HISAKA WORKS, LTD.

Securities code 6247

Hisaka Newsletter
The 94th Fiscal Year
April 1, 2022 to March 31, 2023

TOPMESSOur new Mid-Term

AGE

Business Plan is underway.
We will aim to further
expand our business andsolve social issues.
Yoshikazu Takeshita
President and CEO, June 2023

To our shareholders,

BUSINESS R
EPORTOur 94th ﬁscal year has ended, and we would like to provide an

to factors such as the extensive backlog of orders received.

overview report on this period.

In terms of proﬁt, factors including the improved proﬁtability due toDuring the current consolidated ﬁscal year, the global economy

increased sales in the Process Engineering Segment led to an

seems to have decelerated further, due to factors such as steep

operating proﬁt of 1,912 million yen (an increase of 5.1% comparedrises in energy and raw material costs caused by geopolitical tension.

with the previous ﬁscal year), with an ordinary proﬁt of 2,392 million

While the Japanese economy is seeing a trend toward gradual improve-yen (an increase of 5.4% compared with the previous ﬁscal year).

ment, the future remains unclear due to increasing cost of living

Although we recorded a gain on the sale of investment securities due

caused by surging prices of resources and depreciation of the yen.

to a reduction of cross-held shares as extraordinary income as in theIn this environment, orders received by the Hisaka Group wereprevious ﬁscal year, the net proﬁt for the current ﬁscal year attribut-

34,621 million yen (a decrease of 0.2% compared with the previousable to shareholders of the parent company was 2,040 million yen (aﬁscal year). While the Heat Exchanger Segment and Valve Segment

decrease of 0.9% compared with the previous ﬁscal year) due to an

performed strongly, the Process Engineering Segment saw custom-increase in other extraordinary losses, tax expenses, and the like.

ers reviewing or delaying capital investment. Net sales were 34,074

We would like to ask all of our valued shareholders for their continued

million yen (an increase of 13.3% compared with previous ﬁscal

cooperation and support.

year), with an increase in revenue across all business segments due

Results by Segment

39％Heat Exchanger Segment

The Heat Exchanger Segment manufactures and sells plate heat exchangers that performthe heating and cooling of ﬂuids, which are essential in various industries.
Orders received reached 14,059 million yen (an increase of 10.1% compared with theprevious ﬁscal year). This increase is due to factors such as an increase in demand formaintenance-related work both in Japan and overseas as well as strong performance of small
and medium-size general-purpose products used in the semiconductor manufacturing
process, air conditioning, water heaters, and more.
Net sales were 13,418 million yen (an increase of 14.8% compared with the previous ﬁscalyear). Like orders received, revenue increased due to strong performance of small andmedium-size general-purpose products and maintenance projects, as well as an increase inproducts for ships which have been on a trend toward recovery in orders since last ﬁscal year.
Segment proﬁt was 814 million yen (a decrease of 32.2% compared with the previous ﬁscalyear) due to factors including the recording of a reserve for product warranties and bad debt
as well as costs to install a new core system.

47 ％15,00012,76914,05913,418

11,691

10,000

5,000

0

1,201

814

Period ended
March 2022

Period ended
March 2023

Process Engineering Segment

The Process Engineering Segment manufactures and sells cooking disinfecting devices
used for retort pouch foods and the like, plus sterilizing and culturing devices for pharmaceuticals, and dyeing and ﬁnishing devices for ﬁber products.
Orders received reached 15,536 million yen (a decrease of 12.5% compared with theprevious ﬁscal year). In addition to some customers reviewing or delaying capital investment for food manufacturing equipment due to steep rises in raw material and construction
material costs, there was also a reactionary decline in pharmaceutical equipment anddyeing and ﬁnishing devices due to large-lot orders received the previous ﬁscal year,
causing this decrease.
Net sales were 15,869 million yen (an increase of 14.5% compared with the previousﬁscal year). In addition to an increase, primarily overseas, for dyeing and ﬁnishing devices,large-lot projects in pharmaceutical equipment for sterilizing and culturing devices andother factors led to an increase in revenue.
Segment proﬁt increased to 833 million yen (an increase of 136.3% compared with theprevious ﬁscal year) due to an increase in net sales.

