Consolidated Financial Results < under Japanese GAAP >For Six Months Ended September 30 ,2022
November 11 ,2022

Company name:
Listing:
Securities code:
URL:
Representative:

Kitagawa Corporation
Tokyo Stock Exchange
6317
https://www.kiw.co.jp/
Yuji Kitagawa, Representative Director, Chairman, President and Executive Officer
Hiroo Monden, Director and Senior Executive Officer,
Inquiries:
Manager of Accounting Department,Business Management Division
Telephone:+81-847-45-4560
November 11 ,2022
Scheduled date to file quarterly securities report:
December 1 ,2022
Scheduled date to commence dividend payments:Yes
Preparation of supplementary material on quarterly financial results:
Yes(for institutional investors and analysts)
Holding of quarterly financial results briefing:(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for six months ended September 30 ,2022(from April 1 ,2022 to September 30 ,2022)（1）Consolidated operating results(％ indicate change from same period of the previous fiscal year.)Net sales

Operating profit

Millions of yen
Six Months ended% Millions of yen%
September 30 ,2022
28,0701.650(94.9)
September 30 ,2021
27,62028.9975―Comprehensive income :For six months ended September 30 ,2022
NoteMillions of yen

607
1,237

For six months ended September 30 ,2021

Basic earnings
per share

Six Months ended
September 30 ,2022
September 30 ,2021

Diluted earnings
per share

Yen
3.24
70.11

Profit attributable toowners of parent

Ordinary profit% Millions of yen(50.9)
30―
656
1,233 million yen
1,324 million yen
Ratio of ordinary
profit to total assets

Return on equityYen――%0.1
1.7%(95.4)―(6.9) %― %Ratio of operating
profit to net sales

%
0.8
1.7%
0.2
3.5(2) Consolidated financial position
Total assets
As ofSeptember 30 ,2022
March 31 ,2022
Reference:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

yen

74,15673,311

37,552
36,73549.9
49.6

4,008.30
3,880.59

EquityAs of September 30 ,2022

37,005 million yen

As of March 31 ,2022

36,326 million yen

2. Dividends
dividends per share

Dividends to netassets(consolidated)

End of 3Q

YenYenYenYen

Yen

Millions of yen%%

FY March 2022

―

25.00

―

25.00

50.00

468

71.3

1.2

FY March 2023
FY March 2023(forecast)

―

30.00

280

1542.3

1.3―

AnnualPayout ratio（consolidated）

End of 2Q

Note:

Year-end

Total dividends
paid（annual）

End of 1Q

20.00

Revisions to the forecast of cash dividends most recently announced:

50.00

0.0
Yes

－1－3. Consolidated Financial Forecast(April 1 ,2022 through March 31 ,2023)(％ indicate year-on-year changes from full of fiscal year.)Net sales
Millions of yen

Full yearNote:

60,000Operating income%
2.3

Millions of yen

300

Profit attributable toowners of parent

ordinary income%(85.7)

Millions of yen

1,200%(60.8)

Revisions to the financial results forcast announced most recently:

Millions of yen

100%
―

yen

10.78

Yes

Notes
Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in(1)
scope of consolidation):
Newly included:
Excluded: ―Profit per share

No―

(2)

Accounting policies adopted specially for the preparation of quarterly consolidated finaicial statements:

No(3)Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations:(ii) Changes in accounting policies due to other reasons:(iii) Changes in accounting estimates:(iv) Restatement:

NoNo
NoNo

(4)

Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of September 30 ,2022
As of March 31 ,2022

9,650,803
9,650,803

shares418,647
289,782

shares9,280,694
9,361,796

sharesshares(ii) Number of treasury shares at the end of the period
As of September 30 ,2022
As of March 31 ,2022

shares(iii) Average number of shares outstanding during the period
For six months ended September 30 ,2022
For six months ended September 30 ,2021

sharesQuarterly financial results reports are not audited by certified public accountants or auditing firms.
Explanation for the appropriate use of performance forecasts and other special notes:
The statements regarding forecast of financial results in this report are based on the information that is available, as well as
estimates, assumptions and projections that are believed to be reasonable at the time of publication, and they are not meant to be acommitment by the Company. Therefore, there might be cases in which actual results differ from forecast values.

