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

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2022
(Based on Japanese GAAP)
October 27, 2022
Nippon Seisen Co.,Ltd.
Company name:
Stock exchange listing: Tokyo
Stock code:
Representative:

5659
URL https://www.n-seisen.co.jp/
President and CEO
Motoshi Shinkai

Inquiries:
General Manager, Accounting DepartmentScheduled date to file Quarterly Securities Report:

Shuichi Nagasawa
November 11, 2022

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

December 5, 2022
No

Holding of quarterly financial results meeting:

NoTEL

06-6222-5432(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2022
Six months ended September 30, 2021
Note: Comprehensive income

Millions of yen
24,712
21,408Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
15.4
1,942 (18.5)
2,039 (17.5)
1,416 (18.6)
39.1
2,383 165.9
2,473 136.7
1,740 137.6

Six months ended September 30, 2022

¥1,838 million [12.3%]

Six months ended September 30, 2021

¥1,637 million [133.4%]

Earnings per share

Diluted earnings per share

Yen
230.97283.73Six months ended September 30, 2022
Six months ended September 30, 2021

Yen––(2) Consolidated financial position
Total assets
Millions of yen
53,197
51,230

As of September 30, 2022
As of March 31, 2022
Reference: Equity

Net assets

Equity ratio

Millions of yen
36,61035,452As of September 30, 2022

¥36,054 million

As of March 31, 2022

¥34,961 million

%
67.8
68.2

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
100.00105.00Yen–Yen
110.00Yen
210.00–105.00210.00Year ending March 31, 2023 (Forecast)

Total

Note: Revisions to the cash dividend forecasts most recently announced: No
3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Full year

Millions of yen
48,500Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
8.3
4,400(4.3)
4,400(4.3)
3,080
(3.1)
502.20Note: Revisions to the earnings forecasts most recently announced: No1

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

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

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

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

6,253,038 shares As of March 31, 2022

6,492,293 shares

120,080 shares As of March 31, 2022

359,255 shares

Number of treasury shares at the end of the period
As of September 30, 2022

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

6,132,977 shares Six months ended September 30, 2021

6,133,204 shares* The Company has introduced “Board Benefit Trust (BBT)” and shares of the Company held by the Trust have been included in treasury
shares excluded from the calculation of the number of treasury shares at the end of the period and the average number of shares
outstanding during the period.
* Quarterly financial results reports are exempt from quarterly review 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.

2

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

As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

15,6409,170

15,302
9,351

Electronically recorded monetary claims - operating
Merchandise and finished goods

840
2,354

939
2,978

Work in process
Raw materials and supplies

4,060
2,398

4,577
2,976

Other

220

285

34,68536,410

4,933

5,253

6,380
1,637

6,574
1,645

Leased assets, net
Construction in progress

23834

20596

Other, net

614

586

14,423

14,677229

203

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

Total property, plant and equipment
Intangible assets
Investments and other assets

1,892

1,906

Total non-current assets

16,545

16,787

51,23053,197

Notes and accounts payable - trade
Short-term borrowings

7,470
355

8,838
272

Income taxes payable
Provision for bonuses

1,086
723

705
741

Provision for bonuses for directors (and other officers)
Other

36
1,213–
994

Total current liabilities

10,886

11,55157––

14

4,6724,727

136
23

137
156

4,891

5,035

15,777

16,587

Total assets
Liabilities
Current liabilities

Non-current liabilities
Provision for retirement benefits for directors (and otherofficers)
Provision for share awards for directors (and otherofficers)
Retirement benefit liability
Provision for environmental measures
Other
Total non-current liabilities
Total liabilities

3

(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Net assets
Shareholders' equity
Share capital

5,000

5,000

Capital surplus
Retained earnings

5,442
25,006

5,558
25,181Treasury shares

(849)

(399)

34,59835,340

15(1)

12(3)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

453
(104)

789
(85)

Total accumulated other comprehensive income

363

714

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

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

4491

556

35,452

36,61051,23053,197

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

Six months ended

September 30, 2021

September 30, 2022

Net sales
Cost of sales

21,40817,424

24,712
21,023Gross profit

3,983

3,689

Selling, general and administrative expenses

1,600

1,746

Operating profit

2,383

1,942

Interest income
Dividend income

5631

Purchase discounts
Compensation income

1023

1116

Rental income
Foreign exchange gains

1245

1262

Reversal of provision for environmental measures
Other00–4105

112

21

7481Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Compensation expenses
Loss on retirement of non-current assets
Other13

Total non-operating expenses

1615

2,473

2,039

00–2

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on liquidation of investment securities
Total extraordinary income

02

2,473

2,042

Income taxes - current

749

622

Income taxes - deferred

(37)

(22)

Profit before income taxes

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

5712

600

1,760

1,441

2025

1,740

1,416

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2021

September 30, 2022

1,760

1,441

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

130(2)(1)

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

(156)
18382
19

Total other comprehensive income

(123)

396

1,637

1,838

1,611

1,767

2671

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

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2021

September 30, 2022

2,473

2,042

Depreciation
Gain on liquidation of investment securities

780–

792
(2)

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for148

209

(13)

(57)

–

14

directors (and other officers)
Increase (decrease) in provision for share awards for directors(and other officers)
Increase (decrease) in provision for bonuses

19

15

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

(26)

(36)

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

(0)
(12)

0(4)

Interest expenses
Foreign exchange losses (gains)

2(57)

1(48)

Loss (gain) on sale of property, plant and equipment
Loss on retirement of property, plant and equipment(0)4(0)
1Decrease (increase) in trade receivables
Increase (decrease) in advances received(753)
23(181)
2

Decrease (increase) in inventories
Decrease (increase) in other current assets

(524)
(40)

(1,593)(7)

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

939
(46)

1,303
(158)

Increase (decrease) in other current liabilities
Other, net

(2)
0(19)
0

2,914

2,272

11(2)

3(1)

Income taxes paid(635)(1,010)Net cash provided by (used in) operating activities2,288

1,264

Payments into time deposits
Proceeds from withdrawal of time deposits

(244)
432

(43)
43

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(760)
0(1,025)
4Purchase of intangible assets
Other, net

(27)
2(20)
(6)

Net cash provided by (used in) investing activities(597)(1,049)SubtotalInterest and dividends received
Interest paid

Cash flows from investing activities

7

(Millions of yen)

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

Six months ended

Six months ended

September 30, 2021

September 30, 2022
(99)–

Repayments of long-term borrowings
Repayments of lease liabilities

(89)
(3)

(89)
(3)

Proceeds from sale of treasury shares
Purchase of treasury shares

–(0)

247
(248)

Dividends paid
Dividends paid to non-controlling interests

(429)
–

(673)
(6)

Net cash provided by (used in) financing activities

(620)

(772)

Effect of exchange rate change on cash and cash equivalents

(2)

174

Net increase (decrease) in cash and cash equivalents

1,067

(383)

Cash and cash equivalents at beginning of period

13,29914,928Cash and cash equivalents at end of period

14,366

14,5458