Harada Industry : Financial Report

Financial Report

Fiscal Year Ended March 31, 2021

Stock Code 6904

HARADA INDUSTRY CO., LTD.

26-2, Minamiohi 6-chome,Shinagawa-ku, Tokyo 140-0013, Japan

https://www.harada.com

HARADA INDUSTRY CO., LTD.

Table of Contents
Segment Information	2
Capital Increase	3
Shares	3
Directors and Corporate Auditors	3
Consolidated Balance Sheets	4
Consolidated Statements of Income	6
Consolidated Statements of Comprehensive Income	7
Consolidated Statements of Changes in Net Assets	8
Consolidated Statements of Cash Flows	10
Non-consolidated Balance Sheets	11
Non-consolidated Statements of Income	13
Non-consolidated Statements of Changes in Net Assets	14

－1－

HARADA INDUSTRY CO., LTD.

Segment Ｉnformation

1. Reportable segments overview

The Group's reportable segments are components for which discrete financial information is available and for which operating results are regularly reviewed by the Board of Directors and the Management Council to make decisions about resource allocations and assess segment performance. The Group mainly manufactures and sells automotive equipments. The Company takes charge of the domestic market, and overseas, following companies: HARADA Asia-Pacific Ltd., DALIAN HARADA INDUSTRY Co., Ltd., HARADA INDUSTRY OF AMERICA, INC., HARADA INDUSTRIES (EUROPE) LIMITED, and SHANGHAI HARADA NEW AUTOMOTIVE ANTENNA CO., LTD., mainly take charge of markets of each area as Asia, North and Central Americas, Europe, etc.

Following companies: HARADA INDUSTRY CO., LTD., DALIAN HARADA INDUSTRY Co., Ltd., HARADA INDUSTRIES (MEXICO), S.A. DE C.V., HARADA INDUSTRIES VIETNAM LIMITED, HARADA AUTOMOTIVE ANTENNA (PHILIPPINES), INC., and SHANGHAI HARADA NEW AUTOMOTIVE ANTENNA CO., LTD., take charge of products' production toward each market.

Each of the subsidiaries is managed independently and each regional business unit develops comprehensive strategies for dealing products and operating its business.

Therefore, the Group is composed of regional segments based on production and sales system, and has four reportable segments: Japan, Asia, North and Central Americas, and Europe.

2. Sales, Profit or Loss, Assets, and Other Information by Reportable Segments (April 1, 2019 to March 31, 2020)

(Thousands of yen)

			Reportable segments				Consolidated
							Adjustment
							income statements
			North and Central				(Note 1)
	Japan	Asia		Europe	Total	(Note 2)
	Americas
Sales
Sales to external customers	15,169,854	8,625,031	12,954,269		4,387,415	41,136,570	－	41,136,570
Intersegment sales or transfers	2,666,166	15,287,474	64,794		1,312,524	19,330,959	(19,330,959)	－
Total sales	17,836,021	23,912,505	13,019,063		5,699,939	60,467,530	(19,330,959)	41,136,570
Segment profit	(66,362)	209,879	205,899		298,807	648,223	35,053	683,276
Segment assets	19,622,644	16,698,679	8,544,208		3,229,155	48,094,687	(13,656,964)	34,437,723
Others
Depreciation	103,623	644,502	239,183		22,094	1,009,404	－	1,009,404
Increase in property, plant and	106,783	1,762,833	389,898		19,803	2,279,318	－	2,279,318
equipment and intangible assets
Notes:

1. Adjustments are as follows:

1. Adjustment amount of 35,053 thousand yen for segment profit is eliminations between segment transaction.
2. Adjustment amount of (13,656,964) thousand yen for segment assets is eliminations between segment transaction.