14 ％■ Orders received ■ Net sales■ Segment proﬁt
Unit: Million yen■ Orders received ■ Net sales■ Segment proﬁt
Unit: Million yen
20,00017,74815,00013,853

15,536 15,869

10,000
5,000
0352

833

Period ended
March 2022

Period ended
March 2023

Valve Segment

The Valve Segment manufactures and sells ball valves and the like used in the control ofvarious ﬂuids.
Orders received reached 4,934 million yen (an increase of 21.0% compared with theprevious ﬁscal year). This increase was caused by factors such as orders received foroverseas large-lot projects for chemicals as well as strong performance in inquiries causedby more active movements to acquire materials.
Net sales were 4,696 million yen (an increase of 5.5% compared with the previous ﬁscalyear). This increase was caused by factors such as our delivery of overseas large-lot
projects as well as a steady ﬂow of orders received for products with short delivery times.
Segment proﬁt increased to 339 million yen (an increase of 5.6% compared with theprevious ﬁscal year) due to an increase in net sales.

■ Orders received ■ Net sales■ Segment proﬁt
Unit: Million yen
5,000
4,000

4,077

4,934

4,451

4,696

3,000
2,000
1,000
0321

339

Period ended
March 2022

Period ended
March 2023

Consolidated Financial Highlights
Summary ofConsolidated Balance Sheets
Unit: Million yen

Summary ofConsolidated Proﬁt and Loss Statement
Cost of sales
23,196

Total Total liabilities
assets and net assets
70,977 70,977

Total Total liabilities
assets and net assets
67,302 67,302
Current liabilities
10,442
Non-current
liabilities
2,481

Current
assets35,404Current
assets35,274

Net sales
30,085

Non-current
liabilities
2,767

Gross proﬁt
6,889

Non-current
assets35,703

Non-current
assets31,897Extraordinary
income495
Extraordinary
losses6
Net proﬁt for thecurrent period before
income taxes andother adjustments
2,758

Ordinary
Operating proﬁt
2,270
proﬁt
1,819

As of March 31, 2023

Cost of sales
26,364
Net sales
34,074

Selling, generaland administrative
expenses
5,798

Gross proﬁt
7,710

Extraordinary
income555
Extraordinary
losses107
Net proﬁt for thecurrent period before
income taxes andother adjustments
2,840

Non-operating
income517
Non-operating
expenses37

Non-operating
income486
Non-operating
expenses
35

Net assets
56,302

Net assets
54,378

As of March 31, 2022

Current liabilities
11,907

Selling, generaland administrative
expenses
5,069

Unit: Million yen

Ordinary
Operating proﬁt
2,392
proﬁt
1,912

Net proﬁt for the current
period attributable toshareholders ofparent company
2,058

Period ended March 2022

Net proﬁt for the current
period attributable toshareholders ofparent company
2,040

Period ended March 2023

TopicsG-23

Our new Mid-Term Business Plan “G-23” is underway.
We aim not only to expand our business by opening and restructuring plants,
but also to contribute to solutions for social problems.

1. R
 eflecting on Our Previous Mid-Term Business Plan “G-20”(fiscal year ending March 2021 to fiscal year ending March 2023)“G-20” began with the start of the COVID-19 pandemic. Facing this difficult
business environment, over these three years, we not only worked to restore ourfinancial results, which had suffered a significant decline, but we also moved
forward with groundwork preparation aimed at expanding our business, such as
preparing to open a new plant and deciding to integrate our group companies.

