Appendix
TOKYO OHKA KOGYO CO., LTD. and Subsidiaries
Fiscal year ended December 31, 2022 (January 1, 2022 ― December 31, 2022)
Consolidated financial statements,
Notes to consolidated financial statements
TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Balance Sheets
December 31, 2022 and 2021
Thousands of | |||||||||
Millions of yen | U.S. dollars | ||||||||
ASSETS | (Note 1) | ||||||||
2022 | 2021 | 2022 | |||||||
CURRENT ASSETS: | |||||||||
Cash and deposits (Notes 7 and 19) | ¥ | 39,856 | ¥ | 40,469 | $ | 301,945 | |||
Time deposits (Note 19) | 15,514 | 16,366 | 117,534 | ||||||
Trade notes receivable (Note 19) | 911 | 810 | 6,907 | ||||||
Accounts receivable (Note 19) | 34,900 | 33,084 | 264,396 | ||||||
Securities (Notes 7, 8 and 19) | 3,999 | 3,999 | 30,302 | ||||||
Inventories (Note 9) | 30,006 | 21,350 | 227,319 | ||||||
Prepaid expenses and other current assets | 5,535 | 2,921 | 41,935 | ||||||
Allowance for doubtful accounts | (89) | (120) | (674) | ||||||
Total current assets | 130,636 | 118,883 | 989,667 | ||||||
PROPERTY, PLANT AND EQUIPMENT (Note 10): | |||||||||
Land | 10,570 | 8,662 | 80,083 | ||||||
Buildings and structures | 83,665 | 76,095 | 633,832 | ||||||
Machinery and equipment | 68,318 | 64,907 | 517,565 | ||||||
Furniture and fixtures | 26,873 | 23,429 | 203,584 | ||||||
Right-of-use assets | 1,060 | 984 | 8,032 | ||||||
Construction in progress | 3,565 | 3,896 | 27,013 | ||||||
Total | 194,054 | 177,976 | 1,470,110 | ||||||
Accumulated depreciation | (128,044) | (121,043) | (970,033) | ||||||
Net property, plant and equipment | 66,010 | 56,932 | 500,077 | ||||||
INVESTMENTS AND OTHER ASSETS: | |||||||||
Intangible assets | 1,295 | 837 | 9,817 | ||||||
Investment securities (Notes 8 and 19) | 16,097 | 16,505 | 121,947 | ||||||
Investments in and advances to an unconsolidated | |||||||||
subsidiary and associated companies | 7 | 7 | 56 | ||||||
Investment in capital | 100 | 100 | 757 | ||||||
Net defined benefit asset (Note 12) | 3,682 | 4,658 | 27,901 | ||||||
Deferred tax assets (Note 16) | 1,176 | 504 | 8,911 | ||||||
Long-term time deposits (Note 19) | 18,000 | 18,000 | 136,363 | ||||||
Other assets | 1,069 | 834 | 8,100 | ||||||
Total investments and other assets | 41,429 | 41,447 | 313,856 | ||||||
TOTAL | ¥ | 238,075 | ¥ | 217,264 | $ | 1,803,600 | |||
See notes to consolidated financial statements. |
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LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Trade notes and accounts payable (Note 19)
Short-term loans payable
Construction and other payables
Income taxes payable
Accrued expenses
Provisions
Other current liabilities
Total current liabilities
NON-CURRENT LIABILITIES:
Long-term loans payable (Note 11 and 19)
Deferred tax liabilities (Note 16)
Net defined benefit liability (Note 12)
Asset retirement obligations (Note 13)
Other non-current liabilities
Total non-current liabilities
EQUITY (Notes 14 and 22):
Common stock - authorized, 197,000,000 shares in 2022 and 2021
-
issued, 42,600,000 shares in 2022 and 2021 Capital surplus
Retained earnings
Treasury stock - at cost, 2,321,258 shares in 2022 and 2,439,651 shares in 2021
Accumulated other comprehensive income: Unrealized gain on available-for-sale securities Foreign currency translation adjustments Remeasurements of defined benefit plans
Total
Stock acquisition rights Non-controlling interests
Total equity
TOTAL
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Thousands of | |||||||
Millions of yen | U.S. dollars | ||||||
(Note 1) | |||||||
2022 | 2021 | 2022 | |||||
¥ | 21,617 | ¥ | 19,250 | $ | 163,769 | ||
－ | 3,900 | － | |||||
8,114 | 5,227 | 61,473 | |||||
3,308 | 4,278 | 25,065 | |||||
2,720 | 2,488 | 20,613 | |||||
3,322 | 3,107 | 25,167 | |||||
1,698 | 1,404 | 12,864 | |||||
40,781 | 39,656 | 308,952 | |||||
10,222 | 6,711 | 77,441 | |||||
