Arakawa Chemical Industries : DATABOOK2023(2nd Quarter ended)

DATA BOOK

FY2023 (2nd Quarter ended September 30,2022)

V-ACTION for sustainability

INDEX
Performance	1
Segment Information	2
Overseas Sales	4
Balance Sheets	5
Statements of Income	7
Statements of Cash Flows	8	November 2nd,2022

Note: This document has been translated from a part of 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. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

DATA BOOK 2023

Performance (Consolidated)

						Net	sales												Operating income
Millions of yen														Millions of yen
100,000																			5,000
						80,515					83,000				4,000
80,000																			3,257						3,304
70,572				20,578										3,000					38
																						789
		19,563															967
60,000																		2,000									772
						20,270				41,712								1,319
														1,000
		18,789
40,000																					169						1,703				436
						20,024				20,550						0		800													571
20,000		16,243																	-1,000																	-135(2Q)
					19,642				21,161
		15,977
0																			-2,000
																																	-1,800
		FY 2021		FY 2022	FY 2023	FY 2023 forecast					FY 2021					FY 2022			FY 2023	FY 2023 forecast
				1Q			2Q		3Q		4Q													1Q			2Q			3Q		4Q

				Ordinary income						Profit attributable to owners of parent
Millions of yen														Millions of yen
5,000																				5,000
4,000	3,652					3,566											4,000
							214											3,000
3,000		1,067					780											2,000		2,169					1,502
																	430
																										383
							742
2,000																				1,027					461
		1,416																		1,000
												756									197					1,271
1,000																	0			513										376
	299					1,828					33(2Q)										-614(4Q)
0		868										722						-1,000													-1,602(2Q)
																				-2,000
																															-1,225
-1,000
																			-3,000
-2,000																				-4,000															-3,500
															-1,600
		FY 2021	FY 2022				FY 2023	FY 2023						FY 2021	FY 2022			FY 2023	FY 2023 forecast
					1Q			2Q		3Q			4Q											1Q			2Q		3Q		4Q

	FY 2021 (2Q)	FY 2022 (2Q)	FY 2023 (2Q)	FY 2021	FY 2022	FY 2023 forecast
Consolidated
	Millions of	％ Change	Millions of	％ Change	Millions of	％ Change	Millions of	％ Change	Millions of	％ Change	Millions of	％ Change
	yen		yen		yen		yen		yen		yen
Net sales	32,220	△ 11.9	39,667	23.1	41,712	5.2	70,572	△ 3.3	80,515	14.1	83,000	3.1
Operating income	969	5.3	2,475	155.3	436	△ 82.4	3,257	26.5	3,304	1.4	△ 1,800	－
Ordinary income	1,167	2.2	2,571	120.3	756	△ 70.6	3,652	24.8	3,566	△ 2.3	△ 1,600	－
Profit attributable to	710	56.4	1,733	143.9	△ 1,225	－	2,169	25.3	1,502	△ 30.7	△ 3,500	－
owners of parent

Capital expenditure, etc.

	FY 2021 (2Q)	FY 2022 (2Q)	FY 2023 (2Q)	FY 2021	FY 2022	FY 2023 forecast
Consolidated
Millions of	Increase	Millions of	Increase	Millions of	Increase	Millions of	Increase	Millions of	Increase	Millions of	Increase
	yen	/Decrease	yen	/Decrease	yen	/Decrease	yen	/Decrease	yen	/Decrease	yen	/Decrease
Capital investment	929	△ 489	1,416	486	1,682	266	18,559	14,626	6,567	△ 11,991	6,560	△ 7
Depreciation	1,441	118	1,385	△ 55	1,698	313	2,980	93	3,120	139	4,760	1,639
R&D expenses	1,569	49	1,511	△ 57	1,503	△ 7	3,247	205	3,100	△ 147	3,480	379
Interest-bearing debt	21,704	5,936	22,346	642	31,169	8,823	21,789	2,743	26,680	4,891	35,500	8,819
EBITDA	2,519	134	3,938	1,418	2,135	△ 1,802	6,423	680	6,500	77	2,960	△ 3,540

[ EBITDA ] Operating profit before amortization = Operating profit + Depreciation expense + Amortization of goodwill

1

DATA BOOK 2023

Segment Information (Consolidated)

Functional Coating Chemicals

Net sales（Millions of yen）

25,000
20,000
15,147	16,226				16,500
15,000
		3,994		4,034
10,000				4,066	7,998
	4,151
				3,961		3,879
5,000		3,605
				4,164
0		3,396			4,119
		FY 2021		FY 2022		FY 2023	FY 2023
								forecast

