ＪＳＲ（4185） – (Delayed)Consolidated Financial Results for the fiscal year ended March 2022

Translation Notice: This document is an excerpt translation of the original Japanese document and is for reference purposes only. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (under IFRS) April 25, 2022 JSR Corporation Company name: Tokyo Stock Exchange Listing: 4185 Securities code: https://www.jsr.co.jp/jsr_e/Representative: URL: Yoshiko Takeda, General Manager of Corporate Communications Department Inquiries: TEL: +81-3-6218-3517Scheduled date of ordinary general shareholders meeting: Scheduled date to commence dividend payments: Scheduled date to file annual securities report: Preparation of supplementary material on quarterly financial results: Yes Holding of financial results presentation meeting: June 17, 2022 June 20, 2022 June 17, 2022 Eric Johnson, Representative Director, CEO Yes (for institutional investors and analysts) (Millions of yen with fractional amounts rounded, unless otherwise noted) 1. Consolidated financial results for the fiscal year ended March 31, 2022(from April 1, 2021 to March 31, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.) Revenue Core Operating profit Operating profit Profit Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen 340,997 312,000 9.3 % Millions of yen 43,306 37,902 – % Millions of yen 43,760 34,233 14.3 – % Millions of yen 39,440 (54,530) 27.8. – % – – Profit attributable to owners of parent Total comprehensive income Basic earnings per share Diluted earnings per share Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen 37,303 (55,155) % Millions of yen 59,105 – (41,663) – Yen 173.26 (256.34) Return on equity Return on assets Operating profit ratio % – – % 6.1 4.9 Yen 173.49 (256.73) % 12.8 11.0 Fiscal year ended March 31, 2022 March 31, 2021 % 10.5 (15.1) (Reference): Profit before tax March 31, 2022 45,521 March 31, 2021 33,310 (Reference): Share of profit of investments accounted for using equity method March 31, 2022 163 March 31, 2021 (669) Note: Core operating profit is calculated as operating profit excluding certain gains and expenses attributable to non- recurring factors. Note: The group has classified the Elastomers business as discontinued operations from FY ended March 2022. In the condensed consolidated financial statements, the group has presented profit or loss from discontinued operations separately from continuing operations, and revenue, core operating profit, operating profit and profit before tax are presented for the amount of continuing operations. As the amounts for FY ended March 2021 have also been adjusted to reflect this change, the percent change from the previous year’s result is not presented. (2) Consolidated financial positionTotal assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets Equity attributable to owners of parent per share As of March 31, 2022 March 31, 2021 Millions of yen 809,371 672,773 Millions of yen 414,739 370,736 Millions of yen 376,011 333,995 % 46.5 49.6 Yen 1,748.25 1,554.17 (3) Consolidated cash flowsFiscal year ended March 31, 2022 March 31, 2021 2. Cash dividendsCash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Millions of yen 18,271 70,403 Millions of yen (63,117) (52,687) Millions of yen Millions of Yen 22,994 4,297 45,567 85,377 Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Total cash dividends (Total) Dividend payout ratio (Consolidated) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ending March 31, 2023 (Forecast) Yen Yen Yen Yen Yen Millions of yen – – 30.00 35.00 – – 30.00 60.00 12,894 35.00 70.00 15,055 – 35.00 – 35.00 70.00 Ratio of dividends attributable to owners of parent (Consolidated) % 3.5 4.2 % – 40.3 32.7 3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023(from April 1, 2022 to March 31, 2023)Revenue Core Operating profit Operating profit Profit Profit attributable to owners of parent Basic earnings per share (Percentages indicate year-on-year changes.) Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Fiscal year ending March 31, 2023 (Reference): Profit before tax 410,000 Fiscal year ending March 31, 2023 56,500 20.2 57,500 32.8 57,500 31.4 49,000 24.2 46,000 23.3 213.88 * Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the changein scope of consolidation): YesNew: 1 (Company Name: Inpria Corporation)(2) Changes in accounting policies and changes in accounting estimatesa. Changes in accounting policies required by IFRS: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None(3) Number of issued shares (ordinary shares)a. Total number of issued shares at the end of the period (including treasury shares)As of March 31, 2022 As of March 31, 2021 As of March 31, 2022 As of March 31, 2021 b. Number of treasury shares at the end of the periodc. Average number of shares during the periodFor the fiscal year ended March 31, 2022 For the fiscal year ended March 31, 2021 226,126,145 shares 226,126,145 shares 11,047,900 shares 11,223,335 shares 215,015,886 shares 214,837,519 shares (Reference) Summary of Non-consolidated financial results Non-consolidated financial results for the fiscal year ended March 31, 2022 (from April 1,2021 to March 31,2022) (1) Non-consolidated operating results(Percentages indicate year-on-year changes.) Net sales Operating income Ordinary income Net income Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen 260,987 210,480 % Millions of yen 40,305 11,897 24.0 (6.5) % Millions of yen 48,312 17,711 238.8 1.4 % Millions of yen 45,489 (30,217) 172.8 (8.8) % – – Net income per share Diluted net income per share Yen 211.56 (140.65) Yen 211.28 – Fiscal year ended March 31, 2022 March 31, 2021 year.As of March 31, 2022 March 31, 2021 * “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) has been applied from the current fiscal(2) Non-consolidated financial positionTotal assets Net assets Equity ratio Net assets per share Millions of yen 504,471 428,120 Millions of yen 294,821 269,874 % 58.4 62.9 Yen 1,369.08 1,253.80 (Reference) Equity 294,460 million yen as of March 31, 2022 269,446 million yen as of March 31, 2021 * Quarterly financial results reports are not required to be subjected to quarterly reviews.