Valor : Consolidated Financial Results for the Three Months Ended June 30, 2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Three Months Ended June 30, 2021

[Japanese GAAP]

Company name: VALOR HOLDINGS CO.,LTD.	August 10, 2021
Stock exchange listing: Tokyo,Nagoya
Code number: 9956
URL: https://valorholdings.co.jp/
Representative: Masami Tashiro	President and Representative Director
Contact: Akira Shinohana	Executive Director

Phone: [phone]

Scheduled date of filing quarterly securities report: August 13, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: No

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

1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 01, 2021 to June 30, 2021)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Operating revenues	Operating profit	Ordinary profit	Profit attributable to
	owners of parent
Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
June 30, 2021	182,601	-	6,454	-	7,263	-	3,796	-
June 30, 2020	183,002	11.0	9,038	176.0	9,485	164.2	4,644	262.9

(Note) Comprehensive income:	Three months ended June 30, 2021:
	Three months ended June 30, 2020:

¥	4,142 million	[	-%]
¥	8,597 million	[	571.2%]

	Basic earnings		Diluted earnings per
	per share		share
Three months ended		Yen	Yen
June 30, 2021		70.69	70.66
June 30, 2020		86.50	86.47

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio
As of	Million yen		Million yen	%
June 30, 2021	400,981		157,382	36.1
March 31, 2021	404,458		155,190	35.3
(Reference) Equity: As of	June 30, 2021:	¥	144,558 million
As of	March 31, 2021:	¥	142,862 million

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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	-		25.00	-		29.00	54.00
Fiscal year ending March 31, 2022	-
Fiscal year ending March 31, 2022			26.00	-		30.00	56.00
(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 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

	Operating revenues	Operating profit	Ordinary profit	Profit attributable	Basic earnings per
	to owners of parent	share
Six months ended	Million yen	%	Million yen	%	Million yen		%	Million yen	%	Yen
368,000	-	12,200	(25.3)	13,200		(24.6)	7,100	(19.3)	132.23
September 30, 2021
Full year	732,000	-	23,000	(10.3)	25,000		(12.0)	12,000	(4.7)	223.48
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the three months ended June 30, 2021
(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

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 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
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2021:	53,987,499	shares
March 31, 2021:	53,987,499	shares
2) Total number of treasury shares at the end of the period:
June 30, 2021:	291,212	shares
March 31, 2021:	291,212	shares

3) Average number of shares during the period:
Three months ended June 30, 2021:	53,696,287	shares
Three months ended June 30, 2020:	53,694,244	shares

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Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Million yen)
			As of March 31,2021	As of June 30,2021
Assets
	Current assets
		Cash and deposits	29,924	18,690
		Notes and accounts receivable - trade	13,717	-
		Notes and accounts receivable - trade, and contract	-	14,562
		assets
		Merchandise and finished goods	52,878	56,765
		Raw materials and supplies	1,149	1,249
		Other	14,537	15,188
		Allowance for doubtful accounts	(7)	(7)
		Total current assets	112,199	106,449
	Non-current assets
		Property, plant and equipment
		Buildings and structures, net	139,460	140,583
		Land	52,096	52,106
		Other, net	26,616	27,496
		Total property, plant and equipment	218,173	220,185
		Intangible assets
		Goodwill	1,496	1,533
		Other	14,496	14,518
		Total intangible assets	15,993	16,051
		Investments and other assets
		Guarantee deposits	32,350	32,503
		Other	26,134	26,214
		Allowance for doubtful accounts	(392)	(422)
		Total investments and other assets	58,092	58,294
		Total non-current assets	292,259	294,532
	Total assets	404,458	400,981

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				(Million yen)
			As of March 31,2021	As of June 30,2021
Liabilities
	Current liabilities
		Notes and accounts payable - trade	59,423	60,530
		Short-term borrowings	42,457	40,777
		Commercial papers	10,000	10,000
		Current portion of bonds payable	10,010	10
		Income taxes payable	7,848	2,710
		Provision for bonuses	3,634	5,821
		Provisions	2,287	562
		Asset retirement obligations	30	50
		Other	29,793	31,328
		Total current liabilities	165,484	151,791
	Non-current liabilities
		Bonds payable	-	10,000
		Long-term borrowings	44,520	42,400
		Provisions	673	681
		Retirement benefit liability	5,804	5,896
		Asset retirement obligations	13,342	13,632
		Other	19,442	19,196
		Total non-current liabilities	83,783	91,807
	Total liabilities	249,267	243,599
Net assets
	Shareholders' equity
		Share capital	13,609	13,609
		Capital surplus	20,049	20,046
		Retained earnings	108,998	111,196
		Treasury shares	(561)	(561)
		Total shareholders' equity	142,095	144,291
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	880	416
		securities
		Foreign currency translation adjustment	140	96
		Remeasurements of defined benefit plans	(254)	(245)
		Total accumulated other comprehensive income	766	267
	Share acquisition rights	134	121
	Non-controlling interests	12,194	12,702
	Total net assets	155,190	157,382
Total liabilities and net assets	404,458	400,981

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Quarterly Consolidated Statements of Income and Comprehensive Income
	Quarterly Consolidated Statements of Income (For the three months)
			(Million yen)
		For the three months	For the three months
		ended June 30,2020	ended June 30,2021
Net sales	176,978	176,555
Cost of sales	129,688	129,925
Gross profit	47,289	46,630
Operating revenue	6,024	6,046
Operating gross profit	53,314	52,676
Selling, general and administrative expenses	44,275	46,221
Operating profit	9,038	6,454
Non-operating income
	Interest income	31	33
	Dividend income	2	3
	Share of profit of entities accounted for using equity	22	60
	method
	Administrative service fee income	410	403
	Rental income	218	160
	Other	305	633
	Total non-operating income	990	1,293
Non-operating expenses
	Interest expenses	219	203
	Rental costs on real estate	184	117
	Other	140	164
	Total non-operating expenses	544	485
Ordinary profit	9,485	7,263
Extraordinary income
	Gain on sale of non-current assets	24	2
	Gain on bargain purchase	17	0
	Penalty income	114	16
	Subsidy income	0	-
	Other	7	11
	Total extraordinary income	163	30
Extraordinary losses
	Loss on sale of non-current assets	12	1
	Loss on retirement of non-current assets	31	43
	Impairment losses	93	213
	Loss on voluntarily close	702	-
	Other	73	55
	Total extraordinary losses	915	313
Profit before income taxes	8,733	6,980
Income taxes - current	4,190	2,814
Income taxes - deferred	(1,022)	(522)
Total income taxes	3,167	2,292
Profit	5,565	4,687
Profit attributable to non-controlling interests	920	891
Profit attributable to owners of parent	4,644	3,796

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