Consolidated Financial Results
for the First Half of the Fiscal Year Ending March 31, 2022
(Japan GAAP)
November 1, 2021
Company name:

Nippon Light Metal Holdings Company, Ltd.

Stock exchange listing:First Section of Tokyo Stock Exchange

Code number:

5703

URL:

https://www.nikkeikinholdings.com/

Representative:

Ichiro OKAMOTO,

Contact:

Chizu ISHIKAWA,

Phone:+81-03-6810-7162

President & Chief Executive Officer
Public Relations and IR Director, Planning & Supervision
OfficeSubmission of quarterly financial results:

November 5, 2021

Expected date of dividends payment:

December 1, 2021

Preparation of supplementary materials for quarterlyYesfinancial results:

Yes (for institutional investors and analysts)

Holding of a briefing on quarterly financial results:(Amounts less than one million yen are rounded off)
1. Consolidated Financial Results for Six Months Ended September 30, 2021
(1) Consolidated Results of Operations (Accumulated Total)
Net sales(% figures show year-on-year change)
Profit attributable toOrdinary profit
owners of parent

Operating profit

Six months ended

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

September 30, 2021

236,04818.9

14,041

77.8

14,211

85.5

10,813129.1

September 30, 2020

198,499(14.3)

7,895(32.6)

7,660(33.2)

4,720(38.5)(Note) Comprehensive income:Six months ended
September 30, 2021

Six months ended September 30, 2021
Six months ended September 30, 2020

Net profit per share(basic)September 30, 2020

¥12,375 million / 110.6%¥5,875 million / (17.7%)

Net profit per share(diluted)
Yen

Yen

174.70

－

76.23

－

(Note) On October 1, 2020, the Company implemented a share consolidation in which ten shares of common stock wereconsolidated into one share. As a result, net profit per share is calculated on the assumption that this share consolidation
was carried out at the start of the previous consolidated fiscal year.

(2) Consolidated Financial Position
Total assets
As of September 30, 2021
As of March 31, 2021
(Reference) Shareholders’ equity:

Net assets

Equity ratio

Millions of yen

Millions of yen%

516,591

214,71338.4

506,955

207,104

37.6

As of September 30, 2021
As of March 31, 2021

1

¥198,280 million¥190,712 million

2. Dividends

Annual dividends per share
End of firstquarter

End of second
quarterYen

End of third
quarter

Yen

Fiscal year ended―
0.00
March 31, 2021
Fiscal year ending―
40.00
March 31, 2022
Fiscal year ending
March 31, 2022
(forecasts)(Note) Revisions to dividend forecasts published most recently:

Year-end

Total

Yen

Yen

Yen

―

65.00

65.00

―

45.00

85.00

None

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022
(April 1, 2021–March 31, 2022)(% figures show year-on-year change)
Profit attributableNet
Net sales
Operating profit
Ordinary profit
to owners of
profit per
parentshare
Millionsof yen%Millionsof yen%Millionsof yenFiscal year ending
470,000
8.7
27,00011.6
27,000March 31, 2022
(Note) Revisions to Forecast of Financial Results published most recently:

