Hosokawa Micron : Financial Statement (3rdQ FY2022)

August 10, 2022

Quarterly Financial Results for the Fiscal Year Ending September 30, 2022 (J-GAAP)

(3rd Quarter / October 1, 2021 - June 30, 2022)

Company Name	Hosokawa Micron Corporation
Stock Exchange Listing	Tokyo Stock Exchange
Stock Code	6277	URL	https://www.hosokawamicron.co.jp
President	Kohei Hosokawa
Contact	Tetsuya Inoue, Executive Vice President, Administrator
Telephone	[phone]

Scheduled date of filing Quarterly Report		August 10, 2022
				(Figures are rounded down to the nearest million yen)
1. Quarterly Consolidated Financial Results (October 1, 2021 to June 30, 2022)
(1) Consolidated Results of Operation			(Percentages represent year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%
3rd quarter ended June. 2022	47,676		9.5	3,898	(9.8)	4,038	(10.6)	3,122	(1.8)
3rd quarter ended June. 2021	43,521		14.2	4,322	66.6	4,517	62.2	3,178	74.2

(Reference) Comprehensive Income (million Yen)	3rd quarter ended June.2022: 7,178	3rd quarter ended June.2021: 4,830
	Earnings per share	Diluted earnings per
	share
		Yen	Yen
3rd quarter ended June. 2022	192.54	192.01
3rd quarter ended June. 2021	196.18	195.54

Note: The Company carried out a two-for-one stock split of common stock on October 1, 2021. Earnings per share and diluted earnings per share are calculated based on the assumption that the stock split had been carried out at the beginning of the previous fiscal year.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of June. 30, 2022		85,241		51,927	60.8
As of Sept. 30, 2021		73,119		45,939	62.7
(Reference) Shareholders' Equity (million Yen)	June. 2022: 51,843	Sept. 2021: 45,844

2. Dividends

				Dividends per share
		1st Quarter	2nd Quarter		3rd Quarter		Year-end	Annual
		Yen	Yen		Yen		Yen	Yen
Year ended Sept. 2021	(actual)	－	55.00		－		80.00	135.00
Year ended Sept. 2022	(actual)	－	35.00		－
Year ended Sept. 2022	(forecast)						35.00	70.00

Note 1: Revisions of the forecast dividends since the latest announcement: No

Note 2: The Company carried out a two-for-one stock split of common stock on October 1, 2021. The actual amounts of dividends before the stock split are described for the fiscal year ended September 30, 2021.

3. Consolidated Forecasts for the Fiscal Year Ending September 30, 2022 (October 1, 2021 - September 30, 2022)

(Percentages represent year-on-year changes)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per
		owners of parent	share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full Year	64,000		5.3	5,600	(12.1)	5,600	(14.8)	4,200	(10.6)	259.15

Note: Revisions of the Consolidated forecast since the latest announcement: No

4. Others

1. Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
2. Adoption of simplified accounting treatment for quarterly closing: Yes
3. Changes in accounting treatment for quarterly consolidated financial statement:

1) Changes in accounting policies due to the revision of accounting standards: Yes

Note: ASBJ Statement No.30 (Accounting Standard for Fair Value Measurement) has been applied to consolidated companies in Japan from the beginning of the current fiscal year.

1. 1. Changes in accounting policies other than 1) above: None
   2. Changes in accounting estimates: None
   3. Retrospective restatement: None
2. Number of shares outstanding (common stock)
3. 1. Number of shares outstanding at the end of the period (incl. treasury stock)

June. 2022:	17,230,538 shares	Sept. 2021:	17,230,538 shares
2) Number of treasury stock at the end of the period
June. 2022:	1,010,384 shares	Sept. 2021:	1,023,490 shares
3) Average number of shares in the fiscal year
June. 2022:	16,215,866 shares	June. 2021:	16,200,257 shares

Note: The Company carried out a two-for-one stock split of common stock on October 1, 2021. 1), 2) and 3) are calculated based on the assumption that the stock split had been carried out at the beginning of the previous fiscal year.

• This quarterly consolidated financial statements is not subject to quarterly review procedures.
• Explanation regarding appropriate use of earnings forecasts and other special notes

Note: The forecasts above are based on currently available information at the time of announcement. Actual results may differ from these forecasts for a number of factors.

