For the Fiscal Year Ended March 31, 2021

Annual Select® 2021

SAKAI HEAVY INDUSTRIES, LTD.
Hamamatsu-cho Seiwa Bldg., 1-4-8 Shibadaimon,
Minato-ku, Tokyo 105-0012(Securities Code: 6358)+81-3-3434-3401

Corporate Profile
Japan has a network of roads which exceeds 1.2 million kilometers (750,000 miles), and it is the technologyof SAKAI HEAVY INDUSTRIES, LTD. that has supported this construction. It will soon be 100 years since
SAKAI introduced the very first road roller ever built in Japan. Over this time, we have continued to conduct
technological research and develop innovative products to meet the ever increasing sophistication of highway
construction, maintenance and repair as the pioneer in road construction equipment.
We believe our company mission is threefold. First, we provide reliable products and services to our clients.
Second, we always try to introduce new technologies to further develop our road construction business. Third,
we apply the technologies we have so acquired to other related business areas.
Today, in the field of road construction where higher technologies, greater diversification and deeper
consideration to the environment is becoming increasingly necessary, we at SAKAI HEAVY INDUSTRIES,
LTD. are determined to address the needs of our era and to make every effort to help countries throughout
the world with their road infrastructure using our untiring exploration of innovative technology and our
know-how, which has been acquired through years of experience.

Ichiro Sakai
President and Representing Director

I. Summary of Selected Financial Data (Consolidated)

Net sales

69th term

70th term

71st term

72nd term

73rd term

Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

23,699,366

29,504,006

24,775,064

22,744,492

21,624,456

1,549,884

3,145,379

1,199,970

829,906

659,186

1,816,015

1,889,409

825,088

470,286

4,001

2,236,001

2,147,830

236,623

15,551

402,360

20,605,337

22,475,618

22,285,287

21,919,981

22,038,259

35,819,124

39,277,509

35,402,964

35,448,327

35,101,001

4,854.74

5,278.82

5,218.13

5,103.57

5,100.49

428.44444.96193.77109.95

0.93

–

–

–

–

–

57.4

57.1

62.8

61.7

62.7

9.3

8.8

3.7

2.1

0.0

7.96

10.51

14.07

22.01

2,413.98

3,751,795

4,464,931(3,633,169)

3,448,160

1,525,854(421,539)(425,847)(2,335,221)(825,877)(508,901)(705,877)(906,239)(1,173,694)(226,644)(812,505)

8,340,226

11,404,134

4,210,496

6,682,986

6,847,106

601

626

628

633

602

(Thousands of yen)

Ordinary profit (loss)(Thousands of yen)

Profit (loss) attributable toowners of parent(Thousands of yen)Comprehensive income(Thousands of yen)

Net assets(Thousands of yen)

Total assets(Thousands of yen)

Net assets per share(Yen)

Basic earnings (loss) per share(Yen)

Diluted earnings per share(Yen)

Equity ratio(%)

Return on equity (ROE)(%)

Price earnings ratio (PER)(Times)Net cash provided by (used in)operating activities(Thousands of yen)

Net cash provided by (used in)investing activities(Thousands of yen)

Net cash provided by (used in)financing activities(Thousands of yen)

Cash and cash equivalents at
end of period(Thousands of yen)

Number of employees(Persons)

Notes: 1.
2.
3.
4.

Net sales do not include consumption taxes.
Diluted earnings per share is not provided because there were no potential shares.
The Company consolidated ten shares of common shares into one share of common shares as of October 1, 2017. Net assets
per share and basic earnings per share are calculated as if the consolidation of shares was conducted at the beginning of the69th term.
The Company has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No.
28, February 16, 2018) and relevant Guidances effective from the beginning of the 71st term, and the figures for the 70th termin this summary of selected financial data have been retrospectively adjusted to reflect the application of the aforementioned
standard, etc.