2%

Millionsof yen

%

Yen

12.4

18,000434.8

290.82None

*Notes(1) Change in significant subsidiaries during the period(changes in specified subsidiaries affecting the scope of consolidation): None
Newly added: ― (Company name: ― )Excluded: ― (Company name: ― )(2) Application of particular accounts procedures to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards: Yes(ii) Changes in accounting policies other than item (i) above: None(iii) Changes in accounting estimates: None(iv) Restatement: None
For details, please refer to “2. Notes on summary information (special notes) (3) Changes in accounting policies,changes in accounting estimates, and restatements” on p. 3 of the attached documents.
(4) Number of shares outstanding (common stock)(i) Number of shares outstanding at end of period (including treasury stock)
As of September 30, 2021
61,993,750 shares
As of March 31, 2021
61,993,750 shares(ii) Number of treasury stock at end of period
As of September 30, 2021
93,615 shares
As of March 31, 2021
105,121 shares(iii) Average number of shares outstanding during the term
For the six months ended September 30, 2021
61,892,936 shares
For the six months ended September 30, 2020
61,921,113 shares(Note) On October 1, 2020, the Company implemented a share consolidation in which ten shares of common stock
were consolidated into one share. As a result, the number of shares outstanding (common stock) is calculatedon the assumption that this share consolidation was carried out at the start of the previous consolidated fiscal
year.
* Quarterly financial results are not subject to auditing by a certified public accountant or an audit firm.
* Explanations concerning the appropriate use of financial forecasts and other special notes(Note of caution concerning forward-looking statements)
The forward-looking statements such as result forecasts included in this document are based on the information
available to the Company at the time of the announcement and on certain assumptions considered reasonable, and theCompany makes no representations as to their achievability. Actual results may differ materially from the forecast
depending on a range of factors. For the conditions on which the financial forecasts are based and notes of caution
concerning forward-looking statements, etc., please refer to “1. Qualitative Information on Quarterly Results (3)Explanation of forward-looking information, including consolidated earnings forecasts” on p. 3 of the attacheddocuments.

3

[Attached documents]
Index
1.

Qualitative Information on Quarterly Results ..................................................................................................1(1) Explanation of consolidated operating results position .................................................................................1(2) Explanation of consolidated financial position ..............................................................................................2(3) Explanation of forward-looking information, including consolidated earnings forecasts .............................3

2.

Matters Related to Summary Information (Notes)...........................................................................................3(1) Change in significant subsidiaries during the period .......................................................................................3(2) Application of particular account procedures to the preparation of quarterly consolidated financial statements...............................................................................................................................................................................3(3) Changes in accounting policies, changes in accounting estimates, and restatements ......................................3
3.

Quarterly Consolidated Financial Statements and Important Notes ................................................................4(1) Quarterly consolidated balance sheets .............................................................................................................4(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income ..........6
Quarterly consolidated statements of income (April 1, 2021 – September 30, 2021)...................................6
Quarterly consolidated statements of comprehensive income (April 1, 2021 – September 30, 2021) .........7(3) Consolidated Statements of Cash Flows ..........................................................................................................8(4) Notes regarding the quarterly consolidated financial statements .....................................................................9(Notes on premise of going concern) ............................................................................................................9(Notes on significant changes in the amount of shareholders’ equity)..........................................................9(Segment information, etc.) ..........................................................................................................................94

1.

