[Delayed] Summary of Consolidated Financial Results for the Six Months Ended September 30, 2021

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)

					November 10, 2021
Company name:	Eagle Industry Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	6486	URL https://www.ekkeagle.com/jp/
Representative:	Representative Director, President	Tetsuji Tsuru
Inquiries:	Senior Operating Officer, Division Manager	Sumio Ikeda	TEL [phone]
	Corporate Finance & Accounting Division
Scheduled date to file Quarterly Securities Report:	November 12, 2021
Scheduled date to commence dividend payments:	December 3, 2021
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for analysts and institutional investors)

((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
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen	%
Six months ended September 30, 2021	68,633		18.5	3,921	-	5,079		365.3	3,483	-
Six months ended September 30, 2020	57,913		(19.9)	(222)	-	1,091		(76.5)	(994)	-
	Earnings per share		Diluted earnings per share
			Yen			Yen
Six months ended September 30, 2021			70.93			-
Six months ended September 30, 2020			(20.26)			-
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio		Net assets per share
	Millions of yen		Millions of yen				%		Yen
As of September 30, 2021	171,004			94,871				50.9	1,772.61
As of March 31, 2021	176,508			92,441				47.8	1,719.40

2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended March 31, 2021	-	25.00	-	25.00	50.00
Year ending March 31, 2022	-	25.00
Year ending March 31, 2022 (Forecast)			-	25.00	50.00

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

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%	Yen
Full year	139,000	6.5	5,800	(0.0)	7,700		(8.9)	4,900	22.2	99.77

1

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):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

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:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(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	49,757,821	shares	As of March 31, 2021	49,757,821	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	634,237	shares	As of March 31, 2021	673,995	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2021	49,103,780	shares	Six months ended September 30, 2020	49,084,469	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	32,662	27,331
Trade receivables and contract assets	28,253	25,364
Electronically recorded monetary claims - operating	3,288	4,412
Merchandise and finished goods	7,402	9,496
Work in process	6,280	6,543
Raw materials and supplies	9,279	9,723
Other	6,288	6,127
Allowance for doubtful accounts	(344)	(87)
Total current assets	93,110	88,911
Non-current assets
Property, plant and equipment
Buildings and structures, net	23,370	22,923
Machinery, equipment and vehicles, net	23,277	22,737
Other, net	13,867	13,034
Total property, plant and equipment	60,515	58,695
Intangible assets
Goodwill	1,702	1,483
Other	1,795	1,596
Total intangible assets	3,497	3,079
Investments and other assets
Investment securities	12,077	12,798
Other	7,420	7,628
Allowance for doubtful accounts	(112)	(110)
Total investments and other assets	19,384	20,317
Total non-current assets	83,397	82,092
Total assets		176,508	171,004

3

			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Liabilities
Current liabilities
Accounts payable - trade	8,253	6,934
Electronically recorded obligations - operating	2,830	2,845
Short-term borrowings	14,754	13,239
Income taxes payable	1,431	1,053
Provision for bonuses	2,547	3,294
Other provisions	522	409
Other	12,398	12,458
Total current liabilities	42,737	40,236
Non-current liabilities
Long-term borrowings	23,447	18,096
Provisions	316	318
Retirement benefit liability	16,052	15,982
Other	1,513	1,499
Total non-current liabilities	41,329	35,896
Total liabilities	84,067	76,133
Net assets
Shareholders' equity
Share capital	10,490	10,490
Capital surplus	11,310	11,296
Retained earnings	68,224	70,480
Treasury shares	(226)	(213)
Total shareholders' equity	89,799	92,055
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	402	475
Foreign currency translation adjustment	(2,690)	(2,595)
Remeasurements of defined benefit plans	(3,116)	(2,858)
Total accumulated other comprehensive income	(5,404)	(4,978)
Non-controlling interests	8,046	7,794
Total net assets	92,441	94,871
Total liabilities and net assets		176,508	171,004

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	57,913	68,633
Cost of sales	46,247	52,469
Gross profit	11,666	16,164
Selling, general and administrative expenses	11,888	12,242
Operating profit (loss)	(222)	3,921
Non-operating income
Interest income	130	106
Dividend income	10	10
Share of profit of entities accounted for using equity method	1,126	701
Other	604	599
Total non-operating income	1,871	1,417
Non-operating expenses
Interest expenses	204	194
Loss on mothballing of operation	258	-
Other	94	64
Total non-operating expenses	557	259
Ordinary profit	1,091	5,079
Extraordinary income
Gain on sale of non-current assets	0	5
Total extraordinary income	0	5
Extraordinary losses
Loss on sale of non-current assets	2	12
Loss on retirement of non-current assets	14	53
Total extraordinary losses	17	65
Profit before income taxes	1,075	5,019
Income taxes	1,457	852
Profit (loss)	(382)	4,167
Profit attributable to non-controlling interests	612	684
Profit (loss) attributable to owners of parent		(994)	3,483

5