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 Three Months Ended June 30, 2024
(Based on Japanese GAAP)
August 9, 2024
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
Department

Yasuhiro Mohri

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

Holding of financial results meeting:

NoTEL

03-6852-0327(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)
Net sales
Three months ended June 30, 2024
Three months ended June 30, 2023

Millions of yen
14,48910,041

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
44.3
2,842 742.8
3,218 318.5
1,708 362.0
0.8
337 (66.3)
768 (45.2)
369 (44.4)

Earnings per share

Diluted earnings per share

Yen
215.12
46.63

Three months ended June 30, 2024
Three months ended June 30, 2023

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2024
As of March 31, 2024

Net assets

Millions of yen
84,213
81,157

Equity ratio

Millions of yen
60,73757,443%59.158.8

2. Cash dividends
Annual dividends per share

Year ended March 31, 2024
Year ending March 31, 2025

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
37.50

Yen–

Yen
37.50

Yen
75.00

42.50

–

42.50

85.00

Year ending March 31, 2025 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parentMillions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
Full year
48,000
8.4
4,500
13.9
4,800
1.9
2,700
8.8
340.2714. Notes(1) Significant changes in the scope of consolidation during the three months ended June 30, 2024:

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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

8,413,726 shares As of March 31, 2024

8,413,726 shares

469,343 shares As of March 31, 2024

477,374 shares

Number of treasury shares at the end of the period
As of June 30, 2024

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024

7,942,438 shares Three months ended June 30, 2023

2

7,930,533 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2024

As of June 30, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

12,965
12,266

13,65911,891

Merchandise and finished goods
Work in process

7,708
2,190

7,413
2,453

Raw materials and supplies
Other2,736
827

3,246
1,158

Allowance for doubtful accounts

(18)

(23)

38,67539,800

8,542

9,675

Land
Other, net

11,7338,390

11,752
8,437

Total property, plant and equipment

28,66529,865

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Intangible assets
Goodwill

22

19

Software
Other

225
310

209
587

Total intangible assets

558

815

Investments and other assets
Investment securities

10,885

11,142

145
364

156
519

Other
Allowance for doubtful accounts

1,881
(17)

1,930
(17)

Total investments and other assets

13,25813,731

42,482

44,41281,157

84,213Long-term loans receivable
Deferred tax assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2024

As of June 30, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provisions
Contract liabilities

5,130

4,910

5,040
883

5,185
786

592
57

354
8

Other

3,065

3,570

Total current liabilities

14,77014,815Long-term borrowings
Provisions

4,346
235

4,005
226

Deferred tax liabilities
Deferred tax liabilities for land revaluation

2,2531,228

2,341
1,228

94138

79
153

Non-current liabilities

Retirement benefit liability
Asset retirement obligations
Other646

624

8,943

8,659

23,714

23,475

Share capital
Capital surplus

11,196
7,933

11,196
7,933

Retained earnings
Treasury shares

20,660(1,593)22,063(1,567)

Total shareholders' equity

38,19739,626

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

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

4,415

4,587

Revaluation reserve for land
Foreign currency translation adjustment

2,784
2,337

2,784
2,774

Total accumulated other comprehensive income

9,537

10,146

Non-controlling interests

9,708

10,964

Total net assets

57,44360,737

81,157

84,213

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)Three months ended

Three months ended

June 30, 2023

June 30, 2024

Net sales
Cost of sales

10,041
6,577

14,489
7,783

Gross profit

3,463

6,705

Selling, general and administrative expenses

3,126

3,863

337

2,842

Interest income
Dividend income

46155

40158

Rental income from non-current assets
Foreign exchange gains

14227

13209

Operating profit
Non-operating income

Miscellaneous income

32

9Total non-operating income

475

431

Interest expenses
Environmental maintenance expenses

1918

1934

Miscellaneous losses

61Non-operating expenses

Total non-operating expenses

4355

768

3,218

Extraordinary income
Gain on sale of non-current assets

00

Total extraordinary income

00

811–52

Ordinary profit

Extraordinary losses
Loss on retirement of non-current assets
Impairment losses

864

Profit before income taxes

Total extraordinary losses

760

3,154

Income taxes

228

322

Profit532

2,831

Profit attributable to non-controlling interests

162

1,123

Profit attributable to owners of parent

369

1,708

5

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

ProfitOther comprehensive income

Three months ended

Three months ended

June 30, 2023

June 30, 2024
532

2,831

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

328
1,167

171
762

Total other comprehensive income

1,495

934

2,027

3,766

1,364

2,316

663

1,449

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)

Cash flows from operating activities
Profit before income taxes

Three months ended

Three months ended

June 30, 2023

June 30, 2024
760

3,154

Depreciation
Impairment losses

523–613
52

Amortization of goodwill
Increase (decrease) in provisions

3(238)

3(216)

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

3(201)(15)(199)

Interest expenses
Foreign exchange losses (gains)

19(28)

19(62)

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

8(0)

11(0)

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

2,222(308)442(270)

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

117
60(296)(111)

Increase (decrease) in accrued consumption taxes
Other, net

(17)
(115)

(332)
(113)

Subtotal

2,808

2,679

187
(21)

180
(19)

Interest and dividends received
Interest paid
Income taxes paid

(261)

(568)

Net cash provided by (used in) operating activities

2,713

2,272

Payments into time deposits
Proceeds from withdrawal of time deposits

(105)
1,078

(2,750)458

Purchase of property, plant and equipment and intangible
assets(1,175)(1,605)

(0)

(6)

00

Cash flows from investing activities

Payments for retirement of property, plant and equipment
Proceeds from sale of property, plant and equipment andintangible assets
Purchase of investment securities

(0)

(0)

Loan advances
Proceeds from collection of loans receivable

(16)
8(34)
16

Payments of guarantee deposits
Proceeds from refund of guarantee deposits

(31)
20

(14)
13

Purchase of long-term prepaid expenses
Other, net–(0)(4)–(222)(3,926)

Net cash provided by (used in) investing activities

7

(Millions of yen)

Cash flows from financing activities
Repayments of long-term borrowings

Three months ended

Three months ended

June 30, 2023

June 30, 2024
(231)

(196)

Dividends paid
Dividends paid to non-controlling interests

(0)
(54)

(0)
(60)

Purchase of treasury shares
Repayments of lease liabilities

(0)
(34)

(1)
(33)

Net cash provided by (used in) financing activities

(321)

(290)

Effect of exchange rate change on cash and cash equivalents

268

238

Net increase (decrease) in cash and cash equivalents

2,437(1,706)

Cash and cash equivalents at beginning of period

6,708

10,664

Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation

1,280

–

Cash and cash equivalents at end of period

10,426

8,957

8