1Q 2Q 3Q 4Q

Segment income（Millions of yen）

2,000
1,500
	1,114		1,082
1,000	187		157
	399		248		700
500	319		338	329
			337	108
0	207		220
	FY 2021		FY 2022	FY 2023	FY 2023
					forecast
	1Q	2Q	3Q	4Q	full-year

Paper Chemicals & Environmental Business

Net sales（Millions of yen）

Segment income（Millions of yen）

25,000	21,000

20,000	17,104	18,652
15,000				4,640
	4,637	10,403
				4,874
10,000		4,596
				4,807		5,487
5,000		3,939
					4,916
				4,330
0		3,930
	FY 2021		FY 2022		FY 2023	FY 2023

forecast

1Q 2Q 3Q 4Q

1,200
				969
900				110
	565		240
600				550
	211		321
300	303			230
		297	157
	23
	27		73
0
	FY 2021		FY 2022	FY 2023	FY 2023
						forecast
	1Q		2Q	3Q	4Q	full-year

Adhesive & Biomass Materials

Net sales（Millions of yen）

Segment income（Millions of yen）

40,000		32,530				2,000	1,554
				31,800
				1,000	453		206
						530
30,000	25,804								183
8,480				0	175		507	-42(1Q)
					395
	7,560							-120(3Q)	-371(2Q)
20,000	8,223				-1,000		-414
		16,086			-363(4Q)
	6,690
	7,954		7,525		-2,000
10,000
5,804
				-3,000
		7,871		8,560
	5,750
0					-4,000						-3,700
	FY 2021	FY 2022		FY 2023	FY 2023		FY 2021		FY 2022	FY 2023	FY 2023
					forecast							forecast
	1Q	2Q	3Q	4Q			1Q	2Q		3Q	4Q	full-year

Fine Chemicals & Electronics

Net sales（Millions of yen）

20,000

15,000	12,252			12,826							13,500
10,000		3,318				3,369
											7,072
						3,028
		3,281
5,000						3,220			3,580
	2,819
												3,492
						3,207
0		2,833
		FY 2021		FY 2022				FY 2023	FY 2023
					1Q			2Q		3Q			4Q	forecast

Segment income（Millions of yen）

800

	528		552		650
600
					275
400		196
							223
200		231			125
	2			56
0		97		173		166
				-22(2Q)
-200
		FY 2021		FY 2022	FY 2023 FY 2023 forecast

1Q 2Q 3Q 4Q full-year

2

DATA BOOK 2023

Segment Information (Consolidated)

		FY 2021 (2Q)	FY 2022 (2Q)	FY 2023 (2Q)	FY 2021	FY 2022	FY 2023 forecast
Consolidated
		Miliions of	% Change	Miliions of	% Change	Miliions of	% Change	Miliions of	% Change	Miliions of	% Change	Miliions of	% Change
		yen	yen	yen	yen	yen	yen
Functional	Net sales ※1	7,001	△ 8.0	8,126		16.1	7,998	△ 1.6	15,147	△ 2.3	16,226	7.1	16,500	1.7
Coating	Segment income	527	101.0	676		28.2	329	△ 51.3	1,114	75.0	1,082	△ 2.9	700	△ 35.3
Chemicals
Segment	7.5%	8.3%		4.1%	7.4%	6.7%	4.2%
	income/sales
Paper	Net sales ※1	7,870	△ 19.0	9,137		16.1	10,403	13.9	17,104	△ 9.6	18,652	9.1	21,000	12.6
Chemicals &
Segment income	50	△ 73.8	618		－	230	△ 62.7	565	63.1	969	71.4	550	△ 43.3
Environmental
Business	Segment	0.6%	6.8%		2.2%	3.3%	5.2%	2.6%
income/sales
Adhesive &	Net sales ※1	11,554	△ 13.4	15,825		37.0	16,086	1.6	25,804	△ 2.3	32,530	26.1	31,800	△ 2.2
Biomass	Segment income	570	△ 20.4	690		21.1	△ 414	－	1,554	12.2	206	△ 86.7	△ 3,700	－
Materials
Segment	4.9%	4.4%		△2.6%	6.0%	0.6%	△11.6%
	income/sales
Fine Chemicals	Net sales ※1	5,652	△ 1.4	6,428		13.7	7,072	10.0	12,252	3.4	12,826	4.7	13,500	5.3
&	Segment income	100	△ 48.5	151		51.2	223	47.7	528	36.9	552	4.6	650	17.7
Electronics
Segment	1.8%	2.4%		3.2%	4.3%	4.3%	4.8%
	income/sales
	Net sales ※1	141	△ 9.2	149		5.4	151	1.4	263	△ 5.2	279	6.2	200	△ 28.4
Others
Segment income	11	△ 29.0	23		99.6	18	△ 21.2	26	△ 16.2	45	72.8	40	△ 11.8
	Segment	8.4%	15.9%		12.3%	10.0%	16.2%	20.0%
	income/sales
	Net sales ※1	32,220	△ 11.9	39,667		23.1	41,712	5.2	70,572	△ 3.3	80,515	14.1	83,000	3.1
Subtotal
Segment income	1,260	△ 8.9	2,160		71.4	388	△ 82.0	3,789	36.0	2,855	△ 24.6	△ 1,760	－
	Segment	3.9%	5.4%		0.9%	5.4%	3.5%	△2.1%
	income/sales
	Development	△ 188	－	△ 216		－	△ 198	－	△ 377	－	△ 437	－	△ 410	－
	Investment ※2
Consolidated	Segment income	1,071	△ 13.3	1,943		81.3	189	△ 90.2	3,411	36.9	2,418	△ 29.1	△ 2,170	－
total
	Segment	3.3%	4.9%		0.5%	4.8%	3.0%	△2.6%
	income/sales

