Seikitokyu Kogyo : Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2022

[Japanese GAAP]

May 11, 2022

Company name: SEIKITOKYU KOGYO CO., LTD.

Stock exchange listing: Tokyo Stock Exchange

Code number: 1898

URL: https://www.seikitokyu.co.jp

Representative: Yoshikazu Taira, Representative Director, President

Contact: Takanori Kawano, General Manager, Finance Department

Phone: [phone]

Scheduled date of general shareholders' meeting: June 23, 2022

Scheduled date of commencing dividend payments: June 24, 2022

Scheduled date of filing securities report: June 23, 2022

Availability of supplementary explanatory materials on annual financial results: Unavailable

Schedule of annual financial results briefing session: Scheduled (for institutional investors and analysts)

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

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)

(1) Consolidated Operating Results				(% indicates year-on-year changes)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
	Fiscal year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	March 31, 2022	85,132	(5.4)	4,418	(47.8)	4,358	(48.1)	3,304	(36.2)
	March 31, 2021	90,025	14.5	8,470	42.1	8,395	39.7	5,180	(20.8)

(Note) Comprehensive income: Fiscal year ended March 31, 2022: ¥ 3,992 million [(33.6)%]
	Fiscal year ended March 31, 2021: ¥ 6,010 million	[(3.7)%]
	Basic earnings	Diluted	Return on		Ratio of	Ratio of
	earnings per	ordinary profit	operating profit
	per share	equity
	share	to total assets	to net sales
Fiscal year ended	Yen	Yen	%		%	%
March 31, 2022	84.81	-	8.1		5.5	5.2
March 31, 2021	128.45	-	13.4		10.9	9.4

(Reference) Equity in earnings of affiliated companies: Fiscal year ended March 31, 2022: ¥- million Fiscal year ended March 31, 2021: ¥- million

(2) Consolidated Financial Position

			Total assets	Net assets	Equity ratio	Net assets per share
			Million yen	Million yen	%	Yen
	As of March 31, 2022		78,295	40,497	51.7	1,082.33
	As of March 31, 2021		79,409	40,790	51.4	1,010.99
	(Reference) Equity: As of March 31, 2022: ¥40,497 million
		As of March 31, 2021: ¥40,790 million
(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
	Fiscal year ended		Million yen	Million yen	Million yen	Million yen
	March 31, 2022		4,646	(3,668)	(2,232)	12,814
	March 31, 2021		1,138	(3,622)	2,343	14,035

2. Dividends

		Annual dividends			Total			Ratio of
							Payout ratio		dividends to
	1st	2nd	3rd	Year-			dividends
	Total		(consolidated)		net assets
	quarter-	quarter-	quarter-	end		(annual)
	end	end	end						(consolidated)
Fiscal year ended	Yen	Yen	Yen	Yen	Yen		Million yen	%	%
-	0.00	-	43.00	43.00	1,734	33.5	4.5
March 31, 2021
Fiscal year ended	-	0.00	-	30.00	30.00	1,122	35.4	2.9
March 31, 2022
Fiscal year ending
March 31, 2023	-	0.00	-	30.00	30.00			34.0
(Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

							(% indicates year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
First half	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
42,800	10.7	1,300	(25.8)	1,300	(25.2)	800	(32.8)	21.38
Full year	92,600	8.8	5,000	13.2	5,000	14.7	3,300	(0.1)	88.19

* Notes:

1. Changes in significant subsidiaries during the period under review
   (Changes in specified subsidiaries resulting in changes in scope of consolidation): No
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 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

(Note) For details, please see "3. Consolidated Financial Statements and Primary Notes (5) Notes to Consolidated Financial Statements (Changes in accounting policies)" on page 9 of the attachment.

