HISAKA WORKS, LTD.

Hisaka Newsletter

Securities code 6247

The 93rd Fiscal Year Interim
April 1 to September 30, 2021

BUSINESSRE
To our shareholders,

Welded Plate Heat Exchanger

PORT

The ﬁrst half of our 93rd ﬁscal year has ended, and we would like to provide an overview report on this period.
Due to the widespread use of vaccines for COVID-19, the global economy saw gradual recovery during the ﬁrst
half of this ﬁscal year. In the Japanese economy, although personal consumption has remained sluggish,
production activities in the manufacturing industry are back on track for recovery.
However, with soaring resource prices, tight supply and demand for materials, and concerns about the renewed
spread of COVID-19, the future of the economy remains unclear.
In this economic environment, orders received by the Hisaka Group were 17,307 million yen (a 21.4% increase
compared with the same period of the previous ﬁscal year) due to strong performance in the Heat Exchanger
Segment for semiconductor use and the like, as well as receiving large-lot orders for pharmaceutical equipment
and dyeing and ﬁnishing devices in the Process Engineering Segment. Due to an order backlog of large-lot
projects in the Valve Segment and the like, net sales were 13,961 million yen (an increase of 0.5% comparedwith the same period of the previous ﬁscal year).
In terms of proﬁt, factors including the worsened proﬁtability in the Process Engineering Segment and Valve
Segment led to an operating proﬁt of 701 million yen (a decrease of 19.1% compared with the same period of
the previous ﬁscal year), with an ordinary proﬁt of 937 million yen (a decrease of 10.8% compared with thesame period of the previous ﬁscal year). The net proﬁt for the current quarter attributable to shareholders of theparent company was 689 million yen (an increase of 0.5% compared with the same period of the previous ﬁscalyear), since we had recorded a gain on the sale of investment securities and the like as extraordinary income.
We would like to ask all of our valued shareholders for their continued cooperation and support.

Yoshikazu Takeshita

President and CEO,December 2021

Results by Segment

40％

Heat Exchanger Segment

The Heat Exchanger Segment manufactures and sells plate heat exchangers that
perform the heating and cooling of ﬂuids, which are essential in various industries.
Orders received increased by 20.3% from the same period of the previous ﬁscal year

■ Orders received ■ Net sales■ Segment proﬁt

to reach 6,104 million yen, mainly due to strong performance for semiconductors,industrial machinery, and new shipbuilding projects, as well as orders for

Unit: Million yen

7,500

maintenance-related work for plants.
Although performance was strong for small and medium-size general-purpose products

5,000

5,074

6,1045,619

5,551

such as for semiconductors, net sales decreased by 1.2% from the same period of theprevious ﬁscal year to 5,551 million yen, mainly due to sluggish sales of products forships caused by the slump in orders in the previous ﬁscal year.
Segment proﬁt increased 15.5% from the same period of the previous ﬁscal year toreach 499 million yen due to an improved sales mix.

43 ％

2,500

0499

432

Sept. 2020

Sept. 2021

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■ Orders received ■ Net sales■ Segment proﬁt

for pharmaceuticals, and dyeing and ﬁnishing devices for ﬁber products.
Orders received increased by 28.1% from the same period of the previous ﬁscal year
to reach 9,153 million yen due to large-lot project orders received for pharmaceuticalequipment and dyeing and ﬁnishing devices.
While there were plant projects and large-lot projects for food manufacturing
equipment, net sales decreased by 3.9% from the same period of the previous ﬁscal
year to 6,006 million yen, mainly due to changes in delivery dates for somepharmaceutical equipment due to delays in plant construction, and sluggish sales ofdyeing and ﬁnishing devices caused by the slump in orders in the previous ﬁscal year.

Unit: Million yen

10,000
7,500

9,153
7,145

6,248

6,006

5,000
2,500
0

Segment proﬁt decreased by 77.4% from the same period of the previous ﬁscal year

63279

Sept. 2020

Sept. 2021

to 63 million yen, mainly due to the prolonged duration and increased cost of projects.

17 ％Valve Segment

The Valve Segment manufactures and sells ball valves and the like used in the control■ Orders received ■ Net sales■ Segment proﬁtof various ﬂuids.
Orders received increased by 0.9% from the same period of the previous ﬁscal year toreach 2,002 million yen, mainly due to large-lot project orders received for steel as well
as strong performance for secondary batteries.

Unit: Million yen

2,500
2,000

Net sales increased by 19.6% from the same period of the previous ﬁscal year to1,500

reach 2,356 million yen, mainly due to large-lot projects for chemicals.

1,000

Segment income decreased by 12.0% from the same period of the previous ﬁscal year
to 142 million yen, mainly due to a decrease in highly proﬁtable projects.

