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.

July 30, 2021

Consolidated Financial Results
for the First Three Months of the Fiscal Year Ending March 31, 2022
(Under Japanese GAAP)
Company name:
Konishi Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4956
URL:
http://www.bond.co.jp/
Representative:
Keiichi Oyama, Representative Director and President
Inquiries:
Shozo Arisawa, Director and Senior Managing Executive Officer
TEL:+81-6-6228-2877
Scheduled date to file quarterly securities report:
August 10, 2021
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the first three months of the fiscal year ending March 31, 2022
(from April 1, 2021 to June 30, 2021)(1) Consolidated operating results (cumulative)
Net sales

Operating profit

First three months ended Millions of yen
June 30, 2021
25,996
June 30, 2020
23,567
Note: Comprehensive income(Percentages indicate year-on-year changes.)% Millions of yen

10.3–% Millions of yen

1,554
1,017

52.8
–

1,689
1,112

For the first three months ended June 30, 2021:
For the first three months ended June 30, 2020:
Basic earnings
per shareFirst three months ended
June 30, 2021
June 30, 2020

Profit attributable toowners of parent

Ordinary profit% Millions of yen

51.9
–

1,158
661

%

75.3
–

¥1,184 million [17.8%]¥1,005 million[–%]

Diluted earnings per
share
Yen

Yen

32.55
18.25

–
–

Note: Konishi Co., Ltd. (the “Company”) has applied the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations from the beginning of the first quarter ofthe current fiscal year, and each figure for the first three months ended June 30, 2020, is the figure after
retrospectively applying the accounting standard and relevant revised ASBJ regulations. Consequently, the percentageof year-on-year change of each figure for the first three months ended June 30, 2020, is not shown.

(2) Consolidated financial position
Total assets
As ofJune 30, 2021
March 31, 2021
Reference:

EquityNet assets

Millions of yen

Millions of yen

110,622
113,800

69,11968,785Equity-to-asset ratio
%

58.9
56.9

As of June 30, 2021:¥65,123 million
As of March 31, 2021:¥64,780 million
Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant revised ASBJ regulations from the beginning of the first quarter of the current fiscal year, andeach figure as of March 31, 2021, is the figure after retrospectively applying the accounting standard and relevant
revised ASBJ regulations.

2. Cash dividends
Annual dividends
First quarter-end
Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022

Second quarter-end Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

–

18.00

–

22.00

40.00

20.00

–

20.00

40.00

–

Fiscal year ending
March 31, 2022
(Forecast)

Note: Revisions to the forecasts of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2022 (from April 1, 2021 toMarch 31, 2022)
Net sales

Six months ending
September 30, 2021
Fiscal year ending
March 31, 2022

(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit

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

%

Yen

50,500

1.9

2,650

1.3

2,780

1.2

1,720

0.6

47.95

109,500

2.3

7,200

1.7

7,500

1.0

4,940

0.2

137.72

Note: Revisions to the consolidated earnings forecasts most recently announced: None
Note: At this time, the earnings forecasts are unchanged from the forecasts announced in April 30, 2021, as it is extremely
difficult to properly and rationally estimate the impact of the spread of COVID-19. If a revision to the earnings
forecasts becomes necessary in the future, we will promptly disclose it.

* Notes(1) Changes in significant subsidiaries during the first three months ended June 30, 2021 (changes in
specified subsidiaries resulting in the change in scope of consolidation): None
(2) Application of special accounting for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
Note: For details, please refer to “2. Quarterly consolidated financial statements and significant notes
thereto (3) Notes to quarterly consolidated financial statements, Changes in accounting policies”
on page 9 of the financial results report (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 June 30, 2021

40,707,440 shares

As of March 31, 2021

40,707,440 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2021

5,102,123 shares

As of March 31, 2021

5,102,082 shares(iii) Average number of shares outstanding during the period
For the first three months ended June 30, 2021

35,605,327 shares

For the first three months ended June 30, 2020

36,224,830 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the earnings forecasts stated in these materials, are based on
information currently available to the Company and certain assumptions deemed reasonable. Results
may differ materially from the earnings forecasts due to various factors. For the assumptions used as thebasis for the earnings forecasts and special remarks regarding the use of the earnings forecasts, pleaserefer to “1. Qualitative information regarding financial results for the first three months (3) Explanationof consolidated earnings forecasts and other forward-looking statements” on page 4 (Attached Material).

