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, 2021
(Based on Japanese GAAP)
November 11, 2021
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, 2021
December 13, 2021

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, 2021 (from April 1, 2021 to September 30, 2021)(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, 2021
12,98727.8
725 279.2
732 332.8509–
Six months ended September 30, 2020
10,163 (16.0)
191 (72.7)
169 (73.4)(373)–Earnings per share

Diluted earnings per share

Yen
119.52(87.01)

Six months ended September 30, 2021
Six months ended September 30, 2020

Yen––(2) Consolidated financial position
Total assetsNet assets

Millions of yen
36,45435,101

As of September 30, 2021
As of March 31, 2021

Equity ratio

Millions of yen
22,23422,038

%
60.9
62.7

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
30.00
60.00

Yen–

Yen
50.00

Yen
80.00

–

60.00

120.00Year ending March 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
25,000Percentages 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
15.6
900
28.3
800
21.4
520
–
120.571

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(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, 2021

4,366,117 shares As of March 31, 2021

4,338,417 shares

155,840 shares As of March 31, 2021

25,628 shares

Number of treasury shares at the end of the period
As of September 30, 2021

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

4,259,919 shares Six months ended September 30, 2020

24,294,152 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2021

As of September 30, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

6,983,590
7,959,111

8,765,349
7,706,768

Merchandise and finished goods
Work in process

3,646,537
1,151,343

2,951,884
1,351,511

Raw materials and supplies
Other

2,252,540
934,664

2,429,487
1,054,913

Allowance for doubtful accounts

(204)

(24)

22,927,582

24,259,890

Property, plant and equipment
Intangible assets

6,725,762
557,799

6,838,182
574,401

Investments and other assets
Investment securities

3,625,519

3,427,491

Other1,264,337

1,354,688

Total investments and other assets

4,889,857

4,782,179

12,173,419

12,194,763

35,101,001

36,454,653

Notes and accounts payable - trade
Electronically recorded obligations - operating

1,737,165
2,951,463

1,813,374
4,048,793

Short-term borrowings
Income taxes payable

5,105,785
173,071

5,025,035
297,478

Provisions
Other

154,973
1,365,684

167,041
1,337,206

Total current liabilities

11,488,144

12,688,929

Non-current liabilities
Long-term borrowings

Total current assets
Non-current assets

Total non-current assets
Total assets
Liabilities
Current liabilities

428,001

420,560Retirement benefit liability
Other156,043
990,554

175,657
934,911

Total non-current liabilities

1,574,598

1,531,128

13,062,742

14,220,058

Total liabilities3

(Thousands of yen)
As of March 31, 2021

As of September 30, 2021

Net assets
Shareholders' equity
Share capital

3,221,868

3,258,349

Capital surplus
Retained earnings

6,467,811
10,769,680

6,504,292
11,063,180(62,626)(403,632)

20,396,733

20,422,188

1,732,254(124,237)

1,597,700
176,846(7,417)(6,796)1,600,599

1,767,750

40,92544,65522,038,259

22,234,595

35,101,001

36,454,653

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

September 30, 2020

September 30, 2021

Net sales
Cost of sales

10,163,237
7,633,821

12,987,242
9,766,454

Gross profit

2,529,416

3,220,788

161,594

198,690

1,001,171
374,159

1,057,446
394,252

801,181845,0072,338,106

2,495,396

191,309725,391

3,010

24,153

Dividend income
Foreign exchange gains

97,100–71,532
1,003

Other

5,626

28,679105,737

125,368

Interest expenses
bank charge

73,54531,94968,17349,364Foreign exchange losses
Other

15,925
6,305–397

Total non-operating expenses

Selling, general and administrative expenses
Transportation costs
Salaries and bonuses
Technical research expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income

Total non-operating income
Non-operating expenses

127,725

117,935

Ordinary profit

169,321732,825

Extraordinary income
Gain on sale of non-current assets

20,452

1,111

Gain on sale of investment securities
Total extraordinary income–7,191

20,452

8,302

472

43

Extraordinary losses
Loss on sale of non-current assets
Total extraordinary losses

472

43

189,302741,083

Income taxes

563,122231,000

Profit (loss)(373,820)

510,083

Profit before income taxes

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

5(168)

944(373,651)

509,139

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

Profit (loss)
Other comprehensive income

Six months ended

Six months ended

September 30, 2020

September 30, 2021

(373,820)

510,083

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

265,435(105,198)(134,554)
303,869

Remeasurements of defined benefit plans, net of tax(397)621

159,838

169,936

Comprehensive income

Total other comprehensive income(213,981)

680,019

Comprehensive income attributable toComprehensive income attributable to owners of parent(213,072)

676,283

(908)

3,735

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2020

September 30, 2021

189,302741,083

Depreciation
Increase (decrease) in allowance for doubtful accounts

311,387–

326,349(178)

Increase (decrease) in provision for product warranties
Increase (decrease) in retirement benefit liability(13,420)
1,962

12,067
12,476

Interest and dividend income
Interest expenses(100,111)
73,545(95,685)
68,173

Loss (gain) on sale of non-current assets
Loss (gain) on sale of investment securities(19,980)–(1,067)(7,191)(137,293)
1,187,382

322,205
437,036(48,658)
126,937

66,418(80,668)(1,265,525)(4,818)

1,119,526(21,491)

Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in accrued expenses
Other, net(56,943)(147,278)

Subtotal

243,764

2,751,778

Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits

95,898106,308(73,904)(272,208)(41,035)(143,124)(6,449)2,673,925(1)–

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

104(381,867)

5(119,130)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

29,989(28,419)

1,189(16,028)

–
(700)

9,639
(1,500)

Proceeds from sale of investment securities
Loan advances
Proceeds from collection of loans receivable

1,125938(379,767)(124,886)

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings–
30,000(103,476)–

Repayments of long-term borrowings
Purchase of treasury shares(17,636)(283)(117,676)(341,006)

Dividends paid
Other, net(214,331)(58,707)(215,639)(70,208)

Net cash provided by (used in) financing activities(260,958)(848,006)

Effect of exchange rate change on cash and cash equivalents(24,394)

80,658Net increase (decrease) in cash and cash equivalents(671,570)

1,781,691

Cash and cash equivalents at beginning of period

6,682,986

6,847,106

Cash and cash equivalents at end of period

6,011,416

8,628,798

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

7