アルコニックス（3036） – Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

May 13, 2022 [Japanese GAAP] Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 Listing: Tokyo Stock Exchange URL: http://www.alconix.com 3036 Company name: ALCONIX CORPORATION Stock code: Representative: Masato Takei, President and CEO Takumi Suzuki, Director & Managing Executive Officer, Corporate Div. Contact: Tel: +81-3-3596-7400 Scheduled date of Annual General Meeting of Shareholders: Scheduled date of filing of Annual Securities Report: Scheduled date of payment of dividend: Preparation of supplementary materials for financial results: Holding of financial results meeting: Note: The original disclosure in Japanese was released on May 13, 2022 at 12:30 (GMT +9). June 22, 2022 June 23, 2022 June 23, 2022 Yes Yes (for institutional investors and analysts) 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, 2022) (1) Consolidated results of operations (Percentages represent year-on-year changes) (All amounts are rounded down to the nearest million yen) Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 Note: Comprehensive income (million yen) Million yen 156,286 214,987 Net sales Operating profit Ordinary profit Profit attributable to shareholders of parent % Million yen 11,020 – 5,621 (7.4) % Million yen 11,009 – 5,718 8.6 % Million yen 7,507 – 2,860 5.6 % – (20.9) Fiscal year ended Mar. 31, 2022: 9,855 (-%) Fiscal year ended Mar. 31, 2021: 4,880 (up 66.2%) Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 Net income per share Diluted net income per share Yen 282.50 – Yen 282.54 113.60 Return on equity Ordinary profit on total assets Operating profit to net sales % 15.1 6.9 % 6.8 4.1 % 7.1 2.6 Reference: Share of profit (loss) of entities accounted for using equity method (million yen) Notes: 1. Diluted net income per share for the fiscal year ended March 31, 2021 is not stated because dilutive shares do not Fiscal year ended Mar. 31, 2022: Fiscal year ended Mar. 31, 2021: 125 4 exist. 2. ALCONIX has applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020), etc. from the beginning of the fiscal year ended March 31, 2022. The figures for the fiscal year ended March 31, 2022 are the amounts after the application of this accounting standard and percentages for year-on-year changes are not shown. (2) Consolidated financial position Total assets Net assets Equity ratio As of Mar. 31, 2022 As of Mar. 31, 2021 Million yen 176,437 147,917 Reference: Shareholders’ equity (million yen) As of Mar. 31, 2022: (3) Consolidated cash flows Million yen 57,331 43,372 56,817 Net assets per share Yen 1,889.53 1,709.55 % 32.2 28.9 As of Mar. 31, 2021: 42,800 Cash flows from operating activities Million yen (3,329) 4,098 Cash flows from investing activities Million yen (3,257) (2,472) Cash flows from financing activities Million yen 5,760 2,849 Cash and cash equivalents at end of period Million yen 25,944 26,002 Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 2. Dividends Dividend per share 1Q-end 2Q-end 3Q-end Year-end Total Total dividends Payout ratio (consolidated) Fiscal year ended Mar. 31, 2021 Fiscal year ended Mar. 31, 2022 Fiscal year ending Mar. 31, 2023 (forecast) Yen – – Yen 21.00 24.00 Yen – – Yen 21.00 28.00 Yen Million yen 1,053 1,450 42.00 52.00 – 26.00 – 26.00 52.00 Dividend on equity (consolidated) % 2.6 2.9 % 37.0 18.4 23.0 3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023) (Percentages represent year-on-year changes) Profit attributable to shareholders of parent Net income per share Net sales Operating profit Ordinary profit First half Full year Million yen – 170,000 % Million yen – – 9,100 8.7 % Million yen – – 9,000 (17.4) % Million yen – – 6,800 (18.3) % – (9.4) Yen – 226.14 Note: Only the consolidated earnings forecasts for the fiscal year ending March 31, 2023 are announced since it is currently difficult to reasonably determine the forecasts for the first half of the fiscal year ending March 31, 2023. Please refer to “1. Overview of Results of Operations, etc., (1) Analysis of Results of Operations, Forecasts for the fiscal year ending March 31, 2023” on page 3 of the attachments for further information. * Notes (1) Changes in significant subsidiaries during the period (changes in scope of consolidation): None Newly added: – Excluded: – (2) Changes in accounting policies and accounting-based estimates, and restatements 1) Changes in accounting policies due to revisions in accounting standards, others: Yes 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting-based estimates: None 4) Restatements: None Note: Please refer to “3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial Statements (Changes in Accounting Policies) on page 19 of the attachments for further information. (3) Number of outstanding shares (common stock) 1) Number of shares outstanding at the end of period (including treasury shares) As of Mar. 31, 2022: 30,977,000 shares As of Mar. 31, 2021: 25,943,100 shares 2) Number of treasury shares at the end of period As of Mar. 31, 2022: 907,207 shares As of Mar. 31, 2021: 907,207 shares 3) Average number of shares outstanding during the period Fiscal year ended Mar. 31, 2022: 26,572,806 shares Fiscal year ended Mar. 31, 2021: 25,183,154 shares Note: ALCONIX has a Board Benefit Trust for the distribution of stock to eligible individuals. Shares of ALCONIX stock remaining in this trust are included in treasury shares under shareholders’ equity and deducted from the average number of shares outstanding during the period that was used to calculate net income per share and diluted net income per share. Reference: Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, 2022) (1) Non-consolidated results of operations (Percentages represent year-on-year changes) Net sales Operating profit Ordinary profit Profit Million yen 52,648 107,697 % – Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 24.5 Notes: ALCONIX has applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020), etc. from the beginning of the fiscal year ended March 31, 2022. The figures for the fiscal year ended March 31, 2022 are the amounts after the application of this accounting standard and percentages for year-on-year changes are not shown. % Million yen 3,615 – 2,845 13.2 % Million yen 2,963 930 % Million yen 4,563 3,019 – (2.6) – 16.7 Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 Net income per share Diluted net income per share Yen 136.03 – Yen 136.05 112.99 Note: Diluted net income per share for the fiscal year ended March 31, 2021 is not stated because dilutive shares do not exist. (2) Non-consolidated financial position As of Mar. 31, 2022 As of Mar. 31, 2021 Total assets Net assets Equity ratio Million yen 89,748 75,071 Million yen 24,526 16,825 Net assets per share Yen 813.96 669.97 % 27.3 22.3 Reference: Shareholders’ equity (million yen) As of Mar. 31, 2022: 24,475 As of Mar. 31, 2021: 16,773 * The current financial report is not subject to audit by certified public accountants or auditing