Shinmaywa Industries,ltd.TSE: 7224

Announcement of "Consolidated Financial Results for the Six Months Ended September 30, 2022"

Oct 31, 2022 at 7:19 AM UTC · Issued by Shinmaywa Industries,ltd.

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Six Months Ended September 30, 2022

[Japanese GAAP]

October 31, 2022

Company name: ShinMaywa Industries, Ltd.

Stock exchange listing: Tokyo

Code number: 7224

URL: https://www.shinmaywa.co.jp/

Representative: Tatsuyuki Isogawa ,President and Chief Executive Officer

Contact: Toshiki Kume ,Director, Member of the Board, Managing Executive Officer

Phone: 0798-56-5010

Scheduled date of filing quarterly securities report: November 11, 2022

Scheduled date of commencing dividend payments: December 01, 2022

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 01, 2022 to September 30, 2022)

(1) Consolidated Operating Results				(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent

Six months ended	Million yen		%	Million yen		%	Million yen	%	Million yen	%
September 30, 2022	104,001		3.7	3,206		(27.8)	4,168	(11.3)	2,871	(14.6)
September 30, 2021	100,264		6.9	4,438		16.6	4,698	22.9	3,362	59.6

(Note) Comprehensive income:	Six months ended September 30, 2022:
	Six months ended September 30, 2021:

¥	5,044 million	[	41.5%]
¥	3,564 million	[	34.1%]

	Basic earnings	Diluted earnings per
	per share		share
Six months ended	Yen			Yen
September 30, 2022	43.60			-
September 30, 2021	51.11			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio

As of	Million yen			Million yen	%
September 30, 2022	221,118			97,080	43.2
March 31, 2022	221,206			94,261	41.8
(Reference) Equity: As of	September 30, 2022:	¥	95,434 million
As of	March 31, 2022:	¥	92,465 million

2. Dividends

					Annual dividends

		1st	2nd	3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end

		Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2022		-		19.00	-		23.00	42.00
Fiscal year ending March 31, 2023		-		21.00

Fiscal year ending March 31, 2023					-		21.00	42.00
(Forecast)

(Note) Revision to the forecast for dividends	announced most	recently:	No
(Note) Breakdown of the 2nd quarter dividend for the fiscal year ending March 31, 2023 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 01, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

			Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
				owners of parent	per share

			Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year			222,000		2.4	7,000	(33.8)	8,200	(30.6)	5,600	(18.9)	84.96
(Note) Revision to the financial results forecast announced most recently:	Yes
* Notes:
(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New	-	(Company name:								)
Exclusion:	-	(Company name:								)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

Changes in accounting policies, changes in accounting estimates and retrospective restatement
1. Changes in accounting policies due to the revision of accounting standards: No
2. Changes in accounting policies other than 1) above: No
3. Changes in accounting estimates: No
4. Retrospective restatement: No
Total number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury shares):

September 30, 2022:	70,000,000	shares
March 31, 2022:	70,000,000	shares
2) Total number of treasury shares at the end of the period:
September 30, 2022:	4,085,354	shares
March 31, 2022:	4,166,255	shares

3) Average number of shares during the period:
Six months ended September 30, 2022:	65,868,378	shares
Six months ended September 30, 2021:	65,782,783	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Million yen)
			As of March 31,2022	As of September 30,2022

Assets
	Current assets
		Cash and deposits	26,600	17,239
		Notes and accounts receivable - trade, and contract	62,114	59,054
		assets

		Electronically recorded monetary claims -	8,831	13,714
		operating

		Merchandise and finished goods	4,067	4,719
		Work in process	21,619	24,257
		Raw materials and supplies	21,238	23,633
		Other	4,266	5,936
		Allowance for doubtful accounts	(121)	(139)
		Total current assets	148,615	148,415
	Non-current assets
		Property, plant and equipment
		Buildings and structures, net	19,185	19,113
		Other, net	23,244	23,394
		Total property, plant and equipment	42,430	42,507
		Intangible assets	2,876	2,811
		Investments and other assets
		Other	27,310	27,409
		Allowance for doubtful accounts	(26)	(25)
		Total investments and other assets	27,284	27,383
		Total non-current assets	72,590	72,703
	Total assets	221,206	221,118

				(Million yen)
			As of March 31,2022	As of September 30,2022

Liabilities
	Current liabilities
		Notes and accounts payable - trade	25,898	26,237
		Current portion of bonds payable	800	800
		Short-term borrowings	2,891	7,257
		Current portion of long-term borrowings	2,443	2,257
		Income taxes payable	2,527	941
		Provision for loss on construction contracts	3,194	3,321
		Other	28,147	23,793
		Total current liabilities	65,903	64,609
	Non-current liabilities
		Bonds payable	1,600	1,200
		Long-term borrowings	44,519	43,344
		Retirement benefit liability	12,962	12,992
		Other	1,959	1,891
		Total non-current liabilities	61,041	59,428
	Total liabilities	126,945	124,038
Net assets
	Shareholders' equity
		Share capital	15,981	15,981
		Capital surplus	15,737	15,657
		Retained earnings	65,852	67,178
		Treasury shares	(5,954)	(5,838)
		Total shareholders' equity	91,617	92,980
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	1,096	783
		securities

		Revaluation reserve for land	(376)	(376)
		Foreign currency translation adjustment	821	2,172
		Remeasurements of defined benefit plans	(694)	(126)
		Total accumulated other comprehensive income	847	2,454
	Non-controlling interests	1,795	1,646
	Total net assets	94,261	97,080
Total liabilities and net assets	221,206	221,118

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

			(Million yen)
		For the six months	For the six months
		ended September 30,2021	ended September 30,2022

Net sales	100,264	104,001
Cost of sales	84,778	88,550
Gross profit	15,485	15,451
Selling, general and administrative expenses	11,046	12,245
Operating profit	4,438	3,206
Non-operating income
	Interest income	28	32
	Dividend income	110	113
	Share of profit of entities accounted for using equity	51	44
	method

	Foreign exchange gains	103	1,040
	Other	175	91
	Total non-operating income	469	1,323
Non-operating expenses
	Interest expenses	98	113
	Cost of inactive noncurrent assets	64	73
	Borrowing fees	6	5
	Loss on securitization of receivables	5	21
	Other	34	147
	Total non-operating expenses	209	361
Ordinary profit	4,698	4,168
Extraordinary income
	Gain on sale of investment securities	-	202
	Gain on bargain purchase	486	-
	Total extraordinary income	486	202
Extraordinary losses
	Loss on disposal of non-current assets	115	38
	Total extraordinary losses	115	38
Profit before income taxes	5,069	4,331
Income taxes - current	1,168	948
Income taxes - deferred	473	84
Total income taxes	1,642	1,032
Profit	3,426	3,298
Profit attributable to non-controlling interests	64	426
Profit attributable to owners of parent	3,362	2,871

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