開示日時：2022/05/18 13:00:00
損益
| 決算期 | 売上高 | 営業益 | 経常益 | EPS |
| 2018.03 | 19,749,500 | 2,135,800 | 2,179,200 | 222.72 |
| 2019.03 | 21,549,500 | 2,263,000 | 2,316,600 | 238.7 |
| 2020.03 | 20,887,600 | 2,042,800 | 2,118,000 | 221.21 |
| 2021.03 | 19,637,100 | 1,961,700 | 2,067,000 | 161.53 |
※金額の単位は［万円］
株価
| 前日終値 | 50日平均 | 200日平均 | 実績PER | 予想PER |
| 2,762.0 | 2,719.46 | 2,783.75 | 11.03 | 10.86 |
※金額の単位は［円］
キャッシュフロー
| 決算期 | フリーCF | 営業CF |
| 2018.03 | 558,200 | 1,812,200 |
| 2019.03 | 392,500 | 1,583,300 |
| 2020.03 | 1,025,600 | 2,009,400 |
| 2021.03 | 1,038,500 | 1,868,300 |
※金額の単位は［万円］
▼テキスト箇所の抽出
Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 May 9, 2022 NICHIAS Corporation Company Name: Tokyo Stock Exchange (Code number 5393) Stock Exchange Listing: https://www.nichias.co.jp/nichias-E/ URL: Toshiyuki Takei, President and Chief Executive Officer Representative: Kiminori Nakata, Representative Director and Senior Managing Executive Officer Inquiries: Phone: +81-3-4413-1111 Scheduled date of Ordinary General Meeting of Shareholders: June 29, 2022 Scheduled date of filing the consolidated financial statements: June 29, 2022 Supplementary materials for financial results: Organization of financial results briefing: Scheduled date of commencement of dividend payment: Available Yes (for institutional investors and analysts) June 30, 2022 1. Consolidated financial results for Fiscal Year 2021 (April 1, 2021 to March 31, 2022)(1) Consolidated Operating Results (Fractional amounts of less than ¥1 million are discarded.)Net sales Operating income Ordinary income Profit attributable to owners of the parent(Percentage figures represent changes from previous fiscal year)Millions of yen%Millions of yen%Millions of yen% Millions of yen%FY2021FY2020 216,23610.1196,372(6.0)26,26419,61633.9(4.0)30,57221,27943.7(1.6)22,034105.610,715(27.0)Note: Comprehensive income FY2021 ¥24,095 million—68.9%; FY2020 ¥14,269 million—(0.8)%Basic earnings per share Diluted earnings per share Rate of return on equity Ordinary income on total assets Operating MarginFY2021 FY2020Yen332.18161.53Yen−−%13.110.0%12.110.0(Reference) Share of profit or loss on investments for using the equity method: FY2021 ¥82 million FY2020 ¥46 million (2) Consolidated Financial Position %15.28.2 Total assets Net assets Equity ratio Net assets per shareMillions of yenMillions of yenAs of March 31, 2022As of March 31, 2021246,924219,602155,522136,450(Reference) Shareholders(cid:146) equity: FY2021 ¥154,286 million; FY2020 ¥135,429 million %62.561.7Yen2,325.952,041.63(3) Consolidated Cash flows Net cash from (used in) operating activities Net cash from (used in) investing activities Net cash from (used in) financing activities Cash and cash equivalents at the end of fiscal year Millions of yenMillions of yenMillions of yenMillions of yenFY2021FY2020 25,07318,683(5,523)(6,799)(5,881)(5,469)54,41439,589 2. Dividends End of 1stquarterEnd of first halfAnnual DividendsEnd of 3rdquarterFY2020 FY2021 FY2022 (Forecast)Yen−−−Yen38.0042.0044.00Year-endTotal YenYen40.0044.0044.0078.0086.0088.00Yen−−−Total DividendsMillions ofyen 5,1745,704Dividend pay-out ratioRatio of dividends to net assets48.3 %25.932.4%4.03.93. Forecast of consolidated financial results for Fiscal Year 2022 (April 1, 2022 to March 31, 2023)Net sales Operating incomeOrdinary income (Percentage figures represent changes from previous fiscal year)Profit attributable to owners of the parentBasic earnings per shareMillions of yen% Millions of yen% Millions of yen% Millions of yen%First halfFull year109,000225,0005.34.112,000(5.3)12,000(13.6)26,5000.926,500(13.3)8,00018,000(21.9)(18.3)Yen120.60271.36*Notes (1) Changes in significant subsidiaries during the period under review (Changes in specific subsidiaries accompanying changes in the scope of consolidation): None(2) Changes in accounting policies, changes in accounting estimates, and restatements 1) Changes in accounting policies due to revision of accounting standards: 2) Changes other than those in 1) above: 3) Changes in accounting estimates: 4) Restatements: Yes None None None (3) Number of shares outstanding (ordinary shares)1) Number of shares outstanding at the end of the year (including treasury stock) FY2021 FY2020 (As of March 31, 2022) (As of March 31, 2021) 2) Number of shares of treasury stock at the end of the year (As of March 31, 2022) (As of March 31, 2021) FY2021 FY2020 3) Average number of shares outstanding during the year FY2021 FY2020 (As of March 31, 2022) (As of March 31, 2021) 67,811,917 shares 67,811,917 shares 1,479,228 shares 1,477,947 shares 66,333,210 shares 66,334,673 shares *This summary of financial statements is not subject to audit by a certified public accountant or auditor. *Information concerning proper use of financial forecasts and other special notes Information concerning forward-looking statements Forward-looking statements concerning financial forecasts contained in these materials are based on information available to the Company when the forecasts were made and certain assumptions judged to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual results may differ significantly from the forecasts due to a variety of factors. Please refer to (cid:147)1. Overview of operating results (4) Earnings forecasts(cid:148) on page 3 for information concerning financial forecasts such as the assumptions used for financial forecasts and factors that could cause these assumptions to change. Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. This summary does not constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on these statements. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct. (cid:1) Attachment index 1. Overview of operating results ……………………………………………………………………………………………………………………… 2(1) Overview of operating results in FY2021 (April 1, 2021 to March 31, 2022) …………………………………………………………………… 2(2) Overview of financial position …………………………………………………………………………………………………………………………………………………… 2(3) Cash flows ……………………………………………………………………………………………………………………………………………………………………………………… 2(4) Earnings forecasts………………………………………………………………………………………………………………………………………………………………………… 3(5) Policies for distribution of profit and dividends for FY2021 and FY2022 ………………………………………………………………………… 3(6) Risk factors ……………………………………………………………………………………………………………………………………………………………………………………. 32. Management policies …………………………………………………………………………………………………………………………………… 5(1) The Group(cid:146)s basic management policy …………………………………………………………………………………………………………………………………… 5(2) Target management indicators …………………………………………………………………………………………………………………………………………………. 53. Basic stance toward the selection of accounting standards ………………………………………………………………………….. 