Hioki E E : (Delayed) Summary of Consolidated Financial Results for the Six Months Ended June 30, 2022

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 Six Months Ended June 30, 2022
		(Based on Japanese GAAP)
					July 15, 2022
Company name:	HIOKI E.E. CORPORATION
Stock exchange listing:	Tokyo
Stock code:	6866	URL https://www.hioki.co.jp/
Representative:	President		Takahiro Okazawa
	Director, Senior Managing Executive Officer,
Inquiries:	Chief Financial Officer (CFO) and Director	Yoshikazu Suyama	TEL [phone]
	of Administration Department
Scheduled date to file Quarterly Securities Report:	August 1, 2022
Scheduled date to commence dividend payments:	August 12, 2022
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022)

(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	%
Six months ended June 30, 2022	15,882		8.5		3,140	0.2		3,401			5.3		2,503	2.9
Six months ended June 30, 2021	14,639		37.1		3,133	97.0		3,231		94.7		2,432	96.5
	Earnings per share		Diluted earnings per share
			Yen					Yen
Six months ended June 30, 2022			183.40					-
Six months ended June 30, 2021			178.29					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%			Yen
As of June 30, 2022		36,342					31,108				85.6		2,278.62
As of December 31, 2021		36,391					29,454				80.9		2,158.34
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 December 31, 2021		-			65.00			-				100.00		165.00
Year ending December 31, 2022		-			80.00
Year ending December 31, 2022 (Forecast)									-				80.00		160.00

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 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	34,000	16.0	7,010	21.9	7,200	20.0	5,410	19.7	396.43

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2022 (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

No

(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, 2022	14,024,365	shares	As of December 31, 2021	14,024,365	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	371,956	shares	As of December 31, 2021	377,652	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2022	13,649,556	shares	Six months ended June 30, 2021	13,642,713	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	16,017,461	13,846,499
Notes and accounts receivable - trade	3,357,039	-
Notes and accounts receivable - trade, and contract assets	-	3,717,156
Merchandise and finished goods	1,022,058	1,610,892
Work in process	659,497	733,749
Raw materials and supplies	2,691,016	3,703,633
Other	316,939	505,604
Allowance for doubtful accounts	(5,203)	(6,836)
Total current assets	24,058,808	24,110,699
Non-current assets
Property, plant and equipment
Buildings and structures, net	7,245,351	7,157,457
Machinery, equipment and vehicles, net	292,140	389,975
Tools, furniture and fixtures, net	754,023	868,817
Land	1,998,862	1,998,862
Construction in progress	1,488	28,003
Total property, plant and equipment	10,291,868	10,443,116
Intangible assets
Software	356,643	332,741
Other	22,262	18,891
Total intangible assets	378,906	351,632
Investments and other assets	1,661,476	1,436,811
Total non-current assets	12,332,250	12,231,561
Total assets		36,391,059	36,342,260

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			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Liabilities
Current liabilities
Accounts payable - trade	835,185	1,066,211
Income taxes payable	1,156,614	550,009
Provision for bonuses	-	1,288,125
Provision for bonuses for directors (and other officers)	-	59,180
Other	3,697,975	1,071,210
Total current liabilities	5,689,776	4,034,736
Non-current liabilities
Deferred tax liabilities	6,826	5,562
Retirement benefit liability	725,626	661,949
Other	514,535	531,327
Total non-current liabilities	1,246,987	1,198,839
Total liabilities	6,936,764	5,233,576
Net assets
Shareholders' equity
Share capital	3,299,463	3,299,463
Capital surplus	3,968,885	3,993,207
Retained earnings	22,782,020	23,920,691
Treasury shares	(727,495)	(716,768)
Total shareholders' equity	29,322,874	30,496,594
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	148,034	173,982
Foreign currency translation adjustment	307,814	740,394
Remeasurements of defined benefit plans	(324,428)	(302,287)
Total accumulated other comprehensive income	131,420	612,089
Total net assets	29,454,295	31,108,684
Total liabilities and net assets		36,391,059	36,342,260

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		June 30, 2021	June 30, 2022
Net sales	14,639,794	15,882,354
Cost of sales	7,614,260	8,673,448
Gross profit	7,025,533	7,208,906
Selling, general and administrative expenses	3,892,001	4,068,114
Operating profit	3,133,531	3,140,791
Non-operating income
Interest income	2,378	3,006
Dividend income	11,846	12,692
Rental income from buildings	4,405	3,813
Foreign exchange gains	50,782	133,530
Subsidy income	6,769	509
Refund income	-	76,707
Other	25,449	34,491
Total non-operating income	101,631	264,750
Non-operating expenses
Interest expenses	3,956	3,711
Other	6	5
Total non-operating expenses	3,962	3,716
Ordinary profit	3,231,201	3,401,825
Extraordinary income
Gain on sale of non-current assets	3,546	1
Total extraordinary income	3,546	1
Extraordinary losses
Loss on retirement of non-current assets	1,174	55
Loss on valuation of membership	-	2,600
Total extraordinary losses	1,174	2,655
Profit before income taxes	3,233,573	3,399,172
Income taxes - current	798,686	644,195
Income taxes - deferred	2,538	251,635
Total income taxes	801,225	895,830
Profit	2,432,348	2,503,341
Profit attributable to owners of parent		2,432,348	2,503,341

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