大日本塗料（4611） – [Delayed] Summary of Consolidated Financial Results for the Year Ended March 31,2022(Based on Japanese GAAP)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. May 11, 2022 Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Under Japanese GAAP) Company name: Dai Nippon Toryo Co., Ltd. Listing: Securities code: URL: Representative: Inquiries: Tokyo Stock Exchange 4611 https://www.dnt.co.jp/english/ Takayuki Sato, President Tatsuhiko Nagano, Director, Managing Executive Officer General Manager, Administrative Division +81-6-6266-3102 Telephone: Scheduled date of ordinary general meeting of shareholders: Scheduled date to commence dividend payments: Scheduled date to file annual securities report: Preparation of supplementary material on financial results: Holding of financial results briefing: June 29, 2022 June 30, 2022 June 29, 2022 Yes Yes (for institutional investors and analysts) (Yen amounts are rounded down to millions, 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.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen % Millions of yen % Millions of yen % Millions of yen % 66,948 63,160 6.0 – 3,183 12.5 2,828 (49.0) 3,465 6.0 3,268 (43.5) 2,031 3.2 1,968 (46.2) Note: Comprehensive income For the fiscal year ended March 31, 2022: For the fiscal year ended March 31, 2021: ¥1,895 million ¥7,014 million [(73.0)%] [636.6%] Basic earnings per share Diluted earnings per share Return on equity Ratio of ordinary profit to total assets Ratio of operating profit to net sales Fiscal year ended March 31, 2022 March 31, 2021 Yen 71.74 69.55 Yen 71.10 68.96 % 4.2 4.4 % 4.0 4.0 % 4.8 4.5 Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended March 31, 2022: For the fiscal year ended March 31, 2021: ¥(2) million ¥(2) million Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the current consolidated fiscal year, and only net sales out of each figure for the fiscal year ended March 31, 2021, is the figure after retrospectively applying the accounting standard and relevant ASBJ regulations. Therefore, the year-on-year change in net sales is not stated in the fiscal year ended March 31, 2021. (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share Millions of yen Millions of yen 87,705 85,765 51,991 50,865 % 55.9 56.0 Yen 1,730.00 1,698.23 As of March 31, 2022: As of March 31, 2021: ¥49,015 million ¥48,069 million (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen Millions of yen Millions of yen Millions of yen 3,364 3,641 (966) (2,325) (2,841) 499 6,479 6,736 Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Total cash dividends (Total) Payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Yen Yen Yen Yen Yen Millions of yen % 0.00 0.00 0.00 – – – 25.00 25.00 25.00 25.00 707 708 35.9 34.8 % 1.6 1.5 25.00 25.00 35.4 3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to Net sales Operating profit Ordinary profit (Percentages indicate year-on-year changes.) Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 34,100 3.9 1,250 (28.4) 1,370 (21.8) 750 (18.6) 26.47 70,800 5.8 3,300 3.7 3,550 2.4 2,000 (1.6) 70.59 As of March 31, 2022 March 31, 2021 Reference: Equity 2. Cash dividends Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ending March 31, 2023 (Forecast) – – – March 31, 2023) Six months ending September 30, 2022 (Cumulative) Fiscal year ending March 31, 2023 * Notes (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None (2) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None Note: For details, see “4. Consolidated Financial Statements and Major Notes, (5) Notes on consolidated financial statements (Changes in accounting policies)” on page 14 of the attached materials. (3) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) (ii) Number of treasury shares at the end of the period As of March 31, 2022 As of March 31, 2021 As of March 31, 2022 As of March 31, 2021 (iii) Average number of shares outstanding during the period Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 29,710,678 shares 29,710,678 shares 1,377,931 shares 1,405,329 shares 28,322,840 shares 28,302,780 shares [Reference] Overview of non-consolidated financial results 1. 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 profit Ordinary profit Profit Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen % Millions of yen % Millions of yen % Millions of yen % 39,849 37,641 5.9 – 825 761 8.5 (45.1) 2,082 (19.1) 2,572 (20.2) 1,504 (26.1) 2,036 (16.6) Fiscal year ended March 31, 2022 March 31, 2021 Basic earnings per share Diluted earnings per share Yen 53.13 71.97 Yen 52.66 71.36 Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the current fiscal year, and only net sales out of each figure for the fiscal year ended March 31, 2021, is the figure after retrospectively applying the accounting standard and relevant ASBJ regulations. Therefore, the year-on-year change in net sales is not stated in the fiscal year ended March 31, 2021. (2) Non-consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share As of March 31, 2022 March 31, 2021 Reference: Equity Millions of yen Millions of yen 67,196 65,419 33,326 32,375 % 49.2 49.1 Yen 1,167.66 1,135.27 As of March 31, 2022: As of March 31, 2021: ¥33,083 million ¥32,134 million * Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation. * Proper use of earnings forecasts, and other special matters The earnings forecasts and other forward-looking statements in these materials are based on information currently available to the Company and on certain assumptions deemed reasonable, and the Company does not intend to guarantee their achievement. Furthermore, actual results, etc. may differ significantly due to various factors. Please refer to “1. Summary of Business Results, Etc., (4) Future Prospects” on page 4 of the attached materials for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof. ○ Table of Contents of Attached Materials Index 1. Summary of Business Results, Etc. ……………………………………………………………………………………………. 2 (1) Summary of Business Results for Current Fiscal Year …………………………………………………………….. 2 (2) Summary of Financial Position for Current Fiscal Year …………………………………………………………… 3 (3) Summary of Cash Flows for Current Fiscal Year ……………………………………………………………………. 