Hisaka Newsletter

Securities code 6247

The 94th Fiscal Year Interim
April 1 to September 30, 2022

BUSINESSRE
To our shareholders,Brazed Plate Heat Exchanger (BHE)PORT

The ﬁrst half of our 94th ﬁscal year has ended, and we would like to provide an overview report on this period.
During this ﬁrst half of the ﬁscal year, the global economy seems to have decelerated further, due to factors
such steep rises in energy and raw material costs as well as a lacking supply of food.
While the Japanese economy is seeing a trend toward gradual improvement, the future remains unclear due toincreasing cost of living caused by surging prices of resources and depreciation of the yen.
In this economic environment, orders received by the Hisaka Group were 16,771 million yen (a decrease of
3.1% compared with the same period of the previous ﬁscal year). While the Heat Exchanger Segment and Valve
Segment performed strongly, the Process Engineering Segment saw customers reviewing or delaying capital
investment due to price increase of materials and the like, as well as prolonged deliveries of procured parts.
While the Valve Segment saw a decrease in revenue, due to the strong performance of the Heat Exchanger
Segment and the extensive backlog of orders received at the Process Engineering Segment, net sales reached15,555 million yen (an increase of 11.4% compared with the same period of the previous ﬁscal year).
In terms of proﬁt, the increase in net sales, reversal of allowances, and other such factors led to an operating
proﬁt of 1,021 million yen (an increase of 45.7% compared with the same period of the previous ﬁscal year),with an ordinary proﬁt of 1,375 million yen (an increase of 46.8% compared with the same period of theprevious ﬁscal year).
The net proﬁt for the current quarter attributable to shareholders of the parent company was 897 million yen(an increase of 30.1% compared with the same period of the previous ﬁscal year).
We would like to ask all of our valued shareholders for their continued cooperation and support.

Yoshikazu Takeshita

President and CEO,
December 2022

Results by Segment

42％

Heat Exchanger Segment

The Heat Exchanger Segment manufacturesand sells plate heat exchangers that performthe heating and cooling of ﬂuids, which areessential in various industries.
Orders received reached 7,006 million yen (anincrease of 14.8% compared with the same
period of the previous ﬁscal year).
Orders received increased due to strong
performance in small and medium-size general-purpose products for semiconductors and air
conditioners and in maintenance projects.
Net sales were 6,542 million yen (an increase

43 ％■ Orders received ■ Net sales■ Segment proﬁt

Unit: Million yen

7,500

7,006
6,104

6,542

5,551

5,000

2,500

0613499
Sept. 2021

Sept. 2022

Process Engineering Segment

The Process Engineering Segment manufacturesand sells cooking disinfecting devices used for
retort pouch foods and the like, plus sterilizing
and culturing devices for pharmaceuticals, anddyeing and ﬁnishing devices for ﬁber products.
Orders received reached 7,069 million yen (adecrease of 22.8% compared with the same
period of the previous ﬁscal year).
While orders were received for large-lot projects
for dyeing and ﬁnishing devices, some customers reviewed or delayed capital investment forfood manufacturing equipment, and there was areactionary decline in pharmaceutical equipment due to large-lot orders received the same15 ％of 17.8% compared with the same period of
the previous ﬁscal year).
Like orders received, revenue increased due tostrong performance of small and medium-size
general-purpose products and maintenanceprojects, as well as an increase in products forships which saw a recovery in orders received
last ﬁscal year.
Segment proﬁt increased to 613 million yen(an increase of 22.8% compared with the same
period of the previous ﬁscal year) due to anincrease in net sales.

period of the previous ﬁscal year, causing thisdecrease.
Net sales were 6,673 million yen (an increaseof 11.1% compared with the same period of
the previous ﬁscal year).
While there were some projects with delayeddeliveries, large-lot projects for dyeing andﬁnishing devices and other factors led to anincrease in revenue.
Segment proﬁt increased to 240 million yen(an increase of 280.9% compared with thesame period of the previous ﬁscal year) due toan increase in net sales as well as reversal of
allowances and other such factors.

