Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any
discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Fiscal Year Ended December 31, 2022[Japanese GAAP]
February 14, 2023
Company name:
SAKATA INX CORPORATION
Stock exchange listing: Tokyo
Code number:
4633
URL:
https://www.inx.co.jp/english/
Representative:
Yoshiaki Ueno
Representative Director, President & CEO
Contact:
Daisuke Sugahara
General Manager, Finance & Accounting Div.
Phone:+81-6-6447-5823
Scheduled date of Annual General Meeting of Shareholders:March 29, 2023
Scheduled date of commencing dividend payments:
March 30, 2023
Scheduled date of filing annual securities report:
March 29, 2023
Availability of supplementary briefing material on annual financial results:
Yes
Schedule of annual financial results briefing session:
Yes(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2022 (January 1, 2022 to December 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
December 31, 2022
December 31, 2021

Net income attributableto owners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

215,531
181,487

18.8
12.4

4,125
7,414

(44.4)
2.8

4,961
8,506

(41.7)
9.2

4,555
4,933

(7.7)
(6.5)

(Note) Comprehensive income:Fiscal year ended
December 31, 2022
December 31, 2021

Operating income

Fiscal year ended December 31, 2022:
Fiscal year ended December 31, 2021:¥¥

10,783million
12,829million[[(15.9)%]
597.4%]

Basic earnings
per share

Diluted earnings
per share

Rate of return on Ordinary income to Operating income
equitytotal assets ratio to net sales ratio

YenYen%%

%

85.52
84.43

-5.3
6.1

2.9
5.5

1.9
4.1

(Note) Equity in earnings of affiliates:

Fiscal year ended December 31, 2022:¥997million
Fiscal year ended December 31, 2021:¥992million(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the first quarter under review, and each figure for the firstquarter of the fiscal year ending December 31, 2022, is the figure after applying the accounting standard and relevant
ASBJ regulations.
(2) Consolidated Financial Position
Total assets
As ofDecember 31, 2022
December 31, 2021

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

177,403
166,899

92,952
92,46548.6
51.8

1,724.45
1,478.18(Note) Equity: As of December 31, 2022:¥86,272million
As of December 31, 2021:¥86,379million(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the first quarter under review, and each figure for the firstquarter of the fiscal year ending December 31, 2022, is the figure after applying the accounting standard and relevant
ASBJ regulations.
(3) Consolidated Cash Flows
Cash and cash
Cash flows from
Cash flows from
Cash flows fromequivalents at the end
operating activities
investing activitiesfinancing activitiesof period
Million yen
Million yen
Million yen
Million yen
Fiscal year ended
December 31, 2022
4,945
(1,666)(3,897)
11,721
December 31, 2021
7,556
(5,352)(2,875)
12,115

2. Dividends
1stquarterend
Fiscal year ended
December 31, 2021
December 31, 2022
Fiscal year ending
December 31, 2023(Forecast)

Annual dividends
2nd
3rd
quarter- quarter- Year-end
end
end

Total

Yen

Yen

Yen

Yen-

15.00
15.00

-

15.00
15.00

30.00
30.00

-

15.00

-

15.00

30.00

PayoutTotal
ratio
dividends (consolidated)

Yen Million yen

1,752
1,500

Dividends
to netassets(consolidated)

%%

35.5
35.1

2.2
1.9

31.9

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2023 (January 1, 2023 to December
31, 2023)(% indicates changes from the previous corresponding period.)
OperatingincomeNet sales
Million yen

Six months ended June 30, 2023 109,000
Full year
222,000% Million yen

5.3
3.0

2,300
6,000

Net income
Basic earnings
attributable toper shareowners of parent

Ordinary
income% Million yen

13.4
45.4

2,6006,800%

3.837.1

Million yen%

Yen

1,700 (29.2)
4,700
3.2

33.98
93.93

* Notes:(1) Changes in significant subsidiaries during the period under review(changes in specified subsidiaries resulting in changes in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards:
2) Changes in accounting policies other than 1) above:3) Changes in accounting estimates:
4) Retrospective restatement:

YesNoNoNo(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):December 31, 2022:
54,172,361shares
December 31, 2021:
62,601,161shares2) Total number of treasury shares at the end of the period:
December 31, 2022:
4,143,541shares
December 31, 2021:
4,164,408shares
3) Average number of shares during the period:
Fiscal Year ended December 31, 2022:
Fiscal Year ended December 31, 2021:

53,264,337shares
58,431,152shares

(Reference) Summary of Non-consolidated Financial Results1. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2022 (January 1, 2022 to December 31,2022)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
December 31, 2022
December 31, 2021

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

66,14265,938

0.3
7.7

534
1,708

(68.7)
124.4

3,239
4,304

(24.7)
50.9

3,846
3,382

13.7
22.9

Basic earnings
per share

Diluted earnings
per shareYenYenFiscal year ended
December 31, 2022
72.21
December 31, 2021
57.89
(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the first quarter under review, and each figure for the firstquarter of the fiscal year ending December 31, 2022, is the figure after applying the accounting standard and relevant
ASBJ regulations.
(2) Non-consolidated Financial Position

