HIROSHIMA GAS : Summary of Consolidated Financial Results for the Fiscal Year Ended March 2023

Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Year Ended March 31, 2023

[Japanese GAAP]

Company name: HIROSHIMA GAS CO.,LTD.

Stock exchange listing: Tokyo

Code number: 9535

URL: https://www.hiroshima-gas.co.jp/

Representative: Kensuke Matsufuji

Contact: Yasutaka Okita

May 11, 2023

President

Senior Executive Officer and Manager of General Affair

Department

Phone: [phone]

Scheduled date of Annual General Meeting of Shareholders: June 22, 2023

Scheduled date of commencing dividend payments: June 2, 2023

Scheduled date of filing annual securities report: June 23, 2023

Availability of supplementary briefing material on annual financial results: No

Schedule of annual financial results briefing session: Yes

				(Amounts of less than one millions of yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)
(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit		Profit attributable to
			owners of parent
Fiscal year ended	Millions of yen		%	Millions of yen		%	Millions of yen	%		Millions of yen	%
March 31, 2023	95,219		24.0	7,021		118.9	7,412	60.6		5,216	42.4
March 31, 2022	76,802		4.8	3,207		(2.6)	4,616	33.1		3,662	(30.5)

(Note) Comprehensive income:	Fiscal year ended March 31, 2023:
	Fiscal year ended March 31, 2022:

¥	3,448 million	[	(39.7) %]
¥	5,716 million	[	(30.4) %]

	Basic earnings per	Diluted earnings per	Rate of return on	Ordinary profit to	Operating profit to
	share	share	equity	total assets ratio	net sales ratio
Fiscal year ended	Yen	Yen	%	%	%
March 31, 2023	76.35	-	8.3	5.6	7.4
March 31, 2022	53.71	-	6.2	3.9	4.2

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2023: Fiscal year ended March 31, 2022:

(2) Consolidated Financial Position

• 104 million
• 920 million

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Millions of yen		Millions of yen	%	Yen
March 31, 2023	141,996		67,860	45.5	943.96
March 31, 2022	123,802		65,067	50.0	906.61
(Reference) Equity: As of	March 31, 2023:	¥	64,539 million
As of	March 31, 2022:	¥	61,867 million
(3) Consolidated Cash Flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end
	operating activities	investing activities	financing activities
	of period
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2023	8,947		(7,062)	13,608	33,535
March 31, 2022	7,910		(7,145)	3,804	18,031

2. Dividends

			Annual dividends					Payout	Dividends
						Total	to net
										ratio
		1st	2nd		3rd		Year-end	Total		dividends	assets
					(consolidated)
		quarter-end	quarter-end	quarter-end				(consolidated)
Fiscal year ended		Yen	Yen		Yen		Yen	Yen		Millions of yen	%	%
March 31, 2022		-	5.00		-		5.00	10.00		682	18.6	1.1
March 31, 2023		-	5.00		-		7.00	12.00		820	15.7	1.3
Fiscal year ending
March 31, 2024		-	6.00		-		6.00	12.00			28.3
(Forecast)
(Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2023 :
Commemorative dividend	-	yen
Special dividend		-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings per
		owners of parent	share
	Millions of			Millions of		Millions of		Millions of
	yen		%	yen	%	yen	%	yen	%	Yen
Full year	96,000		0.8	4,100	(41.6)	4,300	(42.0)	2,900	(44.4)	42.42

* Notes:
(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in
scope of consolidation):	No
New	-	(Company name:	)
Exclusion:	-	(Company name:	)

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

March 31, 2023:	68,373,036	shares
March 31, 2022:	68,242,319	shares
2) Number of treasury shares at the end of the period:
March 31, 2023:	1,766	shares
March 31, 2022:	1,686	shares