firms. * Explanation of appropriate use of earnings forecasts, and other special items Forecasts of future performance in these materials are based on assumptions judged to be valid and information available to ALCONIX’s management at the time the materials were prepared. Actual results may differ significantly from these forecasts for a number of reasons. ALCONIX CORPORATION (3036) Financial Results for FY3/22 Contents of Attachments 1. Overview of Results of Operations, etc. (1) Analysis of Results of Operations (2) Analysis of Financial Position (3) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years 2. Basic Approach to the Selection of Accounting Standards 3. Consolidated Financial Statements and Notes (1) Consolidated Balance Sheet (2) Consolidated Statements of Income and Comprehensive Income Significant Accounting Policies in the Preparation of Consolidated Financial Statements Consolidated Statement of Income Consolidated Statement of Comprehensive Income (3) Consolidated Statement of Changes in Equity (4) Consolidated Statement of Cash Flows (5) Notes to Consolidated Financial Statements Going Concern Assumption 4. Non-consolidated Financial Statements and Notes Changes in Accounting Policies Additional Information Segment and Other Information Per Share Information Subsequent Events (1) Balance Sheet (2) Statement of Income (3) Statement of Changes in Equity 5. Others (1) Changes in Directors (2) Others 2 2 4 5 5 6 6 8 8 9 10 14 16 16 16 19 19 20 24 25 27 27 29 30 32 32 32 1 ALCONIX CORPORATION (3036) Financial Results for FY3/22 1. Overview of Results of Operations, etc. (1) Analysis of Results of Operations Major results for the fiscal year ended March 31, 2022 In the fiscal year ended March 31, 2022, the pace of the recovery slowed late in the fiscal year because of an upturn in COVID-19 cases starting in 2022 due to the Omicron variant. Furthermore, the Ukraine crisis and associated increase in prices of crude oil and other resources are making the economic outlook increasingly uncertain. As for the industries surrounding ALCONIX Group, in the automobile industry, demand is increasing for materials and parts required for the shift to electric vehicles, lighter vehicle weight and self-driving technologies. Production and sales of these materials and parts remained firm during the fiscal year. Demand was steady at a high level in the semiconductor and electronic component sectors, too. However, rapid recovery of demand and growth of production caused shortages of parts for manufacturing and other machinery and semiconductors and other components and raw materials. These shortages forced manufacturers to lower output and, along with disruptions of global logistics, continued throughout the fiscal year. Under such economic circumstances, At the ALCONIX Group, shipments of processing parts for semiconductor manufacturing equipment, etc. and the transaction volumes of electronic and battery materials used in IT products such as smartphones were steady. There was a big increase in shipments of metal precision stamped parts and carbon brushes, etc. since the demand in the automotive sector in Japan and other countries remained firm. The transaction volumes increased for non-ferrous materials, aluminum rolled products and copper products, etc., which significantly contributed to an increase in earnings of the ALCONIX Group through the fiscal year. Major results for the fiscal year ended March 31, 2022 were as follows. FY3/21 (Million yen) FY3/22 (Million yen) Change (Million yen) Change (%) Net sales (Note) Operating profit Ordinary profit Profit attributable to shareholders of parent 214,987 5,621 5,718 156,286 11,020 11,009 2,860 7,507 – 5,398 5,290 4,647 Business segment performance was as follows, with sales in each segment including inter-segment sales. Reportable segments were reclassified in the first quarter of the fiscal year. Segment information in the previous fiscal year has been revised to facilitate direct comparisons. FY3/21 (Million yen) FY3/22 (Million yen) Change (Million yen) Change (%) Trading—Electronic and Advanced Materials Trading—Aluminum and Copper Products Manufacturing—Equipment and Materials Manufacturing—Metal Processing Sales (Note) Segment profit Sales (Note) Segment profit Sales (Note) Segment profit Sales (Note) Segment profit Trading—Electronic and Advanced Materials 36,806 4,273 60,848 2,032 36,269 1,245 27,532 3,449 – 2,706 – 1,387 – 912 – 290 Orders for electronic components and materials for secondary batteries remained high because of rising demand although there was negative impact of temporary production cuts at some companies due to the shortage of supply of semiconductors. As for the minor metals, rare earths, etc., both of the sales and earnings increased significantly throughout the fiscal year as the demand associated with the automobile industry continued to recover. As a result, – 96.0 92.5 162.4 – 172.6 – 214.9 – 273.6 – 9.2 57,966 1,567 116,325 645 24,919 333 22,123 3,159 2 ALCONIX CORPORATION (3036) Financial Results for FY3/22 there was a big increase in segment profit. Trading—Aluminum and Copper Products In the non-ferrous products category, the transaction volume of aluminum rolled products and copper products was higher than the transaction volume in the previous year, along with the increasing speed of the shift to electric vehicles and of making vehicles lighter as well as strong demand for building construction in Japan. The transaction volume of titanium wrought materials remained firm and was higher than the transaction volume in the previous year mainly because of an increase in its exports. In the non-ferrous resources category, the transaction volume of copper, aluminum scrap and recycled aluminum ingots, which are the primary materials in this category, remained firm due to the rise in prices of copper and aluminum and a recovery in automobile production. Manufacturing—Equipment and Materials In the materials category, shipments of plating materials increased significantly because of very strong growth in demand in the United States and China. Shipments of carbon brushes and welding rods remained steady compared to the shipments in the previous fiscal year due to the recovery of demand for automobiles. In the equipment category, shipments of large marking equipment for applications involving steel and of paints and other consumables, etc. in Japan and other countries increased. Testing and other equipment in the construction industry also contributed to the performance of this segment. Manufacturing—Metal Processing Shipments of precision grinding processing parts were down from the shipments in the previous year due to customers’ adjustment in production. Shipments of precision cutting processing parts for semiconductor manufacturing equipment remained firm due to increasing demand for semiconductors. In the metal precision stamped parts category, shipments remained high in order to meet the vigorous demand worldwide in the automobile