Appendix
TOKYO OHKA KOGYO CO., LTD. and Subsidiaries
Fiscal year ended December 31, 2023 (January 1, 2023 ― December 31, 2023)
Consolidated financial statements,
Notes to consolidated financial statements
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TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Balance Sheet
December 31, 2023 and 2022
Thousands of | |||||||||
Millions of yen | U.S. dollars | ||||||||
Assets | (Note 1) | ||||||||
2023 | 2022 | 2023 | |||||||
Current assets: | |||||||||
Cash and deposits (Notes 6 and 16) | ¥ | 41,788 | ¥ | 39,856 | $ | 296,371 | |||
Time deposits (Note 16) | 15,027 | 15,514 | 106,581 | ||||||
Trade notes receivable (Note 16) | 916 | 911 | 6,498 | ||||||
Accounts receivable (Note 16) | 32,982 | 34,900 | 233,919 | ||||||
Securities (Notes 6, 7 and 16) | 3,999 | 3,999 | 28,368 | ||||||
Inventories (Note 8) | 33,083 | 30,006 | 234,631 | ||||||
Prepaid expenses and other current assets | 6,604 | 5,535 | 46,840 | ||||||
Allowance for doubtful accounts | (74) | (89) | (528) | ||||||
Total current assets | 134,328 | 130,636 | 952,682 | ||||||
Property, plant and equipment (Note 9): | |||||||||
Land | 10,687 | 10,570 | 75,800 | ||||||
Buildings and structures | 90,161 | 83,665 | 639,440 | ||||||
Machinery, equipment and vehicles | 69,382 | 68,318 | 492,073 | ||||||
Tool, furniture, and fixtures | 26,669 | 26,873 | 189,142 | ||||||
Right-of-use assets | 759 | 1,060 | 5,384 | ||||||
Construction in progress accounts | 5,653 | 3,565 | 40,094 | ||||||
Subtotal | 203,313 | 194,054 | 1,441,936 | ||||||
Accumulated depreciation | (130,078) | (128,044) | (922,539) | ||||||
Net property, plant and equipment | 73,235 | 66,010 | 519,397 | ||||||
Investments and other assets: | |||||||||
Intangible assets | 1,389 | 1,295 | 9,852 | ||||||
Investment securities (Notes 7 and 16) | 20,777 | 16,097 | 147,360 | ||||||
Investments in and advances to an unconsolidated subsidiary and | |||||||||
associated companies | 1,996 | 7 | 14,158 | ||||||
Investments in capital | 88 | 100 | 629 | ||||||
Assets pertaining to retirement and severance benefits (Note 11) | 4,267 | 3,682 | 30,262 | ||||||
Deferred tax assets (Note 14) | 1,299 | 1,176 | 9,218 | ||||||
Long-term time deposit (Note 16) | 12,000 | 18,000 | 85,106 | ||||||
Other assets | 2,482 | 1,069 | 17,605 | ||||||
Total investments and other assets | 44,301 | 41,429 | 314,193 | ||||||
Assets total | ¥ | 251,864 | ¥ | 238,075 | $ | 1,786,273 | |||
1
Thousands of | |||||||||
Millions of yen | U.S. dollars | ||||||||
Liabilities and net equity | (Note 1) | ||||||||
2023 | 2022 | 2023 | |||||||
Current liabilities: | |||||||||
Trade notes and accounts payable (Note 16) | ¥ | 20,331 | ¥ | 21,617 | $ | 144,192 | |||
Short-term loans payable | 486 | － | 3,450 | ||||||
Construction and other arrears | 8,259 | 8,114 | 58,579 | ||||||
Income taxes payable | 1,391 | 3,308 | 9,869 | ||||||
Accrued expenses | 2,314 | 2,720 | 16,414 | ||||||
Allowance for doubtful receivables | 2,733 | 3,322 | 19,385 | ||||||
Other current liabilities | 3,110 | 1,698 | 22,063 | ||||||
Total current liabilities | 38,627 | 40,781 | 273,955 | ||||||
Non-current liabilities: | |||||||||
Long-term loans payable (Note 10 and 16) | 10,000 | 10,222 | 70,921 | ||||||
Deferred tax liabilities (Note 14) | 3,704 | 1,084 | 26,273 | ||||||
Liabilities pertaining to retirement and severance benefits (Note 11) | 809 | 853 | 5,737 | ||||||
Asset retirement obligation | 81 | 80 | 576 | ||||||
Other non-current liabilities | 3,161 | 4,092 | 22,423 | ||||||
Total non-current liabilities | 17,756 | 16,333 | 125,932 | ||||||
Equity (Notes 12 and 19): | |||||||||