3 (4) Future Prospects ………………………………………………………………………………………………………………… 4 (5) Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years ……………. 4 2. Status of the Corporate Group …………………………………………………………………………………………………… 6 3. Basic Approach to the Selection of Accounting Standards …………………………………………………………….. 6 4. Consolidated Financial Statements and Major Notes ……………………………………………………………………. 7 (1) Consolidated balance sheet …………………………………………………………………………………………………. 7 (2) Consolidated statement of income and consolidated statement of comprehensive income …………… 9 (Consolidated statement of income) ……………………………………………………………………………………… 9 (Consolidated statement of comprehensive income) ……………………………………………………………… 10 (3) Consolidated statement of changes in equity ……………………………………………………………………….. 11 (4) Consolidated statement of cash flows …………………………………………………………………………………. 13 (5) Notes on consolidated financial statements ………………………………………………………………………….. 15 (Notes on the premise of a going concern) …………………………………………………………………………… 15 (Changes in accounting policies) ………………………………………………………………………………………… 15 (Segment information, etc.) ……………………………………………………………………………………………….. 16 (Per share information) ……………………………………………………………………………………………………… 21 (Significant subsequent events) ………………………………………………………………………………………….. 21 5. Non-consolidated Financial Statements and Major Notes ……………………………………………………………. 22 (1) Balance sheet …………………………………………………………………………………………………………………… 22 (2) Statement of income …………………………………………………………………………………………………………. 24 (3) Statement of changes in equity …………………………………………………………………………………………… 25 6. Other ……………………………………………………………………………………………………………………………………. 27 Change of Officers (Effective June 29, 2022) ………………………………………………………………………. 27 – 1 – 1. Summary of Business Results, Etc. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the current fiscal year, and comparative analysis has been performed using retroactively adjusted figures. (1) Summary of Business Results for Current Fiscal Year During the consolidated fiscal year under review, the Japanese economy remained in a severe situation, even as economic activities began to normalize thanks to factors including the lifting of the state of emergency declared due to COVID-19. This was due to the impact of factors such as the outbreak of new strains of the COVID-19, a shortage of semiconductors, and soaring raw materials prices. Given the concerns about disruptions of the global supply chain and further increases in raw materials prices caused by the tense situation in Ukraine and other factors, the outlook is becoming increasingly uncertain. As for the Group’s business results, net sales were ¥66,948 million (a 6.0% year-on-year increase) thanks to an increase in demand, especially in the domestic coatings business. On the profit side, although the sharp rise in raw materials prices had a strong impact, the increase in net sales resulted in an operating income of ¥3,183 million (a ¥354 million year-on-year increase), ordinary income of ¥3,465 million (a ¥196 million year-on-year increase), and profit attributable to owners of parent of ¥2,031 million (a ¥63 million year-on-year increase). The business results by segment were as follows. [Domestic coatings business] In the protective products field, net sales increased year on year thanks to successful efforts to grow sales of new functional products and to develop new markets. In the industrial products field, although net sales increased year on year, demand remained sluggish due to the global shortage of semiconductors beginning in the second half of the year. On the profit side, profits increased year on year due to higher net sales, despite the increasing impact of higher raw materials prices. As a result, net sales were ¥49,622 million (a 5.1% year-on-year increase), and operating income was ¥1,990 million (a ¥358 million year-on-year increase). [Overseas coatings business] In the Southeast Asian market, sales in the automotive components field increased, leading to a year-on-year increase of net sales. In the Chinese market, net sales increased year on year as demand recovered moderately from the overall decline in demand due to COVID-19. In the North and Central American market, net sales were higher year on year due to increased sales in the automotive field in the first half of the year. While net sales in the segment as a whole increased year on year, sales in the industrial coatings field were sluggish due to the growing impact of the global semiconductor shortage beginning in the second half of the year. On the profit side, profits increased slightly year on year due to the impact of higher raw materials prices. As a result, net sales were ¥6,939 million (a 26.5% year-on-year increase), and operating income was ¥236 million (a ¥15 million year-on-year increase). [Lighting business] In the commercial LED lighting field, demand in the Tokyo metropolitan area remained sluggish. However, net sales increased year on year due in part to the acquisition of new customers for new UV sterilization products in the UV lighting field and an increase in orders for lighting installations. On the profit side, profits increased year on year due to higher net sales. – 2 – As a result, net sales were ¥7,656 million (a 5.8% year-on-year increase), and operating income was ¥577 million (a ¥97 million year-on-year increase). [Fluorescent color material business] In the pigment field, there was a gradual recovery from the drop in demand in overseas markets due the impact of COVID-19, leading to a year-on-year increase in net sales. On the profit side, profits declined year on year due to a decrease in demand for high value-added products in the domestic market as well as the impact of soaring raw material prices. As a result, net sales were ¥1,223 million (a 9.5% year-on-year increase), and operating income was ¥46 million (a ¥8 million year-on-year decrease). [Other businesses] Net sales were ¥1,507 million (a 27.7% year-on-year decrease), and operating income was ¥114 million (a ¥142 million year-on-year decrease). (2) Summary of Financial Position for Current Fiscal Year Total assets at the end of the current