【Delayed】Consolidated Financial Results for the Nine Months Ended September 30,2021(Based on Japanese GAAP)

Translation

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Summary of Consolidated Financial Results for the Nine Months Ended September 30, 2021 (Based on Japanese GAAP)

				November 9, 2021
Company name:	HOSHIZAKI CORPORATION
Stock exchange listing:	First Section of the Tokyo Stock Exchange and Nagoya Stock Exchange
Securities code:	6465	URL: http://www.hoshizaki.co.jp
Representative:	Representative Director, President & COO Yasuhiro Kobayashi
Inquiries:	Executive Officer	Tadashi Mizutani	TEL: [phone]
Scheduled date to file Quarterly Securities Report:	November 12, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results meeting:	Yes (for institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended September 30, 2021 (from January 1, 2021 to September 30, 2021)

(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	%
Nine months ended September 30, 2021	208,005	13.4				21,051	25.6	25,388	58.9	17,694	67.7
Nine months ended September 30, 2020	183,499	(19.5)				16,766	(42.9)	15,978	(45.8)	10,553	(48.7)
Note: Comprehensive income Nine months ended September 30, 2021	¥23,761 million[311.0%]
Nine months ended September 30, 2020		¥5,781 million [(67.8)%]
	Earnings per share		Diluted earnings per share
		Yen				Yen
Nine months ended September 30, 2021		244.32					-
Nine months ended September 30, 2020		145.72					-

1. Consolidated financial position

		Total assets	Net assets	Equity ratio	Net assets per share
		Millions of yen	Millions of yen	%	Yen
As of September 30, 2021	374,384	255,568	67.8	3,502.71
As of December 31, 2020	343,393	239,711	69.3	3,288.35
Reference: Equity	As of September 30, 2021	¥253,688 million
	As of December 31, 2020	¥238,143 million

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 December 31, 2020	-	0.00	-	110.00	110.00
Year ending December 31, 2021	-	0.00	-
Year ending December 31, 2021				110.00	110.00
(Forecast)
Note: Revision of cash dividend forecast most recently announced: No

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

(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	265,000	11.2	23,000	24.7	27,000	55.0	18,900	65.2	260.97

Note: Revision of consolidated financial results forecast most recently announced: No

*Notes
(1) Changes in significant subsidiaries during the nine months ended September 30, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):	No

1. Application of special accounting for preparing quarterly consolidated financial statements: Yes
2. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

a. Changes in accounting policies due to revisions to accounting standards and other	No
regulations:
b. Changes in accounting policies due to other reasons:	No
c. Changes in accounting estimates:	No
d. Restatement of prior period financial statements:	No

1. Number of issued shares (common shares)
   a. Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2021	72,427,650	shares	As of December 31, 2020	72,421,650	shares
b. Number of treasury shares at the end of the period
	As of September 30, 2021	1,279	shares	As of December 31, 2020	1,230	shares

1. Average number of shares during the period (cumulative from the beginning of the fiscal year)

Nine months ended September 30, 2021

72,423,381 shares

Nine months ended September 30, 2020

72,420,599 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual business and other results may differ substantially due to various factors.

	Attached Materials
	Index
1. Qualitative information on the quarterly financial results ...................................................................................................	2
(1)	Operating results..............................................................................................................................................................	2
(2)	Financial position ............................................................................................................................................................	2
(3)	Explanation of consolidated earnings forecasts and other forward-looking statements..................................................	3
2. Quarterly consolidated financial statements ........................................................................................................................	4
(1)	Consolidated balance sheets ............................................................................................................................................	4
(2)	Consolidated statements of income (cumulative) and consolidated statements of comprehensive	income
	(cumulative).....................................................................................................................................................................	5
	Consolidated statements of income (cumulative) .............................................................................................................	5
	Consolidated statements of comprehensive income (cumulative) ....................................................................................	6
(3)	Notes to quarterly consolidated financial statements ......................................................................................................	7
	Notes on premise of going concern...................................................................................................................................	7
	Notes on significant changes in the amount of shareholders' equity ................................................................................	7
	Application of special accounting for preparing quarterly consolidated financial statements..........................................	7
	Changes in accounting policies.........................................................................................................................................	7
	Changes in accounting estimates ......................................................................................................................................	7
	Segment information, etc. .................................................................................................................................................	7

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1. Qualitative information on the quarterly financial results

The forward-looking matters stated herein are judgments made by Hoshizaki Corporation (the "Company") as of September 30, 2021.