54. Consolidated financial statements and related notes …………………………………………………………………………………… 6(1) Consolidated balance sheets …………………………………………………………………………………………………………………………………………………….. 6(2) Consolidated statements of income and consolidated statements of comprehensive income …………………………………. 8(3) Consolidated statements of changes in shareholders(cid:146) equity …………………………………………………………………………………………. 10(4) Consolidated statements of cash flows ………………………………………………………………………………………………………………………………… 12(5) Notes regarding Consolidated Financial Statements ………………………………………………………………………………………………………… 14(Notes regarding going concern assumption) ……………………………………………………………………………………………………………………… 14(Changes in accounting policies) …………………………………………………………………………………………………………………………………………….. 14(Segment information) ………………………………………………………………………………………………………………………………………………………………. 15(Per share information) ………………………………………………………………………………………………………………………………………………………………. 20(Important subsequent events)………………………………………………………………………………………………………………………………………………… 205. Others …………………………………………………………………………………………………………………………………………………………21Status of production, orders, and sales ……………………………………………………………………………………………………………………………………… 216. Supplementary Materials ……………………………………………………………………………………………………………………………221 1. Overview of operating results (1) Overview of operating results in FY2021 (April 1, 2021 to March 31, 2022)During FY2021, the recovery in the Japanese economy was soft in some areas despite a gradual easing of the severe conditions caused by the COVID-19 pandemic. In the manufacturing industry, the recovery in capital investment and production came to a standstill, and exports remained broadly flat. Overseas, the US economy recovered and emerging countries showed signs of improvement, but the pace of recovery in China slowed. In these conditions, the Group’s net sales rose 10.1% year on year to ¥216,236 million, due to high demand for products for semiconductor production equipment and a recovery in demand for auto parts to pre-COVID-19 levels. In terms of profits, operating income rose 33.9% year on year to ¥26,264 million, ordinary income rose 43.7% year on year to ¥30,572 million, and profit attributable to owners of the parent rose 105.6% year on year to ¥22,034 million. The Company adopted the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, March 31, 2020; hereinafter the (cid:147)Accounting Standard for Revenue Recognition(cid:148)), etc. from the start of FY2021. As a result, compared with before the application of the standard, net sales in FY2021 fell ¥799 million and operating income and ordinary income both increased by ¥114 million. For details, refer to “4. Consolidated financial statements and related notes (5) Notes regarding consolidated financial statements (Changes in accounting policies),” and “4. Consolidated financial statements and related notes (5) (Segment information) Segment information 4. Matters related to changes in reporting segments, etc.” Net sales by segment for FY2021 are as follows: Sales in the Energy and Industrial Plants Division fell 7.2% year on year to ¥58,969 million, due to changes in the method of revenue recognition related to construction contracts due to application of the Accounting Standard for Revenue Recognition, etc., as well as a year-on-year decline in maintenance demand from petroleum refining, petrochemical, and electricity companies. Sales in the Industrial Products Division increased 11.6% year on year to ¥47,903 million owing to solid demand for fluororesin products and inorganic thermal insulation products driven by a recovery in the electronic components and semiconductor-related markets, and high demand for environmental products in the Chinese market. Sales in the Advanced Products Division rose 44.9% year on year to ¥36,019 million due to strong demand for semiconductors. Sales in the Autoparts Division rose 16.8% year on year to ¥44,662 million, as demand has been recovering in Japan and overseas since the third quarter of the previous fiscal year following a worldwide decline in demand in FY2020 with the spread of COVID-19. Sales in the Building Materials Division rose 7.0% year on year to ¥28,681 million due to an easing of the impact of the delay and postponement of construction projects due to the spread of the pandemic, and a recovery in demand for flooring business. (2) Overview of financial positionTotal assets at the end of FY2021 were ¥246,924 million, up ¥27,321 million compared with the end of the previous fiscal year. This was largely because cash and deposits rose by ¥14,798 million, raw materials and supplies rose by ¥3,773 million, merchandise and finished goods rose by ¥3,326 million, accounts receivable from completed construction contracts rose by ¥2,619 million, and notes and accounts receivable (cid:150) trade rose by ¥2,441 million. Liabilities at the end of FY2021 were ¥91,402 million, up ¥8,250 million compared with the end of the previous fiscal year. This was largely because notes and accounts payable (cid:150) trade rose ¥3,358 million, income taxes payable rose ¥2,336 million, and electronically recorded monetary obligations rose ¥2,180 million. Net assets at the end of FY2021 were ¥155,522 million, up ¥19,071 million compared with the end of the previous fiscal year. This was largely because retained earnings rose ¥17,023 million and foreign currency translation adjustment rose ¥1,918 million. (3) Cash flowsCash and cash equivalents at the end of FY2021 (hereinafter, (cid:147)cash(cid:148)) increased by ¥14,824 million year on year to ¥54,414 million. Cash flows and factors affecting cash flows are as follows: (Net cash provided by [used in] operating activities)Net cash provided by operating activities was ¥25,073 million (compared with receipts of ¥18,683 million in 2 FY2020).This was primarily because although cash decreased due to ¥7,172 million in income taxes paid and a ¥6,716 million increase in inventories, cash increased due to ¥30,679 million in income before income taxes, ¥6,616 million in depreciation & amortization, and a ¥3,742 million increase in notes and accounts payable (cid:150) trade. (Net cash provided by [used in] investing activities)Net cash used in investing activities was ¥5,523 million (compared with expenditures of ¥6,799 million in FY2020).This mainly reflected an increase in cash due to ¥1,857 million in proceeds from sales of property, plant and equipment, ¥1,547 million in proceeds from liquidation of affiliated companies, and a decrease in cash due to ¥9,262 million in expenditures for the acquisition of property, plant and equipment. (Net cash provided by [used in] financing activities)Net cash used in financing activities was ¥5,881 million (compared with expenditures of ¥5,469 million in FY2020).This was because of a decrease in cash due to ¥5,434 million in cash dividends