MEISEI INDUSTRIAL : Consolidated Financial Results for FY 2023

[Translation for reference only]

ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT

This is an English translation of the original Japanese-language document and is provided for convenience only. In all cases, the Japanese-language original shall take precedence.

	Consolidated Financial Results
	for the Fiscal Year Ended March 31, 2023
	May 10,2023
Company name:	MEISEI INDUSTRIAL CO., LTD.
Listing:	Tokyo Stock Exchange, Prime
Securities code:	1976
URL:	https://www.meisei-kogyo.co.jp/en/
Representative:	Toshiteru Otani, Representative Director, Chairman and Chief Executive Officer (CEO)
Inquiries:	Susumu Yamamoto, Executive Officer, General Manager of Finance Division

TEL: [phone]

Scheduled date of annual general meeting of shareholders: June 22, 2023

Scheduled date to commence dividend payments: June 23, 2023

Scheduled date to file annual securities report: June 23, 2023

Preparation of supplementary results briefing material on financial results: Yes

Holding of financial results presentation meeting: Yes

(Note: Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

(from April 1, 2022 to March 31, 2023)
(1)	Consolidated operating results
												(Percentages indicate year-on-year changes.)
		Net sales					Operating profit		Ordinary profit		Profit attributable to
								owners of parent
Fiscal year ended	Millions of yen		%		Millions of yen	%	Millions of yen	%	Millions of yen		%
March 31, 2023	55,890		15.5			6,830		27.9		7,258	28.7		4,680		23.4
March 31, 2022	48,389		(4.2)			5,339		(16.6)		5,641	(16.3)		3,793		(17.5)
Note:	Comprehensive income
	For the fiscal year ended March 31, 2023:	¥5,088 million [	25.2 %]
	For the fiscal year ended March 31, 2022:	¥4,063 million [	(20.5) %]
		Net income			Diluted net		Return on equity		Ratio of ordinary		Ratio of operating
		per share		income per share			profit to total assets	profit to net sales
Fiscal year ended		Yen				Yen				%				%		%
March 31, 2023	94.00					－				8.2			9.8			12.2
March 31, 2022	74.63					－				6.9			8.1			11.0
Reference: Share of profit (loss) of entities accounted for using equity method
	For the fiscal year ended March 31, 2023:				-
	For the fiscal year ended March 31, 2022:				-
(2)	Consolidated financial position
		Total assets			Net assets		Equity-to-asset ratio		Net assets per share
As of	Millions of yen			Millions of yen					%					Yen
March 31, 2023	77,508					59,448					76.2				1,185.84
March 31, 2022	71,149					55,924					78.1				1,116.33
Reference: Shareholders' equity
	As of March 31, 2023:					¥59,053 million
	As of March 31, 2022:					¥55,562 million
(3)	Consolidated cash flows
		Net cash provided by		Net cash provided by	Net cash provided by			Cash and cash
		(used in) operating		(used in) investing		(used in) financing		equivalents at end of
		activities					activities			activities			period
Fiscal year ended	Millions of yen			Millions of yen				Millions of yen			Millions of yen
March 31, 2023			4,068					(827)					(1,739)				29,004
March 31, 2022			7,171					(9)					(2,661)				27,183

Meisei Industrial Co., Ltd.

2. Cash Dividends

		Cash dividends per share		Total cash	Dividend	Ratio of
	First	Second	Third	Fiscal		dividends	payout ratio	dividends to
	quarter-	quarter-	quarter-	Annual			net assets
	year-end
	end	end	end		(Annual)	(Consolidated)	(Consolidated)
Fiscal year ended	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
March 31, 2022	-	10.00	-	20.00	30.00	1,514	40.2	2.8
March 31, 2023	-	12.00	-	24.00	36.00	1,800	38.3	3.1
Fiscal year ending
March 31, 2024	-	14.00	-	22.00	36.00		38.4
(Forecast)

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Net income
		owners of parent	per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Six months ending
September 30, 2023	26,000	1.1	2,900	3.6	3,000	(3.8)	2,050	(3.2)	41.17
Fiscal year ending
March 31, 2024	55,000	(1.6)	6,600	(3.4)	6,700	(7.7)	4,670	(0.2)	93.78

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies, changes in accounting estimates and restatements of prior period

financial statements

a. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

b. Changes in accounting policies due to other reasons:	None
c. Changes in accounting estimates:	None
d. Restatements of prior period financial statements after error corrections:	None

1. Number of issued shares (common shares)

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

As of March 31, 2023

As of March 31, 2022

56,386,718 shares

56,386,718 shares

1. Number of treasury shares at end of period

As of March 31, 2023

As of March 31, 2022

6,587,371 shares

6,614,632 shares

c. Average number of outstanding shares during the period

For the fiscal year ended March 31, 2023	49,789,806 shares
For the fiscal year ended March 31, 2022	50,838,602 shares

Note: The figures stated for the number of treasury shares at end of period include shares of the Company that are held by a trust established to distribute shares to officers (Officers' Share Distribution Trust). The calculation used to calculate the average number of outstanding shares during period excludes treasury shares, which include shares of the Company held by the Officers' Share Distribution Trust.