2. Outline of Our New Mid-Term Business Plan “G-23”(fiscal year ending March 2024 to fiscal year ending March 2026)① Vision and Slogan

Vision hallenge ourselves to expand business and become aC
dynamic group of employees

Slogan oward the realization of a sustainable society, let's move
Tforward with hopeful technology③ Efforts for Solving Social Issues[Heat Exchanger Segment]
We will provide heat solutions aimed at CO2 recovery, hydrogen manufacturing,biomass electricity generation, and the like in order to contribute to theachievement of a carbon neutral society.
[Process Engineering Segment]
We will enhance our core technology and engineering capability as we work to
reduce the burden on the environment by saving energy, saving manpower, andthe like.
[Valve Segment]
Working to contribute to solutions for social issues, we will engage in threemarkets in particular (secondary batteries, industrial gas, and environmental
applications and water treatment) as priority markets.
④ Return to Shareholders②L arge Investments (Opening of New Plant and Restructuring of an Existing Plant)
The “Ikoma Plant”, which has been undergoing construction, will start operationin October 2023. As the new plant for the Process Engineering Segment, it willserve in the relocation from the existing plant (Konoike Plant) as well as inimproving production capability.
Accordingly, we will start restructuring the Konoike Plant in order to improve theproduction system for the Heat Exchanger Segment and Valve Segment.

In order to expand our allocation of profits to our shareholders, we raised ourdividend on equity ratio (DOE) from 1.5% or more to 2.0% or more. As a result,dividends for the fiscal year ended March 2024 will be 40 yen annually(tentatively).

Ikoma Plant (Conceptual Drawing)

Konoike Plant
Unit: Million yen

Final fiscal year of G-17
Period ended March 2020
(Results)

Final fiscal year of G-20
Period ended March 2023
(Results) A

Final fiscal year of G-23
Period ended March 2026
(Targets) B

Ratio of change(B-A)/AOrders received

31,952

34,621

41,00018.4%

Net sales

32,511

34,07440,00017.4%

Operating profit

2,274

1,912

3,600

88.3%

Operating profit ratio

7.0%

5.6%

9.0%

+ 3.4pt

Ordinary profit

2,573

2,392

3,800

58.9%

Net profit for the current period attributable
to shareholders of parent company

2,080

2,040

2,600

27.5%

ROE

4.1%

3.7%

4.5%

+ 0.8pt

For details about the Mid-Term Business Plan, please see the “Notice Regarding the Outline of the New Mid-Term Business Plan “G-23ʼʼʼ
listed on our website. (This notice is only available in Japanese.)Consolidated Results
Unit: Million yenCategory

Fiscal year

90th fiscal year

(Period ended March 2019)91st fiscal year

(Period ended March 2020)

92nd fiscal year

(Period ended March 2021)

93rd fiscal year

94th fiscal year

(Period ended March 2022) (Period ended March 2023)

Orders received

30,66931,952

28,16534,68534,621

Net sales

30,93932,511

28,43730,08534,074

Operating profit

2,040

2,274

1,409

1,819

1,912Ordinary profit
Net profit for the current period attributable
to shareholders of parent company
Net profit for the current period per share(in yen)
Gross assets

2,337

2,573

1,765

2,270

2,392

1,596

2,080

1,212

2,058

2,040

53.48

73.39

43.14

73.19

72.45

63,04160,566

65,20067,30270,977

Net assets

51,691

50,83153,33554,37856,302

1,731.40

1,804.13

1,893.12

1,927.39

1,992.64

Net assets per share (in yen)

20

20

30

30

40

Dividend payout ratio (%)

37.4

27.3

69.5

41.0

55.2

Dividend on equity ratio (DOE) (%)

1.2

1.1

1.6

1.6

2.0

Annual dividend per share (in yen)Company Proﬁle (Current as of March 31, 2023)

Directors (Current as of June 29, 2023)

Company name:HISAKA WORKS, LTD.
Established:
May 1942
Capital:4.15 billion yen
Number of employees: Consolidated: 940, Non-consolidated: 670
Head oﬃce address:
2-12-7 Sonezaki, Kita-ku, Osaka City
Branch oﬃces and plant: Tokyo Branch Oﬃce (Chuo-ku, Tokyo)
Nagoya Branch Oﬃce (Nagoya City, Aichi)
Kyushu Branch Oﬃce (Fukuoka City, Fukuoka)
Kitakyushu Branch Oﬃce (Kitakyushu City, Fukuoka)
Konoike Plant (Higashiosaka City, Osaka)
Ome Plant (Ome City, Tokyo)
Major subsidiaries:
MICROZERO CO., LTD. (Tachikawa City, Tokyo)
ASAHI INDUSTRY CO., LTD. (Ome City, Tokyo)
KOMATSUGAWA CHEMICAL ENGINEERING CO., LTD. (Chiyoda-ku, Tokyo)
HISAKAWORKS S.E.A. SDN. BHD. (Malaysia)
HISAKA WORKS (CHINA) CO., LTD. (China)

