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, 2020
(Based on Japanese GAAP)
October 29, 2020
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, 2020
December 7, 2020

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

03-5299-8019(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)(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, 2020
19,42010.7
2,792 244.0
2,900 266.2
1,252 122.6
Six months ended September 30, 201917,5492.0
811 (28.1)
792 (42.5)
562 (43.4)
Earnings per share

Diluted earnings per shareYen
158.4071.23

Six months ended September 30, 2020
Six months ended September 30, 2019

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
56,74654,903

As of September 30, 2020
As of March 31, 2020

Equity ratio

Millions of yen
39,91537,040

%
63.2
61.8

2. Cash dividends
Annual dividends per share

Year ended March 31, 2020
Year ending March 31, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
25.00
25.00

Yen–

Yen
25.00

Yen
50.00

–

25.00

50.00

Year ending March 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Net sales
Full yearMillions of yen
39,000Percentages 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
3.3
4,300
48.1
4,500
47.1
2,200
18.4
278.131

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2020(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:

NoNo

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, 2020

8,413,726 shares As of March 31, 2020

8,413,726 shares

496,607 shares As of March 31, 2020

510,700 shares

Number of treasury shares at the end of the period
As of September 30, 2020

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2020

7,910,038 shares Six months ended September 30, 2019

2

7,903,106 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2020

As of September 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

6,877
11,250

8,115
9,367

Merchandise and finished goods
Work in process

4,251
624

4,458
1,152

Raw materials and supplies
Other

2,169
410

2,222
672

Allowance for doubtful accounts
Total current assets

(21)

(18)

25,56325,969Non-current assets
Property, plant and equipment
Buildings and structures, net

5,326

6,343

Land
Other, net

11,967
4,814

11,9694,082

Total property, plant and equipment

22,10822,396

Intangible assets
Software

127

129

Other

30

31

Total intangible assets

157

160

5,966
261

7,061
401

Deferred tax assets
Other344
694

179
770

Allowance for doubtful accounts(192)(192)

Investments and other assets
Investment securities
Long-term loans receivable

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

3

7,074

8,220

29,34030,77754,90356,746

(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

4,179

3,674

Short-term borrowings
Income taxes payable

3,203
360

3,202
580

Provisions
Other504
1,959

517
1,460

Total current liabilities

10,207

9,434

Non-current liabilities
Long-term borrowings

3,950

3,392

1,108
1,228

1,427
1,228

Provisions
Retirement benefit liability

169

172

Asset retirement obligations
Other81
1,215

81
1,193

Total non-current liabilities

7,655

7,396

17,863

16,830Shareholders' equity
Share capital

11,196

11,196

Capital surplus
Retained earnings

8,706
11,396

8,716
12,451

Treasury shares(1,712)(1,666)

Total shareholders' equity

29,58630,698

1,146
2,783

1,914
2,783

424

489

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

4,354

5,186

Non-controlling interests

Total accumulated other comprehensive income

3,099

4,030

Total net assets

37,04039,91554,90356,746

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, 2019

September 30, 2020

Net sales
Cost of sales

17,54911,917

19,42011,492Gross profit

5,631

7,927

Selling, general and administrative expenses

4,819

5,134

811

2,792

Interest income
Dividend income

8111

5110

Rental income from non-current assets
Miscellaneous income

30
82

33
92

Total non-operating income

232

242

32

25

Foreign exchange losses
Environmental maintenance expenses

169
33

67
32

Miscellaneous loss

16

9

Total non-operating expenses

252

134

792

2,900

0202

10

6

26–

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

Ordinary profitExtraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities

37

6

Profit before income taxes

Total extraordinary losses

755

2,896

Income taxes

127

664

Profit628

2,231

Profit attributable to non-controlling interests

65

978

Profit attributable to owners of parent

562

1,252

5

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2019

September 30, 2020
628

2,231

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

(542)
(450)

767
121

Remeasurements of defined benefit plans, net of tax(12)–(1,005)889

Comprehensive income

Total other comprehensive income

(377)

3,120

Comprehensive income attributable toComprehensive income attributable to owners of parent

(252)

2,084

(124)

1,035

Comprehensive income attributable to non-controllinginterests

6

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

Six months ended

September 30, 2019

September 30, 2020

Cash flows from operating activities
Profit before income taxes

755

2,896

Depreciation
Increase (decrease) in provisions

705
9718
10Increase (decrease) in retirement benefit liability
Interest and dividend income

(43)
(119)

2(115)

Interest expenses
Foreign exchange losses (gains)

32
76

25
15

Loss (gain) on sales of property, plant and equipment
Loss on retirement of property, plant and equipment

(0)
10(2)
6

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

262,991–1,891

Decrease (increase) in inventories
Increase (decrease) in trade payables(481)(1,449)

(751)
(498)

(225)
62

1(101)

Increase/decrease in other assets/liabilities
Increase (decrease) in accrued consumption taxes
Other, net

798

Subtotal

2,431

4,107

Interest and dividends received

117

115

Interest paid
Income taxes paid

(33)
(416)

(26)
(351)

Income taxes refund

46

52

2,145

3,898

Payments into time deposits
Proceeds from withdrawal of time deposits(19)
19(19)
19

Purchase of property, plant and equipment and intangible
assets(669)(1,525)

Proceeds from sales of property, plant and equipment andintangible assets

13

Payments for retirement of property, plant and equipment
Purchase of investment securities

(6)
(0)

(2)
(0)

Loan advances
Collection of loans receivable(15)
14(154)
14

Payments of guarantee deposits
Proceeds from refund of guarantee deposits(7)
31(101)
19

Other, net

01(650)(1,746)

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

Net cash provided by (used in) investing activities

7(Millions of yen)

Cash flows from financing activities
Repayments of long-term borrowings

Six months ended

Six months ended

September 30, 2019

September 30, 2020
(783)

(560)

(197)
(91)

(197)
(104)

Proceeds from sales of treasury shares
Purchase of treasury shares

0(1)

0(2)

Repayments of lease obligations

(28)

(61)

Net cash provided by (used in) financing activities(1,101)(926)

Effect of exchange rate change on cash and cash equivalents

(170)

9

Net increase (decrease) in cash and cash equivalents

221

1,235

Cash and cash equivalents at beginning of period

7,442

6,769

Cash and cash equivalents at end of period

7,664

8,005

Dividends paid
Dividends paid to non-controlling interests8