T Hasegawa : Summary of Consolidated Financial Results for the Nine Months Ended June 30, 2020

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 Nine Months Ended June 30, 2020 (Based on Japanese GAAP)

										August 3, 2020
Company name:	T. HASEGAWA CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	4958	URL https://www.t-hasegawa.co.jp/
Representative:	President & COO			Takao Umino
Inquiries:	Director & Executive Vice President		Minoru Nakamura		TEL [phone]
Scheduled date to file Quarterly Securities Report:			August 11, 2020
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 nine months ended June 30, 2020 (from October 1, 2019 to June 30, 2020)
(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	%
Nine months ended June 30, 2020	37,648	(0.2)	4,339	12.6	4,696	12.5	4,238	39.3
Nine months ended June 30, 2019	37,718	2.3	3,853	(0.9)	4,174	(0.2)	3,043	1.8
Note: Comprehensive income	Nine months ended June 30, 2020	¥3,341 million	[-%]
		Nine months ended June 30, 2019	¥(279) million	[-%]
		Earnings per share	Diluted earnings per share
				Yen			Yen
Nine months ended June 30, 2020		102.26			101.88
Nine months ended June 30, 2019		73.08			72.88
(2) Consolidated financial position
			Total assets		Net assets		Equity ratio
			Millions of yen	Millions of yen		%
As of June 30, 2020			113,255		92,244		81.3
As of September 30, 2019		113,863		90,344		79.2
Reference: Equity	As of June 30, 2020	¥92,034 million
	As of September 30, 2019	¥90,148 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 September 30, 2019	-	17.00	-	18.00	35.00
Year ending September 30, 2020	-	18.00	-
Year ending September 30, 2020				20.00	38.00
(Forecast)
Note: Revision of cash dividend forecast most recently announced: No

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3. Forecast of consolidated financial results for the year ending September 30, 2020 (from October 1, 2019 to September 30, 2020)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen	%	Yen
Full year	50,500	0.0	4,880		4.3	5,320		2.8	4,640	12.6	112.76

Note: Revision of consolidated financial results forecast most recently announced: No

4. Notes

1. Changes in significant subsidiaries during the nine months ended June 30, 2020 (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

Yes

(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:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
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, 2020	42,708,154	shares	As of September 30, 2019	42,708,154	shares
Number of treasury shares at the end of the period
	As of June 30, 2020	1,233,044	shares	As of September 30, 2019	1,257,206	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended June 30, 2020	41,453,310	shares	Nine months ended June 30, 2019	41,647,144	shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of forecasts of financial results, and other special matters
  The forward-looking statements, including the earnings forecasts, shown in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize such statements. Actual results may differ substantially due to various factors.

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of September 30, 2019	As of June 30, 2020
Assets
Current assets
Cash and deposits	15,730	14,732
Notes and accounts receivable - trade	15,792	16,039
Securities	7,999	11,999
Merchandise and finished goods	7,236	7,657
Work in process	107	150
Raw materials and supplies	7,320	7,047
Other	2,469	845
Allowance for doubtful accounts	(35)	(42)
Total current assets	56,620	58,430
Non-current assets
Property, plant and equipment
Buildings and structures, net	16,127	15,525
Other, net	12,690	12,510
Total property, plant and equipment	28,817	28,035
Intangible assets
Goodwill	716	599
Other	3,461	3,316
Total intangible assets	4,177	3,915
Investments and other assets
Investment securities	22,680	21,335
Retirement benefit asset	18	19
Other	1,598	1,570
Allowance for doubtful accounts	(48)	(51)
Total investments and other assets	24,248	22,873
Total non-current assets	57,243	54,824
Total assets	113,863	113,255
Liabilities
Current liabilities
Notes and accounts payable - trade	5,401	5,315
Current portion of long-term borrowings	0	-
Income taxes payable	1,648	513
Provision for bonuses	1,296	516
Provision for bonuses for directors (and other officers)	61	-
Other	3,301	3,284
Total current liabilities	11,709	9,629
Non-current liabilities
Deferred tax liabilities	3,787	3,370
Retirement benefit liability	6,998	7,153
Asset retirement obligations	68	69
Long-term accounts payable - other	887	654
Other	68	132
Total non-current liabilities	11,809	11,380
Total liabilities		23,519	21,010

