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.

October 31, 2022

Consolidated Financial Results for
the First Six Months of the Fiscal Year Ending March 31, 2023
(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
Telephone:+81-6-6228-2877
Scheduled date to file quarterly securities report:
November 10, 2022
Scheduled date to commence dividend payments:
December 9, 2022
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the first six months of the fiscal year ending March 31, 2023 (from
April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

58,1487.8

2,886(15.8)

3,232(11.9)

7,030

195.2

53,943

8.3

3,426

30.9

3,668

33.5

2,381

39.3

First six months
ended September 30,
2022
First six months
ended September 30,
2021
Note: Comprehensive income

First six months ended September 30, 2022
First six months ended September 30, 2021

Basic earnings
per share¥7,481 million¥2,880 million(159.7%)(20.3%)

Diluted earnings
per share

YenFirst six months
ended September 30,
2022
First six months
ended September 30,
2021

Profit attributable toowners of parent

Ordinary profit

Yen

197.17

-

66.87

-

(2) Consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

First six months
ended September 30,
2022

128,284

79,577

58.7

As of March 31, 2022

119,148

72,897

57.6

Reference:

EquityFirst six months ended September 30, 2022
As of March 31, 2022
¥68,664 million¥75,246 million%

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen
As of March 31, 2022

-

22.00

Fiscal year ending
March 31, 2023

-

27.00

Fiscal year ending
March 31, 2023
(Forecast)Fiscal year-end

Total

Yen

Yen

-

22.00

44.00

-

22.00

49.00

Note: Revisions to the forecasts of cash dividends most recently announced: None
Breakdown of dividends at the end of the second quarter for the fiscal year ending March 31, 2023:
Ordinary dividend ¥22.00
70th anniversary of the launch of bond (synthetic adhesive) commemorative dividend ¥5.00

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March
31, 2023)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending March
31, 2023

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basic earnings
per share

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

%

Yen

122,000

7.3

6,950

(4.8)

7,250

(7.3)

9,600

86.9

269.44

Note: Revisions to the consolidated earnings forecasts most recently announced: None
The main reason for the large fluctuation in profit attributable to owners of parent is that extraordinary income of 7,184
million yen was generated during the second quarter of the fiscal year as a gain on sale of non-current assets due to thetransfer of non-current assets.

* Notes(1) Changes in significant subsidiaries during the first six months ended September 30, 2022 (changes in
specified subsidiaries resulting in the change in scope of consolidation): None
Included:
0 companies, excluded 0 companies(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: None(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

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

40,707,440 shares

As of March 31, 2022

40,707,440 shares(ii) Number of treasury shares at the end of the period
As of September 30, 2022

5,028,753 shares

As of March 31, 2022

5,067,401 shares(iii) Average number of shares outstanding during the period
As of September 30, 2022

35,656,632 shares

As of September 30, 2021

35,620,226 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
Caution regarding forward-looking statements and others
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 materiallyfrom the earnings forecasts due to various factors. For the assumptions used as the basis for the earnings forecasts
and special remarks regarding the use of the earnings forecasts, please refer to “1. Qualitative information
regarding financial results for the first three months (3) Explanation of consolidated earnings forecasts and otherforward-looking statements” on page 3 (Attached Material).
Means of access to contents of supplementary material on quarterly financial results and quarterly financial
results briefing
The Company is scheduled to hold a quarterly financial results briefing for analysts and institutional investors
on Tuesday, November 29, 2022. The Company plans to upload the supplementary materials used for thequarterly financial results briefing on this date on the Company website promptly after the briefing has concluded.

Konishi Co., Ltd. (4956)

Index
1.

Qualitative information regarding financial results for the first six 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) Consolidated statement of cash flows .......................................................................................................... 9(4) Notes to quarterly consolidated financial statements ................................................................................. 10
Notes on premise of going concern ................................................................................................................. 10
Notes on significant changes in the amount of shareholders’ equity ............................................................... 10
Segment information ....................................................................................................................................... 10-1-

Konishi Co., Ltd. (4956)
1.

