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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 December 31, 2022
(Based on Japanese GAAP)
February 10, 2023
Company name: Nicca Chemical Co., Ltd.
Stock exchange listing: Tokyo, Nagoya
Stock code: 4463 URL https://www.nicca.co.jp
Representative: President and Representative EMORI Yasumasa
Inquiries: Director, Member of the Board
General manager of Administration Division SAWASAKI Shoya TEL 0776-24-0213
Scheduled date of ordinary general meeting of shareholders: March 28, 2023
Scheduled date to file Securities Report: March 29, 2023
Scheduled date to commence dividend payments: March 29, 2023
Preparation of supplementary material on financial results: Yes
Holding of financial results meeting: Yes (for the press)
(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)
(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 December 31, 2022 50,627 – 2,628 – 3,132 – 2,114 –
Year ended December 31, 2021 48,474 17.7 2,453 73.2 2,706 64.5 2,595 148.5
Earnings per share Diluted earnings per
share
Profit attributable to
owners of
parent/equity
Ordinary profit/total
assets
Operating profit/net
sales
Yen Yen % % %
Year ended December 31, 2022 134.08 – 8.0 5.7 5.2
Year ended December 31, 2021 164.82 – 11.3 5.0 5.1
(2) Consolidated financial position
Total assets Net assets Equity ratio Net assets per share
Millions of yen Millions of yen % Yen
As of December 31, 2022 56,122 30,392 49.8 1,771.74
As of December 31, 2021 54,533 27,323 45.9 1,589.37
(3) Consolidated cash flows
Cash flows from
operating activities
Cash flows from
investing activities
Cash flows from
financing activities
Cash and cash equivalents
at end of period
Millions of yen Millions of yen Millions of yen Millions of yen
Year ended December 31, 2022 2,317 (885) (1,962) 6,263
Year ended December 31, 2021 4,722 (994) (5,024) 6,373
2. Cash dividends
Annual dividends per share Total cash
dividends (Total) Dividend payout
ratio (Consolidated)
Ratio of dividends
to net assets
(Consolidated) 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total
Yen Yen Yen Yen Yen Millions of yen % %
Year ended December 31, 2021 – 8.00 – 14.00 22.00 351 13.3 1.4
Year ended December 31, 2022 – 11.00 – 19.00 30.00 483 22.4 1.7
Year ending December 31, 2023
(Forecast) – 16.00 – 16.00 32.00 29.7
2
3. Forecast of consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)
Percentages indicate year-on-year changes
Net sales Operating profit Ordinary profit Profit attributable to
owners of parent Earnings per share
Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen
Full year 52,000 2.7 2,700 2.7 2,800 (10.6) 1,700 (19.6) 107.78
4. Notes
(1) Changes in significant subsidiaries during the year ended December 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation): No
(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 December 31, 2022 17,710,000 shares As of December 31, 2021 17,710,000 shares
Number of treasury shares at the end of the period
As of December 31, 2022 1,928,421 shares As of December 31, 2021 1,948,421 shares
Average number of shares during the period
Year ended December 31, 2022 15,772,810 shares Year ended December 31, 2021 15,749,890 shares
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Consolidated financial statements
Consolidated balance sheets
(Millions of yen)
As of December 31, 2021 As of December 31, 2022
Assets
Current assets
Cash and deposits 7,659 7,052
Notes and accounts receivable - trade 9,618 –
Notes and accounts receivable - trade, and contract
assets – 10,435
Merchandise and finished goods 4,895 6,093
Work in process 669 949
Raw materials and supplies 3,766 4,363
Other 952 962
Allowance for doubtful accounts (0) (1)
Total current assets 27,562 29,855
Non-current assets
Property, plant and equipment
Buildings and structures 26,509 27,396
Accumulated depreciation (13,225) (14,249)
Buildings and structures, net 13,283 13,147
Machinery, equipment and vehicles 19,901 20,835
Accumulated depreciation (16,314) (17,831)
Machinery, equipment and vehicles, net 3,587 3,004
Tools, furniture and fixtures 3,914 4,157
Accumulated depreciation (3,314) (3,459)
Tools, furniture and fixtures, net 599 697
Land 5,247 5,352
Leased assets 339 333
Accumulated depreciation (172) (213)
Leased assets, net 167 119
Construction in progress 392 90
Total property, plant and equipment 23,277 22,411
Intangible assets
Other 298 399
Total intangible assets 298 399
Investments and other assets
Investment securities 1,706 1,716
Investments in capital 2 2
Guarantee deposits 356 285
Deferred tax assets 980 1,022
Other 348 433
Allowance for doubtful accounts (0) (5)
Total investments and other assets 3,394 3,455
