Date: April 26, 2023

Summary of Consolidated Financial Statements of Fiscal 2022

(12 Months Ended March 31, 2023 (IFRS Basis))

Listed company name:

Nitto Denko Corporation

Stock exchange listing:

Tokyo Stock Exchange, Prime Market

Code Number:

6988

URL

https://www.nitto.com/

Company Representative:

Hideo Takasaki, President

Contact Person:

Yasuhiro Iseyama, Executive Vice President, Director of Corporate Accounting & Finance Division

Phone:

+81-6-7632-2101

Date of the general shareholders' meeting

June 23, 2023

Estimated starting date of dividend paying

June 26, 2023

Filing date of financial statements

June 23, 2023

Preparation of supplementary explanatory materials: Holding of quarterly earnings release conference:

Yes

Yes (for investment analysts and institutional investors)

(All monetary values noted herein are rounded down to the nearest million yen)

1. Consolidated financial results of Fiscal 2022 (April 1, 2022 through March 31, 2023)

(1) Operating results

(% of change from same period in the previous year)

Net income

Total

Operating

Income before

attributable to

Revenue

Net income

comprehensive

income

income taxes

owners of the

income

parent company

Fiscal 2022 Fiscal 2021

Millions of yen 929,036 853,448

%

8.9

12.1

Millions of yen 147,173 132,260

%

11.3

41.0

Millions of yen 146,840 132,378

%

10.9

41.9

Millions of yen 109,264 97,234

%

12.4

38.3

Millions of yen 109,173 97,132

%

12.4

38.3

Millions of yen 137,177 136,323

%

0.6

51.8

Basic earnings per

share

Diluted earnings per

share

Return on equity

attributable to owners of the parent company

Net income to total

assets

Operating income to

revenue

Fiscal 2022 Fiscal 2021

Yen 738.77 656.31

Yen 738.48 656.00

%

12.7

12.6

%

13.1

12.8

%

15.8

15.5

(Reference) Equity in earnings of affiliates: (Fiscal 2022) 29 million yen (Fiscal 2021) 42 million yen

(2) Financial position

Equity attributable to

Ratio of equity

Equity attributable to

Total assets

Total equity

attributable to owners

owners of the parent

of the parent company

owners of the parent

company

company per share

to total assets

March 31, 2023 March 31, 2022

Millions of yen 1,153,647 1,094,469

Millions of yen 903,194 822,105

Millions of yen 902,211 821,192

%

78.2

75.0

Yen 6,183.01 5,548.09

(3) Cash flows

Cash flows from

operating activities

Cash flows from

investing activities

Cash flows from

financing activities

Cash and cash

equivalents

at the end of period

Fiscal 2022 Fiscal 2021

Millions of yen 181,702 144,489

Millions of yen -159,906-57,594

Millions of yen -57,627-36,639

Millions of yen 329,966 362,046

2. Dividends

Dividends per share

Dividend

Dividends to equity

Dividends total

attributable to

payout ratio

owners of the

(Annual)

1Q

2Q

3Q

Year-end

Annual

(Consolidated)

parent company

(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

March, 2022

-

110.00

-

110.00

220.00

32,561

33.5

4.2

March, 2023

-

120.00

-

120.00

240.00

35,274

32.5

4.1

(Forecast)

-

130.00

-

130.00

260.00

34.5

March, 2024

3. Forecast of Fiscal 2023 (April 1, 2023 through March 31, 2024)

(% of change from same period in the previous year)

Net income

Revenue

Operating income

Income before

Net income

attributable to

Basic earnings

income taxes

owners of the

per share

parent company

Millions

%

Millions

%

Millions

%

Millions

%

Millions

%

Yen

of yen

of yen

of yen

of yen

of yen

First half

440,000

-9.3

62,000

-32.8

62,000

-32.6

44,000

-30.6

44,000

-30.6

301.54

Annual

935,000

0.6

150,000

1.9

150,000

2.2

110,000

0.7

110,000

0.8

753.85

  • Others
    1. Changes in significant subsidiaries during this fiscal year: No
    2. Changes in accounting policies applied and changes in accounting estimates
      1. Changes in accounting policies required by IFRS: No
      2. Changes in accounting policies other than the above: No
      3. Changes in accounting estimates: No
    4. Number of shares outstanding (Common stock)
      1. Number of shares outstanding at the end of the period (including treasury stock)

March, 2023:

149,758,428

March, 2022:

149,758,428

2.

Number of treasury stock at the end of the period

March, 2023:

3,840,554

March, 2022:

1,744,778

3.

Average number of outstanding shares during the period (cumulative from the beginning of the period)

Fiscal 2022: 147,776,367

Fiscal 2021: 147,996,116

(Reference) Non-consolidated financial results of Fiscal 2022 (April 1, 2022 through March 31, 2023)

(1) Operating results

(% of change from previous year)

Net sales

Operating income

Ordinary income

Net income

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Fiscal 2022

544,158

5.2

97,204

43.2

113,735

32.3

91,368

38.8

Fiscal 2021

517,458

7.5

67,868

30.7

85,963

23.6

65,815

26.9

Net income per share

Net income per share

- Basic

-Diluted

Yen

Yen

Fiscal 2022

618.29

618.04

Fiscal 2021

444.71

444.50

(2) Financial position

Total assets

Net assets

Shareholders'

equity to total assets

Net assets per share

Millions of yen

Millions of yen

%

Yen

March 31, 2023

760,758

523,833

68.8

3,587.59

March 31, 2022

729,581

487,646

66.8

3,292.16

(Reference) Shareholders' equity: (March 31, 2023) 523,492 million yen (March 31, 2022) 487,285 million yen