-1-II. Overview of Operations
The business environment affecting SAKAI HEAVY INDUSTRIES, LTD. and its subsidiaries (the “Group”)
during the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021) was in a period of greatchange that used the spread of the novel coronavirus disease (COVID-19) and global warming as anopportunity to transform global society. Big transformations have also progressed for behavioral patterns ofglobal society and industrial regulations, such as the penetration of digital technologies for restricting
activities on a global scale, the decision of policies for decarbonization and the great transformation to an eraof green growth that keeps pace with major nations of the world, and the further fluidization of the global
geopolitical situation and the disruption of the supply chain.
Under such conditions, the Group actively worked on initiatives for SDG issues through the digitaltransformation (DX) of business activities and the main business of the development of social infrastructure,and continued to promote “business management based on the major premise of change” and “medium- tolong-term growth strategies based on overseas businesses and next-generation businesses.”
As a result, net sales for the fiscal year under review were ¥21,624 million, a decrease of 4.9% year on year,
owing to a decrease in overseas sales due to the spread of COVID-19, despite solid sales in Japan.
In terms of profit, following the decrease of net sales and the decrease of expenses due to restrictions on
movement, operating profit was ¥701 million, a decrease of 26.9% year on year, and ordinary profit was¥659 million, a decrease of 20.6% year on year. As a result of the reversal of ¥380 million in deferred tax
assets at a North American operating subsidiary, profit attributable to owners of parent was ¥4 million, adecrease of 99.1% year on year.

Trend of operating results
Net sales:

27,50025,00024,701

Japan

North America

Asia

Middle East, Russia and the CIS

Net sales(Millions of yen)
30,000Operating profit:

Others系列129,50425,949Operating profit
25,751

22,500(Millions of yen)

24,77523,69922,744
3,357

21,6243,500

20,0003,000

17,50015,000

4,000

2,198

12,500

2,500
1,945

1,933

1,696

2,000
1,414

10,000

1,500
959

7,500

701

5,000

1,000
500

2,500

0

0
66th term

67th term

68th term

69th term

70th term

71st term

72nd term

73rd term

The following presents net sales on a consolidated basis by geographic segment.
Net sales in Japan were ¥13,042 million, a decrease of 1.6% year on year, as a result of solid sales against
the backdrop of the solid execution of public works.
Net sales to overseas were ¥8,582 million, a decrease of 9.6% year on year, as patchy market conditions
continued due to the spread of COVID-19.

-2-

Net sales to North America recovered to ¥3,245 million, a decrease of 10.3% year on year, due to demandfor construction machinery eventually bottoming out after a sharp drop in spite of solid construction
investment.
Net sales to Asia were ¥4,854 million, an increase of 3.1% year on year, due to demand recovering in Thailand,
Vietnam, South Korea and China, and demand showing signs of bottoming out, even in Indonesia, where net
sales have decreased significantly.
Net sales to the Middle East, Russia, and the CIS were ¥32 million, a decrease of 94.5% year on year, due tothe stagnation of sales activities.
Net sales to other markets were ¥449 million, a decrease of 22.0% year on year, due to the stagnation of net
sales to Africa, despite net sales to Central and South America and Oceania bottoming out.

Operating results by segment are as follows:Japan
Total net sales in Japan were ¥18,505 million, a decrease of 2.1% year on year, and operating profit was ¥739
million, a decrease of 10.3% year on year, as a result of a decrease in parts exports to overseas factories
despite solid sales in Japan.
Overseas
In the United States, total net sales were ¥3,272 million, a decrease of 10.2% year on year, as a result of ouraggressive efforts to strengthen sales activities and streamline expenses in response to declining demand,
while operating profit slightly returned to profitability.
In Indonesia, although exports to third countries saw a 20% increase, total net sales were ¥2,996 million, adecrease of 16.0% year on year, as a result of a 60% decrease in domestic sales due to the spread of COVID19, while operating profit was ¥17 million, a decrease of 67.2% year on year.
In China, although domestic sales had an increase of 30% through strengthening sales activities under thepolicy of decoupling the U.S. and China businesses, this was not sufficient to offset the decrease in parts
exports to the North America and factories of the Group. As a result, total net sales in China were ¥732
million, a decrease of 32.4% year on year, and operating loss was ¥82 million.

