HIROSHIMA GAS : Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 2023

広島ガス株式会社

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 Six Months Ended September 30, 2022

[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

November 07, 2022

President

Senior Executive Officer and Manager of General Affair

Department

Phone: [phone]

Scheduled date of filing quarterly securities report: November 10, 2022

Scheduled date of commencing dividend payments: December 01, 2022

Availability of supplementary briefing material on quarterly financial results: No

Schedule of quarterly financial results briefing session: Yes

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 01, 2022 to September 30, 2022)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Six months ended	Million yen		%	Million yen	%	Million yen	%	Million yen	%
September 30, 2022	40,592		20.0	1,443	96.6	1,657	2.3	1,177	(31.2)
September 30, 2021	33,835		(0.8)	734	(37.9)	1,620	13.1	1,712	104.2

(Note) Comprehensive income:	Six months ended September 30, 2022:
	Six months ended September 30, 2021:

¥	1,332 million	[	(46.2) %]
¥	2,474 million	[	96.9%]

	Basic earnings	Diluted earnings per
	per share		share
Six months ended	Yen			Yen
September 30, 2022	17.25
September 30, 2021	25.14			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio
As of	Million yen			Million yen	%
September 30, 2022	139,530			66,086	45.0
March 31, 2022	123,802			65,067	50.0
(Reference) Equity: As of	September 30, 2022:	¥	62,783 million
As of	March 31, 2022:	¥	61,867 million

							広島ガス株式会社
2. Dividends
					Annual dividends
		1st	2nd		3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
		Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2022				5.00			5.00	10.00
Fiscal year ending March 31, 2023				5.00
Fiscal year ending March 31, 2023							5.00	10.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No
(Note) Breakdown of the 2nd quarter dividend for the fiscal year ending March 31, 2023 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

			Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
				owners of parent	per share
			Million yen		%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year			87,300		13.7	3,400	6.0	4,200		(9.0)	2,900	(20.8)	42.50
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New	-	(Company name:									)
Exclusion:	-	(Company name:									)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	Yes

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):

September 30, 2022:	68,373,036	shares
March 31, 2022:	68,242,319	shares
2) Total number of treasury shares at the end of the period:
September 30, 2022:	1,728	shares
March 31, 2022:	1,686	shares

3) Average number of shares during the period:
Six months ended September 30, 2022:	68,271,172	shares
Six months ended September 30, 2021:	68,147,073	shares

				広島ガス株式会社
Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets
				(Million yen)
			As of March 31,2022	As of September 30,2022
Assets
	Non-current assets
		Property, plant and equipment
		Production facilities	14,352	14,845
		Distribution facilities	31,575	31,054
		Service and maintenance facilities	4,191	4,158
		Other facilities	7,495	7,467
		Construction in progress	5,666	5,287
		Total property, plant and equipment	63,281	62,814
		Intangible assets	262	192
		Investments and other assets
		Investment securities	14,196	12,890
		Long-term loans receivable	0	-
		Deferred tax assets	648	735
		Other investments	4,577	4,447
		Allowance for doubtful accounts	(32)	(18)
		Total investments and other assets	19,390	18,055
		Total non-current assets	82,933	81,061
	Current assets
		Cash and deposits	20,202	35,854
		Notes and accounts receivable - trade, and contract	8,016	7,344
		assets
		Merchandise and finished goods	964	1,031
		Raw materials and supplies	4,920	8,160
		Other current assets	6,780	6,099
		Allowance for doubtful accounts	(15)	(21)
		Total current assets	40,868	58,468
	Total assets	123,802	139,530

				広島ガス株式会社
				(Million yen)
			As of March 31,2022	As of September 30,2022
Liabilities
	Non-current liabilities
		Bonds payable	16,000	16,000
		Long-term borrowings	16,618	27,285
		Provision for retirement benefits for directors (and	316	317
		other officers)
		Provision for gas holder repairs	467	499
		Provision for safety measures	449	367
		Provision for gas appliance warranties	263	249
		Retirement benefit liability	682	653
		Asset retirement obligations	171	172
		Other noncurrent liabilities	1,645	1,523
		Total non-current liabilities	36,615	47,069
	Current liabilities
		Current portion of non-current liabilities	5,856	7,804
		Notes and accounts payable - trade	4,955	4,837
		Income taxes payable	338	393
		Asset retirement obligations	36	-
		Commercial papers	6,000	10,000
		Other current liabilities	4,932	3,339
		Total current liabilities	22,119	26,374
	Total liabilities	58,735	73,443
Net assets
	Shareholders' equity
		Share capital	5,225	5,246
		Capital surplus	1,195	1,216
		Retained earnings	50,897	51,734
		Treasury shares	(0)	(0)
		Total shareholders' equity	57,318	58,197
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	1,327	1,218
		securities
		Deferred gains or losses on hedges	3,212	2,876
		Foreign currency translation adjustment	154	610
		Remeasurements of defined benefit plans	(145)	(119)
		Total accumulated other comprehensive income	4,549	4,586
	Non-controlling interests	3,199	3,303
	Total net assets	65,067	66,086
Total liabilities and net assets	123,802	139,530

広島ガス株式会社

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

			(Million yen)
		For the six months	For the six months
		ended September 30,2021	ended September 30,2022
Net sales	33,835	40,592
Cost of sales	21,023	27,106
Gross profit	12,812	13,486
Selling, general and administrative expenses	12,078	12,042
Operating profit	734	1,443
Non-operating income
	Interest income	1	0
	Dividend income	95	98
	Share of profit of entities accounted for using equity	746	75
	method
	Miscellaneous income	184	183
	Total non-operating income	1,027	359
Non-operating expenses
	Interest expenses	87	88
	Miscellaneous expenses	53	56
	Total non-operating expenses	141	145
Ordinary profit	1,620	1,657
Extraordinary income
	Gain on sale of non-current assets	358	-
	Gain on sale of investment securities	-	62
	Compensation income	312	-
	Total extraordinary income	671	62
Profit before income taxes	2,292	1,719
Income taxes - current	446	384
Income taxes - deferred	(4)	39
Total income taxes	441	424
Profit	1,850	1,295
Profit attributable to non-controlling interests	137	117
Profit attributable to owners of parent	1,712	1,177