  • This summary is not subject to audit procedures by Certified Public Accountants or audit firm.
  • Explanations for adequate utilization of the forecast and other special matters

The forward-looking statements shown in this report, including the forecast, are prepared based on information available to the Company and on certain assumptions deemed reasonable as of the issuing date of the report. Consequently, the statements herein do not constitute promises regarding actual results by the Company. Actual results may differ materially from forecasted figures due to various unknown factors. For conditions regarding this forecast and precaution for use, please refer to "1. Summary of Operating Results, Etc. (2) Outlook for the fiscal year ending March 31, 2024" on page 5 of the Attachment to this summary of consolidated financial results.

(Attached Documents)

Index

1. Summary of Operating Results, etc

2

(1)

Summary of consolidated operating results and financial position during the fiscal year ended March 31, 2023

2

(2)

Outlook for the fiscal year ending March 31, 2024

5

(3)

Dividend policy and dividends for the current and next fiscal years

6

2. Basic Approach to Selection of Accounting Standards

6

3. Consolidated Financial Statements and Key Notes

7

(1)

Consolidated statements of financial position

7

(2)

Consolidated statements of income and consolidated statements of comprehensive income

9

(3)

Consolidated statements of changes in equity

11

(4)

Consolidated statements of cash flows

13

(5)

Notes on consolidated financial statements

14

(Notes on going concern assumption)

14

(Segment information)

14

(Business combination)

17

(Assets held for sale and directly related liabilities)

20

(Per share information)

20

(Notes in cases where there was a substantial change in the amount of shareholders' equity)

20

(Impairment losses)

21

(Significant subsequent events)

21

- 1 -

1. Summary of Operating Results, etc

  1. Summary of consolidated operating results and financial position during the fiscal year ended March 31, 2023
    • Summary of operating results during the fiscal year ended March 31, 2023

Summary of overall business

The economic environment in fiscal 2022 saw a rise in energy and primary commodity prices triggered by Russia's military invasion of Ukraine. In addition, the sharp monetary tightening aimed at curbing inflation, particularly in the United States, caused some banks' bankruptcy, financial instability spread. In China, COVID-19 transmission and protective measures such as urban lockdowns were implemented. The global economy experienced a significant slowdown in growth rates in major regions. In the foreign exchange market, the yen depreciated sharply due to the widening interest rate differential between Japan and the United States.

Under this circumstance, demand of products for high-end smartphones, which the Group is focusing on, and products for automotive displays, in which remarkable evolution has been seen in recent years, increased. Demand for automotive materials increased moderately with a recovery in automobile production. Meanwhile, demand of products for high-end laptops and data centers, which had been strong, declined due to the completion of demand of staying at home by the lifting of COVID-19 restrictions in the U.S. and European countries. In addition, demand for immunologic adjuvants for vaccines declined as the global COVID-19 cases stabilized.

The yen's exchange rate against the U.S. dollar for the fiscal year ended March 31, 2023, was 134.7 yen to the dollar, a 20.5% depreciation of the yen compared with the same period of the previous year, and the effect of the weaker yen increased operating income by 69.5 billion yen.

As a result of the above, revenue increased by 8.9% from the same period of the previous year (changes hereafter are given in comparison with the same period of the previous year) to 929,036 million yen. Operating income increased by 11.3% to 147,173 million yen, income before income taxes increased by 10.9% to 146,840 million yen, net income increased by 12.4% to 109,264 million yen, and net income attributable to owners of the parent company increased by 12.4% to 109,173 million yen.

Summary of results by segment

(Industrial Tape)

For Functional Base Products, revenue increased from the previous fiscal year. In automotive materials, the impact of semiconductor shortages eased, and demand increased due to a recovery in automobile production. On the other hand, demand for process materials of semiconductors and ceramic capacitors used in electronic equipment declined due to deteriorating market conditions. In addition, the Group reduced the impact of rising raw material and transportation costs due to rising crude oil prices offset by sales prices and rationalization. In the automotive materials business, the Group agreed to transfer a portion of NVH (Noise, Vibration, Harshness) business to Parker Corporation and recorded an impairment loss on a portion of the related assets.

As a result of the above, revenue increased by 6.3% to 339,433 million yen and operating income decreased by 27.1% to 27,553 million yen.

(Optronics)

In Information Fine Materials, revenue increased from the previous fiscal year. Demand of optical films for automotive applications, on which the Group is focusing, increased, while demand of optical films for TV and high-end laptops declined due to deteriorating market conditions. In addition, optical films for Virtual Reality (VR) expanded its manufacturing capacity for future business expansion. The Group recorded loss related to a fire at its consolidated subsidiary Korea Optical Hight Tech Co. Ltd., occurred on October 4, 2022.

In Flexible Printed Circuits, revenue increased from the previous fiscal year. In high-precision circuits for high-end smartphones, result was driven by an increase in the number of models installed, while demand for CIS (Circuit Integrated Suspension) for data centers decreased due to an adjustment in HDD (Hard Disk Drives) market.

As a result of the above, revenue increased by 5.0% to 482,432 million yen and operating income increased by 34.4% to 129,867 million yen.

- 2 -

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Nitto Denko Corporation published this content on 12 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2023 07:12:02 UTC.