industry for these parts. Shipments of metal processed parts for air conditioning equipment remained firm in Japan. Note: The ALCONIX Group has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the fiscal year ended March 31, 2022. Due to the use of this new standard, explanations of results of operations are provided without stating the amount of changes and the year-on-year percentage changes for consolidated sales and sales in each segment. For more information, please refer to “3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial Statements (Changes in Accounting Policies).” Forecasts for the fiscal year ending March 31, 2023 Net sales Operating profit Ordinary profit Profit attributable to shareholders of parent FY3/22 (Million yen) FY3/23 (Million yen) Change (Million yen) Change (%) 156,286 11,020 11,009 170,000 9,100 9,000 7,507 6,800 13,714 (1,920) (2,009) (707) 8.8 (17.4) (18.2) (9.4) There are concerns about the negative effect on the recovery of the global economy due to the rapid spread of the Omicron variant worldwide, increasing geopolitical risk caused by the Ukraine crisis and other events, and the big increase in the cost of many materials. As a result, the economic environment is expected to remain uncertain throughout the fiscal year ending in March 2023. The business climate for the ALCONIX Group is expected to benefit from a continuation of rising demand in the automotive and semiconductor sectors. However, logistics problems and shortages of raw materials are not likely to end soon. For these reasons, and the macroeconomic environment explained earlier, upcoming changes in the business climate will have to be monitored closely. 3 ALCONIX CORPORATION (3036) Financial Results for FY3/22 The outlook is for more growth of demand for semiconductors and the emergence of new processed components involving increasing production of electric vehicles. These trends are expected to result in the medium to long-term growth of shipments of many ALCONIX Group products, although there may be short interruptions or downturns in this growth. We expect higher shipments of electronic and battery materials, aluminum rolled products and copper products in the two trading segments and of precision processing parts, automotive materials, chemical products and other products in the two manufacturing segments. We will continue to place priority on electronic components, semiconductors and automobiles as the three business sectors for growth in our medium-term business plan. There will be activities to make current operations in the trading and manufacturing categories more profitable. At group manufacturing companies, we will make expenditures for more equipment in order to raise the efficiency of production activities. Plans also include M&A and, for creating new opportunities of growth, investments in and support for start-up companies by using corporate venture capital. All of these measures have the goal of more growth of corporate value. (2) Analysis of Financial Position 1) Financial position Changes in financial position in the fiscal year ended March 31, 2022 are described as below. The major changes in the assets category were a 17,397 million yen increase in inventories, a 9,663 million yen increase in notes and accounts receivable-trade, a 2,216 million yen increase in property, plant and equipment due to capital expenditures, a 1,243 million yen decrease in investments and other assets, a 968 million yen decrease in intangible assets including amortization of goodwill, and a 358 million yen decrease in cash and deposits. The result was a 28,520 million yen increase in assets over the end of the previous fiscal year to 176,437 million yen. The major changes in the liabilities category were an 8,990 million yen increase in notes and accounts payable-trade, a 2,480 million yen increase in short-term borrowings, a 1,999 million yen increase due to issuance of commercial papers, an 1,815 million yen increase in income taxes payable, a 330 million yen increase in current portion of long-term borrowings, a 1,984 million yen decrease in long-term borrowings. The net result was a 14,560 million yen increase in liabilities over the end of the previous fiscal year to 119,106 million yen. The major changes in the net assets category were a 6,210 million yen increase in retained earnings, a 2,780 million yen increase in share capital and legal capital surplus due to public offering, a 2,387 million yen increase in foreign currency translation adjustment, and a 522 million yen decrease in valuation difference on available-for-sale securities due to the market value evaluation of listed stock. As a result, net assets increased 13,959 million yen over the end of the previous fiscal year to 57,331 million yen. 2) Cash flows Cash and cash equivalents (hereinafter, “net cash”) at the end of the fiscal year ended on March 31, 2022 decreased by 58 million yen from the end of the previous fiscal year to 25,944 million yen. The main changes in cash flows from operating, investing, and financing activities are described as below. Cash flows from operating activities Cash flows from investing activities Description Net cash used in operating activities was 3,329 million yen. Main positive factors include profit before income taxes of 11,165 million yen, a 7,327 million yen increase in trade payables and depreciation including amortization of goodwill of 4,135 million yen. Meanwhile, major negative factors include a 16,276 million yen increase in inventories, a 7,570 million yen increase in trade receivables, and income taxes paid of 2,063 million yen. Net cash used in investing activities was 3,257 million yen. Main positive factors include proceeds from sales of investment securities of 528 million yen. Main negative factors include the payment of 4,261 million yen for the purchase of property, plant and equipment and intangible assets in connection with the strengthening of facilities mainly at manufacturing subsidiaries, and 41 million yen for the purchase of investment securities. 