積水化学工業（4204） – Summary of Financial Results of Fiscal Year 2021 Ended March 31, 2022

Summary of Financial Results of Fiscal Year 2021 Ended March 31, 2022URL https://www.sekisuichemical.comCompany Name:SEKISUI CHEMICAL CO., LTD.Code Number:4204Representative Director: Mr. Keita Kato, PresidentInquiries:Scheduled General Meeting of Shareholders:Scheduled date for submission of financial statement:Earnings supplementary explanatory documents: YesJune 22, 2022June 22, 2022Earnings results briefing:YesMr. Futoshi Kamiwaki, Senior Managing Executive Officer TEL: +81-3- 6748-6467Scheduled date for payment of dividends:June 23, 2022Stock Listings:Tokyo Stock ExchangeApril 27, 20221. Consolidated Business Results for the Fiscal 2021 (April 1, 2021 to March 31, 2022)(1) Consolidated Business Results (% figures represent changes from the previous year.)(Figures rounded down to the nearest million yen)Net Sales Operating Profit Ordinary Profit FY2021FY2020Millions of yenMillions of yen88,87937,06767,30041,544Comprehensive Profit March 31, 2022: 41,509 million yen（-55.8%), March 31, 2021: 93,956 million yen（158.4%)Millions of yen1,157,9451,056,560Millions of yen97,00162,649%54.8-28.2%32.1-23.5%9.6-6.4(Note)Profit Attributable toOwners of the Parent%-10.8-29.8FY2021FY2020(Note)Profit Attributableto Owners of the Parentper ShareProfit Attributableto Owners of the Parentper Share (Diluted)Profit toEquity RatioOrdinary Profit toTotal Assets RatioOperating ProfitMarginyen83.1791.92yen –%5.56.5%%8.35.67.76.4Share of profit of entities accounted for using equity method FY2021: 108 million yen, FY2020: 2,753 million yenThe Group has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020)and relevant ASBJ regulations from the beginning of the fiscal year ending March 31, 2022.Figures for the year ended March 31, 2022 reflect this change of accounting method.(2) Consolidated Financial PositionTotal AssetsNet AssetsMillions of yenMillions of yenEquity to Total Assets%Net Assets per ShareFY2021FY20201,198,9211,150,143702,753694,39256.358.0(Note) Equity: March 31, 2022: 674,636 million yen, March 31, 2021: 667,066 million yenyen 1,519.191,485.89Equity: Shareholders’ Equity including Accumulated Other Comprehensive IncomeThe Group has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020)and relevant ASBJ regulations from the beginning of the fiscal year ending March 31, 2022.Figures for the year ended March 31, 2022 reflect this change of accounting method.(3) Consolidated Cash FlowsOperating Activities Investing ActivitiesFinancing ActivitiesFY2021FY2020Millions of yen105,02375,271Millions of yen2,694-58,495-54,729-19,157Cash and cash equivalentsat end of periodMillions of yenMillions of yen 133,73976,649(Note) The Group has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020)and relevant ASBJ regulations from the beginning of the fiscal year ending March 31, 2022.Figures for the year ended March 31, 2022 reflect this change of accounting method.2. Dividend Status(Date of Record)At the endof 1QDividend Per ShareAt the endof 3QAt the endof 2QYear-endFull yearTotal DividendPayment(full year)Payout Ratio(consolidated)Dividendto equity ratio(consolidated)yenyenyenyenyen%%FY2020FY2021FY2022 (outlook)—23.0024.0026.00—24.0025.0027.0047.0049.0053.00Millions of yen21,22021,85651.158.935.43.33.33. Consolidated Outlook for Fiscal 2022 (April 1, 2022 to March 31, 2023)Net Sales Operating Profit Ordinary Profit (% figures represent changes from the same period of the previous year.)Profit Attributable toOwners of the ParentProfit Attributable toOwners of the Parentper ShareMid-termFull YearMillions of yen594,2001,241,600%8.47.2Millions of yen39,000100,000%9.812.5Millions of yen41,000100,000%0.13.1Millions of yen27,50066,500%－79.4yen61.93149.754. Other(1)Significant change of subsidiary companies during the term (change of specified subsidiaries that affected the scope ofconsolidated reporting): No(2)Changes to the accounting policy, changes or restatements of the accounting estimatesa)b)c)d)Changes caused by revisions to accounting principlesChanges other than a)Amendments to accounting estimatesRestatementsNote:: Yes: No: No: NoFor further details please refer to “(5) Items Concerning the Information in the Consolidated FinancialStatements (Notes)” (Changes in accounting policies)(3)Number of shares outstanding (common stock)Number of shares outstanding at the enda)of term (including treasury shares)Treasury stock at the end of termb)c)Average outstanding shares in the periodFY2021FY2020FY2021FY2020FY2021FY2020471,507,285476,507,28527,431,11127,573,735445,701,110451,961,766sharessharessharessharessharesshares(Reference information) Non-consolidated financial results for the Fiscal 2021 (April 1, 2021 to March 31, 2022)(1) Non-Consolidated Business Results (% figures represent changes from the previous year.)Net Sales Operating ProfitOrdinary ProfitProfitFY2021FY2020Millions of yen359,176333,064%7.8-6.1Millions of yen11,62517,924%-35.1-8.7Millions of yen42,59847,074%-9.59.5Millions of yen55,91541,210%35.723.1Profit per ShareProfit per Share (Diluted)yenyen (Note) FY2021FY2020125.3691.11–The Company has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the fiscal year ending March 31, 2022.Figures for the year ended March 31, 2022 reflect this change of accounting method.(2) Non-Consolidated Financial PositionFY2021FY2020(Note) Total Assets Net AssetsMillions of yenMillions of yen668,738690,848339,641330,410Equityto Total AssetsNet Assetsper Share%50.847.8yen 764.25735.43Shareholders’ Equity : March 31, 2022: 339,641 million yen, March 31, 2021: 330,410 million yenThe Company has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the fiscal year ending March 31, 2022.Figures for the year ended March 31, 2022 reflect this change of accounting method.Note: Execution chart for audit proceduresThe Financial Instruments and Exchange Law does not require this brief announcement of the most recent financial statementsto be subject to audit review.Note: Remarks on appropriate use of forecasted results of operation and other special mattersThe earnings forecasts and other forward-looking statements presented in this report are based on information available at thetime of the report and on certain assumptions that the Group considers reasonable.Forward-looking statements in no capacity represent a guarantee that the Group will achieve the stated amounts. Variousfactors can cause actual results to differ materially from the forecasts.1. Business Results(1) Analysis of Business Results1) Overview of Fiscal 2021a. Group OverviewNet Sales: 1,157.9 billion yen (+9.6%), Operating Profit: 88.8 billion yen (+32.1%), Ordinary Profit: 97.0billion yen (+54.8%), Profit Attributable to Owners of