* Proper use of earnings forecasts, and other special mattersCaution regarding forward-looking statementsThe forward-looking statements, including earnings forecasts, contained in these materials are based oninformation currently available to the Company and on certain assumptions deemed to be reasonable by theCompany. These statements do not purport that the Company pledges to realize such statements. Actual businessand other results may differ substantially due to various factors.How to obtain supplementary material on financial results The material on financial results is available on the Company’s website on Monday, April 25, 2022. Table of contents for the attachment 1. Review of Operating Results …………………………………………………………………………… (1) Overview of Operating Results for FY ended March 2022 ………………………………………… (2) Overview of Financial Position for FY ended March 2022 ………………………………………… (3) Overview of Cash Flows for FY ended March 2022………………………………………………… (4) Business Outlook…………………………………………………………………………………… 2. Basic Approach to the Selection of Accounting Standards……………………………………………… 3. Consolidated Financial Statements……………………………………………………………………… (1) Consolidated Statement of Financial Position……………………………………………………… (2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income…(3) Consolidated Statement of Changes in Equity……………………………………………………… (4) Consolidated Statement of Cash Flows……………………………………………………………… (5) Notes on Condensed Consolidated Financial Statements…………………………………………… (Cautionary Notes regarding Assumptions of Going Concern) …………………………………… (Segment Information) ……………………………………………………………………………… (Other Operating Income and Other Operating Expenses) ………………………………………… (Business Combinations) …………………………………………………………………………… (Notes on Disposal Groups Classified as Held for Sale and Discontinued Operations) …………… (Per Share Information) …………………………………………………………………………… (Material Subsequent Events) ……………………………………………………………………… 2 2 4 5 5 6 7 7 9 11 12 14 14 14 18 19 21 23 23 JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-1-1. Review of Operating Results (1) Overview of Operating Results for FY ended March 2022 (General Review) In the FY ended March 2021, a recovery trend from the previous downturn was seen, fueled by both the control of COVID-19 and a rebound in economic activity. On the other hand, recent signs point to the pace of the global economy’s recovery slowing down, including a fresh wave of COVID-19 infections, skyrocketing resource prices sparked by the Russian invasion of Ukraine that broke out in February 2022, worsening raw material and component shortages, and suppressed demand due to inflation mainly in the United States. As for the exchange rate, the yen depreciated against the dollar year-on-year. As for trends among the Group’s main customer industries, the semiconductor market remained strong for both memory and logic semiconductors due to continued growth in demand for 5th generation mobile communication systems (5G), PCs and data centers. The flat-panel display market was strong throughout the year, thanks to the promotion of telework and other factors, but panel market conditions softened in the second half of the year, prompting manufacturers to adjust panel production. The biopharmaceutical market continued to see strong growth. The speed of recovery in global automobile production was hampered by production cuts by automobile manufacturers stemming from semiconductor shortages and difficulties in procuring parts for overseas production. To push its business forward amid these circumstances, JSR Group has been strengthening its business structure and management framework to realize a corporate structure imbued with sustainability and resilience, in line with the management policy for FY ending March 2025, and actively investing in R&D and businesses. As part of this, the Group has focused resources on medium and long-term growth in the Digital Solutions Business and Life Sciences Business, which are positioned as core businesses. In the Digital Solutions Business, which is centered on the Semiconductor Materials Business, the Group made Inpria Corporation (Inpria) a wholly owned subsidiary. Inpria is a world leader in the design, development, and manufacturing of metal photoresists for extreme ultraviolet (EUV) lithography. The Group also embarked on the construction of a new plant for cutting-edge lithography materials, including EUV resists, at the main Yokkaichi Plant complex. Local subsidiaries were established in Singapore and Taiwan to further bolster marketing and customer support capabilities. The local subsidiaries will aim to further expand business in key markets for semiconductor production. In the Life Sciences Business, the Group took definitive steps toward future business growth. These included the continued construction and startup of new plants in Europe and America by the Group company KBI Biopharma, Inc. (KBI) for its biologics contract development and manufacturing organization (CDMO) business; the acquisition of OcellO B.V., which possesses advanced 3D cell imaging technology, by Crown Bioscience International (Crown Bio); and the opening of the JSR Bioscience and informatics R&D center (JSR BiRD), a new research facility to spearhead new business generation. Regarding the Elastomers Business, at the Board of Directors meeting held on May 11, 2021, the Company decided to establish a new subsidiary named Japan Synthetic Rubber Spin-off Preparation Co., Ltd. that succeeds to the Company’s Elastomers Business through an absorption-type split, after which JSR will transfer all shares of Japan Synthetic Rubber Spin-off Preparation Co., Ltd. to ENEOS Corporation. Accordingly, JSR has classified the Elastomers Business as discontinued operations from the FY2021. Moreover, certain reclassifications have been made to the Consolidated Statement of Profit or Loss and related Notes on Consolidated Financial Statements for the FY ended March 2021 to conform to the presentation format for the FY ended March 2022. The share transfer to ENEOS Corporation was concluded on April 1, 2022. As a result, the Group reported revenue of 340,997 million yen (up 9.3% year-on-year), core operating profit of 43,306 million yen (up 14.3% year-on-year), operating profit of 43,760 million yen (up 27.8% year-on-year), and profit attributable to owners of parent of 37,303 million yen, compared with loss attributable to owners of parent was 55,155 million yen in the previous fiscal year. JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-2-Segment FY ended March 2021 FY ended March 2022 Change Amount Component ratio Amount Component ratio Amount Component ratio (Millions of yen) 151,420 55,197 79,123 26,259 0 312,000 108,248 203,752 48.5% 17.7% 25.4% 8.4% 0.0% 100.0% 34.7% 65.3% 165,030 72,452 90,606 12,910 0 340,997 110,688 230,310 48.4% 21.2% 26.6% 3.8% 0.0% 100.0% 32.5% 67.5% 13,610 17,255 11,483 (13,349) (0) 28,998 2,440 26,558 9.0% 31.3% 14.5% (50.8%) (99.9%) 9.3% 2.3% 13.0% FY ended March 2021 Amount Percentage of revenue 37,902 FY ended March 2022 Percentage of revenue Percentage of revenue 12.7% Amount Percentage of revenue 14.3% 5,405 12.1% 43,306 Change (55,155) (17.7%) 37,303 10.9% 92,458 – Revenue Digital Solutions Life Sciences Elastomers Plastics Other Adjustment Revenue in Japan Overseas revenue Segment Core operating profit Profit attributable to owners of parent (Business Segment Overview) The JSR Group’s business is classified into three reportable segments: Digital Solutions, Life Sciences, and Plastics. The reportable segments are positioned as shown below. previous fiscal year. The Digital Solutions Business segment experienced both increased revenue and profit compared to the In the Semiconductor Materials Business, demand