4 ALCONIX CORPORATION (3036) Financial Results for FY3/22 Cash flows from financing activities Net cash provided by financing activities was 5,760 million yen. Main positive factors include a 5,486 million yen increase due to issuance of new common stock by public offering in the end of 2021, a 1,999 million yen increase due to issuance of commercial papers and net increase in short-term borrowings of 1,434 million yen. Main negative factors include net decrease in long-term borrowings of 1,709 million yen, cash dividends paid of 1,135 million yen, and redemption of bonds of 149 million yen. Reference: Cash flow indicators Shareholders’ equity ratio (%) Shareholders’ equity ratio based on market value (%) Ratio of interest-bearing debt to cash flows (%) Interest coverage ratio (times) Shareholders’ equity ratio: Shareholders’ equity / Total assets FY3/21 FY3/22 28.9 28.0 14.4 6.1 32.2 23.8 – – Shareholders’ equity ratio based on market value: Market capitalization based on closing share price at the end of the period / Total assets Ratio of interest-bearing debt to cash flows: Interest-bearing debt / Operating cash flow Interest coverage ratio: Operating cash flow / Interest payments * All indicators are calculated based on consolidated figures. * Market capitalization is calculated by multiplying the closing share price at the end of the period by the number of shares outstanding at the end of the period, excluding treasury shares. * Operating cash flow and interest payments are taken from “Net cash provided by (used in) operating activities” and “Interest expenses paid” on the consolidated statement of cash flows, respectively. * Interest-bearing debt includes all debt on the consolidated balance sheet that incur interest. * Cash flow-to-total debt ratio and interest coverage ratio for the fiscal year ended March 31, 2022 are not presented since operating cash flow was negative. (3) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years ALCONIX’s basic policy regarding dividends is to continuously provide stable dividends while securing adequate internal reserves for future business development and the bolstering of the management structure. Regarding internal reserves, ALCONIX will effectively utilize such reserves in order to strengthen its business structure to meet the needs of the market as the business environment changes, to pursue M&A and business investment, and to invest in the development of its overseas strategy. With respect to the annual dividend for the fiscal year that ended on March 31, 2022, ALCONIX has already made the interim dividend of 24 yen per share in the second quarter. As was announced in the news release titled “Notice of Revisions to Dividend Forecast” dated February 25, 2022, ALCONIX plans to pay a year-end dividend of 28 yen per share.. This will result in an annual dividend of 52 yen per share. 2. Basic Approach to the Selection of Accounting Standards The ALCONIX Group currently applies Japanese accounting standards for its consolidated financial statements to facilitate comparisons with prior-year performance and the performance of other companies in Japan. The ALCONIX Group will consider adopting IFRS taking into consideration active discussion regarding IFRS and trends in the adoption of IFRS by other companies in the same line of business. 5 ALCONIX CORPORATION (3036) Financial Results for FY3/22 FY3/21 (As of Mar. 31, 2021) FY3/22 (As of Mar. 31, 2022) (Millions of yen) 27,048 49,752 20,818 3,362 2,088 4,174 (640) 106,604 15,332 (9,125) 6,206 27,078 (20,798) 6,279 8,229 (6,738) 1,490 7,266 1,744 (1,190) 554 1,047 22,845 2,548 331 2,791 5,671 11,524 123 246 1,004 (103) 12,796 41,313 147,917 26,689 59,415 35,974 4,049 3,641 5,989 (642) 135,119 17,615 (9,832) 7,783 29,037 (22,486) 6,550 8,410 (7,350) 1,059 7,577 2,066 (1,319) 747 1,342 25,061 1,887 410 2,406 4,703 10,243 22 346 962 (21) 11,553 41,317 176,437 3. Consolidated Financial Statements and Notes (1) Consolidated Balance Sheet Assets Current assets Cash and deposits Notes and accounts receivable-trade Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Land Leased assets Accumulated depreciation Leased assets, net Construction in progress Total property, plant and equipment Intangible assets Goodwill Software Other Total intangible assets Investments and other assets Investment securities Long-term loans receivable Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 6 ALCONIX CORPORATION (3036) Financial Results for FY3/22 FY3/21 (As of Mar. 31, 2021) FY3/22 (As of Mar. 31, 2022) (Millions of yen) 34,418 29,109 2,999 5,878 149 866 1,038 3,549 78,011 475 20,509 3,029 537 – 917 174 889 26,533 104,545 3,006 2,416 34,352 (1,129) 38,646 2,761 (46) 1,438 4,153 51 520 43,372 147,917 43,408 31,590 4,999 6,208 149 2,682 1,244 4,358 94,643 325 18,525 2,900 447 92 994 133 1,042 24,462 119,106 5,787 5,238 40,563 (1,157) 50,431 2,238 321 3,825 6,386 51 462 57,331 176,437 Liabilities Current liabilities Notes and accounts payable-trade Short-term borrowings Commercial papers Current portion of long-term borrowings Current portion of bonds payable Income taxes payable Provision for bonuses Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Deferred tax liabilities Provision for retirement benefits for directors (and other officers) Provision for share awards for directors (and other officers) Retirement benefit liability Long-term accounts payable-other 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 Foreign currency translation adjustment Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets 7 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statement of Income ALCONIX CORPORATION (3036) Financial Results for FY3/22 (Millions of yen) FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) 214,987 196,415 18,571 12,949 5,621 63 13 313 12 82 FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) 156,286 130,519 25,767 14,746 11,020 44 14 445 9 84 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Purchase discounts Dividend income Outsourcing service income Real estate rental income Share of profit of entities accounted for using equity method Subsidies for employment adjustment Surrender value of insurance policies Other Total non-operating income Non-operating expenses Interest expenses Sales discounts Foreign exchange losses Loss on sales of notes receivable-trade Rental costs on real estate Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sales of non-current assets Gain on reversal of share acquisition rights Gain on sales of investment securities Gain on bargain purchase Subsidy income Other Total extraordinary income Extraordinary losses Loss on sales of non-current assets Loss on retirement of non-current assets Loss on sales of investment securities Loss on valuation of investment securities Loss on sales of shares of subsidiaries and associates Loss on valuation of shares of subsidiaries and associates Impairment loss Other 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 shareholders of parent 8 125 143 106 170 1,030 472 5 257 20 18 158 933 5,718 4 0 0 82 37 1 126 3 21 18 31 759 5 – 17 856 4,989 2,048 42 2,091 2,898 37 2,860 4 15 – 232 851 519 6 87 33 17 197 863 11,009 8 1 274 – 13 24 323 0 29 – 49 – – 76 11 167 11,165 3,864 (295) 3,568 7,596 88 7,507 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 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 shareholders ofparent Comprehensive income attributable to non-controlling interests ALCONIX CORPORATION (3036) Financial Results for FY3/22 FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) (Millions of yen) 2,898 2,560 (150) (463) 36 1,982 4,880 4,852 27 7,596 (522) 367 2,348 64 2,259 9,855 9,741 114 9 (3) Consolidated Statement of Changes in Equity FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) ALCONIX CORPORATION (3036) Financial Results for FY3/22 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Millions of yen) Total shareholders’ equity 