Kaneko Seeds : ［Delayed］Summary of Consolidated Financial Results for the Three Months Ended August 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 Three Months Ended August 31, 2021 (Based on Japanese GAAP)

				October 6, 2021
Company name:	KANEKO SEEDS CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	1376	URL http://www.kanekoseeds.jp
Representative:	PRESIDENT	MASAHIKO KANEKO
Inquiries:	SENIOR MANAGING DIRECTOR HEAD	HIROKATSU HASE	TEL [phone]
OF GENERAL ADMINISTRATION
Scheduled date to file Quarterly Securities Report:	October 12, 2021
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 August 31, 2021 (from June 1, 2021 to August 31, 2021)

(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 August 31, 2021	14,439		(1.4)		315	(7.3)		355			(5.5)		235		(9.6)
Three months ended August 31, 2020	14,639		8.5		340	23.7		375		17.7		260		19.6
	Earnings per share		Diluted earnings per share
			Yen					Yen
Three months ended August 31, 2021			20.17					-
Three months ended August 31, 2020			22.30					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%				Yen
As of August 31, 2021		42,296					21,744				51.4		1,863.92
As of May 31, 2021		47,452					21,696				45.7		1,859.82
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 May 31, 2021		-			11.00			-				18.00			29.00
Year ending May 31, 2022		-
Year ending May 31, 2022 (Forecast)					11.00			-				18.00			29.00

3. Forecast of consolidated financial results for the year ending May 31, 2022 (from June 1, 2021 to May 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
-	-	-	-	-		-	-	-	-
November 30, 2021
Full year	61,000	0.4	1,600	(3.7)	1,700		(3.7)	1,100	(23.4)	94.29

1

4. Notes

1. Changes in significant subsidiaries during the three months ended August 31, 2021 (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 August 31, 2021	11,772,626	shares	As of May 31, 2021	11,772,626	shares
Number of treasury shares at the end of the period
	As of August 31, 2021	106,548	shares	As of May 31, 2021	106,548	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended August 31, 2021	11,666,078	shares	Three months ended August 31, 2020	11,666,567	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of May 31, 2021	As of August 31, 2021
Assets
Current assets
Cash and deposits	5,819,502	4,005,210
Notes and accounts receivable - trade	21,887,080	17,561,352
Merchandise	8,150,033	7,519,687
Other	1,608,926	3,001,853
Allowance for doubtful accounts	(21,979)	(16,984)
Total current assets	37,443,562	32,071,121
Non-current assets
Property, plant and equipment
Land	4,009,290	4,003,890
Other, net	2,428,319	2,439,902
Total property, plant and equipment	6,437,610	6,443,792
Intangible assets	733,683	880,355
Investments and other assets
Other	2,856,353	2,920,094
Allowance for doubtful accounts	(19,177)	(19,179)
Total investments and other assets	2,837,175	2,900,914
Total non-current assets	10,008,469	10,225,062
Total assets	47,452,032	42,296,183
Liabilities
Current liabilities
Notes and accounts payable - trade	22,522,053	14,416,823
Short-term borrowings	-	2,720,000
Income taxes payable	250,761	127,570
Other	1,325,948	1,644,742
Total current liabilities	24,098,762	18,909,136
Non-current liabilities
Retirement benefit liability	1,330,235	1,326,813
Provision for share awards for directors (and other	39,368	35,404
officers)
Other	286,711	279,996
Total non-current liabilities	1,656,315	1,642,214
Total liabilities	25,755,078	20,551,351
Net assets
Shareholders' equity
Share capital	1,491,267	1,491,267
Capital surplus	1,765,224	1,765,224
Retained earnings	17,711,991	17,694,096
Treasury shares	(130,303)	(130,303)
Total shareholders' equity		20,838,179	20,820,284

3

		(Thousands of yen)
	As of May 31, 2021	As of August 31, 2021
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	856,070	915,298
Foreign currency translation adjustment	(24,937)	(24,937)
Remeasurements of defined benefit plans	27,435	33,957
Total accumulated other comprehensive income	858,569	924,318
Non-controlling interests	205	229
Total net assets	21,696,954	21,744,832
Total liabilities and net assets	47,452,032	42,296,183

4

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Three months ended	Three months ended
		August 31, 2020	August 31, 2021
Net sales	14,639,230	14,439,974
Cost of sales	12,376,527	12,180,554
Gross profit	2,262,703	2,259,420
Selling, general and administrative expenses	1,921,819	1,943,558
Operating profit	340,883	315,862
Non-operating income
Dividend income	20,592	22,058
Rental income from buildings	16,614	18,427
Other	4,509	5,537
Total non-operating income	41,716	46,024
Non-operating expenses
Interest expenses	4,991	4,882
Foreign exchange losses	996	1,532
Other	686	298
Total non-operating expenses	6,674	6,713
Ordinary profit	375,925	355,172
Extraordinary losses
Loss on disposal of non-current assets	88	1,525
Impairment losses	-	5,400
Total extraordinary losses	88	6,925
Profit before income taxes	375,837	348,247
Income taxes	115,649	112,974
Profit	260,187	235,273
Profit attributable to non-controlling interests	24	23
Profit attributable to owners of parent		260,162	235,249

5