50002,356
2,002

1,983 1,969

161

Sept. 2020142

Sept. 2021

Consolidated Financial Highlights
Summary ofConsolidated Balance Sheets
Unit: Million yen

Total Total liabilities
assets and net assets
66,16866,168

Total Total liabilities
assets and net assets
65,20065,200Current liabilities
9,490

Current liabilities
9,306
Non-current
liabilities
2,558

Current
assets32,597

Non-current
assets32,603

Net assets
53,335Current
assets33,106

Non-current
assets
33,062

Summary ofConsolidated Proﬁt and Loss Statement
Cost of sales
10,626

Selling, generaland administrative
expenses
2,395

Net sales
13,888Non-current
liabilities
2,781

Gross proﬁt
3,262

Net assets
53,897

Non-operating
income220
Non-operating
expenses36

Operating
proﬁt
866

As of March 31,
2021

As of September 30,
2021

Extraordinary
income0
Extraordinary
losses84
Net proﬁt for thequarter before
income taxes
and otheradjustments
966

Cost of sales
10,795

Unit: Million yen

Selling, generaland administrative
expenses
2,464

Net sales
13,961

Ordinary
proﬁt Net proﬁt for the quarter
1,050 attributable to shareholdersof parent company
686

Period ended
September 2020

Gross proﬁt
3,165

Non-operating
income253
Non-operating
expenses17

Operating
proﬁt
701

Extraordinary
income62
Extraordinary
losses1
Net proﬁt for thequarter before
income taxes
and otheradjustments
998

Ordinary
Net proﬁt for the quarter
proﬁt
attributable to shareholders
937
of parent company
689

Period endedSeptember 2021

TopicsPioneering the Marketwith a New Heat Exchanger Lineup ormed a Capital Alliance with a Heat Exchanger
FManufacturer in France
In June 2021, we entered into a capital alliance to acquire a partial
stake (15%) in KAPP SAS (hereinafter, “KAPP”), a French company
that manufactures and sells welded plate heat exchangers.
We have been collaborating with KAPP since 2017, when we signed
an Agency Agreement for their welded heat exchangers. With thiscapital alliance, we will further strengthen our relationship with KAPP,
including licensing agreements, aiming to ensure a stable supply ofproducts and to expand sales in the Asian market.

Hisaka Athletes Win Prizes atthe Tokyo Paralympic Games
Supporting Sports for People with Disabilities
Since October 2015, in order to help realize a society of coexistence
through the support of sports for people with disabilities, we have been
hiring persons with disabilities who are active athletes to work as
valuable assets, and we provide support for their competition activities.

Tokyo Paralympic Games Results

Pioneering the Market with Welded Plate Heat Exchangers
Welded plate heat exchangers are heat exchangers in which theplates, which are the main components of the plate heat exchanger,
are welded together. They have superior pressure resistance, heatresistance, and chemical resistance compared to the gasket-typeplate heat exchangers that we mainly handle.
In the heat exchanger market, heat exchangers called shell-and-tube
heat exchangers are often used for heat exchange that requirespressure resistance, heat resistance, or chemical resistance, butshell-and-tube heat exchangers pose issues in that they are larger
and have less efficient heat exchange
than plate heat exchangers.
However, welded plate heat exchangers
are expected to replace the shell-andtube heat exchangers that have been
conventionally used due to their highheat exchange efficiency, light weight,and compact size.
By adding KAPPʼs welded plate heatexchangers to our lineup, we will be able
to meet these demands and propose
solutions that meet the needs of ourWelded Plate Heat Exchanger
customers.

Tomotaro Nakamura(Para Swimming)

Anri Sakurai(Wheelchair Fencing)

Mixed 4 x 50m Freestyle Relay(Motor impairment)

9th placequalifier

Womenʼs Individual Épée(Category B)

6th placefinishMenʼs 100m Breaststroke(Motor impairment SB6)

8th placefinishWomenʼs Individual Foil(Category B)

11th place

Hisaka Introduced onthe TV Program, “Unknown Gulliver”
Introduced Our Heat Exchangers and Food Sterilization
Equipment
In September 2021, Hisaka was introduced in the TV Tokyo series,“Unknown Gulliver - Excellent Company File.”
The program is a documentary program that focuses on outstanding,world-class Japanese companies and takes a close look at their appeal.
The broadcast has already finished, but you can still watch it on TV
Tokyo Business On-Demand (paid service). We hope you check it out.

