Sakai Heavy Industries : Summary of Consolidated Financial Results for the Six Months Ended September 30, 2021(Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

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

				November 11, 2021
Company name:	SAKAI HEAVY INDUSTRIES,LTD.
Stock exchange listing:	Tokyo
Stock code:	6358	URL https://www.sakainet.co.jp/
Representative:	President and Representing Director	Ichiro Sakai
Inquiries:	Executive Officer	Takao Yoshikawa	TEL [phone]
General Manager Administration Division
Scheduled date to file Quarterly Securities Report:	November 11, 2021
Scheduled date to commence dividend payments:	December 13, 2021
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2021 (from April 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	%
Six months ended September 30, 2021	12,987		27.8		725	279.2		732		332.8		509	-
Six months ended September 30, 2020	10,163	(16.0)		191	(72.7)		169		(73.4)		(373)	-
	Earnings per share	Diluted earnings per share
			Yen				Yen
Six months ended September 30, 2021			119.52				-
Six months ended September 30, 2020			(87.01)				-
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio
	Millions of yen		Millions of yen					%
As of September 30, 2021		36,454				22,234				60.9
As of March 31, 2021		35,101				22,038				62.7
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 March 31, 2021		-			30.00			-				50.00		80.00
Year ending March 31, 2022		-			60.00
Year ending March 31, 2022 (Forecast)								-				60.00		120.00

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

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	25,000	15.6	900	28.3	800	21.4	520		-	120.57

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4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2021	4,366,117	shares	As of March 31, 2021	4,338,417	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	155,840	shares	As of March 31, 2021	25,628	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2021	4,259,919	shares	Six months ended September 30, 2020	4,294,152	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	6,983,590	8,765,349
Notes and accounts receivable - trade	7,959,111	7,706,768
Merchandise and finished goods	3,646,537	2,951,884
Work in process	1,151,343	1,351,511
Raw materials and supplies	2,252,540	2,429,487
Other	934,664	1,054,913
Allowance for doubtful accounts	(204)	(24)
Total current assets	22,927,582	24,259,890
Non-current assets
Property, plant and equipment	6,725,762	6,838,182
Intangible assets	557,799	574,401
Investments and other assets
Investment securities	3,625,519	3,427,491
Other	1,264,337	1,354,688
Total investments and other assets	4,889,857	4,782,179
Total non-current assets	12,173,419	12,194,763
Total assets	35,101,001	36,454,653
Liabilities
Current liabilities
Notes and accounts payable - trade	1,737,165	1,813,374
Electronically recorded obligations - operating	2,951,463	4,048,793
Short-term borrowings	5,105,785	5,025,035
Income taxes payable	173,071	297,478
Provisions	154,973	167,041
Other	1,365,684	1,337,206
Total current liabilities	11,488,144	12,688,929
Non-current liabilities
Long-term borrowings	428,001	420,560
Retirement benefit liability	156,043	175,657
Other	990,554	934,911
Total non-current liabilities	1,574,598	1,531,128
Total liabilities		13,062,742	14,220,058

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			(Thousands of yen)
		As of March 31, 2021	As of September 30, 2021
Net assets
Shareholders' equity
Share capital	3,221,868	3,258,349
Capital surplus	6,467,811	6,504,292
Retained earnings	10,769,680	11,063,180
Treasury shares	(62,626)	(403,632)
Total shareholders' equity	20,396,733	20,422,188
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,732,254	1,597,700
Foreign currency translation adjustment	(124,237)	176,846
Remeasurements of defined benefit plans	(7,417)	(6,796)
Total accumulated other comprehensive income	1,600,599	1,767,750
Non-controlling interests	40,925	44,655
Total net assets	22,038,259	22,234,595
Total liabilities and net assets		35,101,001	36,454,653

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		September 30, 2020	September 30, 2021
Net sales	10,163,237	12,987,242
Cost of sales	7,633,821	9,766,454
Gross profit	2,529,416	3,220,788
Selling, general and administrative expenses
Transportation costs	161,594	198,690
Salaries and bonuses	1,001,171	1,057,446
Technical research expenses	374,159	394,252
Other	801,181	845,007
Total selling, general and administrative expenses	2,338,106	2,495,396
Operating profit	191,309	725,391
Non-operating income
Interest income	3,010	24,153
Dividend income	97,100	71,532
Foreign exchange gains	-	1,003
Other	5,626	28,679
Total non-operating income	105,737	125,368
Non-operating expenses
Interest expenses	73,545	68,173
bank charge	31,949	49,364
Foreign exchange losses	15,925	-
Other	6,305	397
Total non-operating expenses	127,725	117,935
Ordinary profit	169,321	732,825
Extraordinary income
Gain on sale of non-current assets	20,452	1,111
Gain on sale of investment securities	-	7,191
Total extraordinary income	20,452	8,302
Extraordinary losses
Loss on sale of non-current assets	472	43
Total extraordinary losses	472	43
Profit before income taxes	189,302	741,083
Income taxes	563,122	231,000
Profit (loss)	(373,820)	510,083
Profit (loss) attributable to non-controlling interests	(168)	944
Profit (loss) attributable to owners of parent		(373,651)	509,139

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