※1 The sales of business segmentation do not include intersegment sales.

The Accounting Standard for Revenue Recognition is applied from the beginning of the fiscal year ending march 31, 2022. ※2 Applied research and development expense that will be the source of growth in the medium to long term.

[Functional Coating Chemicals] UV/EB curable resin,Resins for paint and printing ink,etc.

[Paper chemicals & Environmental Business] Paper strengthening agent,Sizing agent,New water-based polymer,etc.

[Adhesive & Biomass Materials] Hydrogenated hydrocarbon resin,Adhesive resin,Colorless rosin derivative,Synthetic rubber polymerization emulsifier,etc.

[Fine Chemicals & Electronics] Precise parts cleaning agent and Cleaning system and its peripheral equipment,Thermoplastic Polyimide Solution,Fine chemical Products,Compounded Products for electronic material,Polishing agent for hard disk substrates,etc.

[Others] Insurance business, Real estate management, etc.

3

DATA BOOK 2023

Overseas Sales (Consolidated)

Overseas Sales (Consolidated)

Millions of yen	%	Millions of yen	%
25,000		South and North America, Europe, Others	50.0	50,000		50.0

	Asia (Excluding China)	Overseas sales ratio			44.5
	China				43.0
			43.7
20,000	37.9		43.2	40.0	40,000	39.5		40.0
				18,219			35,849	35,700
			17,154
			3,511	3,639			6,884	6,500
15,000			30.0	30,000	27,905		30.0
	12,215					5,117
	2,671		6,022	7,020			12,695	14,200
10,000			20.0	20,000			20.0
						9,175
	3,905
5,000				10.0	10,000			10.0
			7,620	7,559		13,613	16,269	15,000
	5,637
0				0.0	0			0.0
	FY 2021 (2Q)	FY 2022 (2Q)	FY 2023 (2Q)		FY 2021	FY 2022	FY 2023 forecast

	FY 2021 (2Q)	FY 2022 (2Q)	FY 2023 (2Q)	FY 2021		FY 2022		FY 2023 forecast
Consolidated
	Millions of	% Change	Millions of	% Change	Millions of	% Change	Millions of	% Change	Millions of	% Change	Millions of	% Change
	yen	yen	yen	yen	yen	yen
Overseas sales	12,215	△ 9.7	17,154	40.4	18,219	6.2	27,905		3.3	35,849		28.5	35,700	△ 0.4
Overseas sales in Asia	9,543	△ 9.5	13,643	43.0	14,579	6.9	22,788		5.1	28,965		27.1	29,200	0.8
Overseas sales in	5,637	△ 7.2	7,620	35.2	7,559	△ 0.8	13,613		8.7	16,269		19.5	15,000	△ 7.8
China
Overseas sales ratio	37.9%	43.2%	43.7%	39.5%		44.5%		43.0%

Overseas sales by region (Consolidated)

Millions of yen
5,000
	China
4,000	Asia (Excluding China)
South and North America, Europe, Others
3,000
2,000
1,000
0
	4