Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2022
(Based on Japanese GAAP)
April 27, 2022
Company name:

Nippon Seisen Co.,Ltd.

Stock exchange listing: Tokyo
Stock code:
5659
Representative:
Inquiries:

URL

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

President and CEO
General Manager, Accounting Department

Motoshi Shinkai
Shuichi NagasawaScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 29, 2022
June 30, 2022

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 30, 2022
Yes

Holding of financial results meeting:

NoTEL

06-6222-5432(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2022
44,795
31.3
4,596
93.1
4,599
76.7
3,177
74.1
Year ended March 31, 2021
34,108
(2.3)
2,380
23.5
2,602
30.1
1,825
30.8
Note: Comprehensive income

Year ended March 31, 2022
Year ended March 31, 2021
Earnings per share¥3,531 million [72.3%]¥2,049 million [55.8%]
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
salesparent/equity
Yen%%%
–
9.4
9.5
10.3
–
5.7
5.8
7.0

Diluted earnings pershareYen
518.10297.66

Year ended March 31, 2022
Year ended March 31, 2021

Reference: Share of profit (loss) of entities accounted for using equity method¥– million¥– million

Year ended March 31, 2022
Year ended March 31, 2021

(2) Consolidated financial position
Total assets
Millions of yen
51,23046,071

As of March 31, 2022
As of March 31, 2021
Reference: Equity

Net assets

As of March 31, 2022
As of March 31, 2021

Millions of yen
35,452
32,974Equity ratio

Net assets per share
%
68.2
70.7

Yen
5,700.58
5,309.46¥34,961 million¥32,564 million(3) Consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021

Cash flows fromoperating activities
Millions of yen
4,473
3,965

Cash flows frominvesting activities
Millions of yen(1,700)(1,787)1

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(1,337)
14,928(702)
13,299

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

40.00
100.00––70.00
110.00110.00210.00

674
1,287

37.0
40.5

2.1
3.8

–

105.00–105.00210.0041.8

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
24,00012.1
2,200(7.7)
2,200 (11.0)
1,540 (11.5)
251.10
September 30, 2022
Full year
48,5008.3
4,400(4.3)
4,400(4.3)
3,080(3.1)
502.194. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

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

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

6,492,293 shares As of March 31, 2021

6,492,293 shares359,255 shares As of March 31, 2021

359,054 shares

Number of treasury shares at the end of the period
As of March 31, 2022
Average number of shares during the period
Year ended March 31, 2022

6,133,148 shares Year ended March 31, 2021

2

6,133,397 shares

(Reference) Overview of non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1)Non-consolidated operating results(Percentages indicate year-on-year changes)
Net Sales
Operating profitOrdinary profit
ProfitYear ended March 31, 2022
Year ended March 31, 2021

Millions of yen
39,95831,490% Millions of yen
26.9
4,090
(1.6)
2,200

Earnings per share

Millions of yen
3,951
2,347

%
68.4
41.7

Millions of yen
2,809
1,630

%
72.3
42.5

Diluted earnings per share
Yen––Yen
458.16265.85

Year ended March 31, 2022
Year ended March 31, 2021

%
85.9
33.8

(2)Non-consolidated financial position
Total assets
As of March 31, 2022
As of March 31, 2021
Reference: Equity

Net assets

Millions of yen
45,80641,894

Millions of yen
31,55829,812As of March 31, 2022

¥31,558 million

As of March 31, 2021

¥29,812 million

Equity ratio

Net assets per share%
68.9
71.2

Yen
5,145.73
4,860.89* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Explanation of proper use of financial results forecast, and other special matters(Caution concerning forward-looking statements)
The above forecasts of financial results are based on information currently available to the Company and on certain assumptions deemed to bereasonable. However, the Company makes no guarantee that these forecasts will be achieved. Consequently, actual business and other results
may differ substantially due to various factors.

3Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

13,776
8,210

15,6409,170

Electronically recorded monetary claims - operating
Merchandise and finished goods

537
1,856

840
2,354

Work in process
Raw materials and supplies

3,457
1,618

4,0602,398

Other

174

220

29,631

34,685

13,29814,038

Accumulated depreciation(8,834)(9,104)

Buildings and structures, net

4,464

4,933

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

31,042

31,047

Accumulated depreciation(24,639)(24,667)

6,402

6,380

1,630

1,637

18(8)

35
(11)

Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net

1023

Construction in progress
Other

959
2,473

834
2,630

(1,873)(2,015)

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software599

614

14,067

14,423

203

199

Software in progress
Other

20
32

–
29

Total intangible assets

255

229

Investments and other assets
Investment securities

326

66

Deferred tax assets
Other

1,583
206

1,630
194

Total investments and other assets
Total non-current assets
Total assets

4

2,116

1,892

16,43916,54546,071

51,230(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

5,494

7,470

Short-term borrowings
Lease liabilities

440
3355
7

Income taxes payable
Accrued consumption taxes

700
165

1,086
163

Provision for bonuses
Provision for bonuses for directors (and other officers)

580
26

723
36

Other

866

1,042

8,277

10,886Long-term borrowings
Lease liabilities

194
7–
18

Provision for retirement benefits for directors (and otherofficers)

63

57

0
4,544

136
4,672

9

5

Total current liabilities
Non-current liabilities

Provision for environmental measures
Retirement benefit liability
OtherTotal non-current liabilities

4,820

4,891

13,097

15,777

Share capital
Capital surplus

5,000
5,442

5,000
5,442

Retained earnings
Treasury shares

22,880(849)