-3-III. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
As of March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets-4-

As of March 31, 2021

6,755,441
6,251,988
4,922,324
1,434,719
3,196,267
1,025,624–
23,586,366

6,983,590
7,959,111
3,646,537
1,151,343
2,252,540
934,664(204)
22,927,582

7,612,445(4,743,903)
2,868,542
3,636,272(3,092,777)
543,495
2,904,966
523,450(271,042)
252,407
1,593,471(1,346,167)
247,3036,816,715
613,745

7,885,995(4,923,203)
2,962,791
3,728,821(3,143,548)
585,2732,845,322
573,552(358,888)
214,664
1,502,440(1,384,730)
117,710
6,725,762
557,799

2,695,310
443,184
1,293,005
4,431,500
11,861,961
35,448,327

3,625,519
37,311
1,227,026
4,889,857
12,173,419
35,101,001

(Thousands of yen)

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
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-salesecurities
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-5-

As of March 31, 2020

As of March 31, 2021

4,858,381–
4,628,906
332,068
165,950
1,470,012
11,455,319

1,737,165
2,951,463
5,105,785
173,071
154,973
1,365,684
11,488,144

1,232,620
302,271
222,653
137,169
178,3122,073,027
13,528,346

428,001
311,433
483,460
156,043
195,659
1,574,598
13,062,742

3,191,658
6,437,601
11,109,401(61,846)
20,676,814

3,221,868
6,467,811
10,769,680(62,626)
20,396,733

1,079,061

1,732,254

118,860
2,387
1,200,309
42,857
21,919,981
35,448,327(124,237)(7,417)1,600,599
40,92522,038,259
35,101,001

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Thousands of yen)

Net sales
Cost of sales
Gross profit
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
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Bank charge
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Surrender value of insurance policies
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-6-

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

22,744,492
16,719,076
6,025,416

21,624,456
16,215,578
5,408,878

361,2292,109,522
753,187
1,841,554
5,065,493
959,923

307,400
2,053,469
768,303
1,578,456
4,707,629
701,249

4,178
112,286
37,917
154,383

8,896
128,526
43,767
181,190

171,248
33,87970,2499,022
284,399
829,906

126,063
26,87362,231
8,084
223,253
659,186

12,995–8,400
21,39545,14917–
45,1671,253
1,253
850,048
358,096
21,615
379,712470,33650
470,286472
472
703,881314,545384,881
699,427
4,454
453
4,001

(Consolidated Statements of Comprehensive Income)(Thousands of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests-7-

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

470,3364,454(352,075)(96,731)(5,978)(454,785)
15,551

653,193(245,482)(9,805)397,905
402,360

16,112404,390(561)(2,029)(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2020
(Thousands of yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

Retained earnings

3,158,962

6,404,905

11,085,205

32,69632,696

Total shareholders’equityTreasury shares(60,905)

20,588,168

Changes during period
Issuance of new shares

65,392

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesChange in scope of
consolidation
Net changes in items otherthan shareholders’ equity(427,471)(427,471)

470,286

470,286
(940)

(940)

(18,620)(18,620)

Total changes during period

32,69632,69624,195(940)

88,646

Balance at end of period

3,191,658

6,437,601

11,109,401(61,846)

20,676,814

Non-controllinginterests

Total net assets

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale securities

Foreign currencytranslation
adjustment

1,431,136

215,040

Remeasurementsof defined
benefit plans
8,365

Total
accumulated
othercomprehensive
income1,654,543

42,57622,285,287

Changes during period
Issuance of new shares

65,392

Dividends of surplus(427,471)