Qualitative information regarding financial results for the first six months(1) Explanation of operating results
During the quarter under review, the global economy was still in a difficult situation due to global inflation,
the impact of monetary tightening policies in various countries, and the steep rise in raw material prices due togeopolitical risks. This took place amid the ongoing normalization of life in order to achieve a balance between
measures against COVID-19 and socioeconomic activities. From April to June this year, the real GDP grew at
an annualized rate of 2.2% compared with the previous quarter. However, the real GDP growth rate showed aslowing trend in August, 0.3% compared with the previous month. Therefore, we need to pay close attention
to developments in China and Europe, where business confidence is low.
In this business environment, the Group saw a recovery in demand in the construction and civil engineering
fields as restrictions on activities were gradually lifted, and sales for repair, improvement, and reinforcement
in both bond and construction segments performed well. On the other hand, due to the rapid depreciation of
the yen and the impact of the situation in Ukraine, the cost of raw materials rose sharply, putting pressure on
earnings.
As a result, the Group’s operating results for the first six months under review were as follows. Net sales
increased 7.8% year on year to 58,148 million yen, operating profit fell 15.8% year on year to 2,886 million
yen, ordinary profit was down 11.9% year on year to 3,232 million yen, and profit attributable to owners ofparent increased 195.2% year on year to 7,030 million yen due to the recording of gain on sale of non-current
assets as described in the “Notice Concerning Transfer of Non-current Assets and Recording of Extraordinary
Income” announced on August 24, 2021.
Results by segment are as follows.
(i) Bond
In the general household field, sales through home improvement stores and convenience stores were steadyand on a par with those in the same period of the previous fiscal year. In the housing-related field,
construction costs were on an upward trend. The sales volumes of adhesives for interior work and interiorbuilding materials decreased as the recovery of new housing starts was slow. In the industrial material field,
the sales volumes of water-based adhesives used in paper-related applications and elastic adhesives for use
in such applications as automotive and electrical components increased. In the construction field, the sales
volumes of sealing materials for construction repair and construction increased. Additionally, in the civilengineering field, construction methods for surface protection and preventing peeling performed well.
Net sales increased partly due to the correction of product selling prices. However, the prices of raw
materials used in adhesives and sealants rose to unprecedented levels. Despite efforts for cost-saving andcost improvement, and reflecting these in selling prices, operating profits declined.
As a result of the above, net sales increased 8.5% year on year to 33,196 million yen and operating profit
fell 21.0% year on year to 1,778 million yen.
(ii) Chemicals
Both net sales and profits were favorable overall, partly due to the effect of price revisions for purchased
products. In the chemical engineering field, sales of resin raw materials and heat-releasing materials werestrong. Demand for automobile products has recovered despite the demand impact brought by a shortageof semiconductors and a prolonged lockdown in Shanghai, China, caused by the spread of COVID-19, etc.
Sales to the electrical machinery industry were firm as demand recovered due to the resolution of parts
supply shortages. Sales at Maruyasu & Co., Ltd. continued to show the strong performance of products foruse in semiconductor manufacturing and products for use in capacitors.
As a result of the above, net sales grew 8.3% year on year to 16,962 million yen and operating profit
increased 38.9% year on year to 679 million yen.
-2-