2,989 2,401 33,258 (329) 38,320 17 17 Balance at beginning of period Changes during period Issuance of new shares Dividends of surplus Profit attributable to shareholders of parent Change in scope of consolidation Change in scope of equity method Purchase of treasury shares Disposal of treasury shares Gain on disposal of treasury shares 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 (1,065) 2,860 (700) (800) 34 (1,065) 2,860 (700) (800) – – – – (2) 326 38,646 17 3,006 14 2,416 1,094 34,352 (800) (1,129) (2) 10 ALCONIX CORPORATION (3036) Financial Results for FY3/22 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Total accumulated other comprehensive income Share acquisition rights Non- controlling interests Total net assets 191 103 1,865 2,161 34 761 41,277 – – – – – – – – – 34 (1,065) 2,860 (700) (800) – – – (2) 17 17 51 2,569 (150) (427) 1,992 (240) 1,768 2,569 2,761 (150) (46) (427) 1,438 1,992 4,153 (240) 2,094 520 43,372 Balance at beginning of period Changes during period Issuance of new shares Dividends of surplus Profit attributable to shareholders of parent Change in scope of consolidation Change in scope of equity method Purchase of treasury shares Disposal of treasury shares Gain on disposal of treasury shares 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 11 ALCONIX CORPORATION (3036) Financial Results for FY3/22 FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares 3,006 2,416 34,352 (1,129) (Millions of yen) Total shareholders’ equity Issuance of new shares 2,780 2,780 Balance at beginning of period Changes during period Dividends of surplus Profit attributable to shareholders of parent Change in scope of consolidation Change in scope of equity method Purchase of treasury shares Disposal of treasury shares Gain on disposal of treasury shares 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 (1,130) 7,507 (166) (189) 161 38,646 5,560 (1,130) 7,507 (166) – (189) 161 27 13 – 11,784 50,431 2,780 5,787 2,821 5,238 6,210 40,563 (27) (1,157) 27 13 12 ALCONIX CORPORATION (3036) Financial Results for FY3/22 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Total accumulated other comprehensive income Share acquisition rights Non- controlling interests Total net assets 2,761 (46) 1,438 4,153 51 520 43,372 – – – – – – – – – 5,560 (1,130) 7,507 (166) – (189) 161 27 13 (0) (0) 51 (522) 368 2,387 2,233 (57) 2,174 (522) 2,238 368 321 2,387 3,825 2,233 6,386 (57) 13,959 462 57,331 Balance at beginning of period Changes during period Issuance of new shares Dividends of surplus Profit attributable to shareholders of parent Change in scope of consolidation Change in scope of equity method Purchase of treasury shares Disposal of treasury shares Gain on disposal of treasury shares 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 13 (4) Consolidated Statement of Cash Flows Cash flows from operating activities Profit before income taxes Depreciation Impairment loss Amortization of goodwill Gain on bargain purchase Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in provision for retirement benefits for directors (and other officers) Increase (decrease) in provision for share-based remuneration for directors (and other officers) Increase (decrease) in retirement benefit liability Interest and dividend income Interest expenses Share of loss (profit) of entities accounted for using equity method Loss (gain) on sale of investment securities Loss on valuation of investment securities Loss (gain) on sales of shares of subsidiaries and associates Loss on valuation of shares of subsidiaries and associates Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Decrease (increase) in consumption taxes refund receivable Increase (decrease) in income taxes payable-factor based tax Decrease (increase) in advance payments-trade Decrease (increase) in accounts receivable-other Increase (decrease) in accounts payable-other Increase (decrease) in advances received Other, net Subtotal Interest and dividend received Interest paid Compensation for damage paid Income taxes paid Income taxes refund Net cash provided by (used in) operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sales of investment securities Proceeds from sale of shares of subsidiaries and associates Purchase of shares of subsidiaries resulting in change in scope of consolidation Loan advances Collection of loans receivable Purchase of insurance funds Proceeds from cancellation of insurance funds Other, net Net cash provided by (used in) investing activities 14 ALCONIX CORPORATION (3036) Financial Results for FY3/22 (Millions of yen) FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) 4,989 3,283 – 631 (82) 1 41 FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) 11,165 3,494 76 640 – (124) 191 (359) – 48 (376) 472 (125) 18 31 759 5 (5,088) 204 3,062 (560) 13 (179) (198) (298) (142) 435 6,588 378 (505) (104) (2,371) 113 4,098 (1,053) 1,318 (2,836) (217) (250) 10 665 (374) (131) 398 (36) 22 12 (2,472) (92) 92 74 (489) 519 (4) (274) 49 – – (7,570) (16,276) 7,327 (463) 43 (590) (378) (215) 205 1,333 (1,265) 458 (512) – (2,063) 53 (3,329) (637) 1,032 (4,135) (125) (41) 528 – – (82) 102 (21) 62 60 (3,257) ALCONIX CORPORATION (3036) Financial Results for FY3/22 FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) (Millions of yen) Cash flows from financing activities Net increase (decrease) in short-term borrowings Net increase (decrease) in commercial papers Proceeds from long-term borrowings Repayments of long-term borrowings Redemption of bonds Proceeds from issuance of shares Purchase of treasury shares Dividends paid Dividends paid to non-controlling interests Repayments of finance lease obligations Proceeds from sale and leaseback Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation 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 3,948 2,999 2,697 (4,432) (149) 36 (800) (1,067) (22) (90) – (270) 2,849 (68) 4,407 21,595 – 26,002 1,434 1,999 4,191 (5,901) (149) 5,486 – (1,135) (16) (138) 296 (306) 5,760 87 (737) 26,002 679 25,944 15 ALCONIX CORPORATION (3036) Financial Results for FY3/22 (5) Notes to Consolidated Financial Statements Going Concern Assumption Not applicable. Significant Accounting Policies in the Preparation of Consolidated Financial Statements 1. Scope of consolidation (1) Number of consolidated subsidiaries: 54 Names of major consolidated subsidiaries ADVANCED MATERIAL JAPAN CORPORATION OHKAWA CORPORATION OHBA SEIKEN CO., LTD. HEIWA KINZOKU CO., LTD. MARKTEC CORPORATION ALCONIX (SHANGHAI) CORP. UNIVERTICAL HOLDINGS INC. From the current fiscal year, non-consolidated subsidiary Hong Kong Andex Electronic Material Co.,Ltd and its subsidiary Ningde Andex Electronic Material Co.,Ltd, and ALCONIX CASTLE METALS AND CHEMICALS SDN.BHD. and its subsidiary ALCONIX CASTLE METALS AND CHEMICALS VIETNAM CO.,LTD. were included in the scope of consolidation due to increased materiality. In addition, newly established Alconix Ventures, Inc. and newly formed Alconix Global Innovation Fund Limited Partnership were included in the scope of consolidation. From the current fiscal year, ALCONIX SANSHIN CORPORATION, consolidated subsidiary of ALCONIX, was excluded from the scope of consolidation since this company was absorbed into ALCONIX ･ MITAKA CORPORATION, which is the surviving company. In addition, HONDA DYNAMICS Corporation (sub-subsidiary) was excluded from the scope of consolidation since this company was absorbed into Wind Engineering Center Co., Ltd. (sub-subsidiary). (2) Number of non-consolidated subsidiaries: 4 Names of major non-consolidated subsidiaries Heiwa Thai Corporation Reason for exclusion from the scope of consolidation Non-consolidated subsidiaries are excluded from the scope of consolidation since they have a very minor effect on total assets, net sales and profit/loss (equity in earnings) and retained earnings (equity in earnings) and are relatively insignificant in the context of the consolidated financial statements. 