Common stock | |||||||||
-Common shares | |||||||||
-Total number of shares authorized: 197,000,000 shares (2023 and 2022) | |||||||||
-Total number of shares issued: 42,600,000 shares (2023 and 2022) | 14,640 | 14,640 | 103,832 | ||||||
Capital surplus | 15,315 | 15,303 | 108,623 | ||||||
Retained earnings | 143,630 | 137,551 | 1,018,658 | ||||||
Treasury stock-2,245,134 shares (2023), 2,321,258 shares (2022) | (10,940) | (11,276) | (77,590) | ||||||
Accumulated other comprehensive income | |||||||||
Other securities valuation difference | 9,759 | 5,280 | 69,213 | ||||||
Foreign currency translation adjustment | 11,603 | 8,877 | 82,291 | ||||||
Adjustment cumulative total pertaining to retirement and severance benefits | (354) | (630) | (2,514) | ||||||
Subtotal | 183,654 | 169,745 | 1,302,515 | ||||||
Stock acquisition right | 140 | 174 | 997 | ||||||
Non-controlling interest | 11,684 | 11,039 | 82,871 | ||||||
Net assets total | 195,480 | 180,960 | 1,386,384 | ||||||
Total | ¥ | 251,864 | ¥ | 238,075 | $ | 1,786,273 | |||
(Note) The Company conducted a three-for-one stock split of common shares on January 1, 2024. The above number of shares is stated as the number of shares before the stock split.
See notes to consolidated financial statements.
2
TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Income
Years Ended December 31, 2023 and 2022
Thousands of | |||||||||
Millions of yen | U.S. dollars | ||||||||
(Note 1) | |||||||||
2023 | 2022 | 2023 | |||||||
Net sales | ¥ | 162,270 | ¥ | 175,434 | $ | 1,150,853 | |||
Cost of sales (Note 15) | 104,319 | 112,319 | 739,855 | ||||||
Gross profit | 57,950 | 63,115 | 410,997 | ||||||
Selling, general, and administrative expenses (Note 15) | 35,243 | 32,934 | 249,956 | ||||||
Operating income | 22,706 | 30,181 | 161,041 | ||||||
Other income/expenses: | |||||||||
Interest receivable | 353 | 150 | 2,506 | ||||||
Dividend receivable | 599 | 494 | 4,248 | ||||||
Investment income based on equity method | 6 | － | 43 | ||||||
Exchange profit (loss) | 198 | 280 | 1,407 | ||||||
Interest expense | (81) | (73) | (580) | ||||||
Loss on valuation of derivatives | (69) | (326) | (492) | ||||||
Gain on the sale of fixed assets | 220 | 14 | 1,563 | ||||||
Gain on the sale of investment securities | 103 | 243 | 735 | ||||||
Loss on impairment (Note 9) | － | (195) | － | ||||||
Loss on the retirement of fixed assets | (147) | (239) | (1,043) | ||||||
Loss on sale of shares of affiliated companies | (837) | － | (5,937) | ||||||
Loss on business transfer | (1,720) | － | (12,199) | ||||||
Others | 586 | 260 | 4,158 | ||||||
Other income/expenses | (788) | 608 | (5,591) | ||||||
Income before income taxes | 21,918 | 30,790 | 155,450 | ||||||
Corporate income tax, resident tax, and business tax (Note 14): | |||||||||
Current fiscal year | 5,332 | 7,537 | 37,820 | ||||||
Deferred | 532 | 97 | 3,777 | ||||||
Corporate income tax total | 5,865 | 7,634 | 41,597 | ||||||
Net income before non-controlling interests | 16,053 | 23,155 | 113,852 | ||||||
Non-controlling interests in net income | 3,340 | 3,461 | 23,692 | ||||||
Profit attributable to owners of the parent | ¥ | 12,712 | ¥ | 19,693 | $ | 90,159 | |||
3
TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Income
Years Ended December 31, 2023 and 2022
Yen | U.S. dollars | ||||||||
2023 | 2022 | 2023 | |||||||
Per share of common stock (Notes 12 and 19): | |||||||||
Basic earnings per share | ¥ | 105.10 | ¥ | 163.18 | $ | 0.74 | |||
Diluted earnings per share | 104.97 | 162.93 | 0.74 | ||||||
Cash dividends attributable to the year | 168.00 | 160.00 | 1.19 |
See notes to consolidated financial statements.