consolidated fiscal year were ¥87,705 million, an increase of ¥1,940 million from the end of the previous consolidated fiscal year. Current assets increased by ¥1,699 million to ¥34,773 million from the end of the previous consolidated fiscal year. This was mainly due to a decrease in cash and deposits of ¥205 million, an increase in notes and accounts receivable – trade, and contract assets of ¥672 million, and an increase in inventories of ¥1,298 million. Non-current assets totaled ¥52,932 million, an increase of ¥240 million from the end of the previous consolidated fiscal year. This was mainly due to a decrease in property, plant and equipment of ¥285 million, and an increase in investments and other assets of ¥576 million. Liabilities totaled ¥35,713 million, an increase of ¥813 million from the end of the previous consolidated fiscal year. Current liabilities were ¥25,790 million, an increase from the end of the previous consolidated fiscal year of ¥1,368 million. An increase in notes and accounts payable – trade of ¥1,757 million, a decrease in short-term borrowings of ¥1,050 million, an increase in income taxes payable of ¥147 million, and an increase in other current liabilities of ¥521 million were the main factors in this. Non-current liabilities were ¥9,923 million, a decrease from the end of the previous consolidated fiscal year of ¥554 million. The main factors in this were a decrease of long-term borrowings of ¥600 million, a decrease in lease liabilities of ¥237 million, and an increase in deferred tax liabilities of ¥299 million. Net assets were ¥51,991 million, an increase from the end of the previous consolidated fiscal year of ¥1,126 million. The main factors in this were an increase in retained earnings of ¥1,316 million, an increase in foreign currency translation adjustments of ¥404 million, a decrease in remeasurements of defined benefit plans of ¥889 million, and an increase in non-controlling interests of ¥177 million. (3) Summary of Cash Flows for Current Fiscal Year During the current consolidated fiscal year, cash and cash equivalents (hereinafter, “cash”) decreased from the end of the previous consolidated fiscal year by ¥257 million to ¥6,479 million. The status of each cash flow during the current consolidated fiscal year and their contributing factors are as follows. (Cash flows from operating activities) Cash provided by operating activities in the current consolidated fiscal year totaled ¥3,364 million (compared to ¥3,641 million gained in the previous consolidated fiscal year). This is mainly due to – 3 – income from an increase in trade payables, an increase in trade receivables, an increase in retirement benefit assets, and expenditures such as the payment of income taxes, based on profit before income taxes and depreciation and amortization. (Cash flows from investing activities) Cash used in investing activities during the current consolidated fiscal year amounted to ¥966 million (compared to ¥2,325 million expended in the previous consolidated fiscal year). Expenditures including the purchase of property, plant and equipment were the main factor in this. (Cash flows from financing activities) Cash used in financing activities in the current consolidated fiscal year amounted to ¥2,841 million (compared to ¥499 million gained in the previous consolidated fiscal year). Expenditures such as the payment of dividends, the repayment of short-term borrowings, the repayment of long-term borrowings, and the repayment of lease liabilities were the main factors in this. (4) Future Prospects The Japanese economy is expected to recover in the next fiscal year (ending March 31, 2023) as efforts are made to normalize economic and social activities. Nevertheless, close attention will need to be paid to such impact as fluctuations in financial and capital markets, supply-side constraints, and raw materials price hikes due to the prolonging of the situation in Ukraine. Under these circumstances, we will respond to changes in the structure of society by strengthening its product and technology development system to create new added value, focusing on markets where we can show our strengths such as the protective products field. Through these efforts, we will expand our share of the existing market and cultivate new markets, thereby increasing earnings. At the same time, we will continue to focus on measures to reduce manufacturing costs, with a particular focus on establishing an optimal production system and raw materials consolidation and elimination. By doing so, we will work to stabilize our business performance and achieve high profitability for the foreseeable future. As for the business environment in the next fiscal year, in the domestic coatings market, which is our main market, the demand environment in the general-purpose coatings field is expected to remain firm. However, the industrial coatings field is not expected to see a full-fledged recovery in demand due to the lingering effects of the semiconductor shortage. In addition, the impact of raw materials price increases due to the situation in Ukraine is expected to intensify. These price increases passing onto the prices of our finished goods will be the most important issue. Our consolidated financial forecast for the next fiscal year is net sales of ¥70,800 million, operating income of ¥3,300 million, ordinary income of ¥3,500 million, and profit attributable to owners of parent of ¥2,000 million. This forecast for the next fiscal year is calculated based on the information available at this time, but actual results may differ due to a variety of factors, including changes in economic and business conditions and raw materials price trends. (5) Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years The Company regards the determination of the amount of dividends to be paid to shareholders as one of its most important management issues. Our basic policy is to continue to pay stable dividends commensurate with our business performance, while at the same time striving to strengthen our corporate constitution and maintain financial soundness. Regarding dividends at the end of the current fiscal year, as announced in the timely disclosure dated May 12, 2021, the Company plans to pay a dividend of ¥25 per share. – 4 – Regarding the next consolidated fiscal year, we plan to pay an annual dividend of ¥25 per share. As a result, the consolidated dividend payout ratio is expected to be 35.4%. To continue to pay stable dividends, we will continue to make efforts to strengthen the soundness of our financial constitution. – 5 – 2. Status of the Corporate Group The following is a diagram of the Company’s operations. 