1. Segment profit is adjusted on operating income on the consolidated statements of income.

(April 1, 2020 to March 31, 2021)

(Thousands of yen)

			Reportable segments				Consolidated
							Adjustment
							income statements
			North and Central				(Note 1)
	Japan	Asia		Europe	Total	(Note 2)
	Americas
Sales
Sales to external customers	13,156,214	7,542,711	9,690,702		4,315,477	34,705,105	－	34,705,105
Intersegment sales or transfers	2,057,394	12,486,168	241,903		999,633	15,785,099	(15,785,099)	－
Total sales	15,213,608	20,028,879	9,932,605		5,315,111	50,490,205	(15,785,099)	34,705,105
Segment profit	(339,903)	(588,537)	(108,096)		(170,915)	(1,207,452)	118,238	(1,089,213)
Segment assets	21,285,282	15,580,336	7,706,023		2,957,551	47,529,193	(14,734,207)	32,794,985
Others
Depreciation	90,894	722,020	261,708		19,477	1,094,101	－	1,094,101
Increase in property, plant and	19,462	596,487	210,927		3,373	830,250	－	830,250
equipment and intangible assets
Notes:

1. Adjustments are as follows:

1. Adjustment amount of 118,238 thousand yen for segment profit is eliminations between segment transaction.
2. Adjustment amount of (14,734,207) thousand yen for segment assets is eliminations between segment transaction.

1. Segment profit is adjusted on operating income on the consolidated statements of income.

－2－

HARADA INDUSTRY CO., LTD.

Capital Increase

	Shares outstanding	Capital stock	Capital reserves
	Increase or	Balance	Increase or	Balance	Increase or	Balance
Date	decrease	decrease	decrease
	(Shares)	(Thousands of yen)	(Thousands of yen)
As of July 28, 2006 (notice1)	1,000,000	10,869,000	408,150	2,015,100	408,150	1,855,900
As of August 25, 2006 (notice2)	10,000	10,879,000	4,081	2,019,181	4,081	1,859,981
As of October 1, 2006 (notice3)	10,879,000	21,758,000	－	2,019,181	－	1,859,981

(notice)
1.	Public offering of shares	Exercise price (yen)		873.00
		Issue price (yen)		816.30
		Amount credited to capital stock (yen)		408.15
		Advances on subscriptions (thousands of yen)	816,300
2.	Issued to third party	Exercise price (yen)		873.00
		Amount credited to capital stock (yen)		408.15
		Issued to	Daiwa Securities SMBC
3.	1 for 2 stock split.

Shares

Class of shares	Number of shares authorized
Common shares	70,000,000
Total	70,000,000
Class of shares	Common
Issued
As of March 31, 2021	21,758,000
As of June 29, 2021	21,758,000

Stock exchange listings or registration	Tokyo Stock Exchange, Inc.
(First Section)

Directors and Corporate Auditors

Shoji Harada	Chairman and Representative Director
Yasuharu Miyake	President and Representative Director
Yoichi Hiyama	Executive Managing Director
Satoru Kamiyama	Executive Managing Director
Toru Sasaki	Director
Takashi Aoki	Director
Michiyo Oikawa	Director
Koji Kuwahara	Director
Takashi Matsubara	Corporate Auditor
Hideto Matsuzawa	Corporate Auditor
Kazuhito Arata	Corporate Auditor

－3－

HARADA INDUSTRY CO., LTD.

Consolidated Balance Sheets

	（Thousands of yen）
	March 31, 2020	March 31, 2021
Assets
Current assets
Cash and deposits	5,881,254	4,660,725
Notes and accounts receivable-trade	6,693,388	7,360,091
Merchandise and finished goods	5,750,918	5,549,763
Work in process	670,765	660,734
Raw materials and supplies	4,715,590	4,432,513
Other	1,194,199	816,851
Allowance for doubtful accounts	(22,045)	(24,492)
Total current assets	24,884,071	23,456,187
Non-current assets
Property, plant and equipment
Buildings and structures, net	1,776,402	1,604,354
Machinery, equipment and vehicles, net	1,507,578	1,416,933
Land	894,991	887,907
Other, net	2,476,755	2,278,697
Total property, plant and equipment	6,655,728	6,187,892
Intangible assets	345,305	239,516
Investments and other assets
Net defined benefit asset	15,410	189,601
Deferred tax asstes	1,608,035	1,717,488
Other	929,172	1,004,299
Total investments and other assets	2,552,618	2,911,389
Total non-current assets	9,553,652	9,338,798
Total assets	34,437,723	32,794,985

－4－