Total non-current assets 26,970 26,266
Total assets 54,533 56,122
4
(Millions of yen)
As of December 31, 2021 As of December 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade 6,619 6,544
Short-term borrowings 5,662 5,168
Lease liabilities 48 44
Accounts payable - other 1,539 1,367
Income taxes payable 570 481
Accrued consumption taxes 142 158
Provision for bonuses 772 788
Provision for bonuses for directors (and other
officers) 35 17
Other 1,312 1,416
Total current liabilities 16,702 15,987
Non-current liabilities
Long-term borrowings 6,038 5,170
Lease liabilities 96 52
Long-term accounts payable - other 39 39
Retirement benefit liability 3,298 3,368
Provision for share-based compensation 115 160
Long-term deposits received 875 902
Other 42 49
Total non-current liabilities 10,506 9,742
Total liabilities 27,209 25,729
Net assets
Shareholders' equity
Share capital 2,898 2,898
Capital surplus 2,928 2,951
Retained earnings 19,284 21,006
Treasury shares (1,444) (1,449)
Total shareholders' equity 23,667 25,407
Accumulated other comprehensive income
Valuation difference on available-for-sale securities 632 558
Foreign currency translation adjustment 1,002 2,194
Remeasurements of defined benefit plans (251) (199)
Total accumulated other comprehensive income 1,383 2,553
Non-controlling interests 2,272 2,432
Total net assets 27,323 30,392
Total liabilities and net assets 54,533 56,122
5
Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income
(Millions of yen)
Fiscal year ended
December 31, 2021
Fiscal year ended
December 31, 2022
Net sales 48,474 50,627
Cost of sales 32,431 34,456
Gross profit 16,043 16,171
Selling, general and administrative expenses 13,589 13,543
Operating profit 2,453 2,628
Non-operating income
Interest income 43 40
Dividend income 29 31
Share of profit of entities accounted for using equity method 27 41
Foreign exchange gains 109 208
Gain on forgiveness of debts 64 –
Miscellaneous income 211 292
Total non-operating income 485 614
Non-operating expenses
Interest expenses 43 35
Sales discounts 79 –
Swap Loss 7 41
Loss on cancellation of leases 20 14
Miscellaneous losses 80 19
Total non-operating expenses 232 110
Ordinary profit 2,706 3,132
Extraordinary income
Gain on sale of non-current assets 607 23
Gain on sale of investment securities 116 –
Subsidy income – 124
Compensation income 92 –
Total extraordinary income 816 147
Extraordinary losses
Loss on retirement of non-current assets 10 2
Loss on sale of non-current assets 0 0
Loss on sale of investment securities 33 7
Loss on valuation of investment securities 18 –
Total extraordinary losses 61 11
Profit before income taxes 3,461 3,269
Income taxes - current 906 1,031
Income taxes - deferred (168) (24)
Total income taxes 738 1,007
Profit 2,723 2,262
Profit attributable to non-controlling interests 127 147
Profit attributable to owners of parent 2,595 2,114
6
Consolidated statements of comprehensive income
(Millions of yen)
Fiscal year ended
December 31, 2021
Fiscal year ended
December 31, 2022
Profit 2,723 2,262
Other comprehensive income
Valuation difference on available-for-sale securities 266 (73)
Foreign currency translation adjustment 1,507 1,344
Remeasurements of defined benefit plans, net of tax 57 51
Total other comprehensive income 1,831 1,322
Comprehensive income 4,555 3,584
Comprehensive income attributable to
Comprehensive income attributable to owners of parent 4,231 3,285
Comprehensive income attributable to non-controlling
interests 324 299
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Consolidated statements of changes in equity
Fiscal year ended December 31, 2021
(Millions of yen)
Shareholders' equity
Share capital Capital surplus Retained earnings Treasury shares Total shareholders'
equity
Balance at beginning of
period 2,898 2,928 16,909 (1,465) 21,271
Cumulative effects of
changes in accounting
policies
Restated balance 2,898 2,928 16,909 (1,465) 21,271
Changes during period
Dividends of surplus (220) (220)
Profit attributable to
owners of parent 2,595 2,595
Purchase of treasury
shares (0) (0)
Disposal of treasury
shares 0 21 21
Net changes in items
other than shareholders'
equity
Total changes during period – 0 2,375 20 2,396
Balance at end of period 2,898 2,928 19,284 (1,444) 23,667
Accumulated other comprehensive income
Non-controlling
interests Total net assets
Valuation
difference on
available-for-sale
securities
Foreign currency
translation
adjustment
Remeasurements of
defined benefit
plans
Total accumulated
other
comprehensive
income
Balance at beginning of
period 365 (308) (309) (251) 2,146 23,166
Cumulative effects of
changes in accounting
policies
