Hulic : Consolidated Financial Statements of Hulic Co., Ltd. for the fiscal years ended on December 31, 2022 and 2021

Hulic Co., Ltd. and Consolidated Subsidiaries

Consolidated Balance Sheets

Thousands of

As of December 31, 2022 and 2021

U.S. Dollars

Millions of Yen

(Note 1)

ASSETS

2022

2021

2022

Current assets:

Cash and bank deposits (Notes 8, 18

and 20)

¥

138,400

¥

206,206

$

1,042,956

(Notes 8

Notes and accounts receivable - trade

-

4,876

-

and 18)

(Notes 8 and

Trade receivable and contract assets

7,097

-

53,484

18)

(Notes 3 and 4)

Inventories

95,540

110,700

719,971

Other current assets

9,870

7,381

74,383

Allowance for doubtful accounts

(7)

(232)

(55)

Total current assets

250,901

328,931

1,890,739

Property, plant and equipment (Notes 3, 5, 8, 10,

13 and 22):

303,251

304,136

2,285,240

Buildings and structures

Machinery, equipment and vehicles

11,373

7,668

85,710

Land

1,374,904

1,266,859

10,361,000

Construction in progress

16,207

9,630

122,135

Other

15,669

15,200

118,079

1,721,406

1,603,494

12,972,166

Less accumulated depreciation

(76,956)

(76,028)

(579,931)

Net property, plant and equipment

1,644,449

1,527,466

12,392,234

Investments and other assets:

284,706

225,547

2,145,489

Investment securities (Notes 18 and 19)

Goodwill

4,795

3,711

36,138

Leasehold rights

81,233

79,420

612,155

Guarantee deposits

(Note 14)

37,545

28,894

282,935

Deferred tax assets

(Note 9)

856

951

6,457

Net defined benefit asset

493

326

3,719

Business commencement expenses

22

30

166

Share issuance costs

404

626

3,046

Bond issuance costs

1,895

1,705

14,283

Other assets

13,064

9,727

98,453

Allowance for doubtful accounts

(31)

(14)

(234)

Total investments and other assets

424,986

350,927

3,202,611

Total assets

¥

2,320,337

¥

2,207,325

$

17,485,586

(Continued)

Hulic Co., Ltd. and Consolidated Subsidiaries

Consolidated Balance Sheets

Thousands of

As of December 31, 2022 and 2021

U.S. Dollars

Millions of Yen

(Note 1)

LIABILITIES AND NET ASSETS

2022

2021

2022

Current liabilities:

¥

660

¥

660

$

4,973

Short-term borrowings (Notes 8 and 18) (Notes 8,

Current portion of long-term borrowings

161,577

71,500

1,217,616

18 and 21)

Current portion of long-term bonds

(Notes 8 and

50,000

-

376,789

18)

11,531

10,773

86,898

Income taxes payable

Accrued expenses

(Notes 8 and 18)

3,843

3,704

28,964

Other current liabilities

18,144

20,413

136,735

Total current liabilities

245,757

107,052

1,851,978

Long-term liabilities:

(Notes 8, 18 and 21)

Long-term borrowings

857,748

977,326

6,463,816

Long-term bonds

(Notes 8 and 18)

371,000

345,000

2,795,779

Long-term deposits from tenants

88,287

82,573

665,315

Deferred tax liabilities

(Note 14)

53,532

40,499

403,413

(Note 9)

Net defined benefit liability

1,634

1,457

12,316

Provision for share awards(Notes 8 and 10)

2,846

2,232

21,447

Other long-term liabilities

12,376

12,852

93,269

Total long-term liabilities

1,387,426

1,461,940

10,455,359

Net assets (Note 11):

Shareholders' equity:

Common stock,

Authorized, 1,800,000,000 shares in 2022 and

2021; issued, 767,907,735 shares in 2022 and

111,609

111,609

841,068

2021

Capital surplus

137,741

137,759

1,037,989

Retained earnings

401,090

352,351

3,022,534

Less treasury stock - at cost

(3,971)

(2,464)

(29,929)

7,164,236 shares in 2022 and 5,802,693 shares

in 2021

Total shareholders' equity

646,469

599,256

4,871,664

Accumulated other comprehensive income:

40,267

38,401

303,449

Unrealized gains on securities

Unrealized losses on hedging instruments

(261)

(54)

(1,968)

Foreign currency translation adjustment

0

-

1

Retirement benefits liability adjustments

252

195

1,899

Total accumulated other comprehensive

40,258

38,542

303,381

income

Non-controlling interests

424

533

3,202

Total liabilities and net assets

687,153

638,332

5,178,247

Total net assets

¥

2,320,337

¥

2,207,325

$

17,485,586

Hulic Co., Ltd. and Consolidated Subsidiaries

Consolidated Statements of Income

Years Ended December 31, 2022 and 2021

Thousands of

Millions of Yen

U.S. Dollars

(Note 1)

Revenues from operations (Notes 16, 22, 24 and

2022

2021

2022

25)

¥

523,424

¥

447,077

$

3,944,417

Cost of revenues from operations

Selling, general and administrative expenses

350,854

291,668

2,643,967

(Notes 9, 12, 16 and 22) (Note 25)

46,422

40,902

349,830

Operating income

126,147

114,507

950,620

Other income (expenses):

3,141

2,569

23,677

Interest and dividend income

Share of profit of entities accounted for using

1,033

458

7,786

equity method

Interest expense

(10,415)

(10,208)

(78,485)

Other - net

(Note 13)

(2,428)

(1,664)

(18,302)

(8,668)

(8,845)

(65,323)

Profit before income taxes

117,478

105,662

885,296

Income taxes (Note 14):

26,666

26,437

200,955

Current

Deferred

11,661

8,766

87,877

38,328

35,204

288,832

Profit attributable to non-controlling interests

79,150

70,457

596,463

Profit

Profit attributable to owners of parent (Note 17)

¥

79,150

¥

69,564

$

596,462

0

893

0

Hulic Co., Ltd. and Consolidated Subsidiaries

Consolidated Statements of Comprehensive Income

Thousands of

Years Ended December 31, 2022 and 2021

U.S. Dollars

Millions of Yen

(Note 1)

2022

2021

2022

Profit

¥

79,150

¥

70,457

$

596,463

Other comprehensive income (Note 15):

2,963

8,361

22,330

Unrealized gains on securities

Unrealized losses on hedging instruments

(206)

(40)

(1,556)

Retirement benefits liability adjustments

64

310

485

Share of other comprehensive income of entities

(1,105)

415

(8,328)

accounted for using equity method

Total other comprehensive income

1,715

9,046

12,931

Comprehensive income

¥

80,866

¥

79,504

$

609,394

Total comprehensive income attributable to:

¥

80,866

¥

78,610

$

609,393

Owners of parent

Non-controlling interests

0

893

0