Parent: 37.0 billion yen (-10.8%)In fiscal 2021, in addition to effects from COVID-19, there were also impacts from factors such as the semiconductor shortage and production delays due to logistics stagnation. However, sales increased due to a certain level of recovery in the domestic and overseas automobile, electronics, and construction markets as well as in new housing construction in Japan. Although prices for raw materials and components rose significantly more than expected, higher sales volumes, improving selling prices, and cost reduction resulted in higher operating profit, and ordinary profit reached a record high. Profit attributable to owners of parent decreased due to the recording of impairment losses in the second quarter of the current fiscal year by a consolidated subsidiary in the U.S. that manufactures composite molded products such as carbon fiber reinforced plastics (CFRP). With regard to the Russia-Ukraine crisis, the Group has no business sites in the affected region and sales in the region are low, and consequently, the effects on business results were de-minimis. We adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) effective as of the first quarter of the current fiscal year. Details are described in “5. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial Statements (Changes in Accounting Policies).” b. Overview by Business SegmentHousing CompanyNet Sales: 515.1 billion yen (+6.2%), Operating Profit: 35.3 billion yen (+15.6%)In fiscal 2021, sales increased due to a recovery in orders for new housing construction and housing renovation as well as contributions such as from the Town and Community Development business and Real Estate business. Despite effects from the sharp rise in component prices, operating profit increased due to the expansion of sales volume and cost reductions. With regard to orders, the Housing business saw favorable trends in subdivision and ready-built houses, resulting in a year-on-year increase. Orders were also up year-on-year in the Housing Renovation business due to the recovery in opportunities for contact with customers. In addition, announcement of the project commemorating the 50th anniversary of the establishment of SEKISUI HEIM helped strengthen the brand. In the Housing business, in addition to developing experience-based facilities, attracting customers via the Web, and strengthening online seminars and business negotiations, we focused on expanding sales of subdivision and ready-built houses, for which demand remains strong. In terms of products, we launched the New Smart Power Station FR GREENMODEL, a new large-capacity storage battery product that uses cells made by SEKISUI CHEMICAL. We also promoted smart and resilient products and products that respond to the new normal, such as ventilation and air conditioning systems SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 20221 equipped with anti-virus filters. In the Housing Renovation business, in addition to expanding periodic checkups, we worked to expand sales of proposal-based products such as exterior wall painting and bathroom renovation by opening and utilizing experience-based showrooms. In the Town and Community Development business, we started sales of four new projects. In the Real Estate business, we strengthened initiatives to expand business relating to the Be HEIM purchase and resale brand. Urban Infrastructure and Environmental Products Company Net Sales: 211.7 billion yen (+3.5%), Operating Profit: 14.0 billion yen (+25.0%) In fiscal 2021, the domestic non-residential market was sluggish due to effects of COVID-19 and there were also delays in construction projects overseas. In addition, prices of raw materials increased more than anticipated, but sales volume increased due to a firm domestic housing market and capital investment demand including strong demand for semiconductors and progress was made on improving sales prices, resulting in substantial increases in sales and profit. In the Piping and Infrastructure field, there were effects from delays in construction projects due to COVID-19 as well as sluggish domestic non-housing (construction related) demand, but the domestic housing market and sales to domestic and overseas plants (semiconductors and LCDs) remained firm, and as a result, net sales were up year-on-year. In addition, sales price improvements were steadily implemented in response to soaring prices for raw materials. In the Building and Living Environment field, sales of products for detached houses, condominiums, and renovation were strong, and net sales were up year-on-year. In the Advanced Materials Field, sales of synthetic lumber for railway sleepers were significantly affected by factors including sluggish domestic demand and delays in overseas construction projects. Progress was made in the development of medical devices and railway applications for thermoplastic sheets in the United States. Sales of liquid transportation containers for medical applications were firm. As a result of these factors, net sales for the field as a whole were up year-on-year when the impact of structural reforms (business transfers) is excluded. High-Performance Plastics Company Net Sales: 358.8 billion yen (+15.8%), Operating Profit: 42.3 billion yen (+46.4%) In fiscal 2021, despite effects from the semiconductor shortage and transportation container shortage, sales increased due to a certain degree of recovery from the impact of COVID-19 in the automotive, electronics, and other sectors. Despite effects from prices for raw materials rising more than anticipated, the Company was able to recover by expanding sales volume, mainly of high-performance products, improving selling prices, and reducing costs, resulting in a significant increase in operating profit. In the Electronics field, sales of finished goods for LCD panels were strong in conjunction with recovery of the markets for mobile devices including smartphones and tablets and in addition, sales expansion in the non-LCD sector such as 5G and semiconductor-related products also progressed steadily, resulting in a year-on-year increase in net sales. In the Mobility field, although the decline in automobile production due to effects of the semiconductor shortage and other factors was greater than anticipated, sales of high-performance products, particularly interlayer SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 20222 films for head-up displays, increased, resulting in a significant year-on-year increase in net sales. SEKISUI AEROSPACE CORPORATION reported impairment losses in the second quarter of fiscal 2021 as an early recovery in demand for aircraft is not expected, but business structure reforms are being implemented and expansion of applications for medical equipment and other uses is ongoing. In the Buildings and Infrastructure Materials field, there was strong demand for chlorinated polyvinyl chloride (CPVC), particularly in India and the Middle East, and sales of fire retardant and noncombustible materials was also strong due to recovery of the construction market. As a result, net sales increased substantially year-on-year. Medical Business Net Sales: 88.5 billion yen (+22.4%), Operating Profit: 11.1 billion yen (+59.5%) In fiscal 2021, demand from outpatients suffering from lifestyle-related diseases recovered in Japan and overseas, sales of COVID-19 test kits were up in the United States, and sales of new active pharmaceutical ingredients in the Pharmaceuticals & Fine Chemicals business were firm, resulting in higher sales and profit. 