HISAKA WORKS, LTD.

Hisaka Newsletter

Securities code 6247

The 93rd Fiscal Year
April 1, 2021 to March 31, 2022

High Temperature, High Pressure Retort Sterilizer (RCS)

To our shareholders,

BUSINESSREPORT

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 current consolidated ﬁscal year. In the Japanese economy, production activities in themanufacturing industry are back on track for recovery. Currently the future of the economy remains
unclear due to the worsening of the Ukraine conﬂict causing concerns over a further steep rise in
the prices of resources, and tight supply and demand for materials, among other negative factors.
Orders received by Hisaka Group during the current consolidated ﬁscal year reached 34,685
million yen (an increase of 23.2% compared with the previous ﬁscal year). The Heat Exchanger
Segment and Process Engineering Segment performed strongly resulting in increased orders.
Net sales were 30,085 million yen (an increase of 5.8% compared with the previous ﬁscal year).
In addition to the favorable environment of orders received, the extensive backlog of received
orders resulted in increased revenues for our three main segments.
In terms of proﬁt, increased net sales and an improved sales mix in the Heat Exchanger Segment
resulted in an operating proﬁt of 1,819 million yen (an increase of 29.1% compared with theprevious ﬁscal year), with an ordinary proﬁt of 2,270 million yen (an increase of 28.6% comparedwith the previous ﬁscal year). The net proﬁt for the current ﬁscal year attributable to shareholdersof the parent company was 2,058 million yen (an increase of 69.8% compared with the previousﬁscal year) due to recording extraordinary income from the reduction in cross-shareholdings.
We would like to ask all of our valued shareholders for their continued cooperation and support.

Yoshikazu Takeshita
President and CEO, June 2022

Results by Segment

39％

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 reached 12,769 million yen (an increase of 22.7% compared with theprevious ﬁscal year). Orders received increased due to strong performance for semiconductors, air conditioners, small and medium-size general-purpose products for industrial
equipment, new shipbuilding projects and maintenance, as well as orders for maintenance-related work for plants.
Net sales were 11,691 million yen (an increase of 3.5% compared with the previous
ﬁscal year). Revenues increased due to strong performance of small and medium-size
general-purpose products and maintenance-related work for plants.
Segment proﬁt increased to 1,201 million yen (an increase of 55.8% compared with theprevious ﬁscal year) due to an increase in net sales as well as an improved sales mix.

46 ％15,00010,00010,405

12,76911,298

11,691

5,000

0771

1,201

Period ended
March 2021

Period ended
March 2022

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 17,748 million yen (an increase of 33.4% compared with theprevious ﬁscal year). This increase was due to inquiries for food manufacturing equipment, and dyeing and ﬁnishing devices getting back on track for recovery as well aslarge-lot project orders received for pharmaceutical equipment.
Net sales were 13,853 million yen (an increase of 5.7% compared with the previousﬁscal year). This increase in revenues was due to an increase in delivered pharmaceutical equipment, such as for COVID-19 vaccine culture plants, as well as large-lot projectorders received for dyeing and ﬁnishing devices for China.
Segment proﬁt was 352 million yen (a decrease of 24.8% compared with the previousﬁscal year) due to factors such as allocation of an allowance for unproﬁtable projects.

15 ％■ Orders received ■ Net sales■ Segment proﬁt
Unit: Million yen■ Orders received ■ Net sales■ Segment proﬁt
Unit: Million yen
20,00015,00017,74813,853

13,307 13,100

10,0005,000
0469352

Period ended
March 2021

Period ended
March 2022

Valve Segment

The Valve Segment manufactures and sells ball valves and the like used in the controlof various ﬂuids.
Orders received reached 4,077 million yen (a decrease of 6.4% compared with theprevious ﬁscal year). This decrease was due to shortages in procured parts caused by asemiconductor shortage and stoppage of capital investment due to rising raw material
prices for the chemical industry, and a reactionary decline in overseas large-lot projects.
Net sales were 4,451 million yen (an increase of 12.8% compared with the previousﬁscal year). Revenues increased due to an extensive backlog of orders received for thechemical industry.
Segment proﬁt increased to 321 million yen (an increase of 35.0% 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

4,358

4,077

3,945

4,451

3,000
2,000
1,000
0237

321

Period ended
March 2021

Period ended
March 2022

Consolidated Financial Highlights
Summary ofConsolidated Balance Sheets

Summary ofConsolidated Proﬁt and Loss Statement

Unit: Million yen

Cost of sales
22,204
Total Total liabilities
assets and net assets
67,302 67,302

Total Total liabilities
assets and net assets
65,200 65,200

Current liabilities
10,442Current liabilities
9,306
Non-current
liabilities
2,558

Current
assets32,597

Non-current
liabilities
2,481

Current
assets35,404

Net sales
28,437Gross proﬁt
6,233

Non-current
assets32,603Extraordinary
income42
Extraordinary
losses57
Net proﬁt for thecurrent period before
income taxes andother adjustments
1,750

Cost of sales
23,196

Net sales
30,085

Non-current
assets31,897

Ordinary
Operating proﬁt
proﬁt
1,7651,409

As of March 31, 2022

Selling, generaland administrative
expenses
5,069

Gross proﬁt
6,889

Extraordinary
income495
Extraordinary
losses6
Net proﬁt for thecurrent period before
income taxes andother adjustments
2,758

Non-operating
income486
Non-operating
expenses35

Non-operating
income392
Non-operating
expenses36

Net assets
54,378

Net assets
53,335

As of March 31, 2021

Selling, generaland administrative
expenses
4,824

Unit: Million yen

Net proﬁt for the current
period attributable toshareholders ofparent company
1,212

Period ended March 2021

Ordinary Net proﬁt for the current
Operating proﬁt period attributable to2,270 shareholders ofproﬁtparent company
1,819
2,058

Period ended March 2022

TopicsConstruction Started on New Plant
in Ikoma City (Nara) to Improve
Production Capacity

Provision of Remote Support andMaintenance System■ Manpower- and Energy-Savings Supported by FA and IoT

HISAKA operates its business by providing our companyʼs values to resolve
various social issues with the goal of contributing to the realization of a sustainable society. Currently there is a labor shortage issue in numerous industries. In order to resolve this issue, HISAKA provides manpower- andenergy-saving solutions for our customersʼ plants by proposing the introductionof FA (Factory Automation: automating of production processes) and IoT.