1,084 | 1,614 | 8,212 | |||||
853 | 609 | 6,468 | |||||
80 | 81 | 608 | |||||
4,092 | 3,399 | 31,006 | |||||
16,333 | 12,416 | 123,737 | |||||
14,640 | 14,640 | 110,912 | |||||
15,303 | 15,207 | 115,937 | |||||
137,551 | 124,806 | 1,042,057 | |||||
(11,276) | (11,818) | (85,425) | |||||
5,280 | 6,851 | 40,000 | |||||
8,877 | 5,618 | 67,250 | |||||
(630) | 522 | (4,779) | |||||
169,745 | 155,829 | 1,285,952 | |||||
174 | 215 | 1,324 | |||||
11,039 | 9,146 | 83,633 | |||||
180,960 | 165,190 | 1,370,910 | |||||
¥ | 238,075 | ¥ | 217,264 | $ | 1,803,600 | ||
TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Income
Years Ended December 31, 2022 and 2021
Thousands of | |||||||||
Millions of yen | U.S. dollars | ||||||||
(Note 1) | |||||||||
2022 | 2021 | 2022 | |||||||
NET SALES | ¥ | 175,434 | ¥ | 140,055 | $ | 1,329,052 | |||
COST OF SALES (Note 17) | 112,319 | 90,529 | 850,901 | ||||||
Gross profit | 63,115 | 49,525 | 478,150 | ||||||
SELLING, GENERAL AND ADMINISTRATIVE | |||||||||
EXPENSES (Note 17) | 32,934 | 28,817 | 249,500 | ||||||
Operating income | 30,181 | 20,707 | 228,650 | ||||||
OTHER INCOME (EXPENSES): | |||||||||
Interest and dividend income | 644 | 530 | 4,883 | ||||||
Foreign exchange gain - net | 280 | 477 | 2,121 | ||||||
Interest expense | (73) | (72) | (555) | ||||||
Loss on valuation of derivatives | (326) | (162) | (2,474) | ||||||
Treasury stock acquisition cost | － | (50) | － | ||||||
Gain on sale of investment securities | 243 | 4,820 | 1,848 | ||||||
Impairment loss on long-lived assets (Note 10) | (195) | (439) | (1,483) | ||||||
Loss on retirement of non-current assets | (239) | (163) | (1,812) | ||||||
Environmental costs | － | (83) | － | ||||||
Other - net | 275 | 234 | 2,083 | ||||||
Other income (expenses) - net | 608 | 5,091 | 4,610 | ||||||
INCOME BEFORE INCOME TAXES AND NON-CONTROLLING | |||||||||
INTERESTS | 30,790 | 25,799 | 233,260 | ||||||
INCOME TAXES (Note 16): | |||||||||
Current | 7,537 | 6,464 | 57,104 | ||||||
Deferred | 97 | (191) | 735 | ||||||
Total income taxes | 7,634 | 6,273 | 57,840 | ||||||
NET INCOME BEFORE NON-CONTROLLING INTERESTS | 23,155 | 19,526 | 175,420 | ||||||
NON-CONTROLLING INTERESTS IN NET INCOME | 3,461 | 1,777 | 26,225 | ||||||
PROFIT ATTRIBUTABLE TO OWNERS OF THE PARENT | ¥ | 19,693 | ¥ | 17,748 | $ | 149,195 | |||
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TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Income
Years Ended December 31, 2022 and 2021
Yen | U.S. dollars | ||||||||
2022 | 2021 | 2022 | |||||||
PER SHARE OF COMMON STOCK (Notes 14 and 22): | |||||||||
Basic earnings per share | ¥ | 489.56 | ¥ | 430.73 | $ | 3.70 | |||
Diluted earnings per share | 488.81 | 429.91 | 3.70 | ||||||
Cash dividends attributable to the year | 160.00 | 156.00 | 1.21 |
See notes to consolidated financial statements.
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TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Comprehensive Income
Years Ended December 31, 2022 and 2021
Thousands of | ||||||||
Millions of yen | U.S. dollars | |||||||
(Note 1) | ||||||||
2022 | 2021 | 2022 | ||||||
NET INCOME BEFORE NON-CONTROLLING INTERESTS | ¥ | 23,155 | ¥ | 19,526 | $ | 175,420 | ||
OTHER COMPREHENSIVE INCOME (Note 21): | ||||||||
Unrealized gain on available-for-sale securities | (1,571) | (817) | (11,904) | |||||
Foreign currency translation adjustments | 3,649 | 3,881 | 27,644 | |||||
Remeasurements of defined benefit plans | (1,153) | 409 | (8,740) | |||||
Total other comprehensive income | 923 | 3,472 | 6,999 | |||||
COMPREHENSIVE INCOME | ¥ | 24,079 | ¥ | 22,998 | $ | 182,419 | ||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: | ||||||||
Owners of the parent | ¥ | 20,226 | ¥ | 20,352 | $ | 153,234 | ||
Non-controlling interests | 3,852 | 2,646 | 29,185 |
See notes to consolidated financial statements.
