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 Three Months Ended June 30, 2019
(Based on Japanese GAAP)
July 30, 2019
Company name:
Hodogaya Chemical Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

4112
President

URL

https://www.hodogaya.co.jp/Yuto Matsumoto

Inquiries:

Director, Senior Managing Executive Officer& General Manager, Corporate Planning
Eiichi Sunada

Department
Scheduled date to file Quarterly Securities Report:

August 8, 2019

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–Yes

Holding of quarterly financial results meeting:

NoTEL

03-5299-8019(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2019 (from April 1, 2019 to June 30, 2019)(1) Consolidated operating results (cumulative)

Three months ended June 30, 2019
Three months ended June 30, 2018

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
8,497(0.7)
472 (23.2)
486 (39.1)
304 (43.8)
8,553 (12.0)615 (52.8)
798 (40.4)
542 (29.8)
Earnings per share

Diluted earnings per share

Yen
38.56
68.67

Three months ended June 30, 2019
Three months ended June 30, 2018

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2019
As of March 31, 2019Net assets

Millions of yen
55,38957,140Equity ratio

Millions of yen
36,35636,860

%
60.7
59.5

2. Cash dividends
Annual dividends per share

Year ended March 31, 2019Year ending March 31, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
25.00

Yen–

Yen
25.00

Yen
50.00

25.00

–

25.00

50.00

Year ending March 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
38,0001.2
2,300 (24.1)
2,300 (25.9)
1,400 (25.7)
177.181

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes(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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 2019

8,413,726 shares As of March 31, 2019

8,413,726 shares

510,043 shares As of March 31, 2019511,715 shares

Number of treasury shares at the end of the period
As of June 30, 2019

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2019

7,902,845 shares Three months ended June 30, 2018

2

7,901,287 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of June 30, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

7,559
12,438

6,651
11,314Merchandise and finished goods
Work in process

4,246
523

4,749
442

Raw materials and supplies
Other

2,023
570

2,008
621

Allowance for doubtful accounts
Total current assets

(18)

(15)

27,34425,774Non-current assets
Property, plant and equipment
Buildings and structures, net

5,820

5,635

Land
Other, net

11,975
2,982

11,972
3,514

Total property, plant and equipment

20,77821,122

151

144

Total intangible assets

151

144

Investments and other assets
Investment securities

7,331

6,843

Long-term loans receivable
Deferred tax assets

266
338

263
331

Retirement benefit asset
Other400
726

417
690

Allowance for doubtful accounts

(197)

(197)

Intangible assets
Other

Total investments and other assets
Total non-current assets
Total assets

38,865

8,348

29,79529,61557,14055,389(Millions of yen)
As of March 31, 2019

As of June 30, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade

5,564

4,678

Short-term borrowings
Income taxes payable

3,514
410

3,425
193

Provisions
Other490
1,783

258
2,391

Total current liabilities

11,763

10,947

Non-current liabilities
Long-term borrowings

5,089

4,808

1,458
1,228

1,306
1,228

Provisions
Retirement benefit liability

82
85

82
88

Asset retirement obligations
Other80
492

80
490

Total non-current liabilities

8,517

8,086

20,28019,033

Shareholders' equity
Share capital

11,196

11,196

Capital surplus
Retained earnings

8,716
9,933

8,715
10,040Treasury shares(1,716)(1,710)Total shareholders' equity

28,12928,241

2,097
2,783

1,759
2,783

718
247

570
240

5,846

5,353

Deferred tax liabilities
Deferred tax liabilities for land revaluation

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests

2,883

2,760

Total net assets

36,86036,35657,14055,389Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months endedThree months ended

June 30, 2018

June 30, 2019

Net sales
Cost of sales

8,553
5,575

8,497
5,663

Gross profit

2,978

2,833

Selling, general and administrative expenses

2,362

2,361615

472

Interest income
Foreign exchange gains

251

3–

Dividend income
Rental income from non-current assets

107
1499
15

Miscellaneous income

4963

Total non-operating income

226

182

Interest expenses
Foreign exchange losses

16–

16117

Environmental maintenance expenses
Miscellaneous loss

21
41715

Total non-operating expenses

42167

7984864–525

Operating profitNon-operating income

Non-operating expenses

Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities

431

Profit before income taxes

Total extraordinary losses

794

455

Income taxes

125

72

Profit669

383

Profit attributable to non-controlling interests

126

78

Profit attributable to owners of parent

542

304

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Three months ended

Three months ended

June 30, 2018

June 30, 2019
669

383

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(234)
(48)

(338)
(258)

Remeasurements of defined benefit plans, net of tax

(34)

(6)

Total other comprehensive income

(317)

(603)

Comprehensive income

351

(219)

Comprehensive income attributable toComprehensive income attributable to owners of parent

272

(188)

78

(30)

Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Three months ended

Three months ended

June 30, 2018

June 30, 2019
794

455

Depreciation
Amortization of goodwill

329
2340
–

Increase (decrease) in provision
Increase (decrease) in retirement benefit liability

(235)
(25)

(233)
(21)

Interest and dividend income
Interest expenses(110)
16(102)16

Foreign exchange losses (gains)
Loss on retirement of property, plant and equipment

(24)
457
5

Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables

–
1,296

25
1,091

Decrease (increase) in inventories
Increase (decrease) in trade payables

(501)
(602)

(458)
(866)Increase/decrease in other assets/liabilities
Increase (decrease) in accrued consumption taxes(308)
135(149)
39

Other, net

1442

Subtotal

786

242Interest and dividends received

110

100

Interest paid
Income taxes paid

(11)
(230)

(15)
(392)

Net cash provided by (used in) operating activities

655

(65)

(19)

(19)

19

19

(512)

(326)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment and intangible
assetsPayments for retirement of property, plant and equipment–(1)

Proceeds from sales of property, plant and equipment andintangible assets

3–

Purchase of investment securities
Proceeds from redemption of investment securities

(0)
30(0)
–

Loan advances
Collection of loans receivable

(10)
4(7)
6

Payments of guarantee deposits
Proceeds from refund of guarantee deposits

(2)
1(1)
14

Other, net(4)0(489)(314)

Net cash provided by (used in) investing activities

7

(Millions of yen)

Cash flows from financing activities
Repayments of long-term borrowings

Three months ended

Three months ended

June 30, 2018

June 30, 2019
(335)

(369)

Dividends paid
Dividends paid to non-controlling interests

(0)
(9)

(0)
(38)

Proceeds from sales of treasury shares
Purchase of treasury shares

0
(1)

–(0)

Repayments of lease obligations

(7)

(6)

Net cash provided by (used in) financing activities

(352)

(414)

Effect of exchange rate change on cash and cash equivalents

20(108)Net increase (decrease) in cash and cash equivalents

(166)

(903)

Cash and cash equivalents at beginning of period

6,583

7,442

Cash and cash equivalents at end of period

6,416

6,539

8