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, 2022
(Based on Japanese GAAP)
November 11, 2022
Company name:
SAKAI HEAVY INDUSTRIES,LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

6358
URL https://www.sakainet.co.jp/
President and Representing Director
Ichiro Sakai

Inquiries:

Executive Officer
General Manager Administration Division

Takao Yoshikawa

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

November 11, 2022
December 12, 2022

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

Yes
Yes

TEL

03-3434-3401(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
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%
Six months ended September 30, 2022
14,891
14.7
1,067
47.2
1,095
49.5
818
60.8
Six months ended September 30, 2021
12,98727.8
725 279.2
732 332.8
509–
Earnings per share

Diluted earnings per share

Yen
193.92119.52Six months ended September 30, 2022
Six months ended September 30, 2021

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
41,21237,858

As of September 30, 2022
As of March 31, 2022

Equity ratio

Millions of yen
24,762
23,161

%
59.9
61.1

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
60.00
80.00

Yen–

Yen
105.00Yen
165.00–100.00180.00Year ending March 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Full year

Millions of yen
30,000Percentages 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
12.8
2,020
46.0
2,050
45.6
1,520
6.5
360.081

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(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:

Yes
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 September 30, 2022

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

4,366,117 shares

156,037 shares As of March 31, 2022

155,929 shares

Number of treasury shares at the end of the period
As of September 30, 2022

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

4,221,267 shares Six months ended September 30, 2021

24,259,919 shares

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

As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

7,993,405
7,137,752

9,385,267
8,167,416

Electronically recorded monetary claims - operating
Merchandise and finished goods

1,400,265
2,751,053

1,205,625
2,814,012

Work in process
Raw materials and supplies

1,347,188
3,109,380

1,412,954
3,834,344

Other
Allowance for doubtful accounts

1,336,688(59)

1,302,371(23,582)

Total current assets

25,075,675

28,098,409

6,985,162

7,476,771

Intangible assets
Investments and other assets

480,763

390,584

Investment securities
Other

3,421,772
1,895,471

3,309,582
1,937,427

(261)

(261)

Non-current assets
Property, plant and equipment

Allowance for doubtful accounts
Total investments and other assets

5,316,982

5,246,747

12,782,908

13,114,103

37,858,583

41,212,513

Notes and accounts payable - trade
Electronically recorded obligations - operating

2,078,924
3,887,863

2,601,314
4,448,698

Short-term borrowings
Income taxes payable

5,688,722
269,304

6,059,117
272,211

Provisions
Other

117,004
1,488,501

356,898
1,614,476

Total current liabilities

13,530,319

15,352,716

Total non-current assets
Total assets
Liabilities
Current liabilities

Non-current liabilities
Long-term borrowings

17,16468,004Retirement benefit liability
Other

173,232
976,495

166,216
863,425

Total non-current liabilities

1,166,892

1,097,645

14,697,211

16,450,362

Total liabilities3

(Thousands of yen)
As of March 31, 2022

As of September 30, 2022

Net assets
Shareholders' equity
Share capital

3,258,349

3,295,841

Capital surplus
Retained earnings

6,504,292
11,728,758

6,541,784
12,116,391

Treasury shares(403,884)(404,216)

21,087,515

21,549,800

1,564,136
465,857

1,474,667
1,682,942(3,964)(6,840)2,026,029

3,150,769

47,826

61,58023,161,371

24,762,150

37,858,583

41,212,513

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

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

Six months ended

September 30, 2021

September 30, 2022

Net sales
Cost of sales

12,987,242
9,766,454

14,891,023
11,069,306

Gross profit

3,220,788

3,821,717

198,690

217,878

1,057,446
394,252

1,159,469
430,261

845,007946,627

Selling, general and administrative expenses
Transportation costs
Salaries and bonuses
Technical research expenses
Other

2,495,396

2,754,236

Operating profit

Total selling, general and administrative expenses

725,391

1,067,480

Non-operating income
Interest income

24,153

3,107

Dividend income
Foreign exchange gains

71,532
1,003

82,146
91,256

Other

28,67913,513

Total non-operating income

125,368

190,024

68,17349,364100,444
53,739Non-operating expenses
Interest expenses
bank charge
Other

397

7,697

117,935

161,881732,825

1,095,623

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

1,111
7,191

1,867
–

Total extraordinary income

8,302

1,867

Extraordinary losses
Loss on sale of non-current assets

43173

43173

Profit before income taxes

741,083

1,097,318

Income taxes

231,000

276,588

Profit510,083

820,729

944

2,138

509,139

818,591

Total non-operating expenses
Ordinary profit
Extraordinary income

Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income (cumulative)(Thousands of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2021

September 30, 2022

510,083

820,729

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(134,554)
303,869(89,468)
1,228,699

Remeasurements of defined benefit plans, net of tax

621(2,875)

169,936

1,136,355

Comprehensive income

Total other comprehensive income

680,019

1,957,085

Comprehensive income attributable toComprehensive income attributable to owners of parent

676,283

1,943,361

3,735

13,724Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxesSix months ended

Six months ended

September 30, 2021

September 30, 2022

741,083

1,097,318

Depreciation
Increase (decrease) in allowance for doubtful accounts

326,349(178)

348,626
21,773

Increase (decrease) in provision for product warranties
Increase (decrease) in retirement benefit liability

12,067
12,476

239,894(28,286)

Interest and dividend income
Interest expenses(95,685)
68,173(85,254)
100,444

Loss (gain) on sale of non-current assets
Loss (gain) on sale of investment securities(1,067)(7,191)(1,694)–Decrease (increase) in trade receivables
Decrease (increase) in inventories

322,205
437,036(435,784)(114,372)

Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable - other

66,418(80,668)

310,987(11,096)

1,119,526(21,491)

648,455(156,482)

Increase (decrease) in trade payables
Increase (decrease) in accrued expenses
Other, net(147,278)

149,423

Subtotal

2,751,778

2,083,952

Interest and dividends received

106,308

89,187

Interest paid
Income taxes paid

(41,035)(143,124)(82,220)(240,703)

Net cash provided by (used in) operating activities

2,673,925

1,850,216

Cash flows from investing activities
Proceeds from withdrawal of time deposits

535

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(119,130)
1,189(161,935)
8,739

Purchase of intangible assets
Purchase of investment securities(16,028)–(8,046)(16,718)

Proceeds from sale of investment securities
Loan advances

9,639(1,500)––

Proceeds from collection of loans receivable938

2,122(124,886)(175,802)

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings(103,476)–(437,188)
192,000

Repayments of long-term borrowings
Purchase of treasury shares(117,676)(341,006)(36,120)(332)

Dividends paid
Other, net(215,639)(70,208)(442,069)(86,781)

Net cash provided by (used in) financing activities(848,006)(810,492)

Effect of exchange rate change on cash and cash equivalents

80,658526,633

Net increase (decrease) in cash and cash equivalents

1,781,691

1,390,555

Cash and cash equivalents at beginning of period

6,847,106

7,926,252

Cash and cash equivalents at end of period

8,628,798

9,316,808

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

7