5. Consolidated Financial Statements

(1) Consolidated Balance Sheets

			(Millions of Yen)
		As of September 30, 2021	As of June 30, 2022
Assets
Current Assets
Cash and deposits	19,943	26,175
Notes and accounts receivable-trade	17,139	－
Notes and accounts receivable-trade, and contract	－	17,705
assets
Securities	－	500
Finished goods	2,575	2,935
Work in process	3,534	4,877
Raw materials and supplies	2,338	3,772
Other	1,834	2,546
Allowance for doubtful accounts	(176)	(315)
Total Current Assets	47,189	58,196
Non-Current Assets
Property, plant and equipment
Buildings and structures	21,648	23,044
Machinery, equipment and vehicles	12,763	14,063
Land	5,916	6,068
Construction in progress	126	386
Other	2,574	2,983
Accumulated depreciation and	(20,127)	(22,791)
impairment loss
Total property, plant and equipment	22,901	23,754
Intangible assets
Goodwill	172	164
Other	561	779
Total intangible assets	734	943
Investments and other assets
Investment securities	1,516	1,423
Deferred tax assets	683	813
Other	115	114
Allowance for doubtful accounts	(19)	(5)
Total investments and other assets	2,295	2,346
Total Non-Current Assets	25,930	27,044
Total Assets	73,119	85,241

			(Millions of Yen)
		As of September 30, 2021	As of June 30, 2022
Liabilities
Current Liabilities
Notes and accounts payable-trade	8,144	9,084
Current portion of long-term loans payable	144	531
Accrued expenses	3,142	3,684
Income taxes payable	396	223
Advances received	6,815	－
Contract liabilities	－	11,144
Provision for bonuses	591	281
Provision for directors' bonuses	63	46
Provision for product warranties	645	774
Other	1,618	2,100
Total Current Liabilities	21,562	27,871
Non-Current Liabilities
Long-term loans payable	1,310	811
Net defined benefit liability	3,407	3,589
Deferred tax liabilities	780	908
Other	119	132
Total Non-Current Liabilities	5,617	5,442
Total Liabilities	27,180	33,313
Net Assets
Shareholders' Equity
Capital stock	14,496	14,496
Capital surplus	5,121	5,127
Retained earnings	32,528	34,434
Treasury stock	(2,350)	(2,319)
Total Shareholders' Equity	49,796	51,738
Accumulated other comprehensive income
Valuation difference on available-for-sale	195	193
securities
Deferred gains or losses on hedges	(12)	(44)
Foreign currency translation adjustment	(3,526)	568
Remeasurements of defined benefit plans	(607)	(612)
Total accumulated other comprehensive
(3,951)	105
income
Subscription rights to shares	90	83
Non-controlling interests	4	－
Total Net Assets	45,939	51,927
Total Liabilities and Net Assets	73,119	85,241

(2) Consolidated Statements of Income

			(Millions of Yen)
		Oct. 1, 2020 - June. 30, 2021	Oct. 1, 2021 - June. 30, 2022
Net sales	43,521	47,676
Cost of sales	28,089	31,431
Gross profit	15,431	16,245
Selling, general and administrative expenses	11,109	12,346
Operating profit	4,322	3,898
Non-operating income
Interest income	39	44
Dividend income	21	27
Equity in earnings of affiliates	98	54
Foreign exchange gains	－	23
Gain on valuation of derivatives	27	－
Other	66	45
Total non-operating Income	254	195
Non-operating expenses
Interest expenses	23	23
Foreign exchange losses	16	－
Loss on valuation of derivatives	－	21
Other	18	10
Total non-operating Expenses	58	54
Ordinary profit	4,517	4,038
Extraordinary income
Gain on sales of non-current assets	4	45
Gain on sales of investment securities	15	－
Total extraordinary income	20	45
Extraordinary losses
Loss on sales and retirement of non-current assets	7	13
Loss on sales of investment securities	29	－
Total extraordinary loss	37	13
Income before income taxes	4,501	4,070
Income taxes	1,320	948
Net income	3,180	3,122
Profit attributable to non-controlling interests	2	－
Profit attributable to owners of parent	3,178	3,122