ShinMaywa Industries : Announcement of "Consolidated Financial Results for the Three Months Ended June 30, 2023"

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 Three Months Ended June 30, 2023

[Japanese GAAP]

August 01, 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: August 09, 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 Three Months Ended June 30, 2023 (April 01, 2023 to June 30, 2023)

(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
Three months ended		Million yen		%	Million yen		%	Million yen	%	Million yen	%
June 30, 2023		52,399		10.9	637		(19.5)	1,218	(16.0)	647	26.4
June 30, 2022		47,262		1.7	792		(43.4)	1,450	(6.1)	512	(41.3)

(Note) Comprehensive income:	Three months ended June 30, 2023:
	Three months ended June 30, 2022:

¥	1,610 million	[	(20.8) %]
¥	2,033 million	[	80.8%]

	Basic earnings	Diluted earnings per
	per share		share
Three months ended	Yen			Yen
June 30, 2023	9.82			-
June 30, 2022	7.78			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio
As of	Million yen			Million yen	%
June 30, 2023	230,562			100,327	42.8
March 31, 2023	226,907			100,439	43.5
(Reference) Equity: As of	June 30, 2023:	¥	98,674 million
As of	March 31, 2023:	¥	98,747 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, 2023		-		21.00		-		24.00	45.00
Fiscal year ending March 31, 2024		-
Fiscal year ending March 31, 2024				22.50		-		22.50	45.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No
(Note) Breakdown of the 1st quarter dividend for the fiscal year ending March 31, 2024 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 01, 2023 to March 31, 2024)

(% 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			270,000		19.9	12,000	29.1	11,700	18.2	7,300	(0.2)	110.75
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the three months ended June 30, 2023
(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):

June 30, 2023:	70,000,000	shares
March 31, 2023:	70,000,000	shares
2) Number of treasury shares at the end of the period:
June 30, 2023:	4,087,948	shares
March 31, 2023:	4,087,841	shares

3) Average number of shares outstanding during the period:
Three months ended June 30, 2023:	65,912,091	shares
Three months ended June 30, 2022:	65,833,624	shares

(How to obtain supplementary briefing material on quarterly financial results)

Supplementary briefing material on quarterly financial results is disclosed on the Company's website.

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

		(Million yen)
	As of March 31, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits	22,745	17,472
Notes and accounts receivable - trade, and contract	62,812	58,382
assets
Electronically recorded monetary claims -	8,604	14,717
operating
Merchandise and finished goods	4,805	5,447
Work in process	24,122	27,614
Raw materials and supplies	24,874	25,966
Other	4,920	6,200
Allowance for doubtful accounts	(395)	(414)
Total current assets	152,491	155,386
Non-current assets
Property, plant and equipment
Buildings and structures, net	19,030	19,131
Other, net	23,458	23,376
Total property, plant and equipment	42,488	42,507
Intangible assets	2,702	2,570
Investments and other assets
Other	29,241	30,113
Allowance for doubtful accounts	(17)	(16)
Total investments and other assets	29,224	30,097
Total non-current assets	74,415	75,175
Total assets	226,907	230,562

1

		(Million yen)
	As of March 31, 2023	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	27,310	27,411
Current portion of bonds payable	800	800
Short-term borrowings	6,372	13,698
Current portion of long-term borrowings	2,210	2,207
Income taxes payable	2,337	631
Provision for loss on construction contracts	3,168	3,151
Other	26,323	25,266
Total current liabilities	68,522	73,166
Non-current liabilities
Bonds payable	800	600
Long-term borrowings	42,234	41,433
Retirement benefit liability	12,973	13,048
Other	1,937	1,985
Total non-current liabilities	57,945	57,067
Total liabilities	126,467	130,234
Net assets
Shareholders' equity
Share capital	15,981	15,981
Capital surplus	15,657	15,657
Retained earnings	70,236	69,302
Treasury shares	(5,838)	(5,838)
Total shareholders' equity	96,037	95,102
Accumulated other comprehensive income
Valuation difference on available-for-sale	633	1,287
securities
Revaluation reserve for land	(376)	(376)
Foreign currency translation adjustment	2,116	2,262
Remeasurements of defined benefit plans	335	398
Total accumulated other comprehensive income	2,709	3,571
Non-controlling interests	1,692	1,653
Total net assets	100,439	100,327
Total liabilities and net assets	226,907	230,562

2

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the three months)

		(Million yen)
	For the three months	For the three months
	ended June 30, 2022	ended June 30, 2023
Net sales	47,262	52,399
Cost of sales	40,318	45,161
Gross profit	6,944	7,238
Selling, general and administrative expenses	6,151	6,600
Operating profit	792	637
Non-operating income
Interest income	16	24
Dividend income	102	136
Share of profit of entities accounted for using equity	-	24
method
Foreign exchange gains	690	551
Other	48	46
Total non-operating income	857	782
Non-operating expenses
Interest expenses	56	105
Share of loss of entities accounted for using equity	84	-
method
Cost of inactive noncurrent assets	11	37
Borrowing fees	3	2
Loss on securitization of receivables	7	43
Other	35	13
Total non-operating expenses	199	202
Ordinary profit	1,450	1,218
Extraordinary income
Gain on sale of investment securities	31	-
Total extraordinary income	31	-
Extraordinary losses
Loss on disposal of non-current assets	9	9
Total extraordinary losses	9	9
Profit before income taxes	1,472	1,209
Income taxes - current	353	469
Income taxes - deferred	438	(15)
Total income taxes	792	453
Profit	680	755
Profit attributable to non-controlling interests	168	108
Profit attributable to owners of parent	512	647

3