Note: This document has been translated from a part of 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.

August 5, 2022

Consolidated Financial Results

for the Three Months Ended June 30, 2022

(Under Japanese GAAP)

Company name:

Showa Sangyo Co., Ltd.

Listing:

Tokyo Stock Exchange

Securities code:

2004

URL:

https://www.showa-sangyo.co.jp/

Representative:

Kazuhiko Niitsuma, President and CEO

Inquiries:

Hidenori Takahashi, General Manager of General Affairs Dept.

Telephone:

+81-3-3257-2182

Scheduled date to file quarterly securities report:

August 10, 2022

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results: None

Holding of quarterly financial results briefing:

None

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

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

June 30, 2022

80,688

17.1

1,815

74.1

2,181

61.8

1,426

73.3

June 30, 2021

68,875

12.7

1,042

(54.4)

1,347

(50.5)

823

(57.1)

Note: Comprehensive income

For the three months ended June 30, 2022:

¥1,969 million

[107.3%]

For the three months ended June 30, 2021:

¥949 million

[(65.5)%]

Basic earnings

Diluted earnings

per share

per share

Three months ended

Yen

Yen

June 30, 2022

42.70

-

June 30, 2021

25.25

-

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

As of

Millions of yen

Millions of yen

%

June 30, 2022

236,732

110,022

45.0

March 31, 2022

231,306

109,089

45.7

Reference: Equity

As of June 30, 2022:

¥106,620 million

As of March 31, 2022:

¥105,697 million

1

2. Cash dividends

Annual dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

-

30.00

-

30.00

60.00

March 31, 2022

Fiscal year ending

-

March 31, 2023

Fiscal year ending

30.00

-

30.00

60.00

March 31, 2023

(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: Yes

Regarding the dividends forecast, please refer to "Notice Concerning Full-Year Earnings Forecasts (Consolidated/Non- consolidated) and Dividends Forecast," (in Japanese only) published today (August 5, 2022).

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

Full year

338,000

17.5

7,300

31.2

8,200

24.7

4,600

14.8

137.70

Note: Revisions to the earnings forecasts of most recently announced: Yes

Regarding the consolidated earnings forecasts, please refer to "Notice Concerning Full-Year Earnings Forecasts (Consolidated/Non-consolidated) and Dividends Forecast," (in Japanese only) published today (August 5, 2022).

As reference information, the Company has attached net sales and operating profit by reportable segment pertaining to the full- year consolidated earnings forecasts to "3. Supplementary Information, (1) Net sales and operating profit by reportable segment pertaining to the full-year consolidated earnings forecasts for the fiscal year ending March 31, 2023" on page 11 of the attached materials. (in Japanese only)

2

* Notes

  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
  2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
  3. Changes in accounting policies, changes in accounting estimates, and restatement
    1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
    2. Changes in accounting policies due to other reasons: None
    3. Changes in accounting estimates: None
    4. Restatement: None
  5. Number of issued shares (common shares)
    1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2022

33,985,420 shares

As of March 31, 2022

33,985,420 shares

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

As of June 30, 2022

556,851 shares

As of March 31, 2022

556,604 shares

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

Three months ended June 30, 2022

33,404,796 shares

Three months ended June 30, 2021

32,604,259 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. In no way is the Company asserting assurances or guarantees of the achievement of any future business plan targets or measures stated herein.
    For matters related to the financial results forecasts, please see "1. Qualitative information regarding settlement of accounts for the three months ended June 30, 2022, (3) Explanation of consolidated financial forecasts and other forward-looking statements" on page 3 of the attached materials (in Japanese only).

3

Quarterly consolidated financial statements

(1) Quarterly consolidated balance sheets

(Millions of yen)

As of March 31, 2022

As of June 30, 2022

Assets

Current assets

Cash and deposits

9,174

8,041

Notes and accounts receivable - trade

49,500

52,112

Merchandise and finished goods

13,541

14,505

Work in process

2,372

3,590

Raw materials and supplies

30,813

29,602

Other

3,918

4,881

Allowance for doubtful accounts

(69)

(58)

Total current assets

109,251

112,677

Non-current assets

Property, plant and equipment

Buildings and structures, net

31,536

34,089

Machinery, equipment and vehicles, net

24,154

26,310

Land

21,787

21,772

Other, net

7,437

3,026

Total property, plant and equipment

84,915

85,198

Intangible assets

Goodwill

1,265

1,229

Customer-related assets

2,252

2,187

Other

1,096

1,205

Total intangible assets

4,613

4,622

Investments and other assets

Investment securities

29,504

30,943

Retirement benefit asset

159

176

Other

2,969

3,221

Allowance for doubtful accounts

(107)

(107)

Total investments and other assets

32,525

34,234

Total non-current assets

122,054

124,055

Total assets

231,306

236,732

Liabilities

Current liabilities

Notes and accounts payable - trade

33,536

30,709

Short-term borrowings

16,322

18,006

Commercial papers

13,000

19,000

Income taxes payable

687

329

Provision for bonuses

1,850

967

Other

17,282

18,886

Total current liabilities

82,679

87,900

Non-current liabilities

Bonds payable

18,000

18,000

Long-term borrowings

4,494

3,448

Provision for retirement benefits for directors (and

33

34

other officers)

Retirement benefit liability

9,250

9,148

Other

7,758

8,177

Total non-current liabilities

39,536

38,809

Total liabilities

122,216

126,709

4

(Millions of yen)

As of March 31, 2022

As of June 30, 2022

Net assets

Shareholders' equity

Share capital

14,293

14,293

Capital surplus

7,768

7,768

Retained earnings

76,980

77,404

Treasury shares

(1,184)

(1,185)

Total shareholders' equity

97,858

98,281

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

7,336

7,489

Deferred gains or losses on hedges

217

412

Foreign currency translation adjustment

364

459

Remeasurements of defined benefit plans

(80)

(23)

Total accumulated other comprehensive income

7,839

8,338

Non-controlling interests

3,392

3,402

Total net assets

109,089

110,022

Total liabilities and net assets

231,306

236,732

5

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Showa Sangyo Co. Ltd. published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 06:50:22 UTC.