Hosokawa Micron : Financial Statement (1stQ FY2023)

February 10, 2023

Quarterly Financial Results for the Fiscal Year Ending September 30, 2023(J-GAAP)

(1st Quarter / October 1, 2022 - December 31, 2022)

Company Name	Hosokawa Micron Corporation
Stock Exchange Listing	Tokyo Stock Exchange
Stock Code	6277	URL	https://www.hosokawamicron.co.jp
President	Kohei Hosokawa
Contact	Tetsuya Inoue, Executive Vice President, Administrator
Telephone	[phone]

Scheduled date of filing Quarterly Report

February 13, 2023

(Figures are rounded down to the nearest million yen)

1. Quarterly Consolidated Financial Results (October 1, 2022 - December 31, 2022)

(1) Consolidated Results of Operation

(Percentages represent year-on-year changes)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

1st quarter ended Dec. 2022

18,436

18.2

1,397

(3.4)

1,476

0.1

1,099

8.6

1st quarter ended Dec. 2021

15,601

13.6

1,446

10.5

1,475

5.8

1,012

(1.7)

(Reference) Comprehensive Income (million Yen)

1st quarter ended Dec.2022: 268

1st quarter ended Dec.2021: 1,374

Earnings per share

Diluted earnings per

share

Yen

Yen

1st quarter ended Dec. 2022

67.57

67.39

1st quarter ended Dec. 2021

62.45

62.28

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Million yen

Million yen

%

As of Dec. 31, 2022

85,197

53,703

62.9

As of Sep. 30, 2022

86,046

53,758

62.4

(Reference) Shareholders' Equity (million Yen)

Dec. 2022: 53,619

Sep. 2022: 53,674

2. Dividends

Dividends per share

1st Quarter

2nd Quarter

3rd Quarter

Year-end

Annual

Yen

Yen

Yen

Yen

Yen

Year ended Sept. 2022 (actual)

－

35.00

－

40.00

75.00

Year ended Sept. 2023 (actual)

－

Year ended Sept. 2023 (forecast)

37.50

－

37.50

75.00

Note: Revisions of the forecast dividends since the latest announcement: No

3. Consolidated Forecasts for the Fiscal Year Ending September 30, 2023 (October 1, 2022 - September 30, 2023)

(Percentages represent year-on-year changes)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per
		owners of parent	share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
1st Half	37,000		13.5	3,100	2.4	3,200	2.3	2,200	(8.9)	135.66
Full Year	70,000		4.6	6,500	17.9	6,500	12.6	4,500	12.3	277.49

Note: Revisions of the Consolidated forecast since the latest announcement: Yes

4. Others

1. Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
2. Adoption of simplified accounting treatment for quarterly closing: Yes
3. Changes in accounting treatment for quarterly consolidated financial statement

1) Changes in accounting policies due to the revision of accounting standards: Yes

Note 1: U.S. GAAP ASU2016-02 (Lease) has been applied to consolidated companies applying U.S. GAAP from the beginning of the current fiscal year.

Note 2: ASBJ Guidance No. 31 (Implementation Guidance on Accounting Standard for Fair Value Measurement) has been applied to consolidated companies in Japan from the beginning of the current fiscal year.

1. 1. Changes in accounting policies other than 1) above: None
   2. Changes in accounting estimates: None
   3. Retrospective restatement: None
2. Number of shares outstanding (common stock)
3. 1. Number of shares outstanding at the end of the period (incl. treasury stock)

Dec. 2022:	17,230,538 shares	Sept. 2022:	17,230,538 shares
2) Number of treasury stock at the end of the period
Dec. 2022:	889,644 shares	Sept. 2022:	1,010,404 shares
3) Average number of shares in the fiscal year
Dec. 2022:	16,272,665 shares	Dec. 2021:	16,211,253 shares

• This quarterly consolidated financial statements is not subject to quarterly review procedures.
• Explanation regarding appropriate use of earnings forecasts and other special notes

Note: The forecasts above are based on currently available information at the time of announcement. Actual results may differ from these forecasts for a number of factors.

