Arakawa Chemical Industries : DATABOOK2024(1st Quarter ended)

DATA BOOK

FY2024 (1st Quarter ended June 30,2023)

V-ACTION for sustainability

INDEX

Achievement Transition	1
Segment Information	2
Overseas Sales	4
Balance Sheets	5
Statements of Income	7	August 3rd,2023

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 2024

Performance (Consolidated)

Net sales		Operating income

Millions of yen

100,000
	80,515				79,431					83,000
80,000
		20,578				18,030
60,000
		20,270				19,688
40,000
	20,024				20,550
20,000
	19,642				21,161
								17,298
0
		FY 2022		FY 2023				FY 2024	FY 2024 forecast
				1Q			2Q		3Q		4Q

Millions of yen 5,000

4,000	3,304
		38
3,000
		789
2,000		772
1,000
	1,703
0					571
-1,000					-135(2Q)		-834
				-1,426(3Q)
-2,000
				-1,917(4Q)			-1,800
-3,000
-4,000
-5,000					-2,907
		FY 2022	FY 2023	FY 2024	FY 2024 forecast

1Q 2Q 3Q 4Q

Ordinary income

Millions of yen

5,000

4,000	3,566
	214
3,000
	780
2,000		742
1,000
	1,828		33
0	722
-1,000				-1,365(3Q)		-670
-2,000
			-2,078(4Q)			-2,000
-3,000
-4,000
			-2,687
-5,000
		FY 2022		FY 2023	FY 2024	FY 2024 forecast

1Q 2Q 3Q 4Q

Profit attributable to owners of parent

Millions of yen

4,000
3,000	1,502
2,000
		383
1,000		461
0		1,271		376
		-614(4Q)
-1,000				-1,602(2Q)	-314
-2,000
			-1,495(3Q)			-1,800
-3,000
-4,000
			-2,220(4Q)
-5,000
-6,000				-4,941
		FY 2022	FY 2023		FY 2024	FY 2024 forecast

1Q 2Q 3Q 4Q

FY 2022 (1Q)

FY 2023 (1Q)

FY 2024 (1Q)

FY 2022

FY 2023

FY 2024 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

19,642

22.9

21,161

7.7

17,298

△ 18.3

80,515

14.1

79,431

△ 1.3

83,000

4.5

Operating income

1,703

112.7

571

△ 66.4

△ 834

－

3,304

1.4

△ 2,907

－

△ 1,800

－

Ordinary income

1,828

110.6

722

△ 60.5

△ 670

－

3,566

△ 2.3

△ 2,687

－

△ 2,000

－

Profit attributable to

1,271

147.9

376

△ 70.4

△ 314

－

1,502

△ 30.7

△ 4,941

－

△ 1,800

－

owners of parent

Capital expenditure, etc.

	FY 2022 (1Q)	FY 2023 (1Q)	FY 2024 (1Q)	FY 2022	FY 2023	FY 2024 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 expenditure	580	275	936	355	497	△ 439	6,567	△ 11,991	4,025	△ 2,541	5,000	974
Depreciation	679	△ 24	815	135	1,370	555	3,120	139	4,477	1,357	6,000	1,522
R&D expenses	730	△ 60	751	20	731	△ 20	3,100	△ 147	3,024	△ 75	3,500	475
Interest-bearing debt	22,170	453	29,402	7,231	36,846	7,443	26,680	4,891	35,052	8,371	40,000	4,947
EBITDA	2,421	845	1,387	△ 1,033	536	△ 851	6,500	77	1,569	△ 4,931	4,200	2,630

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

1

DATA BOOK 2024

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

17,000

16,226	15,700
	4,034		3,592
	4,066		4,109
	3,961		3,879
	4,164		4,119
			3,536
	FY 2022		FY 2023		FY 2024	FY 2024
							forecast

1Q 2Q 3Q 4Q

1,400	1,082
1,200
1,000	157
800	248		335		500
600
338
400		64
200	337		108
	220	33
0
		-57(4Q)
-200
	FY 2022		FY 2023	FY 2024	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	18,652
15,000		4,640			5,183
					5,404
10,000		4,874
					5,487
5,000		4,807
						4,916			4,708
0		4,330
	FY 2022		FY 2023				FY 2024	FY 2024
																forecast
				1Q			2Q		3Q			4Q

Segment income（Millions of yen）

1,200
	969
900	110				700
	240
600		310
	321
300	297	44	35
	157	89
0		73
	FY 2022	FY 2023	FY 2024	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
		8,480			6,539
20,000		8,223			7,352
10,000		7,954			7,525
		7,871			8,560
0						6,223
	FY 2022	FY 2023				FY 2024	FY 2024
															forecast
				1Q		2Q		3Q			4Q

Segment income（Millions of yen）

3,000
2,000
	206
1,000
		507 183		-42(1Q)
0
					-371(2Q)			-944
-1,000		-120(3Q)
-2,000	-363(4Q)	-1,545(3Q)
-3,000					-1,911(4Q)
-4,000
-5,000				-3,871					-3,400
		FY 2022		FY 2023	FY 2024	FY 2024
										forecast