〔Domestic Coatings Business〕Domestic Customers〔Overseas Coatings Business〕Overseas Customers Sales CompaniesSales Companies○ Dai Nippon Toryo Hokkaido Co., Ltd.○ Sunday Paint Co., Ltd.○ DNT Sanyo Chemical Co., Ltd.○ Ube Toryo Co., Ltd.FinishedGoods○ DNT Singapore Pte., Ltd.○ DNT KANSAI MEXICANA S.A. de C.V.＊ Lilama3- Dai Nippon Toryo Co., Ltd.(+1 Other Company) Manufacturing/Sales CompaniesManufacturing/Sales CompaniesFinishedGoods,Etc.FinishedGoodsRawMaterials, Etc.FinishedGoodsRawMaterials, Etc.)seaSl/.gfnM( TND○ Thai DNT Paint Mfg. Co., Ltd.○ DNT Paint (Malaysia) Sdn. Bhd.○ PT. DNT INDONESIA○ DNT (Shanghai) Co., Ltd.○ DNT (Zhejiang) Co., Ltd.○ DAI NIPPON TORYO MEXICANA, S.A. de C.V.○ Nitto Chemical Co., Ltd.○ BO Chemical Co., Ltd.Manufacturing Companies ○ Chiba Kako Co., Ltd.○ Nitto Sanwa Toryo Co., Ltd.○ DNT Service Co., Ltd.○ Japan Powder Coatings Manufacturing Co., Ltd.○ Okayama Kako Co., Ltd.Logistical Tasks, Etc.〔Lighting Business〕 Manufacturing CompaniesManufacturing/Sales Companies○ Nippo Denko Co., ○ DN Lighting Co., Ltd. Finished Goods〔 Flourescent Color Material Business 〕 Manufacturing/Sales Companies　○Sinloihi Co., Ltd.〔Other Businesses〕 (Services) ○ Nitto Service Co., Ltd. (Engineering) ○ Nitto Engineering Co., Ltd.(Other )＊Yubi Industry, Ltd.(Notes) 1. A circle (○) denotes a consolidated subsidiary. 2. An asterisk (＊) denotes an equity method affiliate. 3. Basic Approach to the Selection of Accounting Standards The Company’s policy is to prepare for the future application of IFRS by preparing internal manuals, guidelines, etc., and by also considering the timing of application. – 6 – sremotsuC saesrevOsremotsuC citsemoD 4. Consolidated Financial Statements and Major Notes (1) Consolidated balance sheet As of March 31, 2021 As of March 31, 2022 (Millions of yen) 6,777 16,411 5,603 905 3,720 1,386 (31) 34,773 22,323 (14,449) 7,873 23,441 (19,669) 3,772 11,498 1,902 (1,001) 900 209 6,820 (5,483) 1,336 25,591 120 254 374 7,324 1,794 17,264 608 (25) 26,965 52,932 87,705 6,983 15,739 5,311 691 2,928 1,448 (27) 33,073 20,938 (13,985) 6,952 22,892 (19,588) 3,304 11,512 1,936 (811) 1,125 1,444 6,742 (5,205) 1,537 25,877 156 268 424 7,387 1,871 16,487 710 (66) 26,389 52,691 85,765 Assets Current assets Cash and deposits Notes and accounts receivable – trade, and contract assets 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 Land Leased assets Accumulated depreciation Leased assets, net Construction in progress Other Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Leased assets Other Total intangible assets Investments and other assets Investment securities Deferred tax assets Retirement benefit asset Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets – 7 – As of March 31, 2021 As of March 31, 2022 (Millions of yen) 16,340 3,050 312 429 56 370 5,230 25,790 1,200 981 5,436 1,303 938 8 54 9,923 35,713 8,827 2,440 29,417 (1,582) 39,101 3,027 1,882 (2) 5,006 9,913 243 2,732 51,991 87,705 14,583 4,100 334 282 44 368 4,709 24,422 1,800 1,219 5,137 1,303 932 8 77 10,478 34,900 8,827 2,440 28,101 (1,614) 37,754 2,943 1,882 (407) 5,896 10,314 241 2,554 50,865 85,765 Liabilities Current liabilities Notes and accounts payable – trade Short-term borrowings Lease liabilities Income taxes payable Provision for bonuses for directors (and other officers) Provision for product warranties Other Total current liabilities Non-current liabilities Long-term borrowings Lease liabilities Deferred tax liabilities Deferred tax liabilities for land revaluation Retirement benefit liability Provision for environmental measures 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 Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets – 8 – 66,948 47,290 19,658 16,474 3,183 17 210 148 94 21 – 180 673 65 33 135 109 48 391 3,465 240 82 – 323 0 116 17 30 14 177 3,611 595 732 1,328 2,283 251 2,031 (2) Consolidated statement of income and consolidated statement of comprehensive income (Consolidated statement of income) (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 63,160 43,994 19,165 16,336 2,828 25 194 41 60 178 75 165 743 75 34 23 47 122 303 3,268 82 44 2 129 37 61 73 140 8 321 3,076 583 406 989 2,087 118 1,968 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Foreign exchange gains Gain on sale of goods Subsidies for employment adjustment Reversal of provision for environmental measures Other Total non-operating income Non-operating expenses Interest expenses Loss on sale of trade receivables Compensation expenses Provision for product warranties Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Other Total extraordinary income Extraordinary losses Loss on sale of non-current assets Loss on disposal of non-current assets Impairment losses Business restructuring expenses 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 owners of parent – 9 – (Consolidated statement of comprehensive income) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Millions of yen) 2,283 84 418 (890) 0 (387) 1,895 1,631 264 2,087 1,325 (359) 3,962 (0) 4,927 7,014 7,011 2 Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests – 10 – (3) Consolidated statement of changes in equity Previous consolidated fiscal year (April 1, 2020 to March 31, 2021) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares (Millions of yen) Total shareholders’ equity Balance at beginning of period 8,827 2,440 26,841 (1,617) 36,491 Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Transfer of loss on disposal of treasury shares Exercise of share acquisition rights Net changes in items other than shareholders’ equity Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Transfer of loss on disposal of treasury shares Exercise of