Hoshizaki : 【Delayed】Consolidated Financial Results for the Three Months Ended March 31, 2021(Based on Japanese GAAP)

Translation

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.

Summary of Consolidated Financial Results for the Three Months Ended March 31, 2021 (Based on Japanese GAAP)

				May 12, 2021
Company name:	HOSHIZAKI CORPORATION
Stock exchange listing:	First Section of the Tokyo Stock Exchange and Nagoya Stock Exchange
Securities code:	6465	URL: http://www.hoshizaki.co.jp
Representative:	Representative Director, President & COO Yasuhiro Kobayashi
Inquiries:	Executive Officer	Tadashi Mizutani	TEL: [phone]
Scheduled date to file Quarterly Securities Report:	May 14, 2021
Scheduled date to commence dividend payments:	-
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 three months ended March 31, 2021 (from January 1, 2021 to March 31, 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	%
Three months ended March 31, 2021	68,556	(5.5)		7,722	(19.2)	11,297	35.4	7,790	41.5
Three months ended March 31, 2020	72,568	(4.6)		9,559	(0.9)	8,345	(18.8)	5,503	(21.8)
Note: Comprehensive income Three months ended March 31, 2021		¥13,178 million[242.1%]
Three months ended March 31, 2020			¥3,852 million [(48.2)%]
	Earnings per share		Diluted earnings per share
		Yen			Yen
Three months ended March 31, 2021		107.57				-
Three months ended March 31, 2020		76.00				-

1. Consolidated financial position

			Total assets	Net assets	Equity ratio	Net assets per share
			Millions of yen	Millions of yen	%	Yen
As of March 31, 2021			357,255	244,923	68.1	3,357.67
As of December 31, 2020		343,393	239,711	69.3	3,288.35
Reference: Equity	As of March 31, 2021		¥243,163 million
	As of December 31, 2020	¥238,143 million

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 December 31, 2020	-	0.00	-	110.00	110.00
Year ending December 31, 2021	-
Year ending December 31, 2021		0.00	-	110.00	110.00
(Forecast)
Note: Revision of cash dividend forecast most recently announced: No

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

(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	250,000	4.9	20,000		8.4	20,500	17.7	14,300	25.0	197.46

Note: Revision of consolidated financial results forecast most recently announced: No

*Notes
(1) Changes in significant subsidiaries during the three months ended March 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):	No

1. Application of special accounting for preparing quarterly consolidated financial statements: Yes
2. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

a. Changes in accounting policies due to revisions to accounting standards and other	No
regulations:
b. Changes in accounting policies due to other reasons:	No
c. Changes in accounting estimates:	No
d. Restatement of prior period financial statements:	No

1. Number of issued shares (common shares)
   a. Total number of issued shares at the end of the period (including treasury shares)

	As of March 31, 2021	72,421,650	shares	As of December 31, 2020	72,421,650	shares
b. Number of treasury shares at the end of the period
	As of March 31, 2021	1,279	shares	As of December 31, 2020	1,230	shares

1. Average number of shares during the period (cumulative from the beginning of the fiscal year)

Three months ended March 31, 2021

72,420,395 shares

Three months ended March 31, 2020

72,420,619 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual business and other results may differ substantially due to various factors.

	Attached Materials
	Index
1. Qualitative information on the quarterly financial results ...................................................................................................	2
(1)	Operating results..............................................................................................................................................................	2
(2)	Financial position ............................................................................................................................................................	2
(3)	Explanation of consolidated earnings forecasts and other forward-looking statements..................................................	3
2. Quarterly consolidated financial statements ........................................................................................................................	4
(1)	Consolidated balance sheets ............................................................................................................................................	4
(2)	Consolidated statements of income (cumulative) and consolidated statements of comprehensive	income
	(cumulative).....................................................................................................................................................................	5
	Consolidated statements of income (cumulative) .............................................................................................................	5
	Consolidated statements of comprehensive income (cumulative) ....................................................................................	6
(3)	Notes to quarterly consolidated financial statements ......................................................................................................	7
	Notes on premise of going concern...................................................................................................................................	7
	Notes on significant changes in the amount of shareholders' equity ................................................................................	7
	Application of special accounting for preparing quarterly consolidated financial statements..........................................	7
	Changes in accounting policies.........................................................................................................................................	7
	Changes in accounting estimates ......................................................................................................................................	7
	Segment information, etc. .................................................................................................................................................	7