1Q 2Q 3Q 4Q full-year

Fine Chemicals & Electronics

Net sales（Millions of yen）

Segment income（Millions of yen）

20,000						800
					13,400	600
15,000
12,826	12,570
				400
	3,369	2,695
10,000
	2,802
	3,028				200
5,000	3,220	3,580				0
0	3,207	3,492		2,812		-200
	FY 2022	FY 2023		FY 2024	FY 2024
					forecast
	1Q	2Q	3Q	4Q

552		500
275	349
125	150
56
173	166
-22(2Q)	-24(4Q)	-98

FY 2022

FY 2023

FY 2024

FY 2024

forecast

1Q 2Q 3Q 4Q full-year

2

													DATA BOOK 2024
Segment Information (Consolidated)
		FY 2022 (1Q)	FY 2023 (1Q)	FY 2024 (1Q)	FY 2022	FY 2023	FY 2024 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	4,164		22.6	4,119	△ 1.1	3,536	△ 14.2	16,226	7.1	15,700	△ 3.2	17,000	8.3
Coating	Segment income	337		62.4	220	△ 34.6	33	△ 84.7	1,082	△ 2.9	335	△ 69.0	500	48.9
Chemicals
Segment	8.1%		5.4%	1.0%	6.7%	2.1%	2.9%
	income/sales
Paper	Net sales ※1	4,330		10.2	4,916	13.5	4,708	△ 4.2	18,652	9.1	20,991	12.5	22,500	7.2
Chemicals &
Segment income	297		974.9	73	△ 75.2	89	21.0	969	71.4	310	△ 67.9	700	125.2
Environmental
Business	Segment	6.9%		1.5%	1.9%	5.2%	1.5%	3.1%
income/sales
Adhesive &	Net sales ※1	7,871		36.9	8,560	8.8	6,223	△ 27.3	32,530	26.1	29,977	△ 7.8	30,000	0.1
Biomass	Segment income	507		28.4	△ 42	－	△ 944	－	206	△ 86.7	△ 3,871	－	△ 3,400	－
Materials
Segment	6.4%		△0.5%	△15.2%	0.6%	△12.9%	△11.3%
	income/sales
Fine	Net sales ※1	3,207		13.2	3,492	8.9	2,812	△ 19.5	12,826	4.7	12,570	△ 2.0	13,400	6.6
Chemicals &	Segment income	173		78.1	166	△ 3.9	△ 98	－	552	4.6	349	△ 36.7	500	42.9
Electronics
Segment	5.4%		4.8%	△3.5%	4.3%	2.8%	3.7%
	income/sales
	Net sales ※1	67		1.9	72	7.0	17	△ 76.1	279	6.2	191	△ 31.4	100	△ 47.8
Others
Segment income	9		58.7	9	△ 4.9	7	△ 22.1	45	72.8	42	△ 7.3	30	△ 28.6
	Segment	14.1%		12.6%	40.9%	16.2%	22.0%	30.0%
	income/sales
	Net sales ※1	19,642		22.9	21,161	7.7	17,298	△ 18.3	80,515	14.1	79,431	△ 1.3	83,000	4.5
Subtotal
Segment income	1,325		80.5	427	△ 67.7	△ 913	－	2,855	△ 24.6	△ 2,832	－	△ 1,670	－
	Segment	6.7%		2.0%	△5.3%	3.5%	△3.6%	△2.0%
	income/sales
	Development	△ 104		－	△ 102	－	△ 96	－	△ 437	－	△ 406	－	△ 450	－
	Investment ※2
Consolidated	Segment income	1,220		90.5	324	△ 73.4	△ 1,009	－	2,418	△ 29.1	△ 3,239	－	△ 2,120	－
total
	Segment	6.2%		1.5%	△5.8%	3.0%	△4.1%	△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 2024
Overseas Sales (Consolidated)
			Overseas	Sales (Consolidated)
Millions of yen			%	Millions of yen			%
25,000	Overseas sales ratio		50.0	50,000			50.0
					44.5	43.9
		44.9	40.8				41.4
	43.4
20,000			40.0	40,000			40.0
					35,849	34,849	34,400
	South and North America, Europe, Others		6,884	6,530	5,400
15,000	30.0	30,000	30.0
Asia (Excluding China)
	China
10,000		9,504		20.0	12,695	12,928	13,500
8,524		20,000			20.0
	1,662	1,936	7,049
		3,597	1,262
5,000	2,888		10.0	10,000			10.0
	2,712
				16,269	15,389	15,500
	3,973	3,970	3,074
0				0.0	0			0.0
	FY 2022 (1Q)	FY 2023 (1Q)	FY 2024 (1Q)		FY 2022	FY 2023 FY 2024 forecast

	FY 2022 (1Q)	FY 2023 (1Q)	FY 2024 (1Q)	FY 2022		FY 2023		FY 2024 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	8,524	44.1	9,504	11.5	7,049	△ 25.8	35,849		28.5	34,849		△ 2.8	34,400	△ 1.3
Overseas sales in Asia	6,862	50.1	7,567	10.3	5,787	△ 23.5	28,965		27.1	28,318		△ 2.2	29,000	2.4
Overseas sales in	3,973	52.2	3,970	△ 0.1	3,074	△ 22.6	16,269		19.5	15,389		△ 5.4	15,500	0.7
China
Overseas sales ratio	43.4%	44.9%	40.8%	44.5%		43.9%		41.4%

Overseas sales by region (Consolidated)

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