Nicca Chemical : Summary of Consolidated Financial Results for the Six Months Ended March 31, 2022 (Based on Japanese GAAP)

July 28, 2022

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

SAWASAKI Shoya

TEL 0776-24-0213

General manager of Administration Division

Scheduled date to file Quarterly Securities Report:

August 12, 2022

Scheduled date to commence dividend payments:

September 7, 2022

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)

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

%

Six months ended June 30, 2022

24,917

-

1,386

-

1,823

-

1,058

-

Six months ended June 30, 2021

24,100

22.0

1,413

315.8

1,596

239.0

1,583

801.5

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended June 30, 2022

67.14

-

Six months ended June 30, 2021

100.59

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of June 30, 2022

56,818

30,183

48.7

1,755.08

As of December 31, 2021

54,533

27,323

45.9

1,589.37

Annual dividends per share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended December 31, 2021

-

8.00

-

14.00

22.00

Year ending December 31, 2022

-

11.00

Year ending December 31, 2022 (Forecast)

-

11.00

22.00

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

51,500

-

2,500

-

3,000

-

1,800

(30.7)

114.14

4. Notes

(1)

Changes in significant subsidiaries during the six months ended June 30, 2022

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2)

Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes

(3)

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

(4)

Number of issued shares (common shares)

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

As of June 30, 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 June 30, 2022

1,937,421

shares

As of December 31, 2021

1,948,421

shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)

Six months ended June 30, 2022

15,767,865

shares

Six months ended June 30, 2021

15,742,437

shares

(Millions of yen)

As of December 31, 2021

As of June 30, 2022

Assets

Current assets

Cash and deposits

7,659

6,986

Notes and accounts receivable - trade

9,618

-

Notes and accounts receivable - trade, and

-

10,118

contract assets

Merchandise and finished goods

4,895

5,914

Work in process

669

809

Raw materials and supplies

3,766

4,965

Other

952

1,180

Allowance for doubtful accounts

(0)

(0)

Total current assets

27,562

29,975

Non-current assets

Property, plant and equipment

Buildings and structures, net

13,283

13,660

Machinery, equipment and vehicles, net

3,587

3,330

Land

5,247

5,377

Other, net

1,159

929

Total property, plant and equipment

23,277

23,298

Intangible assets

Other

298

306

Total intangible assets

298

306

Investments and other assets

Other

3,395

3,239

Allowance for doubtful accounts

(0)

(1)

Total investments and other assets

3,394

3,238

Total non-current assets

26,970

26,843

Total assets

54,533

56,818

(Millions of yen)

As of December 31, 2021

As of June 30, 2022

Liabilities

Current liabilities

Notes and accounts payable - trade

6,619

6,475

Short-term borrowings

5,662

6,236

Income taxes payable

570

680

Provision for bonuses

772

690

Provision for bonuses for directors (and other

35

24

officers)

Other

3,042

2,609

Total current liabilities

16,702

16,716

Non-current liabilities

Long-term borrowings

6,038

5,354

Retirement benefit liability

3,298

3,359

Provision for share-based compensation

115

140

Other

1,054

1,063

Total non-current liabilities

10,506

9,918

Total liabilities

27,209

26,635

Net assets

Shareholders' equity

Share capital

2,898

2,898

Capital surplus

2,928

2,928

Retained earnings

19,284

20,123

Treasury shares

(1,444)

(1,434)

Total shareholders' equity

23,667

24,516

Accumulated other comprehensive income

Valuation difference

on

available-for-sale

632

484

securities

Foreign currency translation adjustment

1,002

2,906

Remeasurements of defined benefit plans

(251)

(225)

Total accumulated

other

comprehensive

1,383

3,165

income

Non-controlling interests

2,272

2,500

Total net assets

27,323

30,183

Total liabilities and net assets

54,533

56,818

(Millions of yen)

Six months ended

Six months ended

June 30, 2021

June 30, 2022

Net sales

24,100

24,917

Cost of sales

16,014

16,940

Gross profit

8,085

7,977

Selling, general and administrative expenses

6,672

6,590

Operating profit

1,413

1,386

Non-operating income

Interest income

19

14

Dividend income

10

12

Share of profit of entities accounted for using

3

39

equity method

Foreign exchange gains

93

204

Gain on forgiveness of debts

63

-

Other

84

195

Total non-operating income

275

466

Non-operating expenses

Interest expenses

24

18

Sales discounts

38

-

Other

29

11

Total non-operating expenses

92

29

Ordinary profit

1,596

1,823

Extraordinary income

Gain on sale of non-current assets

595

19

Subsidy income

-

124

Total extraordinary income

595

143

Extraordinary losses

Loss on retirement of non-current assets

1

1

Loss on sale of non-current assets

4

0

Loss on valuation of investment securities

63

27

Total extraordinary losses

69

28

Profit before income taxes

2,122

1,938

Income taxes

460

806

Profit

1,661

1,132

Profit attributable to non-controlling interests

77

73

Profit attributable to owners of parent

1,583

1,058