Seikitokyu Kogyo : Consolidated Financial Results for the Nine Months Ended December 31, 2021

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

[Japanese GAAP]

February 8, 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 filing quarterly securities report: February 9, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing materials on quarterly financial results: Unavailable

Schedule of quarterly financial results briefing session: Not scheduled

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

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 1, 2021 to December 31, 2021)

(1) Consolidated Operating Results (Cumulative)			(% indicates year-on-year changes)
		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, 2021	61,342	3.5	2,870	(38.0)	2,853	(37.1)	2,039	(41.2)
	December 31, 2020	59,292	16.4	4,631	45.3	4,538	42.2	3,470	(15.7)

(Note) Comprehensive income: Nine months ended December 31, 2021: ¥2,162 million [(38.6)%]

Nine months ended December 31, 2020: ¥3,524 million [(16.7)%]

Basic earnings

Diluted earnings

per share

per share

Nine months ended

Yen

Yen

December 31, 2021

51.84

-

December 31, 2020

86.05

-

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen

%

Yen

As of December 31, 2021

73,186

39,283

53.7

1,028.84

As of March 31, 2021

79,409

40,790

51.4

1,010.99

(Reference) Equity: As of December 31, 2021: ¥39,283 million

As of March 31, 2021: ¥40,790 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, 2021

-

0.00

-

43.00

43.00

Fiscal year ending March 31, 2022

-

0.00

-

Fiscal year ending March 31, 2022

30.00

30.00

(Forecast)

(Note) Revision to the forecast for

dividends announced most recently: No

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

							(% indicates year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
Full year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
86,800	(3.6)	4,600	(45.7)	4,500	(46.4)	3,300	(36.3)	86.43

(Note) Revision to the financial results forecast announced most recently: Yes

* Notes:

1. Changes in significant subsidiaries during the period under review
   (Changes in specified subsidiaries resulting in changes in scope of consolidation): No
2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 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 "Quarterly Consolidated Financial Statements and Primary Notes, (3) Notes to Quarterly Consolidated Financial Statements, (Changes in accounting policies)" on page 5 of the attachment.

1. Number of shares issued (common shares)
   1) Total number of shares issued at the end of the period (including treasury shares):

December 31, 2021:	40,414,407 shares
March 31, 2021:	40,414,407 shares
2) Total number of treasury shares at the end of the period:
December 31, 2021:	2,232,386 shares
March 31, 2021:	67,641 shares

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

Nine months ended December 31, 2021:	39,341,317 shares
Nine months ended December 31, 2020:	40,326,002 shares

• These consolidated financial results are outside the scope of quarterly review by certified public accountants or audit corporations.
• Explanation of the proper use of financial results forecasts and other notes

Financial results forecasts are based on information available and certain assumptions deemed reasonable by the Company at the time of preparation of this document, which may contain various uncertain factors. Thus, actual results and outcomes may differ from these forecasts.

(Reference) Non-Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(% indicates year-on-year changes)

	Net sales		Ordinary profit	Profit		Basic earnings
			per share
Full year	Million yen	%	Million yen	%	Million yen	%	Yen
83,000	(2.0)	4,200	(47.2)	3,100	(35.2)	81.19
(Note) Revision to the financial results forecast announced most recently: Yes

• Explanation of the proper use of financial results forecast and other notes
  Financial results forecasts are based on information available and certain assumptions deemed reasonable by the Company at the time of preparation of this document, which may contain various uncertain factors. Thus, actual results and outcomes may differ from these forecasts.

Quarterly Consolidated Financial Statements and Primary Notes

(1) Quarterly Consolidated Balance Sheets

					(Million yen)
			As of March 31, 2021		As of December 31, 2021
Assets
Current assets
Cash and deposits	14,035	14,986
Notes receivable, accounts receivable from	34,150	28,372
completed construction contracts and other
Costs on construction contracts in progress	2,565	477
Raw materials and supplies	386	325
Other	2,683	3,697
Allowance for doubtful accounts			-	(9)
Total current assets	53,821	47,848
Non-current assets
Property, plant and equipment
Buildings and structures	9,220	9,418
Machinery, vehicles, tools, furniture and			20,681		21,156
fixtures
Land	14,327	14,314
Construction in progress	245	707
Accumulated depreciation		(20,820)	(21,764)
Total property, plant and equipment	23,655	23,831
Intangible assets			263	253
Investments and other assets
Other		1,669	1,252
Total investments and other assets	1,669	1,252
Total non-current assets			25,588	25,337
Total assets		79,409	73,186

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					(Million yen)
			As of March 31, 2021	As of December 31, 2021
Liabilities
Current liabilities
Notes payable, accounts payable for			21,767		20,604
construction contracts and other
Short-term borrowings	7		104
Income taxes payable	1,147		2
Advances received on construction contracts in	2,070		1,255
progress
Provision for warranties for completed			15		16
construction
Provision for loss on construction contracts	7		15
Provision for bonuses	1,645		744
Other		4,216		3,745
Total current liabilities	30,877		26,488
Non-current liabilities
Long-term borrowings	5,000		5,000
Retirement benefit liability	2,597		2,289
Other	144		125
Total non-current liabilities			7,742		7,415
Total liabilities	38,619		33,903
Net assets
Shareholders' equity
Share capital	2,000		2,000
Capital surplus	519		521
Retained earnings	38,767		38,982
Treasury shares	(40)	(1,888)
Total shareholders' equity			41,246		39,615
Accumulated other comprehensive income
Valuation difference on available-for-sale	21		15
securities
Foreign currency translation adjustment	(15)	(8)
Remeasurements of defined benefit plans		(461)	(340)
Total accumulated other comprehensive income	(455)	(332)
Total net assets			40,790		39,283
Total liabilities and net assets		79,409		73,186

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