paid. (4) Earnings forecastsIn FY2022, we expect solid performance in the Energy and Industrial Plants, Industrial Products, and Advanced Products segments. Based on these conditions, our earnings forecasts for FY2022 are as follows: Net sales of ¥225,000 million, operating income of ¥26,500 million, ordinary income of ¥26,500 million, and profit attributable to owners of the parent company of ¥18,000 million. The Company prepared these earnings forecasts based on the information available as of the day that these materials were released, and actual results could differ from forecasts depending on a variety of factors. (5) Policies for distribution of profit and dividends for FY2021 and FY2022In addition to strengthening the management base in order to enhance earnings power, the basic policy of the NICHIAS Group with respect to the distribution of profits is to strive for the long-term and appropriate return of profits to shareholders by expanding the level of such profits available as dividends and increasing shareholder value, while retaining sufficient reserves for reinvestment. Guided by this basic policy, we will focus on continuing to pay stable dividends, taking into account a range of factors that include the profit levels and financial conditions of the relevant fiscal year, and the availability of funds needed for capital investment and R&D to support future business development. In the (cid:147)Medium-term Management Plan(cid:148) announced today, the NICHIAS Group sets a dividend payout ratio of about 25%(cid:150)50% as its target to return profits to shareholders. In FY2021, we paid a first-half dividend of ¥42 per share and will pay year-end dividends of ¥44 per share. In FY2022, we plan to pay ¥44 per share in interim dividends and a year-end dividend of ¥44 per share, based on the above policy. However, the final decision on dividends will be made based on a comprehensive assessment of financial conditions and earnings in the next fiscal year. (6) Risk factorsThis section reviews matters that are believed likely to have a major impact on the decisions of investors. Note that matters related to future developments that are mentioned in this section are judgments of the Group that were made at the end of the fiscal year under review. (cid:1) Business and economic fluctuation risk The Group conducts manufacturing and sales of sealing materials such as gaskets and packing; manufacturing and sales of varieties of insulation materials using mainly rock wool and inorganic fibers; manufacturing and sales of corrosion-resistant materials and machine parts using high-performance resin polymer such as fluoropolymer; manufacturing and sales of automotive parts including sealing materials for engines and engine accessory parts with thermal insulation and soundproofing attributes; manufacturing and sales of non-combustible building materials centered on calcium silicate boards and insulation materials; and industrial thermal insulation work for energy, gas, petroleum refining, and petrochemicals plants, and free-access floor work. The Group(cid:146)s customers comprise a wide range of industries, including petroleum, petrochemical, chemical, steel, electricity, gas, automotive, semiconductor, and construction. The Group is therefore reliant on industry-wide capital expenditure trends, anti-corrosion materials are reliant on semiconductor demand trends, automotive parts are reliant on production and unit sales trends in the automotive industry, and building materials are reliant on residential and building construction trends. Accordingly, the Group’s earnings could ultimately be affected by business and economic fluctuations both overseas and in Japan. 3 (cid:1) Overseas business risk The Group conducts business overseas, especially in the Asian region. In its overseas business, the Group is exposed to the risk of the occurrence of unfavorable economic factors and political turbulence, such as unpredictable changes in laws and regulations or drastic changes in financial conditions. If these types of risk were to manifest themselves, it would interfere with the Group(cid:146)s business overseas, and this could affect the Group(cid:146)s earnings and financial status. (cid:1) Raw materials procurement risk The Group uses metals, coke, pulp, rubber, and fluoropolymer resin, etc. as its main raw materials. The Group’s earnings and financial condition could be impacted if changes in economic conditions or reduced supply capacity in the countries that supply these materials make it difficult for the Group to procure the necessary raw materials. (cid:1) Receivables management risk The Group holds receivables from its clients that include accounts and notes receivable. Although the Group always pays close attention to credit management, unexpected credit losses could impact the Group’s earnings and financial condition. (cid:1) Risks associated with accounting estimates The Group estimates revenue recognition related to construction contracts, recoverable amounts related to impairment accounting of noncurrent assets, and the recoverability of deferred tax assets. These estimates are based on certain assumptions about the future, and the revision of such assumptions could impact the Group’s business performance and financial position. (cid:1) Retirement benefits obligation risk The Group could incur losses if the market value of its pension assets dropped, investment returns on its pension assets fell, or if there were changes in the actuarial assumptions used to calculate the projected benefit obligations. (cid:1) Product quality maintenance risk Although the Group manufactures products based on the international quality assurance standard ISO 9001 at each of its manufacturing bases, there is no guarantee that all of its products will be free of defects and that there will be no complaints from customers in the future. Product defects could have an impact on the Group(cid:146)s reputation and as a result affect the Group(cid:146)s business performance and financial status. (cid:1) Information security risk The Group holds personal and confidential information about the Company and its customers and business partners. The Group takes measures to prevent this information leaking externally, including the maintenance of internal rules, thorough education, and strengthening of our security system. However, the Group’s earnings and financial condition could be impacted due to compensation claims and other factors if such information is leaked. (cid:1) Disaster risk The Group has multiple production bases both overseas and in Japan. In the case that product supply is interrupted, we have measures in place that consider factors such as the degree of impact on customers, the importance in