2) Forecast for Fiscal 2022 a Group Forecast Net Sales: 1,241.6 billion yen (+7.2%), Operating Profit: 100.0 billion yen (+12.5%), Ordinary Profit: 100.0 Billion yen (+3.1%), Profit Attributable to Owners of Parent: 66.5 billion yen (+79.4%) In fiscal 2022, the final year of the Medium-term Management Plan, implementation of growth measures will be accelerated. The direct impact of the Russia-Ukraine crisis on business results will be de-minimis, and we are monitoring the impacts caused by the crisis including resource shortages, prolongation of the increase in raw material prices, and a slump in the European automobile market. Although there are uncertain factors in the business environment, in conjunction with the diminution of effects from COVID-19, we anticipate moderate recovery in the global automotive, smartphone, and other markets as well as new housing starts in Japan. We will work to increase high added value business and expand sales of high added value products that contribute to solving social issues while implementing measures to strengthen profit structures including fixed cost reductions, production optimization, and business structure reforms, and we expect higher sales and operating profit in all segments and record highs in all measures of profit for the Group. In addition, we will accelerate preparations and growth investment for the next fiscal year and onward while implementing measures for the commercialization of biorefineries, DX promotion, and reinforcement of research and development. b. Forecasts by Business Segment Housing Company Net Sales: 548.0 billion yen (+6.4%), Operating Profit: 38.0 billion yen (+7.6%) An extremely demanding business environment including an expansion of rising prices for components is expected in fiscal 2022, but we project higher sales and profit as a result of increased sales and cost reductions in the Housing and Housing renovation businesses. In the Housing business, we will increase customers by reinforcing web-based marketing and work to enhance SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 20223 methods of creating and developing customers including development and utilization of experience-based facilities. In addition, we will introduce products with enhanced smart and resilience functions and functions that respond to the new normal, work to increase sales of subdivision and ready-build houses, and take action to raise sales. We will also strengthen foundations through leveling of construction and other measures. In the Housing Renovation business, we will reinforce sales structures by expanding periodic diagnoses, using showrooms and the Web, and other measures. In addition, we will raise sales by expanding sales of smart and resilient products and products that respond to the new normal and improving productivity. In the Town and Community Development business, we will continue to focus our efforts on expanding frontier business including the Be HEIM purchase and resale business. Urban Infrastructure and Environmental Products Company Net sales: 230.4 billion yen (+8.8%), Operating profit: 18.0 billion yen (+28.0%) In fiscal 2022, sales and profit are expected to increase due to continued efforts to extend sales of prioritized products that contribute to solutions to social issues and expand overseas business, and due to steady efforts to match sales prices with soaring raw materials prices. In addition, we aim to materialize the effects at an early stage through productivity improvements and production automation utilizing DX. In the Piping and Infrastructure field, we will make continued efforts to extend sales of prioritized products that contribute to the solution to social issues such as labor shortages and infrastructure deterioration and increase sales from measures to reliably convert delayed projects into earnings and absorb demand for capital investment for plants. nursing care products. In the Building and Living Environment field, we will further increase sales of disaster response products and In the Advanced Materials field, we will work to increase sales by promoting overseas adoption of synthetic lumber for use as railway sleepers, developing applications for thermo plastic sheets, and expanding products such as liquid transportation containers. We will also steadily advance preparations for the start of production at our synthetic lumber plant in the Netherlands in fiscal 2022. High-Performance Plastic Company Net sales: 388.6 billion yen (+8.3%), Operating profit: 48.0 billion yen (+13.3%) In fiscal 2022, despite an uncertain business environment resulting from soaring raw materials prices, higher sales and profit are expected due to promoting a further shift to growth measures in strategic segments and improving sales prices. in sales. In the Electronics field, we will accelerate the increase of sales of non-LCD products including substrate and semiconductor related products against a background of firm smartphone markets to achieve continued growth In the Mobility field, although risk factors remain, we will continue to promote increased sales of high-performance interlayer films with a focus on head-up displays to achieve an increase in sales. In the Building and Infrastructure Materials field, as overseas demand remains firm and domestic demand is on track to recovery, we will increase overseas sales of chlorinated polyvinyl chloride (CPVC), expand the fire SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 20224 protection materials business with a focus on nonflammable urethane products, and continue to improve sales prices to achieve higher sales. Medical Business Net sales: 87.0 billion yen (-1.7%), Operating profit: 12.5 billion yen (+11.8%) In fiscal 2022, a decrease in sales is expected due to decreasing demand for COVID-19 diagnostics, while an increase in profit is expected due to efforts to increase sales of new coagulation devices and high