SUMITOMO RIKO COMPANY LTD.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED MARCH 31, 2023 AND FY2022

Disclaimer: This document is a translation of the Japanese original Annual Securities Report ("Yukashoken Hokokusho") and prepared and provided for the reader's convenience only.The Japanese original has been audited by independent auditor and disclosed in Japan in accordance with International Financial Reporting Standards (IFRS) and the Financial Instruments and Exchange Act.

This document does not contain or constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on this document. In the case that there is any discrepancy between the Japanese original and this document, the Japanese original is assumed to be correct.

1. Consolidated Financial Highlights

Fiscal year

IFRS

131st

132nd

133rd

134th

135th

Year end

March 2019

March 2020

March 2021

March 2022

March 2023

Net sales

Millions

469,705

445,148

397,940

445,985

541,010

Thousands of

4,051,295

of yen

U.S. dollars

Profit or loss before

Millions

700

7,435

(608)

387

14,908

Thousands of

111,637

income taxes

of yen

U.S. dollars

Profit or loss

attributable to

Millions

(5,022)

881

(4,957)

(6,357)

6,683

Thousands of

50,045

owners of the parent

of yen

U.S. dollars

company

Comprehensive

income for the year

Millions

Thousands of

attributable to

(5,585)

(6,551)

3,031

6,629

10,815

80,984

owners of the parent

of yen

U.S. dollars

company

Equity attributable to

Millions

158,319

150,625

152,636

157,876

167,105

Thousands of

1,251,349

owners of the parent

of yen

U.S. dollars

Total assets

Millions

397,279

373,262

379,502

408,280

420,008

Thousands of

3,145,185

of yen

U.S. dollars

Equity attributable to

owners of the parent

Yen

1,524.82

1,450.72

1,470.11

1,520.60

1,609.48

U.S. dollars

12.05

per share

Profit or loss

attributable to

owners of the parent

Yen

(48.37)

8.48

(47.74)

(61.23)

64.37

U.S. dollars

0.48

company per share

(basic)

Profit attributable to

owners of the parent

Yen

―

―

―

―

―

U.S. dollars

―

company per share

(diluted)

Equity attributable to

owners of the parent

%

39.9

40.4

40.2

38.7

39.8

ratio

Profit to equity

attributable to

%

(3.1)

0.6

(3.3)

(4.1)

4.1

owners of the parent

ratio

Price earnings ratio

Times

―

69.0

(14.9)

(9.8)

10.7

Net cash provided by

Millions

31,462

36,302

29,830

14,149

33,339

Thousands of

249,656

operating activities

of yen

U.S. dollars

Net cash used in

Millions

(28,251)

(28,645)

(26,126)

(24,956)

(25,512)

Thousands of

(191,044)

investing activities

of yen

U.S. dollars

Net cash provided by

Millions

(8,368)

(12,584)

(6,032)

6,937

(8,906)

Thousands of

(66,692)

(used in) financing

of yen

U.S. dollars

activities

Cash and cash

Millions

Thousands of

equivalents at end of

38,371

33,212

31,080

28,475

29,494

220,863

year

of yen

U.S. dollars

Number of

26,156

26,109

25,796

25,519

25,045

employees

Persons

[average number of

[1,770]

[1,714]

[1,646]

[1,632]

[1,881]

temporary workers]

―1―

(Notes) 1. Consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS").

  1. Profit attributable to owners of the parent company per share (diluted) is not stated here because there were no residual shares.
  2. The amounts shown are rounded to the nearest whole unit.

―2―

2. Summary of Results

(1) Business Results

During the fiscal year under review, the global economy gradually recovered in general, despite some differences from region to region. On the other hand, the outlook remains uncertain, as inflation persists at high levels against the backdrop of tight supply-demand situations due to supply constraints, the protracted situation in Ukraine, and instability in financial markets.

In industry related to the Sumitomo Riko Group, although there were signs of recovery of demand mainly in the automotive market, soaring raw material and fuel prices, transportation costs, and labor costs had adverse impacts.

In these circumstances, the Sumitomo Riko Group promoted selection and concentration of management resources, including optimization of sites, to improve the structure through global cost management and rationalization and worked to improve profitability by ensuring that prices of the Group's products reflect raw material and fuel prices and other costs. Regarding the investment strategy for sustainable growth, the Group will continue to ensure timely and appropriate allocation of investment resources based on business strategies and investment profitability criteria, taking into thorough consideration the current situation and other factors.

Consolidated net sales in the fiscal year under review increased 21.3% year on year to ¥541,010 million, business profit surged 176.3 % year on year to ¥17,870 million, operating profit soared 14.9 times year on year to ¥16,560 million, profit before income taxes jumped 38.5 times to ¥14,908 million, and profit attributable to owners of the parent company was ¥6,683 million compared with loss attributable to owners of the parent company of ¥6,357 million for the previous fiscal year.

Business results by segment are described below.

1) Automotive Products

Sales to external customers increased 24.2% year on year to ¥480,281 million, reflecting increased vehicle production volumes of major customers in regions other than China and the effect of foreign currency translation due to the weaker yen.

Business profit increased 633.6% year on year to ¥14,774 million, mainly because sales volumes increased and product prices were set partially reflecting increases in raw material and fuel prices.

  1. General Industrial Products
    Sales to external customers increased 2.7% year on year to ¥60,729 million.
    Sales of functional components for printers and high-pressure hoses decreased compared with the previous

fiscal year, mainly owing to lower shipments by major customers. On the other hand, overall sales of general industrial products increased compared with the previous fiscal year, reflecting an increase in orders received for rubber bearings for bridges in the infrastructure field and the effect of foreign currency translation due to the weaker yen.

Business profit decreased 30.5% year on year to ¥3,096 million mainly owing to lower shipments and soaring raw material and fuel prices.

Consolidation

The consolidated financial statements include the accounts of the Company and its 75 subsidiaries. Investments in 8 associates meeting the significant influence requirement were accounted for by the equity

―3―

method. There were no unconsolidated subsidiaries or associates to which the equity method was applied.

Research and development costs

Expenses related to research and development of new products and basic research are charged to income when incurred. The Companies' research and development expenses for the year ended March 31, 2023 were ¥14,377 million.

―4―

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Sumitomo Riko Company Limited published this content on 30 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2023 02:16:39 UTC.