Konishi Co., Ltd. (4956)(iii) Construction
In the Construction Business, the orders for repair, improvement, and reinforcement works in theinfrastructure and (housing) stock markets, particularly for public works, were continuously steady. BOND
ENGINEERING made progress as planned. At other related construction companies, profits were sluggish
due to soaring material prices and the absence of large-scale construction projects, etc.
As a result of the above, net sales increased 4.3% year on year to 7,897 million yen and operating profit
fell 28.6% year on year to 453 million yen.
(iv) OtherThe Other segment represents the Real Estate Rental Business, etc. Net sales decreased 5.0% year on year
to 92 million yen and operating loss was 30 million yen (operating profit of 40 million yen in the same
period of the previous year).
(2) Explanation of financial position
Assets, liabilities and net assets
Total assets as of September 30, 2022 increased by 9,135 million yen from the previous fiscal year-end to128,284 million yen.
(i) Assets
Current assets increased by 9,694 million yen from the previous fiscal year-end to 91,960 million yen. Thiswas mainly due to an increase of 8,126 million yen in cash and deposits, and an increase of 2,397 million
yen in electronically recorded monetary claims - operating, despite a decrease of 1,915 million yen in notes
and accounts receivable - trade, and contract assets. Non-current assets fell 558 million yen from theprevious fiscal year-end to 36,323 million yen mainly due to a decrease of 343 million yen in property,
plant and equipment and a drop of 113 million yen in investment securities.
(ii) Liabilities
Current liabilities increased by 2,445 million yen from the previous fiscal year-end to 43,640 million yen
mainly due to an increase of 1,866 million yen in income taxes payable, and an increase of 1,721 million
yen in notes and accounts payable - trade, despite a decrease of 287 million yen in electronically recorded
obligations - operating. Non-current liabilities grew 10 million yen from the previous fiscal year-end to
5,066 million yen, mainly due to an increase of 63 million yen in retirement benefit liability, and an increaseof 63 million yen in other liabilities, despite a decrease of 116 million yen in long-term borrowings.
(iii) Net assets
Net assets grew 6,680 million yen from the previous fiscal year-end to 79,577 million yen mainly due to anincrease of 6,246 million yen in retained earnings.
(iv) Cash flows
Cash and cash equivalents (hereinafter “cash”) rose by 8,126 million yen during the first six months underreview (6,440 million yen increase year on year). This comprised net cash provided by operating activitiesof 3,272 million yen (1,097 million yen decrease year on year), net cash provided by investing activities of
5,745 million yen (a decrease of 1,781 million yen in the same period of the previous year), and net cashused in financing activities of 1,019 million yen (40 million yen increase year on year).
As a result, the balance of cash as of September 30, 2022 amounted to 33,641 million yen.
(a) Cash flows from operating activities
Net cash provided by operating activities was 3,272 million yen (down 1,097 million yen year on year).
This was mainly due to profit before income taxes of 10,411 million yen, an increase in trade payablesof 1,250 million yen, and depreciation of 1,030 million yen, despite gain on sale of property, plant and-3-

Konishi Co., Ltd. (4956)
equipment of 7,184 million yen, income taxes paid of 1,318 million yen, and an increase in inventories
of 1,214 million yen.
(b) Cash flows from investing activities
Net cash provided by investing activities was 5,745 million yen (used 1,781 million yen in the same
period of the previous year). This was mainly due to proceeds from sale of property, plant andequipment of 6,470 million yen, despite purchases of property, plant and equipment of 656 millionyen.
(c) Cash flows from financing activities
Net cash used in financing activities was 1,019 million yen (up 40 million yen year on year). This was
mainly due to dividends paid of 784 million yen, and repayments of long-term borrowings of 145
million yen.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
There are currently no changes to the earnings forecast announced on April 28, 2022.

-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, 2022

As of September 30, 2022

AssetsCurrent assets
Cash and deposits

26,16934,296

Notes and accounts receivable - trade, and contract
assets35,08733,171

Electronically recorded monetary claims-operating

10,637

13,034Merchandise and finished goods

7,280

8,171

Work in process

253

290

Raw materials and supplies

1,305

1,662

Other

1,579

1,384

Allowance for doubtful accounts

(47)

(51)

82,266

91,96025,61825,275811

744

Investment securities

7,628

7,515

Other

2,842

2,806

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets

Allowance for doubtful accounts

(17)

(18)

Total investments and other assets

10,453

10,30336,88236,323

119,148

128,284

Total non-current assets
Total assets-5-

Konishi Co., Ltd. (4956)(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

31,73733,458

Electronically recorded obligations - operating

3,413

3,125

Short-term borrowings

46

51

Current portion of long-term borrowings

104

75

Income taxes payable

1,238

3,104

Provision for bonuses

1,125

1,187

116

56

Other

3,413

2,580

Total current liabilities

41,19543,640Long-term borrowings

256

140

Retirement benefit liability

612

676

Other

4,186

4,249

Total non-current liabilities

5,055

5,066

46,251

48,706

Share capital

4,603

4,603

Capital surplus

4,544

4,557

Retained earnings

61,16467,411

Treasury shares(5,504)(5,462)

Total shareholders’ equity

64,808

71,110

2,383

2,287

0

0

Provision for bonuses for directors (and otherofficers)

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

270

684

Remeasurements of defined benefit plans

1,201

1,163

Total accumulated other comprehensive income

3,856

4,136

Non-controlling interests

4,232

4,330

Total net assets

72,897

79,577

119,148

128,284

Total liabilities and net assets-6-

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)Six months ended September 30,

