Fuso Chemical : Announcement of financial results for the fiscal year ended March 31, 2023.

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 March 31, 2023

(Based on Japanese GAAP)

May 11, 2023

Company name:

FUSO CHEMICAL CO., LTD.

Stock exchange listing:

Tokyo

Stock code:

4368

URL https://fusokk.co.jp

Representative:

Representative Director & President

Shinichi Sugita

Executive Officer,

Inquiries:

Division Manager of Administration Division Hiroyuki Ito

TEL [phone]

Scheduled date of ordinary general meeting of shareholders:

June 23, 2023

Scheduled date to file Securities Report:

June 26, 2023

Scheduled date to commence dividend payments:

June 26, 2023

Preparation of supplementary material on financial results:

No

Holding of financial results meeting:

Yes

(for institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 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 March 31, 2023

68,459

22.8

18,930

25.9

19,740

27.3

14,129

29.7

Year ended March 31, 2022

55,760

32.1

15,034

56.1

15,509

59.1

10,890

60.0

Note: Comprehensive income

Year ended March 31, 2023

¥14,328 million

[18.7%]

Year ended March 31, 2022

¥12,070 million

[60.6%]

Diluted earnings per

Profit attributable to

Ordinary profit/total

Operating profit/net

Earnings per share

owners of

share

parent/equity

assets

sales

Yen

Yen

%

%

%

Year ended March 31, 2023

400.90

-

17.4

19.2

27.7

Year ended March 31, 2022

308.08

-

15.4

18.5

27.0

Reference: Share of loss (profit) of entities accounted for using equity method

Year ended March 31, 2023

¥-

million

Year ended March 31, 2022

¥-

million

Operating profit before depreciation and amortization (Consolidated operating profit + depreciation and amortization)

Year ended March 31, 2023

¥23,268

million

[19.4%]

Year ended March 31, 2022

¥19,488

million

[32.9%]

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of March 31, 2023

113,528

87,502

77.1

2,482.80

As of March 31, 2022

92,009

75,303

81.8

2,136.65

Reference: Equity

As of March 31, 2023

¥87,502 million

As of March 31, 2022

¥75,303 million

(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 March 31, 2023

13,925

(13,417)

(2,124)

22,350

Year ended March 31, 2022

10,199

(9,375)

(2,882)

23,460

1

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 March 31, 2022	-	25.00	-	30.00	55.00	1,938	17.9	2.7
Year ended March 31, 2023	-	30.00	-	33.00	63.00	2,220	15.7	2.7
Year ending March 31, 2024	-	33.00	-	33.00	66.00		24.6
(Forecast)

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

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Six months ending

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

33,600

(5.0)

7,100

(25.9)

7,100

(34.0)

4,850

(35.5)

137.61

September 30, 2023

Full year

69,300

1.2

13,800

(27.1)

13,800

(30.1)

9,450

(33.1)

268.13

Reference: Operating profit before depreciation and amortization (Consolidated operating profit + depreciation and amortization)

First half (cumulative)

¥10,150 million [(12.7)%] Full year

¥21,700

million [(6.7)%]

4. Notes

(1) Changes in significant subsidiaries during the year ended March 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:

