end of the current
current consolidated
current consolidated
current consolidated
consolidated fiscal year
fiscal year (Thousands fiscal year (Thousands fiscal year (Thousands(Thousands of shares)of shares)of shares)of shares)
Issued shares
Common stock

23,000––23,000Total

23,000––23,000

847

0

53

794

847

0

53

794

Treasury stock
Common stock (note)
Total(Notes) 1. The increase in the number of shares of treasury stock of common stock of 0 thousand shares is dueto the purchase of shares of less than one unit.
2. The decrease in the amount of treasury stock of common stock of 53,000 shares is a decrease of
36,000 shares due to the exercise of stock option rights and a decrease of 17,000 shares due to thedelivery of treasury stock by the Board Benefit Trust (BBT).
3. Treasury stock of common stock includes shares owned by Custody Bank of Japan, Ltd. (Trust E
Account) (211,000 shares at the beginning of the current consolidated fiscal year and 194,000 sharesat the end of the current consolidated fiscal year).
2. Matters concerning stock acquisition rights and treasury stock acquisition rights
Number of shares subject to stock acquisition rights(Thousands of shares)

Balance atAt theIncrease
DecreaseAt the end the end of
the current
beginning of during the during theof theconsolidated
the current
current
current
current
consolidated consolidated consolidated consolidated fiscal year
fiscal year fiscal year fiscal year fiscal year (Thousandsof yen)(Thousands (Thousands (Thousands (Thousandsof shares)of shares)of shares)of shares)

Classification

Breakdown of stockacquisition rights

Class of stock
subject to stockacquisition rights

Submitting
company(parent)

Stock acquisition rights
as stock options

–

–

–

–

–

2,328

–

–

–

–

–

2,328

Total

3. Matters relating to dividends(1) Amount of dividend payment(Resolution)

Class of stock

Total amount ofdividend(Thousands ofyen)

Board of Directors
Meeting on May 18,
2020

Common stock

402,547

Board of Directors
Meeting on October27, 2020

Common stock

402,599

Amount ofdividend per share(yen)

Reference date

Effectuation date18

March 31, 2020

June 2, 202018

September 30, 2020

December 4, 2020

(Notes) 1. The total amount of dividends decided by the resolution of the Board of Directors on May 18, 2020
includes dividends of 3,807 thousand yen for the shares of the Company owned by Custody Bank ofJapan, Ltd. (Trust E Account).
2. The total amount of dividends decided by the resolution of the Board of Directors on October 27,
2020 includes dividends of 3,493 thousand yen for the shares of the Company owned by Custody
Bank of Japan, Ltd. (Trust E Account).

- 22 -

S.T. CORPORATION (4951)(2) Out of dividends for which the reference date falls in the current consolidated fiscal year, the effectuation
date for the dividends falls in the following consolidated fiscal year
(Resolution)

Class of stock

Total amountof dividend(Thousands ofyen)

Board of Directors
Meeting on May
17, 2021

Common stock

425,590

Source ofdividends

Amount ofdividend pershare (yen)Reference date

Effectuation date19

March 31, 2021

June 1, 2021

Retained surplus(Note) The total amount of dividends decided by the resolution of the Board of Directors on May 17, 2021
includes dividends of 3,687 thousand yen for the shares of the Company owned by Custody Bank ofJapan, Ltd. (Trust E Account).
Current consolidated fiscal year (April 1, 2021-March 31, 2022)
1. Matters concerning the class and total number of issued shares and the class and number of treasury stock
Number of shares at
Number of shares
Number of shares
Number of shares atthe beginning of theincreased during thedecreased during thethe end of the current
current consolidated
current consolidated
current consolidated
consolidated fiscal year
fiscal year (Thousands fiscal year (Thousands fiscal year (Thousands(Thousands of shares)of shares)of shares)of shares)
Issued shares
Common stock

23,000––23,000Total

23,000––23,000

794

90

112

772

794

90

112

772

Treasury stock
Common stock (note)
Total(Notes) 1. The increase in the number of shares of treasury stock of common stock of 90,000 shares consists ofan increase of 0 thousand shares due to the purchase of shares of less than one unit and 90,000 sharesacquired by Japan Custody Bank, Ltd. (Trust E Account).
2. The decrease in the number of shares of treasury stock of common stock of 112,000 shares consistsof a decrease by exercising stock options for 22,000 shares, and the decrease of 90,000 shares consistsof disposal of treasury stock by third party allotment (third party allotment to Japan Custody Bank,
Ltd. (Trust E Account)).
3. Treasury stock of common stock includes shares owned by Custody Bank of Japan, Ltd. (Trust E
Account) (194,000 shares at the beginning of the current consolidated fiscal year and 284,000 sharesat the end of the current consolidated fiscal year).
2. Matters concerning stock acquisition rights and treasury stock acquisition rights
Number of shares subject to stock acquisition rights(Thousands of shares)

Balance atAt theIncrease
DecreaseAt the end the end of
the current
beginning of during the during theof theconsolidated
the current
current
current
current
consolidated consolidated consolidated consolidated fiscal year
fiscal year fiscal year fiscal year fiscal year (Thousandsof yen)(Thousands (Thousands (Thousands (Thousandsof shares)of shares)of shares)of shares)

