Hosokawa Micron : Financial Statement (3rdQ FY2023)

August 10, 2023

Quarterly Financial Results for the Fiscal Year Ending September 30, 2023 (J-GAAP)

(3rd Quarter / October 1, 2022 - June 30, 2023)

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, 2023
				(Figures are rounded down to the nearest million yen)
1. Quarterly Consolidated Financial Results (October 1, 2022 to June 30, 2023)
(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. 2023	56,287		18.1	4,953	27.1	5,192	28.6	3,847	23.2
3rd quarter ended June. 2022	47,676		9.5	3,898	(9.8)	4,038	(10.6)	3,122	(1.8)

(Reference) Comprehensive Income (million Yen)	3rd quarter ended June.2023: 7,245	3rd quarter ended June.2022: 7,178
	Earnings per share	Diluted earnings per
	share
		Yen	Yen
3rd quarter ended June. 2023	243.69	243.00
3rd quarter ended June. 2022	192.54	192.01

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of June. 30, 2023		93,478		56,247	60.1
As of Sept. 30, 2022		86,046		53,758	62.4
(Reference) Shareholders' Equity (million Yen)	June. 2023: 56,163	Sept. 2022: 53,674

2. Dividends

				Dividends per share
		1st Quarter	2nd Quarter		3rd Quarter		Year-end	Annual
		Yen	Yen		Yen		Yen	Yen
Year ended Sept. 2022 (actual)	－	35.00		－		40.00	75.00
Year ended Sept. 2023	(actual)	－	37.50		－
Year ended Sept. 2023	(forecast)						37.50	75.00

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

3. Consolidated Forecasts for the Fiscal Year Ending September 30, 2023 (October 1, 2022 - September 30, 2023)

(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	70,000		4.6	6,500	17.9	6,500	12.6	4,500	12.3	277.49

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

Note 2: The Company cancelled 1,500,000 treasury shares on May 31, 2023 based on the resolution at the Board of Directors meeting held on March 9, 2023. The impact of cancellation of its treasury shares on earnings per share is not taken into account in the consolidated forecasts for the fiscal year ending September 30, 2023.

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 1: U.S. GAAP ASU2016-02 (Lease) has been applied to consolidated companies applying U.S. GAAP from the beginning of the current fiscal year.

Note 2: ASBJ Guidance No. 31 (Implementation Guidance on 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. 2023:	15,730,538 shares	Sept. 2022:	17,230,538 shares
2) Number of treasury stock at the end of the period
June. 2023:	716,436 shares	Sept. 2022:	1,010,404 shares
3) Average number of shares in the fiscal year
June. 2023:	15,789,285 shares	June. 2022:	16,215,866 shares

• 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, 2022	As of June 30, 2023
Assets
Current Assets
Cash and deposits	25,617	25,946
Notes and accounts receivable-trade, and contract	17,043	19,689
assets
Electronically recorded monetary claims -	1,207	775
operating
Securities	1,999	－
Finished goods	3,227	3,029
Work in process	3,954	5,505
Raw materials and supplies	3,861	4,784
Other	1,919	2,843
Allowance for doubtful accounts	(335)	(342)
Total Current Assets	58,495	62,230
Non-Current Assets
Property, plant and equipment
Buildings and structures	23,346	25,058
Machinery, equipment and vehicles	14,492	15,898
Land	6,156	6,878
Construction in progress	189	1,392
Other	3,010	3,738
Accumulated depreciation and	(23,164)	(25,832)
impairment loss
Total property, plant and equipment	24,031	27,133
Intangible assets
Goodwill	158	156
Other	840	1,000
Total intangible assets	998	1,157
Investments and other assets
Investment securities	1,562	2,079
Deferred tax assets	844	750
Other	118	126
Allowance for doubtful accounts	(5)	－
Total investments and other assets	2,520	2,957
Total Non-Current Assets	27,550	31,248
Total Assets	86,046	93,478

			(Millions of Yen)
		As of September 30, 2022	As of June 30, 2023
Liabilities
Current Liabilities
Notes and accounts payable-trade	7,824	8,352
Electronically recorded obligations - operating	1,350	2,327
Current portion of long-term loans payable	517	145
Accrued expenses	3,649	4,158
Income taxes payable	470	771
Contract liabilities	9,311	11,144
Provision for bonuses	533	333
Provision for directors' bonuses	83	45
Provision for product warranties	932	988
Provision for share awards	339	21
Other	2,222	2,101
Total Current Liabilities	27,235	30,390
Non-Current Liabilities
Long-term loans payable	792	1,656
Provision for share awards	11	11
Net defined benefit liability	2,866	2,992
Deferred tax liabilities	1,239	1,505
Other	142	676
Total Non-Current Liabilities	5,051	6,841
Total Liabilities	32,287	37,231
Net Assets
Shareholders' Equity
Capital stock	14,496	14,496
Capital surplus	5,209	3,206
Retained earnings	35,320	35,934
Treasury stock	(2,402)	(1,922)
Total Shareholders' Equity	52,624	51,715
Accumulated other comprehensive income
Valuation difference on available-for-sale	195	513
securities
Deferred gains or losses on hedges	(66)	13
Foreign currency translation adjustment	1,062	4,057
Remeasurements of defined benefit plans	(140)	(136)
Total accumulated other comprehensive
1,050	4,447
income
Subscription rights to shares	83	83
Total Net Assets	53,758	56,247
Total Liabilities and Net Assets	86,046	93,478

(2) Consolidated Statements of Income

			(Millions of Yen)
		Oct. 1, 2021 - June. 30, 2022	Oct. 1, 2022 - June. 30, 2023
Net sales	47,676	56,287
Cost of sales	31,431	37,150
Gross profit	16,245	19,136
Selling, general and administrative expenses	12,346	14,183
Operating profit	3,898	4,953
Non-operating income
Interest income	44	170
Dividend income	27	32
Equity in earnings of affiliates	54	42
Foreign exchange gains	23	－
Penalty income	－	31
Other	45	78
Total non-operating Income	195	355
Non-operating expenses
Interest expenses	23	7
Foreign exchange losses	－	93
Loss on valuation of derivatives	21	5
Other	10	9
Total non-operating Expenses	54	116
Ordinary profit	4,038	5,192
Extraordinary income
Gain on sales of non-current assets	45	1
Total extraordinary income	45	1
Extraordinary losses
Loss on sales and retirement of non-current assets	13	1
Total extraordinary loss	13	1
Income before income taxes	4,070	5,192
Income taxes	948	1,344
Net income	3,122	3,847
Profit attributable to owners of parent	3,122	3,847