Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2020
(Based on Japanese GAAP)
January 29, 2021
Company name:
Hodogaya Chemical Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

4112
President

URL

https://www.hodogaya.co.jp/
Yuto Matsumoto

Inquiries:

General Manager, Corporate Planning
DepartmentYasuhiro Mohri

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

February 12, 2021–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:YesNo

03-5299-8019(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet salesOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended December 31, 2020
29,6268.1
4,261 142.6
4,435 126.0
2,09691.3
Nine months ended December 31, 201927,4182.2
1,756 (17.6)
1,962 (17.8)
1,095 (35.6)
Earnings per share

Diluted earnings per shareYen
264.97138.67

Nine months ended December 31, 2020
Nine months ended December 31, 2019

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
60,84654,903

As of December 31, 2020
As of March 31, 2020

Equity ratio

Millions of yen
41,38537,040

%
60.6
61.8

2. Cash dividends
Annual dividends per share

Year ended March 31, 2020
Year ending March 31, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
25.00
25.00

Yen––

Yen
25.00

Yen
50.00

25.00

50.00

Year ending March 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Net sales
Full yearMillions of yen
39,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
3.3
4,300
48.1
4,500
47.1
2,200
18.4
278.131

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2020

8,413,726 shares As of March 31, 2020

8,413,726 shares

496,900 shares As of March 31, 2020

510,700 shares

Number of treasury shares at the end of the period
As of December 31, 2020

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2020

7,912,103 shares Nine months ended December 31, 2019

2

7,903,159 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2020

As of December 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

6,877
11,2509,774
10,407

Merchandise and finished goods
Work in process

4,251
624

5,136
1,227

Raw materials and supplies
Other

2,169
410

2,259
772

Allowance for doubtful accounts
Total current assets

(21)

(20)

25,56329,557

Non-current assets
Property, plant and equipment
Buildings and structures, net

5,326

6,350

Land
Other, net

11,967
4,814

12,0794,219

Total property, plant and equipment

22,10822,649Intangible assets
Goodwill–54

Software
Other

127
30

157
21

Total intangible assets

157

234

Investments and other assets
Investment securities

5,966

7,207

Long-term loans receivableDeferred tax assets

261
344

415
175

Other
Allowance for doubtful accounts

694
(192)

798
(192)

Total investments and other assets

7,074

8,405

29,34031,28854,90360,846

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2020

As of December 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

4,179

4,507

Short-term borrowings
Income taxes payable

3,203
360

4,659
769

Provisions
Other504
1,959

236
2,008

Total current liabilities

10,207

12,180Non-current liabilities
Long-term borrowings

3,950

3,240

1,108
1,228

1,459
1,228

Provisions
Retirement benefit liability

169

174

Asset retirement obligations
Other81
1,215

81
1,195

Total non-current liabilities

7,655

7,280

17,863

19,461

Shareholders' equity
Share capital

11,196

11,196

Capital surplus
Retained earnings

8,706
11,396

8,716
13,097

Treasury shares(1,712)(1,667)

Total shareholders' equity

29,586

31,342

1,146
2,783

2,020
2,783

424

706

Deferred tax liabilities
Deferred tax liabilities for land revaluation

Total liabilities
Net assetsAccumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment

4,354

5,510

Non-controlling interests

Total accumulated other comprehensive income

3,099

4,531

Total net assets

37,04041,38554,90360,846

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

Net sales
Cost of sales

27,41818,20829,626
17,694Gross profit

9,210

11,931

Selling, general and administrative expenses

7,453

7,670

Operating profit

1,756

4,261

Interest income
Dividend income

12189

8190

Rental income from non-current assets
Miscellaneous income

46
201

54
148

Total non-operating income

450

403

47

38

Foreign exchange losses
Environmental maintenance expenses

107
51

114
49

Miscellaneous loss

37

27

Non-operating income

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets

244

228

1,962

4,435

10

17

10

17

1113

Loss on valuation of investment securities
Loss on termination of retirement benefit plan

62
94

41
–

Other–

1

Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5

168

56

1,804

4,395

425

991

1,379

3,404

283

1,308

1,095

2,096

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

1,379

3,404

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(38)
(181)

873
510

Remeasurements of defined benefit plans, net of tax(247)–Total other comprehensive income

(466)

1,384

Comprehensive income

913

4,789

Comprehensive income attributable toComprehensive income attributable to owners of parent

703

3,252

209

1,536

Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

1,804

4,395

Depreciation
Amortization of goodwill

1,092
–

1,102
0

Increase (decrease) in provisions
Increase (decrease) in retirement benefit liability(229)
25(268)4Interest and dividend income
Interest expenses(202)
47(199)38

Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment

36(10)

10(16)

Loss on retirement of property, plant and equipment
Loss (gain) on valuation of investment securities

1162

1341

Loss on termination of retirement benefit plan
Decrease (increase) in trade receivables

94
1,778–900

Decrease (increase) in inventories
Increase (decrease) in trade payables(1,115)(403)(1,436)
321

211
61

263
(75)

Increase/decrease in other assets/liabilities
Increase (decrease) in accrued consumption taxes
Other, net

(35)

(29)

Subtotal

3,229

5,066

Interest and dividends received

200198Interest paid
Income taxes paid

(47)
(560)

(38)
(556)

Income taxes refund

46

52

2,867

4,723(19)19(64)
19

Purchase of property, plant and equipment and intangible
assets(1,590)(1,989)Proceeds from sales of property, plant and equipment andintangible assets

1441

Payments for retirement of property, plant and equipment
Purchase of investment securities

(5)
(1)

(2)
(40)

Loan advances
Collection of loans receivable

(23)
24

(176)
22

Payments for acquisition of businesses
Payments of guarantee deposits

–(83)

(0)
(109)

Proceeds from refund of guarantee deposits
Other, net

87
122
1(1,575)(2,275)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

Net cash provided by (used in) investing activities

7

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020
–

1,352

–
(1,041)

80
(754)

(199)
(91)

(196)
(104)

Proceeds from sales of treasury shares
Purchase of treasury shares

0(1)

0(3)

Repayments of lease obligations
Payments from changes in ownership interests in subsidiaries

(58)

(91)

(20)

–(1,413)281

Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling intereststhat do not result in change in scope of consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(80)

109

Net increase (decrease) in cash and cash equivalents

(201)

2,838

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from acquisition

7,442

6,769

–

6

7,240

9,614

of businesses for consolidated subsidiaries
Cash and cash equivalents at end of period8