value-added products in the Diagnostics Business, and due to efforts to win new orders for drug development solutions along with promotion of increasing sales of new pharmaceutical ingredients in the Pharmaceuticals & Fine Chemicals business. (2) Basic Policy on Distribution of Profits and Dividends for Fiscal 2021 and Fiscal 2022 SEKISUI CHEMICAL positions increasing corporate value and actively returning profits to shareholders as priority management objectives. With regard to shareholder returns, we expressed the following policy in our Medium-term Management Plan, which started in April 2020, reinforcing and clarifying our commitment. – Dividend payout ratio: 35% or higher – DOE: 3% or higher – Total payout ratio: If the D/E ratio is no higher than 0.5, 50% or higher – Retirement of treasury shares: Retirement of new acquisitions of treasury shares such that treasury shares are no more than 5% of the total number of issued shares The record dates for payment of dividends will remain the last day of the first half and the last day of the fiscal year, and the policy of paying dividends twice annually will continue. In consideration of the above policies, SEKISUI CHEMICAL plans to pay a fiscal year-end dividend of ¥25 per share, the same amount as the most recent forecast, for a total dividend for the fiscal year of ¥49. Current forecast End of 1H ― Annual Dividend Per share (yen) Fiscal Year-End Total 25.00 49.00 Fiscal 2021 results 24.00 ― ― Fiscal 2020 results 23.00 24.00 47.00 In fiscal 2022, SEKISUI CHEMICAL plans to pay a first half period-end dividend of ¥26 per share and a fiscal year-end dividend of ¥27 for a full fiscal year dividend distribution of ¥53 per share. SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202253. Management Policies (1) Basic Management Policies SEKISUI CHEMICAL Group aims to meet the expectations of our stakeholders, create social value, and contribute to society through our business activities. The Group makes efforts to prepare management strategies, achieve a sustainable society and continued growth by the Group, and enhance our corporate value based on the Group Vision that the Group will contribute to people’s lives around the world and the global environment on the frontiers of “Creation of Housing/Social Infrastructure’ and “Chemical Solutions.” (2) Medium- and Long-Term Management Strategies In fiscal 2020 (ended in March 2021), SEKISUI CHEMICAL Group formulated the Long-term Vision, “VISION 2030,” and the Medium-term Management Plan, “Drive 2022,” covering the three-year period through fiscal 2022 (ending in March 2023) and has been undertaking the following initiatives. The Long-term Vision, “VISION 2030,” involves the Vision Statement, “Innovation for the Earth: In order to realize a sustainable society, we support the basis of LIFE and continue to create ‘peace of mind for the future,’’’ which is backed by our strong commitment to continuous innovation. The Group has set four business domains: Residential (Housing); Advanced Lifeline (Social Infrastructure); Innovative Mobility (Electric/ Mobile); and Life Science (Health/ Medical) and makes efforts to expand the existing business and take on the challenges of new business domains based on strategies focused on “Innovation and Creation centered on ESG Management,” which will result in doubling the Group’s business volume by 2030. Under the Medium-term Management Plan, “Drive 2022,” the Group will work on the three key Drive issues of (1) business growth and reform, (2) preparations for long-term growth, and (3) strengthening the ESG Management base and will accelerate efforts by practicing ESG Management on a global basis based on the basic policies of driving “growth,” “reform,” and “preparations” on a sustainable basis toward realizing the long-term vision. The basic strategies are to build a corporate structure that is able to practice ESG Management and enhance corporate value on a sustainable basis, address the above three key Drive issues, and accelerate efforts through combined measures and digital transformation. (1) Business growth and reform (Existing business drive) – Growth strategy: Achieve an increase in Group-wide net sales of about 90 billion yen – Structural reforms: Ensure profitability at a Group-wide operating profit ratio around the 10% level – DX: Strengthen implementation systems and support growth strategies and structural reforms (2) Preparations for long-term growth (New business drive) Create and acquire new businesses and domains – Residential: Expand town planning business – Advanced Lifeline: Fully develop BR development verification – Innovative Mobility: Expand the aircraft and flight vehicle fields – Life Science: Secure the next pillar (3) Strengthening the ESG Management base (Business base drive) – Introduce ROIC as a KPI to strengthen sustainable management capabilities – Enhance management ability to sustain business by improving capital efficiency and reducing capital costs In fiscal 2022, the last fiscal year of the Medium-term Management Plan, the Group will steadily carry out the above initiatives and further accelerate preparations for the next Medium-term Management Plan and growth over the long term investment. SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202264. Basic Principle for Selection of Accounting Standards In consideration of comparability of consolidated financial statements over different accounting periods and among companies, SEKISUI CHEMICAL Group currently prepares consolidated financial statements based on Japanese GAAP. With regard to the application of International Financial Reporting Standards (IFRS), the Group is looking into policies and establishment of systems as well as the application date. SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202275. Consolidated Financial Statement (Fiscal Year 2021) (1) Consolidated Balance Sheets As of March 31, 2021 As of March 31, 2022 (Millions of yen)Assets Current assets Cash and deposits Notes receivable – trade Accounts receivable – trade Contract assets Securities Merchandise and finished goods Land for sale in lots Work in process Raw materials and supplies Advance payments to suppliers Prepaid expenses Short-term loans receivable Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures, net Machinery, equipment and vehicles, net Land Leased assets, net Construction in progress Other, net Total property, plant and equipment Intangible assets Goodwill Software Leased assets Other Total intangible assets Investments and other assets Investment securities Long-term loans receivable Long-term prepaid expenses Retirement benefit asset Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 87,454 34,810 135,821 − 0 79,652 58,767 