Hirakawa Hewtech : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022（Based on Japanese GAAP）

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 Three Months Ended June 30, 2022
		(Based on Japanese GAAP)
				August 1, 2022
Company name:	HIRAKAWA HEWTECH CORP.
Stock exchange listing:	Tokyo
Stock code:	5821	URL https://www.hewtech.co.jp
Representative:	CEO		Yuichi Shino
Inquiries:	Accounting Div. Manager	Kazuaki Hoshi	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 5, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

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

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit	Profit attributable to
					owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen		%
Three months ended June 30, 2022	7,689		13.2		601	12.0		888		81.0		930		177.1
Three months ended June 30, 2021	6,791		37.9		536	80.6		490		52.1		335		55.3
	Earnings per share		Diluted earnings per share
			Yen					Yen
Three months ended June 30, 2022			66.26					-
Three months ended June 30, 2021			23.91					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio		Net assets per share
	Millions of yen			Millions of yen				%				Yen
As of June 30, 2022		44,098					32,796				74.4		2,334.73
As of March 31, 2022		41,574					30,418				73.2		2,165.40
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		-			13.50			-			13.50			27.00
Year ending March 31, 2023		-
Year ending March 31, 2023 (Forecast)					14.00			-			14.00			28.00

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

	Net sales		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	29,500	6.1	2,300	17.6	2,300	13.4	2,000	33.1	142.38

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 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:

Yes

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:	No
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 June 30, 2022	17,627,800	shares	As of March 31, 2022	17,627,800	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	3,580,415	shares	As of March 31, 2022	3,580,415	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2022	14,047,385	shares	Three months ended June 30, 2021	14,047,418	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	8,581	10,058
Notes and accounts receivable - trade, and contract assets	7,890	8,428
Securities	201	301
Merchandise and finished goods	2,264	2,737
Work in process	862	827
Raw materials and supplies	3,966	5,369
Other	1,211	1,002
Allowance for doubtful accounts	(3)	(5)
Total current assets	24,973	28,720
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,774	5,125
Machinery, equipment and vehicles, net	4,349	4,751
Land	2,402	887
Other, net	1,975	1,741
Total property, plant and equipment	13,502	12,506
Intangible assets	943	994
Investments and other assets	2,154	1,877
Total non-current assets	16,600	15,377
Total assets		41,574	44,098

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			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	2,965	3,001
Short-term borrowings	2,163	2,246
Income taxes payable	256	251
Provision for bonuses	61	97
Provision for loss on disaster	8	4
Other	1,264	1,279
Total current liabilities	6,719	6,881
Non-current liabilities
Long-term borrowings	2,269	2,234
Retirement benefit liability	1,997	2,028
Provision for retirement benefits for directors (and other	49	50
officers)
Other	120	106
Total non-current liabilities	4,436	4,419
Total liabilities	11,155	11,301
Net assets
Shareholders' equity
Share capital	1,555	1,555
Capital surplus	1,459	1,459
Retained earnings	26,053	26,794
Treasury shares	(2,340)	(2,340)
Total shareholders' equity	26,727	27,468
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	613	514
Foreign currency translation adjustment	3,042	4,781
Remeasurements of defined benefit plans	35	32
Total accumulated other comprehensive income	3,690	5,327
Total net assets	30,418	32,796
Total liabilities and net assets		41,574	44,098

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2021	June 30, 2022
Net sales	6,791	7,689
Cost of sales	5,236	5,978
Gross profit	1,554	1,711
Selling, general and administrative expenses	1,017	1,110
Operating profit	536	601
Non-operating income
Interest income	3	4
Dividend income	7	9
Foreign exchange gains	-	258
Other	7	25
Total non-operating income	18	298
Non-operating expenses
Interest expenses	5	5
Foreign exchange losses	48	-
Loss on disposal of machinery and equipment	5	4
Other	4	1
Total non-operating expenses	63	11
Ordinary profit	490	888
Extraordinary income
Gain on sale of non-current assets	-	564
Total extraordinary income	-	564
Extraordinary losses
Reversal of foreign currency translation adjustment	-	144
Total extraordinary losses	-	144
Profit before income taxes	490	1,307
Income taxes - current	143	305
Income taxes - deferred	6	71
Total income taxes	149	377
Profit	341	930
Profit attributable to non-controlling interests	5	-
Profit attributable to owners of parent		335	930

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