was firm for materials for both memory and logic semiconductors. To solidify JSR’s position as a leader in the advanced lithography field, the Company made Inpria a subsidiary and added metal resists, a future technology, to its product portfolio of EUV photoresists. Sales of cutting-edge photoresists were particularly strong, due in part to advanced device launches by major customers. In addition, smooth product launches were achieved for packaging materials destined for major customers. An impairment loss was recorded for cleaning solutions caused by startup delays at the U.S. plant. Nevertheless, revenue and core operating profit increased year-on-year. The Display Materials Business promoted expanded sales particularly of competitive products in the China market where continued growth is expected. Expanded sales to China were seen for alignment films and insulating films for wide-screen TV LCD panels, a focus point of the business. Although sales of alignment films and insulating films were solid, the sector posted lower year-on-year revenue and core operating profit because of increased expenses arising from the Group’s business restructuring associated with the closure or scaling back of local production in Taiwan and South Korea, amid the shift of LCD production from South Korea and Taiwan to China. The Edge Computing Business suffered revenue and profit declines because of a sales decrease in near-infrared (NIR) filters. As a result, the Digital Solutions Business segment posted a core operating profit of 39,002 million yen (up 12.8% year-on-year) on revenue of 165,030 million yen (up 9.0% year-on-year). JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-3- In the Life Sciences Business, with the U.S. headquarters guiding strategies for the entire business segment, the Group worked to expand revenue primarily in the biologics contract research business and the biologics contract development and manufacturing business, in addition to JSR materials. The contract research organization (CRO) business, provided by Group company Crown Bio, and KBI are steadily increasing their pipelines. As a result, the Life Sciences Business segment posted a core operating profit of 3,168 million yen (down 9.7% year-on-year) on revenue of 72,452 million yen (up 31.3% year-on-year) In the Plastics Business, sales volume rose from the previous fiscal year, mainly on the back of demand recovery in the automobile industry, and revenue also climbed. Core operating profit was up on the recovery in sales volume. As a result, the Plastics Business segment posted a core operating profit of 5,323 million yen (up 20.2% year-on-year) on revenue of 90,606 million yen (up 14.5% year-on-year). (2) Overview of Financial Position for FY ended March 2022 At the Board of Directors meeting held on May 11, 2021, the Company decided to establish a new subsidiary named Japan Synthetic Rubber Spin-off Preparation Co., Ltd. that succeeds to part of the Company’s Elastomers Business through an absorption-type split, after which JSR will transfer all shares of Japan Synthetic Rubber Spin-off Preparation Co., Ltd. to ENEOS Corporation. On the same date, the Company concluded a share transfer agreement with ENEOS Corporation. The share transfer was executed as scheduled on April 1, 2022. As a result of the transfer decision, the assets and liabilities of the Elastomers Business have been classified as disposal groups classified as held for sale and the Elastomers Business has been classified as discontinued operations from the FY ended March 2022. 1. Asset Total assets as of March 31, 2022 amounted to 809,371 million yen, up 136,598 million yen from a year earlier. Current assets amounted 437,002 million yen, up 107,723 million yen, due to an increase in inventories, including the Elastomers Business. Non-current assets amounted 372,369 million yen, up 28,875 million yen, due to an increase in goodwill resulting from making Inpria Corporation a wholly owned subsidiary. 2. Liabilities Total liabilities amounted to 394,631 million yen, up 92,595 million yen, due to an increase in borrowings resulting from the issue of bonds. 3. Equity In terms of equity, total equity attributable to owners of parent amounted to 376,011 million yen, up 42,016 million yen from a year earlier, due to the recording of profit attributable to owners of parent. Total equity, including noncontrolling interests, amounted to 414,739 million yen, up 44,003 million yen. JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-4-(3) Overview of Cash Flows for FY ended March 2022 Cash and cash equivalents (“funds”) as of March 31, 2022 stood at 45,567 million yen, down 39,809 million yen from a year earlier. Net cash provided by operating activities amounted to 18,271 million yen, down 52,132 million yen from the previous year. The main items included profit before tax of 45,521 million yen, depreciation expenses and amortization charges of 22,482 million yen, and net increase in inventories of 46,454 million yen. Net cash used in investing activities totaled 63,117 million yen, up 10,431 million yen from the previous year. The main items were 47,614 million yen in payments for purchase of property, plant and equipment, 47,348 million yen in payments for purchase of shares of subsidiaries resulting in change in scope of consolidation, 17,203 million yen in proceeds from sale of investments, and 15,224 million yen in proceeds from sale of investments in associates. Net cash provided by financing activities totaled 22,994 million yen, up 18,698 million yen from the previous year. The main items were 39,338 million yen in net increase in short-term borrowings and 13,972 million yen in dividends paid. The Group formulates a funding plan based on the annual business plan and controls liquidity risk in consideration of an appropriate balance of direct and indirect funding, as well as short-term and long-term funding. (4) Business Outlook Uncertainties are anticipated to continue in FY ending March 2023, including changes in the international situation driven by the re-emergence of COVID-19 infections, geopolitical fluctuations including heightened tensions around the Ukraine situation, suppressed demand in countries around the world due to broad price increases, and the impact on exchange rates of interest rate policies in various countries. On the other hand, global economic growth is expected to be on a recovery track due to the widespread roll-out of COVID-19 vaccines, the expanding deployment of booster shots and use of therapeutic drugs against COVID-19, and the favorable employment conditions and asset markets in the United States that are expected to support the economy. In the current situation, the semiconductor market, JSR’s primary customer market, is expected to be sustained by digital infrastructure demand and see robust growth as an essential industry for society. Furthermore, the solid demand forecasts over the medium-to-long