Hokuetsu Industries : Consolidated Financial Results for the Fiscal Year Ended March 31,2022(Under Japanese GAAP)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

May 10, 2022

	Consolidated Financial Results
	for the Fiscal Year Ended March 31, 2022
	(Under Japanese GAAP)
Company name:	Hokuetsu Industries Co., Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	6364
URL:	https://www.airman.co.jp/
Representative:	Yoshimasa Horiuchi, President, CEO
Inquiries:	Goichi Sato, Director, General Manager of Administration Dept.
Telephone:	[phone]
Scheduled date of annual general meeting of shareholders:	June 28, 2022
Scheduled date to commence dividend payments:	June 29, 2022
Scheduled date to file annual securities report:	June 28, 2022
Preparation of supplementary material on financial results:	Yes
Holding of financial results briefing:	Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Consolidated operating results				(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
March 31, 2022	36,650		11.3	3,570	43.4	4,055	38.8	2,748	41.4
March 31, 2021	32,929		(21.2)	2,489	(53.2)	2,920	(46.5)	1,944	(46.3)

Note: Comprehensive income	For the fiscal year ended March 31, 2022:	¥2,516 million	[6.1%]
		For the fiscal year ended March 31, 2021:	¥2,370 million	[(27.2)%]
	Basic earnings	Diluted earnings	Return on equity	Ratio of ordinary	Ratio of operating
	per share	per share	profit to total	profit to net sales
		assets
Fiscal year ended		Yen	Yen	%	%	%
March 31, 2022		95.76	-	9.0	9.1	9.7
March 31, 2021		67.20	-	6.6	6.6	7.6
Reference: Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2022:	¥84 million
For the fiscal year ended March 31, 2021:	¥22 million

(2) Consolidated financial position

		Total assets	Net assets	Equity-to-asset ratio	Net assets per share
As of		Millions of yen	Millions of yen	%	Yen
March 31, 2022		45,827	31,303	68.0	1,097.97
March 31, 2021		43,379	29,962	68.8	1,036.37
Reference: Equity
	As of March 31, 2022:	¥31,161 million
	As of March 31, 2021:	¥29,834 million

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at end of
	operating activities	investing activities	financing activities
	period
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2022	2,276	(615)	(2,222)	10,613
March 31, 2021	4,099	(2,017)	(1,731)	11,049

2. Cash dividends

		Annual dividends per share		Total cash	Payout ratio	Ratio of
	First	Second	Third			dividends to
	Fiscal		dividends
	quarter-	quarter-	quarter-	Total	(Consolidated)	net assets
	year-end	(Total)
	end	end	end			(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Fiscal year ended	-	5.00	-	17.00	22.00	640	32.7	2.2
March 31, 2021
Fiscal year ended	-	10.00	-	20.00	30.00	865	31.3	2.8
March 31, 2022
Fiscal year ending	-	10.00	-	20.00	30.00		30.8
March 31, 2023
(Forecast)

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes.)

								Profit attributable to	Basic
	Net sales		Operating profit	Ordinary profit	earnings per
		owners of parent
								share
	Millions of		%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen		yen	yen	yen
Six months ending	19,500		15.5	1,620	(3.8)	1,700	(5.2)	1,190	(3.7)	41.93
September 30, 2022
Fiscal year ending	40,000		9.1	3,820	7.0	4,000	(1.4)	2,760	0.4	97.25
March 31, 2023

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None

Note: For details, please refer to "3. Consolidated Financial Statements and Important Notes (5) Notes to Consolidated Financial Statements (Changes in Accounting Policies)" on the attached page 14.

(3) Number of issued shares (common shares)

(i) Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2022	30,165,418 shares
As of March 31, 2021	30,165,418 shares

(ii) Number of treasury shares at the end of the period

As of March 31, 2022	1,784,261 shares
As of March 31, 2021	1,377,850 shares

(iii) Average number of shares outstanding during the period

Fiscal year ended March 31, 2022	28,703,998 shares
Fiscal year ended March 31, 2021	28,935,921 shares

Note: The number of treasury shares at the end of the period includes the Company's shares (345,900 shares for the fiscal year ended March 31, 2022 and 339,700 shares for the fiscal year ended March 31, 2021) held by "Custody Bank of Japan, Ltd. (Trust Account E)." The Company's shares held by "Custody Bank of Japan, Ltd. (Trust Account E)" are included in treasury shares, which is deducted from the average number of shares outstanding during the period (329,823 shares for the fiscal year ended March 31, 2022 and 318,862 shares for the fiscal year ended March 31, 2021).

(Reference) Overview of non-consolidated financial results

Non-consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Non-consolidated operating results				(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit
Fiscal year ended	Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen	%
March 31, 2022	35,539		18.6	2,179		45.3	3,090	46.4	2,128	49.4
March 31, 2021	29,975		(21.7)	1,500		(48.4)	2,110	(43.2)	1,424	(45.0)
	Basic earnings	Diluted earnings
	per share		per share
Fiscal year ended			Yen			Yen
March 31, 2022			74.16			-
March 31, 2021			49.23			-

(2) Non-consolidated financial position

		Total assets	Net assets	Equity-to-asset ratio	Net assets per share
As of		Millions of yen	Millions of yen	%	Yen
March 31, 2022		37,611	23,252	61.8	819.28
March 31, 2021		35,556	22,685	63.8	788.02
Reference: Equity
	As of March 31, 2022:	¥23,252 million
	As of March 31, 2021:	¥22,685 million

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements and others)
  The forward-looking statements, including earnings forecasts, contained in this material are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Moreover, actual business and other results may differ from the forecast due to various factors going forward. Please refer to "1. Overview of operating results and others, (1) Overview of operating results for the fiscal year" on page 2 for the assumptions used in the forecast of financial results and precautionary remarks regarding the use of the forecast of financial results.
  (How to obtain supplementary material on financial results)
  The Company is scheduled to hold a financial results briefing for institutional investors and analysts on Monday, May 30, 2022.
  Supplementary material on financial results to be used in this financial results briefing will be posted on the Company's website shortly after the briefing.

	Hokuetsu Industries Co., Ltd. (6364)
	Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
Attachment: Table of contents
	Index
1 Overview of operating results and others .................................................................................................	2
(1)	Overview of operating results for the fiscal year ...............................................................................	2
(2)	Overview of financial position for the fiscal year ..............................................................................	3
(3)	Basic policy on profit distribution and dividends for the current and following fiscal years.............	4
2 Basic approach to selection of accounting standards................................................................................	5
3 Consolidated financial statements and significant notes thereto...............................................................	6
(1)	Consolidated balance sheet ................................................................................................................	6
(2)	Consolidated statements of income and comprehensive income .......................................................	8
	Consolidated statement of income......................................................................................................	8
	Consolidated statement of comprehensive income ............................................................................	9
(3)	Consolidated statement of changes in equity ...................................................................................	10
(4)	Consolidated statement of cash flows ..............................................................................................	12
(5)	Notes to consolidated financial statements.......................................................................................	14
	(Notes on the going-concern assumption)........................................................................................	14
	(Changes in accounting policies)......................................................................................................	14
	(Change in presentation) ..................................................................................................................	15
	(Additional information) ..................................................................................................................	15
	(Consolidated balance sheet)............................................................................................................	16
	(Consolidated statement of income).................................................................................................	16
	(Consolidated statement of changes in equity).................................................................................	17
	(Consolidated statement of cash flows)............................................................................................	20
	(Segment information, etc.)..............................................................................................................	20
	(Per-share information) ....................................................................................................................	22
	(Significant subsequent events)........................................................................................................	22
4 Others......................................................................................................................................................	23

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