ShinMaywa Industries : Announcement of "Consolidated Financial Results for the Year Ended March 31, 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 Year Ended March 31, 2023

[Japanese GAAP]

May 09, 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 Annual General Meeting of Shareholders: June 27, 2023

Scheduled date of commencing dividend payments: June 28, 2023

Scheduled date of filing annual securities report: June 27, 2023

Availability of supplementary briefing material on annual financial results: Yes

Schedule of annual financial results briefing session: Yes

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

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 01, 2022 to March 31, 2023)

(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
Fiscal year ended		Million yen		%	Million yen		%	Million yen	%	Million yen	%
March 31, 2023		225,175		3.9	9,293		(12.1)	9,902	(16.2)	7,313	5.9
March 31, 2022		216,823		3.6	10,569		0.9	11,821	5.7	6,907	25.9

(Note) Comprehensive income:	Fiscal year ended March 31, 2023:
	Fiscal year ended March 31, 2022:

¥	9,787 million	[	34.9%]
¥	7,258 million	[	(6.1) %]

	Basic earnings per	Diluted earnings per	Rate of return on	Ordinary profit to	Operating profit to
	share	share	equity	total assets ratio	net sales ratio
Fiscal year ended	Yen	Yen	%	%	%
March 31, 2023	111.00	-	7.6	4.4	4.1
March 31, 2022	104.96	-	7.7	5.5	4.9

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2023: Fiscal year ended March 31, 2022:

(2) Consolidated Financial Position

• 337 million
• 335 million

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Million yen		Million yen	%	Yen
March 31, 2023	226,907		100,439	43.5	1,498.16
March 31, 2022	221,206		94,261	41.8	1,404.53
(Reference) Equity: As of	March 31, 2023:	¥	98,747 million
As of	March 31, 2022:	¥	92,465 million
(3) Consolidated Cash Flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end
	operating activities	investing activities	financing activities
	of period
Fiscal year ended	Million yen		Million yen	Million yen	Million yen
March 31, 2023	6,404		(7,164)	(4,108)	22,535
March 31, 2022	15,998		(7,221)	(5,203)	26,549

2. Dividends

			Annual dividends					Payout	Dividends
						Total	to net
										ratio
		1st	2nd		3rd		Year-end	Total		dividends	assets
					(consolidated)
		quarter-end	quarter-end	quarter-end				(consolidated)
Fiscal year ended		Yen	Yen		Yen		Yen	Yen		Million yen	%	%
March 31, 2022		-	19.00		-		23.00	42.00		2,765	40.0	3.1
March 31, 2023		-	21.00		-		24.00	45.00		2,966	40.5	3.1
Fiscal year ending
March 31, 2024		-	22.50		-		22.50	45.00			40.6
(Forecast)
(Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2023 :
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

* Notes:
(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in
scope of consolidation):	No
New	-	(Company name:	)
Exclusion:	-	(Company name:	)

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):

March 31, 2023:	70,000,000	shares
March 31, 2022:	70,000,000	shares
2) Number of treasury shares at the end of the period:
March 31, 2023:	4,087,841	shares
March 31, 2022:	4,166,255	shares

3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2023:	65,889,008	shares
Fiscal Year ended March 31, 2022:	65,806,405	shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 01, 2022 to March 31, 2023)
(1) Non-consolidated Operating Results				(% indicates changes from the previous corresponding period.)
	Net sales			Operating profit		Ordinary profit	Net income
Fiscal year ended	Million yen		%		Million yen		%		Million yen	%	Million yen	%
March 31, 2023	127,247		(2.2)		207		(89.1)		4,299	(6.4)	4,798	91.4
March 31, 2022	130,082		(2.8)		1,904		(32.0)		4,594	7.6	2,507	89.9
	Basic earnings per share	Diluted earnings per share
Fiscal year ended			Yen			Yen
March 31, 2023			72.83			-
March 31, 2022			38.10			-
(2) Non-consolidated Financial Position
	Total assets			Net assets		Capital adequacy ratio	Net assets per share
As of	Million yen			Million yen			%		Yen
March 31, 2023	156,441			51,423			32.9		780.19
March 31, 2022	158,668			49,787			31.4		756.26
(Reference) Equity: As of	March 31, 2023:			¥		51,423 million
As of	March 31, 2022:			¥		49,787 million

Consolidated Financial Statements

Consolidated Balance Sheets

		(Million yen)
	As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	26,600	22,745
Notes and accounts receivable - trade, and contract	62,114	62,812
assets
Electronically recorded monetary claims -	8,831	8,604
operating
Merchandise and finished goods	4,067	4,805
Work in process	21,619	24,122
Raw materials and supplies	21,238	24,874
Other	4,266	4,920
Allowance for doubtful accounts	(121)	(395)
Total current assets	148,615	152,491
Non-current assets
Property, plant and equipment
Buildings and structures, net	19,185	19,030
Machinery, equipment and vehicles, net	7,196	6,397
Land	13,237	13,796
Construction in progress	775	1,135
Other, net	2,034	2,129
Total property, plant and equipment	42,430	42,488
Intangible assets	2,876	2,702
Investments and other assets
Investment securities	11,588	11,170
Long-term loans receivable	231	405
Retirement benefit asset	3,711	4,542
Deferred tax assets	6,703	7,533
Other	5,076	5,590
Allowance for doubtful accounts	(26)	(17)
Total investments and other assets	27,284	29,224
Total non-current assets	72,590	74,415
Total assets	221,206	226,907

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		(Million yen)
	As of March 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	25,898	27,310
Current portion of bonds payable	800	800
Short-term borrowings	2,891	6,372
Current portion of long-term borrowings	2,443	2,210
Accrued expenses	12,786	10,990
Income taxes payable	2,527	2,337
Provision for bonuses for directors (and other	281	267
officers)
Provision for product warranties	42	58
Provision for loss on construction contracts	3,194	3,168
Other	15,036	15,007
Total current liabilities	65,903	68,522
Non-current liabilities
Bonds payable	1,600	800
Long-term borrowings	44,519	42,234
Deferred tax liabilities	154	104
Deferred tax liabilities for land revaluation	47	47
Retirement benefit liability	12,962	12,973
Other	1,758	1,786
Total non-current liabilities	61,041	57,945
Total liabilities	126,945	126,467
Net assets
Shareholders' equity
Share capital	15,981	15,981
Capital surplus	15,737	15,657
Retained earnings	65,852	70,236
Treasury shares	(5,954)	(5,838)
Total shareholders' equity	91,617	96,037
Accumulated other comprehensive income
Valuation difference on available-for-sale	1,096	633
securities
Revaluation reserve for land	(376)	(376)
Foreign currency translation adjustment	821	2,116
Remeasurements of defined benefit plans	(694)	335
Total accumulated other comprehensive income	847	2,709
Non-controlling interests	1,795	1,692
Total net assets	94,261	100,439
Total liabilities and net assets	221,206	226,907

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