Total assets
As ofDecember 31, 2022
December 31, 2021

Net assets

Equity ratioNet assets per share

Million yen

Million yen%

Yen

93,93997,196

51,60758,51754.9
60.2

1,031.56
1,001.39(Note) Equity: As of December 31, 2022:¥51,607million
As of December 31, 2021:¥
58,517million(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the first quarter under review, and each figure for the firstquarter of the fiscal year ending December 31, 2022, is the figure after applying the accounting standard and relevant
ASBJ regulations.
*This consolidated financial results are not subject to audit procedures by Certified Public Accountants or audit firm.
*Explanation of appropriate use of financial forecasts and other special notes
The above financial forecasts are based on the current available information in the Company and certain reasonableassumption to the Company, and we don't commit to achieve these forecasting numbers. Actual results may differ fromthese forecasts by a variety of reasons.
*Supplementary information will be disclosed on TDnet on February 14, 2023 and will be uploaded on the Company'swebsite.

Consolidated Financial Statements
Consolidated Balance Sheets(Million yen)
As of December 31,2021

As of December 31,2022

12,684

12,12049,36312,80253,862
13,164

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process

1,227

1,514

Raw materials and supplies
OtherAllowance for doubtful accounts

14,562
2,785(566)

18,6692,394(575)

Total current assets

92,860101,150

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

19,642

19,858

Machinery, equipment and vehicles, net
Land
Leased assets, netConstruction in progress
Other, net

10,293
9,396
343
3,055
2,588

10,391
9,816
231
3,814
4,273

Total property, plant and equipment

45,32048,385

Goodwill
Other

453
374

441
1,901

Total intangible assets

827

2,342

Investment securities
Long-term loans receivable

25,69846

23,94232

Retirement benefit asset

803

19

Deferred tax assets
Other
Allowance for doubtful accounts

258
2,065(981)

843
1,696(1,010)

Total investments and other assets

27,89025,524

Intangible assets

Investments and other assets

Total non-current assets
Total assets- 1 -74,039

76,252

166,899

177,403(Million yen)
As of December 31,2021

As of December 31,2022

Notes and accounts payable - trade
Electronically recorded obligations - operating

23,01013,234

23,121
14,316

Short-term loans payable
Current portion of long-term loans payable
Lease obligations

5,133
5,334
193

11,046
1,979
647

Accrued expenses
Income taxes payable

4,156
791

4,656
524

Liabilities
Current liabilities

Provision for bonuses

612

547

Other2,7902,303

Total current liabilities

55,25859,143

Non-current liabilities
Bonds payable

1,000

1,000

Long-term loans payable

5,557

11,244

Lease obligations
Deferred tax liabilities

561
4,065

1,337
3,554

Retirement benefit liability
Asset retirement obligations
Other

4,981
73
2,936

4,869
74
3,226

Total non-current liabilities

19,17625,30774,43484,450Capital stock
Capital surplus

7,472
5,675

7,472
5,672

Retained earnings

76,96771,729Treasury shares(4,010)(4,015)

Total shareholders' equity

86,10480,859Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2,106(2)1,111(0)Foreign currency translation adjustment(1,606)

5,010

Remeasurements of defined benefit plans

(222)

(709)

Total accumulated other comprehensive income

275

5,412

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income

Non-controlling interests

6,085

6,680

Total net assets

92,46592,952

166,899

177,403

Total liabilities and net assets- 2 -Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended December 31,2021

For the fiscal year
ended December 31,2022

Net sales

181,487

215,531

Cost of sales

143,803

176,312Gross profit

37,684

39,218Selling, general and administrative expenses

30,26935,093Operating income

7,414

4,125

Non-operating income
Interest income

7065

Dividend income
Real estate rent
Equity in earnings of affiliates

330
181
992

235
180
997

Other

260

347

1,835

1,825

Interest expenses
Foreign exchange losses

238
294

531
250

Commission expenses

84100

Other

125

107

Total non-operating expenses

743

990

8,506

4,961

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

11475

1,442

Subsidy income

100100Total extraordinary income

290

1,542

22425

218

Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Provision of allowance for doubtful accounts

565-

Total extraordinary losses

1,013

218

Income before income taxes

7,784

6,284

Income taxes - current
Income taxes - deferred

1,796357

1,856(508)

Total income taxes

2,153

1,348

Net income

5,630

4,935

697

380

4,933

4,555

Net income attributable to non-controlling interests
Net income attributable to owners of parent- 3 -Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended December 31,2021

For the fiscal year
ended December 31,2022

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

5,630

4,935354(2)

(953)
2

Foreign currency translation adjustmentRemeasurements of defined benefit plans, net of tax
Share of other comprehensive income of affiliates
accounted for using equity method

4,414
831

5,487(473)

1,600

1,784

Total other comprehensive income
Comprehensive income

7,198

5,847

12,82910,783

11,653

9,692

1,175

1,091

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 4 -Consolidated Statements of Changes in Net Assets
For the fiscal year ended December 31,2021(Million yen)
Shareholders' equity
Capitalsurplus