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1. Qualitative information on the quarterly financial results

1. Operating results
   The Japanese economy during the three months ended March 31, 2021 saw adverse conditions due to the impact of the state of emergency covering 11 prefectures that was declared in January as a measure against the spread of the new coronavirus infections (COVID-19) that has continued to spread, primarily in urban areas.
   Overseas, despite signs of recovery in some regions, such as the U.S., where COVID-19 vaccinations are progressing, the global economy saw adverse conditions due to factors such as lockdowns in response to the spread of COVID-19 in Europe.
   Amid such circumstances, in Japan, while working to prevent the spread of COVID-19, the Group focused on expanding sales in the restaurant market, and reaching new customers, in addition to striving to obtain customers other than restaurants, such as medical institutions, long-term care health facilities and nursery schools.
   Overseas, despite the gradual recovery of sales due to the economic recovery of the Americas and Asia, the situation remained largely affected by the re-emergence of COVID-19, with restrictions on sales and production activities due to lockdowns, etc in Europe.
   As a result of the above initiatives, the Group reported operating results for the three months ended March 31, 2021 with net sales of ¥68,556 million (down 5.5% year-on-year). Operating profit was ¥7,722 million (down 19.2% year- on-year). In addition, owing to the recording of foreign exchange gains of ¥3,355 million arising from the translation of foreign-currency assets held to Japanese yen, ordinary profit was ¥11,297 million (up 35.4% year-on-year) and profit attributable to owners of parent was ¥7,790 million (up 41.5% year-on-year).
   Operating results by segment are as follows.

1. Japan

In Japan, the Group continued to promote sales expansion of refrigerators, ice machines, dishwashers, electrolytic water generators, and other products, and cultivate new customers while providing support to customers seeking to expand into the take-out and delivery business in response to the COVID-19 crisis. In addition, despite proactively working to obtain customers other than restaurants by taking advantage of support for hygiene management, etc., the Group generated net sales of ¥48,021 million (down 5.1% year-on-year) and segment profit of ¥6,095 million (down 15.8% year-on-year) as a result of the impact of the spread of COVID-19 and other factors.

1. Americas

In the Americas, despite working to expand sales of products, such as ice makers and dispensers while continuing to reduce costs, the Group generated net sales of ¥12,948 million (down 13.5% year-on-year) and segment profit of ¥1,167 million (down 33.3% year-on-year) as a result of the decline in the order environment due to the impact of the spread of COVID-19.

1. Europe / Asia

In Europe and Asia, the Group promoted sales of flagship products while continuing to reduce costs. Despite the impact of restrictions on sales and production activities and the deteriorating order environment due to the lockdowns implemented in Europe and other factors, the Group generated net sales of ¥9,127 million (up 7.0% year-on-year) and segment profit of ¥691 million (down 0.3% year-on-year) as a result of the recovery of demand due to economic recovery in some regions in Asia.

1. Financial position
   Total assets as of March 31, 2021 increased ¥13,861 million from December 31, 2020 to ¥357,255 million.
   Current assets increased ¥11,585 million from December 31, 2020 to ¥288,826 million. The main factor was an increase in notes and accounts receivable - trade.
   Non-current assets increased ¥2,275 million from December 31, 2020 to ¥68,428 million. The main factor was an increase in investments and other assets.
   Total liabilities as of March 31, 2021 increased ¥8,649 million from December 31, 2020 to ¥112,331 million.
   Current liabilities increased ¥8,688 million from December 31, 2020 to ¥88,953 million. The main factor was an increase in notes and accounts payable - trade.
   Non-current liabilities decreased ¥38 million from December 31, 2020 to ¥23,377 million. The main factor was a

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decrease in other provisions.

Net assets as of March 31, 2021 increased ¥5,211 million from December 31, 2020 to ¥244,923 million.

1. Explanation of consolidated earnings forecasts and other forward-looking statements There are currently no changes to the earnings forecasts announced on February 8, 2021.

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