Toyo Construction : 〔Delayed〕Summary of Consolidated Financial Results for the Year Ended March 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 Year Ended March 31, 2021

(Based on Japanese GAAP)

																		May 12, 2021
Company name:	TOYO CONSTRUCTION CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	1890	URL https://www.toyo-const.co.jp/
Representative:	Representative Director, President		Kyoji Takezawa
	Executive Officer General Manager,
Inquiries:	Administration Dept.		Mamoru Sato	TEL [phone]
	Business Administration Div.
Scheduled date of ordinary general meeting of shareholders:	June 25, 2021
Scheduled date to file Securities Report:		June 25, 2021
Scheduled date to commence dividend payments:		June 28, 2021
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:					Yes	(for institutional investors and analysts)
										(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
(1) Consolidated operating results											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		%
Year ended March 31, 2021	172,976		(1.0)	14,259		53.8		14,103	53.8	9,176		59.1
Year ended March 31, 2020	174,805		6.7	9,268		18.6		9,168	13.6	5,766		5.9
		Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			share			owners of				assets				sales
								parent/equity
			Yen		Yen				%					%					%
Year ended March 31, 2021	97.65			-				15.3					9.9					8.2
Year ended March 31, 2020	61.31			-				10.7					6.6					5.3
(2) Consolidated financial position
		Total assets		Net assets		Equity ratio	Net assets per share
		Millions of yen	Millions of yen					%						Yen
As of March 31, 2021		148,953					65,875					43.1						684.14
As of March 31, 2020		135,516					57,329					41.3						595.12
(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
		Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended March 31, 2021	(6,548)					(961)					(2,095)						16,670
Year ended March 31, 2020				(269)					(2,966)					(2,632)						26,181
2. Cash dividends
					Annual dividends per share					Total cash	Dividend payout		Ratio of dividends
															to net assets
		1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
		Yen		Yen	Yen				Yen	Yen	Millions of yen	%				%
Year ended March 31, 2020	-		-	-				15.00	15.00		1,414	24.5				2.6
Year ended March 31, 2021	-		-	-				25.00	25.00		2,358	25.6				3.9
Year ending March 31, 2022	-			-	-				20.00	20.00			31.3
(Forecast)
						1

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

Six months ending

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

77,000

1.5

3,700

(8.5)

3,600

(4.4)

2,350

(0.4)

25.01

September 30, 2021

Full year

170,000

(1.7)

9,200

(35.5)

9,100

(35.5)

6,000

(34.6)

63.85

4. Notes

(1) Changes in significant subsidiaries during the year ended March 31, 2021

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) 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:

No

Changes in accounting policies due to other reasons:

No

Changes in accounting estimates:

No

Restatement of prior period financial statements:

No

(3) Number of issued shares (common shares)

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

As of March 31, 2021

94,371,183 shares

As of March 31, 2020

94,371,183 shares

Number of treasury shares at the end of the period

As of March 31, 2021

429,978 shares

As of March 31, 2020

353,331 shares

Average number of shares during the period

Year ended March 31, 2021

93,967,647 shares

Year ended March 31, 2020

94,054,592 shares

2

Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	26,369	16,770
Notes receivable, accounts receivable from completed	49,989	70,177
construction contracts and other
Costs on construction contracts in progress	5,079	2,763
Advances paid	2,485	5,757
Other accounts receivable	7,807	10,296
Other	2,710	3,265
Allowance for doubtful accounts	(12)	(12)
Total current assets	94,428	109,018
Non-current assets
Property, plant and equipment
Buildings and structures	14,221	13,331
Machinery, vehicles, tools, furniture and fixtures	25,470	25,611
Land	22,259	21,592
Construction in progress	32	99
Accumulated depreciation	(27,995)	(28,300)
Total property, plant and equipment	33,988	32,334
Intangible assets	287	515
Investments and other assets
Investment securities	2,491	2,561
Deferred tax assets	2,935	2,971
Retirement benefit asset	106	190
Other	1,409	1,474
Allowance for doubtful accounts	(131)	(114)
Total investments and other assets	6,811	7,084
Total non-current assets	41,087	39,934
Total assets		135,516	148,953

3

			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts	33,535	32,226
and other
Short-term borrowings	8,200	7,841
Income taxes payable	1,878	3,275
Advances received on construction contracts in progress	8,851	13,126
Deposits received	2,343	2,754
Accrued consumption taxes	8,107	9,150
Provision for warranties for completed construction	376	445
Provision for loss on construction contracts	126	147
Provision for bonuses	997	1,011
Other	1,308	1,554
Total current liabilities	65,723	71,532
Non-current liabilities
Long-term borrowings	2,951	2,752
Deferred tax liabilities	64	127
Deferred tax liabilities for land revaluation	2,211	2,207
Provisions	55	85
Retirement benefit liability	6,637	5,807
Other	542	564
Total non-current liabilities	12,463	11,544
Total liabilities	78,187	83,077
Net assets
Shareholders' equity
Share capital	14,049	14,049
Capital surplus	6,057	6,057
Retained earnings	34,007	41,419
Treasury shares	(147)	(178)
Total shareholders' equity	53,966	61,348
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	398	538
Deferred gains or losses on hedges	3	-
Revaluation reserve for land	2,722	3,071
Foreign currency translation adjustment	(22)	(19)
Remeasurements of defined benefit plans	(1,116)	(670)
Total accumulated other comprehensive income	1,985	2,920
Non-controlling interests	1,377	1,606
Total net assets	57,329	65,875
Total liabilities and net assets		135,516	148,953

4

Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		March 31, 2020	March 31, 2021
Net sales
Net sales of completed construction contracts	174,166	172,173
Net sales in sideline businesses	638	802
Total net sales	174,805	172,976
Cost of sales
Cost of sales of completed construction contracts	156,479	149,423
Cost of sales in sideline businesses	220	326
Total cost of sales	156,699	149,750
Gross profit
Gross profit on completed construction contracts	17,687	22,749
Gross profit on sideline business	417	476
Total gross profit	18,105	23,225
Selling, general and administrative expenses	8,836	8,966
Operating profit	9,268	14,259
Non-operating income
Interest income	58	83
Dividend income	40	90
Foreign exchange gains	-	82
Other	51	100
Total non-operating income	150	357
Non-operating expenses
Interest expenses	145	140
Commitment fees	26	272
Other	78	100
Total non-operating expenses	250	513
Ordinary profit	9,168	14,103
Extraordinary income
Gain on sale of non-current assets	93	45
Gain on sale of investment securities	28	5
Other	4	-
Total extraordinary income	126	51
Extraordinary losses
Loss on sale of non-current assets	4	1
Loss on retirement of non-current assets	159	30
Loss on sale of investment securities	-	107
Impairment losses	230	521
Loss on valuation of shares of subsidiaries and associates	10	-
Other	96	5
Total extraordinary losses	501	665
Profit before income taxes	8,793	13,489
Income taxes - current	3,033	4,372
Income taxes - deferred	(194)	(241)
Total income taxes	2,839	4,130
Profit	5,954	9,358
Profit attributable to non-controlling interests	187	182
Profit attributable to owners of parent		5,766	9,176

5