Shindengen Electric Manufacturing : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022 (Based on Japanese GAAP)（NaNKB）

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 Three Months Ended June 30, 2022 (Based on Japanese GAAP)

August 8, 2022

Company name:	Shindengen Electric Manufacturing Co., Ltd
Stock exchange listing:	Tokyo
Stock code:	6844	URL https://www.shindengen.co.jp/
Representative:	President	Yoshinori Suzuki

Inquiries:	Manager of Corporate Planning Group,	Isao matsubara	TEL [phone]
Planning Dept.
Scheduled date to file Quarterly Securities Report:	August 10, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)

(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	%
Three months ended June 30, 2022		23,566		4.7			1,356	(17.1)		1,977		26.8		1,332	(23.5)
Three months ended June 30, 2021		22,499		17.9			1,635		-		1,559			-		1,741	-
Note: Comprehensive income Three months ended June 30, 2022				¥2,635 million	[21.4%]
	Three months ended June 30, 2021				¥2,171 million	[-%]
			Earnings per share				Diluted earnings per share
						Yen						Yen
Three months ended June 30, 2022				129.28						-
Three months ended June 30, 2021				168.98						-
(2) Consolidated financial position
			Total assets					Net assets		Equity ratio
			Millions of yen				Millions of yen					%
As of June 30, 2022			134,664						58,833				43.7
As of March 31, 2022			135,041						57,229				42.4
Reference: Equity	As of June 30, 2022	¥58,833	million
	As of March 31, 2022	¥57,229 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 March 31, 2022			-				0.00				-				100.00		100.00
Year ending March 31, 2023			-
Year ending March 31, 2023 (Forecast)							0.00				-				130.00		130.00

Note: Revision of cash dividend forecast most recently announced: No

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3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
51,500	12.2	2,400	(31.2)	2,400	(29.2)			2,000	(41.3)	194.04
September 30, 2022
Full year	108,000	17.2	5,700	2.5	5,700	(2.2)			4,700	(20.4)	456.01
Note: Revision of consolidated financial results forecast most recently announced: No
4. Notes
(1) Changes in significant subsidiaries during the three months ended June 30, 2022				No
(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
(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:		No
Changes in accounting policies due to other reasons:						No
Changes in accounting estimates:								Yes
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 June 30, 2022	10,338,884	shares	As of March 31, 2022	10,338,884	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	31,903	shares	As of March 31, 2022	31,820	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2022	10,307,011	shares	Three months ended June 30, 2021	10,305,447	shares

• Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
• Explanation of proper use of financial results forecast, and other special matters (Caution concerning forward-looking statements)
  The forward-looking statements, including the financial results forecast shown in this document, are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. As such, they do not constitute guarantees by the Company of future performance. Actual performance and other results may differ materially due to various factors.

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	29,613	28,972
Notes and accounts receivable - trade	18,919	18,281
Merchandise and finished goods	8,790	10,684
Work in process	5,561	5,856
Raw materials and supplies	13,938	15,180
Other	5,156	3,032
Allowance for doubtful accounts	(22)	(22)
Total current assets	81,958	81,984
Non-current assets
Property, plant and equipment
Buildings and structures, net	17,962	17,951
Machinery, equipment and vehicles, net	8,907	9,420
Land	4,560	4,610
Leased assets, net	905	928
Construction in progress	1,753	1,220
Other, net	1,984	2,098
Total property, plant and equipment	36,073	36,229
Intangible assets
Software	454	523
Leased assets	8	6
Other	284	191
Total intangible assets	747	721
Investments and other assets
Investment securities	14,807	14,337
Deferred tax assets	703	590
Other	797	846
Allowance for doubtful accounts	(46)	(46)
Total investments and other assets	16,262	15,728
Total non-current assets	53,083	52,679
Total assets	135,041	134,664

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			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	16,657	17,287
Short-term borrowings	5,100	5,300
Current portion of bonds payable	1,450	1,425
Lease liabilities	331	436
Income taxes payable	414	132
Provision for bonuses	951	-
Other	4,907	5,071
Total current liabilities	29,813	29,653
Non-current liabilities
Bonds payable	3,850	3,500
Long-term borrowings	28,275	26,675
Lease liabilities	874	815
Deferred tax liabilities	334	426
Retirement benefit liability	12,217	12,386
Provision for product warranties	1,589	1,538
Asset retirement obligations	803	775
Other	55	61
Total non-current liabilities	47,999	46,177
Total liabilities	77,812	75,831
Net assets
Shareholders' equity
Share capital	17,823	17,823
Capital surplus	7,733	7,733
Retained earnings	29,949	30,250
Treasury shares	(117)	(117)
Total shareholders' equity	55,388	55,690
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,396	2,052
Foreign currency translation adjustment	(871)	753
Remeasurements of defined benefit plans	314	336
Total accumulated other comprehensive income	1,840	3,142
Total net assets	57,229	58,833
Total liabilities and net assets		135,041	134,664

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

		(Millions of yen)
	Three months ended	Three months ended
	June 30, 2021	June 30, 2022
Net sales	22,499	23,566
Cost of sales	17,693	18,584
Gross profit	4,805	4,982
Selling, general and administrative expenses	3,170	3,626
Operating profit	1,635	1,356
Non-operating income
Interest income	17	26
Dividend income	185	208
Foreign exchange gains	-	429
Share of profit of entities accounted for using equity method	8	42
Royalty income	3	3
Other	52	41
Total non-operating income	267	750
Non-operating expenses
Interest expenses	59	62
Foreign exchange losses	172	-
Other	111	66
Total non-operating expenses	343	129
Ordinary profit	1,559	1,977
Extraordinary income
Gain on sale of investment securities	1,025	-
Gain on sale of non-current assets	64	-
Total extraordinary income	1,089	-
Extraordinary losses
Loss on valuation of investment securities	36	-
Total extraordinary losses	36	-
Profit before income taxes	2,612	1,977
Income taxes - current	606	313
Income taxes - deferred	265	331
Total income taxes	871	645
Profit	1,741	1,332
Profit attributable to
Profit attributable to owners of parent	1,741	1,332
Profit attributable to non-controlling interests	-	-
Other comprehensive income
Valuation difference on available-for-sale securities	(469)	(344)
Foreign currency translation adjustment	905	1,480
Remeasurements of defined benefit plans, net of tax	18	21
Share of other comprehensive income of entities accounted	(25)	144
for using equity method
Total other comprehensive income	429	1,302
Comprehensive income	2,171	2,635
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	2,171	2,635
Comprehensive income attributable to non-controlling interests	-	-

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