the market, and the possibility of switching to alternative products. However, the Group(cid:146)s earnings and financial condition could be impacted if a natural disaster such as an earthquake were to damage one of these production bases and cause problems with business operations. (cid:1) Risk of compensation being payable to sufferers of health problems due to asbestos NICHIAS Corporation and some of its domestic subsidiaries have paid compensation in accordance with in-house regulations to employees and former employees who have died or received medical treatment in response to asbestos-related diseases caused by the Group. In addition, NICHIAS Corporation and some of its domestic subsidiaries have paid financial compensation to neighboring citizens for cases in which certain standards have been fulfilled. It is possible that the Group could continue to be required to make compensation payments to sufferers of asbestos-related health problems in the future. NICHIAS Corporation has been sued for compensation for health problems caused by asbestos, and the Company will continue to respond appropriately. 4 2. Management policies(1) The Group(cid:146)s basic management policyThe NICHIAS Group got its start in 1896 as a pioneer in Japan(cid:146)s heating and insulation industry, and has achieved its growth by supplying products and services based on its insulation and protection technologies to a range of industrial sectors. The Group established the NICHIAS Philosophy in 2011. The NICHIAS Philosophy NICHIAS contributes to the Earth(cid:146)s bright future through our Insulation and Protection technologies. Under the specific action guidelines of (cid:147)improving communications within the organization,(cid:148) (cid:147)working more cooperatively with other employees,(cid:148) and (cid:147)thinking about what is best for the entire organization,(cid:148) the Group manages its business based on the following three (cid:147)Our Promises.(cid:148) (cid:1) We will abide by community standards and work together with the communities we serve. (cid:1) We will strive for customer satisfaction while never forgetting a sense of gratitude. (cid:1) We will believe in mutual trust and continue to grow together. (2) Target management indicatorsThe Group’s medium-term management plan “Shikumi 130” ending in FY2026 (FY2022(cid:150)FY2026) was formulated based on the NICHIAS Philosophy with the aim to realize a “Bright and friendly workplace.” The numerical and environmental targets of the plan are as follows. 1) Numerical targetsNet sales (millions of yen) 240,000250,000FY2024 FY2026 Operating profit margin % ROE (%) ROIC (%) 2) Environmental targetsCO2 emissions (10,000t) Industrial waste emissions (1,000t)15.013.012.021.717.1FY2024 FY2026 * The medium-term management plan “Shikumi 130” comprises “shi,” which stands for the Japanese word “shiawase” (happiness) and underlines our desire to create mechanisms for the happiness of our employees and their families; “ku,” which stands for “kufu” (ingenuity) and our aim to resolve issues; and “mi,” which stands for “mirai” (future) and signifies our aim of sustained growth toward a bright future. Under this plan we aim to build mechanisms (“shikumi”) that can adapt to the rapid changes in the external environment and work on issues to achieve our targets for FY2026, which will be the 130th year since the company was founded. 3. Basic stance toward the selection of accounting standards The NICHIAS Group prepares its consolidated financial statements based on J-GAAP to ensure that consolidated financial statements can be compared across time. In terms of the application of IFRS, an appropriate response will be made after fully considering circumstances in Japan and overseas. 13.012.511.022.018.35 4. Consolidated financial statements and related notes (1) Consolidated balance sheetsFY2020(As of March 31, 2021)(Millions of yen)FY2021(As of March 31, 2022)Assets Current Assets from completed construction Cash and depositsNotes and accounts receivable (cid:150) tradereceivable Electronically recorded monetary claimsAccounts contractsMerchandise and finished goodsWork in processRaw materials and suppliesCosts on uncompleted construction contractsOtherAllowance for doubtful accountsTotal current assetsNoncurrent assets Property, plant and equipment Buildings and structures Accumulated depreciation and impairment loss Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation and impairment loss Machinery, equipment and vehicles, net Accumulated depreciation and impairment loss Total property, plant and equipment LandLease assetsAccumulated depreciationLease assets, netConstruction in progressOtherOther, net Intangible assets SoftwareOtherTotal intangible assetsInvestments and other assets Investment securitiesLong-term loans receivableNet defined benefit assetDeferred tax assetsOtherAllowance for doubtful accountsTotal investments and other assetsTotal noncurrent assets Total assets 6 135,645159,42239,79929,58910,50818,86915,4012,8239,5915,8513,229(18)59,520(34,880)24,64078,226(66,161)12,06414,118372(251)1204,88510,500(8,940)1,56057,3917615741,33518,37941,6351,3013,941(30)25,23083,957219,60254,59732,03110,86021,48818,7273,61813,3641,0103,742(19)62,657(36,221)26,43680,968(67,651)13,31714,821239(153)864,98311,875(9,669)2,20661,8517726351,40717,1513641,4631,3553,936(28)24,24287,502246,924Liabilities Current liabilities Notes and accounts payable (cid:150) tradeElectronically recorded monetary obligationsreceived on uncompleted construction Current portion of bondsShort-term loans payableLease obligationsAccounts payable (cid:150) otherIncome taxes payableAdvances contractsProvision for bonusesOtherTotal current liabilities Noncurrent liabilities Bonds payableLong-term loans payableLease obligationsDeferred tax liabilitiesNet defined benefit liabilityReserves for litigation lossesOtherTotal noncurrent liabilitiesTotal liabilities Net assets Shareholders’ equity Capital stockCapital surplusRetained earningsTreasury stockTotal shareholders’ equityTotal other cumulative comprehensive income Valuation difference on available-for-sale securitiesForeign currency translation adjustmentRemeasurements of defined benefit plansTotal other cumulative comprehensive incomeNon-controlling interestsTotal net assetsTotal liabilities and net assets FY2020(As of March 31, 2021)(Millions of yen)FY2021(As of March 31, 2022)19,18412,2404006,8051704,8873,7501,1883,1754,05355,85713,0003,9125112,2644,3528372,41627,29483,15112,12813,857106,880(4,056)128,8108,922(1,027)(1,275)6,6181,021136,450219,60222,54214,421-10,1451446,0476,0871903,2684,87667,72513,0006256171,9214,4674602,58423,67791,40212,12813,857123,904(4,059)145,8308,911890(1,346)8,4551,235155,522246,9247 (2) Consolidated