Six months ended September 30,

2021

2022

Net sales

53,94358,148

Cost of sales

42,731

47,204Gross profit

11,212

10,943

Selling, general and administrative expenses

7,786

8,057

Operating profit

3,426

2,886

Interest income

38Dividend income

112

135

Foreign exchange gains

10

131

Share of profit of entities accounted for using equity
method

7

12

Other

132

94

Total non-operating income

267

382

Interest expenses

5

4

Depreciation

12

12

Compensation expenses

1

9

Other

5

11

Total non-operating expenses

25

37

3,668

3,232

Gain on sale of non-current assets

5

7,184

Other

17

0

Total extraordinary income

22

7,184

Loss on disposal of non-current assets

1

5Loss on valuation of investment securities

11

-

Other

0

0

Total extraordinary losses

125Profit before income taxes

3,677

10,411

Income taxes-current

1,141

3,105

Income taxes-deferred

26

125

Total income taxes

1,168

3,230

Profit

2,509

7,180

127

149

2,381

7,030

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent-7-

Konishi Co., Ltd. (4956)
Consolidated statement of comprehensive income (cumulative)(Millions of yen)Six months ended September 30,

Six months ended September 30,

2021

2022

Profit

2,509

7,180

170

(137)

0

(0)

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

210

444

Remeasurements of defined benefit plans, net of tax

(8)

(37)

Share of other comprehensive income of entities
accounted for using equity method

(1)

31

Total other comprehensive income

371

300

2,880

7,481

Comprehensive income attributable to owners of parent

2,693

7,310

Comprehensive income attributable to non-controllinginterests

187

170

Comprehensive income
Comprehensive income attributable to-8-

Konishi Co., Ltd. (4956)(3) Consolidated statement of cash flows(Millions of yen)Six months ended
September 30, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sale of investment securities
Loss (gain) on disposal of property, plant and equipment
Loss (gain) on sale of property, plant and equipment
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and other officers)
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Decrease (increase) in trade receivables and contract assets
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities
Other

Six months ended
September 30, 2022

3,677
1,057
111
(17)
0
(5)
1
64
(68)
13
25
(116)
5
(7)
2,597
(268)
(1,004)
(364)
(59)
298

10,4111,030
64
0
2(7,184)
1
60
(60)
(23)
47
(144)
4
(12)
(266)
(1,214)
1,250
70
8
404

5,943
114
(5)
(1,683)

4,450
144
(4)
(1,318)

4,369

3,272

(510)
10
(1,912)
724
(99)
(35)
44
8
(11)

(510)
510
(656)
6,470
(37)
(38)
0
6

(1,781)

5,745

(4)
20
(134)
(12)
(0)
(780)
(66)
-

(6)
(145)
(11)
(0)
(784)
(72)
0

Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents

(978)
75

(1,019)128

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

1,685
23,721

8,126
25,514

Cash and cash equivalents at end of period

25,40733,641

SubtotalInterest and dividends received
Interest paid
Income taxes paid
Cash flows from operating activities
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
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from cancellation of insurance funds
Other
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other

-9-

Konishi Co., Ltd. (4956)(4) 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.
Segment information
1.

Disclosure of net sales and profit or loss by reportable segment
Six months ended September 30, 2021
(Millions of yen)
Reportable segments
Bond

Net sales(1) Revenues fromexternal customers(2) Intersegment sales andtransfers
Total
Segment profit

Total

Other
(Note) 1

Total

Amount inconsolidated
Adjustments
statement of(Note) 2
income(Note) 3

7,572 53,846

97

53,943-53,943

226

41

268

(268)

-

7,572 54,073
635 3,376

138
40

54,212
3,416

(268)
9

53,943
3,426

Chemicals Construction

30,60815,665149

77

30,7572,251

15,742489

0Notes: 1. The “Other” category is a business segment not included in reportable segments, and includes the realestate 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.
Six months ended September 30, 2022
(Millions of yen)
Reportable segments
Bond
Net sales(1) Revenues from externalcustomers(2) Intersegment sales andtransfers
Total
Segment profit or loss

Chemicals Construction

Total

Other
(Note) 1

Total

Adjustments(Note) 2

Amount inconsolidated
statement ofincome(Note) 3

33,196

16,962

7,897

58,05592

58,148-58,148

173

183

-

356

41

397

(397)

-

33,36917,145

7,897

58,412

133

58,545(397)

58,148

1,778

679

453

2,912

(30)

2,882

3

2,886

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

Disclosure of impairment loss on non-current assets or goodwill, etc. by reportable segment
Not applicable.

-10-