Eagle Industry : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022

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 Three Months Ended June 30, 2022 (Based on Japanese GAAP)

				August 2, 2022
Company name:	Eagle Industry Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	6486	URL https://www.ekkeagle.com/jp/
Representative:	Representative Director, President	Tetsuji Tsuru
Inquiries:	Operating Officer, General Manager	Yoshinobu Murata	TEL [phone]
Corporate Finance & Accounting Office
Scheduled date to file Quarterly Securities Report:	August 12, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

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
	Millions of yen		%	Millions of yen		%	Millions of yen			%	Millions of yen		%
Three months ended June 30, 2022	36,614		1.8		1,945		(22.5)		3,637			8.3		1,623		(20.9)
Three months ended June 30, 2021	35,970		40.6		2,510		-		3,360			-		2,052		-
	Earnings per share		Diluted earnings per share
			Yen						Yen
Three months ended June 30, 2022			33.04						-
Three months ended June 30, 2021			41.81						-
(2) Consolidated financial position
	Total assets				Net assets		Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%				Yen
As of June 30, 2022	187,734		108,592				52.8		2,017.55
As of March 31, 2022	180,955		103,094				52.1		1,920.35
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, 2022		-			25.00				-				25.00			50.00
Year ending March 31, 2023		-
Year ending March 31, 2023 (Forecast)					25.00				-				25.00			50.00

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%	Yen
75,400	9.9	2,900	(26.1)	4,900		(3.5)	3,000	(13.9)	61.07
September 30, 2022
Full year	153,100	8.7	8,400	11.1	11,400		5.4	7,200	26.0	146.57

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2022 (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

Yes

(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 June 30, 2022	49,757,821	shares	As of March 31, 2022	49,757,821	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	634,714	shares	As of March 31, 2022	634,564	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2022	49,123,182	shares	Three months ended June 30, 2021	49,083,735	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	28,806	30,366
Notes and accounts receivable - trade, and contract assets	30,207	29,198
Electronically recorded monetary claims - operating	5,248	5,493
Merchandise and finished goods	10,169	11,029
Work in process	6,910	7,459
Raw materials and supplies	10,477	12,320
Other	6,600	5,890
Allowance for doubtful accounts	(96)	(94)
Total current assets	98,323	101,662
Non-current assets
Property, plant and equipment
Buildings and structures, net	22,532	23,200
Machinery, equipment and vehicles, net	21,972	22,162
Other, net	14,534	16,276
Total property, plant and equipment	59,039	61,638
Intangible assets
Goodwill	1,266	1,158
Other	1,842	1,827
Total intangible assets	3,108	2,985
Investments and other assets
Investment securities	12,785	13,732
Other	7,806	7,822
Allowance for doubtful accounts	(108)	(107)
Total investments and other assets	20,483	21,447
Total non-current assets	82,631	86,071
Total assets		180,955	187,734

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			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Accounts payable - trade	9,180	8,648
Electronically recorded obligations - operating	2,512	2,907
Short-term borrowings	13,022	15,472
Income taxes payable	1,534	1,931
Provision for bonuses	2,679	1,940
Other provisions	770	913
Other	12,985	14,205
Total current liabilities	42,686	46,019
Non-current liabilities
Long-term borrowings	17,732	15,448
Provisions	316	319
Retirement benefit liability	15,412	15,463
Other	1,713	1,890
Total non-current liabilities	35,174	33,122
Total liabilities	77,860	79,142
Net assets
Shareholders' equity
Share capital	10,490	10,490
Capital surplus	11,296	11,296
Retained earnings	71,483	71,878
Treasury shares	(213)	(213)
Total shareholders' equity	93,057	93,452
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	458	471
Foreign currency translation adjustment	2,950	7,241
Remeasurements of defined benefit plans	(2,133)	(2,057)
Total accumulated other comprehensive income	1,275	5,655
Non-controlling interests	8,761	9,484
Total net assets	103,094	108,592
Total liabilities and net assets		180,955	187,734

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2021	June 30, 2022
Net sales	35,970	36,614
Cost of sales	27,177	28,036
Gross profit	8,792	8,577
Selling, general and administrative expenses	6,282	6,632
Operating profit	2,510	1,945
Non-operating income
Interest income	49	83
Dividend income	8	10
Share of profit of entities accounted for using equity method	485	319
Foreign exchange gains	188	1,086
Other	233	291
Total non-operating income	965	1,791
Non-operating expenses
Interest expenses	92	92
Other	23	7
Total non-operating expenses	116	99
Ordinary profit	3,360	3,637
Extraordinary income
Gain on sale of non-current assets	2	20
Total extraordinary income	2	20
Extraordinary losses
Loss on sale of non-current assets	4	2
Loss on retirement of non-current assets	16	4
Total extraordinary losses	21	7
Profit before income taxes	3,341	3,650
Income taxes	889	1,636
Profit	2,452	2,014
Profit attributable to non-controlling interests	399	390
Profit attributable to owners of parent		2,052	1,623

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