statements of income and consolidated statements of comprehensive incomeConsolidated statements of income FY2020 (From April 1, 2020to March 31, 2021)(Millions of yen)FY2021 (From April 1, 2021to March 31, 2022)Net salesCost of salesNet sales of merchandise and finished goods Net sales of completed construction contractsTotal net sales Cost of merchandise and finished goods soldCost of sales of completed construction contractsTotal cost of salesGross profitSelling, general and administrative expenses Selling expensesGeneral and administrative expensesTotal selling, general and administrative expensesOperating incomeNon-operating incomeInterest incomeDividends incomeForeign exchange gainRent incomeEquity in earnings of affiliatesSubsidies for employment adjustmentGains on sales of investment securitiesOtherTotal non-operating incomeNon-operating expensesInterest expenses Cost of lease revenueSpecial contribution for asbestosOtherTotal non-operating expensesOrdinary incomeExtraordinary income Gain on sales of noncurrent assetsSubsidy incomeGain on liquidation of affiliatesReversal amount of reserves for litigation losses Total extraordinary incomeExtraordinary loss Loss on sales and retirement of noncurrent assets Loss on reduction of noncurrent assets Impairment lossesProvision for litigation loss reserves Loss related to COVID-19 pandemicLoss due to disastersTotal extraordinary lossesIncome before income taxes Income taxes (cid:150) currentIncome taxes (cid:150) deferred Total income taxes Net income Net income attributable to non-controlling interests Profit attributable to owners of the parent company 8 136,67759,694196,372100,67249,635150,30746,0648,19418,25326,44819,6168440436522463142085392,158170274624949421,279396206–6021341163,515479103-4,34917,5326,6431026,74510,7877110,715159,54556,691216,236115,25747,599162,85653,3808,22618,88827,11526,264814321,793559821311,1214784,679146384514037130,5721,665213111812,1793141,351246-391192,07230,6799,128(614)8,51322,16613122,034Consolidated comprehensive income statements Net incomeOther comprehensive incomeValuation difference on available-for-sale securitiesForeign currency translation adjustmentRemeasurements of defined benefit plansTotal other comprehensive incomeComprehensive incomeBreakdownComprehensive income attributable to owners of the parent companyComprehensive income attributable to minority interests(Millions of yen)FY2020 (From April 1, 2020to March 31, 2021) FY2021 (From April 1, 2021 to March 31, 2022)10,7873,317(380)5453,48214,26914,1769322,166(10)2,008(69)1,92824,09523,8712239 (3) Consolidated statements of changes in shareholders(cid:146) equity Fiscal Year 2020 (from April 1, 2020 to March 31, 2021)Balance at the beginning of the periodCumulative impact of changes in accounting policiesBalance at beginning of the period reflecting changes in accounting policiesChanges of items during the periodDividends from surplusProfit attributable to owners of the parent company Purchase of treasury stockDisposal of treasury stockNet changes of items other than shareholders(cid:146) equity Total changes of items during the period Balance at the end of the period Balance at the beginning of the periodCumulative impact of changes in accounting policiesBalance at beginning of the period reflecting changes in accounting policiesChanges of items during the periodDividends from surplusProfit attributable to owners of the parent company Purchase of treasury stockDisposal of treasury stockNet changes of items other than shareholders(cid:146) equity Total changes of items during the period Balance at the end of the period Shareholders’ equity Capital stock Capital surplusTreasury stockRetained earnings (Millions of yen)Total shareholders’ equity 12,12813,857101,206(4,053)123,13912,12813,857101,206(4,053)123,139-(5,041)10,715(3)0(5,041)10,715(0)(0)(3)0(2)-5,6735,67112,12813,857106,880(4,056)128,810Total other cumulative comprehensive income Valuation difference on available-for- sale securitiesForeign currency translation adjustment Remeasurements of defined benefit plans Total other cumulative comprehensive income Non-controlling interestsTotal net assets 5,604(624)(1,821)3,158936127,2335,604(624)(1,821)3,158936127,233-(5,041)10,715(3)03,5469,2175465463,4603,4608585(1,027)(1,275)6,6181,021136,4503,3173,3178,922(402)(402)10 Fiscal Year 2021 (from April 1, 2021 to March 31,2022)Shareholders’ equity Capital stock Capital surplusTreasury stockRetained earnings (Millions of yen)Total shareholders’ equity 12,12813,857106,880(4,056)128,81042842812,12813,857107,308(4,056)129,238Balance at the beginning of the period Cumulative impact of changes in accounting policies Balance at beginning of the period reflecting changes in accounting policiesChanges of items during the period Dividends from surplusProfit attributable to owners of the parent company Purchase of treasury stockDisposal of treasury stock Net changes of items other than shareholders(cid:146) equity Total changes of items during the period Balance at the end of the period Balance at the beginning of the period Cumulative impact of changes in accounting policies Balance at beginning of the period reflecting changes in accounting policiesChanges of items during the period Dividends from surplusProfit attributable to owners of the parent company Purchase of treasury stockDisposal of treasury stockNet changes of items other than shareholders(cid:146) equity Total changes of items during the period Balance at the end of the period (5,439)22,034(0)(3)0(5,439)22,034(3)0-(0)16,595(3)16,59112,12813,857123,904(4,059)145,830Total other cumulative comprehensive income Valuation difference on available-for- sale securitiesForeign currency translation adjustment Remeasurements of defined benefit plans Total other cumulative comprehensive income Non-controlling interestsTotal net assets 8,922(1,027)(1,275)6,6181,021136,4508,922(1,027)(1,275)6,6181,021136,879(70)(70)1,8361,836214214(1,346)8,4551,235155,522(10)(10)8,9111,9181,91889011 428(5,439)22,034(3)02,05118,643(4) Consolidated statements of cash flowsFY2020(From April 1, 2020to March 31, 2021)(Millions of yen)FY2021(From April 1, 2021to March 31, 2022)Net cash provided by (used in) operating activitiesIncome before income taxesDepreciation & amortizationImpairment lossesLoss (gain) on sales of property, plant and equipment Loss on abandonment of property, plant and equipment Loss (gain) on liquidation of affiliatesIncrease (decrease) in allowance for doubtful accountsDecrease (increase) in net defined benefit assetIncrease (decrease) in net defined benefit liabilityLoss (gain) on sales of investment securitiesIncrease (decrease) in provision for bonusesInterest and dividends income receivedInterest expenses Foreign exchange losses (gains)Decrease (increase) in notes and accounts receivable (cid:150) tradeDecrease (increase) in inventoriesDecrease (increase) in costs on uncompleted construction contractsIncrease (decrease) in notes and accounts payable (cid:150) trade Decrease (increase) in accounts receivable (cid:150) other Increase (decrease) in accounts payable (cid:150) other Increase (decrease) in advances received on uncompleted construction contractsIncrease (decrease) in provisions for litigation lossesLoss on reduction of noncurrent assets Subsidy incomeSubsidies for employment adjustment Loss related to COVID-19 pandemicLoss due to disastersOtherSubtotalInterest and dividends income receivedInterest expenses paidProceeds from subsidy incomeSubsidies for employment adjustment received Loss related to COVID-19 pandemic paidLoss due to disaster paid Income taxes paid Income taxes refundNet cash provided by (used in) operating activitiesNet cash provided by (used in) investing activitiesNet decrease (increase) in time depositsExpenditures for the acquisition of property, plant and equipmentProceeds from sales of property, plant and equipment Expenditures for the acquisition of intangible fixed assets Purchase of investment securitiesProceeds from sales of investment securities Payments of loans receivableCollection of loans receivableProceeds from liquidation of affiliated companiesOtherNet cash provided by (used in) investing activities12 17,5326,5363,515(396)133-0(460)87(208)41(488)17073(3,156)(654)(248)885331(426)(98)420116(206)(314)103-55823,850488(170)135296(55)-(6,076)21418,6831,007(8,068)434(230)(4)216(3)4-(155)(6,799)30,6796,616246(1,632)280(311)(2)171115(1,121)83(514)146(1,270)251(6,716)1703,742(151)376(86)(376)1,351(21)(131)39119(134)31,924514(149)2927(39)(73)(7,172)1325,07325(9,262)1,857(339)(6)1,212(394)41,547(167)(5,523)Cash flows from financing activities Net increase (decrease) in short-term loans payable Proceeds from long-term borrowings Repayment of long-term loans payable Redemption of bonds Repayments of lease obligations Net decrease (increase) in treasury stockCash dividends paid Dividends paid to non-controlling interests Cash flows from financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalentsCash and cash equivalents at beginning of period Cash and cash equivalents at end of period FY2020 (From April 1, 2020to March 31, 2021)(Millions of yen)FY2021 (From April 1, 2021to March 31, 2022)80615(500)(400)(214)(2)(5,040)(8)(5,469)676,48133,10839,58940120-(400)(194)(3)(5,434)(9)(5,881)1,15514,82439,58954,41413 (5) Notes regarding Consolidated Financial Statements (Notes regarding going concern assumption)Not applicable (Changes in accounting policies)(Application of the Accounting Standard for Revenue Recognition, etc.)The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, March 31, 2020; hereinafter the “Accounting Standard for Revenue Recognition”), etc. was applied from the start of FY2021. Under this standard, revenue is recognized as the amount expected to be received in exchange for goods or services when control of the promised goods or services are transferred to the customer. The main changes due to the adoption of this standard are as follows: ・Revenue recognition related to construction contracts The Company had previously used the percentage of completion method for construction when the results of work in progress could be recognized, and the completed-contract method for other construction. However, excluding construction that involves small amounts of money or will be completed in a very short period of time, we have adopted a method of recognizing revenue over a certain period of time as we meet our performance obligations. Regarding application of the Accounting Standard for Revenue Recognition, etc., in accordance with the transitional treatment stipulated in the provision of paragraph 84 of the Accounting Standard for Revenue Recognition, the cumulative impact of retroactive application of new accounting policies prior to the start of FY2021 is added to or subtracted from retained earnings at the beginning of FY2021, and the new accounting policy has been applied from the balance at the beginning of the fiscal year. As a result, in FY2021, sales fell ¥799 million, cost of sales fell ¥395 million, selling, general and administrative expenses declined ¥519 million, and operating income, ordinary income, and income before income taxes each increased by ¥114 million. In addition, the balance of retained earnings on the consolidated statements of changes in shareholders(cid:146) equity at the beginning of the period increased by ¥428 million due to the cumulative impact reflected in net assets at the start of FY2021. In FY2021, net assets per share increased by 1.21 yen and basic earnings per share increased by 1.20 yen. (Application of Accounting Standard for Fair Value Measurement, etc.)The Accounting Standard for Fair Value Measurement (Accounting Standards Board of Japan Statement No. 30, July 4, 2019; hereinafter the “Accounting Standard for Fair Value Measurement”), etc. has been applied from the beginning of FY2021. In accordance with the transitional treatment stipulated in paragraph 19 of the Accounting Standard for Fair Value Measurement and the Accounting Standard for Financial Instruments (Accounting Standards Board of Japan Statement No. 10, July 4, 2019) paragraph 44-2, the new accounting policy stipulated by the Accounting Standard for Fair Value Measurement, etc. will be applied in the future. This will not have an impact on consolidated financial statements. 14 (Segment information)Segment information 1. Overview of reporting segments (1) Method of determining reporting segments The Group(cid:146)s reporting segments are components of the Group for which separate financial information is available, and that are evaluated regularly by decision-making bodies such as the Board of Directors in order to determine the allocation of resources and in assessing performance. The Group consists of multiple business divisions in different markets, with each division conducting business based on comprehensive strategies formulated for the products and services they handle both in Japan and overseas. Accordingly, the Group is composed of segments based on these business divisions. The five reporting segments are Energy and Industrial Plants, Industrial Products, Advanced Products, Autoparts, and Building Materials. (2) Types of products and services included in each reporting segment The main businesses of each reporting segment are as follows: Name of segment Main businesses Energy and Industrial Plants Industrial Products Advanced Products Autoparts Building Materials Design, installation work, and maintenance of thermal insulation, cryogenic