Eagle Industry : Summary of Consolidated Financial Results for the Year Ended March 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 Year Ended March 31, 2021

(Based on Japanese GAAP)

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
	Corporate Finance & Accounting Division
Scheduled date of ordinary general meeting of shareholders:	June 24, 2021
Scheduled date to file Securities Report:	June 24, 2021
Scheduled date to commence dividend payments:	June 25, 2021
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:		Yes

May 13, 2021

TEL [phone]

										((Amounts less than one million yen are rounded down))
1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
(1) Consolidated operating results												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		%
Year ended March 31, 2021	130,513			(8.2)	5,802	0.5		8,447	24.9		4,010		37.9
Year ended March 31, 2020	142,106			(4.9)	5,772	(40.8)		6,766	(42.2)	2,907		(58.7)
	Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			share		owners of				assets			sales
								parent/equity
		Yen			Yen			%						%				%
Year ended March 31, 2021		81.70			-			5.0						4.9				4.4
Year ended March 31, 2020		59.24			-			3.7						4.0				4.1
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen					%						Yen
As of March 31, 2021			176,508				92,441					47.8				1,719.40
As of March 31, 2020			166,800				82,019					44.9				1,524.62
(3) Consolidated cash flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities		at end of period
	Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended March 31, 2021			17,849				(5,203)					(2,661)					31,545
Year ended March 31, 2020			16,043				(10,888)					(4,064)					20,089
2. Cash dividends
						Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
															to net assets
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
	Yen					Yen	Yen		Yen	Yen	Millions of yen		%			%
Year ended March 31, 2020	-				25.00	-		25.00	50.00		2,454		84.4			3.1
Year ended March 31, 2021	-				25.00	-		25.00	50.00		2,454		61.2			3.1
Year ending March 31, 2022	-				25.00	-			25.00	50.00				58.4
(Forecast)

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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
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
69,000	19.1	2,000	-	3,000	174.8		1,200		-	24.45
September 30, 2021
Full year	143,000	9.6	6,400	10.3	8,500	0.6		4,200		4.7	85.57
4. Notes
(1) Changes in significant subsidiaries during the year ended March 31, 2021			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) 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:	No
Changes in accounting policies due to other reasons:					Yes
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of March 31, 2021	49,757,821	shares	As of March 31, 2020	49,757,821	shares
Number of treasury shares at the end of the period
	As of March 31, 2021	673,995	shares	As of March 31, 2020	673,253	shares
Average number of shares during the period
	Year ended March 31, 2021	49,084,233	shares	Year ended March 31, 2020	49,085,063	shares

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	21,438	32,662
Notes and accounts receivable - trade	27,152	-
Notes receivable - trade	-	2,050
Accounts receivable - trade	-	26,203
Electronically recorded monetary claims - operating	3,092	3,288
Merchandise and finished goods	7,075	7,402
Work in process	5,794	6,280
Raw materials and supplies	9,699	9,279
Accounts receivable - other	2,992	2,649
Other	3,427	3,638
Allowance for doubtful accounts	(103)	(344)
Total current assets	80,567	93,110
Non-current assets
Property, plant and equipment
Buildings and structures	43,153	45,002
Accumulated depreciation	(19,486)	(21,631)
Buildings and structures, net	23,666	23,370
Machinery, equipment and vehicles	75,920	79,813
Accumulated depreciation	(51,165)	(56,536)
Machinery, equipment and vehicles, net	24,755	23,277
Tools, furniture and fixtures	13,854	15,342
Accumulated depreciation	(10,403)	(11,719)
Tools, furniture and fixtures, net	3,451	3,622
Land	5,916	6,141
Leased assets	1,695	2,029
Accumulated depreciation	(751)	(947)
Leased assets, net	943	1,082
Construction in progress	3,200	3,021
Total property, plant and equipment	61,934	60,515
Intangible assets
Goodwill	2,167	1,702
Other	2,467	1,795
Total intangible assets	4,635	3,497
Investments and other assets
Investment securities	11,365	12,077
Long-term loans receivable	710	602
Deferred tax assets	6,167	5,368
Other	1,527	1,449
Allowance for doubtful accounts	(108)	(112)
Total investments and other assets	19,663	19,384
Total non-current assets	86,232	83,397
Total assets		166,800	176,508

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			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	7,503	8,253
Electronically recorded obligations - operating	3,031	2,830
Short-term borrowings	2,493	2,389
Current portion of long-term borrowings	11,948	12,365
Accounts payable - other	2,395	2,465
Lease obligations	381	355
Income taxes payable	1,207	1,431
Contract liabilities	-	957
Deposits received from employees	3,914	4,054
Provision for bonuses	2,603	2,547
Provision for loss on order received	1,020	514
Other provisions	5	8
Other	4,703	4,565
Total current liabilities	41,208	42,737
Non-current liabilities
Long-term borrowings	22,690	23,447
Lease obligations	757	663
Retirement benefit liability	18,890	16,052
Provision for retirement benefits for directors (and other	10	15
officers)
Provision for environmental measures	297	300
Negative goodwill	93	77
Other	832	772
Total non-current liabilities	43,572	41,329
Total liabilities	84,780	84,067
Net assets
Shareholders' equity
Share capital	10,490	10,490
Capital surplus	11,310	11,310
Retained earnings	66,745	68,224
Treasury shares	(225)	(226)
Total shareholders' equity	88,320	89,799
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	292	402
Foreign currency translation adjustment	(8,095)	(2,690)
Remeasurements of defined benefit plans	(5,682)	(3,116)
Total accumulated other comprehensive income	(13,485)	(5,404)
Non-controlling interests	7,184	8,046
Total net assets	82,019	92,441
Total liabilities and net assets		166,800	176,508

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		March 31, 2020	March 31, 2021
Net sales	142,106	130,513
Cost of sales	111,315	101,773
Gross profit	30,790	28,740
Selling, general and administrative expenses	25,018	22,938
Operating profit	5,772	5,802
Non-operating income
Interest income	268	226
Dividend income	28	24
Share of profit of entities accounted for using equity method	1,503	1,547
Foreign exchange gains	-	685
Rental income	118	100
Other	494	918
Total non-operating income	2,413	3,503
Non-operating expenses
Interest expenses	409	407
Foreign exchange losses	626	-
Loss on mothballing of operation	-	258
Other	383	192
Total non-operating expenses	1,419	858
Ordinary profit	6,766	8,447
Extraordinary income
Gain on sale of non-current assets	30	10
Total extraordinary income	30	10
Extraordinary losses
Loss on sale of non-current assets	42	5
Loss on retirement of non-current assets	201	276
Impairment losses	-	701
Loss on valuation of investment securities	16	-
Total extraordinary losses	260	983
Profit before income taxes	6,536	7,475
Income taxes - current	2,588	2,476
Income taxes - deferred	(113)	(335)
Total income taxes	2,474	2,140
Profit	4,061	5,334
Profit attributable to non-controlling interests	1,153	1,324
Profit attributable to owners of parent		2,907	4,010

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