Qualitative Information on Quarterly Results(1) Explanation of consolidated operating results position
In the first half of this consolidated fiscal year, in the global economy, economic activity that had stalled due to the
spread of COVID-19 recovered in China, followed by the US, Europe and other countries, in part due to the rolloutof vaccines. However, there are concerns about the impact that a semiconductor shortage, skyrocketing fuel prices,
and a prolonged dispute between the US and China, among other factors, could have on the future, and it is still
impossible to make predictions for the Japanese economy.
In this environment, in addition to a recovery in sales in the secondary alloy segment of the Aluminum Ingot andChemicals business and the Automobiles business, demand related to machinery and electronics was also solid. As aresult, net sales surpassed the previous year’s levels in all segments.
In the first half of the Group’s consolidated fiscal year, net sales rose by 37,549 million yen (18.9%), from 198,499
million yen in the same period of the previous fiscal year to 236,048 million yen. Operating profit rose 6,146 million
yen (77.8%), from 7,895 million yen in the previous fiscal year to 14,041 million yen. Ordinary profit rose 6,551
million yen (85.5%), from 7,660 million yen in the previous fiscal year to 14,211 million yen. Profit attributable toowners of parent increased by 6,093 million yen (129.1%), from 4,720 million yen in the previous fiscal year to
10,813 million yen, as a result partly of increase in ordinary profit as well as recognition of extraordinary income
arising from acquisition of additional shares in an equity-method affiliate owned by the Company’s subsidiary andwhich was made a consolidated subsidiary.
Recently, it was found that products that did not meet the standards provided in the Ministry Order on Certificationof Conformity with Japanese Industrial Standards for mineral and industrial products and their processing technology
were shipped with the JIS mark from some of the Group’s plants. In light of this, the Group was notified that JIS
certification had been revoked and use of the JIS mark had been temporarily suspended at some of the Group’s plants
by the JIS certification organization Japan Quality Assurance Organization. The Group will strive to prevent any
reoccurrence and to restore trust quickly. The monetary impact that this had on consolidated earnings for the first halfof the fiscal year is minimal.
An overview of each business segment is provided below.
<Aluminum ingot and chemicals>
In the aluminum chemical sector, sales of mainstay aluminum hydroxide and alumina-related products increased
thanks to a recovery in demand for products for automobiles, ceramic materials, and refractories. Sales were alsosolid for chemical products, especially flocculants and inorganic chlorides. Accordingly, net sales surpassed theprevious year’s levels. In terms of profitability, income rose over the previous year as well despite the impact ofhigher raw material prices.
In the ingot sector, net sales surpassed the previous year’s levels thanks to an upswing in sales volumes in the mainstay
field of secondary alloy for automobiles both in Japan and overseas. In terms of profitability, income also increased
over the previous year.
As a result of the above, in the first half of the consolidated fiscal year under review, net sales in the aluminum ingot
and chemicals segment rose by 21,254 million yen (54.7%), from 38,854 million yen in the previous fiscal year to60,108 million yen, and operating profit increased by 3,161 million yen (73.2%), from 4,321 million yen in theprevious fiscal year to 7,482 million yen.
<Aluminum sheet and extrusions>
In the sheet product sector, sales of thick plates for semiconductor and LCD manufacturing equipment exceeded theprevious year’s levels. In processed sheet products, demand for personal computers also remained strong.
Accordingly, net sales surpassed the previous year’s levels. In terms of profitability, income rose over the previous
year as well.
In the extruded product sector, net sales surpassed the previous year’s levels as sales of products for automobiles grewcompared with the previous year both in Japan and China. In terms of profitability, income also increased over theprevious year.
As a result of the above, in the first half of the consolidated fiscal year under review, net sales in the aluminum sheet
and extrusions segment increased by 13,157 million yen (29.3%), from 44,884 million yen in the previous fiscal year
to 58,041 million yen, and operating profit rose by 3,272 million yen (229.6%), from 1,425 million yen in the previous

