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 Year Ended March 31, 2023
(Based on Japanese GAAP)May 10, 2023
Company name:

SAKAI HEAVY INDUSTRIES,LTD.

Stock exchange listing: Tokyo
Stock code:
6358
Representative:
Inquiries:

URL

https://www.sakainet.co.jp/

President and Representing Director
Executive Officer

Ichiro Sakai

General Manager Administration Division
Scheduled date of ordinary general meeting of shareholders:

Takao Yoshikawa

TEL03-3434-3401

June 29, 2023

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 29, 2023
June 30, 2023

Preparation of supplementary material on financial results:
Holding of financial results meeting:

YesYes(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Net salesYear ended March 31, 2023
Year ended March 31, 2022

Operating profit

Millions of yen
31,45926,599

%
18.3
23.0

Millions of yen
2,506
1,383

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%
%
%
–7.0
5.9
8.0
–
6.3
3.9
5.2

Yen
400.75336.87

Year ended March 31, 2023
Year ended March 31, 2022

%
81.2
97.3

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%2,327
65.4
1,694
18.7
1,407 113.6
1,427–(2) Consolidated financial position
Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
40,80437,858Millions of yen
25,29523,161

Cash flows fromoperating activities
Millions of yen
1,893
2,359

Cash flows frominvesting activities
Millions of yen(399)(263)

Net assets per share%
61.8
61.1

Yen
5,957.01
5,489.91(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(2,242)
7,416(1,227)7,926

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

60.00
80.00

––

105.00120.00165.00200.0069484749.0
49.9

3.1
3.5

–

90.00

–

125.00215.00149.7

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Net sales
Millions of yen
Six months ending
September 30, 2023
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

16,100

8.1

1,300

21.8

1,250

14.1

770(5.9)

182.1233,000

4.9

2,950

17.7

2,800

20.3

1,8308.0

432.82

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

4,392,117 shares As of March 31, 2022

4,366,117 shares

156,308 shares As of March 31, 2022

155,929 shares

Number of treasury shares at the end of the period
As of March 31, 2023
Average number of shares during the period
Year ended March 31, 2023

4,228,058 shares Year ended March 31, 2022

24,236,992 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

7,993,405
7,137,752

7,484,336
8,068,886

Electronically recorded monetary claims - operating
Merchandise and finished goods

1,400,265
2,751,053

1,395,360
3,406,701

Work in process
Raw materials and supplies

1,347,188
3,109,380

1,228,708
4,816,726

Other
Allowance for doubtful accounts

1,336,688(59)

1,039,755(97)

Total current assets

25,075,675

27,440,377

8,179,050(5,213,645)

8,662,423(5,575,278)

Buildings and structures, net2,965,404

3,087,145

Machinery, equipment and vehicles
Accumulated depreciation

3,785,378(3,123,370)

3,884,022(3,236,642)

662,008

647,380

3,010,196
644,530

3,238,498
467,324

Accumulated depreciation(417,142)(191,750)

Leased assets, net

227,387

275,573

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Land
Leased assets

Other
Accumulated depreciation
Other, net

1,519,689

1,541,577(1,399,524)(1,406,559)

120,164

135,0186,985,162

7,383,615

Intangible assets
Investments and other assets

480,763

307,527

Investment securities
Deferred tax assets

3,421,772
456,786

3,826,612
390,867

Other
Allowance for doubtful accounts

1,438,685(261)

1,455,915(258)

Total investments and other assets

5,316,982

5,673,136

12,782,908

13,364,280

37,858,583

40,804,658

Total property, plant and equipment

Total non-current assets
Total assets3

(Thousands of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Provision for product warranties

2,078,924

2,515,028

3,887,863
5,688,722

4,631,090
4,751,028

269,304
117,004

336,586
336,364

Other

1,488,501

1,807,735

Total current liabilities

13,530,319

14,377,834

Long-term borrowings
Lease liabilities

17,164
338,534

58,252309,248

Deferred tax liabilities
Retirement benefit liability

402,781
173,232

486,712
132,943

Non-current liabilities

Other

235,179

143,830

1,166,8921,130,986

14,697,211

15,508,820

Share capital
Capital surplus

3,258,349
6,504,292

3,295,841
6,541,784

Retained earnings
Treasury shares

11,728,758(403,884)

12,642,202(405,251)

Total shareholders' equity

21,087,515

22,074,576

1,564,136

1,837,502

465,857(3,964)

1,319,532
1,162

2,026,029

3,158,197

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustmentRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

447,826

63,064

23,161,371

25,295,837

37,858,583

40,804,658

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales

26,599,084

31,459,945

Cost of sales

20,191,853

23,294,752

Gross profit

6,407,231

8,165,192

Transportation costs
Salaries and bonuses

392,921
2,137,086

429,775
2,393,406

Technical research expenses
Other844,896
1,649,022

955,073
1,880,844

Total selling, general and administrative expenses

5,023,927

5,659,100

1,383,303

2,506,092

Interest income
Dividend income

9,570
109,070

5,465
126,140

Surrender value of insurance policies
Foreign exchange gains

24,20549,083––

Other

23,02733,647

Total non-operating income

214,957

165,252

Interest expenses
Foreign exchange losses

100,404–

197,275
54,394bank charge
Other87,2752,867

87,044
4,829

Selling, general and administrative expenses

Operating profit
Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets

190,546

343,544

1,407,714

2,327,800

2,166

1,911

Gain on sale of investment securities

61,380–Total extraordinary income

63,547

1,911

Loss on disposal of non-current assets
Loss on valuation of golf club membership

43400

178
–

Total extraordinary losses

443

178

Extraordinary losses

Profit before income taxes

1,470,818

2,329,533

Income taxes - current

427,645559,556

Income taxes - deferred(386,450)