Restated balance 365 (308) (309) (251) 2,146 23,166
Changes during period
Dividends of surplus (220)
Profit attributable to
owners of parent 2,595
Purchase of treasury
shares (0)
Disposal of treasury
shares 21
Net changes in items
other than shareholders'
equity
266 1,310 57 1,635 126 1,761
Total changes during period 266 1,310 57 1,635 126 4,157
Balance at end of period 632 1,002 (251) 1,383 2,272 27,323
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Fiscal year ended December 31, 2022
(Millions of yen)
Shareholders' equity
Share capital Capital surplus Retained earnings Treasury shares Total shareholders'
equity
Balance at beginning of
period 2,898 2,928 19,284 (1,444) 23,667
Cumulative effects of
changes in accounting
policies
0 0
Restated balance 2,898 2,928 19,285 (1,444) 23,668
Changes during period
Dividends of surplus (394) (394)
Profit attributable to
owners of parent 2,114 2,114
Purchase of treasury
shares (183) (183)
Disposal of treasury
shares 23 178 201
Net changes in items
other than shareholders'
equity
Total changes during period – 23 1,720 (5) 1,738
Balance at end of period 2,898 2,951 21,006 (1,449) 25,407
Accumulated other comprehensive income
Non-controlling
interests Total net assets
Valuation
difference on
available-for-sale
securities
Foreign currency
translation
adjustment
Remeasurements of
defined benefit
plans
Total accumulated
other
comprehensive
income
Balance at beginning of
period 632 1,002 (251) 1,383 2,272 27,323
Cumulative effects of
changes in accounting
policies
0
Restated balance 632 1,002 (251) 1,383 2,272 27,324
Changes during period
Dividends of surplus (394)
Profit attributable to
owners of parent 2,114
Purchase of treasury
shares (183)
Disposal of treasury
shares 201
Net changes in items
other than shareholders'
equity
(73) 1,191 52 1,170 159 1,329
Total changes during period (73) 1,191 52 1,170 159 3,068
Balance at end of period 558 2,194 (199) 2,553 2,432 30,392
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Consolidated statements of cash flows
(Millions of yen)
Fiscal year ended
December 31, 2021
Fiscal year ended
December 31, 2022
Cash flows from operating activities
Profit before income taxes 3,461 3,269
Depreciation 2,500 2,417
Loss (gain) on valuation of investment securities 18 –
Increase (decrease) in retirement benefit liability 128 114
Increase (decrease) in provision for share-based compensation 40 44
Increase (decrease) in provision for bonuses 216 12
Increase (decrease) in provision for bonuses for directors (and
other officers) 35 17
Increase (decrease) in allowance for doubtful accounts (1) 5
Interest and dividend income (72) (71)
Interest expenses 43 35
Foreign exchange losses (gains) 12 12
Share of loss (profit) of entities accounted for using equity
method (27) (41)
Loss (gain) on disposal of non-current assets (596) (20)
Loss (gain) on sale of investment securities (83) 7
Gain on forgiveness of debt (64) –
Compensation income (92) –
Subsidy income – (124)
Decrease (increase) in trade receivables (115) (494)
Decrease (increase) in inventories (977) (1,732)
Increase (decrease) in trade payables 998 (279)
Increase (decrease) in accrued consumption taxes (384) 11
Other, net 254 68
Subtotal 5,293 3,254
Interest and dividends received 105 104
Interest paid (44) (36)
Income taxes paid (724) (1,129)
Proceeds from compensation 92 –
Subsidies received – 124
Net cash provided by (used in) operating activities 4,722 2,317
Cash flows from investing activities
Payments into time deposits (1,466) (969)
Proceeds from withdrawal of time deposits 989 1,557
Purchase of property, plant and equipment (1,443) (1,347)
Proceeds from sale of property, plant and equipment 818 69
Purchase of investment securities (17) (115)
Proceeds from sale of investment securities 212 2
Other, net (88) (82)
Net cash provided by (used in) investing activities (994) (885)
10
(Millions of yen)
Fiscal year ended
December 31, 2021
Fiscal year ended
December 31, 2022
Cash flows from financing activities
Proceeds from short-term borrowings 86,822 109,494
Repayments of short-term borrowings (88,940) (108,724)
Repayments of finance lease liabilities (50) (48)
Repayments of long-term borrowings (2,458) (2,168)
Dividends paid (220) (394)
Dividends paid to non-controlling interests (198) (140)
Proceeds from sale of treasury shares 21 201
Purchase of treasury shares (0) (183)
Net cash provided by (used in) financing activities (5,024) (1,962)
Effect of exchange rate change on cash and cash equivalents 479 419
Net increase (decrease) in cash and cash equivalents (816) (110)
Cash and cash equivalents at beginning of period 7,190 6,373
Cash and cash equivalents at end of period 6,373 6,263