50,469 34,021 3,362 7,121 2 15,259 △1,172 505,571 116,433 96,844 80,079 19,203 27,228 11,607 351,397 50,914 10,520 150 36,063 97,649 174,656 1,613 2,021 312 5,347 13,908 △2,334 195,525 644,571 1,150,143 144,534 36,999 148,748 721 − 86,262 55,364 56,611 45,600 4,551 8,092 182 22,984 △1,257 609,395 120,810 108,218 83,059 19,618 21,606 11,939 365,254 10,736 10,561 137 25,298 46,733 130,688 1,157 2,030 21,066 10,909 14,038 △2,352 177,537 589,525 1,198,921 SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 20228 Liabilities Current liabilities Notes payable – trade Electronically recorded obligations – operating Accounts payable – trade Short-term borrowings Lease liabilities Accrued expenses Income taxes payable Provision for bonuses Provision for bonuses for directors (and other officers) Provision for warranties for completed construction Provision for share awards Advances received Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Lease liabilities Deferred tax liabilities Retirement benefit liability Provision for share awards Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets (Millions of yen)As of March 31, 2021 As of March 31, 2022 1,744 25,052 90,798 7,278 4,625 43,910 10,658 17,620 245 1,403 157 40,227 38,555 282,278 40,000 71,207 15,057 10,362 30,402 648 5,793 173,472 455,751 100,002 109,021 441,087 -43,414 606,696 50,781 -33 323 6,647 2,650 60,370 27,325 694,392 1,150,143 1,386 28,335 108,460 4,293 5,000 43,500 23,678 19,709 290 1,482 138 46,068 47,350 329,694 40,000 58,093 15,170 4,624 41,840 773 5,971 166,473 496,168 100,002 109,042 447,958 -44,592 612,409 33,726 -18 322 25,507 2,687 62,226 28,116 702,753 1,198,921 SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 20229(2) Consolidated Statements of Income and Statement of Comprehensive Income (Consolidated Statements of Income) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Millions of yen)Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Share of profit of entities accounted for using equity method Foreign exchange gains Miscellaneous income Total non-operating income Non-operating expenses Interest expenses Sales discounts Miscellaneous expenses Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of investment securities Gain on sale of non-current assets Total extraordinary income Extraordinary losses Impairment losses Loss on sale of investment securities Loss on sale and retirement of non-current assets Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent 1,056,560 726,174 330,385 263,084 67,300 484 4,368 2,753 543 2,886 11,036 861 378 14,447 15,687 62,649 2,258 3,128 5,387 2,428 728 1,700 4,857 63,179 20,029 -127 19,902 43,277 1,733 41,544 1,157,945 801,994 355,950 267,071 88,879 544 3,813 108 4,816 4,715 13,999 774 − 5,102 5,877 97,001 25,909 − 25,909 51,508 − 1,544 53,052 69,859 35,995 -4,896 31,098 38,760 1,692 37,067 SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202210 (Consolidated Statement of Comprehensive Income) Profit Other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests (Millions of yen)Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 43,277 22,450 -32 16,297 11,068 894 50,679 93,956 91,064 2,892 38,760 -15,811 25 19,691 225 -1,382 2,748 41,509 38,924 2,585 SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202211(3)Consolidated Statements of changes in equity; Statements of shareholders’ equity Fiscal 2020 (April 1, 2020 to March 31, 2021) Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Millions of yen)Total shareholders’ equity Balance at beginning of period 100,002 109,273 433,266 -44,139 598,403 Restated balance 100,002 109,273 433,266 -44,139 598,403 -12,699 1 -206 -20,953 41,544 -117 12,699 -12,202 228 12,651 -12,651 − -20,953 41,544 -117 − -12,202 229 − -206 − 8,293 Total changes during period − -252 7,820 725 Balance at end of period 100,002 109,021 441,087 -43,414 606,696 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 27,463 -16 321 -8,499 -8,419 10,850 64 24,901 634,219 Restated balance 27,463 -16 321 -8,499 -8,419 10,850 64 24,901 634,219 1 1 − -20,953 41,544 -12,202 -117 − 229 − -206 23,318 23,318 50,781 -16 -16 -33 15,146 11,069 49,519 -64 2,424 51,879 15,146 11,069 -64 2,424 60,173 323 6,647 2,650 − 27,325 694,392 49,519 60,370 Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Increase and decrease in retainedearnings resulting from inclusion of subsidiaries in consolidation Cancellation of treasury shares Purchase of treasury shares Disposal of treasury shares Transfer from retained earnings to capital surplus Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Increase and decrease in retainedearnings resulting from inclusion of subsidiaries in consolidation Cancellation of treasury shares Purchase of treasury shares Disposal of treasury shares Transfer from retained earnings to capital surplus Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Total changes during period Balance at end of period SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202212 Fiscal 2021 (April 1, 2021 to March 31, 2022) Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Millions of yen)Total shareholders’ equity Balance at beginning of period 100,002 109,021 441,087 -43,414 606,696 Restated balance 100,002 109,021 440,500 -43,414 606,109 Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Increase and decrease in retainedearnings resulting from inclusion of subsidiaries in consolidation Cancellation of treasury shares Purchase of treasury shares Disposal of treasury shares Transfer from retained earnings to capital surplus Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Increase and decrease in retainedearnings resulting from inclusion of subsidiaries in consolidation Cancellation of treasury shares Purchase of treasury shares Disposal of treasury shares Transfer from retained earnings to capital surplus Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Total changes during period Total changes during period − 7,458 Balance at end of period 100,002 109,042 447,958 -1,178 -44,592 6,301 612,409 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 50,781 -33 323 6,647 2,650 60,370 − 27,325 694,392 Restated balance 50,781 -33 323 6,647 2,650 60,370 − 27,325 693,804 -587 -21,531 37,067 17 -8,096 8,096 -8,096 0 21 21 8,096 -9,499 223 -587 -21,531 37,067 -9,499 223 17 − − 21 − -587 -21,531 37,067 -9,499 223 17 − − 21 − − − -17,054 -17,054 15 15 -1 -1 18,860 18,860 36 36 1,856 1,856 791 791 2,647 8,947 Balance at end of period 33,726 -18 322 25,507 2,687 62,226 28,116 702,753 SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202213(4) Consolidated Statements of Cash Flows Cash flows from operating activities Profit before income taxes Depreciation Amortization of goodwill Impairment losses Loss on retirement