insulation, fireproofing, soundproofing, and disaster prevention work for plants in industries including power, petroleum refining, petrochemicals, etc.; sales of sealing materials (gaskets and packing), thermal insulation materials made of inorganic fiber, and fluoropolymer products for plant facilities in petroleum refining and petrochemicals industriesManufacturing and sales of sealing materials (gaskets and packing), inorganic fiber insulating materials, fluoropolymer molding materials and processed goods, anticorrosive lining materials, and honeycomb filters for a broad range of industries including power, gas, steel, environment, medical, and food Manufacturing and sales of fluoropolymer products, inorganic fiber insulating materials, honeycomb filters, and sealing materials for semiconductor and LCD manufacturing equipmentManufacturing and sales of automotive parts including sealing materials for engines and engine accessories, and parts with thermal insulation, noise reduction, and vibration control attributesManufacturing and sales of non-combustible interior & decorative boards composed mainly of calcium silicate, non-combustible building materials such as residential insulation with rock wool as the base material, and insulating materials; construction of fireproofing protection with non-combustible building materials for office buildings, etc.; and design and installation work of free-access floors with various flooring materials 2. The methods of calculating the amounts of net sales, income (loss), assets, liabilities, and other items by reporting segment Methods of accounting procedures for reporting business segments are generally the same as those used in the preparation of consolidated financial statements. The income of each reporting segment is an amount based on operating income. Note that intersegment sales and transfers are recorded at internal transfer prices that are reasonably calculated based on prevailing market prices. 15 3. Information on net sales, profit (loss), assets, liabilities, and other items by reporting segmentFiscal Year 2020 (from April 1, 2020 to March 31, 2021)Reporting segmentsEnergy and Industrial PlantsIndustrial ProductsAdvanced Products AutopartsBuilding MaterialsTotal(Millions of yen)Adjust-mentsNotesAmount stated in consolidatedfinancial (cid:1)statements 63,53042,92524,85538,24526,814196,372−196,372−8,296−−−8,296(8,296)−Total 63,53051,22224,85538,24526,814204,668(8,296)196,372Segment profit 7,9985,9043,6011,89421819,616−19,616Segment assets 35,69053,21121,91541,15021,481173,44946,152219,6023002,3121,1192,1226806,536−6,5361933,9713251,2216326,3441,3587,703Notes: (cid:147)Adjustments(cid:148) are described below. (1) The ¥46,152 million adjustment in (cid:147)segment assets(cid:148) consists of assets relating to Group assets that do not belong to specific reporting segments. Group assets mainly consist of the filing company(cid:146)s cash and deposits, assets attributable to the administrative and research divisions, deferred tax assets, etc. (2) The ¥1,358 million adjustment in (cid:147)increase in property, plant and equipment and intangible assets(cid:148) consists of capital investments in assets attributable to the administrative and research divisions. Net sales Net sales to external customers Intersegment sales or transfersOther items Depreciation & amortizationIncrease in property, plant and equipment and intangible assets16 Fiscal Year 2021 (from April 1, 2021 to March 31, 2022)Reporting segmentsEnergy and Industrial PlantsIndustrial ProductsAdvanced Products AutopartsBuilding MaterialsTotal(Millions of yen)Adjust- mentsNotesAmount stated in consolidatedfinancial statements58,96947,90336,01944,66228,681216,236−216,236−8,319−−−8,319(8,319)−Total 58,96956,22336,01944,66228,681224,556(8,319)216,236Segment profit 6,1648,0337,9314,03210226,264−26,264Segment assets 34,28660,10424,46845,77923,282187,92259,001246,9243272,4651,0722,1845676,616−6,616402,9569251,1814065,5085,84611,355Net sales Net sales to external customers Intersegment sales or transfersOther items Depreciation & amortizationIncrease in property, plant and equipment and intangible assets Notes: (cid:147)Adjustments(cid:148) are described below. (1) The ¥59,001 million adjustment in (cid:147)segment assets(cid:148) consists of assets relating to Group assets that do not belong to specific reporting segments. Group assets mainly consist of the filing company(cid:146)s cash and deposits, assets attributable to the administrative and research divisions, deferred tax assets, etc. (2) The ¥5,846 million adjustment in (cid:147)increase in property, plant and equipment and intangible assets(cid:148) consists of capital investments in assets attributable to the administrative and research divisions. 4. Matters related to changes in reporting segments, etc. As noted in the changes in accounting policies, we have applied the Accounting Standard for Revenue Recognition, etc. from the start of FY2021, and due to the change in the accounting method for revenue recognition, the method for calculating profit or loss for business segments has been changed in the same manner. As a result, compared with under the previous accounting method, in FY2021, Energy and Industrial Plants sales decreased by ¥347 million and segment profit rose by ¥99 million, Industrial Products sales decreased by ¥189 million, and segment profit decreased by ¥0, Advanced Products sales decreased by ¥121 million, and segment profit decreased by ¥1 million, Autoparts segment profit rose by ¥1 million, Building Materials sales decreased by ¥141 million, and segment profit rose by ¥15 million. 17 (Related information)Fiscal Year 2020 (from April 1, 2020 to March 31, 2021)1. Information by product and service 2. Information by region (1) SalesInformation by product and service is omitted, because similar information is provided in (cid:147)segment information.(cid:148) Japan Asia Other Total 162,797 26,216 7,358 196,372 Note: Net sales are based on the customer(cid:146)s location and are divided by country and region. (2) Property, plant and equipment(Millions of yen)(Millions of yen)Japan Asia Other Total 45,354 10,469 1,566 57,391 3. Information on main customers Because there are no customers that account for over 10% of sales stated in the consolidated statements of income for sales to external customers, this information is omitted. Fiscal Year 2021 (from April 1, 2021 to March 31, 2022)1. Information by product and service Information by product and service is omitted, because similar information is provided in (cid:147)segment information.