Harada Industry : Financial Report

Financial Report

Fiscal Year Ended March 31, 2023

Stock Code 6904

HARADA INDUSTRY CO., LTD.

26-2, Minamiohi 6-chome,Shinagawa-ku, Tokyo 140-0013, Japan

https://www.harada.com

HARADA INDUSTRY CO., LTD.

Table of Contents
Segment Information	2
Capital Increase	3
Shares	3
Directors and Corporate Auditors	3
Consolidated Balance Sheets	4
Consolidated Statements of Income	6
Consolidated Statements of Comprehensive Income	7
Consolidated Statements of Changes in Net Assets	8
Consolidated Statements of Cash Flows	10
Non-consolidated Balance Sheets	11
Non-consolidated Statements of Income	13
Non-consolidated Statements of Changes in Net Assets	14

1

HARADA INDUSTRY CO., LTD.

Segment Ｉnformation

1. Reportable segments overview

The Group's reportable segments are components of the Company for which separate financial information is available and for which operating results are regularly reviewed by the Board of Directors and the Management Council to make decisions about resource allocations and assess segment performance. The Group mainly manufactures and sells automotive equipments. The Company takes charge of the domestic market, and overseas, following companies: HARADA Asia-Pacific Ltd., DALIAN HARADA INDUSTRY Co., Ltd., HARADA INDUSTRY OF AMERICA, INC., HARADA INDUSTRIES (EUROPE) LIMITED, and SHANGHAI HARADA NEW AUTOMOTIVE ANTENNA CO., LTD., mainly take charge of markets of each area as Asia, North and Central Americas, Europe, etc.

Following companies: DALIAN HARADA INDUSTRY Co., Ltd., HARADA INDUSTRIES (MEXICO), S.A. DE C.V., HARADA INDUSTRIES VIETNAM LIMITED, HARADA AUTOMOTIVE ANTENNA (PHILIPPINES), INC., and SHANGHAI HARADA NEW AUTOMOTIVE ANTENNA CO., LTD., take charge of products' production toward each market.

Each of the subsidiaries is managed independently and each regional business unit develops comprehensive strategies for dealing products and operating its business.

Therefore, the Group is composed of regional segments based on production and sales system, and has four reportable segments: Japan, Asia, North and Central Americas, and Europe.

1. Calculation method for sales, profit or loss, assets and other items by reportable segment Profit in the reportable segments is based on operating profit.
   Intersegment sales or transfers are based on market prices.
2. Information concerning the amount of sales, profit or loss, assets and other items by reportable segment (April 1, 2021 to March 31, 2022)

(Thousands of yen)

			Reportable segments				Consolidated
							Adjustment
							income statements
			North and Central				(Note 1)
	Japan	Asia		Europe	Total	(Note 2)
	Americas
Sales
Sales to external customers	12,919,183	8,362,338	9,726,216		4,803,753	35,811,490	－	35,811,490
Intersegment sales or transfers	1,906,595	14,997,293	188,634		1,474,945	18,567,469	(18,567,469)	－
Total sales	14,825,778	23,359,631	9,914,850		6,278,699	54,378,959	(18,567,469)	35,811,490
Segment profit	(400,396)	(172,182)	67,410		(624,163)	(1,129,332)	(34,015)	(1,163,347)
Segment assets	23,519,048	16,709,688	8,926,013		3,546,827	52,701,578	(16,758,704)	35,942,873
Others
Depreciation	68,343	764,200	268,141		19,479	1,120,165	－	1,120,165
Increase in property, plant and	2,539	427,806	257,787		3,356	691,490	－	691,490
equipment and intangible assets
Notes:

1. Adjustments are as follows:

1. Adjustment amount of (34,015) thousand yen for segment profit is eliminations between segment transaction.
2. Adjustment amount of (16,758,704) thousand yen for segment assets is eliminations between segment transaction.