Profit attributable toowners of parent
Purchase of treasury
sharesChange in scope of
consolidation
Net changes in items otherthan shareholders’ equity

470,286(940)(18,620)(352,075)(96,180)(5,978)(454,234)

281(453,952)

Total changes during period(352,075)(96,180)(5,978)(454,234)

281(365,306)

Balance at end of period

1,079,061

118,860

2,387

1,200,309

42,857

21,919,981-8-

Fiscal year ended March 31, 2021
(Thousands of yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

Retained earnings

3,191,658

6,437,601

11,109,401

30,21030,210Treasury shares(61,846)

Total shareholders’equity20,676,814

Changes during period
Issuance of new shares

60,420

Dividends of surplus(343,721)(343,721)

4,001

4,001

Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in items otherthan shareholders’ equity

(780)

(780)

Total changes during period

30,21030,210(339,720)(780)(280,081)

Balance at end of period

3,221,868

6,467,811

10,769,680(62,626)

20,396,733

Non-controllinginterests

Total net assets

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale securities

Foreign currencytranslation
adjustment

1,079,061

118,860

Remeasurementsof defined
benefit plans
2,387

Total
accumulated
othercomprehensive
income1,200,309

42,857

21,919,981

Changes during period
Issuance of new shares

60,420

Dividends of surplus(343,721)

Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in items otherthan shareholders’ equity

4,001
(780)
653,193(243,097)(9,805)400,290(1,931)

398,359

Total changes during period

653,193(243,097)(9,805)400,290(1,931)

118,278

Balance at end of period

1,732,254(124,237)(7,417)1,600,599

40,92522,038,259-9-

(4) Consolidated Statements of Cash Flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for productwarranties
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Loss (gain) on sale of non-current assets
Loss (gain) on disposal of non-current assets
Loss (gain) on sale of investment securities
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
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Loan advances
Proceeds from collection of loans receivable
Net cash provided by (used in) investing activities- 10 -

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

850,048587,649

703,881
637,898(33,094)

195(3,672)(10,976)

20,926(116,465)
171,248(12,995)
1,253–
1,639,973
259,973(227,122)
208,335(30,895)(179,091)
163,565
3,299,636
106,068(168,985)
211,4413,448,160

13,693(137,423)
126,063(45,149)472(17)(1,717,379)
2,456,923(32,675)
154,083(143,411)
60,077(177,843)
1,888,413
91,937(114,299)(340,196)
1,525,854(364)–(776,535)
46,027(123,255)
27,500(400)
1,149(825,877)

(1)
5,933
(546,800)
65,634(32,642)22(3,150)2,103(508,901)

(Thousands of yen)

Cash 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
Increase (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
Cash and cash equivalents at end of period- 11 -

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

324,874
430,450(452,956)(940)(427,471)(100,601)(226,644)

28,78240,000(408,943)(780)(343,721)(127,842)(812,505)(3,978)(40,327)

2,391,659
4,210,496

164,119
6,682,986

80,830–6,682,986

6,847,106

IV. ProductsContact us

SAKAI HEAVY INDUSTRIES, LTD.
International Business Headquarters
TELEPHONE: +81-3-3431-9971
FACSIMILE: +81-3-3436-6212
URL: https://www.sakainet.co.jp/en/

VIBRATORY PNEUMATIC TIRED ROLLER

GW750-2 9,040Kg (19,930Lb)

VIBRATORY SINGLE DRUM ROLLER

VIBRATORY SINGLE DRUM ROLLER

SV900DV 20,030Kg (44,460Lb)

SV521D 10,325Kg (22,765Lb)

VIBRATORY DOUBLE DRUM ROLLER

VIBRATORY DOUBLE DRUM ROLLER

SW652H-1K/SW654H 8,080Kg (17,815Lb)

TW504 3,620Kg (7,980Lb)

ROAD RECLAIMER

ROAD PLANER

PM550-2 22,580Kg (49,780Lb)