4
TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Comprehensive Income
Years Ended December 31, 2023 and 2022
Thousands of | ||||||||
Millions of yen | U.S. dollars | |||||||
(Note 1) | ||||||||
2023 | 2022 | 2023 | ||||||
Net income before non-controlling interests | ¥ | 16,053 | ¥ | 23,155 | $ | 113,852 | ||
Other comprehensive income (Note 18): | ||||||||
Unrealized gain on available-for-sale securities | 4,479 | (1,571) | 31,766 | |||||
Foreign currency translation adjustment | 3,410 | 3,649 | 24,185 | |||||
Remeasurements of defined benefit plans | 276 | (1,153) | 1,959 | |||||
Other comprehensive income total | 8,165 | 923 | 57,911 | |||||
Comprehensive income | ¥ | 24,218 | ¥ | 24,079 | $ | 171,764 | ||
(Breakdown) | ||||||||
Owners of the parent | ¥ | 20,193 | ¥ | 20,226 | $ | 143,219 | ||
Non-controlling interests | 4,024 | 3,852 | 28,544 |
See notes to consolidated financial statements.
5
TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Changes in Equity
Years Ended December 31, 2023 and 2022
Thousand shares | Millions of yen | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of | comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Foreign | Remeasurements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
shares of | securities | currency | of | Subscription | Non- | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
common shares | Share | Capital | Retained | Treasury | valuation | translation | defined benefit | rights to | controlling | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
outstanding | capital | surplus | earnings | shares | difference | adjustment | plans | Subtotal | shares | interest | equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
(As of January 1, 2022) | 40,160 | ¥ | 14,640 | ¥ | 15,207 | ¥ | 124,806 | ¥ | (11,818) | ¥ | 6,851 | ¥ | 5,618 | ¥ | 522 | ¥ | 155,829 | ¥ | 215 | ¥ | 9,146 | ¥ | 165,190 | |||||||||||||||||||||||||||||||||||||||
Profit attributable to owners of the parent | － | － | － | 19,693 | － | － | － | － | 19,693 | － | － | 19,693 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid: | (3,794) | (3,794) | (3,794) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Previous fiscal year-end: 94 yen | － | － | － | － | － | － | － | － | － | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Q2-end: 78 yen | － | － | － | (3,153) | － | － | － | － | (3,153) | － | － | (3,153) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | 0 | － | － | － | (0) | － | － | － | (0) | － | － | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of treasury stock | 118 | － | 95 | － | 542 | － | － | － | 638 | (40) | － | 598 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in items other than shareholders' equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
during the year | － | － | － | － | － | (1,571) | 3,258 | (1,153) | 533 | － | 1,893 | 2,426 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(As of December 31, 2022) | 40,278 | ¥ | 14,640 | ¥ | 15,303 | ¥ | 137,551 | ¥ | (11,276) | ¥ | 5,280 | ¥ | 8,877 | ¥ | (630) | ¥ | 169,745 | ¥ | 174 | ¥ | 11,039 | ¥ | 180,960 | |||||||||||||||||||||||||||||||||||||||
Profit attributable to owners of the parent | － | － | － | 12,712 | － | － | － | － | 12,712 | － | － | 12,712 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid: | (3,315) | (3,315) | (3,315) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Previous fiscal year-end:82 yen | － | － | － | － | － | － | － | － | － | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Q2-end: 82 yen | － | － | － | (3,317) | － | － | － | － | (3,317) | － | － | (3,317) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | 0 | － | － | － | (2) | － | － | － | (2) | － | － | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of treasury stock | 76 | － | 12 | － | 338 | － | － | － | 350 | (34) | － | 316 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in items other than shareholders' equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
during the year | － | － | － | － | － | 4,479 | 2,726 | 276 | 7,481 | － | 645 | 8,126 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(As of December 31, 2023) | 40,354 | ¥ | 14,640 | ¥ | 15,315 | ¥ | 143,630 | ¥ | (10,940) | ¥ | 9,759 | ¥ | 11,603 | ¥ | (354) | ¥ | 183,654 | ¥ | 140 | ¥ | 11,684 | ¥ | 195,480 |
(Note) The Company conducted a three-for-one stock split of common shares on January 1, 2024. The above number of shares and dividend per share are stated as the number of shares and amount before the stock split, respectively.
