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, 2021
(Based on Japanese GAAP)
October 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:

Managing Executive Officer & GeneralManager, Corporate Planning Department

Kenji Tsujitsugu

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

November 10, 2021
December 6, 2021

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

Yes
NoTEL

03-5299-8019((Amounts less than one million yen are rounded down))
1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)(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, 2021
20,329
4.7
3,361
20.4
3,498
20.6
1,767
41.1
Six months ended September 30, 2020
19,42010.7
2,792 244.0
2,900 266.2
1,252 122.6
Earnings per share

Diluted earnings per share

Yen
223.26158.40Six months ended September 30, 2021
Six months ended September 30, 2020

Yen––(2) Consolidated financial position
Total assetsNet assets

Millions of yen
64,00662,609As of September 30, 2021
As of March 31, 2021

Equity ratio

Millions of yen
45,45743,654%62.5
61.8

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
25.00
30.00

Yen–

Yen
25.00

Yen
50.00

–

30.00

60.00

Year ending March 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
40,000Percentages 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–
5,000–
5,000–
2,500–
315.751

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(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:

Yes
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, 2021

8,413,726 shares As of March 31, 2021

8,413,726 shares

495,809 shares As of March 31, 2021

497,405 shares

Number of treasury shares at the end of the period
As of September 30, 2021

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

7,917,615 shares Six months ended September 30, 2020

2

7,910,039 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of September 30, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

9,447
12,016

11,531–

Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods

–
4,828

10,6905,538Work in process
Raw materials and supplies

1,554
1,931

963
2,338

Other
Allowance for doubtful accounts

510
(191)

508
(124)

30,096

31,446

6,452
12,085

6,217
12,078

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

4,108

4,437

Total property, plant and equipment

22,64522,732

53150

46133

Intangible assets
GoodwillSoftware
Other4166

Total intangible assets

245

245

8,245
411

8,237
412

355
801

195
927

Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts

(192)

(192)

Total investments and other assets

9,621

9,581

32,51232,55962,60964,006

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

4,163

4,524

4,455
920

4,399
758

490
–492
72

Contract liabilities
Other–
1,753

28
1,690

Total current liabilities

11,783

11,964Non-current liabilities
Long-term borrowings

2,970

2,468

1,623
1,228

1,626
1,228

Provisions
Retirement benefit liability

076

0
69

Asset retirement obligations
Other

91
1,181

19
1,171

Total non-current liabilities

7,171

6,584

18,954

18,548

Shareholders' equity
Share capital

11,196

11,196

Capital surplus
Retained earnings

8,716
14,1198,718
15,637

Treasury shares(1,670)(1,665)

Total shareholders' equity

32,36233,8862,657
2,7842,645
2,784

Short-term borrowings
Income taxes payable
Provisions
Asset retirement obligations

Deferred tax liabilities
Deferred tax liabilities for land revaluation

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Total accumulated other comprehensive income

872

687

6,314

6,117

Non-controlling interests

4,977

5,453

Total net assets

43,65445,45762,60964,006

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, 2020

September 30, 2021

Net sales
Cost of sales

19,42011,492

20,32911,609Gross profit

7,927

8,719

Selling, general and administrative expenses

5,134

5,358

Operating profit

2,792

3,361

Interest income
Dividend income

5110

11131

Rental income from non-current assets
Miscellaneous income

3392

41
46

Total non-operating income

242230Non-operating income

Non-operating expenses
Interest expenses

2524

Foreign exchange losses
Environmental maintenance expenses

67
32

2535

Miscellaneous losses

97

Total non-operating expenses

134

93

2,900

3,498

Extraordinary income
Gain on sale of non-current assets

2–

Total extraordinary income

2–

61–

0

Ordinary profit

Extraordinary losses
Loss on retirement of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

561

2,896

3,496

6648732,231

2,623

978856

1,252

1,767

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2020

September 30, 2021

2,231

2,623

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

767
121(11)(341)

Total other comprehensive income

889

(353)

3,120

2,270

2,084

1,571

1,035

699

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, 2020

September 30, 2021

2,896

3,496

Depreciation
Amortization of goodwill

718
–786
5

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

102(60)(7)(115)
25(142)24

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

15641

Loss (gain) on sale of property, plant and equipment
Decrease (increase) in trade receivables

(2)
1,891

–
1,183

Decrease (increase) in inventories
Increase (decrease) in trade payables

(751)
(498)

(643)
357

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

1(101)

53(19)

Interest and dividend income
Interest expenses

Other, net

852

Subtotal

4,107

5,092

Interest and dividends received

115

138

Interest paid
Income taxes paid

(26)
(351)

(24)
(927)

Income taxes refund
Net cash provided by (used in) operating activities

52

5

3,898

4,284

(19)
19(506)19(1,525)

(894)

(2)

(1)

3

–

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment and intangible
assetsPayments for retirement of property, plant and equipment
Proceeds from sale of property, plant and equipment andintangible assets
Purchase of investment securities

(0)

(0)

Loan advances
Proceeds from collection of loans receivable(154)
14(22)
19

Payments of guarantee deposits
Proceeds from refund of guarantee deposits(101)
19(189)34–
1(4)0(1,746)(1,545)Purchase of long-term prepaid expenses
Other, net
Net cash provided by (used in) investing activities

7

(Millions of yen)

Cash flows from financing activities
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Proceeds from sale of treasury shares
Purchase of treasury shares

Six months ended

Six months ended

September 30, 2020

September 30, 2021
(560)

(558)

(197)
(104)

(196)
(223)

0(2)

–(2)

Repayments of lease obligations

(61)

(62)

Net cash provided by (used in) financing activities(926)(1,043)

Effect of exchange rate change on cash and cash equivalents

9(85)Net increase (decrease) in cash and cash equivalents

1,235

1,609

Cash and cash equivalents at beginning of period

6,769

9,331

Cash and cash equivalents at end of period

8,005

10,9408