Yes

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 March 31, 2023

35,511,000 shares

As of March 31, 2022

35,511,000 shares

Number of treasury shares at the end of the period

As of March 31, 2023

267,466 shares

As of March 31, 2022

267,425 shares

Average number of shares during the period

Year ended March 31, 2023

35,243,568 shares

Year ended March 31, 2022

35,348,305 shares

2

Reference: Summary of non-consolidated financial results
1. Non-consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
(1) Non-consolidated operating results								Percentages indicate year-on-year changes
			Net sales		Operating profit	Ordinary profit		Profit
		Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%
Year ended March 31, 2023		57,017		23.5	15,113		23.0	17,578		25.8	13,042	28.3
Year ended March 31, 2022		46,166		30.4	12,288		58.5	13,970		51.5	10,162	50.0
		Earnings per share	Diluted earnings per
						share
			Yen		Yen
Year ended March 31, 2023		370.05		-
Year ended March 31, 2022		287.48		-
(2) Non-consolidated financial position
		Total assets		Net assets		Equity ratio		Net assets per share
			Millions of yen	Millions of yen			%		Yen
As of March 31, 2023			103,084				78,096			75.8	2,215.90
As of March 31, 2022			84,011				67,427			80.3	1,913.17
Reference: Equity	As of March 31, 2023			¥78,096 million
	As of March 31, 2022			¥67,427 million

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Explanation of proper use of financial results forecast, and other special matters

The forward-looking statements, including the financial results forecast shown in this document, are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. As such, they do not constitute guarantees by the Company of future performance. Actual performance and other results may also differ materially due to various factors.

3

Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	24,236,473	23,412,586
Notes and accounts receivable - trade	14,886,764	14,968,781
Securities	123,756	-
Merchandise and finished goods	7,972,496	11,880,482
Work in process	764,836	691,534
Raw materials and supplies	3,240,909	3,468,641
Other	866,980	936,534
Allowance for doubtful accounts	(14,013)	(14,513)
Total current assets	52,078,203	55,344,047
Non-current assets
Property, plant and equipment
Buildings and structures	20,788,477	21,392,690
Accumulated depreciation	(11,137,413)	(11,974,615)
Buildings and structures, net	9,651,063	9,418,074
Machinery, equipment and vehicles	34,369,808	35,741,898
Accumulated depreciation	(27,320,329)	(29,501,284)
Machinery, equipment and vehicles, net	7,049,478	6,240,614
Land	6,902,935	6,913,458
Construction in progress	11,247,687	30,938,084
Other	3,272,118	3,831,573
Accumulated depreciation	(2,832,696)	(3,040,303)
Other, net	439,421	791,270
Total property, plant and equipment	35,290,587	54,301,501
Intangible assets	1,904,627	1,346,426
Investments and other assets
Investment securities	1,030,246	691,304
Long-term prepaid expenses	492,355	366,419
Deferred tax assets	910,570	1,173,700
Retirement benefit asset	121,063	102,262
Other	181,848	203,209
Allowance for doubtful accounts	(0)	(0)
Total investments and other assets	2,736,084	2,536,896
Total non-current assets	39,931,299	58,184,824
Total assets	92,009,502	113,528,872

4

			(Thousands of yen)
		As of March 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	3,039,108	3,294,849
Accounts payable - other	1,883,766	1,983,822
Accounts payable - facilities	4,900,797	13,775,370
Income taxes payable	3,219,784	3,301,849
Provision for bonuses	628,515	690,054
Provision for bonuses for directors (and other officers)	65,600	71,800
Provision for repairs	373,514	356,024
Other	556,315	434,899
Total current liabilities	14,667,402	23,908,669
Non-current liabilities
Deferred tax liabilities	187,187	191,191
Retirement benefit liability	1,555,891	1,624,715
Asset retirement obligations	8,289	27,974
Long-term accounts payable - facilities	182,180	167,408
Other	105,202	106,088
Total non-current liabilities	2,038,751	2,117,377
Total liabilities	16,706,154	26,026,047
Net assets
Shareholders' equity
Share capital	4,334,047	4,334,047
Capital surplus	4,820,722	4,820,722
Retained earnings	64,183,183	76,183,899
Treasury shares	(1,112,561)	(1,112,711)
Total shareholders' equity	72,225,391	84,225,957
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	421,137	188,739
Deferred gains or losses on hedges	25,107	(3,019)
Foreign currency translation adjustment	2,631,711	3,091,146
Total accumulated other comprehensive income	3,077,957	3,276,866
Total net assets	75,303,348	87,502,824
Total liabilities and net assets		92,009,502	113,528,872

5