Hankyu Hanshin : Summary of Consolidated Financial Results for H1 of FY2023

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended September 30, 2022 (Based on Japanese GAAP)

					October 31, 2022
Company name:	Hankyu Hanshin Holdings, Inc.
Stock exchange listing:	Tokyo
Stock code:	9042	URL https://www.hankyu-hanshin.co.jp/
Representative:	President and Representative Director	Takehiro Sugiyama
Inquiries:	Accounting Manager of the Group Planning	Kenji Joto	TEL [phone]
Division
Scheduled date to file Quarterly Securities Report:	November 11, 2022
Scheduled date to commence dividend payments:	December 1, 2022
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Operating revenue		Operating profit	Ordinary profit		Profit attributable to
				owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen			%	Millions of yen		%
Six months ended September 30, 2022	467,160		50.3		48,754		382.5		49,494		409.9		31,050		430.1
Six months ended September 30, 2021	310,835		-		10,104		-		9,707			-		5,857		-
	Earnings per share		Diluted earnings per share
			Yen						Yen
Six months ended September 30, 2022			128.87						128.86
Six months ended September 30, 2021			24.31						24.27
(2) Consolidated financial position
	Total assets				Net assets		Equity ratio
	Millions of yen			Millions of yen					%
As of September 30, 2022	2,762,931		950,121				32.6
As of March 31, 2022	2,722,841		915,363				32.0
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended March 31, 2022		-			25.00				-				25.00			50.00
Year ending March 31, 2023		-			25.00
Year ending March 31, 2023 (Forecast)										-				25.00			50.00

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Percentages indicate year-on-year changes

	Operating revenue	Operating profit	Ordinary profit	Profit attributable to	Earnings per share
	owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	925,000	24.0	70,000	78.5	68,000	76.9	40,000	86.8	166.01

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4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2022	254,281,385	shares	As of March 31, 2022	254,281,385	shares
Number of treasury shares at the end of the period
	As of September 30, 2022	13,318,754	shares	As of March 31, 2022	13,332,196	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2022	240,946,146	shares	Six months ended September 30, 2021	240,952,657	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of September 30, 2022
Assets
Current assets
Cash and deposits	31,331	35,275
Notes and accounts receivable - trade	112,568	103,265
Land and buildings for sale	166,331	176,502
Merchandise and finished goods	2,372	2,486
Work in process	2,131	4,873
Raw materials and supplies	5,464	5,634
Other	46,018	40,116
Allowance for doubtful accounts	(408)	(446)
Total current assets	365,811	367,707
Non-current assets
Property, plant and equipment
Buildings and structures, net	646,407	633,892
Machinery, equipment and vehicles, net	60,314	59,954
Land	973,012	975,329
Construction in progress	218,215	223,365
Other, net	25,023	24,182
Total property, plant and equipment	1,922,974	1,916,725
Intangible assets
Goodwill	9,655	8,494
Other	27,856	27,175
Total intangible assets	37,512	35,669
Investments and other assets
Investment securities	316,231	363,125
Deferred tax assets	7,218	7,259
Retirement benefit asset	18,505	18,564
Other	54,917	54,211
Allowance for doubtful accounts	(329)	(333)
Total investments and other assets	396,544	442,828
Total non-current assets	2,357,030	2,395,223
Total assets		2,722,841	2,762,931

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			(Millions of yen)
		As of March 31, 2022	As of September 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	40,699	40,175
Accrued expenses	16,853	14,721
Short-term borrowings	145,737	195,471
Commercial papers	50,000	55,000
Current portion of bonds payable	7,000	20,000
Lease liabilities	3,834	3,885
Income taxes payable	6,380	9,314
Provision for bonuses	3,682	4,660
Other	152,471	121,334
Total current liabilities	426,659	464,563
Non-current liabilities
Long-term borrowings	649,476	626,672
Bonds payable	230,000	210,000
Lease liabilities	9,916	9,651
Deferred tax liabilities	176,516	182,176
Deferred tax liabilities for land revaluation	5,182	5,182
Retirement benefit liability	62,795	62,431
Long-term deferred contribution for construction	117,561	124,280
Other	129,369	127,851
Total non-current liabilities	1,380,818	1,348,246
Total liabilities	1,807,477	1,812,809
Net assets
Shareholders' equity
Share capital	99,474	99,474
Capital surplus	147,358	147,370
Retained earnings	645,212	670,193
Treasury shares	(48,713)	(48,646)
Total shareholders' equity	843,332	868,392
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	18,756	21,967
Deferred gains or losses on hedges	7	29
Revaluation reserve for land	5,499	5,499
Foreign currency translation adjustment	435	3,805
Remeasurements of defined benefit plans	2,317	2,041
Total accumulated other comprehensive income	27,016	33,343
Non-controlling interests	45,014	48,385
Total net assets	915,363	950,121
Total liabilities and net assets		2,722,841	2,762,931

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		September 30, 2021	September 30, 2022
Operating revenue	310,835	467,160
Operating expenses
Operating expenses and cost of sales of transportation	287,608	403,877
Selling, general and administrative expenses	13,122	14,528
Total operating expenses	300,730	418,406
Operating profit	10,104	48,754
Non-operating income
Interest income	77	121
Dividend income	523	527
Share of profit of entities accounted for using equity method	3,451	3,809
Miscellaneous income	858	1,419
Total non-operating income	4,910	5,877
Non-operating expenses
Interest expenses	4,289	4,192
Miscellaneous expenses	1,018	944
Total non-operating expenses	5,308	5,137
Ordinary profit	9,707	49,494
Extraordinary income
Contribution for construction	27,100	318
Subsidies for employment adjustment	6,574	532
Other	4,409	282
Total extraordinary income	38,085	1,134
Extraordinary losses
Loss on tax purpose reduction entry of non-current assets	27,122	320
Loss on COVID-19	7,448	943
Other	630	713
Total extraordinary losses	35,201	1,976
Profit before income taxes	12,590	48,651
Income taxes - current	3,844	10,018
Income taxes - deferred	1,052	5,579
Total income taxes	4,897	15,597
Profit	7,693	33,054
Profit attributable to non-controlling interests	1,835	2,004
Profit attributable to owners of parent		5,857	31,050

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