5fiscal year to 4,697 million yen.
<Fabricated products and other>In the transport-related sector, sales in the truck bodies business fell short of the previous year’s levels due to a decline
in sales of completed cars to truck manufacturers as a result of a drop in chassis production attributable to an
insufficient supply of truck parts, including semiconductors. In terms of profitability, in addition to a drop in sales,
an increase in materials prices, such as a steep rise in the price of aluminum metal, also had an impact, resulting in a
decline in income compared with the previous year.
In the industrial parts business, sales of mainstay brake calipers in cast products and automotive air-conditioning
products in forgings remained strong, and net sales surpassed the previous year’s levels.
In the panel system division, demand for semiconductor factories and electronic parts factories in the clean room area
increased, but sales declined due to the impact of changes to construction periods, while in the refrigerator and freezer
area, large projects whose construction periods had been delayed, such as a project for a food processing factory, wereresumed one after the other, leading to an increase in sales. As a result, net sales in the division overall recovered tolevels on par with the previous year.
In the carbon products division, demand for carbon blocks for the steel industry recovered both in Japan and overseas,leading to net sales that surpassed the previous year’s levels.
As a result of the above, in the first half of the consolidated fiscal year under review, net sales in the fabricatedproducts and other segment increased by 1,047 million yen (1.4%), from 73,556 million yen in the previous fiscal
year to 74,603 million yen, but operating profit fell by 582 million yen (22.1%), from 2,637 million yen in the previous
fiscal year to 2,055 million yen.
<Aluminum foil, powder, and paste>
In the aluminum foil division, the sale of processed foil for healthcare and for circuits used with IC cards fortransportation declined, but sales of foil for the outer packaging of lithium-ion batteries and foil for positive-electrodematerial remained strong, primarily for automobiles. As a result, sales in the division overall surpassed the previous
year’s levels.
In the powder and paste division, in powder products, sales of aluminum nitride and electronic material aluminum
powder for radiation applications increased, and in paste products, sales for mainstay automobile paints increased
over the previous year. As a result, net sales in the division overall surpassed the previous year’s levels.
In the daily necessities division, sales of house-care products for consumers remained solid, but in products for
packaging, sales of aluminum foil and cases for restaurants remained low. As a result, net sales in the division overall
undercut the previous year’s levels.
As a result, net sales in the aluminum foil, powder, and paste business in the first half of the fiscal year rose 2,091
million yen (5.1%), from 41,205 million yen in the previous fiscal year to 43,296 million yen, and operating profit
rose 377 million yen (34.9%), from 1,079 million yen in the previous fiscal year to 1,456 million yen.

(2) Explanation of consolidated financial position(2)-1 Status of assets, liabilities, and net assets
At the end of the first half of the consolidated fiscal year under review, total assets increased 9,636 million yen
compared to the end of the previous consolidated fiscal year to 516,591 million yen due to an increase in merchandiseand finished goods and other factors. Liabilities rose 2,027 million yen compared to the end of the previous
consolidated fiscal year to 301,878 million yen as a result of an increase in short-term borrowings and other factors.
Total net assets rose 7,609 million yen compared to the end of the previous consolidated fiscal year to 214,713 million
yen due to an increase in retained earnings attributable to the posting of profit attributable to owners of parent. The
equity ratio rose from 37.6% at the end of the previous consolidated fiscal year to 38.4%.
(2)-2 Cash flow
Cash flows from operating activities
Net cash gained from operating activities in the first half of this consolidated fiscal year totaled 4,441 million yen.
This was because non-cash profit/loss items such as profit before income taxes and depreciation exceeded6expenditures for the payment of income taxes. The cash flow gained from operating activities was 19,743 million yen
lower than in the same period in the previous year, but this was primarily due to a major decrease in trade receivablesin the first half of the previous fiscal year, while they were almost unchanged in the first half of this consolidated
fiscal year.
Cash flows from investing activities
Net cash used in investing activities in the first half of this consolidated fiscal year amounted to 12,047 million yen.
This was primarily due to the purchase of property, plant and equipment. Net cash used in investing activities declined
by 662 million yen compared to the same period in the previous fiscal year, but this was primarily because of adecrease in expenditures for the purchase of property, plant and equipment.
Cash flows from financing activities
Net cash gained in financing activities in the first half of this consolidated fiscal year amounted to 591 million yen,primarily due to an increase in short-term borrowings. Net cash gained in financing activities was down 9,814 million
yen compared to the same period in the previous fiscal year, which was primarily due to a decrease in proceeds fromlong-term borrowings.
As a result, cash and cash equivalents on a consolidated basis fell 6,625 million yen (10.8%) compared to end of theprevious fiscal year, to 54,551 million yen.

