Space Value : Summary of Consolidated Financial Results for the Six Months Ended September 30, 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 Six Months Ended September 30, 2021 (Based on Japanese GAAP)

				November 12, 2021
Company name:	SPACE VALUE HOLDINGS CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	1448	URL https://www.svh.co.jp
Representative:	President & CEO	Naoki Morioka
Inquiries:	Director/General Manager of Corporate	Junya Kikuchi	TEL [phone]
Headquarters
Scheduled date to file Quarterly Securities Report:	November 15, 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 six months ended September 30, 2021 (from April 1, 2021 to September 30, 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		%
Six months ended September 30, 2021		32,331		(5.2)		210	-			236		522.4			358		(30.3)
Six months ended September 30, 2020		34,109		(8.3)		(73)	-			37		(95.4)		514		146.1
Note: Comprehensive income Six months ended September 30, 2021		¥118 million	[(93.7)%]
	Six months ended September 30, 2020		¥1,886 million	[163.2%]
		Earnings per share		Diluted earnings per share
					Yen						Yen
Six months ended September 30, 2021				10.19						10.18
Six months ended September 30, 2020				14.63						14.61
(2) Consolidated financial position
			Total assets				Net assets		Equity ratio
			Millions of yen			Millions of yen					%
As of September 30, 2021		68,100					25,492					37.3
As of March 31, 2021			79,175					25,895					32.6
Reference: Equity	As of September 30, 2021	¥25,426 million
	As of March 31, 2021	¥25,821 million
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 March 31, 2021			-			0.00				-			15.00			15.00
Year ending March 31, 2022			-			0.00
Year ending March 31, 2022 (Forecast)											-				0.00			0.00

Note: Revisions to the cash dividend forecasts most recently announced: Yes

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3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit	Profit attributable to	Earnings per share
			owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen	%	Millions of yen	%	Yen
Full year	84,000	8.4	2,100		-	2,400	227.6	1,400	325.5	39.82

Note: Revisions to the earnings forecasts most recently announced: None

4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 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 September 30, 2021	35,556,584	shares	As of March 31, 2021	35,556,584	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	170,086	shares	As of March 31, 2021	194,454	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2021	35,176,677	shares	Six months ended September 30, 2020	35,145,104	shares

Note: The number of treasury shares at the end of each period does not include shares of the Company held by share-based benefit trusts (194,308 shares as of September 30, 2021 and 200,508 shares as of March 31, 2021). Also, the shares of the Company held by the share-based benefit trusts are included in treasury shares that are deducted for calculation of the average number of outstanding shares during the period (198,069 shares for the six months ended September 30, 2021 and 202,001 shares for the six months ended September 30, 2020).

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Explanation of proper use of financial results forecast, and other special matters

(Caution concerning forward-looking statements)

The forward-looking statements shown in this document, including the financial results forecast, are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. As such, they do not constitute guarantees by the Company of future performance. Actual performance and other results may differ materially due to various factors.

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	6,654	5,582
Notes receivable, accounts receivable from completed	20,965	-
construction contracts
Notes receivable accounts receivable from completed	-	15,183
construction contracts and contract assets
Accrued rental income	6,560	-
Accrued rental income and contract assets	-	5,373
Real estate for sale	1,654	1,909
Real estate for sale in process	255	1,253
Costs on construction contracts in progress	1,580	1,011
Other inventories	750	966
Other	1,555	1,502
Allowance for doubtful accounts	(167)	(63)
Total current assets	39,809	32,718
Non-current assets
Property, plant and equipment
Rental ,net	2,774	2,785
Buildings and structures, net	5,591	5,469
Land	8,318	8,318
Other, net	5,219	4,494
Total property, plant and equipment	21,904	21,068
Intangible assets
Goodwill	2,819	2,717
Other	1,527	1,593
Total intangible assets	4,347	4,310
Investments and other assets
Investment securities	11,164	7,984
Other	2,356	2,441
Allowance for doubtful accounts	(406)	(422)
Total investments and other assets	13,113	10,004
Total non-current assets	39,366	35,382
Total assets		79,175	68,100

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			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts	14,567	11,379
and other
Short-term borrowings	9,144	4,500
Current portion of long-term borrowings	3,737	3,984
Income taxes payable	694	516
Advances received on construction contracts in progress	1,364	1,718
Advances received-rental	2,001	864
Provision for loss on construction contracts	1,087	1,049
Provision for warranties for completed construction	368	491
Provision for bonuses	689	669
Other provisions	82	75
Other	4,076	2,798
Total current liabilities	37,814	28,046
Non-current liabilities
Long-term borrowings	10,460	9,976
Retirement benefit liability	1,891	1,902
Other provisions	152	163
Other	2,961	2,517
Total non-current liabilities	15,465	14,561
Total liabilities	53,279	42,607
Net assets
Shareholders' equity
Share capital	7,000	7,000
Capital surplus	1,774	1,224
Retained earnings	13,687	14,046
Treasury shares	(380)	(345)
Total shareholders' equity	22,081	21,925
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,784	3,517
Foreign currency translation adjustment	18	37
Remeasurements of defined benefit plans	(62)	(54)
Total accumulated other comprehensive income	3,740	3,500
Share acquisition rights	73	66
Total net assets	25,895	25,492
Total liabilities and net assets		79,175	68,100

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		September 30, 2020	September 30, 2021
Net sales
Net sales of completed construction contracts	26,990	24,298
Rental sales	6,918	7,887
Sales in development business	200	145
Total net sales	34,109	32,331
Cost of sales
Cost of sales of completed construction contracts	23,852	21,466
A rental cost	5,291	5,866
Cost of sales in development business	79	78
Total cost of sales	29,223	27,412
Gross profit
Gross profit on completed construction contracts	3,138	2,832
Gross profit on rental	1,627	2,020
Gross profit - development business	120	66
Total gross profit	4,886	4,919
Selling, general and administrative expenses	4,959	4,708
Operating profit (loss)	(73)	210
Non-operating income
Interest income	10	8
Dividend income	54	53
Land and house rent received	15	16
Purchase discounts	9	8
Subsidy income	136	-
Other	133	120
Total non-operating income	360	208
Non-operating expenses
Interest expenses	92	82
Rent cost of real estate	7	7
Commission for syndicated loans	31	33
Settlement package	80	-
Other	37	57
Total non-operating expenses	249	182
Ordinary profit	37	236
Extraordinary income
Gain on sale of non-current assets	1	7
Gain on sale of investment securities	0	504
Other	1	29
Total extraordinary income		2	541

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