5. Consolidated Financial Statements

(1) Consolidated Balance Sheets

			(Millions of Yen)
		As of September 30, 2022	As of December 31, 2022
Assets
Current Assets
Cash and deposits	25,617	23,891
Notes and accounts receivable-trade, and contract	17,043	17,697
assets
Electronically recorded monetary claims -	1,207	755
operating
Securities	1,999	999
Finished goods	3,227	3,018
Work in process	3,954	4,073
Raw materials and supplies	3,861	4,288
Other	1,919	2,292
Allowance for doubtful accounts	(335)	(272)
Total Current Assets	58,495	56,744
Non-Current Assets
Property, plant and equipment
Buildings and structures	23,346	23,465
Machinery, equipment and vehicles	14,492	14,509
Land	6,156	6,549
Construction in progress	189	579
Other	3,010	3,206
Accumulated depreciation and	(23,164)	(23,342)
impairment loss
Total property, plant and equipment	24,031	24,969
Intangible assets
Goodwill	158	151
Other	840	826
Total intangible assets	998	978
Investments and other assets
Investment securities	1,562	1,628
Deferred tax assets	844	764
Other	118	117
Allowance for doubtful accounts	(5)	(5)
Total investments and other assets	2,520	2,505
Total Non-Current Assets	27,550	28,453
Total Assets	86,046	85,197

			(Millions of Yen)
		As of September 30, 2022	As of December 31, 2022
Liabilities
Current Liabilities
Notes and accounts payable-trade	7,824	7,193
Electronically recorded obligations - operating	1,350	1,734
Current portion of long-term loans payable	517	506
Accrued expenses	3,649	2,890
Income taxes payable	470	454
Contract liabilities	9,311	10,125
Provision for bonuses	533	160
Provision for directors' bonuses	83	24
Provision for product warranties	932	968
Provision for share awards	339	6
Other	2,222	1,947
Total Current Liabilities	27,235	26,012
Non-Current Liabilities
Long-term loans payable	792	771
Provision for share awards	11	13
Net defined benefit liability	2,866	2,853
Deferred tax liabilities	1,239	1,308
Other	142	534
Total Non-Current Liabilities	5,051	5,482
Total Liabilities	32,287	31,494
Net Assets
Shareholders' Equity
Capital stock	14,496	14,496
Capital surplus	5,209	5,209
Retained earnings	35,320	35,763
Treasury stock	(2,402)	(2,069)
Total Shareholders' Equity	52,624	53,400
Accumulated other comprehensive income
Valuation difference on available-for-sale	195	305
securities
Deferred gains or losses on hedges	(66)	63
Foreign currency translation adjustment	1,062	(3)
Remeasurements of defined benefit plans	(140)	(146)
Total accumulated other comprehensive
1,050	219
income
Subscription rights to shares	83	83
Total Net Assets	53,758	53,703
Total Liabilities and Net Assets	86,046	85,197

(2) Consolidated Statements of Income

			(Millions of Yen)
		Oct. 1, 2021 - Dec. 31, 2021	Oct. 1, 2022 - Dec. 31, 2022
Net sales	15,601	18,436
Cost of sales	10,158	12,483
Gross profit	5,442	5,953
Selling, general and administrative expenses	3,996	4,555
Operating profit	1,446	1,397
Non-operating income
Interest income	9	31
Dividend income	7	10
Equity in earnings of affiliates	11	12
Foreign exchange gains	9	－
Gain on valuation of derivatives	－	20
Penalty income	－	31
Other	8	34
Total non-operating Income	46	140
Non-operating expenses
Interest expenses	3	1
Foreign exchange losses	－	54
Loss on valuation of derivatives	9	－
Other	4	5
Total non-operating Expenses	17	61
Ordinary profit	1,475	1,476
Extraordinary income
Gain on sales of non-current assets	6	－
Total extraordinary income	6	－
Extraordinary losses
Loss on sales and retirement of non-current assets	3	0
Total extraordinary loss	3	0
Income before income taxes	1,478	1,476
Income taxes	465	376
Net income	1,012	1,099
Profit attributable to owners of parent	1,012	1,099