■ Orders received ■ Net sales■ Segment proﬁt
10,000

Unit: Million yen

9,153

7,500

7,069

6,006

6,673

5,000
2,500
0240

63
Sept. 2021

Sept. 2022

Valve Segment

The Valve Segment manufactures and sells ballvalves and the like used in the control ofvarious ﬂuids.
Orders received reached 2,646 million yen (anincrease of 32.2% compared with the same
period of the previous ﬁscal year).
In addition to an increase in inquiries caused bymore active movements to acquire materials
due to insuﬃcient domestic inventories, there
were also orders received for overseas large-lot
projects for chemicals, causing an increase inorders received.

Net sales were 2,291 million yen (a decreaseof 2.8% compared with the same period of theprevious ﬁscal year).
While recent orders received remain steady, areactionary decline due to large-lot projects forchemicals in the same period of the previous
ﬁscal year caused a decrease in revenue.
Segment proﬁt increased to 231 million yen(an increase of 62.5% compared with the same
period of the previous ﬁscal year) due to adecrease in low-proﬁt projects.

■ Orders received ■ Net sales■ Segment proﬁt

Unit: Million yen

3,000

2,646

2,356
2,000

2,291

2,002

1,0000142
Sept. 2021

231
Sept. 2022

Consolidated Financial Highlights
Summary ofConsolidated Balance Sheets
Unit: Million yen

Toal Total liabilities
assets and net assets
68,632
68,632

Toal Total liabilities
assets and net assets
67,302
67,302Current liabilities
10,880Current liabilities
10,442
Non-current
liabilities
2,481

Current
assets35,404Current
assets36,278

As of March 31,2022

Cost of sales
10,795

Selling, generaland administrative
expenses
2,464

Net sales
13,961Gross proﬁt
3,165

Non-operating
income253
Non-operating
expenses17

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

Cost of sales
11,747
Net sales
15,555

Unit: Million yen

Selling, generaland administrative
expenses
2,785

Gross proﬁt
3,807

Non-operating
income372
Non-operating
expenses18

Extraordinary
income0Extraordinary
losses107
Net proﬁt for thequarter before
income taxes
and otheradjustments
1,269

Net assets
55,112

Net assets
54,378Non-current
assets31,897

Non-current
liabilities
2,638

Summary ofConsolidated Proﬁt and Loss Statement

Non-current
assets32,353As of September 30,
2022

Operating
proﬁt
701

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

Period ended
September 2021

Operating
proﬁt
1,021

Ordinary
proﬁt
1,375 Net proﬁt for the quarter
attributable to shareholdersof parent company

Period ended
September 2022

897

TopicsContributing to the Environment Througha Heat Exchanger for Heat Pumps

Using Cooking Disinfecting Devices
for Safe and Secure Food in Asia

Currently, efforts to reduce the amount of fossil fuels used areaccelerating around the world as we move toward achieving a carbon
neutral society.
Heat pumps, which do not use fuel but instead use the power ofelectricity to heat or cool objects, are gaining attention in fields suchas air conditioning and water heaters.
Particularly in Europe, it was conventionally common to use air
conditioning and water heaters that burn gas or the like. However, due
to higher environmental awareness as well as increasing fuel prices, thedemand for heat-pump air conditioning and water heaters has rapidlyincreased, and various air conditioning and water heater manufacturers
are actively investing in equipment to increase production.
At HISAKA, we manufacture and sell the “BRC,” a type of brazed plate
heat exchanger (BHE) originally developed by us as a heat exchanger
used in heat pumps.
The BRC has a characteristic internal structure that evenly
distributes the refrigerant to achieve a heat exchange efficiency thatis even higher than that of conventional BHEs.
This allowed for lighter, more compact heat exchangers, and alsoreduced the amount of refrigerant used.
This outstanding performance was recognized, and the product wasawarded the “ʻSuperʼ MONODZUKURI Parts Grand Award Environment/Resources/Energy Parts Award” held in 2018 by theNikkan Kogyo Shimbun.
Moving forward, we will not
only expand sales activities
for the BRC, but we will
also contribute to theachievement of a carbon
neutral society by providing
high-performance heatexchangers.