(3) Explanation of forward-looking information, including consolidated earnings forecasts
In the first half of the consolidated fiscal year under review, the Group’s earnings increased over the previous year
due notably to a recovery in demand related to automobiles, which had stalled from the impact of the COVID-19
pandemic. However, we have left our consolidated earnings forecasts for the full year, announced in the release of
our financial results on May 14, 2021, unchanged because there are concerns that an increase in raw material prices
and fuel prices and a decline in automobile production due to an insufficient supply of semiconductors and other parts
would affect earnings, and we have been notified of the revocation of JIS certification and temporary suspension ofuse of the JIS mark at some of the Group’s factories, and this could affect earnings, depending on future progress.
(Note) Earnings forecasts are calculated based on information available at this point and certain assumptions deemed
reasonable, and actual earnings results could differ from forecasts for various reasons.
2.

Notes on summary information (special notes)(1) Change in significant subsidiaries during the periodNone(2) Application of accounting method specific to preparation of quarterly consolidated financial statement
None(3) Changes in accounting policies, changes in accounting estimates, and restatements
Changes in accounting policies(Application of accounting standard for revenue recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,
2020, hereinafter “Accounting Standard for Revenue Recognition”) and related implementation guidance from the
beginning of the first quarter of the current consolidated accounting period. Accordingly, revenue is recognized at apoint in time when control of promised goods or services is transferred to the customers, at the amount that is expected
to be received in exchange for the goods or services. The main changes resulting from this application are as follows.
Sale of products7With respect to a portion of domestic sale of products for which revenue was previously recognized at the time of
shipment, the accounting method has changed to recognize revenue at the time the product is accepted by thecustomer.
Construction contracts
For construction contracts, previously, the percentage of completion method was applied to construction contracts forwhich the outcome was deemed certain with respect to the progress portion, and the completed contract method wasapplied to other construction contracts. This has changed to revenue recognition over a certain period of time as
performance obligation is satisfied, except for construction contracts that are of small amount and very short period.
In estimating the rate of progress in fulfillment of performance obligation, actual cost incurred as a percentage of total
estimated cost is calculated (input method) where a reasonable measurement of the outcome of performance obligation
can be made. For construction contracts that are of small amount and very short period, revenue is recognized at apoint in time when performance obligations have been completely satisfied.
Agent transactions
For transactions in which the Company’s role is to serve as an agent in the sale of products to customers, previously,
the total amount of consideration received from customers was recognized as revenue. This has changed torecognizing revenue as the net amount calculated by deducting the amount paid to third parties from the total amountof consideration received.
The Accounting Standard for Revenue Recognition, etc. (hereinafter in this paragraph referred to as “New Accounting
Policy”) is applied from the balance at the beginning of the first quarter of the current consolidated accounting period,
pursuant to the transitional treatment stipulated in the proviso of paragraph 84 of the Accounting Standard for Revenue
Recognition, in accordance with which the cumulative effect assuming that the New Accounting Policy was applied
retrospectively prior to the beginning of the first quarter of the current consolidated accounting period was added toor deducted from the balance of retained earnings at the beginning of the first quarter of the current consolidated
accounting period. However, with respect to the contracts where nearly all of the revenue amounts had beenrecognized prior to the beginning of the first quarter of the current consolidated accounting period based on theaccounting treatment previously used, the accounting method prescribed in paragraph 86 of the Accounting Standard
for Revenue Recognition was applied and no retrospective application of the New Accounting Policy was conducted.
In addition, by applying the method stipulated in item (1) of the supplementary provision of paragraph 86 of the
Accounting Standard for Revenue Recognition, for any modifications made to contracts before the beginning of thefirst quarter of the current consolidated accounting period, accounting treatment was conducted based on the contract
terms after reflecting all the modifications in the contracts, and the cumulative effect was added to or deducted fromthe balance of retained earnings at the beginning of the first quarter of the current consolidated accounting period.
The impact of the foregoing on net sales, operating profit, ordinary profit and profit before income taxes for the
consolidated six months ended September 30, 2021, was insignificant. The beginning balance of retained earnings
increased by 51 million yen.
Due to application of the Accounting Standard for Revenue Recognition, etc., “Notes and accounts receivable –trade,” which were included in “Current assets” in the consolidated balance sheet for the previous fiscal year, areincluded in “Notes and accounts receivable – trade and contract assets” from the first quarter of the current
consolidated accounting period. In accordance with the transitional treatment stipulated in Article 89-2 of the
Accounting Standard for Revenue Recognition, figures for the previous consolidated accounting period have not been
restated using the new presentation method.
(Application of accounting standard, etc. relating to fair value measurement)
The Company applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019,
hereinafter “Accounting Standard for Fair Value Measurement”) and related implementation guidance from the
beginning of the first quarter of the current consolidated accounting period. Accordingly, pursuant to the transitional
measures prescribed in paragraph 19 of the Accounting Standard for Fair Value Measurement and in paragraph 44-2of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the new accounting
policy as set forth in the Accounting Standard for Fair Value Measurement, etc., will be applied prospectively. Thereis no impact of this application on the quarterly consolidated financial statements.