share acquisition rights Net changes in items other than shareholders’ equity 1,325 1,325 2,943 Total changes during period – – 1,260 1,263 Balance at end of period 8,827 2,440 28,101 (1,614) 37,754 Accumulated other comprehensive income Valuation difference on available-for-sale securities Revaluation reserve for land Foreign currency translation adjustment Remeasure-ments of defined benefit plans Total accumulated other comprehen-sive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 1,617 1,882 (164) 1,935 5,271 212 2,704 44,679 (707) 1,968 (0) – 0 (2) 31 28 Total changes during period Balance at end of period – 1,882 (243) (407) 3,961 5,042 (149) 6,185 5,896 10,314 241 2,554 50,865 (243) 3,961 5,042 (149) 4,924 (707) 1,968 (0) 0 (0) (707) 1,968 (0) – 2 (0) 3 3 – 11 – Current consolidated fiscal year (April 1, 2021 to March 31, 2022) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares (Millions of yen) Total shareholders’ equity Balance at beginning of period 8,827 2,440 28,101 (1,614) 37,754 Total changes during period – (0) 1,316 31 1,347 Balance at end of period 8,827 2,440 29,417 (1,582) 39,101 Accumulated other comprehensive income Valuation difference on available-for-sale securities Revaluation reserve for land Foreign currency translation adjustment Remeasure-ments of defined benefit plans Total accumulated other comprehen-sive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 2,943 1,882 (407) 5,896 10,314 241 2,554 50,865 Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Transfer of loss on disposal of treasury shares Purchase of shares of consolidated subsidiaries Net changes in items other than shareholders’ equity Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Transfer of loss on disposal of treasury shares Purchase of shares of consolidated subsidiaries Net changes in items other than shareholders’ equity 84 84 (707) 2,031 (7) (7) 7 (0) (0) 31 (707) 2,031 (0) 23 – (0) – 12 – Total changes during period – (889) (400) (889) (400) 404 404 2 2 177 177 (220) 1,126 Balance at end of period 3,027 1,882 (2) 5,006 9,913 243 2,732 51,991 (707) 2,031 (0) 23 – (0) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Millions of yen) 3,611 2,545 30 12 (2,054) 1 – (36) (227) 65 2 (21) (240) 116 (82) 17 (593) (1,191) 1,608 (17) 3,542 229 (65) 24 (45) 337 (659) 3,364 (328) 294 (1,302) 298 (125) (65) (13) 265 10 (966) 3,076 2,426 140 (28) (1,315) 34 (87) (6) (220) 75 2 (178) (45) 61 (44) 73 1,484 413 (783) (656) 4,420 219 (72) 175 (80) 225 (1,248) 3,641 (244) 244 (2,794) 327 (91) (18) (16) 241 26 (2,325) (4) Consolidated statement of cash flows Cash flows from operating activities Profit before income taxes Depreciation Business restructuring expenses Increase (decrease) in provision for bonuses for directors (and other officers) Increase/decrease in net defined benefit asset/liability Increase (decrease) in provision for product warranties Increase (decrease) in provision for environmental measures Increase (decrease) in allowance for doubtful accounts Interest and dividend income Interest expenses Share of loss (profit) of entities accounted for using equity method Subsidies for employment adjustment Loss (gain) on sale of non-current assets Loss (gain) on disposal of non-current assets Loss (gain) on sale of investment securities Impairment losses Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Other, net Subtotal Interest and dividends received Interest paid Proceeds from subsidies for employment adjustment Payments of business restructuring expenses Income taxes refund Income taxes paid 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 Proceeds from sale of property, plant and equipment Payments for retirement of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sale of investment securities Other, net Net cash provided by (used in) investing activities – 13 – Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Cash flows from financing activities Net increase (decrease) in short-term borrowings Repayments of long-term borrowings Purchase of treasury shares Repayments of lease liabilities Dividends paid Dividends paid to non-controlling interests Purchase of shares of subsidiaries not resulting 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 Cash and cash equivalents at end of period (Millions of yen)(1,050) (600) (0) (394) (707) (74) (13) (2,841) 186 (257) 6,736 6,479 2,339 (600) (0) (381) (707) (150) – 499 (142) 1,672 5,064 6,736 – 14 – (5) Notes on consolidated financial statements (Notes on the premise of a going concern) Not applicable. (Changes in accounting policies) (Application of Accounting Standard for Revenue Recognition, etc.) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30, March 26, 2021, Accounting Standards Board of Japan) from the beginning of the current consolidated fiscal year. Freight revenue received from customers for the transportation of products was previously recognized at the net amount paid to carriers less freight received from customers. However, for transactions in which the Company’s role in providing goods or services to the customer corresponds to that of a principal, the Company now recognizes revenue at the gross amount of consideration received from the customer. Such changes in accounting policies are, in principle, applied retrospectively, and the consolidated financial statements restate the figures for the previous consolidated fiscal year following retrospective application. Furthermore, “Notes and accounts receivable – trade” under current assets of the consolidated balance sheet as of the end of the previous consolidated fiscal year has been included in “Notes and accounts receivable – trade, and contract assets” under current assets from the current consolidated fiscal year. As a result, compared with the figures prior to the retrospective application, in the consolidated statement of income for the previous consolidated fiscal year, net sales increased by ¥684 million and selling, general and administrative expenses increased by the same amount, and in the consolidated statement of cash flows, decrease (increase) in trade receivables in cash flows from operating activities increased by ¥21 million, and