－2－Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofAssets
Current assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets－3－

March 31,2022

September 30 ,2022

8,852
11,959
7,446
4,372
4,560
2,644
755
(18)
40,573

9,605
11,598
5,584
4,338
5,108
3,003
864
(16)
40,086

6,154
10,6207,833
24,608606
7,523
32,73873,311

6,753
12,554
6,394
25,702591
7,776
34,07074,156

(Millions of yen)
As ofLiabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for environmental measures
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
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－March 31,2022

September 30 ,2022

5,394
6,420
2,867
1,249
808
684
115
4,508
22,048

4,973
6,170
3,701
1,308
230
668
79
4,792
21,925

9,116
44
4,998
367
14,52836,576

9,093
43
5,111
42914,678
36,6048,640
5,091
21,032(617)
34,146

8,640
5,084
20,828(792)
33,760

1,240
1,099
(160)
2,179
408
36,73573,311

1,213
2,132(100)
3,244
546
37,552
74,156

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income( Consolidated Statements of Income)(Millions of yen)
For the six months ended
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Gain on sale of scraps
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Provision for product warranties
Restructuring expenses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit attributable to owners of parent－5－

September 30 ,2021

September 30 ,2022

27,62023,670
3,950
2,975
975

28,07024,858
3,211
3,161
50

10
42
48
―
160
10160
432

24
61
163
214
77
―
86
627

41
112
16
170
1,237

68
―
170
607

―
44
44

99
―
99

46
38
―
84
1,197
497
100
597
599
(56)
656

136
―
244
380
326
288
77
366
(40)
(70)
30

( Consolidated Statements of Comprehensive Income)(Millions of yen)
For the six months ended
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests－6－

September 30 ,2021

September 30 ,2022

599

(40)

(37)
(3)
684
75

(27)
―1,194615457241,324

1,273
1,2331,25371

1,095
138

(3) Consolidated Statements of Cash Flows(Millions of yen)
For the six months ended
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted
for using equity method
Loss (gain) on sale of property, plant and equipment
Loss on retirement of property, plant and equipment
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activitiesCash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period‐7‐

September 30,2021

September 30,2022

1,197
1,864(1)36136(52)
41326
1,560
(2)
(15)119(86)68(48)(163)―
46(44)
1,208(901)
999
(477)
(1,538)2,46662(41)
(515)
1,972

(99)
136
―
2,320(486)
(761)
(396)
280
2,800
88(66)(846)
1,975(2,075)28(3)31(92)(2,111)(1,343)182(5)11(29)(1,185)

(564)
996
(387)
(1)
(187)
(24)
(168)
58
(248)
10,34910,100

674
―
(561)
(199)
(234)
(25)
(346)
299
742
8,600
9,342

Segment Information
Industry Segment Information
The six months ended September 30 ,2021
1.Sales and Profit or Loss by reportable segments(Millions of yen)
Reportable segment
Kitagawa
MaterialTechnologyCompany

Kitagawa
SunTechCompany

Kitagawa
GlobalhandCompany

OtherTotal

Total

Net sales
13,482

Unaffiliated customers
Intersegment
Total
Operating profit (loss)

9,126

4,760

27,369251

27,620

120

02

123

7

130

13,603

9,126

4,762

27,492258

27,751

125

847

546

1,519(145)

1,374

2.Difference between reportable segment total and consolidated financial statement amounts and main factors in the difference(related to difference adjustment)(Millions of yen)
Earnings

Six months ended September 30 ,2021

Reportable segment total

1,519

Earnings for Other(145)Corporate expenses（note）(398)

Operating profit in consolidated financial statements

975

Note:

Corporate expenses are expenses of administrative divisions of company that are not attributable to reportable segments.

The six months ended September 30 ,2022
1.Sales and Profit or Loss by reportable segments(Millions of yen)
Reportable segment
Kitagawa
MaterialTechnologyCompany

Kitagawa
SunTechCompany

Kitagawa
GlobalhandCompany

OtherTotalTotal

Net sales
Unaffiliated customers

13,072

10,071

4,737

27,881

18828,070

77

0

683

―83

13,14910,071

4,744

27,965

188

28,153(883)

772

575

464

(94)

369

Intersegment
Total
Operating profit (loss)

2.Difference between reportable segment total and consolidated financial statement amounts and main factors in the difference(related to difference adjustment)(Millions of yen)
Earnings

Six months ended September 30 ,2022

Reportable segment total

464

Earnings for Other(94)

Corporate expenses（note）

(319)
50

Operating profit in consolidated financial statements
Note:

Corporate expenses are expenses of administrative divisions of company that are not attributable to reportable segments.

－8－