2. Application of equity method (1) Number of affiliates accounted for under the equity method: 1 Names of major affiliates: Guandon Chuangfu Metal Product Co., Ltd. (2) Number of affiliates not accounted for under the equity method: 7 Names of major affiliates: Winton International Industries Ltd. Non-equity method affiliates are not accounted for under the equity method, since they have a very minor effect on profit/loss (equity in earnings) and retained earnings (equity in earnings) and are relatively insignificant in the context of the consolidated financial statements. 3. Fiscal year of consolidated subsidiaries The fiscal year end of the seven consolidated subsidiaries in Japan and 33 overseas consolidated subsidiaries is December 31. The consolidated financial statements include the financial statements of these consolidated subsidiaries as of December 31, and necessary adjustments have been made for the consolidation concerning material transactions arising between this date and the consolidated balance sheet date. 16 ALCONIX CORPORATION (3036) Financial Results for FY3/22 4. Accounting standards (1) Valuation standards and methods for principal assets 1) Marketable securities Available-for-sale securities a. Securities other than shares without market quotations Stated at fair value. (Valuation differences are included in net assets. Cost of securities sold is determined by the moving-average method.) b. Shares without market quotations, etc. Mainly stated at cost determined by the moving-average method. c. Investment in limited liability investment partnerships and similar partnerships (deemed to be securities under Article 2, Paragraph 2 of the Financial Instruments and Exchange Act) Stated by the method that the net amount of equity interest is included based on the most recent financial statements available in accordance with the date of financial reporting stipulated in the partnership agreement. 2) Derivatives Stated at fair value. 3) Inventories Merchandise, finished goods and work in process Stated by cost method (The carrying value on the balance sheet is written down to reflect the effect of lower profit margins.) a. Copper tubes, etc. for small-lot sales: Stated at cost determined by the first-in first-out method and by the moving-average method. b. Other inventories: Mainly stated at cost determined by the specific identification method. c. Raw materials and supplies: Stated at cost determined by the moving-average method. (2) Depreciation and amortization of significant depreciable assets 1) Property, plant and equipment (excluding lease assets) Depreciation of property, plant and equipment at ALCONIX and its domestic consolidated subsidiaries is calculated by the declining-balance method, except for buildings acquired on or after April 1, 1998 (excluding attached facilities) and facilities attached to the buildings and structures acquired on or after April 1, 2016 on which depreciation is calculated by the straight-line method. Overseas consolidated subsidiaries mainly apply the straight-line method. Useful life of principle assets is as follows: Buildings and structures: Machinery, equipment and vehicles: Tools, furniture and fixtures: 1-60 years 2-20 years 1-20 years 2) Intangible assets Amortization of intangible assets is calculated by the straight-line method. Software for internal use is amortized over an expected useful life of five years by the straight-line method. 3) Lease assets Lease assets associated with finance leases where there is transfer of ownership: The same method as amortization method used for non-current assets held by ALCONIX is applied. (3) Recognition of significant allowances 1) Allowance for doubtful accounts To prepare for credit losses on accounts receivable, allowances equal to the estimated amount of uncollectible receivables are booked for general receivables based on the historical write-off ratio, and bad receivables based on case-by-case 17 ALCONIX CORPORATION (3036) Financial Results for FY3/22 determination of collectability. 2) Provision for bonuses To provide for employee bonus obligation at ALCONIX and certain consolidated subsidiaries, an amount accrued for the current fiscal year among the estimated future obligations is designated in the reserve account. 3) Provision for retirement benefits for directors (and other officers) To provide for directors’ retirement benefits, ALCONIX and certain domestic consolidated subsidiaries provide an allowance for the aggregate amount payable at the end of the current fiscal year pursuant to ALCONIX’s rules on directors’ retirement benefits. 4) Provision for share awards for directors (and other officers) To provide for ALCONIX shares to be paid to directors in accordance with share issuance rules, ALCONIX provides an allowance for the estimated amount of obligations for share issuance at the end of the current fiscal year. (4) The accounting treatment methods for retirement benefits ALCONIX and its consolidated subsidiaries calculate retirement benefit liability and retirement benefit expenses by using a simplified method in which retirement benefit obligations are equal to the amount that would be paid if all employees voluntarily requested benefits at the end of the fiscal year. (5) Recognition of significant income and expenses ALCONIX and its consolidated subsidiaries sell parts and materials used mainly in smartphones and tablets, aluminum rolled products, copper products, non-ferrous scrap (aluminum, copper), minor metals and other products and manufacture and sell plating materials, carbon brushes for small motors, non-destructive testing equipment, marking devices, precision grinding processing parts, metal precision stamped parts and other products. Revenue for these products is recognized when control of the promised product or service is transferred to the customer because ALCONIX fulfills its obligations at that time. ALCONIX receives the payment or other consideration for fulfilling an obligation generally within one year and this does not include a