In China, the consumption of processed food products is rising inrecent years due to factors such as dietary changes and anincrease in working from home due to COVID-19.
HISAKA has also received orders for and delivered cooking
disinfecting devices for retort pouch foods as well as devices that
manufacture sterilized cooked rice (rice packs) to food productmanufacturers in China, Taiwan, and South Korea.
In the same way, demand forprocessed food products is growing
in Southeast Asia, and moving
forward, we will expand our sales
activities for our food cooking
disinfecting devices that have
expansive results within Japan.
Retort pouch foods cooking

BRC product external appearance (left) andinternal plates (right)

disinfecting device (RCS)

Establishing a Corporate Message
In June of this year, we established our corporate message, “withhopeful technology”.
HISAKA WORKS is an industrial machine manufacturer thatcontinues to refine our “technology”.
Behind that technology lies the "hopes" to support safety, comfort,and convenience, as we listen to the needs in various fields tocontribute to the development of society.
We set the message to express our stance of using “technology”
filled with “hopes” to continue to undertake challenges in an everchanging society and our stance to make leaps towards the future.
As we are required to contribute to a sustainable society, we will
use this message to expand ourPR activities in order to grow andgain empathy and support frommore people.

Consolidated Results
Category

92nd
93rd
94th
fiscal year interim fiscal year interim fiscal year interim

Fiscal year

Reference Period ended   Period ended   Period ended  September 2020   September 2021   September 2022 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 assets
Net assets
Net assets per share (in yen)
Annual dividend per share (in yen)
Dividend payout ratio (%)
Dividend on equity ratio (DOE) (%)

Unit: Million yen

92ndfiscal year

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

34,68530,0851,819
2,270

 Period ended  March 2023 

14,254
13,888866
1,050

17,307
13,961
701
937

16,771
15,555
1,021
1,375

686

689

897

1,212

2,058

2,230

24.44

24.5431.87

43.14

73.19

79.13

62,00952,159
1,851.58―――

66,16853,8971,910.58―――

68,632
55,112
1,950.97―――

65,20053,335
1,893.12
30
69.5
1.6

67,302
54,3781,927.39
30
41.0
1.6

―
―
―
40
50.5
2.1

Company Proﬁle (Current as of September 30, 2022)

28,16528,437
1,409
1,765

94th
fiscal year forecast

35,50034,5002,500
2,800

Directors (Current as of September 30, 2022)

Yoshikazu Takeshita
Company name:HISAKA WORKS, LTD.
Director, President and Chief Executive Oﬃcer
Established:
May 1942
Koji Ohta
Director, Managing Executive Oﬃcer
Capital:4.15 billion yen
Tadashi Iizuka
Director, Managing Executive Oﬃcer
Number of employees:
Consolidated: 946, Non-consolidated: 669
Toshiyuki Funakoshi
Director, Managing Executive Oﬃcer
Head oﬃce address:
2-12-7 Sonezaki, Kita-ku, Osaka City
Toshiya Usami
Director, Managing Executive Oﬃcer
Branch oﬃces and plants: Tokyo Branch Oﬃce (Chuo-ku, Tokyo)
Koji Mizumoto
Director (Outside)
Nagoya Branch Oﬃce (Nagoya City, Aichi)
Yuko Tsuno
Director (Outside)
Kyushu Branch Oﬃce (Fukuoka City, Fukuoka)
Director, Audit and Supervisory Committee Member (Full-time) Mitsugu Nakamichi
Kitakyushu Branch Oﬃce (Kitakyushu City, Fukuoka)
Director, Audit and Supervisory Committee Member (Outside) Akira Nakai
Konoike Plant (Higashiosaka City, Osaka)
Director, Audit and Supervisory Committee Member (Outside) Noriyuki Fujita
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)

Share Status (Current as of September 30, 2022)
Total number of authorized shares: 129,020,000
32,732,800
Total number of shares issued:
5,610
Number of shareholders:Shareholding ratio by owner (%):
Treasury shares
13.90

Individuals / Other
23.20

11.40

Foreign corporations, etc.

Financialinstitutions
23.75

Financial instruments
business operators
1.59
26.16

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.
Hisaka Works Business Partners Shareholding Association
TAKUMA Co., Ltd.
STATE STREET BANK AND TRUST COMPANY 505103
Hisaka Works Employees' Shareholding Association

Number ofshares held

2,603,000
2,025,200
1,400,000
960,770912,640
910,802645,086
642,000
624,518
533,848

Shareholding
ratio

9.23 %
7.18 %
4.96 %
3.40 %
3.23 %
3.23 %
2.28 %
2.27 %
2.21 %
1.89 %(Note) Treasury shares (4,551,178 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 exchangeTokyo Stock Exchange Prime Market

Public notice methodElectronic 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.