Sakata INX : Consolidated Financial Results for the Six Months Ended June 30, 2021［Japanese GAAP］

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 June 30, 2021 [Japanese GAAP]

		August 11, 2021
Company name:	SAKATA INX CORPORATION
Stock exchange listing:	Tokyo
Code number:	4633
URL:	http://www.inx.co.jp/
Representative:	Yoshiaki Ueno	Representative Director, President & CEO
Contact:	Daisuke Sugahara	General Manager, Finance & Accounting Div.
Phone:	[phone]

Scheduled date of filing quarterly securities report:			August 11, 2021
Scheduled date of commencing dividend payments:		September 3, 2021
Availability of supplementary briefing material on quarterly financial results: Yes
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 June 30, 2021 (January 1, 2021 to June 30, 2021)
(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales			Operating income	Ordinary income	Net income attributable
			to owners of parent
Six months ended	Million yen		%		Million yen	%	Million yen	%	Million yen	%
June 30, 2021	88,676		11.6		5,045	58.6	5,852	126.5	4,039	169.7
June 30, 2020	79,472		(4.4)		3,181	4.3	2,583	(30.5)	1,497	(37.2)

(Note) Comprehensive income: Six months ended June 30, 2021: Six months ended June 30, 2020

¥	8,460million	[	-%]
¥	(1,370)million	[	-%]

Basic earnings

Diluted earnings

per share

per share

Six months ended

Yen

Yen

June 30, 2021

69.14

-

June 30, 2020

25.65

-

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

As of

Million yen

Million yen

%

June 30, 2021

156,290

89,043

53.4

December 31, 2020

145,272

81,421

52.6

(Note) Equity: As of

June 30, 2021:

¥

83,472million

As of December 31, 2020:

¥

76,360million

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Fiscal year ended December 31, 2020

Yen

Yen

Yen

Yen

Yen

-

15.00

-

15.00

30.00

Fiscal year ending December 31, 2021

-

15.00

Fiscal year ending December 31, 2021 (Forecast)

-

15.00

30.00

(Note) Revision to the forecast for dividends announced most recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2021 (January 1, 2021 to December 31, 2021)

(% indicates changes from the previous corresponding period.)

							Net income	Basic earnings
	Net sales	Operating income	Ordinary income	attributable to
	per share
							owners of parent
Full year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
179,000	10.8	9,000	24.8	10,300	32.2	7,300	38.4	124.94

(Note) Revision to the financial results forecast announced most recently: Yes

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

1. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement

1)	Changes in accounting policies due to the revision of accounting standards:	No
2)	Changes in accounting policies other than 1) above:	No
3)	Changes in accounting estimates:	No
4)	Retrospective restatement:	No

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

	June 30, 2021:	62,601,161shares
	December 31, 2020:	62,601,161shares
2)	Total number of treasury shares at the end of the period:
	June 30, 2021:	4,164,358shares
	December 31, 2020:	4,182,625shares
3)	Average number of shares during the period:
	Six months ended June 30, 2021:	58,426,329shares
	Six months ended June 30, 2020:	58,407,601shares

• This consolidated financial results are not subject to quarterly review procedures by Certified Public Accountants or audit firm.
• Explanation of appropriate use of financial forecasts and other special notes
  The above financial forecasts are based on the current available information in the Company and certain reasonable assumption to the Company, and we don't commit to achieve these forecasting numbers. Actual results may differ from these forecasts by a variety of reasons.
• Supplementary information will be disclosed on TDnet on August 11, 2021 and will be uploaded on the Company's website.

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

		(Million yen)
	As of December 31,2020	As of June 30,2021
Assets
Current assets
Cash and deposits	12,427	12,188
Notes and accounts receivable - trade	43,083	47,341
Merchandise and finished goods	10,462	11,496
Work in process	1,119	1,258
Raw materials and supplies	9,602	12,225
Other	1,542	1,994
Allowance for doubtful accounts	(596)	(563)
Total current assets	77,640	85,942
Non-current assets
Property, plant and equipment
Buildings and structures, net	16,134	16,595
Machinery, equipment and vehicles, net	9,282	9,640
Land	8,847	9,284
Leased assets, net	414	377
Construction in progress	3,514	5,071
Other, net	2,144	2,221
Total property, plant and equipment	40,338	43,190
Intangible assets
Goodwill	501	530
Other	206	508
Total intangible assets	707	1,038
Investments and other assets
Investment securities	25,176	24,574
Other	1,824	1,989
Allowance for doubtful accounts	(414)	(444)
Total investments and other assets	26,586	26,118
Total non-current assets	67,632	70,348
Total assets	145,272	156,290

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		(Million yen)
	As of December 31,2020	As of June 30,2021
Liabilities
Current liabilities
Notes and accounts payable - trade	16,376	19,562
Electronically recorded obligations - operating	11,309	10,665
Short-term borrowings	4,533	4,084
Current portion of long-term borrowings	2,771	3,490
Accrued expenses	3,563	3,714
Income taxes payable	614	725
Provision for bonuses	555	550
Other	2,375	2,646
Total current liabilities	42,315	45,438
Non-current liabilities
Bonds payable	‐	1,000
Long-term borrowings	9,754	8,275
Retirement benefit liability	4,940	4,936
Asset retirement obligations	71	72
Other	6,768	7,522
Total non-current liabilities	21,535	21,807
Total liabilities	63,850	67,246
Net assets
Shareholders' equity
Capital stock	7,472	7,472
Capital surplus	5,672	5,675
Retained earnings	73,918	76,949
Treasury shares	(4,027)	(4,010)
Total shareholders' equity	83,035	86,087
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,652	1,998
Deferred gains or losses on hedges	(0)	(1)
Foreign currency translation adjustment	(7,281)	(3,653)
Remeasurements of defined benefit plans	(1,045)	(958)
Total accumulated other comprehensive income	(6,674)	(2,614)
Non-controlling interests	5,060	5,571
Total net assets	81,421	89,043
Total liabilities and net assets	145,272	156,290

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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 June 30,2020	ended June 30,2021
Net sales	79,472	88,676
Cost of sales	62,037	68,928
Gross profit	17,434	19,747
Selling, general and administrative expenses	14,252	14,701
Operating income	3,181	5,045
Non-operating income
Interest income	45	38
Dividend income	174	167
Real estate rent	95	90
Equity in earnings of affiliates	-	542
Other	115	135
Total non-operating income	431	974
Non-operating expenses
Interest expenses	130	113
Equity in losses of affiliates	249	-
Foreign exchange losses	616	-
Other	33	54
Total non-operating expenses	1,029	168
Ordinary income	2,583	5,852
Extraordinary income
Gain on sales of investment securities	-	71
Total extraordinary income	-	71
Extraordinary losses
Loss on sales of property, plant and equipment	-	22
Loss on valuation of investment securities	3	-
Expense on restructuring of organization	58	-
Total extraordinary losses	61	22
Income before income taxes	2,522	5,901
Income taxes - current	936	1,340
Income taxes - deferred	(109)	190
Total income taxes	827	1,530
Net income	1,695	4,370
Net income attributable to non-controlling interests	197	331
Net income attributable to owners of parent	1,497	4,039

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