other decreased by the same amount. In the consolidated balance sheet for the previous consolidated fiscal year, notes and accounts receivable – trade, and contract assets increased by ¥96 million and other decreased by the same amount. (Application of Accounting Standard for Fair Value Measurement, etc.) The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the current consolidated fiscal year, and it has applied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc. prospectively in accordance with the transitional measures provided for in paragraph 19 of the Accounting Standard For Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no effect on the consolidated financial statements. – 15 – (Segment information, etc.) [Segment information] 1. Overview of reportable segments The Company’s reportable segments are components of the Company for which separate financial information is available and for which the Board of Directors conducts periodic review to determine the allocation of management resources and evaluate operating results. The Company has established a domestic coatings business division and an Overseas Operations Division at its head office. Each formulates comprehensive strategies and develops business activities regarding the products and services of the domestic and overseas coatings business companies, respectively. In addition, domestic consolidated subsidiaries are engaged in the lighting business and the fluorescent color material business. Therefore, the Group has four reportable segments: the domestic coatings business, the overseas coatings business, the lighting business, and the fluorescent color material business. The domestic coatings business manufactures and sells coatings in Japan. The overseas coatings business manufactures and sells coatings mainly in Asia and North and Central America. The lighting business includes the manufacture and sale of various types of lighting equipment as well as store construction. The fluorescent color material business manufactures and sells fluorescent pigments and special coating materials. 2. Calculation methods of net sales, profit or loss, assets, and other items by reportable segment The accounting treatment of our reported business segments is in accordance with the accounting principles and procedures employed in the preparation of our consolidated financial statements. Profit by reportable segment is based on operating income. Intersegment transactions are between consolidated companies, and are based on market prices and other factors. 3. Matters related to changes to reportable segments, etc. (Application of Accounting Standard for Revenue Recognition) Freight revenue received from customers for the transportation of products was previously recognized at the net amount paid to carriers less freight received from customers. However, as stated in “Changes in Accounting Policies,” beginning with the current consolidated fiscal year, for transactions in which the Company’s role in providing goods or services to the customer corresponds to that of a principal, the Company now recognizes revenue at the gross amount of consideration received from the customer. As a result of this change, compared to when using the previous method, net sales to external customers in the current consolidated fiscal year have increased by ¥737 million for domestic coatings and by ¥4 million for fluorescent color materials. Likewise, intersegment sales and transfers increased by ¥35 million for domestic coatings and ¥1 million for fluorescent color materials, respectively. Furthermore, the segment information for the previous consolidated fiscal year was prepared and disclosed based on the reportable segmentation for the current consolidated fiscal year. – 16 – 61,075 1,036 62,111 2,387 91,695 2,397 28 118 3,189 Reportable segments (Millions of yen) Domestic coatings Overseas coatings Lighting Total Fluorescent color materials 4. Information on net sales, profits or losses, and other items by reportable segment Previous consolidated fiscal year (April 1, 2020 to March 31, 2021) Net sales Net sales to external customers Intersegment internal net sales or transfers Total Segment profit Segment assets Other items Depreciation Amount of investment in equity method affiliate Increase in property, plant and equipment and intangible assets Net sales Net sales to external customers Intersegment internal net sales or transfers Total Segment profit Segment assets Other items Depreciation Amount of investment in equity method affiliate Increase in property, plant and equipment and intangible assets 47,232 942 48,175 1,631 67,611 1,834 22 2,063 2,084 2,164 4,249 257 2,658 28 29 24 5,486 0 5,486 221 10,271 289 5 891 63,160 3,201 66,361 2,645 94,353 2,426 58 3,213 7,239 17 7,256 479 12,618 217 – 115 – (3,201) (3,201) 183 (8,587) – – – Amount recorded in consolidated financial statements3 1,117 76 1,193 54 1,193 56 – 63,160 – 63,160 2,828 85,765 2,426 58 3,213 Other1 Total Amount of adjustment2, 4 (Notes) 1. “Other” refers to business segments not included in the reportable segments, such as the painting business and logistics business. 2. The adjustment of segment profit of ¥183 million refers to the elimination of intersegment 3. Segment profit is adjusted to be consistent with operating income shown on the consolidated 4. The adjustment of segment assets of minus ¥8,587 million refers to the elimination of transactions. financial statements. intersegment transactions. – 17 – 65,441 1,202 66,643 2,850 94,403 2,516 0 1,917 Current consolidated fiscal year (April 1, 2021 to March 31, 2022) Reportable segments (Millions of yen) Domestic coatings Overseas coatings Lighting Total Fluorescent color materials Net sales Net sales to external customers Intersegment internal net sales or transfers Total Segment profit Segment assets Other items Depreciation Amount of investment in equity method affiliate Increase in property, plant and equipment and intangible assets Net sales Net sales to external customers Intersegment internal net sales or transfers Total Segment profit Segment assets Other items Depreciation Amount of investment in equity method affiliate Increase in property, plant and equipment and intangible assets 49,622 1,028 50,650 1,990 68,220 1,850 – 1,159 1,507 2,374 3,881 114 2,580 28 31 55 6,939 1 6,940 236 11,870 364 0 522 66,948 3,577 70,525 2,965 96,984 2,545 32 1,972 7,656 84 7,740 577 13,069 239 – 199 – (3,577) (3,577) 218 (9,278) – – – Amount recorded in consolidated financial statements3 1,223 87 1,311 46 1,242 61 – 35 66,948 – 66,948 3,183 87,705 2,545 32 1,972 Other1 Total Amount of adjustment2, 4 (Notes) 1. “Other” refers to business segments not included in the reportable segments, such as the painting business and logistics business. 