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TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Changes in Equity
Years Ended December 31, 2022 and 2021
Thousands | Millions of yen | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of | comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized | Foreign | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
shares of | gain on | currency | Remeasurements | Subscription | Non- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
common stock | Common | Capital | Retained | Treasury | available-for-sale | translation | of defined benefit | rights to | controlling | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
outstanding | stock | surplus | earnings | stock | securities | adjustments | plans | Total | shares | interests | equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2021 | 41,508 | ¥ | 14,640 | ¥ | 15,207 | ¥ | 125,795 | ¥ | (14,477) | ¥ | 7,669 | ¥ | 2,606 | ¥ | 113 | ¥ | 151,556 | ¥ | 304 | ¥ | 8,133 | ¥ | 159,994 | ||||||||||||||||||||||||||||||||||||||||
Profit attributable to owners of the parent | － | － | － | 17,748 | － | － | － | － | 17,748 | － | － | 17,748 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid: | (3,925) | (3,925) | (3,925) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Final for prior year, ¥94.0 per share | － | － | － | － | － | － | － | － | － | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interim for current year, ¥62.0 per share | － | － | － | (2,592) | － | － | － | － | (2,592) | － | － | (2,592) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (1,444) | － | － | － | (10,002) | － | － | － | (10,002) | － | － | (10,002) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of treasury stock | 2,596 | － | 45 | － | 395 | － | － | － | 441 | (89) | － | 352 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury stock | (2,500) | － | (45) | (12,220) | 12,266 | － | － | － | － | － | － | － | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in items other than shareholders' equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
during the year | － | － | － | － | － | (817) | 3,011 | 409 | 2,603 | － | 1,012 | 3,615 | |||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2021 | 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) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Final for prior year, ¥94.0 per share | － | － | － | － | － | － | － | － | － | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interim for current year, ¥78.0 per share | － | － | － | (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 | |||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, 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 |
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TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Changes in Equity
Years Ended December 31, 2022 and 2021
Thousands of U.S. dollars (Note 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other | ||||||||||||||||||||||||||||||||||||||||||||||||||||
comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized | Foreign | |||||||||||||||||||||||||||||||||||||||||||||||||||
gain on | currency | Remeasurements | Non- | |||||||||||||||||||||||||||||||||||||||||||||||||
Common | Capital | Retained | Treasury | available-for-sale | translation | of defined | Subscription | controlling | Total | |||||||||||||||||||||||||||||||||||||||||||
stock | surplus | earnings | stock | securities | adjustments | benefit plans | Total | rights to shares | interests | equity | ||||||||||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2021 | $ | 110,912 | $ | 115,211 | $ | 945,500 | $ | (89,530) | $ | 51,905 | $ | 42,565 | $ | 3,961 | $ | 1,180,526 | $ | 1,631 | $ | 69,288 | $ | 1,251,445 | ||||||||||||||||||||||||||||||
Profit attributable to owners of the parent | － | － | 149,195 | － | － | － | － | 149,195 | － | － | 149,195 | |||||||||||||||||||||||||||||||||||||||||
Cash dividends paid: | (28,746) | (28,746) | (28,746) | |||||||||||||||||||||||||||||||||||||||||||||||||
Final for prior year, $0.71 per share | － | － | － | － | － | － | － | － | ||||||||||||||||||||||||||||||||||||||||||||
Interim for current year, $0.59 per share | － | － | (23,892) | － | － | － | － | (23,892) | － | － | (23,892) | |||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | － | － | － | (7) | － | － | － | (7) | － | － | (7) | |||||||||||||||||||||||||||||||||||||||||
Disposal of treasury stock | － | 725 | － | 4,112 | － | － | － | 4,838 | (306) | － | 4,531 | |||||||||||||||||||||||||||||||||||||||||
Net change in items other than shareholders' equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
during the year | － | － | － | － | (11,904) | 24,684 | (8,740) | 4,039 | － | 14,345 | 18,384 | |||||||||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2022 | $ | 110,912 | $ | 115,937 | $ | 1,042,057 | $ | (85,425) | $ | 40,000 | $ | 67,250 | $ | (4,779) | $ | 1,285,952 | $ | 1,324 | $ | 83,633 | $ | 1,370,910 | ||||||||||||||||||||||||||||||
See notes to consolidated financial statements.