25,006(849)

Total shareholders' equity

32,47334,59825

15

Deferred gains or losses on hedges
Foreign currency translation adjustment

(0)
174

(1)
453

Remeasurements of defined benefit plans

(109)

(104)

90363

Total liabilities
Net assets
Shareholders' equity

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

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5409

491

32,97435,452

46,071

51,230Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales

34,10844,795

Cost of sales

28,58936,851Gross profit

5,518

7,944

Selling, general and administrative expenses

3,138

3,348

Operating profit

2,380

4,596

Non-operating income
Interest income

712

Dividend income
Purchase discounts

12151421

Rental income
Compensation income

2436

2445

Foreign exchange gains
Subsidies for employment adjustment

30128

111
–

Other

136

Total non-operating income

269

237

Interest expenses
Sales discounts

5164–

Compensation expenses
Loss on retirement of non-current assets

791375

Provision for environmental measures
Other–
7136
3

Total non-operating expenses

47

233

2,602

4,599

Gain on sale of non-current assets
Gain on sale of investment securities

––

068

Total extraordinary income–

68

–

245–

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sale of investment securities
Loss on valuation of golf club membership
Total extraordinary losses

524

2,597

4,644

Income taxes - current

891

1,467

Income taxes - deferred

(137)

(42)

Profit before income taxes

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

6754

1,425

1,842

3,219

16

41

1,825

3,177

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year endedMarch 31, 2021

March 31, 2022
1,842

3,219

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

58
(0)

(10)
(1)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

64
84

318
4

Total other comprehensive income

207

312

2,049

3,531

2,027

3,450

2181

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

7

Consolidated statements of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

5,000

Retained earnings

5,442

Total shareholders'equity

Treasury shares

21,575(847)

31,170Changes during period
Dividends of surplus

(521)

(521)

Profit attributable to ownersof parent

1,825

1,825

Purchase of treasury shares

(1)

(1)

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

––

1,304

(1)

1,303

5,000

5,442

22,880(849)

32,473

Accumulated other comprehensive incomeBalance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges(33)0Foreigncurrencytranslation
adjustment
115

Remeasurementsof defined
benefit plans

(193)

Total
accumulated Non-controlling
Total net assetsinterests
othercomprehensive
income(111)

387

31,446

Changes during period
Dividends of surplus(521)

Profit attributable to ownersof parent

1,825

Purchase of treasury shares(1)

Net changes in items otherthan shareholders' equity

58(0)Total changes during period58(0)Balance at end of period25(0)

59884

202

21

224

5984

202

21

1,527

174(109)90409

32,974

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

5,000

Retained earnings

5,442

22,880

Cumulative effects ofchanges in accounting
policies

Total shareholders'equity

Treasury shares(849)

32,473(9)

Restated balance

5,000

5,442

(9)

22,871(849)

32,464

Changes during period
Dividends of surplus(1,042)(1,042)

Profit attributable to ownersof parent

3,177

3,177

Purchase of treasury shares

(0)

(0)

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

––

2,134

(0)

2,134

5,000

5,442

25,006(849)34,598

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges25(0)Foreigncurrencytranslation
adjustment
174

Remeasurementsof defined
benefit plans

(109)

Total
accumulated Non-controlling
Total net assetsinterests
othercomprehensive
income90409

Cumulative effects ofchanges in accounting
policies
Restated balance

32,974(9)25(0)

174(109)90

409

32,965

Changes during period
Dividends of surplus(1,042)

Profit attributable to ownersof parent

3,177

Purchase of treasury shares(0)

Net changes in items otherthan shareholders' equity

(10)

(1)

279

Total changes during period

(10)

(1)

Balance at end of period

15(1)

94272

81

353

279

4272

81

2,487

453

(104)

363

491

35,452

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
2,597

4,644

1,531
5

1,582
–

267

122

15(5)

30

142

Increase (decrease) in provision for bonuses for directors (andother officers)

3

10

Increase (decrease) in provision for environmental measures
Interest and dividend income

(0)
(20)

136
(26)

Interest expenses
Foreign exchange losses (gains)

5(33)

4(83)

–
9(0)
75

Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables–(983)(44)(1,330)

Increase (decrease) in advances received
Decrease (increase) in inventories

25215

12(1,683)

Decrease (increase) in other current assets
Increase (decrease) in trade payables

2511

(13)
1,931

Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities

(58)
100

069

Depreciation
Loss on valuation of golf club membership
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in provision for bonuses

Loss (gain) on sale of property, plant and equipment
Loss on retirement of property, plant and equipment

Other, net

00

Subtotal

4,224

5,543

Interest and dividends received

2026

Interest paid
Income taxes paid

(5)
(274)

(4)
(1,091)

Net cash provided by (used in) operating activities

3,965

4,473(477)

(951)

217
(1,480)738(1,714)

0(51)

0(68)

–4292
2(1,787)(1,700)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
Proceeds from sale of investment securities
Other, net
Net cash provided by (used in) investing activities

10

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
–

(110)

Repayments of long-term borrowings
Repayments of lease liabilities

(178)
(3)

(178)
(6)

Decrease (increase) in treasury shares
Dividends paid

(1)
(520)

(0)
(1,041)

Net cash provided by (used in) financing activities(702)(1,337)

Effect of exchange rate change on cash and cash equivalents

58192

Net increase (decrease) in cash and cash equivalents

1,533

1,628

Cash and cash equivalents at beginning of period

11,766

13,299Cash and cash equivalents at end of period

13,29914,92811