Konishi Co., Ltd. (4956)

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

Konishi Co., Ltd. (4956)

1. Qualitative information regarding financial results for the first three months(1) Explanation of operating results
During the three months ended June 30, 2021 (the first three months under review), Japan’s economy
continued to suffer from sluggish personal consumption and a contraction in business activity due tothe continued spread of COVID-19 and the re-issuance of semi-state of emergency coronavirus
measures and the declaration of a state of emergency. Vaccinations have commenced and othermeasures are being taken, but it is still uncertain whether the spread of the virus will be contained.
In the main industries related to the Company and its subsidiaries (the “Group”), in the housing
industry, the number of new housing starts which had fallen after the spread of COVID-19 began torecover, while in the automotive industry the recovery trend continued.
In the civil engineering and construction work industry, demand for redevelopment of urban areas,
repair and improvement works of buildings, and demand for maintenance and mending of
infrastructure such as roads and railroads remained strong.
As a result, the Group’s operating results for the first three months under review, which partly reflect
the reaction to the significant impact of COVID-19 in the same period of the previous fiscal year, wereas follows. Net sales increased 10.3% year on year to 25,996 million yen, operating profit increased
52.8% year on year to 1,554 million yen, ordinary profit increased 51.9% year on year to 1,689 million
yen, and profit attributable to owners of parent increased 75.3% year on year to 1,158 million yen.
The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) andother relevant standards have been applied from the beginning of the first quarter of the current fiscal
year, and comparative analysis is based on figures after retrospective application. For details, pleaserefer to “2. Quarterly consolidated financial statements and significant notes thereto (3) Notes toquarterly consolidated financial statements, Changes in accounting policies.”
Results by segment are as follows.
The Group’s business segments were “Bond,” “Civil Engineering and Construction,” and “Chemicals.”
However, from the first quarter of the current fiscal year, the business of adhesives, repair materials,
and sealants used in the civil engineering and construction field, which were included in “Civil
Engineering and Construction,” was transferred to “Bond,” and the business segments have beenreorganized as “Bond,” “Chemicals,” and “Construction.” This was due to the change in management
structure to further enhance the construction contracting business for repair, improvement andreinforcement of social infrastructure and building stock markets from April 2021 onwards.
The following comparisons with the same period of the previous fiscal year are based on figures
prepared in accordance with the new segment classifications.
(i) Bond (synthetic adhesive)
In the general household field, sales decreased due to the sluggish performance of sales throughconvenience stores and sales through home improvement stores.
Sales of adhesives for interior work and adhesives for interior building materials in the housingrelated field, increased due to the recovery of the number of new housing starts.
Sales of adhesives such as water-based adhesives for use in paper-related application, and elastic
adhesives for use in such applications as automotive and electrical components in the industrial
material field significantly increased due to the favorable performance overall.
In the construction field, sales of materials used for building repairs and building sealants
increased, partly reflecting the reaction to the suspension of various construction projects in thesame period of the previous fiscal year due to the effects of COVID-19.
In the civil engineering field, however, sales decreased due to the sluggish performance of methods
for surface protection and for preventing detachment.

-2-

Konishi Co., Ltd. (4956)

As a result of the above, net sales increased 9.5% year on year to 14,647 million yen and operating
profit increased 52.2% year on year to 1,052 million yen.
(ii) Chemicals
In the chemical engineering field, although sales of resin materials were strong, sales of ethanolrelated products fell sharply in reaction to last year’s emergency demands, and sales were on a parwith those in the same period of the previous fiscal year.
In the automotive field, sales of products used in automotive electrical components increased
significantly in reaction to the significant impact of COVID-19 in the same period of the previous
fiscal year. In addition, sales also increased in the electronic and electrical field, and coating
materials field.
Sales at MARUYASU & CO., LTD. significantly increased due to the strong performance of
products for use in semiconductor manufacturing and products for use in capacitors.
As a result of the above, net sales increased 25.5% year on year to 7,723 million yen and operating
profit increased 208.1% year on year to 243 million yen.
(iii) Construction
In the Civil Engineering and Construction Business, sales decreased due to the delay ofconstruction work although the orders of repair, improvement, and reinforcement works in theinfrastructure, particularly for public works, and used building markets were steady.
As a result of the above, net sales decreased 9.9% year on year to 3,580 million yen and operating
profit increased 13.1% year on year to 222 million yen.
(iv) OtherThe Other segment represents the Real Estate Rental Business. Net sales decreased 28.4% year on
year to 45 million yen and operating profit decreased 36.4% year on year to 30 million yen.
(2) Explanation of financial position
Assets, liabilities and net assets
Total assets as of June 30, 2021 decreased by 3,178 million yen from the previous fiscal year-end to110,622 million yen.
(i) Assets
Current assets decreased by 2,740 million yen from the previous fiscal year-end to 73,248 million
yen mainly due to a decrease of 6,729 million yen in notes and accounts receivable - trade, andcontract assets, despite an increase of 3,993 million yen in electronically recorded monetary claims- operating. Non-current assets decreased by 437 million yen from the previous fiscal year-end to37,374 million yen mainly due to a decrease of 324 million yen in investment securities.
(ii) Liabilities
Current liabilities decreased by 3,576 million yen from the previous fiscal year-end to 35,857
million yen mainly due to a decrease of 1,407 million yen in notes and accounts payable - trade anda decrease of 1,405 million yen in income taxes payable. Non-current liabilities increased by 63
million yen from the previous fiscal year-end to 5,645 million yen mainly due to an increase of 34
million yen in retirement benefit liability.
(iii) Net assets
Net assets increased by 334 million yen from the previous fiscal year-end to 69,119 million yen
mainly due to an increase of 375 million yen in retained earnings.