7
TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Years Ended December 31, 2022 and 2021
Thousands of | |||||||||
Millions of yen | U.S. dollars | ||||||||
(Note 1) | |||||||||
OPERATING ACTIVITIES: | 2022 | 2021 | 2022 | ||||||
Income before income taxes and non-controlling interests | ¥ | 30,790 ¥ | 25,799 | $ | 233,260 | ||||
Adjustments for: | |||||||||
Depreciation and amortization | 6,762 | 6,430 | 51,227 | ||||||
Impairment loss on long-lived assets | 195 | 439 | 1,483 | ||||||
(Decrease) increase in provision for doubtful accounts | (31) | 16 | (239) | ||||||
Increase in provision for bonuses | 593 | 90 | 4,493 | ||||||
(Decrease) increase in provision for officers' bonuses | (401) | 343 | (3,044) | ||||||
Increase in net defined benefit asset | (371) | (273) | (2,811) | ||||||
Decrease in net defined benefit liability | (77) | (11) | (584) | ||||||
Interest and dividend income | (644) | (530) | (4,883) | ||||||
Interest expenses | 73 | 72 | 555 | ||||||
Foreign exchange gain - net | (1,066) | (918) | (8,079) | ||||||
Loss on valuation of derivatives | 326 | 162 | 2,474 | ||||||
Gain on sale of non-current assets | (14) | 1 | (113) | ||||||
Loss on retirement of non-current assets | 239 | 163 | 1,812 | ||||||
Gain on sale of investment securities | (243) | (4,820) | (1,848) | ||||||
Increase in trade receivables | (858) | (6,052) | (6,502) | ||||||
Increase in inventories | (7,510) | (2,830) | (56,895) | ||||||
Increase in trade payables | 1,870 | 4,515 | 14,168 | ||||||
Increase in advances received | 66 | 16 | 501 | ||||||
Interest and dividend received | 646 | 532 | 4,898 | ||||||
Interest paid | (73) | (72) | (555) | ||||||
Income taxes paid | (8,557) | (4,650) | (64,827) | ||||||
Other - net | (2,721) | 1,334 | (20,614) | ||||||
Net cash provided by operating activities | 18,991 | 19,758 | 143,876 | ||||||
INVESTING ACTIVITIES: | |||||||||
Purchase of securities | (12,000) | (13,000) | (90,909) | ||||||
Proceeds from redemption of securities | 12,000 | 12,000 | 90,909 | ||||||
Purchases of property, plant and equipment | (10,698) | (7,833) | (81,048) | ||||||
Proceeds from sale of property, plant and equipment | 10 | 39 | 79 | ||||||
Purchases of intangible assets | (752) | (296) | (5,699) | ||||||
Purchases of investment securities | (2,082) | (399) | (15,778) | ||||||
Proceeds from sale of investment securities | 371 | 5,008 | 2,813 | ||||||
Net decrease in time deposits | 982 | － | 7,443 | ||||||
Payments into long-term time deposits | (14,000) | (4,000) | (106,060) | ||||||
Withdrawal of long-term time deposits | 14,000 | 4,000 | 106,060 | ||||||
Other - net | (214) | (93) | (1,625) | ||||||
Net cash used in investing activities | (12,383) | (4,576) | (93,815) | ||||||
FINANCING ACTIVITIES: | 29,545 | ||||||||
Proceeds from long-term loans payable | 3,900 | － | |||||||
Repayments of long-term loans payable | (4,289) | (350) | (32,498) | ||||||
Proceeds from issuance of stock | 184 | 195 | 1,399 | ||||||
Proceeds from sale of treasury stock | 769 | 469 | 5,826 | ||||||
Purchases of treasury stock | (0) | (10,053) | (7) | ||||||
Dividends paid | (6,941) | (6,511) | (52,590) | ||||||
Dividends paid to non-controlling interests | (2,160) | (1,829) | (16,369) | ||||||
Other - net | (71) | (34) | (540) | ||||||
Net cash used in financing activities | (8,610) | (18,114) | (65,234) | ||||||
8 |
TOKYO OHKA KOGYO CO., LTD. and Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Years Ended December 31, 2022 and 2021
Thousands of | ||||||||
Millions of yen | U.S. dollars | |||||||
(Note 1) | ||||||||
2022 | 2021 | 2022 | ||||||
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON | ¥ | ¥ | ||||||
CASH AND CASH EQUIVALENTS | 1,389 | 1,673 | $ | 10,529 | ||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (612) | (1,258) | (4,643) | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 41,469 | 42,728 | 314,164 | |||||
CASH AND CASH EQUIVALENTS, END OF YEAR (Note 7) | ¥ | 40,856 | ¥ | 41,469 | $ | 309,520 | ||
See notes to consolidated financial statements.
9