8(4) Notes regarding the quarterly consolidated financial statements(Notes on premise of going concern)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)
Not applicable(Segment information, etc.)
I. First Half of the Fiscal Year Ended March 31, 2021 (April 1, 2020, to September 30, 2020)
1. Information on net sales and profit (loss) by reporting segment
Energy and Industrial Plants
Aluminum Aluminum Fabricated Aluminum
ingot andsheet and products and foil, powder,chemicals extrusions
otherand paste

Total(Millions of yen)
Quarterly
Adjust- consolidated
ments*1
profit/loss
posted*2

Net sales
Net sales to external－
38,85444,88473,556
41,205
198,499
198,499
customers
Intersegment sales－
13,693
10,5575,617
199
30,066(30,066)or transfers
Total
52,54755,441
79,173
41,404
228,565(30,066)
198,499
Segment profit (loss)
4,321
1,425
2,637
1,079
9,462
(1,567)
7,895
Notes:*1 The 1,567 million yen negative adjustment to segment income represents corporate expenses and mainlycomprises expenses related to General Affairs, HR, Accounting, and other head office administration
departments of the Company and Nippon Light Metal Company, Ltd.
*2 Segment profit is adjusted with operating profit on the quarterly consolidated statements of income.
2. Information related to impairment loss of noncurrent assets and goodwill by reporting segment:
Not applicable
II. First Half of the Fiscal Year Ending March 31, 2022 (April 1, 2021, to September 30, 2021)
1. Information on net sales and profit (loss) by reporting segment
Energy and Industrial Plants
Aluminum Aluminum Fabricated Aluminum
ingot andsheet and products and foil, powder,chemicals extrusions
otherand paste

Total(Millions of yen)
Quarterly
Adjust- consolidated
ments*1
profit/loss
posted*2

Net sales
Net sales to external－
60,10858,041
74,60343,296
236,048
236,048
customers
Intersegment sales－
22,197
11,6805,923
251
40,051(40,051)
or transfers
Total
82,30569,72180,52643,547
276,099(40,051)
236,048
Segment profit (loss)
7,482
4,697
2,055
1,456
15,690(1,649)14,041
Notes:*1 The 1,649 million yen negative adjustment to segment income represents corporate expenses and mainlycomprises expenses related to General Affairs, HR, Accounting, and other head office administration
departments of the Company and Nippon Light Metal Company, Ltd.
*2 Segment profit is adjusted with operating profit on the quarterly consolidated statements of income.
2. Information related to impairment loss of noncurrent assets and goodwill by reporting segment:9

(Significant change in the amount of goodwill)In the “aluminum foil, powder, and paste” segment, goodwill increased by 2,960 million yen as a result ofadditional acquisition, on August 5, 2021, of 17.6% of the outstanding shares of Svam Toyal Packaging Industries
Private Limited by Toyo Aluminium K.K., a Group subsidiary, and its consolidation as a Group company. Notethat the amount of goodwill is provisional because allocation of acquisition cost was not yet completed as of theend of the first half of the consolidated fiscal year under review.