6
TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Changes in Equity
Years Ended December 31, 2023 and 2022
Thousands of U.S. dollars (Note 1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized | Foreign | Remeasurements | |||||||||||||||||||||||||||||||||||||||||||||||||||
gain on | currency | of | Subscription | Non- | |||||||||||||||||||||||||||||||||||||||||||||||||
Common | Capital | Retained | Treasury | available-for-sale | translation | defined benefit | rights to | controlling | Total | ||||||||||||||||||||||||||||||||||||||||||||
stock | surplus | earnings | stock | securities | adjustment | plans | Subtotal | shares | interest | equity | |||||||||||||||||||||||||||||||||||||||||||
(As of December 31, 2022) | $ | 103,832 | $ | 108,536 | $ | 975,542 | $ | (79,972) | $ | 37,447 | $ | 62,957 | $ | (4,474) | $ | 1,203,870 | $ | 1,240 | $ | 78,295 | $ | 1,283,405 | |||||||||||||||||||||||||||||||
Profit attributable to owners of the parent | － | － | 90,159 | － | － | － | － | 90,159 | － | － | 90,159 | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid: | (23,514) | (23,514) | (23,514) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Previous year-end: USD 0.58 | － | － | － | － | － | － | － | － | |||||||||||||||||||||||||||||||||||||||||||||
Q2-end: USD 0.58 | － | － | (23,529) | － | － | － | － | (23,529) | － | － | (23,529) | ||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | － | － | － | (19) | － | － | － | (19) | － | － | (19) | ||||||||||||||||||||||||||||||||||||||||||
Disposal of treasury stock | － | 87 | － | 2,401 | － | － | － | 2,488 | (242) | － | 2,246 | ||||||||||||||||||||||||||||||||||||||||||
Net change in items other than shareholders' equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
during the year | － | － | － | － | 31,766 | 19,333 | 1,959 | 53,059 | － | 4,576 | 57,636 | ||||||||||||||||||||||||||||||||||||||||||
(As of December 31, 2023) | $ | 103,832 | $ | 108,623 | $ | 1,018,658 | $ | (77,590) | $ | 69,213 | $ | 82,291 | $ | (2,514) | $ | 1,302,515 | $ | 997 | $ | 82,871 | $ | 1,386,384 | |||||||||||||||||||||||||||||||
See notes to consolidated financial statements.