of non-current assets Loss (gain) on sales of non-current assets Increase (decrease) in retirement benefit liability Loss (gain) on sale of investment securities Interest and dividend income Interest expenses Share of loss (profit) of entities accounted for using equity method Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in advances received Increase (decrease) in deposits received Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Payments into time deposits Proceeds from withdrawal of time deposits Purchase of investment securities Proceeds from sale and redemption of investment securities Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation Purchase of shares of subsidiaries Purchase of intangible assets Decrease (increase) in short-term loans receivable Other, net Net cash provided by (used in) investing activities Cash flows from financing activities Net increase (decrease) in short-term borrowings Repayments of lease liabilities Increase (decrease) in commercial papers Proceeds from long-term borrowings Repayments of long-term borrowings Redemption of bonds Dividends paid Dividends paid to non-controlling interests Purchase of treasury shares Proceeds from issuance of shares Purchase of shares of subsidiaries not resulting in change in scope of consolidation Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation Cash and cash equivalents at end of period Fiscal year ended March 31, 2021 (Millions of yen)Fiscal year ended March 31, 2022 63,179 44,926 4,419 2,428 1,672 -3,101 -1,495 -1,530 -4,853 1,239 -2,753 4,629 -4,165 -11,246 -2,024 280 1,144 92,750 5,208 -1,190 -21,497 75,271 -55,359 3,940 -14,619 6,463 -620 3,478 880 − -6,708 15 4,035 -58,495 -823 -4,947 -28,000 51,531 -3,256 -19 -20,952 -1,240 -12,201 2,632 -2,099 219 -19,157 4,171 1,789 74,721 138 76,649 69,859 45,912 2,792 51,508 1,522 21 -8,323 -25,909 -4,358 774 -108 -7,289 -16,835 13,153 5,638 -772 -3,977 123,607 5,250 -790 -23,044 105,023 -36,997 1,449 -12,609 13,876 -1,108 45,796 − -6 -7,617 -9 -80 2,694 -2,490 -5,408 − − -13,905 − -21,532 -1,643 -9,499 − -45 -202 -54,729 4,064 57,052 76,649 36 133,739 SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202214(5) Items Concerning the Information in the Consolidated Financial Statements (Notes) (Notes regarding the premise of a going concern) No significant changes during the term under review. (Changes in Accounting Policies) Adoption of the Accounting Standard for Revenue Recognition The Group has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review, and it has recognized revenue at the time the control of promised goods or services is transferred to the customer at the amount expected to be received upon exchange of said goods or services. As a result of this adoption, part of sales commissions, which was previously recorded in selling, general and administrative expenses, and sales discounts, which were previously recorded in non-operating expenses, have been deducted from net sales. Furthermore, in cases where consideration in contracts with customers includes variable consideration, when the uncertainty associated with the variable consideration is subsequently resolved, the Group has included the variable consideration in the transaction price only by the portion that is highly unlikely to cause a significant reduction in revenue which was recorded by the time of the resolution. In accounting of subcontract processing with supply of materials for value, although the inventories were previously derecognized at the time when the materials supplied for value were provided to the party receiving them, the supplied materials are now not derecognized as the Group substantially bears an obligation to repurchase the supplied materials. The adoption of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations is subject to the transitional treatment provided for in the proviso to Paragraph 84 of the Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods prior to the beginning of the fiscal year under review, was added to or deducted from the opening balance of retained earnings of the fiscal year under review, and thus the new accounting policy was applied from such opening balance. As a result of the adoption of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations, “Notes receivable – trade” and “Accounts receivable – trade” which were presented under “Current assets” in the consolidated balance sheet for the previous fiscal year, has been included in “Notes receivable – trade”, “Accounts receivable – trade” and “Contract assets” from the fiscal year under review. In accordance with transitional treatment provided for in the proviso to Paragraph 89-2 of the Accounting Standard for Revenue Recognition, reclassification based on the new presentation method has not been made for the previous fiscal year. As a result of this change, for the fiscal year under review, net sales decreased by ¥3,718 million, cost of sales decreased by ¥665 million, selling, general and administrative expenses decreased by ¥2,632 million and non-operating expenses decreased by ¥416 million, while operating income decreased by ¥419 million, and ordinary income and income before income taxes each decreased by ¥3 million compared with the amount before the adoption of the Accounting Standard for Revenue Recognition. In addition, the opening balance of retained earnings decreased by ¥587 million. There is almost no effect on Per share data. SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202215Adoption of the Accounting Standard for Fair Value Measurement The Group has adopted the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the fiscal year under review, and it has applied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement and relevant ASBJ regulations prospectively in accordance with the transitional measures provided for in Paragraph 19 of the Accounting Standard For Fair Value Measurement, and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no effect of this adoption on the consolidated financial statements. SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202216(Notes to the Consolidated Financial Statements) I. Fiscal year 2020 (April 1, 2020 to March 31, 2021) Impairment losses following assets. The Group reported Impairment losses in the current consolidated fiscal year associated with the Item Other Type Location Intangible assets United States of America The Companies group their non-current assets and goodwill by cash-generating units (except for idle property which is grouped individually) and these are defined as the smallest identifiable groups of assets generating cash inflows which are largely independent of the cash inflows from other assets or groups of assets. The Companies have written