Classification

Breakdown of stockacquisition rights

Class of stock
subject to stockacquisition rights

Submitting
company(parent)

Stock acquisition rights
as stock options

–

–

–

–

–

–

–

–

–

–

–

–

Total

- 23 -

S.T. CORPORATION (4951)
3. Matters relating to dividends(1) Amount of dividend payment(Resolution)

Class of stock

Total amount ofdividend(Thousands ofyen)

Board of Directors
Meeting on May 17,
2021

Common stock

425,590

Board of Directors
Meeting on October27, 2021

Common stock

426,006

Amount ofdividend per share(yen)

Reference date

Effectuation date19

March 31, 2021

June 1, 2021

19

September 30, 2021

December 3, 2021

(Notes) 1. The total amount of dividends decided by the resolution of the Board of Directors on May 17, 2021
includes dividends of 3,687 thousand yen for the shares of the Company owned by Custody Bank ofJapan, Ltd. (Trust E Account).
2. The total amount of dividends decided by the resolution of the Board of Directors on October 27,
2021 includes dividends of 3,687 thousand yen for the shares of the Company owned by Custody
Bank of Japan, Ltd. (Trust E Account).
(2) Out of dividends for which the reference date falls in the current consolidated fiscal year, the effectuation
date for the dividends falls in the following consolidated fiscal year
(Resolution)

Class of stock

Total amountof dividend(Thousands ofyen)

Scheduled Boardof Directors
Meeting on May
16, 2022

Common stock

427,714

Source ofdividends

Retained surplus

Amount ofdividend pershare (yen)Reference date

Effectuation date19

March 31, 2022

June 6, 2022

(Note) The total amount of dividends decided by the resolution of the Board of Directors on May 16, 2022
includes dividends of 5,397 thousand yen for the shares of the Company owned by Custody Bank ofJapan, Ltd. (Trust E Account).

- 24 -

S.T. CORPORATION (4951)(Related to consolidated statement of cash flows)* Relationship between the balance of cash and cash equivalents at the end of the term and the amount of items
posted on the consolidated balance sheet(Thousands of yen)Previous consolidated fiscal
Current consolidated fiscal year
year
(April 1, 2021-March 31, 2022)(April 1, 2020-March 31, 2021)
Cash and deposit accounts
Fixed deposit with a deposit period of more than 3 months“Others” in current assets (note)

11,864,226(60,474)
28,004

11,887,571(67,528)
23,065

Cash and cash equivalents

11,831,757

11,843,109(Note) This is bank account lending that belongs to the trust property of the trust established for the purposeof the “board benefit trust (BBT)” and “board benefit trust (J-ESOP)” schemes.
(Segment information)
Previous consolidated fiscal year (April 1, 2020-March 31, 2021) and current consolidated fiscal year (April 1,
2021-March 31, 2022)
This information is omitted as the Group operates a single segment of the daily necessities business.

- 25 -

S.T. CORPORATION (4951)(Per-share information)
Previous consolidated
Current consolidated fiscal
fiscal year
year
(April 1, 2020-March 31, (April 1, 2021-March 31,
2021)
2022)
Net assets per share (Yen)
1,445.14
1,407.03
Earnings per share (Yen)
113.9049.91
Diluted earnings per share (Yen)
113.7849.91(Notes) 1. The basis for calculating earnings per share and diluted earnings per share is as follows.
Previous consolidated
Current consolidated fiscal
fiscal year
year
(April 1, 2020-March 31, (April 1, 2021-March 31,
2021)
2022)
Earnings per share
Net income attributable to owners of the parent
2,525,981
1,109,175(Thousands of yen)Amount not attributable to ordinary shareholders––(Thousands of yen)
Net income attributable to owners of the parent
2,525,981
1,109,175
relating to common stock (Thousands of yen)
Average number of shares of common stock during
22,17622,223the period (Thousands of shares)
Diluted earnings per share
Net income adjustment amount attributable to––owners of the parent company (Thousands of yen)
Increase in common stock (Thousands of shares)
23
1[Of which, stock acquisition rights (Thousands of[23][1]
shares)]Overview of residual shares that were not included in
the calculation of the amount of diluted earnings per––
share because they do not have a diluting effect.
2. Basis for calculation of net assets per share is as follows.
End of previous
End of current
consolidated fiscal year
consolidated fiscal year
(March 31, 2021)(March 31, 2022)
Total amount of net assets (Thousands of yen)
32,632,859
31,847,636
Amount to be deducted from the total amount of net
542,875
573,422
assets (Thousands of yen)
[Of which, stock acquisition rights (Thousands of[2,328][–]yen)][Of which, non-controlling interests (Thousands of[540,547][573,422]yen)]
Net assets at the end of the period for common stock
32,089,983
31,274,213(Thousands of yen)
Number of common stock at the end of the period used
22,20522,227
to calculate net assets per share (Thousands of shares)
3. The shares of the company remaining in trust recorded as treasury stock in shareholders’ equity areincluded in the treasury stock to be deducted from the total number of issued shares at the end of theperiod in the calculation of net assets per share. (194,000 shares in the previous consolidated fiscal
year, 284,000 shares in the current consolidated fiscal year)
In addition, this is included in treasury stock to be deducted in the calculation of the average numberof shares during the period in the calculation of net income per share and diluted earnings per share.
- 26 -

S.T. CORPORATION (4951)(195,000 shares in the previous consolidated fiscal year, 209,000 shares in the current consolidated
fiscal year)(Significant post-balance sheet events)
Not applicable.