2. The adjustment of segment profit of ¥218 million refers to the elimination of intersegment 3. Segment profit is adjusted to be consistent with operating income shown on the consolidated 4. The adjustment of segment assets of minus ¥9,278 million refers to the elimination of transactions. financial statements. intersegment transactions. – 18 – [Related information] Previous consolidated fiscal year (April 1, 2020 to March 31, 2021) 1. Information by product and service This information has been omitted because the segmentation of products and services is the same as the reportable segments. 2. Information by region (1) Net sales This information has been omitted because net sales to external customers in Japan account for more than 90% of the net sales in the consolidated statement of income. (2) Property, plant and equipment Japan Other 22,404 3,473 (Millions of yen) Total 25,877 3. Information by major customer Customer name Net sales Mitsubishi Shoji Chemical Corporation 11,806 (Millions of yen) Name of related segment(s) Domestic coatings Fluorescent color materials Other Current consolidated fiscal year (April 1, 2021 to March 31, 2022) 1. Information by product and service This information has been omitted because the segmentation of products and services is the same as the reportable segments. 2. Information by region (1) Net sales Japan Other 59,483 7,465 (2) Property, plant and equipment Japan Other 21,679 3,911 3. Information by major customer (Millions of yen) Total 66,948 (Millions of yen) Total 25,591 Customer name Net sales Mitsubishi Shoji Chemical Corporation 12,726 (Millions of yen) Name of related segment(s) Domestic coatings Fluorescent color materials Other – 19 – [Information on impairment losses of non-current assets by reportable segment] Previous consolidated fiscal year (April 1, 2020 to March 31, 2021) Domestic coatings Overseas coatings Lighting Fluorescent color materials Other Corporate/Elimination Total 73 – – – – – 73 (Millions of yen) Current consolidated fiscal year (April 1, 2021 to March 31, 2022) Domestic coatings Overseas coatings Lighting Fluorescent color materials (Millions of yen) Other Corporate/Elimination Total 17 – – – – – 17 [Information on amortization and unamortized balance of goodwill by reportable segment] Previous consolidated fiscal year (April 1, 2020 to March 31, 2021) Impairment losses Impairment losses Current consolidated fiscal year (April 1, 2021 to March 31, 2022) [Information on gain on negative goodwill by reportable segment] Previous consolidated fiscal year (April 1, 2020 to March 31, 2021) Current consolidated fiscal year (April 1, 2021 to March 31, 2022) Not applicable. Not applicable. Not applicable. Not applicable. – 20 – (Note) The basis for calculating earnings per share and diluted earnings per share is as follows. Previous consolidated fiscal year (April 1, 2020 to March 31, 2021) Current consolidated fiscal year (April 1, 2021 to March 31, 2022) 1,698.23 69.55 68.96 1,730.00 71.74 71.10 Previous consolidated fiscal year (April 1, 2020 to March 31, 2021) Current consolidated fiscal year (April 1, 2021 to March 31, 2022) 1,968 2,031 (Per share information) Net assets per share Earnings per share Diluted earnings per share Earnings per share Profit attributable to owners of parent (millions of yen) Amount not attributable to common shareholders (millions of yen) Profit attributable to owners of parent related to common shares (millions of yen) Average number of common shares during the period (thousands of shares) Diluted earnings per share Adjustment to profit attributable to owners of parent (millions of yen) Increase in common shares (thousands of shares) (execution of share acquisition rights [thousands of shares]) Summary of latent shares not included in the calculation of diluted earnings per share due to the absence of dilutive effects (Significant subsequent events) Not applicable. (Yen) – – – 2,031 28,322 252 (252) – – – 1,968 28,302 241 (241) – 21 – 5. Non-consolidated Financial Statements and Major Notes (1) Balance sheet As of March 31, 2021 As of March 31, 2022 (Millions of yen) 341 3,331 6,337 2,671 419 1,082 1,073 3,602 294 (4) 19,149 3,292 329 1,131 3 602 8,872 837 13 15,084 64 85 119 44 313 7,043 13,080 2,482 9,773 282 (12) 32,649 48,047 67,196 1,318 3,183 6,030 2,244 325 791 932 3,400 273 (7) 18,492 3,544 363 1,181 0 777 8,900 1,028 – 15,796 64 95 153 38 351 6,955 13,071 2,515 7,919 367 (51) 30,779 46,927 65,419 Assets Current assets Cash and deposits Notes receivable – trade Accounts receivable – trade Merchandise and finished goods Work in process Raw materials and supplies Short-term loans receivable Accounts receivable – other Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings Structures Machinery and equipment Vehicles Tools, furniture and fixtures Land Leased assets Construction in progress Total property, plant and equipment Intangible assets Leasehold interests in land Software Leased assets Other Total intangible assets Investments and other assets Investment securities Shares of subsidiaries and associates Long-term loans receivable Prepaid pension costs Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets – 22 – As of March 31, 2021 As of March 31, 2022 (Millions of yen) 2,031 11,945 2,450 600 258 750 684 83 7,873 19 366 113 27,177 1,200 859 3,211 1,303 98 20 6,693 33,870 8,827 2,443 2,443 780 106 17,633 18,520 (1,582) 28,208 2,991 1,882 4,874 243 33,326 67,196 1,808 10,564 3,500 600 277 676 674 86 7,441 19 368 197 26,215 1,800 1,040 2,541 1,303 110 33 6,828 33,044 8,827 2,443 2,443 780 109 16,841 