(3) Number of shares issued (common shares)

1)	Total number of shares issued at the end of the period (including treasury shares):
	March 31, 2022:	40,414,407 shares
	March 31, 2021:	40,414,407 shares
2)	Total number of treasury shares at the end of the period:
	March 31, 2022:	2,996,909 shares
	March 31, 2021:	67,641 shares

3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year):

Year ended March 31, 2022:	38,967,451 shares
Year ended March 31, 2021:	40,330,810 shares

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Non-consolidated Operating Results							(% indicates year -on-year changes)
			Net sales				Operating profit		Ordinary profit		Profit
	Year ended		Million yen	%	Million yen	%		Million yen	%		Million yen	%
	March 31, 2022		81,168	(4.2)		4,089	(48.8)		4,025	(49.4)		3,083	(35.6)
	March 31, 2021		84,699	14.2		7,988	47.8		7,960	43.5		4,784	(22.2)
			Basic earnings		Diluted earnings
			per share			per share
	Year ended		Yen				Yen
	March 31, 2022		79.12			-
	March 31, 2021		118.62			-
(2) Non-consolidated Financial Position
			Total assets		Net assets	Equity ratio	Net assets per share
			Million yen		Million yen		%			Yen
	As of March 31, 2022		76,773		37,041		48.2		989.94
	As of March 31, 2021		77,822		38,234		49.1		947.64

(Reference) Equity: As of March 31, 2022: ¥37,041 million As of March 31, 2021: ¥38,234 million

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(% indicates year-on-year changes)

	Net sales		Ordinary profit	Profit		Basic earnings
			per share
First half	Million yen	%	Million yen	%	Million yen	%	Yen
40,800	10.1	1,200	(26.9)	800	(31.2)	21.38
Full year	88,000	8.4	4,600	14.3	3,100	0.6	82.85

• These consolidated financial results are outside the scope of audit by certified public accountants or an audit firm.
• Explanation of the proper use of financial results forecast and other notes

1. Financial results forecasts are determined based on information currently available and may contain various uncertain factors. Thus, actual results and outcomes may differ from these forecasts.
2. The Company is planning to hold a briefing session for institutional investors and analysts on Friday, June 3, 2022. The briefing materials to be distributed at the session are scheduled to be promptly posted on the Company's website after the session is held.

3. Consolidated Financial Statements and Primary Notes

(1) Consolidated Balance Sheets

				(Million yen)
			As of March 31, 2021	As of March 31, 2022
Assets
Current assets
Cash and deposits	14,035	12,814
Notes receivable, accounts receivable from	34,150	34,942
completed construction contracts and other
Costs on construction contracts in progress	2,565	459
Raw materials and supplies	386	401
Other	2,683	2,871
Total current assets			53,821	51,489
Non-current assets
Property, plant and equipment
Buildings and structures	9,220	9,824
Machinery, vehicles, tools, furniture and	20,681	21,511
fixtures
Land	14,327	14,217
Construction in progress	245	763
Accumulated depreciation	(20,820)	(21,464)
Total property, plant and equipment			23,655	24,852
Intangible assets	263	250
Investments and other assets
Investment securities	288	290
Deferred tax assets	847	947
Other	533	464
Total investments and other assets			1,669	1,703
Total non-current assets	25,588	26,806
Total assets			79,409	78,295

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					(Million yen)
			As of March 31, 2021	As of March 31, 2022
Liabilities
Current liabilities
Notes payable, accounts payable for			21,767		20,722
construction contracts and other
Short-term borrowings	7		107
Income taxes payable	1,147		494
Advances received on construction contracts in	2,070		1,921
progress
Provision for warranties for completed			15		32
construction
Provision for loss on construction contracts	7		5
Provision for bonuses	1,645		1,861
Other		4,216		4,163
Total current liabilities	30,877		29,307
Non-current liabilities
Long-term borrowings	5,000		6,900
Retirement benefit liability	2,597		1,505
Other	144		84
Total non-current liabilities			7,742		8,490
Total liabilities	38,619		37,797
Net assets
Shareholders' equity
Share capital	2,000		2,000
Capital surplus	519		521
Retained earnings	38,767		40,248
Treasury shares	(40)	(2,502)
Total shareholders' equity			41,246		40,266
Accumulated other comprehensive income
Valuation difference on available-for-sale	21		22
securities
Foreign currency translation adjustment	(15)	4
Remeasurements of defined benefit plans		(461)	203
Total accumulated other comprehensive income	(455)	231
Total net assets			40,790		40,497
Total liabilities and net assets		79,409		78,295

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