Eagle Industry : Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2021

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 December 31, 2021 (Based on Japanese GAAP)

				February 1, 2022
Company name:	Eagle Industry Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	6486	URL https://www.ekkeagle.com/jp/
Representative:	Representative Director, President	Tetsuji Tsuru
Inquiries:	Senior Operating Officer, Division Manager	Sumio Ikeda	TEL [phone]
	Corporate Finance & Accounting Division
Scheduled date to file Quarterly Securities Report:	February 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 nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
(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 December 31, 2021	102,809		8.9	5,240	59.4	6,741		45.3	2,976	46.3
Nine months ended December 31, 2020	94,410		(12.2)	3,286	(17.6)	4,639		(5.4)	2,034	(12.0)
	Earnings per share		Diluted earnings per share
			Yen			Yen
Nine months ended December 31, 2021			60.61			-
Nine months ended December 31, 2020			41.44			-
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio		Net assets per share
	Millions of yen		Millions of yen				%		Yen
As of December 31, 2021	171,486			95,279				50.8	1,772.29
As of March 31, 2021	176,508			92,441				47.8	1,719.40

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, 2021	-	25.00	-	25.00	50.00
Year ending March 31, 2022	-	25.00	-
Year ending March 31, 2022 (Forecast)				25.00	50.00

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

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	139,000	6.5	5,800	(0.0)	7,700		(8.9)	3,800	(5.2)	77.37

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4. Notes

1. Changes in significant subsidiaries during the nine months ended December 31, 2021 (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 December 31, 2021	49,757,821	shares	As of March 31, 2021	49,757,821	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	634,361	shares	As of March 31, 2021	673,995	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended December 31, 2021	49,110,383	shares	Nine months ended December 31, 2020	49,084,355	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of December 31, 2021
Assets
Current assets
Cash and deposits	32,662	25,153
Trade receivables and contract assets	28,253	26,880
Electronically recorded monetary claims - operating	3,288	4,868
Merchandise and finished goods	7,402	10,057
Work in process	6,280	6,621
Raw materials and supplies	9,279	10,429
Other	6,288	6,475
Allowance for doubtful accounts	(344)	(84)
Total current assets	93,110	90,403
Non-current assets
Property, plant and equipment
Buildings and structures, net	23,370	22,065
Machinery, equipment and vehicles, net	23,277	22,144
Other, net	13,867	13,606
Total property, plant and equipment	60,515	57,816
Intangible assets
Goodwill	1,702	1,374
Other	1,795	1,626
Total intangible assets	3,497	3,000
Investments and other assets
Investment securities	12,077	12,934
Other	7,420	7,439
Allowance for doubtful accounts	(112)	(108)
Total investments and other assets	19,384	20,265
Total non-current assets	83,397	81,082
Total assets		176,508	171,486

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			(Millions of yen)
		As of March 31, 2021	As of December 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	8,253	6,825
Electronically recorded obligations - operating	2,830	2,723
Short-term borrowings	14,754	15,648
Income taxes payable	1,431	1,123
Provision for bonuses	2,547	1,965
Other provisions	522	700
Other	12,398	13,522
Total current liabilities	42,737	42,509
Non-current liabilities
Long-term borrowings	23,447	15,856
Provisions	316	315
Retirement benefit liability	16,052	15,929
Other	1,513	1,596
Total non-current liabilities	41,329	33,698
Total liabilities	84,067	76,207
Net assets
Shareholders' equity
Share capital	10,490	10,490
Capital surplus	11,310	11,296
Retained earnings	68,224	68,746
Treasury shares	(226)	(213)
Total shareholders' equity	89,799	90,320
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	402	491
Foreign currency translation adjustment	(2,690)	(1,111)
Remeasurements of defined benefit plans	(3,116)	(2,638)
Total accumulated other comprehensive income	(5,404)	(3,259)
Non-controlling interests	8,046	8,217
Total net assets	92,441	95,279
Total liabilities and net assets		176,508	171,486

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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
		December 31, 2020	December 31, 2021
Net sales	94,410	102,809
Cost of sales	73,698	79,420
Gross profit	20,712	23,388
Selling, general and administrative expenses	17,425	18,148
Operating profit	3,286	5,240
Non-operating income
Interest income	183	161
Dividend income	17	19
Share of profit of entities accounted for using equity method	1,173	768
Other	747	970
Total non-operating income	2,121	1,920
Non-operating expenses
Interest expenses	306	289
Foreign exchange losses	39	-
Loss on mothballing of operation	258	-
Other	164	129
Total non-operating expenses	769	419
Ordinary profit	4,639	6,741
Extraordinary income
Gain on sale of non-current assets	2	7
Gain on sale of investment securities	-	11
Total extraordinary income	2	18
Extraordinary losses
Loss on sale of non-current assets	5	18
Loss on retirement of non-current assets	42	60
Impairment losses	-	1,088
Total extraordinary losses	47	1,167
Profit before income taxes	4,594	5,591
Income taxes	1,559	1,616
Profit	3,035	3,974
Profit attributable to non-controlling interests	1,001	998
Profit attributable to owners of parent		2,034	2,976

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