3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2023:	68,320,950	shares
Fiscal Year ended March 31, 2022:	68,193,625	shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)
(1) Non-consolidated Operating Results				(% indicates changes from the previous corresponding period.)
	Net sales			Operating profit		Ordinary profit	Net income
Fiscal year ended	Millions of yen		%		Millions of yen		%		Millions of yen	%	Millions of yen	%
March 31, 2023	74,491		28.8		6,156		228.1		6,851	142.1	4,893	105.5
March 31, 2022	57,818		3.8		1,876		107.0		2,830	21.7	2,381	(49.9)
	Basic earnings per share	Diluted earnings per share
Fiscal year ended			Yen			Yen
March 31, 2023			71.63			-
March 31, 2022			34.92			-
(2) Non-consolidated Financial Position
	Total assets			Net assets		Capital adequacy ratio	Net assets per share
As of	Millions of yen		Millions of yen			%		Yen
March 31, 2023	118,944			46,192			38.8		675.62
March 31, 2022	101,769			44,445			43.7		651.30
(Reference) Equity: As of	March 31, 2023:			¥		46,192 million
As of	March 31, 2022:			¥		44,445 million

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(% indicates changes from the previous corresponding period.)

	Net sales		Ordinary profit	Net income		Basic earnings per share
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Yen
Full year	73,000		(2.0)	3,900	(43.1)	2,800		(42.8)	40.95

Consolidated Financial Statements

Consolidated Balance Sheets

		(Millions of yen)
	As of March 31, 2022	As of March 31, 2023
Assets
Non-current assets
Property, plant and equipment
Production facilities	14,352	16,102
Distribution facilities	31,575	30,917
Service and maintenance facilities	4,191	4,116
Other facilities	7,495	7,776
Construction in progress	5,666	5,694
Total property, plant and equipment	63,281	64,608
Intangible assets	262	141
Investments and other assets
Investment securities	14,196	12,922
Long-term loans receivable	0	-
Deferred tax assets	648	1,182
Other investments	4,577	4,417
Allowance for doubtful accounts	(32)	(17)
Total investments and other assets	19,390	18,504
Total non-current assets	82,933	83,254
Current assets
Cash and deposits	20,202	35,637
Notes receivable - trade	289	441
Accounts receivable - trade	6,833	8,307
Contract assets	892	895
Merchandise and finished goods	964	1,061
Raw materials and supplies	4,920	8,382
Other current assets	6,780	4,038
Allowance for doubtful accounts	(15)	(22)
Total current assets	40,868	58,741
Total assets	123,802	141,996

		(Millions of yen)
	As of March 31, 2022	As of March 31, 2023
Liabilities
Non-current liabilities
Bonds payable	16,000	16,000
Long-term borrowings	16,618	28,123
Provision for retirement benefits for directors (and	316	315
other officers)
Provision for gas holder repairs	467	532
Provision for safety measures	449	423
Provision for gas appliance warranties	263	233
Retirement benefit liability	682	499
Asset retirement obligations	171	234
Other noncurrent liabilities	1,645	1,016
Total non-current liabilities	36,615	47,378
Current liabilities
Current portion of non-current liabilities	5,856	2,761
Notes and accounts payable - trade	4,955	4,847
Income taxes payable	338	1,845
Asset retirement obligations	36	-
Commercial papers	6,000	12,000
Other current liabilities	4,932	5,303
Total current liabilities	22,119	26,757
Total liabilities	58,735	74,135
Net assets
Shareholders' equity
Share capital	5,225	5,246
Capital surplus	1,195	1,216
Retained earnings	50,897	55,430
Treasury shares	(0)	(0)
Total shareholders' equity	57,318	61,893
Accumulated other comprehensive income
Valuation difference on available-for-sale	1,327	1,271
securities
Deferred gains or losses on hedges	3,212	860
Foreign currency translation adjustment	154	527
Remeasurements of defined benefit plans	(145)	(13)
Total accumulated other comprehensive income	4,549	2,646
Non-controlling interests	3,199	3,320
Total net assets	65,067	67,860
Total liabilities and net assets	123,802	141,996