17,731 (1,614) 27,388 2,863 1,882 4,746 241 32,375 65,419 Liabilities Current liabilities Notes payable – trade Accounts payable – trade Short-term borrowings Current portion of long-term borrowings Lease liabilities Accounts payable – other Accrued expenses Income taxes payable Deposits received Provision for bonuses for directors (and other officers) Provision for product warranties Other Total current liabilities Non-current liabilities Long-term borrowings Lease liabilities Deferred tax liabilities Deferred tax liabilities for land revaluation Provision for retirement benefits Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Legal capital surplus Total capital surplus Retained earnings Legal retained earnings Other retained earnings Total retained earnings Treasury shares Total shareholders’ equity Reserve for contribution to society Retained earnings brought forward Valuation and translation adjustments Valuation difference on available-for-sale securities Revaluation reserve for land Total valuation and translation adjustments Share acquisition rights Total net assets Total liabilities and net assets – 23 – Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Millions of yen) 39,849 29,288 10,561 9,735 825 45 712 234 296 272 1,561 86 32 105 25 55 305 2,082 100 30 4 135 76 – 1 77 2,140 21 614 635 1,504 37,641 26,951 10,689 9,928 761 59 1,149 236 303 298 2,047 91 34 47 29 33 235 2,572 – 44 – 44 49 7 2 59 2,556 86 433 519 2,036 (2) Statement of income Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Rental income from real estate Outsourcing service income Other Total non-operating income Non-operating expenses Interest expenses Loss on sale of trade receivables Provision for product warranties Rental expenses Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Other Total extraordinary income Extraordinary losses Loss on disposal of non-current assets Loss on valuation of investment securities Other Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit – 24 – (Millions of yen)(3) Statement of changes in equity Previous fiscal year (April 1, 2020 to March 31, 2021) Shareholders’ equity Capital surplus Retained earnings Share capital Legal capital surplus Other capital surplus Total capital surplus Legal retained earnings Other retained earnings Reserve for contri-bution to society Retained earnings brought forward Total retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 8,827 2,443 – 2,443 780 114 15,508 16,403 (1,617) 26,056 Changes during period Reversal of reserve for contribution to society Dividends of surplus Profit Purchase of treasury shares Transfer of loss on disposal of treasury shares Exercise of share acquisition rights Net changes in items other than shareholders’ equity 0 (0) (4) 4 – (707) (707) 2,036 2,036 (0) (0) (707) 2,036 (0) (0) – – 2 3 0 (0) – – Total changes during period – – – – (4) 1,333 1,328 3 1,331 Balance at end of period 8,827 2,443 2,443 780 109 16,841 17,731 (1,614) 27,388 Valuation and translation adjustments Valuation difference on available-for-sale securities Revaluation reserve for land Total valuation and translation adjustments Share acquisition rights Total net assets Balance at beginning of period 1,600 1,882 3,482 212 29,751 Changes during period Reversal of reserve for contribution to society Dividends of surplus Profit Purchase of treasury shares Transfer of loss on disposal of treasury shares Exercise of share acquisition rights Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (2) 31 28 – (707) 2,036 (0) – 0 1,294 2,623 241 32,375 1,263 1,263 2,863 1,263 1,263 4,746 – 1,882 – 25 – Current fiscal year (April 1, 2021 to March 31, 2022) Shareholders’ equity Capital surplus Retained earnings Share capital Legal capital surplus Other capital surplus Total capital surplus Legal retained earnings Other retained earnings Reserve for contri-bution to society Retained earnings brought forward Treasury shares Total retained earnings Total shareholders’ equity Balance at beginning of period 8,827 2,443 – 2,443 780 109 16,841 17,731 (1,614) 27,388 (Millions of yen)Changes during period Reversal of reserve for contribution to society Dividends of surplus Profit Purchase of treasury shares Disposal of treasury shares Transfer of loss on disposal of treasury shares Net changes in items other than shareholders’ equity (7) 7 (2) 2 – (707) (707) 1,504 1,504 (7) (7) (0) 31 – (707) 1,504 (0) 23 – (7) 7 – – Total changes during period – – – – (2) 791 789 31 820 Balance at end of period 8,827 2,443 2,443 780 106 17,633 18,520 (1,582) 28,208 Valuation and translation adjustments Valuation difference on available-for-sale securities Revaluation reserve for land Total valuation and translation adjustments Share acquisition rights Total net assets Balance at beginning of period 2,863 1,882 4,746 241 32,375 Changes during period Reversal of reserve for contribution to society Dividends of surplus Profit Purchase of treasury shares Disposal of treasury shares Transfer of loss on disposal of treasury shares Net changes in items other than shareholders’ equity 128 128 2 2 – (707) 1,504 (0) 23 – 130 951 Total changes during period – Balance at end of period 2,991 1,882 4,874 243 33,326 – 26 – 128 128 6. Other Change of Officers (Effective June 29, 2022) [Change of representative] Not applicable. [Change of other officers] (i) Candidates for New Directors Director Masayuki Nakatani Outside Director Hiroshi Sato Outside Director Koji Baba (ii) Retiring Directors Director Naoyuki Kimura Outside Director Outside Director Kyoichi Haizaki Michitaka Mukohara (iii) Candidates for New Corporate Auditor Full-time Corporate Auditor Naoyuki Kimura (iv) Retiring Corporate Auditor Full-time Corporate Auditor Masaki Kobayashi [Currently Executive Officer and General Manager of the Overseas Operations Division] [Currently Director and Standing Audit & Supervisory Board Member of Mitsubishi Materials Corporation] [Currently Audit and Supervisory Board Member of Mitsubishi Logisnext Co., Ltd.] [Currently Director, Head of the Overseas Operations Division, and in charge of Procurement] [Currently Director, Head of the Overseas Operations Division, and in charge of Procurement] – 27 –