ShinMaywa Industries : Announcement of "Consolidated Financial Results for the Nine Months Ended December 31, 2022"

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 Nine Months Ended December 31, 2022

[Japanese GAAP]

February 02, 2023

Company name: ShinMaywa Industries, Ltd.

Stock exchange listing: Tokyo

Code number: 7224

URL: https://www.shinmaywa.co.jp/

Representative: Tatsuyuki Isogawa ,President and Chief Executive Officer

Contact: Toshiki Kume ,Director, Member of the Board, Managing Executive Officer

Phone: [phone]

Scheduled date of filing quarterly securities report: February 13, 2023

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2022 (April 01, 2022 to December 31, 2022)

(1) Consolidated Operating Results						(% indicates changes from the previous corresponding period.)
		Net sales				Operating profit				Ordinary profit		Profit attributable to
									owners of parent
Nine months ended		Million yen		%		Million yen			%		Million yen	%		Million yen	%
December 31, 2022		160,546		3.9			6,003		(15.7)		6,724	(14.6)		4,507	(16.5)
December 31, 2021		154,578		5.1			7,125		8.0		7,878	15.9		5,398	42.3
(Note) Comprehensive income:	Nine months ended December 31, 2022:	¥			6,637 million	[	24.6%]
		Nine months ended December 31, 2021:	¥			5,326 million	[	15.0%]
		Basic earnings	Diluted earnings per
		per share				share
Nine months ended				Yen						Yen
December 31, 2022				68.42				-
December 31, 2021				82.05				-
(2) Consolidated Financial Position
		Total assets				Net assets			Capital adequacy ratio
As of		Million yen			Million yen						%
December 31, 2022		225,643			97,289						42.3
March 31, 2022		221,206			94,261						41.8
(Reference) Equity: As of	December 31, 2022:				¥		95,479 million
As of	March 31, 2022:				¥		92,465 million

2. Dividends

					Annual dividends
		1st	2nd		3rd		Year-end	Total
	quarter-end	quarter-end		quarter-end
		Yen		Yen		Yen		Yen	Yen
Fiscal year ended March 31, 2022		-		19.00		-		23.00	42.00
Fiscal year ending March 31, 2023		-		21.00		-
Fiscal year ending March 31, 2023								21.00	42.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No
(Note) Breakdown of the 3rd quarter dividend for the fiscal year ending March 31, 2023 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 01, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

			Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
				owners of parent	per share
			Million yen		%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year			222,000		2.4	8,000	(24.3)	8,700		(26.4)	5,600	(18.9)	84.96
(Note) Revision to the financial results forecast announced most recently:	Yes
* Notes:
(1) Changes in significant subsidiaries during the nine months ended December 31, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New	-	(Company name:									)
Exclusion:	-	(Company name:									)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 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
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2022:	70,000,000	shares
March 31, 2022:	70,000,000	shares
2) Total number of treasury shares at the end of the period:
December 31, 2022:	4,087,548	shares
March 31, 2022:	4,166,255	shares

3) Average number of shares during the period:
Nine months ended December 31, 2022:	65,882,033	shares
Nine months ended December 31, 2021:	65,798,167	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

		(Million yen)
	As of March 31,2022	As of December 31,2022
Assets
Current assets
Cash and deposits	26,600	16,986
Notes and accounts receivable - trade, and contract	62,114	58,515
assets
Electronically recorded monetary claims -	8,831	14,989
operating
Merchandise and finished goods	4,067	4,746
Work in process	21,619	27,014
Raw materials and supplies	21,238	25,242
Other	4,266	5,840
Allowance for doubtful accounts	(121)	(133)
Total current assets	148,615	153,202
Non-current assets
Property, plant and equipment
Buildings and structures, net	19,185	18,769
Other, net	23,244	23,548
Total property, plant and equipment	42,430	42,317
Intangible assets	2,876	2,811
Investments and other assets
Other	27,310	27,329
Allowance for doubtful accounts	(26)	(17)
Total investments and other assets	27,284	27,312
Total non-current assets	72,590	72,440
Total assets	221,206	225,643

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		(Million yen)
	As of March 31,2022	As of December 31,2022
Liabilities
Current liabilities
Notes and accounts payable - trade	25,898	27,737
Current portion of bonds payable	800	800
Short-term borrowings	2,891	12,846
Current portion of long-term borrowings	2,443	2,202
Income taxes payable	2,527	428
Provision for loss on construction contracts	3,194	3,061
Other	28,147	22,617
Total current liabilities	65,903	69,693
Non-current liabilities
Bonds payable	1,600	1,000
Long-term borrowings	44,519	42,543
Retirement benefit liability	12,962	13,189
Other	1,959	1,927
Total non-current liabilities	61,041	58,659
Total liabilities	126,945	128,353
Net assets
Shareholders' equity
Share capital	15,981	15,981
Capital surplus	15,737	15,657
Retained earnings	65,852	67,430
Treasury shares	(5,954)	(5,838)
Total shareholders' equity	91,617	93,231
Accumulated other comprehensive income
Valuation difference on available-for-sale	1,096	651
securities
Revaluation reserve for land	(376)	(376)
Foreign currency translation adjustment	821	2,087
Remeasurements of defined benefit plans	(694)	(115)
Total accumulated other comprehensive income	847	2,247
Non-controlling interests	1,795	1,810
Total net assets	94,261	97,289
Total liabilities and net assets	221,206	225,643

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

		(Million yen)
	For the nine months	For the nine months
	ended December 31,2021	ended December 31,2022
Net sales	154,578	160,546
Cost of sales	129,857	135,497
Gross profit	24,720	25,048
Selling, general and administrative expenses	17,594	19,044
Operating profit	7,125	6,003
Non-operating income
Interest income	43	54
Dividend income	164	172
Share of profit of entities accounted for using equity	123	201
method
Dividend income of insurance	166	165
Foreign exchange gains	357	508
Other	234	131
Total non-operating income	1,090	1,234
Non-operating expenses
Interest expenses	150	174
Cost of inactive noncurrent assets	91	91
Borrowing fees	9	8
Loss on securitization of receivables	7	49
Other	78	191
Total non-operating expenses	337	514
Ordinary profit	7,878	6,724
Extraordinary income
Gain on sale of investment securities	-	282
Gain on bargain purchase	486	-
Total extraordinary income	486	282
Extraordinary losses
Loss on disposal of non-current assets	150	84
Total extraordinary losses	150	84
Profit before income taxes	8,214	6,922
Income taxes - current	1,486	1,289
Income taxes - deferred	1,149	533
Total income taxes	2,635	1,823
Profit	5,579	5,099
Profit attributable to non-controlling interests	180	591
Profit attributable to owners of parent	5,398	4,507

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