Financial Highlights for Fiscal Year
Ended December 31, 2022 (FY 2022)

(In millions of yen; amounts rounded down to the nearest million yen)

FY 2021 FY 2022 YoY change
Net sales 5,157

4,824

5,330※1

ー※2

172
Operating profit 560 609 49
Ordinary profit 629 715 86
Profit attributable to owners of parent 632 531 △101

※1：The net sales figure has been calculated using the same accounting standards as those employed in the previous fiscal year.
※2：The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review, and the figures for the year ended December 31, 2022 are those after applying the accounting standard and relevant ASBJ regulations. Because this will have a significant impact on net sales, the year-on-year percentage change in net sales is not shown.

Major Consolidated Financial Results
Financial and Performance Information
Financial Statements

Consolidated Business Performance for FY 2022

The AMITA Group is engaged in the development and provision of "Social Systems Design Business" that integrally supports sustainable corporate management and regional operations under the theme of "Redesigning industries and communities".

【Redesigning Industry】
The Group offer total support, from conception to construction and implementation, in proposing initiatives, such as decarbonization, the circular economy, and nature capital, from the perspective of total optimization, centered on the "Cyano Project," which supports the creation and business transformation of recycling-oriented businesses. Driven by expanding needs for recycling-oriented sustainable management, we received new orders from 38 companies in FY2022 (24 companies in FY2021).
In addition, although the volume of the domestic closed-loop resource-recycling service declined slightly from last year due to a decrease in manufacturing volume by domestic manufacturers and other factors, the profit margin has been on an upward trend, growing year on year due to improvements in the production process. While raw material procurement risks are becoming more apparent, the need for recycled resources is steadily expanding. In particular, closed-loop resource-recycling of silicon slurry waste liquids has been performing well in response to the increase in the volume of waste due to increased production by domestic semiconductor manufacturers. In the environmental certification assessment service, the number of clients, especially for FSC® CoC certification, has been steadily increasing (approximately 123% compared to last year), and we expect that the needs for certification acquisition will continue to expand as the momentum toward nature positivity grows, including an increase in the number of companies complying with TNFD. In addition, the Malaysian business recorded the largest ever volume of shipments of recycled resources and Ni recycled resources handled, driven by the economic recovery in the country from the spread of COVID-19 and other factors. Another equity-method affiliate, Codo Advisory, Inc., provides support services for the development and assessment of transition strategies toward decarbonization management, as well as educational workshops on climate change. In the six months since our establishment in March 2022, we have supported 10 companies, mainly major corporation in Japan and overseas.
【Redesigning Communities】
The Group is continuing to demonstrate the realization of a recyclingoriented society based on the MEGURU STATION®, a mutual aid and support community-type resource collection station. At the end of the fiscal year, we opened two stations under the Comprehensive Partnership Agreement with the Town of Tachiarai, Fukuoka Prefecture, and two stations under the Business Partnership Agreement with the City of Kobe, Hyogo Prefecture, to develop services that contribute to resolving the four major regional issues (declining birthrate and aging population, population decrease, shrinking employment, and increasing social security costs).
In addition, we are quantifying and visualizing the effects of introducing the system in municipalities by estimating "the effect of participating in MEGURU STATION® to prevent long-term care and the reduction of social security expenses" through joint research with Chiba University.
【Redesigning initiatives spanning Industry and Communities】
The Japan Circular Economy Partnership (J-CEP), for which we serve as the representative organizer, has grown by 16 member companies to 44 since its establishment in 2021. By taking advantage of the MEGURU STATION® described below, we are fostering momentum for the circular economy by demonstrating recycling throughout the supply chain and are discussing the introduction of services, such as selling by weight.
Net Sales
The Group achieved net sales of 4,824 million yen for the fiscal year under review, due to the application of the "Accounting Standard for Revenue Recognition," among other factors. In addition, the Cyano Project and the Environmental Certification Assessment Service expanded their offerings, while resource recycling of silicon slurry waste liquids has been performing well. Note that the net sales under the previous year's accounting standards were 5,330 million yen (a difference of +172 million yen from the previous fiscal year).
Operating Profit
The Group's operating profit was 609 million (49 million from the previous fiscal year) due to the increase in net sales, excluding the impact of the application of the "Accounting Standard for Revenue Recognition" and other factors.
Ordinary Profit
The Group's ordinary profit was 715 million (86million from the previous fiscal year) due to an increase in operating profit and an increase in equity in earnings of affiliates related to the Malaysian business, including a tax deduction under the green investment taxation system in that country.
Profit
Profit attributable to owners of the parent was 531 million(101 million from the previous fiscal year) due to a reduction in tax expenses resulting from the merger of subsidiaries in the previous fiscal year.

Trends in management indicators

■Operating Profit Margin

※The Company applied the "Accounting Standard for Revenue Recognition" and relevant ASBJ regulations for the year ended December 31, 2022. The operating profit margin under the previous fiscal year's accounting standards was 11.4%.

■Equity Capital Ratio

■ROE(Return on Equity)

■ROA(Return on Asset)

Financial and Performance Information

2020 2021 2022
Net sales
(1,000 yen)		 4,608,264 5,157,789 4,824,795
Operating profit
(1,000 yen)		 289,773 560,023 609,728
Ordinary profit
(1,000 yen)		 292,327 629,461 715,537
Profit
(1,000 yen)		 388,679 632,836 531,242
Comprehensive income
(1,000 yen)		 384,476 646,068 563,637
Net assets
(1,000 yen)		 809,085 1,455,024 2,001,050
Total assets
(1,000 yen)		 4,311,276 4,427,311 4,824,280
Net assets per share
(Yen) *1		 46.13 82.97 113.69
Profit per share
(Yen)*1		 22.16 36.08 30.29
Operating profit margin
（％）		 6.3 10.9 12.6
Return on assets
（％）		 7.2 14.4 15.5
Equity capital ratio
（％）		 18.8 32.9 41.4
Net cash provided by operating activities
(1,000 yen)		 391,688 873,224 585,083
Net cash provided by (used in) investing activities
(1,000 yen)		 △29,842 △73,969 △69,841
Net cash provided by (used in) financing activities
(1,000 yen)		 96,808 △649,522 △142,166
Ending balance of cash and cash equivalents
(1,000 yen)		 1,235,749 1,390,556 1,779,633

*1)
The Company carried out a 5-for-1 stock split of its common shares as of January 1, 2022 and a 3-for-1 stock split of its common shares as of October 1, 2022. Under the assumption that such stock splits were implemented at the beginning of the previous fiscal year, the Company calculates "earnings per share" and "diluted earnings per share."


For more detailed earnings information, please refer to the links below.
■Quarterly Financial Statements（https://en.amita-hd.co.jp/ir/result.html）

Notices
■Data provided in this section is compiled from the Company's quarterly earnings announcements. For more detailed earnings information, refer to the Company's quarterly earnings announcements and financial reports.
■In compiling data provided in this section, we have made every effort to ensure its accuracy. Despite our best efforts, data may not be entirely accurate for internal or external reasons beyond our control.
■This section may not be updated immediately after corrections are made to published earnings announcements.
（Next update on this section is scheduled for February, 2024.）