ER552F-2 28,170Kg (62,105Lb)- 12 -

V. Corporate Data
Basic Information (as of March 31, 2021)
Trade name:
Established:
Listed market:

SAKAI HEAVY INDUSTRIES, LTD.
May 7, 1949
The First Section of Tokyo Stock Exchange(Securities Code: 6358)
September 1964
From April 1 to March 31 of the following year
3,221 million yen
602 persons (Consolidated)
Hamamatsu-cho Seiwa Bldg., 1-4-8 Shibadaimon,
Minato-ku, Tokyo 105-0012+81-3-3434-3401

Listed:Business year:
Share capital:
Number of employees:
Head office:Telephone:Business Office (as of July 1, 2021)
JAPAN

SapporoSendaiTokyo
NagoyaOsaka
Hiroshima
Fukuoka

Subsidiaries:

SAKAI AMERICA, INC.
P.T. SAKAI INDONESIA
P.T. SAKAI ROAD MACHINERY INDONESIA
P.T. SAKAI SALES AND SERVICES ASIA
SAKAI HEAVY INDUSTRIES (SHANGHAI), LTD.
SAKAI KIKOH CORPORATIONTOKYO FUJI CO., LTD.
COMODO CO., LTD.
SAKAI ENGINEERING CO., LTD.

Directors (as of July 1, 2021)
President and Representing Director
Director and Executive Vice President
Director*
Outside Director*
Outside Director*

Ichiro Sakai
Ryosuke Watanabe
Kazushi Kiyomiya
Ryuichi Tokunaga
Makoto Kikkawa

Executive Officers (as of July 1, 2021)
Senior Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer

Kenichi Mizuuchi
Yukinori Tsukimoto
Toshihiko Akimoto
Masahiro Tokita
Takao Yoshikawa
Yasunori Azumi
Fumio Yamanaka
Hiroshi Baba

* Audit and Supervisory Committee Member- 13 -

Stock Status (as of March 31, 2021)
Total number of shares authorized:
Total number of shares issued:
Number of shareholders:

14,990,000 shares
4,338,417 shares
3,704

Major shareholders (Top 10)

231
228

Share-holding ratio(excluding treasury
shares) (%)
5.35
5.30

209

4.86

209

4.86

150

3.49

148

3.44

128

2.98

127

2.94

125

2.91

82

1.92

Number of shares held(Thousands)

Shareholder name
The Master Trust Bank of Japan, Ltd. (Trust Account)
Custody Bank of Japan, Ltd. (Trust Account)
Mizuho Bank, Ltd.
(Standing proxy: Custody Bank of Japan, Ltd.)MUFG Bank, Ltd.
Nippon Life Insurance Company(Standing proxy: The Master Trust Bank of Japan, Ltd.)The Dai-ichi Life Insurance Company, Limited(Standing proxy: Custody Bank of Japan, Ltd.)
Ichiro Sakai
CREDIT SUISSE AG, DUBLIN BRANCH PRIMECLIENT ASSET EQUITY ACCOUNT(Standing proxy: Credit Suisse Japan)
MLI FOR CLIENT GENERAL OMNI NONCOLLATERAL NON TREATY-PB(Standing proxy: BofA Securities Japan Co., Ltd.)DFA INTL SMALL CAP VALUE PORTFOLIO(Standing proxy: Citibank, N.A., Tokyo Branch)* Annual Select is an English-language disclosure format developed by ZAIHON, INC. to increase the level of convenience of investors outside Japan based on Japanese-language
statutory disclosure material, timely disclosure material prescribed by securities exchanges and voluntarily disclosed IR material. Annual Select is a registered trademark of
ZAIHON, INC. Reproduction or copying without prior permission is prohibited.
* While every best effort has been made to provide a translation meeting the quality standards required of professionals, the Company does not guarantee it is 100% accurate.
Therefore, please verify the original Japanese text for any final judgments made based on this information.

- 14 -