term for the life sciences field remain unchanged. In the global automobile market, the Plastics Business’s main customer market, the recovery trend in automobile production is predicted to continue. Amid these business conditions, JSR will continue proactive R&D and business investments in the growing Semiconductor Materials Business and Life Sciences Business toward further strengthening of its business structure and management framework in order to build an organizational structure having both resilience and sustainability. In the Digital Solutions Business, JSR Group will be focusing in the Semiconductor Materials Business as before on materials intended primarily for cutting-edge processes, with a greater emphasis on EUV photoresists for 3 nm and subsequent generation processes, to maintain and expand its share in the global lithography materials market. JSR Group will strive to expand sales of packaging materials by broadening its materials portfolio to ensure it captures semiconductor chip miniaturization and 5G demand. Although an impairment loss was sustained due to startup delays at the U.S. plant producing cleaning solutions that commenced new operations in the latter half of FY ended March 2021, the plant is already operating stably and the Group will focus on stabilizing revenue as soon as possible by expanding local production and optimizing costs. Furthermore, adoption at the U.S. plant will be leveraged to expand the cleaning solution business globally as a Group business. In the Display Materials Business, having steadily implemented structural reforms to address changes in customer industries, JSR Group will push for greater sales, especially of its competitive alignment films and insulating films for wide-screen TV LCD panels in the China market, where continued growth in the LCD panel market is anticipated. JSR Group will work to expand the Edge Computing Business by, for example, further expanding sales of NIR filters used chiefly in small smartphone cameras. In the Life Sciences Business, the Group will strive to further increase revenue and profitability, with a focus on gaining more new contracts in the CDMO business provided by KBI and Selexis, expanding customer bases by widening pipelines (upfront contracts) and improving operational efficiencies, and expanding competitive services in Crown Bio’s CRO business. KBI will work to increase revenue by leveraging expanded capacity at its North Carolina, U.S., and Geneva, Switzerland, facilities, where commercial production is expected this fiscal year. Group unification will drive strong business expansion, through the combination of greater global adoption of diagnostic reagent materials and bioprocess materials, enhancement to the diagnostic reagent business of Medical & Biological Laboratories (MBL), and research activities at JSR BiRD and the JSR-Keio University JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-5-Medical and Chemical Innovation Center (JKiC). For the FY ending March 2023, JSR forecasts revenue of 410,000 million yen (up 20.2 percent year-on-year), core operating profit of 57,500 million yen (up 32.8 percent year-on-year), operating profit of 57,500 million yen (up 31.4 percent year-on-year), and profit for the year attributable to owners of parent of 46,000 million yen (up 23.3 percent year-on-year). The forecast assumes an exchange rate of 116 yen per U.S. dollar. Actual business performance may vary substantially due to future developments in social conditions and economic conditions. JSR will promptly disclose revisions to the earnings forecast, should they become necessary. (Basic Policy on Profit Allocation and Dividends for FY ended March 31, 2022 and FY ending March 31, 2023) With respect to profit appropriation, the Company regards business growth over the long term as its top priority. To generate sustainable long-term growth, JSR strives to increase its competitiveness by developing new businesses through the reinforcement of research and development activities. The Company determines returns to shareholders by taking into account business performance and medium-term and long-term demand for funds, while giving consideration to a balance between returning profits to shareholders and retaining earnings necessary for future business advancement. The Company plans to pay a year-end dividend of 35.00 yen per share in the interest of continuing stable dividends. Including the interim dividend already paid, the total annual dividend for FY ended March 2022 will be 70.00 yen per share. With regard to the dividend for the next fiscal year (FY ending March 2023), JSR plans to pay 70.00 yen per share annually, the same amount as for FY ended March 2022, in consideration of the balance between returns to shareholders and retaining earnings for the Company’s future growth, with the objective of sustainably improving the Company’s business performance from a long-term perspective. 2. Basic Approach to the Selection of Accounting Standards JSR Group has voluntarily adopted International Financial Reporting Standards (IFRS) starting from FY ended March 2018 to improve convenience and the international comparability of financial information in the capital market. JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-6-3.Consolidated Financial Statements (1) Consolidated Statement of Financial Position (Millions of yen) As of March 31, 2021 As of March 31, 2022 Assets Current assets Cash and cash equivalents Trade and other receivables Inventories Other financial assets Other current assets Subtotal Assets related to disposal group classified as held for sale Total current assets Non-current assets Property, plant and equipment Goodwill Other intangible assets Investments accounted for using equity method Retirement benefit asset Other financial assets Other non-current assets Deferred tax assets Total non-current assets Total assets 85,377 125,292 104,862 1,933 11,815 329,279 – 329,279 170,428 58,633 15,014 21,015 4,905 49,751 3,598 20,150 343,494 672,773 45,567 76,106 104,934 1,289 17,807 245,704 191,298 437,002 159,539 117,640 24,571 2,984 5,192 31,408 2,830 28,205 372,369 809,371 JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-7- Liabilities and equity Liabilities Current liabilities Trade and other payables Contract liabilities Bonds and borrowings Income taxes payable Provisions Other financial liabilities Other current liabilities Subtotal Liabilities related to disposal group classified as held for sale Total current liabilities Non-current liabilities Contract liabilities Bonds and borrowings Retirement benefit liability Provisions Other financial liabilities Other non-current liabilities Deferred tax liabilities Total non-current liabilities Total liabilities Equity Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Total equity attributable to owners of parent Non-controlling interests Total equity Total liabilities and equity As of March 31, 2021 As of March 