1. Operating results
   The Japanese economy during the nine months ended September 30, 2021 saw adverse conditions due to the impact of measures against the spread of the new coronavirus infections (COVID-19), such as a state of emergency declaration and priority measures to prevent the spread of disease due to intermittent resurgences of COVID-19, primarily in urban areas.
   Overseas, although the global economy as a whole saw adverse conditions due to the impact of the COVID-19 pandemic on economic activity, there were signs of a recovery. In particular, the recovery trend is becoming more pronounced in some regions, such as the U.S. and China. Furthermore, against the backdrop of the economic recovery of these regions, the impact of procurement difficulties and rising raw materials expenses continued due to factors such as shortages of raw materials in Japan and overseas.
   Amid such circumstances, in Japan, while working to prevent the spread of COVID-19, the Company focused on expanding sales in the restaurant market, and reaching new customers, in addition to striving to obtain customers other than restaurants, such as medical institutions, nursing houses, agricultural and marine food industries.
   Overseas, despite the impact of restrictions on sales and production activities in some regions due to the COVID-19 crisis, sales gradually recovered due to the economic recovery mainly in Europe and the U.S. On the other hand, this was impacted by procurement difficulties, rising raw materials expenses, etc. due to factors such as shortages of raw materials.
   As a result of the above initiatives, the Company reported operating results for the nine months ended September 30, 2021 with net sales of ¥208,005 million (up 13.4% year-on-year), operating profit of ¥21,051 million (up 25.6% year-on-year), ordinary profit of ¥25,388 million (up 58.9% year-on-year) and profit attributable to owners of parent of ¥17,694 million (up 67.7% year-on-year).
   Operating results by segment are as follows.

1. Japan

In Japan, the Company continued to promote sales expansion of refrigerators, ice machines, dishwashers, and other products, and cultivate new customers while providing support to customers seeking to expand into other businesses such as the take-out and delivery business in response to the COVID-19 crisis. In addition, the Company proactively worked to obtain customers other than restaurants by taking advantage of support for hygiene management, etc. As a result, the Company generated net sales of ¥140,329 million (up 6.0% year-on- year) and segment profit of ¥14,837 million (up 10.7% year-on-year).

1. Americas

In the Americas, despite the impact of rising raw materials expenses and other factors, but as a result of working to expand sales for ice makers, dispensers, etc. due to economic recovery, net sales were ¥44,876 million (up 26.0% year-on-year), and segment profit was ¥4,157 million (up 56.7% year-on-year).

1. Europe / Asia

In Europe and Asia, despite the impact of restrictions on sales and production activities due to the lockdowns in some regions, rising raw materials expenses and other factors, the Company generated net sales of ¥27,807 million (up 43.8% year-on-year) and segment profit of ¥2,420 million (up 159.4% year-on-year) as a result of our efforts to expand sales of flagship products.

1. Financial position
   Total assets as of September 30, 2021 increased ¥30,990 million from December 31, 2020 to ¥374,384 million.
   Current assets increased ¥25,609 million from December 31, 2020 to ¥302,850 million. The main factors were increases in cash and deposits and notes and accounts receivable - trade.
   Non-current assets increased ¥5,381 million from December 31, 2020 to ¥71,534 million. The main factor was an increase in investments and other assets.
   Total liabilities as of September 30, 2021 increased ¥15,133 million from December 31, 2020 to ¥118,815 million.

Current liabilities increased ¥14,667 million from December 31, 2020 to ¥94,932 million. The main factor was an increase in notes and accounts payable - trade.

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Non-current liabilities increased ¥466 million from December 31, 2020 to ¥23,883 million. The main factor was an increase in retirement benefit liability.

Net assets as of September 30, 2021 increased ¥15,856 million from December 31, 2020 to ¥255,568 million.

1. Explanation of consolidated earnings forecasts and other forward-looking statements There are currently no changes to the earnings forecasts announced on August 6, 2021.

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