-3-

Konishi Co., Ltd. (4956)(3) Explanation of consolidated earnings forecasts and other forward-looking statements
At this time, the earnings forecasts are unchanged from the forecasts announced in April 30, 2021, as it
is extremely difficult to properly and rationally estimate the impact of the spread of COVID-19. If arevision to the earnings forecasts becomes necessary in the future, we will promptly disclose it.

-4-

Konishi Co., Ltd. (4956)

2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Electronically recorded monetary claims operating
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
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

As of June 30, 2021

23,87623,15538,72731,998

4,588

8,581

6,254
248
1,039
1,302
(48)
75,989

6,574
271
1,251
1,463
(47)
73,24812,462
13,34925,812991

12,501
13,32025,822
961

8,005
3,020
(18)
11,00737,811
113,800

7,681
2,927
(18)
10,59037,374
110,622

Konishi Co., Ltd. (4956)(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
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-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

As of June 30, 2021

29,525
3,116
48
81
1,617
1,108

28,117
2,884
53
91
211
632

113

26

3,821
39,433

3,839
35,857

440
836
4,305
5,582
45,015

435
870
4,339
5,645
41,502

4,603
4,526
57,596(5,541)
61,185

4,603
4,526
57,972(5,541)
61,560

2,643

2,448

(0)
(66)
1,019
3,595
4,004
68,785
113,800

(0)
100
1,014
3,562
3,995
69,119110,622

Konishi Co., Ltd. (4956)(2) Consolidated statement of income (cumulative) and consolidated statement of comprehensive
income (cumulative)
Consolidated statement of income (cumulative)(Millions of yen)Three months ended
June 30, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodDepreciation
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of investment securities
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-7-

Three months ended
June 30, 2021

23,567
18,698
4,869
3,851
1,017

25,996
20,517
5,478
3,923
1,554

2
90

1
94

–

2

42
136

47
146

3
5

2
–

15

–

6
11
41
1,112

6
1
10
1,689

3
–
3

1
17
19

12
11
23
1,092
167
216
383
708
47
661

0
12
12
1,696
210
277
487
1,208
49
1,158

Konishi Co., Ltd. (4956)

Consolidated statement of comprehensive income (cumulative)(Millions of yen)Three months ended
June 30, 2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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 ofparentComprehensive income attributable to noncontrolling interests-8-

Three months ended
June 30, 2021

708

1,208

334
0
(57)
23

(206)
(0)
190
(4)

(3)

(3)

297
1,005

(24)
1,184

901

1,126

104

57

Konishi Co., Ltd. (4956)(3) Notes to quarterly consolidated financial statements
Notes on premise of going concern
Not applicable.
Notes on significant changes in the amount of shareholders’ equity
Not applicable.
Changes in accounting policies
Application of Accounting Standard for Revenue Recognition and relevant revised ASBJ regulations
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant revised ASBJ regulations effective from the beginning of the firstquarter of the current fiscal year, and it 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 ofsaid goods or services.
The major revisions due to the application of the accounting standard are as follows.
(1) Revenue recognition for agent transactions
Regarding revenue from the sale of products mainly in the Bond Business and the Chemicals Business,
the Company previously recognized the total amount of consideration received from customers asrevenue. However, for transactions in which the Company’s role in providing goods to customers isthat of an agent, the Company has changed to recognizing revenue as the net amount received from thecustomer less the amount paid to the supplier of the goods.
(2) Revenue recognition for construction contracts
In the past, the percentage-of-completion method was applied to construction contracts in theConstruction Business if the outcome of the contracted work was deemed certain, while the completedcontract method was applied to construction contracts that did not meet this requirement. However, theCompany has changed its method to recognizing revenue over a certain period of time as performanceobligations are satisfied. If the extent of progress toward satisfaction of the performance obligation
cannot be reasonably measured, revenue is recognized only to the extent of the actual cost incurred. If
the period between the date of commencement of the transaction in the contract and the time when theperformance obligation is expected to be fully satisfied is very short, the Company does not recognize
revenue over a certain period of time but recognizes revenue when the performance obligation is fully
satisfied.
(3) Revenue recognition for transactions including variable consideration
In the past, rebates, etc., mainly in the Bond Business and the Chemicals Business, were deducted fromnet sales when the amount was fixed. However, the method has been changed to reflect thesecomponents in the transaction price only to the extent that it is highly probable that there will be no
significant reversal of the accumulated amount of revenue recognized when the uncertainty regarding
variable consideration is subsequently resolved. In addition, sales discounts, which were previously
recorded as non-operating expenses, are now deducted from net sales.
This change in accounting policy has been applied retrospectively in principle, and the quarterly
consolidated financial statements and consolidated financial statements for the same period of theprevious fiscal year and the previous fiscal year adjusted retrospectively.
As a result, net sales, cost of sales, operating profit, and non-operating expenses for the first threemonths ended June 30, 2020 decreased by 5,848 million yen, 5,799 million yen, 49 million yen, and 50
million yen, respectively, and ordinary profit and profit before income taxes increased by 0 million yen
each, compared with the results before the retrospective application.

