Warabeya Nichiyo : Summary of Consolidated Financial Results for the Six Months Ended August 31, 2021

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 August 31, 2021 (Based on Japanese GAAP)

October 7, 2021

Company name:

WARABEYA NICHIYO HOLDINGS CO., LTD.

Stock exchange listing:

Tokyo

Stock code:

2918

URL

https://www.warabeya.co.jp/ja/index.html

Representative:

Representative Director, President

Hiroyuki Otomo

Inquiries:

Director, Managing Executive Officer

Naoshi Asano

TEL

03-5363-7010

Scheduled date to file Quarterly Securities Report:

October 14, 2021

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended August 31, 2021 (from March 1, 2021 to August 31, 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 August 31, 2021

95,980

(0.6)

3,192

164.9

3,928

155.8

2,435

-

Six months ended August 31, 2020

96,591

(12.0)

1,205

(39.0)

1,535

(27.5)

(247)

-

(Note) Comprehensive income:

Six months ended August 31, 2021: ¥3,061 million [-%]

Six months ended August 31, 2020: ¥(189) million [-%]

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended August 31, 2021

139.51

-

Six months ended August 31, 2020

(14.14)

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of August 31, 2021

82,361

46,705

56.4

As of February 28, 2021

82,273

44,372

53.7

(Reference) Equity capital:

As of August

31, 2021: ¥46,418 million

As of February 28, 2021: ¥44,164 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 February 28, 2021

-

0.00

-

40.00

40.00

Year ending February 28, 2022

-

0.00

Year ending February 28, 2022 (Forecast)

-

40.00

40.00

(Note) Revisions to the most recently announced dividends forecasts: None

3. Forecast of consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 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

192,000

(1.2)

4,500

35.1

5,300

42.8

3,200

368.7

183.30

(Note) Revisions to the

most recently announced financial forecasts: Yes

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* Notes
(1)	Changes in significant subsidiaries during the six months ended August 31, 2021	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
	Newly consolidated: -	Excluded: -
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	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 August 31, 2021	17,625,660	shares	As of February 28, 2021	17,625,660	shares
Number of treasury shares at the end of the period
	As of August 31, 2021	166,573	shares	As of February 28, 2021	172,298	shares

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

Six months ended August 31, 2021

17,456,110 shares Six months ended August 31, 2020

17,522,793 shares

(Note) The Company has established a BIP Trust. Shares of the Company held by the trust are included in treasury shares.

• This financial summary document is outside the scope of quarterly review conducted by certified public accountants or an audit corporation.
• Explanation of appropriate use of forecasts of financial results, and other important items:
  Financial forecasts and other forward-looking statements in this document are based on information available at the time of preparation and on certain assumptions that are deemed to be reasonable. These forward-looking statements are not guarantees of future performance and actual results may differ materially from these forecasts due to a variety of reasons.

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Quarterly consolidated financial statements

(1) Consolidated balance sheets

			(Millions of Yen)
		As of February 28, 2021	As of August 31, 2021
Assets
Current assets
Cash and deposits	8,946	7,716
Notes and accounts receivable - trade	16,101	17,640
Merchandise and finished goods	1,975	1,207
Raw materials and supplies	901	1,091
Other	1,508	1,882
Allowance for doubtful accounts	(0)	(25)
Total current assets	29,433	29,511
Non-current assets
Property, plant and equipment
Buildings and structures	56,157	54,455
Accumulated depreciation	(33,304)	(31,845)
Buildings and structures, net	22,852	22,609
Machinery, equipment and vehicles	18,497	18,379
Accumulated depreciation	(15,080)	(14,925)
Machinery, equipment and vehicles, net	3,417	3,453
Land	11,890	11,885
Construction in progress	38	500
Other	14,821	13,563
Accumulated depreciation	(8,542)	(7,619)
Other, net	6,278	5,944
Total property, plant and equipment	44,477	44,393
Intangible assets
Goodwill	153	117
Other	523	427
Total intangible assets	677	544
Investments and other assets
Other	7,852	8,038
Allowance for doubtful accounts	(166)	(127)
Total investments and other assets	7,685	7,911
Total non-current assets	52,840	52,849
Total assets		82,273	82,361

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			(Millions of Yen)
		As of February 28, 2021	As of August 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	9,195	9,882
Current portion of long-term borrowings	607	615
Accounts payable - other	8,251	7,053
Income taxes payable	812	621
Provision for bonuses	1,252	1,190
Provision for bonuses for directors (and other officers)	-	54
Other	3,419	3,027
Total current liabilities	23,539	22,445
Non-current liabilities
Long-term borrowings	2,806	2,248
Lease obligations	5,640	5,190
Retirement benefit liability	4,148	3,926
Provision for Directors stock-based rewards	179	179
Asset retirement obligations	1,411	1,437
Other	176	226
Total non-current liabilities	14,361	13,209
Total liabilities	37,900	35,655
Net assets
Shareholders' equity
Share capital	8,049	8,049
Capital surplus	8,100	8,100
Retained earnings	28,693	30,424
Treasury shares	(367)	(349)
Total shareholders' equity	44,475	46,224
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	116	166
Deferred gains or losses on hedges	1	(0)
Foreign currency translation adjustment	(262)	167
Remeasurements of defined benefit plans	(166)	(139)
Total accumulated other comprehensive income	(311)	194
Non-controlling interests	208	287
Total net assets	44,372	46,705
Total liabilities and net assets		82,273	82,361

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1. Consolidated statements of income and comprehensive income Consolidated statements of income

			(Millions of Yen)
		Six months ended	Six months ended
		August 31, 2020	August 31, 2021
Net sales	96,591	95,980
Cost of sales	81,524	78,919
Gross profit	15,066	17,060
Selling, general and administrative expenses	13,861	13,867
Operating profit	1,205	3,192
Non-operating income
Interest income	4	3
Dividend income	310	275
Rental income	90	101
Insurance claim income	27	46
Gain on forgiveness of debts	-	313
Share of profit of entities accounted for using equity method	59	78
Other	26	110
Total non-operating income	518	928
Non-operating expenses
Interest expenses	57	45
Loss on retirement of non-current assets	13	24
Rental costs	66	81
Other	50	41
Total non-operating expenses	188	193
Ordinary profit	1,535	3,928
Extraordinary income
Gain on sales of non-current assets	61	-
Total extraordinary income	61	-
Extraordinary losses
Impairment loss	1,157	283
Total extraordinary losses	1,157	283
Profit before income taxes	440	3,645
Income taxes - current	608	721
Income taxes - deferred	32	390
Total income taxes	641	1,111
Profit (loss)	(200)	2,534
Profit attributable to non-controlling interests	46	99
Profit (loss) attributable to owners of parent		(247)	2,435

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