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 Three Months Ended June 30, 2020
(Based on Japanese GAAP)
July 31, 2020
Company name:
Hodogaya Chemical Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

4112
President

URL

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

Inquiries:

Director, Senior Managing Executive Officer& General Manager, Corporate Planning
Eiichi Sunada

Department
Scheduled date to file Quarterly Securities Report:

August 7, 2020

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–Yes

Holding of quarterly financial results meeting:

NoTEL

03-5299-8019((Amounts less than one million yen are rounded down))
1. Consolidated financial results for the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)(1) Consolidated operating results (cumulative)
Net sales
Three months ended June 30, 2020Three months ended June 30, 2019

Millions of yen
10,353
8,497

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
21.9
2,260 378.3
2,396 392.2
1,068 250.8(0.7)
472 (23.2)
486 (39.1)
304 (43.8)

Earnings per share

Diluted earnings per shareYen
135.22
38.56

Three months ended June 30, 2020Three months ended June 30, 2019

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2020
As of March 31, 2020

Net assets

Millions of yen
56,58754,903Equity ratio

Millions of yen
39,16337,040

%
62.5
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

Yen–

Yen
25.00

Yen
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)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
18,3004.3
2,000 146.3
2,100 165.1
700
24.3
88.55
September 30, 2020

1

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 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:

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 June 30, 2020

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

8,413,726 shares

507,424 shares As of March 31, 2020

510,700 shares

Number of treasury shares at the end of the period
As of June 30, 2020

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2020

7,904,658 shares Three months ended June 30, 20192

7,902,845 shares

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

As of June 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

6,877
11,2507,389
10,282Merchandise and finished goods
Work in process

4,251
624

4,958
681

Raw materials and supplies
Other

2,169
410

2,448
482

Allowance for doubtful accounts
Total current assets

(21)

(23)

25,563

26,217

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

5,326

6,199

Land
Other, net

11,967
4,814

11,9694,204

Total property, plant and equipment

22,10822,373

Intangible assets
Software

127

133

Other

30

32

Total intangible assets

157

165

5,966
261

6,697
409

Deferred tax assets
Other

344
694

192
723

Allowance for doubtful accounts

(192)

(192)

Investments and other assets
Investment securities
Long-term loans receivable

Total investments and other assets
Total non-current assets
Total assets

3

7,074

7,830

29,34030,36954,90356,587

(Millions of yen)
As of March 31, 2020

As of June 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

4,179

3,891

Short-term borrowings
Income taxes payable

3,203
360

3,211
528

Provisions
Other504
1,959

278
1,900

Total current liabilities

10,207

9,810

Non-current liabilities
Long-term borrowings

3,950

3,662

1,1081,228

1,376
1,228

Provisions
Retirement benefit liability

169

170

Asset retirement obligations
Other81
1,215

81
1,192

Total non-current liabilities

7,655

7,613

17,863

17,424

Shareholders' equity
Share capital

11,196

11,196

Capital surplus
Retained earnings

8,706
11,396

8,706
12,267

Treasury shares(1,712)(1,702)

Total shareholders' equity

29,58630,469

1,146
2,783

1,661
2,783

424

468

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

4,354

4,913

Non-controlling interests

Total accumulated other comprehensive income

3,099

3,780

Total net assets

37,04039,16354,90356,587

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)Three months ended

Three months ended

June 30, 2019

June 30, 2020

Net sales
Cost of sales8,497
5,663

10,353
5,514

Gross profit

2,833

4,839

Selling, general and administrative expenses

2,361

2,579472

2,260Interest income
Dividend income

3992106

Rental income from non-current assets
Miscellaneous income

15
63

1670

Total non-operating income

182

196

16

12

Foreign exchange losses
Environmental maintenance expenses

117
1723
18

Miscellaneous loss

15

6

Total non-operating expenses

167

60

486

2,396

–

1–

1

5

3

25

–

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary incomeGain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities

31

3

Profit before income taxes

Total extraordinary losses

455

2,393

Income taxes

72

577

Profit383

1,816

Profit attributable to non-controlling interests

78

747

Profit attributable to owners of parent

304

1,068

5

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

ProfitOther comprehensive income

Three months ended

Three months ended

June 30, 2019

June 30, 2020
383

1,816Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(338)
(258)

514
83

Remeasurements of defined benefit plans, net of tax(6)–(603)

597

Comprehensive income

Total other comprehensive income

(219)

2,413

Comprehensive income attributable toComprehensive income attributable to owners of parent

(188)

1,627

(30)

786

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)Three months ended

Three months ended

June 30, 2019

June 30, 2020

Cash flows from operating activities
Profit before income taxes

455

2,393

Depreciation
Increase (decrease) in provisions

340(233)

346(223)

Increase (decrease) in retirement benefit liability
Interest and dividend income(21)(102)

1(109)

Interest expenses
Foreign exchange losses (gains)

1657

122

Loss on retirement of property, plant and equipment
Loss (gain) on sales of property, plant and equipment

5–

3(1)

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

25
1,091–980

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

(458)
(866)

(1,018)(283)

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

(149)
39199
(20)

Other, net

42(0)Subtotal

242

2,284

Interest and dividends received

100

104

Interest paid
Income taxes paid

(15)
(392)

(12)
(236)

Net cash provided by (used in) operating activities

(65)

2,140

(19)

–19–

(326)

(1,111)

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

(1)

(0)

Proceeds from sales of property, plant and equipment andintangible assets–2

Purchase of investment securities
Loan advances

(0)
(7)

(0)
(154)

Collection of loans receivable
Payments of guarantee deposits

6(1)

5(35)

Proceeds from refund of guarantee deposits
Other, net

14040(314)(1,288)Net cash provided by (used in) investing activities

7

(Millions of yen)

Cash flows from financing activities
Repayments of long-term borrowings

Three months ended

Three months ended

June 30, 2019

June 30, 2020
(369)

(280)

Dividends paid
Dividends paid to non-controlling interests

(0)
(38)

(0)
(50)

Proceeds from sales of treasury shares
Purchase of treasury shares

–(0)

0
(0)

Repayments of lease obligations

(6)

(30)

Net cash provided by (used in) financing activities

(414)

(361)

Effect of exchange rate change on cash and cash equivalents

(108)

20

Net increase (decrease) in cash and cash equivalents

(903)

510

Cash and cash equivalents at beginning of period

7,442

6,769

Cash and cash equivalents at end of period

6,539

7,279

8