Capital stock
Balance at beginning of current period

7,472

Retainedearnings

5,672

Total
shareholders'equityTreasury
shares73,918(4,027)83,035

Changes of items during the period
Dividends of surplus(1,752)(1,752)

Net income attributable to owners of parent

4,933

4,933

Purchase of treasury shares
Disposal of treasury shares

2

Change in scope of consolidation

(0)

(0)

17

20(120)

(120)

(11)

(11)

Change of scope of consolidation in entities
accounted for using equity method
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

-2

3,048

17

3,068

7,472

5,675

76,967(4,010)83,104

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities

Balance at beginning of current period

1,652

(0)

Foreigncurrencytranslation
adjustment(7,281)

TotalRemeasurements accumulatedof defined benefit
otherplanscomprehensive
income(1,045)(6,674)

Noncontrollinginterests

Total net
assets

5,060

81,421

Changes of items during the periodDividends of surplus(1,752)

Net income attributable to owners of parent

4,933

Purchase of treasury shares(0)

Disposal of treasury shares

20

Change in scope of consolidation(120)

Change of scope of consolidation in entities(11)

accounted for using equity method
Net changes of items other than shareholders'equityTotal changes of items during period
Balance at end of current period

454

(2)

5,675

822

6,950

1,024

7,974

454

(2)

5,675

822

6,950

1,024

11,0432,106(2)(1,606)

(222)

275

6,085

92,465- 5 -For the fiscal year ended December 31,2022(Million yen)
Shareholders' equity
Capitalsurplus

Capital stock
Balance at beginning of current period

7,472

Retainedearnings

5,675

Total
shareholders'equity

Treasuryshares

76,967(4,010)86,104

Changes of items during the period
Dividends of surplus(1,626)(1,626)

Net income attributable to owners of parent

4,555

4,555

Purchase of treasury shares(8,193)(8,193)

(0)

20

20

Cancellation of treasury shares(8,167)

8,167-

Transfer from retained earnings to capital surplus

8,165(8,165)-(2)(5,237)(4)(5,244)

7,472

5,672

71,729(4,015)80,859

Disposal of treasury shares-Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities

Balance at beginning of current period

2,106

(2)

Foreigncurrencytranslation
adjustment(1,606)

Total
Remeasurements accumulatedof defined benefit
otherplanscomprehensiveincome

(222)

275

Noncontrollinginterests

Total net
assets

6,085

92,465

Changes of items during the period
Dividends of surplus(1,626)

Net income attributable to owners of parent

4,555

Purchase of treasury shares(8,193)

Disposal of treasury shares

20

Cancellation of treasury shares-

Transfer from retained earnings to capitalsurplus-

Net changes of items other than shareholders'equityTotal changes of items during period
Balance at end of current period(994)

26,616(487)

5,136

595

5,732(994)

26,616(487)

5,136

595

487

1,111(0)

5,010

(709)

5,412

6,680

92,952- 6 -Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended December 31,2021

For the fiscal year
ended December 31,2022

7,784
4,306
86

6,284
4,799
107

Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability451(582)
96(57)
784(82)

Increase (decrease) in provision for bonuses
Interest and dividend income

48(400)

(66)
(301)

Interest expenses

238

531

Equity in (earnings) losses of affiliates
Loss (gain) on sales of investment securities
Loss (gain) on sales and retirement of non-current assets

(992)
(75)
(92)

(997)
(1,442)-Loss on retirement of non-current assets

425

218

Subsidy income
Decrease (increase) in notes and accounts receivable -(100)(100)(3,629)(860)(4,809)(1,241)

7,184(1,175)

Cash flows from operating activities
Income before income taxes
Depreciation and amortzation
Amortization of goodwill

trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - tradeincluding electronically recorded obligations - operating
Other, net(752)345

Subtotal

9,185

6,747

Interest and dividend income received

747
(233)

645
(550)

Interest expenses paid
Proceeds from subsidy income

100100

Income taxes paid

(2,243)(1,997)

Net cash provided by (used in) operating activities

7,556

4,945

(5,276)(4,817)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

299

58

Purchase of intangible assets
Purchase of investment securities

(912)
(98)

(1,643)(368)

Proceeds from sales of investment securities

160

4,628

Payments of loans receivableCollection of loans receivable

(49)
49

(23)
77

Other, net

474

423

(5,352)(1,666)

Net cash provided by (used in) investing activities- 7 -(Million yen)

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

For the fiscal year
ended December 31,2021

For the fiscal year
ended December 31,2022

225

4,763

Proceeds from long-term loans payable

1,044

7,581

Repayments of long-term loans payable
Proceeds from issuance of bonds(3,003)1,000(5,668)-

Cash dividends paid

(1,752)(1,626)

Dividends paid to non-controlling interests

(278)

(642)

Proceeds from share issuance to non-controllingshareholders

127

146

Purchase of treasury shares
Other, net

(0)
(238)

(8,193)(256)(2,875)(3,897)679

225

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
Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation
Cash and cash equivalents at end of period- 8 -7(393)

11,678

12,115429-

12,115

11,721