70,06041,194

629,617

1,429,623

1,699,916

2,289

5,517

1,427,334

1,694,399

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

1,429,623

1,699,916

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(168,118)594,706

273,366
863,395

Remeasurements of defined benefit plans, net of tax

3,453

5,126

430,041

1,141,888

Comprehensive income

Total other comprehensive income

1,859,664

2,841,805

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,852,728

2,826,516

6,935

15,288Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

3,221,868

6,467,811

36,48036,480Retained earnings

Total shareholders'equity

Treasury shares

10,769,680(62,626)

20,396,733

Changes during period
Issuance of new shares

72,961Dividends of surplus(468,256)(468,256)

Profit attributable to owners ofparent

1,427,334

1,427,334

Purchase of treasury shares(341,257)(341,257)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

36,48036,480959,078(341,257)

690,782

3,258,349

6,504,292

11,728,758(403,884)

21,087,515

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income1,732,254(124,237)(7,417)1,600,599

Non-controllinginterests

Total net assets

40,92522,038,259

Changes during period
Issuance of new shares

72,961Dividends of surplus(468,256)

Profit attributable to owners ofparent

1,427,334

Purchase of treasury shares(341,257)

Net changes in items otherthan shareholders' equity(168,118)

590,094

3,453

425,4296,900

432,330

Total changes during period(168,118)

590,094

3,453

425,429

6,900

1,123,112

Balance at end of period

1,564,136

465,857(3,964)

2,026,029

47,82623,161,371

7

Fiscal year ended March 31, 2023
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

3,258,349

6,504,292

37,49237,492Retained earnings

Total shareholders'equity

Treasury shares

11,728,758(403,884)

21,087,515

Changes during periodIssuance of new shares

74,984

Dividends of surplus(780,956)(780,956)

Profit attributable to owners ofparent

1,694,399

1,694,399

Purchase of treasury shares(1,366)(1,366)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

37,49237,492

913,443(1,366)

987,060

3,295,841

6,541,784

12,642,202(405,251)

22,074,576

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslationadjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income1,564,136

465,857(3,964)

2,026,029

Non-controllinginterests

Total net assets

47,82623,161,371

Changes during period
Issuance of new shares

74,984

Dividends of surplus(780,956)

Profit attributable to owners ofparent

1,694,399

Purchase of treasury shares
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period(1,366)273,366

853,675

5,126

1,132,168

273,366

853,675

5,126

1,132,168

15,237

2,134,466

1,837,502

1,319,532

1,162

3,158,197

63,06425,295,837

8

15,237

1,147,405

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

1,470,818

2,329,533

Depreciation
Increase (decrease) in allowance for doubtful accounts

680,271113

714,548
34

Increase (decrease) in provision for product warranties
Increase (decrease) in retirement benefit liability(37,969)
7,242

219,360(45,454)

Interest and dividend income
Interest expenses(118,640)
100,404(131,605)
197,275

Loss (gain) on sale of non-current assets
Loss (gain) on disposal of non-current assets(2,166)43(1,911)
178

Loss (gain) on sale of investment securities
Loss on valuation of golf club membership(61,380)400––

Decrease (increase) in trade receivables
Decrease (increase) in inventories(369,651)
237,342(683,522)(1,864,770)

Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable - other(71,795)(162,187)

631,091(78,883)

Increase (decrease) in trade payables
Increase (decrease) in accrued expenses

1,103,129
84,445

1,003,336
84,552Other, net(283,584)

484

Subtotal

2,576,835

2,374,248

Interest and dividends received

112,082

118,363Interest paid
Income taxes refund (paid)(60,483)(268,807)(182,729)(416,642)

Net cash provided by (used in) operating activities

2,359,626

1,893,239

Cash flows from investing activities
Proceeds from withdrawal of time deposits

3135

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(258,726)
2,244(361,094)
9,006

Purchase of intangible assets
Purchase of investment securities(28,887)(51,414)(34,079)(16,718)

Proceeds from sale of investment securities
Loan advances

73,315(2,910)––

Proceeds from collection of loans receivable

2,742

3,420

(263,604)(399,429)

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

596,901–(958,165)
192,000

Repayments of long-term borrowings
Purchase of treasury shares(864,887)(341,257)(526,211)(1,366)

Dividends paid
Other, net(468,256)(149,819)(780,956)(167,352)(1,227,318)(2,242,051)

Net cash provided by (used in) investing activities
Cash flows from financing activities

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

210,442

238,538

Net increase (decrease) in cash and cash equivalents

1,079,146(509,702)

Cash and cash equivalents at beginning of period

6,847,106

7,926,252

Cash and cash equivalents at end of period

7,926,252

7,416,549

9