103. Quarterly Consolidated Financial Statements and Important Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31,
2021

As of Sept. 30,
2021

61,229133,773‐
27,394
18,424
19,776
10,570(385)
270,781

54,604‐
134,384
32,587
21,945
21,624
13,776(303)
278,617

59,11949,507
6,234
54,6909,555
179,105

60,691
51,6536,140
54,6295,539
178,652

1,111
5,962
7,073

3,849
6,152
10,00150,541(545)
49,996236,174
506,955

49,898(577)
49,321
237,974
516,591

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Notes and accounts receivable – trade and contract assets
Merchandise and finished goods
Work in progress
Raw material and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery and equipment, net
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other intangible assets
Total intangible assets
Investments and other assets
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

11

(Millions of yen)
As of March 31,
2021

As of Sept. 30,
2021

65,81562,6683,327
34,306
166,116

66,64773,8482,472
30,202
173,169664
82,897
19,92924,634
5,611
133,735
299,851

672
78,44920,15322,052
7,383
128,709
301,878

46,52518,992
119,377(131)
184,763

46,525
19,125
126,217(121)
191,746

3,642
24
145
2,665
(527)
5,949
16,392
207,104
506,955

3,739
65
145
3,098
(513)
6,534
16,433214,713516,591

Liabilities

Current liabilities
Notes and accounts payable – trade
Short-term borrowings
Income taxes payable
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Retirement benefit liability
Provision for environmental measures
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedge
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefits plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

12(2) Quarterly Consolidated Statements of Income andConsolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income(April 1, 2021 – September 30, 2021)(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Share of profit of entities accounted for using equity method
Other
Total non-operating profit
Non-operating expenses
Interest expense
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on step acquisitions
Total extraordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

13

Six months
ended
Sept. 30, 2020

Six months
ended
Sept. 30, 2021

198,499
158,755
39,744
31,8497,895

236,048
188,201
47,84733,806
14,041

263
1,689
1,952

866
1,379
2,245

548
1,639
2,187
7,660

513
1,562
2,075
14,211

‐
‐
7,660
2,270
194
2,464
5,196
476
4,720

1,526
1,526
15,737
2,914
1,170
4,084
11,653840
10,813

Quarterly Consolidated Statements of Comprehensive Income(April 1, 2021 – September 30, 2021)(Millions of yen)Six months
ended
Sept. 30, 2020

Six months
ended
Sept. 30, 2021

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities accounted forusing equity method

5,196

11,653

620
124
50
122

81
43
306
17

(237)

275

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

679
5,875
5,394
481

722
12,375
11,398977

14

(3) Consolidated Statements of Cash Flows(Millions of yen)Six months
ended
Sept. 30, 2020

Six months
ended
Sept. 30, 2021

7,660
9,268
222
‐
37
310
(963)
(220)
547
(263)
16,206
1,403(5,602)(1,492)
27,113300(548)(2,681)
24,184

15,737
9,792
222(1,526)(62)
258(2,582)
(196)
513
(866)
1,994
(9,446)(1,502)(3,323)
9,013
338
(521)
(4,389)4,441

Purchase of property, plant and equipment
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Other(12,575)‐(134)(12,709)(10,144)(1,149)(754)(12,047)

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change in scope of consolidation
Other

2,091
19,092(6,364)(3,113)
(702)
‐
(599)
10,405(127)
21,75336,29658,0497,442
2,969(3,914)(4,031)
(592)
(668)
(615)
591
390
(6,625)61,17654,551

Cash flows from operating activities

Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on step acquisitions
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for environmental measures
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other

SubtotalInterest and dividends received
Interest paid
Income taxes paid

Net cash provided by operating activities
Cash flows from investing activities

Net cash used in investing activities
Cash flows from financing activities

Net cash provided by financing activities

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year15