7
TOKYO OHKA KOGYO CO., LTD. And Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Years Ended December 31, 2023 and 2022
Thousands of | ||||||||
Millions of yen | U.S. dollars | |||||||
(Note 1) | ||||||||
Cash flows from operating activities: | 2023 | 2022 | 2023 | |||||
Income before income taxes | ¥ | 21,918 ¥ | 30,790 | $ | 155,450 | |||
Adjustments for: | ||||||||
Depreciation and amortization | 7,713 | 6,762 | 54,706 | |||||
Impairment loss on long-lived assets | － | 195 | － | |||||
Decrease in allowance for doubtful receivables | (10) | (31) | (77) | |||||
Increase (decrease) in provision for bonuses | (557) | 593 | (3,955) | |||||
Decrease in provision for officer bonuses | (18) | (401) | (134) | |||||
Increase in assets pertaining to retirement and severance benefits | (170) | (371) | (1,208) | |||||
Decrease in liabilities pertaining to retirement and severance benefits | (74) | (77) | (525) | |||||
Interest receivable and dividend receivable | (952) | (644) | (6,755) | |||||
Interest expenses | 81 | 73 | 580 | |||||
Foreign exchange gain-net | (725) | (1,066) | (5,145) | |||||
Loss on valuation of derivatives | 69 | 326 | 492 | |||||
Investment income based on equity method | (6) | － | (43) | |||||
Gain on the sale of fixed assets | (218) | (14) | (1,552) | |||||
Loss on the retirement of fixed assets | 147 | 239 | 1,043 | |||||
Gain on the sale of investment securities | (103) | (243) | (735) | |||||
Loss on sale of shares of affiliated companies | 837 | － | 5,937 | |||||
Loss on business transfer | 1,720 | － | 12,199 | |||||
Increase in trade receivables | (262) | (858) | (1,862) | |||||
Increase in inventories | (4,887) | (7,510) | (34,663) | |||||
Increase in trade notes and accounts payable | 140 | 1,870 | 997 | |||||
Increase in advance received | 752 | 66 | 5,336 | |||||
Interest and dividend receivables | 951 | 646 | 6,747 | |||||
Interest paid | (81) | (73) | (580) | |||||
Corporate income tax paid | (7,558) | (8,557) | (53,605) | |||||
Others | (1,493) | (2,721) | (10,589) | |||||
Cash flows from operating activities | 17,210 | 18,991 | 122,057 | |||||
Cash flows from investing activities: | ||||||||
Expenses on the acquisition of securities | (12,000) | (12,000) | (85,106) | |||||
Income on the redemption of securities | 12,000 | 12,000 | 85,106 | |||||
Expenses on the acquisition of property, plant and equipment | (14,712) | (10,698) | (104,346) | |||||
Income on the sale of property, plant and equipment | 238 | 10 | 1,694 | |||||
Expenses on the acquisition of intangible assets | (516) | (752) | (3,666) | |||||
Expenses on the acquisition of investment securities | (372) | (2,082) | (2,641) | |||||
Income on the sale of investment securities | 133 | 371 | 948 | |||||
Net decrease in fixed-term deposits | 595 | 982 | 4,221 | |||||
Expenses on the deposit of long-term deposits | (6,000) | (14,000) | (42,553) | |||||
Income on the refund of long-term deposits | 12,000 | 14,000 | 85,106 | |||||
Income on business transfer | 682 | － | 4,838 | |||||
Expenses on sale of shares of subsidiaries resulting in change in | (14,271) | |||||||
scope of consolidation | (2,012) | － | ||||||
Others | 586 | (214) | 4,156 | |||||
Cash flows from investing activities | (9,378) | (12,383) | (66,513) |
8
TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Years Ended December 31, 2023 and 2022
Thousands of | ||||||||
Millions of yen | U.S. dollars | |||||||
(Note 1) | ||||||||
2023 | 2022 | 2023 | ||||||
Cash flows from financing activities: | ||||||||
Income on short-term loans payable | 482 | － | 3,421 | |||||
Income on long-term loans payable | － | 3,900 | － | |||||
Expenses on the payment of long-term loans payable | (222) | (4,289) | (1,576) | |||||
Income on the issuance of shares | － | 184 | － | |||||
Income on the sale of treasury stock | 316 | 769 | 2,246 | |||||
Expenses on the acquisition of treasury stock | (2) | (0) | (19) | |||||
Dividend paid | (6,628) | (6,941) | (47,009) | |||||
Dividend paid to non-controlling shareholders | (1,163) | (2,160) | (8,248) | |||||
Others | (159) | (71) | (1,128) | |||||
Cash flows from financing activities | (7,376) | (8,610) | (52,312) | |||||
Conversion difference pertaining to cash and cash equivalents | ¥ | 1,475 | ¥ | 1,389 | $ | 10,467 | ||
Decrease ㏌ cash and cash equivalents | 1,931 | (612) | 13,699 | |||||
Initial balance of cash and cash equivalents | 40,856 | 41,469 | 289,763 | |||||
Year-end balance of cash and cash equivalents (Note 6) | ¥ | 42,788 | ¥ | 40,856 | $ | 303,463 | ||
See notes to consolidated financial statements.
9