Consolidated Results
Category

91st
92nd
93rd
fiscal year interim fiscal year interim fiscal year interim

Fiscal year

Reference Period ended   Period ended   Period ended  September 2019   September 2020   September 2021 Orders received
Net sales
Operating profit
Ordinary profit
Net profit for the quarter(current period) attributable toshareholders of parent company
Net profit for the quarter(current period) per share (in yen)
Gross assetsNet assets
Net assets per share (in yen)
Annual dividend per share (in yen)
Dividend payout ratio (%)
Dividend on equity ratio (DOE) (%)

Unit: Million yen

91stfiscal year

92nd
fiscal year

93rd
fiscal year Period ended  March 2020  Period ended  March 2021  Period ended  March 2022 

16,001
16,222
1,106
1,279

14,254
13,888866
1,050

17,307
13,961
701
937

31,95232,511
2,274
2,573

28,16528,437
1,409
1,765

31,50031,000
1,700
1,900

1,137

686

689

2,080

1,212

1,320

39.7824.44

24.54

73.39

43.14

46.97

61,56550,7601,801.67―――

62,00952,159
1,851.58―――

66,16853,8971,910.58―――

60,56650,831
1,804.13
20.00
27.3
1.1

65,20053,335
1,893.12
30.00
69.5
1.6

―
―
―
30.00
63.9
1.6

Company Proﬁle (Current as of Thursday, September 30, 2021)
Company name:HISAKA WORKS, LTD.
Directors:
Established:
May 1942
Director, President and Chief Executive Oﬃcer
Capital:4.15 billion yen
Director, Managing Executive Oﬃcer
Number of employees:
Consolidated: 925, Non-consolidated: 646
Director, Managing Executive Oﬃcer
Head oﬃce address:
2-12-7 Sonezaki, Kita-ku, Osaka City
Director, Managing Executive Oﬃcer
Branch oﬃces and plants: Tokyo Branch Oﬃce (Chuo-ku, Tokyo)
Director (Outside)
Nagoya Branch Oﬃce (Nagoya City, Aichi)
Director (Outside)
Kyushu Branch Oﬃce (Fukuoka City, Fukuoka)
Director, Audit and Supervisory Committee Member (Full-time)
Kitakyushu Branch Oﬃce (Kitakyushu City, Fukuoka)
Director (Outside), Audit and Supervisory Committee Member
Konoike Plant (Higashiosaka City, Osaka)
Director (Outside), Audit and Supervisory Committee Member
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)

Yoshikazu Takeshita
Koji Ohta
Tadashi Iizuka
Toshiyuki Funakoshi
Koji Mizumoto
Yuko Tsuno
Mitsugu Nakamichi
Akira Nakai
Noriyuki Fujita

Share Status (as of September 30, 2021)
Total number of authorized shares: 129,020,000
Total number of shares issued:
32,732,800
Number of shareholders:
3,820
Shareholding ratio by owner (%):
Treasury shares
14.02

Individuals / Other
20.27

11.30

Foreign corporations, etc.

Financialinstitutions
27.17

0.96

Financial instruments
business operators

26.28

Other corporations

Major shareholders (Top 10):
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.
TAKUMA Co., Ltd.
STATE STREET BANK AND TRUST COMPANY 505103
Mizuho Bank, Ltd.
Hisaka Works Business Partners Shareholding Association

Number ofshares held

2,990,400
2,247,300
1,400,000
960,770912,640
910,802642,000
627,989
612,640
595,486

Shareholding
ratio

10.62%
7.98 %
4.97 %
3.41 %
3.24 %
3.23 %
2.28 %
2.23 %
2.17 %
2.11 %(Note) Treasury shares (4,590,567 shares) are excluded.

Shareholders’ MemoBusiness year
Record date for year-end dividends
Record date for interim dividends
Annual General Meeting of Shareholders

April 1 to March 31 of the following year
March 31
September 30
June every year

Keeper of shareholder register and accountmanagement institution for special account

Mitsubishi UFJ Trust and Banking Corporation

Contact information

Mitsubishi UFJ Trust and Banking Corporation,
Osaka Securities Agency Division
3-6-3 Fushimimachi, Chuo-ku, Osaka, 541-8502
TEL: 0120-094-777 (Toll-free)

Listed stock exchangeFirst section of the Tokyo Stock Exchange

Public notice method

Electronic notices
Public notice URL: https://www.hisaka.co.jp
However, in the event of an accident or otherunavoidable event that precludes electronic publicnotice, notices will be published in the Nikkei newspaper.

(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 accountmanagement institution (securities ﬁrm or the like) where
you have opened your account. Please inquire with thesecurities ﬁrm or institution where your account is set up.
Please be aware that the keeper of the shareholder register(Mitsubishi UFJ Trust and Banking Corporation) does nothandle such inquiries.
２．For procedures related to shares registered in a special
account, Mitsubishi UFJ Trust and Banking Corporation isthe account management institution. Please inquire with theaccount management institution for special accounts listed
to the left (Mitsubishi UFJ Trust and Banking Corporation).
The Mitsubishi UFJ Trust and Banking Corporation main andbranch oﬃces also accept messages.
３．For unreceived dividends, payments can be made at
Mitsubishi UFJ Trust and Banking Corporation main andbranch oﬃces.