[Delayed] Summary of Consolidated Financial Results for the Six Months Ended September 30,2021（Based on Japanese GAAP）

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 2, 2021

Company name:

HIRAKAWA HEWTECH CORP.

Stock exchange listing:

Tokyo

Stock code:

5821

URL

https://www.hewtech.co.jp

Representative:

CEO

Yuichi Shino

Inquiries:

Accounting Div. Manager

Kazuaki Hoshi

TEL

03-3457-1400

Scheduled date to file Quarterly Securities Report:

November 5, 2021

Scheduled date to commence dividend payments:

December 8, 2021

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(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

13,998

32.1

1,103

48.7

1,062

44.1

747

35.4

Six months ended September 30, 2020

10,600

(16.9)

741

(41.9)

737

(39.9)

552

(40.7)

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended September 30, 2021

53.20

-

Six months ended September 30, 2020

39.30

-

(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

38,545

28,266

73.3

2,011.91

As of March 31, 2021

37,184

27,485

73.9

1,956.59

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

-

12.00

-

13.00

25.00

Year ending March 31, 2022

-

13.50

Year ending March 31, 2022 (Forecast)

-

13.50

27.00

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	25,000	8.9	2,000	18.0	2,000		5.4	1,500	38.6	106.78

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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

No

(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	17,627,800	shares	As of March 31, 2021	17,627,800	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	3,580,382	shares	As of March 31, 2021	3,580,382	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2021	14,047,418	shares	Six months ended September 30, 2020	14,047,458	shares

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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	8,299	8,339
Notes and accounts receivable - trade	7,431	-
Notes and accounts receivable - trade, and contract assets	-	7,927
Securities	200	100
Merchandise and finished goods	1,818	2,121
Work in process	647	701
Raw materials and supplies	2,344	2,863
Other	557	557
Allowance for doubtful accounts	(4)	(5)
Total current assets	21,293	22,606
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,787	4,655
Machinery, equipment and vehicles, net	3,997	3,971
Land	2,396	2,396
Other, net	1,751	1,781
Total property, plant and equipment	12,932	12,805
Intangible assets	895	910
Investments and other assets	2,062	2,222
Total non-current assets	15,891	15,938
Total assets		37,184	38,545

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			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	1,832	2,181
Short-term borrowings	1,779	1,930
Income taxes payable	228	282
Provision for bonuses	59	211
Provision for loss on disaster	6	-
Other	1,004	1,077
Total current liabilities	4,910	5,683
Non-current liabilities
Long-term borrowings	2,499	2,421
Retirement benefit liability	2,027	2,026
Provision for retirement benefits for directors (and other	46	49
officers)
Other	215	97
Total non-current liabilities	4,788	4,595
Total liabilities	9,699	10,279
Net assets
Shareholders' equity
Share capital	1,555	1,555
Capital surplus	1,459	1,459
Retained earnings	24,922	25,487
Treasury shares	(2,340)	(2,340)
Total shareholders' equity	25,597	26,161
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	580	671
Deferred gains or losses on hedges	-	2
Foreign currency translation adjustment	1,285	1,408
Remeasurements of defined benefit plans	22	18
Total accumulated other comprehensive income	1,887	2,100
Non-controlling interests	-	4
Total net assets	27,485	28,266
Total liabilities and net assets		37,184	38,545

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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	10,600	13,998
Cost of sales	7,969	10,874
Gross profit	2,630	3,124
Selling, general and administrative expenses	1,888	2,020
Operating profit	741	1,103
Non-operating income
Interest income	21	11
Dividend income	12	17
Subsidy income	20	3
Other	22	21
Total non-operating income	77	54
Non-operating expenses
Interest expenses	7	8
Foreign exchange losses	47	69
Other	26	16
Total non-operating expenses	82	95
Ordinary profit	737	1,062
Profit before income taxes	737	1,062
Income taxes - current	222	342
Income taxes - deferred	(37)	(28)
Total income taxes	185	313
Profit	552	748
Profit attributable to non-controlling interests	-	1
Profit attributable to owners of parent		552	747

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