Harada Industry : Financial Report

Financial Report

Fiscal Year Ended March 31, 2022

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 of the Company for which separate 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: 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. Calculation method for sales, profit or loss, assets and other items by reportable segment Profit in the reportable segments is based on operating profit.

Intersegment sales or transfers are based on market prices.

(Application of the Accounting Standard for Revenue Recognition)

The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations from the beginning of the current fiscal year, and changed its accounting method for revenue recognition.

Therefore, the measurement method for profit or loss in the reportable segment has been changed as well.

Due to this change, sales decreased by 17,732 thousand yen and segment profit decreased by 16,015 thousand yen in the "Japan" segment compared with the amount calculated by the previous method.

3. Information concerning the amount of sales, profit or loss, assets and other items by reportable segment (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.

(April 1, 2021 to March 31, 2022)

(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	12,919,183	8,362,338	9,726,216		4,803,753	35,811,490	－	35,811,490
Intersegment sales or transfers	1,906,595	14,997,293	188,634		1,474,945	18,567,469	(18,567,469)	－
Total sales	14,825,778	23,359,631	9,914,850		6,278,699	54,378,959	(18,567,469)	35,811,490
Segment profit	(400,396)	(172,182)	67,410		(624,163)	(1,129,332)	(34,015)	(1,163,347)
Segment assets	23,519,048	16,709,688	8,926,013		3,546,827	52,701,578	(16,758,704)	35,942,873
Others
Depreciation	68,343	764,200	268,141		19,479	1,120,165	－	1,120,165
Increase in property, plant and	2,539	427,806	257,787		3,356	691,490	－	691,490
equipment and intangible assets
Notes:

1. Adjustments are as follows:

1. Adjustment amount of (34,015) thousand yen for segment profit is eliminations between segment transaction.
2. Adjustment amount of (16,758,704) 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, 2022	21,758,000
As of June 29, 2022	21,758,000

	Tokyo Stock Exchange
Stock exchange listings or registration	First Section (as of the end of the
current fiscal year)
	Prime Market (as of the submission
	date of the securities report)

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）

As of March 31, 2021 As of March 31, 2022

Assets

Current assets
Cash and deposits	4,660,725	3,747,983
Notes and accounts receivable-trade	7,360,091	－
Notes and accounts receiveble-trade, and contract assets	－	6,701,453
Merchandise and finished goods	5,549,763	7,662,972
Work in process	660,734	852,215
Raw materials and supplies	4,432,513	6,461,356
Other	816,851	999,855
Allowance for doubtful accounts	(24,492)	(47,577)
Total current assets	23,456,187	26,378,260
Non-current assets
Property, plant and equipment
Buildings and structures, net	1,604,354	1,580,466
Machinery, equipment and vehicles, net	1,416,933	1,459,712
Land	887,907	900,294
Other, net	2,278,697	2,389,307
Total property, plant and equipment	6,187,892	6,329,780
Intangible assets	239,516	165,825
Investments and other assets
Retirement benefit asset	189,601	190,998
Deferred tax asstes	1,717,488	1,974,632
Other	1,004,299	912,542
Allowance for doubtful accounts	－	(9,166)
Total investments and other assets	2,911,389	3,069,007
Total non-current assets	9,338,798	9,564,613
Total assets	32,794,985	35,942,873

－4－