Harada Industry : Financial Report

Financial Report

Fiscal Year Ended March 31, 2024

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.

1. 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.
2. Information concerning the amount of sales, profit or loss, assets and other items by reportable segment (April 1, 2022 to March 31, 2023)

(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	15,230,405	9,069,189	11,940,040		5,865,778	42,105,413	－	42,105,413
Intersegment sales or transfers	1,819,477	17,159,416	482,373		1,241,546	20,702,814	(20,702,814)	－
Total sales	17,049,882	26,228,606	12,422,414		7,107,324	62,808,228	(20,702,814)	42,105,413
Segment profit	184,196	(715,279)	4,762		(201,678)	(727,999)	6,025	(721,973)
Segment assets	27,196,995	18,166,877	10,728,804		4,609,291	60,701,969	(20,570,236)	40,131,732
Others
Depreciation	63,502	867,502	393,503		20,726	1,345,233	－	1,345,233
Increase in property, plant and	73,043	518,676	704,959		907	1,297,587	－	1,297,587
equipment and intangible assets
Notes:

1. Adjustments are as follows:

1. Adjustment amount of 6,025 thousand yen for segment profit is eliminations between segment transaction.
2. Adjustment amount of (20,570,236) 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, 2023 to March 31, 2024)

(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	17,219,514	8,206,594	15,085,228		6,481,939	46,993,276	－	46,993,276
Intersegment sales or transfers	2,003,125	18,326,934	84,362		2,125,748	22,540,171	(22,540,171)	－
Total sales	19,222,640	26,533,528	15,169,590		8,607,688	69,533,447	(22,540,171)	46,993,276
Segment profit	1,018,742	(953,059)	755,972		167,728	989,384	36,750	1,026,134
Segment assets	29,134,255	16,753,895	12,147,393		3,190,334	61,225,880	(23,627,518)	37,598,361
Others
Depreciation	75,420	886,592	408,196		18,823	1,389,033	－	1,389,033
Increase in property, plant and	34,835	893,366	195,145		2,443	1,125,792	－	1,125,792
equipment and intangible assets
Notes:

1. Adjustments are as follows:

1. Adjustment amount of 36,750 thousand yen for segment profit is eliminations between segment transaction.
2. Adjustment amount of (23,627,518) 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, 2024	21,758,000
As of June 27, 2024	21,758,000

Stock exchange listings or registration

Tokyo Stock Exchange

Standard Market

Directors and Corporate Auditors

Shoji Harada	Chairman and Representative Director
Yasuharu Miyake	President and Representative Director
Satoru Kamiyama	Executive Managing Director
Toru Sasaki	Director
Takashi Aoki	Director
Koji Kuwahara	Director
kensuke Inoue	Director
Takashi Matsubara	Corporate Auditor
Yoichi Hiyama	Corporate Auditor
Yukiko Endo	Corporate Auditor

3

HARADA INDUSTRY CO., LTD.

Consolidated	Balance Sheets
			(Thousands of yen)
		As of March 31, 2023	As of March 31, 2024
Assets
Current assets
Cash and deposits	5,970,720	5,141,744
Notes and accounts receivable - trade,	7,865,174	7,952,700
and contract assets
Merchandise and finished goods	7,465,703	6,058,584
Work in process	838,107	691,625
Raw materials and supplies	6,654,060	6,397,081
Other		964,018	1,212,232
Allowance for doubtful accounts	(49,079)	(60,806)
Total current assets	29,708,706	27,393,161
Non-current assets
Property, plant and equipment
Buildings and structures, net	1,610,944	1,570,275
Machinery, equipment and vehicles, net	1,635,912	1,605,544
Land		885,339	584,632
Other, net		2,750,028	2,620,082
Total property, plant and equipment	6,882,225	6,380,535
Intangible assets	146,263	97,829
Investments and other assets
Deferred tax assets	2,006,329	2,378,139
Retirement benefit asset	483,638	473,028
Other		914,823	886,990
Allowance for doubtful accounts	(10,253)	(11,323)
Total investments and other assets	3,394,537	3,726,835
Total non-current assets	10,423,026	10,205,199
Total assets		40,131,732	37,598,361

4

HARADA INDUSTRY CO., LTD.

		(Thousands of yen)
	As of March 31, 2023	As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade	3,042,829	2,784,855
Electronically recorded obligations -	752,007	835,082
operating
Short-term borrowings	19,219,451	14,866,004
Current portion of long-term borrowings	500,000	－
Income taxes payable	666,820	1,671,099
Provision for bonuses	267,683	331,725
Other	2,958,751	3,232,223
Total current liabilities	27,407,544	23,720,989
Non-current liabilities
Retirement benefit liability	250,282	554,119
Other	1,307,385	1,409,859
Total non-current liabilities	1,557,667	1,963,978
Total liabilities	28,965,211	25,684,968
Net assets
Shareholders' equity
Share capital	2,019,181	2,019,181
Capital surplus	1,859,981	1,859,981
Retained earnings	5,954,733	6,731,654
Treasury shares	(2,446)	(2,486)
Total shareholders' equity	9,831,450	10,608,331
Accumulated other comprehensive income
Valuation difference on available-for-	46,983	111,332
sale securities
Foreign currency translation adjustment	1,150,421	1,298,906
Remeasurements of defined benefit plans	137,665	(105,178)
Total accumulated other comprehensive	1,335,070	1,305,061
income
Total net assets	11,166,521	11,913,392
Total liabilities and net assets	40,131,732	37,598,361

5

HARADA INDUSTRY CO., LTD.

