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 8, 2022
Company name:
Hodogaya Chemical Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

4112
President

URL

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

Inquiries:

General Manager, Corporate Planning
DepartmentYasuhiro Mohri

TEL

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

November 9, 2022
December 9, 2022

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:Yes
No03-6852-0327(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
20,5791.2
1,963 (41.6)
2,526 (27.8)
1,398 (20.9)
Six months ended September 30, 2021
20,329
4.7
3,361
20.4
3,498
20.6
1,767
41.1
Earnings per share

Diluted earnings per share

Yen
176.55223.26Six months ended September 30, 2022
Six months ended September 30, 2021

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
67,19666,448

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

Equity ratio

Millions of yen
48,377
47,912

%
62.3
62.3

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
30.00
32.50

Yen–

Yen
30.00

Yen
60.00

–

32.50

65.00

Year 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
44,000Percentages 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
5.1
4,300 (33.0)
4,300 (37.8)
2,400 (26.1)
303.12

1

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

8,413,726 shares As of March 31, 2022

8,413,726 shares

489,460 shares As of March 31, 2022

496,038 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

7,919,511 shares Six months ended September 30, 2021

27,917,615 shares

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

As of September 30, 2022

AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade, and contract assets

10,943
12,429

11,795
10,930

Securities
Merchandise and finished goods

511
6,019

–
6,917

Work in process
Raw materials and supplies

1,130
2,177

1,271
2,593

831
(29)

876
(19)

34,01334,364

6,282
11,7096,443
11,708

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net

4,458

5,039

Total property, plant and equipment

22,44923,191

43
153

37181

Intangible assets
GoodwillSoftwareOther

46

42

Total intangible assets

243

262

Investment securities
Long-term loans receivable

7,987
233

7,789
239

Deferred tax assets
Other

232
1,305

195
1,171

Investments and other assets

Allowance for doubtful accounts

(17)

(17)

Total investments and other assets

9,741

9,377

32,43532,831

66,44867,196

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

4,738

4,634

2,999
1,086

3,999
691

675
24

680
81Asset retirement obligations
Other

72
1,890

–
2,321

Total current liabilities

11,487

12,407

Non-current liabilities
Long-term borrowings

3,366

2,864

1,259
1,228

1,176
1,228

73
1977
81

Short-term borrowings
Income taxes payable
Provisions
Contract liabilities

Deferred tax liabilities
Deferred tax liabilities for land revaluation
Retirement benefit liability
Asset retirement obligations
Other

1,101

982

Total non-current liabilities

7,048

6,410

18,535

18,818

Share capital
Capital surplus

11,196
8,718

11,196
7,948

Retained earningsTreasury shares

16,883(1,666)

18,044(1,644)

Total shareholders' equity

35,13135,544

Total liabilities
Net assets
Shareholders' equity

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

2,303

2,224

Revaluation reserve for land
Foreign currency translation adjustment

2,784
1,196

2,784
1,289

Total accumulated other comprehensive income

6,284

6,298

Non-controlling interests

6,496

6,534

Total net assets

47,912

48,37766,44867,196

Total 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)Six months ended

Six months ended

September 30, 2021

September 30, 2022

Net sales
Cost of sales

20,32911,60920,57912,271Gross profit

8,719

8,308

Selling, general and administrative expenses

5,358

6,344

Operating profit

3,361

1,963

Interest income
Dividend income

11131

45173

Rental income from non-current assets
Foreign exchange gains

41–

29346

Non-operating income

Miscellaneous income

4631

Total non-operating income

230625Interest expenses
Foreign exchange losses

242523–

Environmental maintenance expenses
Miscellaneous losses

35
730
7

Total non-operating expenses

93

61

3,498

2,526

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

––

57
3

Total extraordinary income

–

60

127–
019–

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Head office relocation expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5

146

3,496

2,540

873

597

2,623

1,942

856

544

1,767

1,398

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2021

September 30, 2022

2,623

1,942

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

(11)
(341)

(79)
57

Total other comprehensive income

(353)

(21)

2,270

1,921

1,571

1,412

699508Comprehensive 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)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2021

September 30, 2022

3,496

2,540

Depreciation
Amortization of goodwill

786
5878
6

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

(60)
(7)

(6)
3

Interest and dividend income
Interest expenses(142)
24(218)23

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

41(78)
27

Loss (gain) on sale of property, plant and equipment
Loss (gain) on sale of investment securities

––

(3)
(57)

Decrease (increase) in trade receivables
Decrease (increase) in inventories

1,183(643)

1,628(1,442)

Increase (decrease) in trade payables
Increase/decrease in other assets/liabilities

357
53(253)
301

Increase (decrease) in accrued consumption taxes
Other, net(19)52(110)
37

5,092

3,276

Interest and dividends received
Interest paid

138(24)

209(23)

Income taxes paid
Income taxes refund(927)
5(1,071)–Net cash provided by (used in) operating activities

4,284

2,390(506)(1,155)

19533(894)(1,411)(1)(2)

Proceeds from sale of property, plant and equipment andintangible assets–

5

Payments for asset retirement obligations
Purchase of investment securities

–
(0)

(72)
(52)

Proceeds from sale of investment securities
Proceeds from redemption of securities

–
–

282
519

Loan advances
Proceeds from collection of loans receivable(22)19(39)25

Payments of guarantee deposits
Proceeds from refund of guarantee deposits

(189)
34

(23)
172

(4)
0–(31)(1,545)(1,249)Subtotal

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

Purchase of long-term prepaid expenses
Other, net
Net cash provided by (used in) investing activities

7

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Six months ended

Six months ended

September 30, 2021

September 30, 2022
–

1,000

Repayments of long-term borrowings
Dividends paid

(558)
(196)

(502)
(236)

Dividends paid to non-controlling interests
Proceeds from sale of treasury shares

(223)
–

(253)
0

Purchase of treasury shares
Repayments of lease liabilities

(2)
(62)

(0)
(64)

–

(987)

Net cash provided by (used in) financing activities(1,043)(1,045)

Effect of exchange rate change on cash and cash equivalents

(85)

149

Purchase of shares of subsidiaries not resulting in change inscope of consolidation

Net increase (decrease) in cash and cash equivalents

1,609

244

Cash and cash equivalents at beginning of period

9,331

10,365

Cash and cash equivalents at end of period

10,94010,6108