1. Segment profit is adjusted on operating income on the consolidated statements of income.

(April 1, 2022 to March 31, 2023)

(Thousands of yen)

			Reportable segments				Consolidated
							Adjustment
							income statements
			North and Central				(Note 1)
	Japan	Asia		Europe	Total	(Note 2)
	Americas
Sales
Sales to external customers	15,230,405	9,069,189	11,940,040		5,865,778	42,105,413	－	42,105,413
Intersegment sales or transfers	1,819,477	17,159,416	482,373		1,241,546	20,702,814	(20,702,814)	－
Total sales	17,049,882	26,228,606	12,422,414		7,107,324	62,808,228	(20,702,814)	42,105,413
Segment profit	184,196	(715,279)	4,762		(201,678)	(727,999)	6,025	(721,973)
Segment assets	27,196,995	18,166,877	10,728,804		4,609,291	60,701,969	(20,570,236)	40,131,732
Others
Depreciation	63,502	867,502	393,503		20,726	1,345,233	－	1,345,233
Increase in property, plant and	73,043	518,676	704,959		907	1,297,587	－	1,297,587
equipment and intangible assets
Notes:

1. Adjustments are as follows:

1. Adjustment amount of 6,025 thousand yen for segment profit is eliminations between segment transaction.
2. Adjustment amount of (20,570,236) thousand yen for segment assets is eliminations between segment transaction.

1. Segment profit is adjusted on operating income on the consolidated statements of income.

2

HARADA INDUSTRY CO., LTD.

Capital Increase

	Shares outstanding	Capital stock	Capital reserves
	Increase or	Balance	Increase or	Balance	Increase or	Balance
Date	decrease	decrease	decrease
	(Shares)	(Thousands of yen)	(Thousands of yen)
As of July 28, 2006 (notice1)	1,000,000	10,869,000	408,150	2,015,100	408,150	1,855,900
As of August 25, 2006 (notice2)	10,000	10,879,000	4,081	2,019,181	4,081	1,859,981
As of October 1, 2006 (notice3)	10,879,000	21,758,000	－	2,019,181	－	1,859,981

(notice)
1.	Public offering of shares	Exercise price (yen)		873.00
		Issue price (yen)		816.30
		Amount credited to capital stock (yen)		408.15
		Advances on subscriptions (thousands of yen)	816,300
2.	Issued to third party	Exercise price (yen)		873.00
		Amount credited to capital stock (yen)		408.15
		Issued to	Daiwa Securities SMBC
3.	1 for 2 stock split.

Shares

Class of shares	Number of shares authorized
Common shares	70,000,000
Total	70,000,000
Class of shares	Common
Issued
As of March 31, 2023	21,758,000
As of June 29, 2023	21,758,000

Tokyo Stock Exchange

Stock exchange listings or registration

Prime Market

Directors and Corporate Auditors

Shoji Harada	Chairman and Representative Director
Yasuharu Miyake	President and Representative Director
Satoru Kamiyama	Executive Managing Director
Toru Sasaki	Director
Takashi Aoki	Director
Koji Kuwahara	Director
kensuke Inoue	Director
Takashi Matsubara	Corporate Auditor
Yoichi Hiyama	Corporate Auditor
Yukiko Endo	Corporate Auditor

3

HARADA INDUSTRY CO., LTD.

Consolidated Balance Sheets

（Thousands of yen）

As of March 31, 2022 As of March 31, 2023

Assets

Current assets
Cash and deposits	3,747,983	5,970,720
Notes and accounts receivable-trade, and contract assets	6,701,453	7,865,174
Merchandise and finished goods	7,662,972	7,465,703
Work in process	852,215	838,107
Raw materials and supplies	6,461,356	6,654,060
Other	999,855	964,018
Allowance for doubtful accounts	(47,577)	(49,079)
Total current assets	26,378,260	29,708,706
Non-current assets
Property, plant and equipment
Buildings and structures, net	1,580,466	1,610,944
Machinery, equipment and vehicles, net	1,459,712	1,635,912
Land	900,294	885,339
Other, net	2,389,307	2,750,028
Total property, plant and equipment	6,329,780	6,882,225
Intangible assets	165,825	146,263
Investments and other assets
Deferred tax assets	1,974,632	2,006,329
Retirement benefit asset	190,998	483,638
Other	912,542	914,823
Allowance for doubtful accounts	(9,166)	(10,253)
Total investments and other assets	3,069,007	3,394,537
Total non-current assets	9,564,613	10,423,026
Total assets	35,942,873	40,131,732

4