- 27 -

S.T. CORPORATION (4951)

4. Other
Changes of officers (as of June 21 2022)
1. Changes of representative person
Not applicable.
2. Changes of other officers(1) Candidate for new director
Director

Kaoru Yonemoto(Please refer to the biography)(2) Candidate for director for reappointment due to expiration of term of officeDirector

Takako Suzuki(Currently Chairman of the Board of Directors, Representative
Executive Officer and President of the Company,in charge of overall management,
Outside Director of TRUSCO NAKAYAMA Corporation, Director of
Shaldan Co., Ltd.)

Director

Takashi Suzuki(Currently Director, Chairman and Executive Officer of theCompany, in charge of overall management,
Audit & Supervisory Board Member of Shaldan Co., Ltd.)

OutsideDirector

Naoto Onzo

(Currently Outside Director of the Company,
Executive Vice President of Waseda University, Professor in Facultyof Commerce of Waseda University, Outside Director of KING JIM
Co., Ltd., Outside Director of LOTTE CO., LTD.)

OutsideDirector

Mitsuko Miyagawa (Currently Outside Director of the Company, Partner in TMI
Associates)

OutsideDirectorShinzo Maeda(Currently Outside Director of the Company, Outside Director of
YUASA TRADING CO., LTD.)

OutsideDirector

Shoichiro Iwata(Currently Outside Director of the Company, Representative Director
and President of Force Marketing and Management Inc.)

OutsideDirector

Hiroko Noda

(Currently, Outside Director of the Company, Representative of
NODA C.P.A. Accounting Firm, Representative Director of Probity
Consulting Co., Ltd., Part-time Lecturer at Graduate School of Asianand International Business Strategy of Asia University, External
Director at MODEC, Inc., Outside Director (Audit and Supervisory
Committee Member) of Okabe Co., Ltd.)

Director

Seiichi Nishida(Currently, Director and Managing Executive Officer of theCompany, in charge of Corporate Value Enhancing Division,
Customer First Promotion Division, New Business Development, andCorporate Transformation)

Director

Koichi Yoshizawa(Currently, Director and Executive Officer of the Company, in chargeof Business Administration Division and Domestic Group
Companies)(Note)

Subject to appointment at the 75th Ordinary General Meeting of Shareholders scheduled to be held on
June 21, 2022.

(3) Director scheduled to retire due to expiration of term
Not applicable.
(4) Executive Officer to be appointed
Representative
Executive
Officer andPresident

In charge of overall management- 28 -

Takako Suzuki

S.T. CORPORATION (4951)
Board
Chairman andExecutive
Officer

In charge of overall management

Takashi Suzuki

Managing
Executive
Officer

In charge of Corporate Value Enhancing Division, Customer First
Promotion Division, New Business Development, and Corporate
Transformation

Seiichi Nishida

Managing
Executive
Officer

In charge of Professional Use BusinessPresident of S.T. PRO Co., Ltd. (subsidiary of the Company)

Yo Kouzuki

Managing
Executive
OfficerSupervising Global Marketing Division, in charge of Corporate
Communication Division, Research & Development Division,
Overseas Group Companies Management

Kaoru Yonemoto

Executive
Officer

In charge of Business Administration Division and Domestic Group
Companies

Koichi Yoshizawa

Executive
Officer

In charge of Sales Division, General Manager of Domestic Sales
Department

Naruaki Hashimoto

Executive
Officer

In charge of Manufacturing Division

Hideki Naito

Executive
Officer

In charge of Global Marketing Division, and Group Manager ofMarketing Planning, Global Marketing Division

Masataka Shindo(Notes) Subject to appointment at the Board of Directors Meeting of the Company scheduled to be held on
June 21, 2022.
The above nine persons are all executive officers scheduled to be reappointed.
(5) Executive Officer scheduled to retire due to expiration of term
Not applicable.
Candidate for new director[Name][Date of birth][Career]

Kaoru Yonemoto
January 2, 1960
April 1982
October 2018

October 2019
April 2020
April 2021
April 2022

Joined Unicharm Corporation.
Joined the Company
General Manager of Overseas 2nd Business Department,
Business Management Division
Division Manager of Overseas Business Division and GroupManager of Overseas Marketing
Executive Officer in charge of Overseas Business Division andHead of Overseas Group Companies Management Headquarters
Executive Officer in charge of Overseas Business Division and in
charge of Overseas Group Companies Management
Managing Executive Officer of the Company, supervising Global
Marketing Division, in charge of the Corporate Communication
Division, Research & Development Division, Overseas Group
Companies Management (current position)- 29 -