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 Six Months Ended September 30, 2023
(Based on Japanese GAAP)
November 13, 2023
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:

November 14, 2023
December 14, 2023

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:Yes
No03-6852-0327(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 2023
20,451(0.6)
1,245 (36.6)
1,814 (28.2)
909 (35.0)
Six months ended September 30, 2022
20,5791.2
1,963 (41.6)
2,526 (27.8)
1,398 (20.9)
Earnings per share

Diluted earnings per shareYen
114.63176.55Six months ended September 30, 2023
Six months ended September 30, 2022

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
77,482
72,051

As of September 30, 2023
As of March 31, 2023

Equity ratio

Millions of yen
54,20349,897

%
58.6
59.5

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
32.50
37.50

Yen–

Yen
32.50

Yen
65.00

–

37.50

75.00

Year ending March 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Net sales
Full year

Millions of yen
47,000Percentages 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
8.5
3,900
5.4
4,300
2.1
2,400
7.9
302.971

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(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:

No
No

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 September 30, 2023

8,413,726 shares As of March 31, 2023

8,413,726 shares

476,899 shares As of March 31, 2023

489,635 shares

Number of treasury shares at the end of the period
As of September 30, 2023

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

7,933,264 shares Six months ended September 30, 2022

27,919,511 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

10,487
12,982

14,54910,664Merchandise and finished goods
Work in process

7,707
1,412

7,761
1,286

Raw materials and supplies
Other

2,905
1,155

3,202
1,020

Allowance for doubtful accounts

(54)

(18)

36,596

38,465

6,276

6,942

Land
Other, net

11,712
5,740

11,7298,170

Total property, plant and equipment

23,72926,843

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

Intangible assets
Goodwill

3228

Software
Other

171
37

215
184

Total intangible assets

241

427

Investments and other assets
Investment securities

8,524

9,583

Long-term loans receivable
Deferred tax assets

1,341
211

111
317

Other
Allowance for doubtful accounts

1,425
(18)

1,752
(18)

Total investments and other assets

11,483

11,74635,45439,01772,051

77,482

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provisions
Contract liabilities

4,600

4,820

5,289
330

5,179
634

565
14

566
40

Other

2,172

2,909

Total current liabilities

12,972

14,149Long-term borrowings
Provisions

5,232
–

4,840
195

Deferred tax liabilities
Deferred tax liabilities for land revaluation

1,638
1,228

1,988
1,228

81
81

88
103

Non-current liabilities

Retirement benefit liability
Asset retirement obligations
Other

918

687

9,181

9,130

22,15323,279

Share capital
Capital surplus

11,196
7,943

11,196
7,933

Retained earnings
Treasury shares

18,612(1,640)19,394(1,591)

Total shareholders' equity

36,11136,932

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

2,544

3,526

Revaluation reserve for land
Foreign currency translation adjustment

2,784
1,395

2,784
2,181

Total accumulated other comprehensive income

6,723

8,491

Non-controlling interests

7,061

8,778

Total net assets

49,89754,20372,051

77,482

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)Six months ended

Six months ended

September 30, 2022

September 30, 2023

Net sales
Cost of sales

20,57912,271

20,451
12,974Gross profit

8,308

7,476

Selling, general and administrative expenses

6,344

6,231

Operating profit

1,963

1,245

Interest income
Dividend income

45173

90161

Rental income from non-current assets
Foreign exchange gains

29346

28
269

Miscellaneous income

31102

Total non-operating income

625

652

Interest expenses
Environmental maintenance expenses

2330

3938

Miscellaneous losses

75

Non-operating income

Non-operating expenses

Total non-operating expenses

61

83

2,526

1,814

Extraordinary income
Gain on sale of investment securities

57–

Gain on sale of non-current assets

30

Total extraordinary income

60

0Loss on retirement of non-current assets
Loss on valuation of investment securities

27–

1134

Head office relocation expenses

19–

Total extraordinary losses

46

46

2,540

1,768

597

412

1,942

1,355

544

446

1,398

909

Ordinary profit

Extraordinary lossesProfit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2022

September 30, 2023

1,942

1,355

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

(79)
57

981
1,369

Total other comprehensive income

(21)

2,351

1,921

3,707

1,412

2,677

508

1,030

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2022

September 30, 2023

2,540

1,768

Depreciation
Amortization of goodwill

878
6

1,087
6

Increase (decrease) in provisions
Increase (decrease) in retirement benefit liability

(6)
3155
6

Interest and dividend income
Interest expenses(218)
23(252)39

Foreign exchange losses (gains)
Loss on retirement of property, plant and equipment(78)
27(39)
11

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

(3)
–

(0)
34

Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables

(57)
1,628

–
2,566

Decrease (increase) in inventories
Increase (decrease) in trade payables(1,442)
(253)

255
77

301
(110)

(253)
405

Other, net

37(180)Subtotal

3,276

5,687

209

198

(23)
(1,071)

(40)
(376)

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

Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund

–262

2,390

5,732

Payments into time deposits
Proceeds from withdrawal of time deposits(1,155)
533

(127)
1,125

Purchase of property, plant and equipment and intangible
assets(1,411)(2,272)

(2)

(7)

50

Net cash provided by (used in) operating activities
Cash flows from investing activities

Payments for retirement of property, plant and equipment
Proceeds from sale of property, plant and equipment andintangible assets
Payments for asset retirement obligations

(72)

–

Purchase of investment securities
Proceeds from sale of investment securities

(52)
282

(0)
–

Proceeds from redemption of securities
Loan advances

519
(39)

–
(27)

Proceeds from collection of loans receivable
Payments of guarantee deposits

25(23)

18(234)

Proceeds from refund of guarantee deposits
Other, net

172
(31)

63
(0)

(1,249)(1,462)

Net cash provided by (used in) investing activities

7(Millions of yen)

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

Six months ended

Six months ended

September 30, 2022

September 30, 2023

1,000–

Repayments of long-term borrowings
Dividends paid

(502)
(236)

(502)
(260)

Dividends paid to non-controlling interests
Proceeds from sale of treasury shares(253)
0(174)–

Purchase of treasury shares
Repayments of lease liabilities

(0)
(64)

(1)
(69)

–

(54)

(987)

–

Redemption of bonds
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Net cash provided by (used in) financing activities(1,045)(1,061)

Effect of exchange rate change on cash and cash equivalents

149305

Net increase (decrease) in cash and cash equivalents

244

3,514

Cash and cash equivalents at beginning of period

10,365

6,708

–

1,280

10,61011,502

Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period8