31, 2022 (Millions of yen) 100,797 9,368 37,872 4,866 1,837 3,874 10,196 168,810 － 168,810 7,861 81,406 16,434 – 19,314 5,136 3,077 133,227 302,036 23,370 11,562 302,916 (19,202) 15,348 333,995 36,741 370,736 672,773 63,548 12,824 69,170 13,479 2,718 3,489 7,461 172,689 115,576 288,265 11,582 48,737 10,278 8,033 17,795 4,809 5,133 106,366 394,631 23,370 11,799 333,335 (18,874) 26,381 376,011 38,728 414,739 809,371 JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-8-(2) Consolidated Statement of Profit or Loss (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Continuing operations Revenue Cost of sales Gross profit Selling, general and administrative expenses Other operating income Other operating expenses Share of profit of investments accounted for using equity method Operating profit Finance income Finance costs Profit before tax Income taxes Profit from continuing operations Discontinued operations Profit (loss) from discontinued operations Profit (loss) Profit(loss)attributable to: Owners of parent Non-controlling interests Total Earnings per share (loss) Basic earnings per share (loss) (Yen) Continuing operations Discontinued operations Diluted earnings per share (loss) (Yen) Continuing operations Discontinued operations 312,000 (198,192) 113,808 (75,205) 1,601 (5,302) (669) 34,233 162 (1,084) 33,310 (7,990) 25,321 (79,851) (54,530) (55,155) 625 (54,530) (256.73) 108.65 (365.38) (256.34) 108.47 (364.81) 340,997 (214,937) 126,060 (87,330) 10,819 (5,952) 163 43,760 3,415 (1,655) 45,521 (8,370) 37,151 2,289 39,440 37,303 2,136 39,440 173.49 162.52 10.97 173.26 162.30 10.96 JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-9- Consolidated Statement of Comprehensive Income (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Profit (loss) Other comprehensive income Items that will not be reclassified to profit or loss Net change in financial assets measured at fair value through other comprehensive income Remeasurements of defined benefit liabilities (assets) Share of other comprehensive income of entities accounted for using equity method Items that may be reclassified to profit or loss Net change in fair value of cash flow hedges Exchange differences on translation of foreign operations Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income, net of tax Total comprehensive income Comprehensive income attributable to: Owners of parent Non-controlling interests Total (54,530) 5,101 1,438 68 28 65 6,167 12,867 (41,663) (43,458) 1,795 (41,663) 39,440 1,141 281 (2) 34 17,573 640 19,665 59,105 56,124 2,981 59,105 JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-10-(3) Consolidated Statement of Changes in Equity Balance at March 31 ,2021 23,370 11,562 302,916 (19,202) 15,348 333,995 36,741 370,736 Fiscal year ended March 31, 2021 Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity (Millions of yen) Non-controlling interests Total Total equity 23,370 18,242 369,102 (55,155) (19,547) 5,626 396,793 (55,155) 40,619 437,412 (54,530) 625 11,697 11,697 1,170 12,867 – (55,155) 11,697 (43,458) 1,795 (41,663) 266 (9) 251 251 (6) (18) (12,888) 2,399 (2,399) (12,888) 62 (479) (13,368) 62 – – – – (6,656) (541) 460 (82) 5 (77) – (6,679) (11,031) 346 (1,975) (19,339) (5,673) (25,012) (27) (6,682) (5,198) (11,881) Fiscal year ended March 31, 2022 Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Non-controlling interests Total Total equity 23,370 11,562 302,916 37,303 (19,202) 15,348 333,995 37,303 36,741 2,136 370,736 39,440 (Millions of yen) – 226 (17) 34 18,821 18,821 845 19,665 37,303 18,821 56,124 2,981 59,105 248 (32) 441 441 (13,975) (13,975) 63 (1,127) (15,102) 63 7,663 (7,663) – 34 133 167 – – – – 80 – 79 – – Balance at April 1, 2020 Profit (loss) Other comprehensive income Total comprehensive income Share-based remuneration transactions Dividends Changes in treasury shares Transfer from other components of equity to retained earnings Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation Changes in non-controlling interests Other movements Total transactions with owners, etc. Balance at April 1, 2021 Profit Other comprehensive income Total comprehensive income Share-based remuneration transactions Dividends Changes in treasury shares Transfer from other components of equity to retained earnings Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation Changes in non-controlling interests Other movements Total transactions with owners, etc. (6) (573) (92) (671) (671) – 237 (6,884) 327 (7,788) (14,108) (994) (15,102) Balance at March 31, 2022 23,370 11,799 333,335 (18,874) 26,381 376,011 38,728 414,739 JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-11-(4) Consolidated Statement of Cash Flows (Millions of yen) Fiscal year ended March 31, 2022 45,521 3,371 22,482 (1,782) 2,535 Fiscal year ended March 31, 2021 33,310 (95,740) 29,477 (903) 1,743 Cash flows from operating activities Profit before tax Profit(loss) before tax from discontinued operations Depreciation and amortization Interest and dividend income Interest expenses Share of loss (profit) of investments accounted for using equity method Impairment loss 5,650 4,132 (163) Loss (gain) on step acquisitions Decrease (increase) in trade and other receivables Decrease (increase) in inventories Increase in trade and other payables Other Dividends received Interest received Interest paid Income taxes refund Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Net decrease (increase) in time deposits Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of investments Proceeds from sale of investments Purchase of shares of subsidiaries resulting in change in scope of consolidation Payments for sales of shares of subsidiaries resulting in change in scope of consolidation Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation Proceeds from sale of investments in associates Payments for loans receivable Collection of loans receivable Other Net cash provided by (used in) investing activities Cash flows from financing activities Net increase (decrease) in short-term borrowings Net increase in commercial papers Repayments of long-term borrowings Proceeds from long-term borrowings Proceeds from issuance of bonds Payments for purchase of treasury shares Dividends paid Dividends paid to non-controlling interests Purchase of shares of subsidiaries not resulting in change in scope of consolidation Proceeds from sale of shares of subsidiaries not resulting in change in scope of consolidation Repayments of lease obligations Other 79,575 － (13,009) 9,807 11,772 15,001 1,076 201 (1,605) 958 (5,393) 70,403 2,145 (55,205) 284 (1,606) 2,016 － － 498 － (567) 627 (878) (52,687) (2,424) － (11,428) 11,320 34,836 (3) (12,887) (464) (11,717) － (3,264) 327 (7,467) (12,532) (46,454) 10,066 8,884 1,801 367 (2,300) － (11,706) 18,271 397 (47,614) 778 (1,652) 17,203 (47,348) (45) － 15,224 (471) 811 (400) (63,117) 39,338 10,003 (15,338) 7,863 － (4) (13,972) (1,127) － 160 (4,348) 419 JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-12-Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents included in assets related to disposal groups classified as held for sale Cash and cash equivalents at end of period 4,297 1,432 23,445 61,931 － 85,377 22,994 (1,534) (23,386) 85,377 (16,424) 45,567 JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-13-(5) Notes on Condensed Consolidated Financial Statements (Cautionary Notes regarding Assumptions of Going Concern) Not applicable (Segment Information) (1) Outline of Reportable Segments JSR Group reportable segments are components of the Group for which separate financial information is available. The Board of Directors determines the basis of business segments that are subject to regular reviews for decisions on the allocation of managerial resources and the evaluation of business results. The Group has established divisions by product at its head office. Each division formulates comprehensive domestic and overseas strategies for its products and conducts business activities according to the strategies. Core Group companies take the initiative in working out comprehensive domestic and overseas strategies and conduct business activities according to the strategies. Thus, the JSR Group’s businesses consist of business segments by product based on divisions and core Group companies. JSR Group conventionally had four reportable segments: Digital Solutions Business, which conducts mainly the manufacture and sale of semiconductor materials, display materials, and products related to edge computing; Life Sciences Business; Elastomers Business, which consists mainly of the manufacture and sale of general-purpose synthetic rubber products for automobile tires, functional special synthetic rubber for automobile components, thermoplastic elastomers for modifying plastics, and synthetic rubber latex for coated paper; and Plastics Business, which engages mainly in the manufacture and sale of ABS and other resins for automobiles, office equipment, and amusement applications. As of the First Quarter of FY ending March 2022, JSR Group has three reportable segments: Digital Solutions Business, Life Sciences Business, and Plastics Business. This change is the result of JSR’s decision to establish a new subsidiary named Japan Synthetic Rubber Spin-off Preparation Co., Ltd. that succeeds to part of the Company’s Elastomers Business through an absorption-type split, after which JSR will transfer all shares of Japan Synthetic Rubber Spin-off Preparation Co., Ltd. to ENEOS Corporation. With the conclusion of a stock transfer agreement with ENEOS Corporation dated May 11, 2021, JSR has classified the Elastomers Business as discontinued operations. The portion of the Elastomers Business not succeeded to Japan Synthetic Rubber Spin-off Preparation Co., Ltd. by the Company has been reclassified to the Other segment because of the decrease in its monetary importance. The Digital Solutions Business is a reportable segment comprising multiple segments based on the nature of the products and services, the nature of production processes, and similarity in markets and other economic characteristics. The accounting methods for reportable segments are the same as the methods adopted for preparation of consolidated financial statements. The Group has classified Elastomers Business as discontinued operations from the current fiscal year, and segment information presents only amounts for continuing operations excluding Elastomers Business. Main Products in Each Business Segment Business segment Main products Digital Solutions Business Life Sciences Business Lithography materials (photoresists, multilayer materials); CMP materials; mounting materials; etc. Materials for color LCDs; Materials for OLED; etc. Heat-resistant transparent resins and functional films; high-functional UV curable resins; photo fabrication; etc. Diagnostic and research reagents and similar materials; bio-process materials; services to support drug development, etc. Plastics Business Synthetic resins including ABS resins, AES resins, AS resins, and ASA resins JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-14-(2) Reportable Segment Revenues, Profits and Losses The following information pertains to the Group’s reportable segments. Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021) Reportable Segment Digital Solutions Life Sciences Plastics Other [Note 1] Total Adjustment [Note 2] Consolidated (Unit: Millions of yen) 151,420 55,197 79,123 26,259 311,999 0 312,000 34,568 3,510 4,430 1,627 44,135 (6,233) 37,902 164,777 158,393 76,569 10,778 410,516 262,256 672,773 7,525 6,236 2,631 748 17,140 1,934 19,074 1,408 940 – 2,348 2,348 13,542 18,566 3,511 645 36,264 3,923 40,188 – – Note 1: The Other segment is a business segment not contained in the reportable segments. It includes the purchase and sale of chemicals and other businesses. Note 2: The operating profit or operating loss downward adjustment of 6,233 million yen contains company-wide profits and losses not allocated to the reportable segments. The adjustment amount in the segment assets line are corporate assets not allocated to any reportable segment. Corporate assets mainly include investment of surplus funds (deposits, cash equivalents, and securities (debt instrument assets)) and long-term investment funds (securities (equity instrument assets)) by the parent company. Note 3: Segment profit (loss) is presented as core operating profit after deducting non-recurring profit (loss) arising from business restructuring and other non-recurring factors from operating profit. Revenue from external customers Segment profit (loss) (Core operating profit) [Note 3] Segment assets Other items and Depreciation expenses depreciation charges Impairment losses Capital expenditures JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-15-Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022) (Unit: Millions of yen) Reportable Segment Life Sciences Life Sciences Plastics Other [Note 1] Total Adjustment [Note 2] Consolidated 165,030 72,452 90,606 12,910 340,997 0 340,997 39,002 3,168 5,323 987 48,480 (5,174) 43,306 241,824 210,371 75,996 11,528 539,719 269,652 809,371 9,394 8,021 2,753 627 20,795 1,687 22,482 3,228 3,228 3,228 17,192 19,692 2,816 39,960 1,891 41,851 – 260 – – – Revenue from external customers Segment profit (loss) (Core operating profit) [Note 3] Segment assets Other items and Depreciation expenses depreciation charges Impairment losses Capital expenditures Note 1: The Other segment is a business segment not contained in the reportable segments. It includes the purchase and sale of chemicals and other businesses. Note 2: The operating profit or operating loss downward adjustment of 5,174 million yen contains company-wide profits and losses not allocated to the reportable segments. The adjustment amount in the segment assets line are corporate assets not allocated to any reportable segment. Corporate assets mainly include investment of