Director, President and Chief Executive Oﬃcer

Yoshikazu Takeshita

Director, Managing Executive Oﬃcer

Koji Ohta

Director, Managing Executive OﬃcerToshiya Usami

Director, Managing Executive Oﬃcer

Toshiyuki Funakoshi

Director, Managing Executive Oﬃcer

Akihito Adachi

Director (Outside)

Koji Mizumoto

Director (Outside)

Yuko Tsuno

Director, Audit and Supervisory Committee
Member (Full-time)

Naoto Hattori

Director, Audit and Supervisory Committee
Member (Outside)

Akira Nakai

Director, Audit and Supervisory Committee
Member (Outside)

Noriyuki Fujita

Share Status (Current as of March 31, 2023)
Total number of authorized shares: 129,020,000
32,732,800
Total number of shares issued:
7,805
Number of shareholders:Shareholding ratio by owner (%)
Treasuryshares
13.91

Financialinstitutions
21.77

1.05

Individuals / Other

Financial instruments
business operators

25.51

12.20

Foreign corporations,etc.

25.56

Other corporations

Shareholders’ MemoBusiness year
Record date for year-end dividends
Record date for interim dividends
Annual General Meeting of Shareholders
Keeper of shareholder register and accountmanagement institution for special accountContact information
Listed stock exchange

Public notice method

Major shareholders (Top 10)
Number of Shareholding
shares held
ratio

Shareholder name
The Master Trust Bank of Japan, Ltd. (Trust Account)Custody Bank of Japan, Ltd. (Trust Account)
NIPPON STEEL Stainless Steel Corporation
Nippon Life Insurance Company
MUFG Bank, Ltd.
Inaba Denki Sangyo Co., Ltd.
Hisaka Works Business Partners Shareholding Association
TAKUMA Co., Ltd.
STATE STREET BANK AND TRUST COMPANY 505103
Hisaka Works Employees’ Shareholding Association

2,306,300
1,722,700
1,400,000
960,770912,640
910,802676,586
642,000
624,238
575,316

8.18%
6.11%
4.96%
3.40%
3.23%
3.23%
2.40%
2.27%
2.21%
2.04%

(Note) Treasury shares (4,551,198 shares) are excluded.

April 1 to March 31 of the following year
March 31(Notice)

1. Changes to a shareholder’s address, requests for purchases,
speciﬁcations of a transfer account for dividends, and othersuch procedures are, in principle, handled at the accountSeptember 30
management institution (securities ﬁrm or the like) whereJune every year
you have opened your account. Please inquire with thesecurities ﬁrm or institution where your account is set up.
Mitsubishi UFJ Trust and Banking Corporation
Please be aware that the keeper of the shareholder register(Mitsubishi UFJ Trust and Banking Corporation) does notMitsubishi UFJ Trust and Banking Corporation,
handle such inquiries.
Osaka Securities Agency Division
2. For procedures related to shares registered in a special
3-6-3 Fushimimachi, Chuo-ku, Osaka, 541-8502
account, Mitsubishi UFJ Trust and Banking Corporation is
TEL: 0120-094-777 (Toll-free)
the account management institution. Please inquire with theTokyo Stock Exchange Prime Market
account management institution for special accounts listed
Electronic notices
to the left (Mitsubishi UFJ Trust and Banking Corporation).
Public notice URL: https://www.hisaka.co.jp/The Mitsubishi UFJ Trust and Banking Corporation main andHowever, in the event of an accident or other unavoidable
branch oﬃces also accept messages.
event that precludes electronic public notice, notices will 3. For unreceived dividends, payments can be made at Mitsubishi
be published in the Nikkei newspaper.
UFJ Trust and Banking Corporation main and branch oﬃces.