down the amount of certain intangible assets recorded upon acquiring the mobility field business in the United States, to the recoverable amount as the initially estimated in the business plan at the time of acquisition was no longer expected. As a result, the Companies recorded impairment losses on non-current assets under extraordinary losses in the amount of 1,693 million yen. The recoverable amount is calculated based on fair value less costs of disposal, which was calculated by discounting future cash flows. Ⅱ. Fiscal year 2021 (April 1, 2021 to March 31, 2022) Impairment losses following assets. The Group reported Impairment losses in the current consolidated fiscal year associated with the Item Other Goodwill Type Location Intangible assets United States of America Goodwill United States of America The Companies group their non-current assets and goodwill by cash-generating units (except for idle property which is grouped individually) and these are defined as the smallest identifiable groups of assets generating cash inflows which are largely independent of the cash inflows from other assets or groups of assets. The Companies have written down the amount of certain intangible assets recorded upon acquiring the mobility field business in the United States, to the recoverable amount as the companies reviewing the timing of market recovery in the aircraft industry due to the prolongation of the impact of the spread of COVID-19. As a result, the Companies recorded impairment losses on non-current assets under extraordinary losses in the amount of 12,128 million yen. The recoverable amount is calculated based on fair value less costs of disposal, which was calculated by discounting future cash flows. Since the future cash flows are no longer expected, an impairment loss was recorded on their entire amount. Furthermore, the Companies have written down the amount of goodwill to the recoverable amount. As a result, the Companies recorded impairment losses on goodwill under extraordinary losses in the amount of 37,419 million yen. The recoverable amount was calculated based on the value in use. SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202217(Segment Information) Ⅰ Segment Information a. Overview of the Reportable Segments The reportable segments of the Group are determined on the basis that separate financial information of such segments is available and examined periodically by the Board of Directors of the Company to make decisions regarding the allocation of management resources and assess the business performances of such segments. The Group have divided the business operations into the four segments of Housing, Urban Infrastructure and Environmental Products (UIEP), High Performance Plastics (HPP), and Medical based on manufacturing methods, products, sales channels, and other business similarities. Each business segment formulates comprehensive strategies and develops business activities for its products in Japan and overseas. The Housing business comprises manufacturing, construction, sales, refurbishing, and other operations related to unit housing, real estate, and residential service business. The UIEP business comprises manufacturing, sales, and construction operations related to PVC pipes and joints, polyethylene pipes and joints, pipe and drain renewal materials and construction methods, reinforced plastic pipe, construction materials, and FFU. The HPP business comprises manufacturing and sales of interlayer films for laminated glass, polyolefin foam, tape, LCD fine particles and photosensitive materials, functional resin for infrastructure, The Medical business comprises manufacturing and sales of diagnostic reagents, analyzers, diagnostic drugs and other products. pharmaceutical ingredients and intermediates b. Calculation methods used for sales, profit, assets and the other items on each reportable segment The amounts of segment profit (loss) are calculated based on the same method as the calculation of operating profit in the consolidated statement of income. The figures of intersegment sales and transfers are presented based on the current market price at the time of these transactions. As described in (Changes in Accounting Policies), the Group has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review, and changed the accounting method for revenue recognition. The method for measuring profit or loss in the reportable segment was also changed. As a result, amounts for the fiscal year ending March 31, 2022 has been decreased by below: (Housing) Net sales decreased by ¥1,062 million and Segment profit decreased by ¥73 million. (UIEP) Net sales decreased by ¥1,310 million and Segment profit decreased by ¥155 million. (HPP) Net sales decreased by ¥1,328 million and Segment profit decreased by ¥174 million. (Medical) Net sales decreased by ¥16 million and Segment profit decreased by ¥16 million. SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202218c. Information as to sales, profit (loss), assets and other items on each reportable segment Fiscal 2020 (April 1, 2020 to March 31, 2021) (Millions of yen) Reportable Segments Housing UIEP HPP Medical Total (Note) Other Total Net sales Sales to third parties 485,124 192,069 303,559 72,341 1,053,095 3,465 1,056,560 140 12,516 6,307 0 18,966 146 19,112 Total 485,265 204,586 309,867 72,342 1,072,061 3,611 1,075,672 30,546 11,251 28,935 7,010 77,744 -8,746 68,997 324,795 210,361 422,924 123,656 1,081,738 28,410 1,110,149 Other items: 9,688 8,667 19,347 4,079 41,783 2,199 43,982 accounted for using 10,304 − 2,872 − 13,177 − 13,177 Intersegment sales or transfers Segment profit (loss) Segment Assets Depreciation and amortization Investment in entities equity method Increase in property, plant and equipment, and intangible assets 13,761 14,076 17,184 6,519 51,543 4,634 56,177 Note: Other represents segments other than the reportable segments, which includes provision of services and manufacturing and sales of film-type lithium-ion batteries and products not included in the Company’s reportable segments. SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202219 − − − Fiscal 2021 (April 1, 2021 to March 31, 2022) (Millions of yen) Reportable Segments Housing (Note 1) UIEP HPP Medical Total (Note1 Total Other and 2) North America 14,074 64,749 16,539 95,364 Sales Japan Europe China Asia Others 513,861 166,556 109,780 38,332 828,530 2,076 830,607 5,550 60,193 19,404 85,148 5,143 58,955 11,007 75,106 1,005 1,177 5,845 47,448 2,332 56,804 − 1,669 11,237 900 13,807 13 − 88 − 95,377 85,148 76,112 56,892 13,807 Sales to third parties 515,038 198,840 352,365 88,516 1,154,761 3,183 1,157,945 Intersegment sales or transfers 152 12,936 6,443 0 19,533 1,761 21,294 Total 515,191 211,776 