significant financial component. Sales of products where a product purchased by ALCONIX or a consolidated subsidiary is sent directly from the external supplier to the customer for the efficient provision of the product, thereby resulting in the fulfillment by ALCONIX or a consolidated subsidiary of its obligation, are classified as an agent transaction and only the net amount is recognized as revenue. (6) Translation of significant foreign currency-denominated assets and liabilities Foreign currency-denominated monetary assets and liabilities are translated into yen at the spot exchange rate in effect on the balance sheet date. Exchange gain or loss is accounted as profit or loss. The balance sheet accounts of overseas consolidated subsidiaries are also translated into yen at the spot exchange rate in effect on their balance sheet dates. The income statement accounts of overseas consolidated subsidiaries are translated into yen at the average exchange rate for their accounting periods. Translation adjustments are included in the foreign currency translation adjustment and non-controlling interests in net assets. (7) Methods for material accounting for hedges 1) Hedging method 2) Hedging instruments and risks hedged ALCONIX applies deferred hedge accounting. However, the short-cut method is applied for forward exchange rate contracts that meet hedge accounting criteria. ALCONIX uses forward exchange rate contracts to hedge the risk of foreign exchange rate volatility for foreign currency-denominated transactions. ALCONIX uses commodity futures to hedge the risk of future price volatility of commodities handled (non-ferrous metals). 3) Hedging policy ALCONIX’s policy is to limit derivative transactions to within the scope of real demand. ALCONIX hedges in order to minimize risks from foreign exchange rate volatility and commodity market volatility in line with its internal guidelines (risk management policy). 18 ALCONIX CORPORATION (3036) Financial Results for FY3/22 4) Evaluation method for the effectiveness of hedges Hedges are applied only after confirming beforehand that important criteria related to hedging instruments and risks hedged are generally met. The effectiveness of the hedge is confirmed afterward based on reports from the division that executes derivatives. However, the effectiveness of forward exchange rate contracts based on the short-cut method is not assessed. (8) Method and period of goodwill amortization Goodwill is amortized over 5 years or 10 years by the straight-line method. (9) Scope of cash and cash equivalents on the consolidated statement of cash flows Cash and cash equivalents consist of vault cash, deposits that can be withdrawn on demand, and short-term investments, with original maturities of three months or less, that are readily convertible to known amounts of cash and present insignificant risk of change in value. Changes in Accounting Policies Application of the Accounting Standard for Revenue Recognition Beginning with the current fiscal year, the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. has been applied. Based on this standard, revenue expected to be received in exchange for the provision of promised goods and services is recognized when the control of the goods and services is transferred to customers. As a result, the ALCONIX Group has changed its method of recognizing revenue from inventory transactions, in which the ALCONIX Group has the performance obligation to procure goods and provide them to customers, as principal transactions on a gross basis, and from direct shipment transactions, in which the ALCONIX Group has the performance obligation to arrange for the smooth provision of goods from suppliers to customers, as agent transactions on a net basis. For the application of the Accounting Standard for Revenue Recognition, in accordance with the transitional measures in the proviso to Paragraph 84 of this standard, the cumulative effect of the retrospective application of the new accounting standard, if it is applied at the beginning of the current fiscal year, is added to or subtracted from retained earnings at the beginning of the current fiscal year. The new standard is then applied beginning with this amount of retained earnings. As a result, net sales and cost of sales for the current fiscal year each decreased by 153,733 million yen. There is no cumulative effect of the application of this standard on retained earnings at the beginning of the current fiscal year. In accordance with the transitional treatment set forth in Paragraph 89-3 of the Revenue Recognition Accounting Standard, notes to Revenue Recognition for the previous fiscal year is not presented. Application of the Accounting Standard for Fair Value Measurement ALCONIX has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019) from the beginning of the current fiscal year, and has applied the new accounting policies set forth by the Accounting Standard for Fair Value Measurement prospectively in accordance with the transitional measures 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 the application of these standards on the consolidated financial statements. Additional Information Reclassification Consolidated Statement of Income “Gain on sales of scraps” under “Non-operating income” presented as a separate item in the previous fiscal year, is included in “Other,” in the current fiscal year given the reduced materiality of impact of the amount on the consolidated financial statements. To conform to this change, the consolidated financial statements for the previous fiscal year are reclassified. As a result, “Gain on sales of scraps” (39 million yen) and “Other” (130 million yen) under “Non-operating 19 income” shown in the previous fiscal year’s consolidated statement of income are reclassified to “Other” (170 million yen). ALCONIX CORPORATION (3036) Financial Results for FY3/22 Segment and Other Information [Segment information] 1. Overview of reportable segment Segments used for financial reporting are ALCONIX’s constituent units for which separate financial information is available and for which the Board of Directors performs periodic studies for the purposes of determining the allocation of resources and evaluating performance. ALCONIX has individual business divisions at its headquarters that oversee specific products and merchandise categories. As part of their activities, each division conducts business in line with the comprehensive strategies they have devised for products and merchandise in both domestic and overseas markets. ALCONIX’s businesses are broadly divided as Trading and Manufacturing in order to clarify its business activities and earnings structure of each business division. Furthermore, the four reportable segments are used based on the products and merchandise. They include: Electronic and Advanced Materials, Aluminum and Copper Products, Equipment and Materials, and Metal Processing. The Electronic and Advanced Materials segment trades compound