Meisei Industrial Co., Ltd.

(Reference) Overview of Non-consolidated operating results

1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Non-consolidated operating results				(Percentages indicate year-on-year changes.)
		Net sales				Operating profit	Ordinary profit	Net income
Fiscal year ended	Millions of yen	%		Millions of yen	%	Millions of yen	%	Millions of yen	%
March 31, 2023		38,214	12.2		5,360	28.5	6,000	9.7	4,165	4.4
March 31, 2022		34,054	(8.5)		4,170	(21.6)	5,470	(8.6)	3,989	(3.7)
		Net income			Diluted net
		per share		income per share
Fiscal year ended		Yen			Yen
March 31, 2023		83.67				－
March 31, 2022		78.48				－
(2) Non-consolidated financial position
		Total assets				Net assets	Equity-to-asset ratio	Net assets per share
As of		Millions of yen		Millions of yen		%		Yen
March 31, 2023		56,739			46,329		81.7		930.33
March 31, 2022		52,441			43,649		83.2		876.98
Reference: Shareholders' equity
As of March 31, 2023:			¥46,329 million
As of March 31, 2022:			¥43,649 million

2. Non-consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Net income	Net income
		per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Six months ending
September 30, 2023	18,000	(1.0)	2,350	0.5	2,650	(7.6)	1,800	(11.5)	36.15
Fiscal year ending
March 31, 2024	39,000	2.1	5,500	2.6	5,900	(1.7)	4,100	(1.6)	82.33

• Consolidated Financial Results are not subject to auditing.
• Proper use of earnings forecasts and other special notes
  (Caution regarding forward-looking statements)
  The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not purport to be a promise by the Company to realize such statements.
  Actual business and other results may differ substantially due to various factors.

Meisei Industrial Co., Ltd.

Quarterly Consolidated Financial Statements

(1) Quarterly consolidated balance sheets

		(Millions of yen)
	As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	27,192	29,017
Notes receivable - trade	1,421	888
Electronically recorded monetary claims -	1,837	2,787
operating
Accounts receivable from completed construction	15,354	16,275
contracts
Contract assets	2,590	5,121
Securities	300	300
Costs on construction contracts in progress	554	559
Merchandise and finished goods	278	312
Raw materials and supplies	190	223
Other	143	206
Allowance for doubtful accounts	(16)	(17)
Total current assets	49,847	55,674
Non-current assets
Property, plant and equipment
Buildings and structures	10,040	10,129
Machinery and vehicles	4,798	4,968
Land	11,200	11,433
Other	2,212	2,447
Accumulated depreciation	(13,148)	(13,596)
Total property, plant and equipment	15,102	15,381
Intangible assets	74	62
Investments and other assets
Investment securities	3,731	3,805
Investment property	2,007	1,961
Retirement benefit asset	30	－
Deferred tax assets	15	92
Other	431	630
Allowance for doubtful accounts	(91)	(100)
Total investments and other assets	6,124	6,389
Total non-current assets	21,301	21,833
Total assets	71,149	77,508

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Meisei Industrial Co., Ltd.

		(Millions of yen)
	As of March 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Notes payable - trade	1,577	2,283
Electronically recorded obligations - operating	870	1,344
Accounts payable for construction contracts	4,135	4,955
Accounts payable - trade	181	288
Short-term borrowings	960	－
Income taxes payable	847	1,436
Contract liabilities	1,201	1,109
Provision for bonuses	432	454
Provision for directors' bonuses (and other officers)	85	96
Provision for warranties for completed construction	94	25
Other	1,490	2,061
Total current liabilities	11,876	14,056
Non-current liabilities
Long-term borrowings	－	800
Retirement benefit liability	175	116
Provision for retirement benefits for directors (and	168	143
other officers)
Provision for share awards for directors (and other	112	122
officers)
Deferred tax liabilities	1,948	1,943
Deferred tax liabilities for land revaluation	483	483
Asset retirement obligations	16	16
Other	442	378
Total non-current liabilities	3,348	4,003
Total liabilities	15,224	18,060
Net assets
Shareholders' equity
Share capital	6,889	6,889
Capital surplus	999	1,000
Retained earnings	48,317	51,396
Treasury shares	(3,071)	(3,051)
Total shareholders' equity	53,134	56,234
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	932	1,017
Revaluation reserve for land	958	958
Foreign currency translation adjustment	427	757
Remeasurements of defined benefit plans	108	86
Total accumulated other comprehensive income	2,427	2,819
Non-controlling interests	362	394
Total net assets	55,924	59,448
Total liabilities and net assets	71,149	77,508

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