■ Provision of Remote Support and Maintenance System Using the IoT
The illustration below shows a plant for manufacturing sterilized cooked rice(rice packs) that we sell. Sensors and similar devices are installed in various
locations of a plant like this making it possible to perform remote support andmaintenance by transmitting data over the Internet.
This system enables customers to visualize various data related to machine
operating and food manufacturing status in order to speed up response toproblems, optimize work performed, and improve productivity. HISAKA alsoutilizes accumulated data for new product development and improving services.
Illustration of Remote Support Using the IoT for Food Manufacturing Equipment
HISAKA WORKS, LTD. (Osaka)
Operating Status

6 Sealing

Customer A
Customer B
Customer C■ Construction of New Plant in Ikoma City (Nara)HISAKA has started construction of a new Ikoma Plant in Ikoma
City (Nara Prefecture). This plant was planned to serve as aproduction base for the Process Engineering Segment, and willserve as a cornerstone to improve the production system of thissegment that is composed of products which are expected tohave growing demand such as food manufacturing equipment,
pharmaceutical equipment, and dyeing and finishing devices. With
construction scheduled for completion in the fall of 2023, thisexpansive single-story plant will be equipped with cutting-edge
production equipment to massively increase both the production
volume as well as productivity.

 estructuring of Production System of Konoike Plant■RAdditionally, the space formerly used by the transferred Process
Engineering Segment at the existing Konoike Plant (Higashiosaka City, Osaka) will be used to expand the production capacity ofthe Heat Exchanger Segment and Valve Segment. We are planning on increasing consolidated net sales of the Hisaka Group to50 billion yen due to this new Ikoma Plant and improving theproduction system at the Konoike Plant.
Ikoma Plant (Conceptual Drawing)* The building in the middle is of another company.

5 Rice Cooking

1. Operation Status Check
2. Error Information Alerts
3. Maintenance Support

4 Cooking Water Filling
3 Sterilization

1 Water Soaking
2 Fixed Quantity Filling

erLiftHISAKA
Service 1(Tokyo)

HISAKA
Service 2(Nagoya)

HISAKA
Service 3(Kyushu)

Consolidated Results
Unit: Million yenCategory

Fiscal year

89th fiscal year

(Period ended March 2018)

Orders received
Net sales
Operating profit
Ordinary 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
Net assets
Net assets per share (in yen)
Annual dividend per share (in yen)
Dividend payout ratio (%)
Dividend on equity ratio (DOE) (%)

90th fiscal year

(Period ended March 2019)91st fiscal year

(Period ended March 2020)

92nd fiscal year

93rd fiscal year

(Period ended March 2021) (Period ended March 2022)

28,91426,891
1,607
1,963

30,66930,9392,040
2,337

31,95232,511
2,274
2,573

28,16528,437
1,409
1,765

34,68530,085
1,819
2,270

1,927

1,596

2,080

1,212

2,058

64.56

53.48

73.39

43.14

73.19

60,27551,014
1,708.71
20
31.0
1.2

63,041
51,691
1,731.4020
37.4
1.260,566
50,831
1,804.13
20
27.3
1.1

65,20053,335
1,893.12
30
69.5
1.6

67,302
54,3781,927.3930
41.0
1.6(Note) The Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28, February 16, 2018) have been applied since the start of the 90thfiscal year. The major management indicators for the 89th fiscal year are the indicators after applying the relevant accounting standards retroactively.

Company Proﬁle (Current as of March 31, 2022)

Directors (Current as of June 29, 2022)

Company name:HISAKA WORKS, LTD.
Established:
May 1942
Capital:4.15 billion yen
Number of employees: Consolidated: 919, Non-consolidated: 648
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 Oﬃcer

Tadashi Iizuka

Director, Managing Executive Oﬃcer

Toshiyuki Funakoshi

Director, Managing Executive Oﬃcer

Toshiya Usami

Director (Outside)

Koji Mizumoto

Director (Outside)

Yuko Tsuno

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

Mitsugu Nakamichi

Director, Audit and Supervisory Committee
Member (Outside)

Akira Nakai

Director, Audit and Supervisory Committee
Member (Outside)

Noriyuki Fujita

Share Status (as of March 31, 2022)
Total number of authorized shares: 129,020,000
32,732,800
Total number of shares issued:
5,332
Number of shareholders:Shareholding ratio by owner (%)
Treasuryshares
14.02

Financial
institutions
25.56

Individuals / Other

1.43

22.39

10.56

Foreign corporations,etc.

Financial instruments
business operators
26.04

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

2,829,900
2,277,500
1,400,000
960,770912,640
910,802642,000
616,886
607,159
519,948

10.05%
8.09%
4.97%
3.41%
3.24%
3.23%
2.28%
2.19%
2.15%
1.84%

(Note) Treasury shares (4,590,649 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 not
Mitsubishi 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.