HIROSHIMA GAS : Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ended March 2023

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 Nine Months Ended December 31, 2022

[Japanese GAAP]

Company name: HIROSHIMA GAS CO.,LTD.

Stock exchange listing: Tokyo

Code number: 9535

URL: https://www.hiroshima-gas.co.jp/

Representative: Kensuke Matsufuji

Contact: Yasutaka Okita

February 10, 2023

President

Senior Executive Officer and Manager of General Affair

Department

Phone: [phone]

Scheduled date of filing quarterly securities report: February 13, 2023

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

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

1. Consolidated Financial Results for the Nine Months Ended December 31, 2022 (April 01, 2022 to December 31, 2022)

(1) Consolidated Operating Results						(% indicates changes from the previous corresponding period.)
		Net sales			Operating profit		Ordinary profit		Profit attributable to
						owners of parent
Nine months ended	Million yen		%		Million yen	%		Million yen	%		Million yen		%
December 31, 2022		63,590		22.6		2,018	301.3		2,569	42.4			1,810		2.7
December 31, 2021		51,874		0.9		502	(72.5)		1,803	(13.2)			1,763		40.9
(Note) Comprehensive income:	Nine months ended December 31, 2022:	¥			869 million	[	(65.8) %]
		Nine months ended December 31, 2021:	¥		2,545 million	[	10.9%]
		Basic earnings	Diluted earnings per
		per share				share
Nine months ended				Yen				Yen
December 31, 2022				26.51				-
December 31, 2021				25.87				-
(2) Consolidated Financial Position
		Total assets			Net assets	Capital adequacy ratio
As of			Million yen			Million yen				%
December 31, 2022		144,046			65,282				43.0
March 31, 2022		123,802			65,067				50.0
(Reference) Equity: As of	December 31, 2022:	¥	61,966 million
As of	March 31, 2022:			¥	61,867 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		-		5.00		-		5.00	10.00
Fiscal year ending March 31, 2023		-		5.00		-
Fiscal year ending March 31, 2023								5.00	10.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No
(Note) Breakdown of the 3rd 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			94,000		22.4	4,800	49.6	5,200		12.6	3,500	(4.4)	51.24
(Note) Revision to the financial results forecast announced most recently:	Yes
* Notes:
(1) Changes in significant subsidiaries during the nine months ended December 31, 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:	Yes

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

December 31, 2022:	68,373,036	shares
March 31, 2022:	68,242,319	shares
2) Total number of treasury shares at the end of the period:
December 31, 2022:	1,766	shares
March 31, 2022:	1,686	shares

3) Average number of shares during the period:
Nine months ended December 31, 2022:	68,304,542	shares
Nine months ended December 31, 2021:	68,178,287	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

		(Million yen)
	As of March 31,2022	As of December 31,2022
Assets
Non-current assets
Property, plant and equipment
Production facilities	14,352	16,294
Distribution facilities	31,575	31,005
Service and maintenance facilities	4,191	4,103
Other facilities	7,495	7,497
Construction in progress	5,666	4,710
Total property, plant and equipment	63,281	63,611
Intangible assets	262	165
Investments and other assets
Investment securities	14,196	13,427
Long-term loans receivable	0	-
Deferred tax assets	648	780
Other investments	4,577	4,394
Allowance for doubtful accounts	(32)	(18)
Total investments and other assets	19,390	18,583
Total non-current assets	82,933	82,359
Current assets
Cash and deposits	20,202	37,743
Notes and accounts receivable - trade, and contract	8,016	9,281
assets
Merchandise and finished goods	964	1,178
Raw materials and supplies	4,920	8,365
Other current assets	6,780	5,127
Allowance for doubtful accounts	(15)	(10)
Total current assets	40,868	61,687
Total assets	123,802	144,046

		(Million yen)
	As of March 31,2022	As of December 31,2022
Liabilities
Non-current liabilities
Bonds payable	16,000	16,000
Long-term borrowings	16,618	28,373
Provision for retirement benefits for directors (and	316	314
other officers)
Provision for gas holder repairs	467	516
Provision for safety measures	449	327
Provision for gas appliance warranties	263	242
Retirement benefit liability	682	635
Asset retirement obligations	171	234
Other noncurrent liabilities	1,645	1,049
Total non-current liabilities	36,615	47,692
Current liabilities
Current portion of non-current liabilities	5,856	7,804
Notes and accounts payable - trade	4,955	7,012
Income taxes payable	338	193
Asset retirement obligations	36	-
Commercial papers	6,000	12,000
Other current liabilities	4,932	4,061
Total current liabilities	22,119	31,071
Total liabilities	58,735	78,764
Net assets
Shareholders' equity
Share capital	5,225	5,246
Capital surplus	1,195	1,216
Retained earnings	50,897	52,025
Treasury shares	(0)	(0)
Total shareholders' equity	57,318	58,488
Accumulated other comprehensive income
Valuation difference on available-for-sale	1,327	1,273
securities
Deferred gains or losses on hedges	3,212	1,516
Foreign currency translation adjustment	154	794
Remeasurements of defined benefit plans	(145)	(106)
Total accumulated other comprehensive income	4,549	3,477
Non-controlling interests	3,199	3,316
Total net assets	65,067	65,282
Total liabilities and net assets	123,802	144,046

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

		(Million yen)
	For the nine months	For the nine months
	ended December 31,2021	ended December 31,2022
Net sales	51,874	63,590
Cost of sales	33,348	43,611
Gross profit	18,525	19,979
Selling, general and administrative expenses	18,022	17,961
Operating profit	502	2,018
Non-operating income
Interest income	2	1
Dividend income	159	163
Share of profit of entities accounted for using equity	1,083	333
method
Miscellaneous income	243	260
Total non-operating income	1,489	760
Non-operating expenses
Interest expenses	125	142
Miscellaneous expenses	62	66
Total non-operating expenses	188	209
Ordinary profit	1,803	2,569
Extraordinary income
Gain on sale of non-current assets	358	-
Gain on sale of investment securities	-	62
Compensation income	312	-
Total extraordinary income	671	62
Extraordinary losses
Impairment losses	66	-
Loss on valuation of investment securities	71	-
Total extraordinary losses	137	-
Profit before income taxes	2,337	2,631
Income taxes - current	334	631
Income taxes - deferred	90	58
Total income taxes	425	690
Profit	1,911	1,941
Profit attributable to non-controlling interests	147	130
Profit attributable to owners of parent	1,763	1,810