Arakawa Chemical Industries : DATABOOK2023

DATA BOOK

FY2023 (Year ended March 31,2023)

V-ACTION for sustainability

INDEX
Achievement Transition	1
Management index Transition	2
Segment Information	3
Overseas Sales	5
Management Index	6
Balance Sheets	10
Statements of Income	12	May 11th,2023

Statements of Cash Flows	13

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

100,000

						80,515				79,431	83,000
80,000
	70,572
						20,578				18,030
60,000		19,563
					20,270				19,688
40,000		18,789
						20,024				20,550
		16,243
20,000
						19,642				21,161
		15,977
0
		FY 2021	FY 2022				FY 2023	FY 2024 forecast
				1Q		2Q		3Q		4Q

Millions of yen 5,000

4,000	3,257					3,304
				38(4Q)
3,000
	967					789
2,000							772
	1,319
1,000
	169					1,703
	800
0												571
-1,000														-135(2Q)
													-1,426(3Q)
-2,000
-3,000													-1,917(4Q)	-1,800
-4,000
													-2,907
-5,000
		FY 2021	FY 2022				FY 2023	FY 2024 forecast
					1Q			2Q		3Q		4Q

				Ordinary income
Millions of yen
5,000
4,000	3,652					3,566
						214
3,000		1,067
					780
2,000							742
		1,416												33(2Q)
1,000		299					1,828
0		868											722
-1,000													-1,365(3Q)
-2,000
													-2,078(4Q)	-2,000
-3,000
-4,000
												-2,687
-5,000
	FY 2021	FY 2022				FY 2023	FY 2024 forecast
					1Q			2Q		3Q		4Q

Profit attributable to owners of parent

Millions of yen

4,000

3,000
		2,169					1,502
2,000								383
	430
1,000			1,027					461
	197					1,271
0			513								376
							-614(4Q)				-1,602(2Q)
-1,000
-2,000
															-1,495(3Q)	-1,800
-3,000
-4,000
													-2,220(4Q)
-5,000
-6,000															-4,941
	FY 2021	FY 2022				FY 2023	FY 2024 forecast
						1Q			2Q		3Q		4Q

	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024 forecast
Consolidated
	Millions of	％ Change	Millions of	％ Change	Millions of	％ Change	Millions of	％ Change	Millions of	％ Change
	yen		yen		yen		yen		yen
Net sales*	72,967	△ 8.2	70,572	△ 3.3	80,515	14.1	79,431	△ 1.3	83,000	4.5
Operating income	2,574	△ 27.8	3,257	26.5	3,304	1.4	△ 2,907	－	△ 1,800	－
Ordinary income	2,927	△ 25.9	3,652	24.8	3,566	△ 2.3	△ 2,687	－	△ 2,000	－
Profit attributable to	1,732	△ 55.5	2,169	25.3	1,502	△ 30.7	△ 4,941	－	△ 1,800	－
owners of parent

*As the Accounting Standard for Revenue Recognition is applied from the beginning of the fiscal year ending march 31, 2022, the above net sales of FY2022 and FY2023 is prepared based on such accounting standards.

1

DATA BOOK 2023

Management index Transition

EBITDA		Capital investment

Millions of yen

10,000
8,000
	6,423			6,500
6,000
		3,257			3,304				4,200
4,000
										1,569
2,000
0
-2,000
														-1,800
-4,000										-2,907
		FY 2021		FY 2022			FY 2023	FY 2024 forecast
					EBITDA			Operating income

Millions of yen

20,000 18,559

16,000
12,000
8,000
						6,567									6,000
4,000											4,025 4,477	5,000
				2,980			3,120
0
			FY 2021		FY 2022			FY 2023	FY 2024 forecast
			Capital investment			Depreciation and amortization

	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024 forecast
Consolidated
	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
Capital investment	3,932	955	18,559	14,626	6,567	△ 11,991	4,025	△ 2,541	5,000	974
Depreciation	2,887	16	2,980	93	3,120	139	4,477	1,357	6,000	1,522
R&D expenses	3,041	△ 9	3,247	205	3,100	△ 147	3,024	△ 75	3,500	475
Interest-bearing debt	19,045	4,695	21,789	2,743	26,680	4,891	35,052	8,371	40,000	4,947
EBITDA	5,742	△ 973	6,423	680	6,500	77	1,569	△ 4,931	4,200	2,630

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

Return on equity

4.0%

2.6%

over 7.0％

△3.4%

△8.7%

3.1％	1.9％	△6.2％	△2.2％	over 5.0％
0.7	0.7	0.7	0.7	over 0.9
1.8	1.9	2.1	2.3	1.7～2.0

ROE

profitability

（net income）

×

efficiency

（total assets turnover）

×

soundness

（financial leverage）

FY 2021

FY 2022

FY 2023

FY 2024 forecast

FY 2026（target）

2

DATA BOOK 2023

Segment Information (Consolidated)

Functional Coating Chemicals

Net sales（Millions of yen）

Segment income（Millions of yen）

25,000

20,000

15,000

10,000

5,000

0

15,147	16,226	15,700		17,000
			4,034		3,592
	3,994
			4,066		4,109
	4,151
			3,961		3,879
	3,605
	3,396		4,164		4,119
	FY 2021		FY 2022		FY 2023	FY 2024
							forecast

1Q 2Q 3Q 4Q

1,400	1,114		1,082
1,200
1,000	187		157
800	399		248		500
600			335
		338
400	319		64
		108
200			337
207		220
0
-200				-57(4Q)
	FY 2021		FY 2022	FY 2023	FY 2024
					forecast
	1Q	2Q	3Q	4Q	full-year

