Daito Pharmaceutical : Summary of Consolidated Financial Results for the Year Ended May 31, 2023 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended May 31, 2023

(Based on Japanese GAAP)

																					July 14, 2023
Company name:	Daito Pharmaceutical Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	4577	URL https://www.daitonet.co.jp/
Representative:	President and CEO			Yasunobu Otsuga
Inquiries:	Executive Corporate Officer, Head of	Masuo Nomura	TEL [phone]
Administrative Division
Scheduled date of ordinary general meeting of shareholders:	August 29, 2023
Scheduled date to file Securities Report:			August 30, 2023
Scheduled date to commence dividend payments:			August 7, 2023
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:							Yes	(for analysts and institutional investors)
												(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended May 31, 2023 (from June 1, 2022 to May 31, 2023)
(1) Consolidated operating results													Percentages indicate year-on-year changes
			Net sales			Operating profit	Ordinary profit	Profit attributable to
					owners of parent
			Millions of yen		%	Millions of yen		%	Millions of yen	%		Millions of yen		%
Year ended May 31, 2023		45,101		3.8	5,207		(20.5)		5,169	(23.2)	3,600		(22.9)
Year ended May 31, 2022		43,464			-	6,553		10.9		6,729	10.9		4,668		9.9
			Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
					share			owners of				assets			sales
										parent/equity
				Yen			Yen				%						%				%
Year ended May 31, 2023		250.39		250.17				7.3						7.6				11.5
Year ended May 31, 2022		335.41			-				10.5						11.0				15.1
(2) Consolidated financial position
			Total assets			Net assets		Equity ratio	Net assets per share
			Millions of yen	Millions of yen					%						Yen
As of May 31, 2023			70,552					50,971					71.8				3,527.15
As of May 31, 2022			64,939					47,674					72.8				3,310.34
(3) Consolidated cash flows
			Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended May 31, 2023					4,155					(5,566)					616						3,607
Year ended May 31, 2022					4,370					(4,400)					989						4,381
2. Cash dividends
							Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
																	to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen			Yen	Yen				Yen	Yen	Millions of yen		%			%
Year ended May 31, 2022		-		25.00	-				35.00	60.00		845		17.9			1.9
Year ended May 31, 2023		-		30.00	-				30.00	60.00		861		24.0			1.8
Year ending May 31, 2024		-			30.00	-				30.00	60.00				26.1
(Forecast)

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3. Forecast of consolidated financial results for the year ending May 31, 2024 (from June 1, 2023 to May 31, 2024)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit			Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%	Yen
Full year	47,500	5.3	4,800	(7.8)	4,800		(7.1)		3,300	(8.3)	229.70
4. Notes
(1) Changes in significant subsidiaries during the year ended May 31, 2023			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:						No
Changes in accounting estimates:								No
Restatement of prior period financial statements:						No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of May 31, 2023	14,416,764	shares	As of May 31, 2022	14,293,764	shares
Number of treasury shares at the end of the period
	As of May 31, 2023	50,377	shares	As of May 31, 2022	5,607	shares
Average number of shares during the period
	Year ended May 31, 2023	14,377,708	shares	Year ended May 31, 2022	13,918,026	shares

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Consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of May 31, 2022	As of May 31, 2023
Assets
Current assets
Cash and deposits	4,381	3,607
Notes receivable - trade	1,060	983
Accounts receivable - trade	9,525	9,687
Electronically recorded monetary claims - operating	5,525	6,974
Merchandise and finished goods	4,875	5,626
Work in process	5,459	5,577
Raw materials and supplies	6,486	7,035
Factoring credit	42	12
Other	557	1,160
Allowance for doubtful accounts	(6)	(2)
Total current assets	37,909	40,663
Non-current assets
Property, plant and equipment
Buildings and structures, net	12,145	11,727
Machinery, equipment and vehicles, net	7,715	6,352
Land	2,033	2,049
Leased assets, net	-	75
Construction in progress	423	4,618
Other, net	798	1,013
Total property, plant and equipment	23,116	25,837
Intangible assets
Other	386	377
Total intangible assets	386	377
Investments and other assets
Investment securities	2,752	2,964
Deferred tax assets	570	504
Other	215	215
Allowance for doubtful accounts	(10)	(10)
Total investments and other assets	3,528	3,673
Total non-current assets	27,030	29,888
Total assets	64,939	70,552

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		(Millions of yen)
	As of May 31, 2022	As of May 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	4,493	4,435
Electronically recorded obligations - operating	3,371	3,737
Current portion of long-term borrowings	1,189	1,429
Lease liabilities	-	15
Income taxes payable	1,402	559
Provision for bonuses	51	54
Accounts payable - other	1,917	3,729
Accrued expenses	1,119	1,037
Notes payable - facilities	11	69
Other	512	359
Total current liabilities	14,069	15,428
Non-current liabilities
Long-term borrowings	2,247	3,368
Lease liabilities	-	77
Deferred tax liabilities	32	31
Provision for share awards for directors (and other	-	10
officers)
Retirement benefit liability	755	497
Other	160	165
Total non-current liabilities	3,196	4,151
Total liabilities	17,265	19,580
Net assets
Shareholders' equity
Share capital	7,031	7,186
Capital surplus	6,917	7,072
Retained earnings	32,338	35,006
Treasury shares	(13)	(124)
Total shareholders' equity	46,273	49,140
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	877	1,159
Foreign currency translation adjustment	306	324
Remeasurements of defined benefit plans	(159)	48
Total accumulated other comprehensive income	1,024	1,532
Share acquisition rights	7	-
Non-controlling interests	367	299
Total net assets	47,674	50,971
Total liabilities and net assets	64,939	70,552

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	May 31, 2022	May 31, 2023
Net sales	43,464	45,101
Cost of sales	32,005	34,770
Gross profit	11,458	10,331
Selling, general and administrative expenses	4,905	5,123
Operating profit	6,553	5,207
Non-operating income
Interest income	0	0
Dividend income	55	57
Rental income	14	14
Foreign exchange gains	22	-
Insurance claim income	57	-
Reversal of allowance for doubtful accounts	14	4
Other	40	8
Total non-operating income	205	86
Non-operating expenses
Interest expenses	9	12
Commission expenses	11	10
Foreign exchange losses	-	91
Other	8	9
Total non-operating expenses	29	124
Ordinary profit	6,729	5,169
Extraordinary income
Subsidy income	23	12
Gain on sale of investment securities	246	-
Total extraordinary income	269	12
Extraordinary losses
Loss on retirement of non-current assets	33	17
Loss on tax purpose reduction entry of non-current assets	23	-
Loss on valuation of investment securities	199	20
Loss on sale of investment securities	-	67
Loss on fire	22	-
Total extraordinary losses	278	105
Profit before income taxes	6,720	5,076
Income taxes - current	2,213	1,595
Income taxes - deferred	(120)	(46)
Total income taxes	2,092	1,549
Profit	4,627	3,527
Loss attributable to non-controlling interests	(40)	(72)
Profit attributable to owners of parent	4,668	3,600

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