(cid:148) 2. Information by region (1) SalesJapan Asia Other Total 175,93231,8138,491216,236Note: Net sales are based on the customer(cid:146)s location and are divided by country and region. (2) Property, plant and equipment(Millions of yen)(Millions of yen)Japan Asia Other Total 48,90711,2781,66561,8513. Information on main customers Because there are no customers that account for over 10% of sales stated in the consolidated statements of income for sales to external customers, this information is omitted. 18 (Information related to impairment losses on noncurrent assets by reporting segment)Fiscal Year 2020 (from April 1, 2020 to March 31, 2021)Reporting segments Energy and Industrial Plants Industrial ProductsAdvanced ProductsIndustrial ProductsAutopartsBuilding MaterialsTotal AdjustmentsImpairment losses(cid:2)2,998431(cid:2)843,515(cid:2)3,515Fiscal Year 2021 (from April 1, 2021 to March 31, 2022)Reporting segments Energy and Industrial Plants Industrial ProductsAdvanced ProductsIndustrial ProductsAutopartsBuilding MaterialsTotal AdjustmentsImpairment losses(cid:2)246(cid:2)(cid:2)(cid:2)246(cid:2)246(Millions of yen)Amount stated in consolidatedfinancial statements(Millions of yen)Amount stated in consolidatedfinancial statements19 Item Item (Per share information)Net assets per share and the basis for calculation, and basic earnings per share and the basis for calculation are as follows: FY2020 (As of March 31, 2021)FY2021 (As of March 31, 2022)2,041.632,325.95Net assets per share (Basis for calculation)Total net assets (millions of yen) 136,450155,522Amount to be deducted from total net assets (millions of yen) (Of which, non-controlling interests)Net assets attributable to common shares at the end of the fiscal year (millions of yen)Number of common shares at the end of the fiscal year used for the calculation of net assets per share (thousand shares)1,021(1,021)135,42966,3331,235(1,235)154,28666,332FY2020 (From April 1, 2020to March 31, 2021)FY2021 (From April 1, 2021to March 31, 2022)161.53332.18Basic earnings per share (Basis for calculation)Net income attributable to owners of the parent company (millions of yen)Amount not attributed to common shareholders (millions of yen)Profit attributable to owners of the parent company related to common stock (millions of yen)Average outstanding shares of common stock during the fiscal year (thousand shares)Notes: Diluted earnings per share is not noted because there is no potential share. 10,715−10,71566,33422,034−22,03466,333(Important subsequent events)Not applicable 20 5. OthersStatus of production, orders, and sales1. Production output by segment Fiscal Year 2020 (from April 1, 2020 to March 31, 2021)Fiscal Year 2021 (from April 1, 2021 to March 31, 2022)Change over the previous fiscal year (%)FY2021 Composition ratio (%)(Millions of yen, %)Name of segment Industrial Products Advanced Products Autoparts Building Materials Total 2. Orders by segment Name of segment Energy and Industrial PlantsIndustrial Products Advanced Products Autoparts Building Materials 3. Net sales by segment Name of segment Energy and Industrial PlantsIndustrial Products Advanced Products Autoparts Building Materials 33,176 16,701 32,017 8,401 90,296 61,014 43,638 27,089 38,867 28,864 63,530 42,925 24,855 38,245 26,814 Fiscal Year 2020 (from April 1, 2020 to March 31, 2021)Fiscal Year 2021 (from April 1, 2021 to March 31, 2022)Change over the previous fiscal year (%)FY2021 Composition ratio (%)(Millions of yen, %)Total 199,473 231,243 Fiscal Year 2020 (from April 1, 2020 to March 31, 2021)Fiscal Year 2021 (from April 1, 2021 to March 31, 2022)Change over the previous fiscal year (%)FY2021 Composition ratio (%)(Millions of yen, %)Total 196,372 216,236 13.8 47.6 19.5 2.5 21.0 (1.8) 16.8 64.6 19.7 1.3 15.9 (7.2) 11.6 44.9 16.8 7.0 10.1 34.6 22.6 35.0 7.9 100.0 25.9 22.0 19.3 20.1 12.6 100.0 27.3 22.2 16.7 20.7 13.3 100.0 37,759 24,648 38,263 8,615 109,286 59,916 50,979 44,591 46,514 29,242 58,969 47,903 36,019 44,662 28,681 21 6. Supplementary Materials Financial results supplementary materials (1) Key consolidated financial figures (Trends) (Percentage figures represent changes from previous fiscal year)(Millions of yen)Full Year FY2017ResultFY2018ResultFY2019ResultFY2020ResultFY2021 FY2022 Result ChangeForecastChangeNet sales197,495215,495208,876196,372216,23610.1% 225,000Operating income21,35722,62920,42719,61626,26433.9%26,500Operating margin (%) 10.8%10.5%9.8%10.0%12.1%Ordinary income21,80423,17121,63321,27930,57243.7%26,500(13.3)%Ordinary income margin (%)11.0%10.8%10.4%10.8%14.1%14,95615,86114,67410,71522,034105.6%18,000(18.3)%Net income margin (%) 7.6%7.4%7.0%5.5%10.2%8.0%Profit attributable toowners of the parentBasic earnings per share (yen)222.73238.70221.21161.53 332.18105.6%271.36(18.3)%Total assets Net assets 196,459206,426208,076219,602246,92412.4%109,705117,774127,233136,450155,52214.0%Shareholders’ equity109,195116,786126,297135,429154,28613.9%Equity ratio (%)55.6%56.6%60.7%61.7%62.5%Interest-bearing debt23,81826,06526,07725,86125,652(0.8)%Interest-bearing debt ratio (%)12.1%12.6%12.5%11.8%10.4%4.1%0.9%−−−−11.8%11.8%−−−−−−8,9786,2746,132Capital expenditures 12,77212,8167,70311,35547.4%10,000(11.9)%Depreciation & amortizationR&D expenses 4,8005,6925,7605,9766,5366,1686,6161.2%7,0005.8%6,110(0.9)%6,000(1.8)%*1 The Company has applied the “Partial Amendments to ‘Accounting Standard for Tax Effect Accounting’” (Accounting Standards Board of Japan Statement No. 28, February 16, 2018) beginning in FY2018. These accounting standards have been retroactively applied to the figures for major management indicators for FY2017. *2 The Company carried out a reverse stock split on a one-for-two basis on October 1, 2018. Basic earnings per share are calculated based on the assumption that the reverse stock split was carried out at the beginning of FY2017. *3 The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, March 31, 2020), etc. has been applied from the beginning of FY2021, and major management indicators, etc., for FY2021 reflect the application of these accounting standards.(2) Quarterly consolidated operating results (Trends)FY2020 (Millions of yen)FY2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ChangeNet sales 43,04846,32249,30057,70052,27251,25356,29456,416(2.2)%Operating income 3,3335,2087,2706,6006,0717,3996,193(14.8)%Operating margin (%) 7.2%10.6%12.6%12.6%11.8%13.1%11.0%Ordinary income4,3805,4128,1667,2086,6868,1848,4924.0%Ordinary income margin (%)9.5%11.0%14.2%13.8%13.0%14.5%15.1%3,8038.8%3,3207.7%Profit attributable toowners of the parent1,8292,8363,7922,2575,4164,8325,7286,056168.3%Net income margin (%) 4.3%6.1%7.7%3.9%10.4%9.4%10.2%10.7%All forecasts and plans that are not historical facts in this document are future business results-related forecasts. These are based on information and data currently available to the company, and various uncertain factors could cause actual results to differ.22