Consolidated Statements of Income

		(Thousands of yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2023	March 31, 2024
Net sales	42,105,413	46,993,276
Cost of sales	35,042,136	38,333,910
Gross profit	7,063,277	8,659,366
Selling, general and administrative expenses	7,785,250	7,633,232
Operating profit (loss)	(721,973)	1,026,134
Non-operating income
Interest income	16,470	64,840
Refund received	－	66,408
Other	204,756	97,415
Total non-operating income	221,227	228,664
Non-operating expenses
Interest expenses	331,795	610,295
Foreign exchange losses	51,530	85,655
Other	15,348	40,014
Total non-operating expenses	398,673	735,965
Ordinary profit (loss)	(899,419)	518,833
Extraordinary income
Gain on sale of non-current assets	5,567	3,410,443
Total extraordinary income	5,567	3,410,443
Extraordinary losses
Business restructuring expenses	92,604	1,513,295
Loss of COVID19	88,270	－
Loss on valuation of inventories	42,775	－
Other	7,078	3,074
Total extraordinary losses	230,728	1,516,370
Profit (loss) before income taxes	(1,124,581)	2,412,906
Income taxes - current	352,243	1,819,545
Income taxes for prior periods	88,529	－
Income taxes - deferred	(34,150)	(292,313)
Total income taxes	406,622	1,527,232
Profit (loss)	(1,531,203)	885,674
Profit attributable to non-controlling	－	－
interests
Profit (loss) attributable to owners of parent	(1,531,203)	885,674

6

HARADA INDUSTRY CO., LTD.

Consolidated Statements of Comprehensive Income

		(Thousands of yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2023	March 31, 2024
Profit (loss)	(1,531,203)	885,674
Other comprehensive income
Valuation difference on available-for-sale	16,481	64,349
securities
Foreign currency translation adjustment	1,411,076	148,485
Remeasurements of defined benefit plans, net	173,491	(242,843)
of tax
Total other comprehensive income	1,601,050	(30,008)
Comprehensive income	69,846	855,665
Comprehensive income attributable to
Comprehensive income attributable to owners	69,846	855,665
of parent
Comprehensive income attributable to non-	－	－
controlling interests

7

HARADA INDUSTRY CO., LTD.

Consolidated Statements of Changes in Net Assets

(April 1, 2022 to March 31, 2023)

							(Thousands of yen)
			Shareholders' equity
							Total
	Share capital	Capital surplus		Retained earnings		Treasury shares	shareholders'
							equity
Balance at beginning of period	2,019,181	1,859,981		7,594,691		△2,446	11,471,407
Changes during period
Dividends of surplus				(108,753)			(108,753)
Profit (loss) attributable to				(1,531,203)			(1,531,203)
owners of parent
Purchase of treasury shares							－
Net changes in items other
than shareholders' equity
Total changes during period	－	－		(1,639,957)		－	(1,639,957)
Balance at end of period	2,019,181	1,859,981		5,954,733		(2,446)	9,831,450
		Accumulated other comprehensive income
	Valuation	Foreign currency		Remeasurements of		Total accumulated	Total net assets
	difference on			other
	translation		defined benefit
	available-for-			comprehensive
	adjustment		plans
	sale securities			income
Balance at beginning of period	30,501	(260,655)		(35,825)		(265,979)	11,205,428
Changes during period
Dividends of surplus							(108,753)
Profit (loss) attributable to							(1,531,203)
owners of parent
Purchase of treasury shares							－
Net changes in items other	16,481	1,411,076		173,491		1,601,050	1,601,050
than shareholders' equity
Total changes during period	16,481	1,411,076		173,491		1,601,050	(38,907)
Balance at end of period	46,983	1,150,421		137,665		1,335,070	11,166,521

8

HARADA INDUSTRY CO., LTD.

(April 1, 2023 to March 31, 2024)

							(Thousands of yen)
			Shareholders' equity
							Total
	Share capital	Capital surplus		Retained earnings		Treasury shares	shareholders'
							equity
Balance at beginning of period	2,019,181	1,859,981		5,954,733		(2,446)	9,831,450
Changes during period
Dividends of surplus				(108,753)			(108,753)
Profit (loss) attributable to				885,674			885,674
owners of parent
Purchase of treasury shares						(40)	(40)
Net changes in items other
than shareholders' equity
Total changes during period	－	－		776,920		(40)	776,880
Balance at end of period	2,019,181	1,859,981		6,731,654		(2,486)	10,608,331
		Accumulated other comprehensive income
	Valuation	Foreign currency		Remeasurements of		Total accumulated	Total net assets
	difference on			other
	translation		defined benefit
	available-for-			comprehensive
	adjustment		plans
	sale securities			income
Balance at beginning of period	46,983	1,150,421		137,665		1,335,070	11,166,521
Changes during period
Dividends of surplus							(108,753)
Profit (loss) attributable to							885,674
owners of parent
Purchase of treasury shares							(40)
Net changes in items other	64,349	148,485		(242,843)		(30,008)	(30,008)
than shareholders' equity
Total changes during period	64,349	148,485		(242,843)		(30,008)	746,871
Balance at end of period	111,332	1,298,906		(105,178)		1,305,061	11,913,392

9