Toyo Construction : Summary of Consolidated Financial Results for the Three Months Ended June 30,2020(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 Three Months Ended June 30, 2020 (Based on Japanese GAAP)

				August 6, 2020
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
Inquiries:	General Manager, Administration Dept.	Mamoru Sato	TEL [phone]
Business Administration Div.
Scheduled date to file Quarterly Securities Report:	August 6, 2020
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)
(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	%
Three months ended June 30, 2020	34,430		(11.3)		1,548	(30.8)	1,471		(30.5)	895	(35.1)
Three months ended June 30, 2019	38,821		27.0			2,237	130.2	2,117		77.0	1,380	91.2
	Earnings per share				Diluted earnings per share
				Yen				Yen
Three months ended June 30, 2020				9.53				-
Three months ended June 30, 2019			14.67				-
(2) Consolidated financial position
	Total assets					Net assets	Equity ratio		Net assets per share
	Millions of yen				Millions of yen				%		Yen
As of June 30, 2020	124,096					56,950				44.7		590.19
As of March 31, 2020	135,516					57,329				41.3		595.12

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, 2020	-	-	-	15.00	15.00
Year ending March 31, 2021	-
Year ending March 31, 2021 (Forecast)		-	-	12.00	12.00

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)

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
85,000	(1.6)	3,500	(27.9)	3,300	(30.6)	2,000	(34.3)	21.26
September 30, 2020
Full year	175,000	0.1	8,100	(12.6)	7,700	(16.0)	5,000	(13.3)	53.16

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2020 (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

No

(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:	No
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 June 30, 2020	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 June 30, 2020	349,190	shares	As of March 31, 2020	353,331	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2020	94,019,928	shares	Three months ended June 30, 2019	94,106,752	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2020	As of June 30, 2020
Assets
Current assets
Cash and deposits	26,369	22,392
Notes receivable, accounts receivable from completed	49,989	43,464
construction contracts and other
Costs on construction contracts in progress	5,079	8,673
Advances paid	2,485	2,852
other account receivable	7,807	3,107
Other	2,710	2,810
Allowance for doubtful accounts	(12)	(5)
Total current assets	94,428	83,295
Non-current assets
Property, plant and equipment
Buildings and structures	14,221	14,253
Machinery, vehicles, tools, furniture and fixtures	25,470	25,547
Land	22,259	22,259
Construction in progress	32	25
Accumulated depreciation	(27,995)	(28,333)
Total property, plant and equipment	33,988	33,753
Intangible assets	287	293
Investments and other assets
Investment securities	2,491	2,482
Deferred tax assets	2,935	2,954
Retirement benefit asset	106	106
Other	1,409	1,363
Allowance for doubtful accounts	(131)	(151)
Total investments and other assets	6,811	6,754
Total non-current assets	41,087	40,800
Total assets		135,516	124,096

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			(Millions of yen)
		As of March 31, 2020	As of June 30, 2020
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts	33,535	30,856
and other
Short-term borrowings	8,200	3,024
Income taxes payable	1,878	545
Advances received on construction contracts in progress	8,851	9,050
Deposits received	2,343	1,613
Accrued consumption taxes	8,107	6,571
Provision for warranties for completed construction	376	330
Provision for loss on construction contracts	126	155
Provision for bonuses	997	1,591
Other	1,308	1,437
Total current liabilities	65,723	55,176
Non-current liabilities
Long-term borrowings	2,951	2,567
Deferred tax liabilities	64	65
Deferred tax liabilities for land revaluation	2,211	2,211
Provisions	55	82
Retirement benefit liability	6,637	6,509
Other	542	531
Total non-current liabilities	12,463	11,968
Total liabilities	78,187	67,145
Net assets
Shareholders' equity
Share capital	14,049	14,049
Capital surplus	6,057	6,057
Retained earnings	34,007	33,490
Treasury shares	(147)	(146)
Total shareholders' equity	53,966	53,451
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	398	398
Deferred gains or losses on hedges	3	-
Revaluation reserve for land	2,722	2,722
Foreign currency translation adjustment	(22)	(24)
Remeasurements of defined benefit plans	(1,116)	(1,058)
Total accumulated other comprehensive income	1,985	2,039
Non-controlling interests	1,377	1,459
Total net assets	57,329	56,950
Total liabilities and net assets		135,516	124,096

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2019	June 30, 2020
Net sales
Net sales of completed construction contracts	38,668	34,258
Net sales in sideline businesses	153	172
Total net sales	38,821	34,430
Cost of sales
Cost of sales of completed construction contracts	34,285	30,614
Cost of sales in sideline businesses	36	61
Total cost of sales	34,321	30,676
Gross profit
Gross profit on completed construction contracts	4,382	3,643
Gross profit on sideline business	117	111
Total gross profit	4,500	3,754
Selling, general and administrative expenses	2,262	2,206
Operating profit	2,237	1,548
Non-operating income
Interest income	12	8
Dividend income	20	18
Insurance claim income	-	17
Foreign exchange gains	-	14
Other	24	8
Total non-operating income	58	66
Non-operating expenses
Interest expenses	51	44
Foreign exchange losses	95	-
Commitment fee	7	80
Other	24	18
Total non-operating expenses	178	143
Ordinary profit	2,117	1,471
Extraordinary income
Gain on sales of non-current assets	14	30
Total extraordinary income	14	30
Extraordinary losses
Loss on retirement of non-current assets	5	5
Provision of allowance for doubtful accounts	-	3
Total extraordinary losses	5	8
Profit before income taxes	2,126	1,493
Income taxes - current	855	543
Income taxes - deferred	(162)	(28)
Total income taxes	692	515
Profit	1,434	977
Profit attributable to non-controlling interests	53	81
Profit attributable to owners of parent		1,380	895

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Consolidated statements of comprehensive income (cumulative)

		(Millions of yen)
	Three months ended	Three months ended
	June 30, 2019	June 30, 2020
Profit	1,434	977
Other comprehensive income
Valuation difference on available-for-sale securities	(101)	4
Deferred gains or losses on hedges	(10)	(3)
Foreign currency translation adjustment	(5)	(5)
Remeasurements of defined benefit plans, net of tax	48	57
Total other comprehensive income	(68)	53
Comprehensive income	1,366	1,031
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	1,318	949
Comprehensive income attributable to non-controlling	47	82
interests

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