surplus funds (deposits, cash equivalents, and securities (debt instrument assets)) and long-term investment funds (securities (equity instrument assets)) by the parent company. Note 3: Segment profit (loss) is presented as core operating profit after deducting non-recurring profit (loss) arising from business restructuring and other non-recurring factors from operating profit. JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-16- 43,306 1,348 332 – (1,411) – 186 43,760 3,415 (1,655) 45,521 110,688 65,757 61,253 103,300 Adjustments to reconcile segment profit to quarterly profit before tax are as follows. (Millions of yen) Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021) Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022) Segment profit Reversal of impairment loss Profit from sales of shares of subsidiaries and affiliated companies Business restructuring expenses Loss on valuation of investments in subsidiaries Special retirement benefits Others Operating profit Finance income Finance costs Profit before tax Japan China U.S. Other regions (3) Information on Products and Services Information on products and services is omitted, since similar information is stated in (1) Outline of Reportable Segments. (4) Information by Region The following is a breakdown by region of revenue and non-current assets. Revenue from external customers Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021) Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022) (Millions of yen) (Millions of yen) Note: Revenue is divided into countries or regions based on the locations of customers. Property, plant and equipment Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021) (Millions of yen) Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022) (Millions of yen) Japan U.S. Other regions 80,863 55,492 23,183 159,539 Note: The presentation of non-current assets has been restricted to property, plant, and equipment to avoid Total unreasonable preparation costs (5) Information on Major Customers Information on major customers is omitted, since no single external customer accounts for more than 10 percent of the Group’s revenue in terms of revenue through transactions with a single external customer. 37,902 – – (3,508) – (160) – 34,233 162 (1,084) 33,310 108,248 55,459 55,213 93,079 92,718 40,319 37,391 170,428 JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-17-(Other Operating Income and Other Operating Expenses) (Other Operating Income) Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021) No important transactions Fiscal year ended March 31, 2021 (April 1, 2021 to March 31, 2022) (Reversal of impairment loss) The Company recorded in “Other Operating Income” 1,348 million yen as reversal of impairment loss in the Display Materials Business. (Gain on step acquisitions) The Company recorded in “Other Operating Income” 7,467 million yen as gain on revaluation pertaining to the additional acquisition of Inpria Corporation shares. (Other Operating Expenses) Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021) (Business Restructuring Expenses) The Company recorded in “Other Operating Expenses” 2,458 million yen for expenses pertaining to restructuring and related measures in Display Materials Business. The main items were impairment losses for property, plant, and equipment and special retirement benefits. Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022) (Impairment Loss) The Company recorded in “Other Operating Expenses” 3,228 million yen as impairment loss in the Semiconductor Materials Business. (Loss on valuation of investments in subsidiaries) The Company recorded in “Other Operating Expenses” 1,411 million yen as loss on valuation of investments in unconsolidated subsidiaries. JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-18-(Business Combinations) (Wholly Owned Subsidiary through Acquisition of Shares of Inpria Corporation) (1) Outline of the Business Combination On October 29, 2021, our company acquired an additional 78.7% stake in Inpria Corporation (Location: Oregon, USA, CEO: Andrew Grenville, “Inpria”) which develops and manufactures metal resists for EUV, making it a wholly owned subsidiary of our company. ① Name and Business of the Acquired Company Name Inpria Corporation Business Development and manufacturing of metal based EUV resists ② Date of Acquisition October 29, 2021 ③ Percentage of Voting Rights Acquired ④ Method of Acquiring Control Acquisition of Shares for Cash ⑤ Purpose of Business Combination Percentage of Voting Rights Held Immediately before the Date of Acquisition 21.3% Percentage of Voting Rights Additionally Acquired on the Date of Acquisition 78.7% Percentage of Voting Rights at Date of Acquisition 100.0% Inpria has been working on the development of metal based EUV resists since its establishment in 2007. Its main product, which is composed primarily of tin oxide, has achieved the world’s highest resolution using EUV exposure systems. In addition, the metal-based resist is superior to conventional resists in terms of pattern transfer performance during dry etching and is highly suitable for semiconductor mass production processes. With the completion of this acquisition, JSR will add metal resists, a promising future technology, to its photoresist product portfolio, which is one of its strengths, and aims to seamlessly provide value as an advanced materials company that supports the further shrinking technologies of its customers. (2) Fair value of Consideration Paid, Assets Acquired, and Liabilities Assumed at the Date of Acquisition Amount Millions of yen Fair value of equity interests held immediately prior to the acquisition date Cash Total Fair value of consideration paid Current Assets Cash and cash equivalents Trade and other receivables Other current assets Non-current assets Property, plant and equipment Other non-current assets* Acquired assets Current Asset Current liabilities Trade and other payables Other current liabilities Non-current liabilities Deferred tax liabilities Other non-current liabilities Total liability assumed Goodwill *The item allocated to other non-current assets is 8,218 million yen for technology assets. The fair value of the non-current assets was calculated using the excess earnings method valuation model. 