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			(Millions of yen)
		As of September 30, 2019	As of June 30, 2020
Net assets
Shareholders' equity
Share capital	5,364	5,364
Capital surplus	7,297	7,298
Retained earnings	67,570	70,317
Treasury shares	(1,856)	(1,820)
Total shareholders' equity	78,377	81,160
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	13,540	12,607
Foreign currency translation adjustment	(1,459)	(1,463)
Remeasurements of defined benefit plans	(309)	(270)
Total accumulated other comprehensive income	11,771	10,874
Share acquisition rights	195	210
Total net assets	90,344	92,244
Total liabilities and net assets		113,863	113,255

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Nine months ended	Nine months ended
		June 30, 2019	June 30, 2020
Net sales	37,718	37,648
Cost of sales	23,272	22,999
Gross profit	14,446	14,649
Selling, general and administrative expenses	10,592	10,310
Operating profit	3,853	4,339
Non-operating income
Interest income	63	72
Dividend income	203	197
Foreign exchange gains	-	6
Other	88	95
Total non-operating income	355	371
Non-operating expenses
Interest expenses	0	1
Foreign exchange losses	26	-
Other	8	12
Total non-operating expenses	34	13
Ordinary profit	4,174	4,696
Extraordinary income
Gain on sales of non-current assets	-	320
Gain on sales of investment securities	-	867
Total extraordinary income	-	1,187
Extraordinary losses
Loss on abandonment of non-current assets	49	34
Total extraordinary losses	49	34
Profit before income taxes	4,125	5,849
Income taxes	1,081	1,610
Profit	3,043	4,238
Profit attributable to owners of parent		3,043	4,238

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Consolidated statements of comprehensive income (cumulative)

		(Millions of yen)
	Nine months ended	Nine months ended
	June 30, 2019	June 30, 2020
Profit	3,043	4,238
Other comprehensive income
Valuation difference on available-for-sale securities	(2,086)	(932)
Foreign currency translation adjustment	(1,273)	(3)
Remeasurements of defined benefit plans, net of tax	37	38
Total other comprehensive income	(3,323)	(897)
Comprehensive income	(279)	3,341
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	(279)	3,341
Comprehensive income attributable to non-controlling	-	-
interests

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Segment Information

1. Nine months ended June 30, 2019 (from October 1, 2018 to June 30, 2019) Net sales and income or loss by reporting segment

						(Millions of yen)
		Reporting segment		Adjustment	Consolidated
	Japan	Asia	USA	Total	(Note 1)	(Note 2)
Net sales
Sales to external customers	27,668	5,742	4,307	37,718	－	37,718
Inter-segment sales or transfers	554	156	105	815	(815)	－
Total	28,222	5,898	4,412	38,534	(815)	37,718
Segment profit	3,368	348	70	3,787	66	3,853
Notes

1. The adjustments on segment profit of 66 million yen include 52 million yen adjustments of elimination of internal transactions between segments and 13 million yen adjustments of inventories related to inter-segment transactions, and 0 million yen for others.
2. Segment profit is adjusted to operating income of consolidated quarterly statements of income.

2. Nine months ended June 30, 2020 (from October 1, 2019 to June 30, 2020) Net sales and income or loss by reporting segment

						(Millions of yen)
		Reporting segment		Adjustment	Consolidated
	Japan	Asia	USA	Total	(Note 1)	(Note 2)
Net sales
Sales to external customers	27,279	5,795	4,573	37,648	－	37,648
Inter-segment sales or transfers	563	140	100	804	(804)	－
Total	27,843	5,936	4,674	38,453	(804)	37,648
Segment profit	3,147	749	411	4,309	30	4,339
Notes

1. The adjustments on segment profit of 30 million yen include 41 million yen adjustments of elimination of internal transactions between segments and negative 7 million yen adjustments of inventories related to inter-segment transactions, and negative 3 million yen for others.
2. Segment profit is adjusted to operating income of consolidated quarterly statements of income.

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