Hoshizaki : 【Delayed】Consolidated Financial Results for the Six Months Ended June 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 Six Months Ended June 30, 2021 (Based on Japanese GAAP)

				August 6, 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:	August 10, 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 six months ended June 30, 2021 (from January 1, 2021 to June 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	%
Six months ended June 30, 2021	136,643	12.9		14,189	34.6	18,229	81.7	12,683	95.6
Six months ended June 30, 2020	121,078	(19.1)		10,543	(43.4)	10,031	(45.6)	6,484	(49.3)
Note: Comprehensive income Six months ended June 30, 2021		¥18,009 million[452.0%]
Six months ended June 30, 2020			¥3,262 million [(69.9)%]
	Earnings per share		Diluted earnings per share
		Yen			Yen
Six months ended June 30, 2021		175.13				-
Six months ended June 30, 2020		89.55				-

1. Consolidated financial position

			Total assets	Net assets	Equity ratio	Net assets per share
			Millions of yen	Millions of yen	%	Yen
As of June 30, 2021			369,769	249,816	67.1	3,424.33
As of December 31, 2020		343,393	239,711	69.3	3,288.35
Reference: Equity	As of June 30, 2021		¥248,011 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: Yes

Regarding revision of consolidated financial results forecast, please refer to the "Notice Regarding Revision of Financial Forecast" published today, on August 6, 2021.

*Notes
(1) Changes in significant subsidiaries during the six months ended June 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 June 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 June 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)

Six months ended June 30, 2021

72,422,099 shares

Six months ended June 30, 2020

72,420,613 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)	Consolidated statements of cash flows............................................................................................................................	7
(4)	Notes to quarterly consolidated financial statements ......................................................................................................	8
	Notes on premise of going concern...................................................................................................................................	8
	Notes on significant changes in the amount of shareholders' equity ................................................................................	8
	Application of special accounting for preparing quarterly consolidated financial statements..........................................	8
	Changes in accounting policies.........................................................................................................................................	8
	Changes in accounting estimates ......................................................................................................................................	8
	Segment information, etc. .................................................................................................................................................	8

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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 June 30, 2021.

1. Operating results
   The Japanese economy during the six months ended June 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.
   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., where COVID-19 vaccination is progressing.
   As a result of the above initiatives, the Company reported operating results for the six months ended June 30, 2021 with net sales of ¥136,643 million (up 12.9% year-on-year). Operating profit was ¥14,189 million (up 34.6% year- on-year). In addition, owing to the recording of foreign exchange gains of ¥3,575 million from translation of foreign- currency assets to Japanese yen, ordinary profit was ¥18,229 million (up 81.7% year-on-year) and profit attributable to owners of parent was ¥12,683 million (up 95.6% 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 ¥92,958 million (up 5.1% year-on- year) and segment profit of ¥9,980 million (up 8.3% 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 ¥28,779 million (up 25.1% year-on-year), and segment profit was ¥2,951 million (up 174.0% year-on-year).

1. Europe / Asia

In Europe and Asia, despite the impact of restrictions on sales and production activities and the deteriorating order environment due to the lockdowns in some regions and other factors, the Company generated net sales of ¥18,318 million (up 46.6% year-on-year) and segment profit of ¥1,578 million (up 248.3% year-on-year) as a result of our efforts to expand sales of flagship products.

1. Financial position
   Total assets as of June 30, 2021 increased ¥26,375 million from December 31, 2020 to ¥369,769 million.
   Current assets increased ¥23,361 million from December 31, 2020 to ¥300,602 million. The main factors were increases in cash and deposits and notes and accounts receivable - trade.
   Non-current assets increased ¥3,014 million from December 31, 2020 to ¥69,167 million. The main factor was an increase in investments and other assets.
   Total liabilities as of June 30, 2021 increased ¥16,270 million from December 31, 2020 to ¥119,952 million.
   Current liabilities increased ¥16,349 million from December 31, 2020 to ¥96,614 million. The main factors were increases in notes and accounts payable - trade and income taxes payable.
   Non-current liabilities decreased ¥78 million from December 31, 2020 to ¥23,338 million.

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Net assets as of June 30, 2021 increased ¥10,104 million from December 31, 2020 to ¥249,816 million.

1. Explanation of consolidated earnings forecasts and other forward-looking statements
   We have revised our forecast of consolidated financial results for the year ending December 31, 2021, which was released on February 8, 2021. For details, please refer to the "Notice Regarding Revision of Financial Forecast" published today, on August 6, 2021.

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