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 September 30, 2021
(Based on Japanese GAAP)
November 10, 2021
Company name:
YAMAZEN CORPORATION
Stock exchange listing: Tokyo
Stock code:
Representative:

8051
URL
President, CEO

https://www.yamazen.co.jp/Yuji NAGAO

Inquiries:
Manager, IR & PR Dept.
Scheduled date to file Quarterly Securities Report:

Hayato HIRATA
November 11, 2021

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

December 10, 2021
Yes

Holding of quarterly financial results meeting:

Yes

TEL

06-6534-3003(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)(1) Consolidated operating results (cumulative)

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

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%
238,552
–
7,487
–
7,464
–
5,613
–
204,366 (15.9)
4,389 (30.2)
4,375 (29.5)
2,877 (28.7)
Earnings per share

Diluted earnings per share

Yen
61.81
30.49

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

Yen
57.57
–(2) Consolidated financial position
Total assets
As of September 30, 2021As of March 31, 2021

Net assets

Millions of yen
259,583
245,937

Equity ratio

Millions of yen
105,784
107,630

Net assets per share%
40.6
43.6

Yen
1,184.83
1,135.52

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
10.00
10.00

Yen–

Yen
10.00

Yen
20.00

–

15.00

25.00

Year ending March 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
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
490,000–
13,000–13,000–9,000–
100.111

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(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:

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:
Changes in accounting policies due to other reasons:

Yes
Yes

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 September 30, 2021

95,305,435 shares As of March 31, 2021

95,305,435 shares

Number of treasury shares at the end of the period
As of September 30, 2021

6,461,825 shares As of March 31, 2021

937,995 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

90,813,376 shares Six months ended September 30, 2020

294,367,467 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of September 30, 2021

AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade

63,73486,60766,55981,041

Electronically recorded monetary claims - operating
Securities

11,25912,00014,807
12,000

Merchandise and finished goods
Other

25,425
3,837

34,7396,220

Allowance for doubtful accounts
Total current assets

(388)

(346)

202,475

215,023

4,082

3,755

71
999

96
937

3,717
3,478

3,665
3,280

749

893

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, netOther, net

13,098

12,629Intangible assets

Total property, plant and equipment

8,449

10,034

Investments and other assets
Investment securities

18,052

17,620Distressed receivables
Retirement benefit asset

78
1,977

79
2,184

Deferred tax assets
Other326
1,639

355
1,748

Allowance for doubtful accounts

(161)

(139)

Total investments and other assets

21,913

21,84943,46244,512–

47

Total non-current assets
Deferred assets
Bond issuance costs
Total deferred assets
Total assets

3–

47

245,937

259,583

(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade60,61458,206

Electronically recorded obligations - operating
Short-term borrowings

51,531
29

54,33929

Lease obligations
Income taxes payable

423
2,436

426
2,377

Advances received
Provision for bonuses

–
2,780

9,053
3,074

Provision for voluntary recall of goods
Other

32
9,901

32
6,142

127,749

133,682–

10,045Long-term borrowings
Lease obligations

135
4,179

121
3,969

Deferred tax liabilities
Retirement benefit liability

4,140
252

3,986
263

Other1,849

1,731

Total current liabilities
Non-current liabilities
Convertible-bond-type bonds with share acquisition rights

Total non-current liabilities

10,558

20,117

138,307

153,799

Share capital
Capital surplus

7,909
7,561

7,909
7,561

Retained earnings
Treasury shares

82,887(957)

87,025(6,957)

Total shareholders' equity

97,40095,538

8,891

8,880

Deferred gains or losses on hedges
Foreign currency translation adjustment

87
1,551

11,503Remeasurements of defined benefit plans

(774)

(658)

Total accumulated other comprehensive income

9,755

9,726

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Non-controlling interests
Total net assets
Total liabilities and net assets

4474

519

107,630

105,784

245,937

259,583

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2020

September 30, 2021

Net sales
Cost of sales204,366
174,892

238,552
203,661

Gross profit

29,47334,891

Selling, general and administrative expenses

25,08427,403Operating profit

4,389

7,487

Interest income
Dividend income

684
123

32
117

Subsidy income
Other

113
45

65
50

Total non-operating income

967

266

Non-operating income

Non-operating expenses
Interest expenses

898

139

Foreign exchange losses
Other

66
16

129
21

Total non-operating expenses

981

290

4,375

7,464

Gain on sale of non-current assets
Gain on sale of investment securities

––

114
627

Total extraordinary income–741

Extraordinary losses
Loss on sale of non-current assets

0–0250–Ordinary profit
Extraordinary income

Loss on retirement of non-current assets
Loss on liquidation of subsidiaries

260

Profit before income taxes

Total extraordinary losses

4,349

8,205

Income taxes - current
Income taxes - deferred

1,460
(28)

2,516
37

Total income taxes

1,431

2,553

Profit

2,917

5,651

39

38

2,877

5,613

Profit attributable to non-controlling interests
Profit attributable to owners of parent5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2020

September 30, 2021

2,917

5,651

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2,696(65)

(10)
(85)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(42)
210(42)115

2,798(22)

5,715

5,629

5,687

5,584

28

44

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)Six months ended

Six months ended

September 30, 2020

September 30, 2021

Cash flows from operating activities
Profit before income taxes

4,349

8,205

Depreciation
Retirement benefit expenses

993
310

986
172

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in other provisions

(101)
(40)

(54)
285

Increase (decrease) in retirement benefit liability
Interest and dividend income

(169)
(807)

(193)
(149)

Interest expenses
Foreign exchange losses (gains)89831139(38)–(627)

00

Loss (gain) on sale of investment securities
Loss on retirement of property, plant and equipment andintangible assets
Loss (gain) on sale of property, plant and equipment andintangible assets
Decrease (increase) in trade receivables

0(114)

10,867

3,226

Decrease (increase) in inventories
Increase (decrease) in trade payables(808)(12,690)(9,223)444

Other, net

(276)

772

Subtotal

2,556

3,830

Income taxes paid

(656)

(2,496)

Net cash provided by (used in) operating activities

1,900

1,334Cash flows from investing activities
Payments into time deposits

(32)

(2)

171
(1,000)44(1,000)

Proceeds from redemption of securities
Purchase of investment securities

–(22)

1,000
(19)

Proceeds from sale of investment securities
Loan advances

–
(2)

1,110
(3)

Proceeds from collection of loans receivable
Payments of other investments

10(25)

8(256)

Collection of other investments
Purchase of property, plant and equipment and intangible

31

15(2,700)(2,427)0432

805

152(2,764)(943)

Proceeds from withdrawal of time deposits
Purchase of securities

assetsProceeds from sale of property, plant and equipment andintangible assets
Interest and dividends received
Net cash provided by (used in) investing activities

7

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of lease obligations
Repayments of long-term borrowings
Proceeds from issuance of convertible bonds with shareacquisition rights
Dividends paid
Interest paid
Purchase of treasury shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Six months ended

Six months ended

September 30, 2020

September 30, 2021
(173)

–

(207)
(14)

(212)
(14)

–

9,997

(1,323)
(897)

(947)
(138)

(0)
(187)

(6,006)(223)(2,804)

2,454

(3)

21

Net increase (decrease) in cash and cash equivalents(3,671)

2,866

Cash and cash equivalents at beginning of period

68,38574,478573–

65,287

77,345

Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation
Cash and cash equivalents at end of period8