Hioki E E : (Delayed)Summary of Consolidated Financial Results for the Year Ended December 31, 2021 (Based on Japanese GAAP)

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 Year Ended December 31, 2021
			(Based on Japanese GAAP)
																				January 25, 2022
Company name:	HIOKI E.E. CORPORATION
Stock exchange listing:	Tokyo
Stock code:	6866	URL https://www.hioki.co.jp/
Representative:	President							Takahiro Okazawa
	Director, Senior Managing Executive Officer,
Inquiries:	Chief Financial Officer (CFO) and Director Yoshikazu Suyama	TEL [phone]
	of Administration Department
Scheduled date of ordinary general meeting of shareholders:	February 25, 2022
Scheduled date to file Securities Report:			February 28, 2022
Scheduled date to commence dividend payments:			February 28, 2022
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:							Yes	(for institutional investors and analysts)
												(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)
(1) Consolidated operating results													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		%
Year ended December 31, 2021		29,322		35.3	5,750		132.8		5,999	126.7		4,521		118.3
Year ended December 31, 2020		21,664		(5.0)	2,469		(13.5)		2,646	(10.8)	2,071		(5.7)
			Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
					share			owners of				assets			sales
										parent/equity
				Yen			Yen				%						%				%
Year ended December 31, 2021		331.35			-				16.3						18.0				19.6
Year ended December 31, 2020		151.91			-				8.1						9.1				11.4
(2) Consolidated financial position
			Total assets			Net assets		Equity ratio	Net assets per share
			Millions of yen	Millions of yen					%						Yen
As of December 31, 2021		36,391					29,454					80.9				2,158.34
As of December 31, 2020		30,440					26,012					85.5				1,907.33
(3) Consolidated cash flows
			Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended December 31, 2021					4,695					(826)					(1,434)					14,237
Year ended December 31, 2020					4,207					(1,018)					(885)					11,542
2. Cash dividends
							Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
																	to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen			Yen	Yen				Yen	Yen	Millions of yen		%			%
Year ended December 31, 2020		-		20.00	-				40.00	60.00		818		39.5			3.2
Year ended December 31, 2021		-		65.00	-				100.00	165.00		2,251		49.8			8.1
Year ending December 31, 2022		-			70.00	-				70.00	140.00				39.8
(Forecast)
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3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

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
15,750	7.6	3,090	(1.4)	3,150		(2.5)		2,400	(1.3)	175.89
June 30, 2022
Full year	31,500	7.4	6,180	7.5	6,300		5.0		4,800	6.2	351.78
4. Notes
(1) Changes in significant subsidiaries during the year ended December 31, 2021			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) 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:	No
Changes in accounting policies due to other reasons:						No
Changes in accounting estimates:								No
Restatement of prior period financial statements:						No

(3) Number of issued shares (common shares)

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

	As of December 31, 2021	14,024,365	shares	As of December 31, 2020	14,024,365	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	377,652	shares	As of December 31, 2020	385,975	shares
Average number of shares during the period
	Year ended December 31, 2021	13,644,746	shares	Year ended December 31, 2020	13,635,399	shares

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Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Assets
Current assets
Cash and deposits	13,323,366	16,017,461
Notes and accounts receivable - trade	2,346,128	3,357,039
Merchandise and finished goods	740,611	1,022,058
Work in process	472,779	659,497
Raw materials and supplies	1,197,417	2,691,016
Other	184,499	316,939
Allowance for doubtful accounts	(9,051)	(5,203)
Total current assets	18,255,752	24,058,808
Non-current assets
Property, plant and equipment
Buildings and structures	15,346,397	15,635,509
Accumulated depreciation	(7,964,702)	(8,390,157)
Buildings and structures, net	7,381,694	7,245,351
Machinery, equipment and vehicles	1,691,637	1,571,359
Accumulated depreciation	(1,320,885)	(1,279,218)
Machinery, equipment and vehicles, net	370,752	292,140
Tools, furniture and fixtures	6,030,766	6,157,203
Accumulated depreciation	(5,258,534)	(5,403,179)
Tools, furniture and fixtures, net	772,231	754,023
Land	1,992,142	1,998,862
Construction in progress	3,695	1,488
Total property, plant and equipment	10,520,516	10,291,868
Intangible assets
Software	309,096	356,643
Telephone subscription right	3,241	3,241
Software in progress	34,606	19,021
Total intangible assets	346,944	378,906
Investments and other assets
Investment securities	557,710	542,285
Deferred tax assets	506,458	854,070
Retirement benefit asset	9,005	8,266
Other	244,413	256,853
Total investments and other assets	1,317,588	1,661,476
Total non-current assets	12,185,048	12,332,250
Total assets		30,440,800	36,391,059

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			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	592,726	835,185
Income taxes payable	528,920	1,156,614
Accrued expenses	1,504,360	3,088,667
Other	387,047	609,308
Total current liabilities	3,013,055	5,689,776
Non-current liabilities
Deferred tax liabilities	7,174	6,826
Retirement benefit liability	882,073	725,626
Other	525,614	514,535
Total non-current liabilities	1,414,862	1,246,987
Total liabilities	4,427,917	6,936,764
Net assets
Shareholders' equity
Share capital	3,299,463	3,299,463
Capital surplus	3,952,139	3,968,885
Retained earnings	19,693,452	22,782,020
Treasury shares	(741,371)	(727,495)
Total shareholders' equity	26,203,683	29,322,874
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	160,495	148,034
Foreign currency translation adjustment	38,445	307,814
Remeasurements of defined benefit plans	(389,742)	(324,428)
Total accumulated other comprehensive income	(190,800)	131,420
Total net assets	26,012,882	29,454,295
Total liabilities and net assets		30,440,800	36,391,059

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		December 31, 2020	December 31, 2021
Net sales	21,664,170	29,322,002
Cost of sales	12,349,259	15,683,587
Gross profit	9,314,911	13,638,414
Selling, general and administrative expenses	6,845,066	7,888,005
Operating profit	2,469,844	5,750,408
Non-operating income
Interest income	4,969	5,824
Dividend income	21,045	21,880
Foreign exchange gains	-	54,708
Rental income from buildings	7,733	8,610
Subsidy income	106,031	63,127
Refund income	-	47,641
Other	71,048	55,494
Total non-operating income	210,830	257,288
Non-operating expenses
Interest expenses	5,722	7,870
Foreign exchange losses	27,219	-
Other	1,657	789
Total non-operating expenses	34,599	8,660
Ordinary profit	2,646,075	5,999,037
Extraordinary income
Gain on sale of non-current assets	4	9,174
Gain on sale of investment securities	69,319	-
Total extraordinary income	69,323	9,174
Extraordinary losses
Loss on retirement of non-current assets	6,764	1,618
Loss on valuation of membership	1,230	-
Total extraordinary losses	7,994	1,618
Profit before income taxes	2,707,404	6,006,593
Income taxes - current	942,689	1,855,051
Income taxes - deferred	(306,672)	(369,612)
Total income taxes	636,017	1,485,438
Profit	2,071,387	4,521,154
Profit attributable to owners of parent		2,071,387	4,521,154

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