358,809 88,517 1,174,295 4,944 1,179,239 Segment profit (loss) 35,318 14,061 42,351 11,180 102,911 -10,316 92,595 Segment Assets 349,106 227,415 404,624 134,635 1,115,782 33,702 1,149,484 9,878 8,879 18,959 4,489 42,206 2,554 44,760 accounted for using 11,147 − 2,916 − 14,063 − 14,063 Other items: Depreciation and amortization Investment in entities equity method Increase in property, plant and equipment, and intangible assets 12,964 8,814 17,666 5,616 45,061 5,885 50,947 Note 1: Net Sales of Housing segment in Japan includes ¥40,930 million that does not correspond to revenue generated from contracts with customers. Net Sales of other segment in Japan includes ¥935 million that does not correspond to revenue generated from contracts with customers. Note 2: Other represents segments other than the reportable segments, which includes provision of services and manufacturing and sales of film-type lithium-ion batteries and products not included in the Company’s reportable segments. SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202220Profit Fiscal 2020 Fiscal 2021 d. Information on the difference between the total amount of the reportable segments in the above tables and the corresponding amount reported in the consolidated financial statements Net Sales Fiscal 2020 Fiscal 2021 Total of reportable segments Other net Sales Eliminations Net Sales Total of reportable segments Other net Sales Eliminations Corporate expenses (Note) Operating Profit reportable segment. Total of reportable segments Assets classified as “Other” Eliminations Corporate assets (Note) Total Assets (Millions of yen) (Millions of yen) 1,174,295 4,944 -21,294 1,157,945 102,911 -10,316 294 -4,010 88,879 (Millions of yen) 1,115,782 33,702 -340,352 389,789 1,198,9211,072,061 3,611 -19,112 1,056,560 77,744 -8,746 447 -2,144 67,300 1,081,738 28,410 -316,651 356,645 1,150,143 Note: Corporate expenses are mainly general administrative expenses not attributable to each Assets Fiscal 2020 Fiscal 2021 Note: Corporate assets are assets not attributable to each reportable segments which related to administrative operations. SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202221Other item (Millions of yen) Reportable Segments Others Adjusted amount Reporting (Note) Segment Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2020 2021 2020 2021 2020 2021 2020 2021 Depreciation 41,783 42,206 2,199 2,554 943 1,151 44,926 45,912 13,177 14,063 − − 35,239 30,272 48,417 44,336 property, plant and equipment, 51,543 45,061 4,634 5,885 1,867 2,976 58,044 53,923 Note: Adjustment represents the amounts of investments in entities accounted for using equity method, which are not attributable to the reportable segments. Investment in entities accounted for using equity method Increase in and intangible assets SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202222Fiscal 2020 (April 1, 2020 to March 31, 2021) a. Product and service information This information is presented in the segment data and is therefore omitted here. b. Geographical information 1. Net Sales Japan North America Europe China Asia Others Total 791,247 80,279 56,773 65,395 55,159 7,704 1,056,560 Note : Net sales are classified by country or region based on client location. 2. Property, plant and equipment (Millions of yen) (Millions of yen) Japan North America Europe China Asia Others Total 238,128 35,675 42,036 12,115 21,591 1,848 351,397 c. Impairment losses (Millions of yen) Housing UIEP HPP Medical Other Unallocatable Total Eliminations or Accounts − 373 2,001 54 − − 2,428 Housing UIEP HPP Medical Other Unallocatable Total (Millions of yen)Eliminations or Accounts Amortization Balance at March 31, 2021 − 2,801 1,588 − 4,419 − 44,275 6,634 − 50,914 29 4 Impairment losses d. Information about goodwill − − SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202223 Fiscal 2021 (April 1, 2021 to March 31, 2022) a. Product and service information This information is presented in the segment data and is therefore omitted here. b. Geographical information 1. Net Sales This information is presented in the segment data and is therefore omitted here. (Changes in Presentation Method) To ensure the clear presentation, a portion of Net sales which was included in “Other” and Net sales of “America” in the previous fiscal year has been included in “North America” from the fiscal year under review. And Net sales of “China” which was included in “Asia” in the previous fiscal year has been presented separately from the fiscal year under review. And the scope of each geographical segment has been changed. To reflect this change in presentation, “b. Geographical information 1. Net Sales” for the previous fiscal year has been reclassified. As a result Net sales for previous fiscal year which was presented as “Japan” ¥790,537 million, “America” ¥76,359 million, “Europe” ¥57,673 million, “Asia” 119,359 million and “Others” ¥12,630 million has been reclassified as “Japan” ¥791,247 million, “North America” ¥80,279 million, “Europe” ¥56,773 million, “China” ¥65,395 million, “Asia” 55,159 million and “Others” ¥7,704million. 2. Property, plant and equipment (Millions of yen) Japan North America Europe China Asia Others Total 243,213 38,522 46,755 13,003 21,921 1,837 365,254 (Changes in Presentation Method) To ensure the clear presentation, a part of Property, plant and equipment which was included in “Other” and Property, plant and equipment of “America” in the previous fiscal year has been included in “North America” from the fiscal year under review. And Property, plant and equipment of “China” which was included in “Asia” in the previous fiscal year has been presented separately from the fiscal year under review. To reflect this change in presentation, “b. Geographical information 2. Property, plant and equipment” for the previous fiscal year has been reclassified. As a result Property, plant and equipment for previous fiscal year which was presented as “America” ¥31,347 million, “Asia” ¥33,707 million and “Others” ¥6,176 million has been reclassified as “North America” ¥35,675 million, “China” ¥12,115 million, “Asia” 21,591 million and “Others” ¥1,848million. SEKISUI CHEMICAL (4204) Summary of Financial Results of Fiscal Year 2021 Ended March 31, 202224 c. Impairment losses Housing UIEP HPP Medical Other Unallocatable Total (Millions of yen)Eliminations or Accounts Impairment losses 85 494 49,843 859 − 225 51,508 Note: The amount in “Eliminations or Unallocatable Accounts” are Impairment losses for assets not attributable to each reportable segments which related to administrative operations. d. Information about goodwill Housing UIEP HPP Medical Other Unallocatable Total (Millions of yen)Eliminations or Accounts Amortization Balance at March 31,