semiconductors, electronic materials, titanium products, nickel products, minor metals and other materials. The Aluminum and Copper Products segment trades aluminum products (rolling products, extruded materials, forged and cast products, beverage cans, foil, etc.), copper products (sheets, strips, rods, and other fabricated products and parts, etc.), secondary aluminum alloy ingots, non-ferrous metal scraps (aluminum, copper, special metal, used home electronics, etc.), metal silicon, zinc alloy ingots, magnesium ingots, various piping equipment, forge/foundry materials, aluminum die cast products, metal molds and cast metals. It also oversees metal fitting works and renovation of commercial and residential buildings. The Equipment and Materials segment trades cooper, nickel, plating materials and related chemicals, non-destructive testing equipment, marking devices and related consumables, metal mold building-up welding rods, cashew resin (brake friction materials and other products), products using cashew-based materials, radio wave absorbing materials, carbon brushes for small motors used for automobiles and general industrial applications, and thermal spraying works. The Metal Processing segment trades precision mechanical parts, made of aluminum, titanium and other light alloys, for use in telecommunications equipment and other devices, semiconductor surface mounting machines (chip mounters), precision grinding processing parts for manufacturing equipment in the automobile and industrial machinery industries, precision stamping dies and stamping parts for the automobile industry, and metal processed components used in air conditioning equipment and automotive parts. From the current fiscal year, certain business segments were reclassified for management purposes. In line with the aforementioned changes, our TITANIUM & NEW MATERIALS DEPT. and ALCONIX EUROPE GMBH were reclassified from the “Electronic and Advanced Materials” segment to the “Aluminum and Copper Products” segment. Segment information for the previous fiscal year has been retrospectively revised based on the revised composition of reportable segments after changes in the organizational structure. 2. Calculation methods for net sales, profits/losses, assets, and other items for each reportable segment The accounting methods for reportable segments are the same as those listed in “Significant Accounting Policies in the Preparation of Consolidated Financial Statements.” Profits for reportable segments are generally ordinary profit figures. Inter-segment sales and transfers are based on market prices. As stated in the “Changes in Accounting Policies” section, ALCONIX has applied the Accounting Standard for Revenue Recognition, etc. from the beginning of the current fiscal year and changed the accounting method for revenue recognition, and therefore, the measurement method for profit or loss in the reportable segments has been changed as well. The effect of this change was to decrease sales by 54,252 million yen, 99,132 million yen and 348 million yen in the “Electronic and Advanced Materials,” “Aluminum and Copper Products” and “Equipment and Materials” segments, respectively, for the current fiscal year. 20 3. Information related to net sales, profits/losses, assets, and other items for each reportable segment and breakdown of ALCONIX CORPORATION (3036) Financial Results for FY3/22 Total 57,966 116,325 24,919 22,123 221,335 Increase in property, plant and equipment and intangible assets 943 2,105 3,205 revenue FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) Net sales External sales Inter-segment sales and transfers Segment profit Segment assets Other items Depreciation Amortization of goodwill Interest income Interest expenses Equity in earnings of affiliates Investment in equity-method affiliates FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) Net sales Revenue from contracts with customers External sales Inter-segment sales and transfers Segment profit Segment assets Other items Depreciation Amortization of goodwill Interest income Interest expenses Equity in earnings of affiliates Investment in equity-method affiliates (Millions of yen) Reportable segment Trading Manufacturing Aluminum and Copper Products Equipment and Materials Metal Processing Total Electronic and Advanced Materials 52,874 115,448 24,664 22,000 214,987 5,092 877 255 122 6,348 1,567 645 333 3,159 5,706 27,371 57,313 40,911 29,943 155,540 1,252 583 36 17 – – 1,856 3,283 47 0 43 125 – 631 63 472 125 411 (Millions of yen) Reportable segment Trading Manufacturing Aluminum and Copper Products Equipment and Materials Metal Processing Total 59,614 59,614 1,233 35,775 27,184 156,286 35,775 27,184 156,286 494 348 5,170 1,271 592 30 26 – – 2,013 3,494 48 0 58 4 – 640 44 519 4 453 113 – 10 305 – 411 98 113 – 10 299 – 453 154 61 – 14 – – 57 106 95 – 3 – – 135 Electronic and Advanced Materials 33,712 33,712 3,094 21 Total 36,806 60,848 36,269 27,532 161,457 4,273 2,032 1,245 3,449 11,001 38,302 74,125 43,755 28,119 184,302 Increase in property, plant and equipment and intangible assets 230 1,253 2,893 4,531 4. Reconciliation of amounts on consolidated financial statements with totals for reportable segments Net sales FY3/21 FY3/22 ALCONIX CORPORATION (3036) Financial Results for FY3/22 Profit FY3/21 FY3/22 Assets FY3/21 FY3/22 221,335 (6,348) 214,987 5,706 12 5,718 155,540 – (7,622) 147,917 (Millions of yen) (Millions of yen) 161,457 (5,170) 156,286 11,001 7 11,009 184,302 72 (7,937) 176,437 (Millions of yen) Total for reportable segments Eliminations for inter-segment transactions Net sales on the consolidated financial statements Total for reportable segments Eliminations for inter-segment transactions Ordinary profit on the consolidated financial statements Total for reportable segments Corporate assets (Note) Eliminations for inter-segment transactions Total assets on the consolidated financial statements Note: Corporate assets are deferred tax assets at ALCONIX. [Related information] FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) 1. Information by product or service This information is omitted because the same information is presented in segment information. 2. Information by region (1) Net sales Japan Asia China North America Europe Other regions Total 126,911 26,092 36,395 15,478 9,679 429 214,987 Notes: 1. Classification of net sales is based on the location of the client and categorized by country or region. (2) Property, plant and equipment 2. Asia does not include China. (Millions of yen) Japan Asia China North America Europe Total 16,983 1,856 1,511 2,492 1 22,845 (Millions of yen) Note: Asia does not include China. 3. Information by major client This information is omitted because no specific external client accounts for 10% or more of consolidated net sales on the consolidated statement of income. FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) 1. Information by product or service This information is omitted because the same informatio