Paper Chemicals & Environmental Business

Net sales（Millions of yen）

25,000	20,991	22,500

20,000	17,104			18,652
								5,183
15,000						4,640
	4,637
					5,404
						4,874
10,000		4,596
									5,487
						4,807
5,000		3,939
											4,916
						4,330
0		3,930
		FY 2021		FY 2022				FY 2023	FY 2024
																forecast
				1Q			2Q		3Q			4Q

Segment income（Millions of yen）

1,200			969
1,000
800			110		700
565		240	310
600
			35(4Q)
400	211		321	44(3Q)
200	303
23(2Q)		297	157
	27(1Q)
0			73
	FY 2021		FY 2022	FY 2023	FY 2024
					forecast
	1Q	2Q	3Q	4Q	full-year

Adhesive & Biomass Materials

Net sales（Millions of yen）

40,000
						32,530			29,977		30,000
30,000
	25,804			8,480			6,539
20,000		7,560
		8,223			7,352
		6,690
10,000		7,954			7,525
	5,804
				7,871			8,560
0		5,750
	FY 2021		FY 2022				FY 2023	FY 2024
																forecast
				1Q			2Q		3Q			4Q

Segment income（Millions of yen）

3,000	1,554		206
2,000
453(4Q)
	183(2Q)
1,000	530(3Q)		-42(1Q)
	507(1Q)
0
175(2Q)
-1,000	-120(3Q)	-371(2Q)
-2,000	395(1Q)	-363(4Q)	-1,545(3Q)
-3,000				-1,911(4Q)
-4,000				-3,871	-3,400
-5,000
	FY 2021		FY 2022	FY 2023	FY 2024
					forecast
	1Q	2Q	3Q	4Q	full-year

Fine Chemicals & Electronics

Net sales（Millions of yen）

20,000

15,000																	13,400
12,252			12,826			12,570
10,000		3,318			3,369				2,695
												2,802
						3,028
		3,281
5,000											3,580
					3,220
	2,819
													3,492
						3,207
0		2,833
		FY 2021		FY 2022				FY 2023	FY 2024
																	forecast
				1Q			2Q			3Q			4Q

Segment income（Millions of yen）

800
600	528		552		500
400	196		275	349
200	231		125	150
	56
	2(2Q)
		173	166
0	97
	-22(2Q)	-24(2Q)
-200
	FY 2021		FY 2022	FY 2023	FY 2024
					forecast
	1Q	2Q	3Q	4Q	full-year

3

DATA BOOK 2023

Segment Information (Consolidated)

		FY 2021	FY 2022	FY 2023	FY 2024 forecast
Consolidated
		Miliions of yen	% Change	Miliions of yen	% Change	Miliions of yen	% Change	Miliions of yen	% Change
Functional	Net sales ※1	15,147	△ 2.3	16,226	7.1	15,700	△ 3.2	17,000	8.3
Coating	Segment income	1,114	75.0	1,082	△ 2.9	335	△ 69.0	500	48.9
Chemicals
Segment income/sales	7.4%	6.7%	2.1%	2.9%
Paper	Net sales ※1	17,104	△ 9.6	18,652	9.1	20,991	12.5	22,500	7.2
Chemicals &
Segment income	565	63.1	969	71.4	310	△ 67.9	700	125.2
Environmental
Business	Segment income/sales	3.3%	5.2%	1.5%	3.1%
Adhesive &	Net sales ※1	25,804	△ 2.3	32,530	26.1	29,977	△ 7.8	30,000	0.1
Biomass	Segment income	1,554	12.2	206	△ 86.7	△ 3,871	－	△ 3,400	－
Materials
Segment income/sales	6.0%	0.6%	△12.9%	△11.3%
Fine Chemicals	Net sales ※1	12,252	3.4	12,826	4.7	12,570	△ 2.0	13,400	6.6
&	Segment income	528	36.9	552	4.6	349	△ 36.7	500	42.9
Electronics
Segment income/sales	4.3%	4.3%	2.8%	3.7%
	Net sales ※1	263	△ 5.2	279	6.2	191	△ 31.4	100	△ 47.8
Others
Segment income	26	△ 16.2	45	72.8	42	△ 7.3	30	△ 28.6
	Segment income/sales	10.0%	16.2%	22.0%	30.0%
	Net sales ※1	70,572	△ 3.3	80,515	14.1	79,431	△ 1.3	83,000	4.5
Subtotal
Segment income	3,789	36.0	2,855	△ 24.6	△ 2,832	－	△ 1,670	－
	Segment income/sales	5.4%	3.5%	△3.6%	△2.0%
	Development Investment ※2	△ 377	－	△ 437	－	△ 406	－	△ 450	－
Consolidated
Segment income	3,411	36.9	2,418	△ 29.1	△ 3,239	－	△ 2,120	－
total
	Segment income/sales	4.8%	3.0%	△4.1%	△2.6%

※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]

[Paper chemicals & Environmental Business]

[Adhesive & Biomass Materials]

[Fine Chemicals & Electronics]

[Others]

UV/EB curable resin,Resins for paint and printing ink,etc.

Paper strengthening agent,Sizing agent,New water-based polymer,etc.

Hydrogenated hydrocarbon resin,Adhesive resin,Colorless rosin derivative,Synthetic rubber polymerization emulsifier,etc.

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. Insurance business, Real estate management, etc.

4