-9-

Konishi Co., Ltd. (4956)

As a result of the cumulative effect being reflected in the net assets at the beginning of the previous
fiscal year, the balance of retained earnings at the beginning of the previous fiscal year decreased by 42
million yen.
Due to the application of the Accounting Standard for Revenue Recognition and relevant revised ASBJ
regulations, “Notes and accounts receivable - trade,” which was presented in “Current assets” in the
consolidated balance sheet for the previous fiscal year, is now included in “Notes and accounts
receivable - trade, and contract assets” from the first quarter of the current fiscal year.
Application of Accounting Standard for Fair Value Measurement and Its Implementation Guidance
The Company applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and its implementation guidance from the beginning of the first quarter of the current
fiscal year. Furthermore, the Company will prospectively apply the new accounting policies prescribedby the Accounting Standard for Fair Value Measurement and its implementation guidance inaccordance with the transitional treatments prescribed in Paragraph 19 of the Accounting Standard for
Fair Value Measurement and Paragraph 44-2 of the Accounting Standard for Financial Instruments(ASBJ Statement No. 10, July 4, 2019). The resulting effect on the quarterly consolidated financial
statements is nothing.
Segment information
1. Disclosure of net sales and profit or loss by reportable segment
Three months ended June 30, 2020
(Millions of yen)
Reportable segments

Amount inconsolidated
statement ofincome(Note) 3

Bond

Chemicals

Construction

Total

Other
(Note) 1(1) Revenues fromexternal customers

13,377

6,153

3,973

23,50462

23,567–23,567(2) Intersegment sales
and transfers

86

30

–

116

21

137

(137)

–

Total

13,463

6,183

3,973

23,62084

23,705(137)

23,567

Segment profit

691

78

197

967

47

1,015

2

1,017

Total

Adjustments(Note) 2

Net sales

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

- 10 -

Konishi Co., Ltd. (4956)

Three months ended June 30, 2021
(Millions of yen)
Reportable segments
Bond

Chemicals

Construction

Total

Other
(Note) 1

Total

Adjustments(Note) 2

Amount inconsolidated
statement ofincome(Note) 3

Net sales(1) Revenues fromexternal customers

14,647

7,723

3,580

25,95145

25,996–25,996(2) Intersegment sales
and transfers

72

41

–

114

20

135

(135)

–

Total

14,720

7,765

3,580

26,065

65

26,131(135)

25,996

Segment profit

1,052

243

222

1,518

30

1,549

5

1,554

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

2. Matters concerning changes to reportable segments
As stated in the “Changes in accounting policies” section, the Company has applied the“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) andrelevant revised ASBJ regulations from the beginning of the first quarter of the current fiscal
year and changed the accounting method for revenue recognition. Therefore, the measurement
method for profit or loss in the business segment has also changed.
Additionally, the Group’s business segments were “Bond,” “Civil Engineering andConstruction,” and “Chemicals.” However, from the first quarter of the current fiscal year, thebusiness of adhesives, repair materials, and sealants used in the civil engineering andconstruction field, which were included in “Civil Engineering and Construction,” wastransferred to “Bond,” and the business segments have been reorganized as “Bond,”“Chemicals,” and “Construction.” This was due to the change in management structure to further
enhance the construction contracting business for repair, improvement and reinforcement ofsocial infrastructure and building stock markets from April 2021 onwards.
The segment information for the first three months ended June 30, 2020 is disclosed based on
the new method of measuring profit or loss and the classification of reportable segments.
3. Disclosure of impairment loss on non-current assets or goodwill, etc. by reportable segment
Not applicable.

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