9,447 46,654 56,101 1,043 151 151 357 8,218 9 9,929 572 76 2,219 9 2,877 49,049 JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-19-Measurements with the valuation model are based on such assumptions as future sales and technology obsolescence rates. The valuation gain recognized as a result of the remeasurement of equity interests held by JSR immediately prior to the date of acquisition at its fair value on the date of acquisition of control was 7,467 million yen and is accounted for in the Other operating income line item in the Condensed Quarterly Consolidated Statement of Profit or Loss. Acquisition-related costs pertaining to the business combination were 123 million yen. The amount incurred in the Third Quarter of FY ending March 2022 is accounted for as an expense in the Selling, general and administrative line item in the Condensed Quarterly Consolidated Statement of Profit or Loss. Goodwill is primarily composed of expected future earning power. The goodwill cannot be reported as a deductible for tax purposes. (3) Effect of Business Combination on Cash Flows Cash and cash equivalents paid for acquisition Cash and cash equivalents held by the acquired company at the time of acquisition Purchase of shares of subsidiaries resulting in change in scope of consolidation (4) Impact on our Group’s Performance Amount Millions of yen 46,654 1,043 45,611 The impact on sales revenue and quarterly profit arising from Inpria included in the Condensed Consolidated Statements of Profit or Loss and the impact on sales revenue and quarterly profit assuming that the business combination is carried out at the beginning of the period is immaterial. JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-20-(Notes on Disposal Groups Classified as Held for Sale and Discontinued Operations) 1. Disposal Groups Classified as Held for Sale (The Separation of Elastomers Business and Transfer of Shares of Successor Company) At the Board of Directors meeting held on May 11, 2021, the Company decided to establish a new subsidiary named Japan Synthetic Rubber Spin-off Preparation Co., Ltd. that succeeds to part of the Company’s Elastomers Business through an absorption-type split, after which JSR will transfer all shares of Japan Synthetic Rubber Spin-off Preparation Co., Ltd. to ENEOS Corporation. On the same date, the Company concluded a share transfer agreement with ENEOS Corporation. The share transfer was executed as scheduled on April 1, 2022. As a result of the transfer decision, the assets and liabilities of the Elastomers Business have been classified as disposal groups classified as held for sale and the Elastomers Business has been classified as discontinued operations from the FY ended March 2022. The following are the assets and liabilities related to disposal groups classified as held for sale. (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Assets related classified as held for sale to disposal groups Cash and cash equivalents Trade and other receivables Inventories Other financial assets (current assets) Other current assets Property, plant and equipment Other intangible assets Investments accounted for using equity method Other assets) financial assets (non-current Other non-current assets Deferred tax assets Total assets Liabilities related to disposal groups classified as held for sale Trade and other payables and borrowings (current Income taxes payable financial liabilities (current Bonds liabilities) Other liabilities) Other current liabilities Bonds and borrowings liabilities) Retirement benefit liabilities (non-current Other financial liabilities (non-current liabilities) － － － － － － － － － － － － － － － － － － － － 16,424 66,318 50,115 364 3,145 46,466 1,740 1,528 3,920 70 1,208 191,298 51,238 21,500 333 807 2,115 28,838 5,765 4,336 JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-21- Other non-current liabilities Deferred tax liabilities Total liabilities Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 － － － 644 0 115,576 As of March 31, 2022, other components of equity pertaining to the assets and liabilities related to disposal groups classified as held for sale amounted to 669 million yen (net of tax). 2. Discontinued Operations As noted in 1. Disposal Groups Classified as Held for Sale above, the Elastomers Business has been classified as discontinued operations. (1) Profit or Loss from Discontinued Operations The following is the profit or loss from discontinued operations. Revenue Cost of sales and expenses Profit (loss) before tax from discontinued operations Income tax expenses Profit (loss) from discontinued operations (Millions of yen) Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021) Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022) 134,609 (230,350) (95,740) 15,890 (79,851) 189,318 (185,947) 3,371 (1,082) 2,289 *Included in the cost of sales and expenses for the FY ended March 2022 is a loss of 1,495 million yen recognized due to the measurement, at fair value less costs to sell, of assets and/or disposal groups composed of discontinued operations. The fair value was calculated primarily on the basis of the value of the transferred business. The fair value hierarchy is classified as Level 3. Refer to the Consolidated Statement of Profit or Loss for the basic and diluted earnings per share (loss) pertaining to discontinued operations. (2) Cash Flows Arising from Discontinued Operations The following are cash flows from discontinued operations. (Millions of yen) Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021) Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022) 21,429 (15,054) (6,006) (460) 12,261 8,088 1,205 1,107 Cash flows from operating activities Cash flows from investing activities* Cash flows from financing activities Total Cash flows from operating activities *Included in the cash flows from investing activities for the FY ended March 2021 is a loss of 1,176 million yen for payments for sale of shares of subsidiaries resulting in change in scope of consolidation (cash and cash equivalents of the disposed subsidiaries). 22,661 (90) JSR (4185） Consolidated Financial Results for the Fiscal Year ended March 2022-22-The following is the basic earnings per share and the basis of calculation and the diluted earnings per share and the Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021) Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022) (Per Share Information) basis of calculation. (1) Basic earnings per share (Loss) Continuing operations Discontinued operations (Basis of calculation) Profit attributable to owners of parent (Millions of yen) Continuing operations Discontinued operations Average number of shares outstanding during the year (1,000 shares) (2) Diluted earnings per share (Loss) Continuing operations Discontinued operations (Basis of calculation) Increase in common stock due to stock options (1,000 shares) Diluted average number of shares outstanding during the year (1,000 shares) (256.73) 108.65 (365.38) (55,155) 23,341 (78,497) 214,838 (256.34) 108.47 (364.81) 331 215,169 173.49 162.52 10.97 37,303 34,944 2,360 215,016 173.26 162.30 10.96 285 215,301 review.(Material Subsequent Events) On April 1, 2022, the Company transferred the Elastomers Business to Japan Synthetic Rubber Spin-off Preparation Co., Ltd. (Successor Company), which was established on May 12, 2021 as a subsidiary of the company, by the absorption-type company split. Based on the share transfer agreement with ENEOS Corporation executed on May 11, 2021, the transfer of all shares of the Successor Company to ENEOS Corporation was completed. Accordingly, the Company lost control of the successor company.