EXEO : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022 (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, 2022 (Based on Japanese GAAP)

Company name:	EXEO Group, Inc.
Stock exchange listing:	Tokyo
Stock code:	1951	URL https://www.exeo.co.jp/
Representative:	President and CEO	Tetsuya Funabashi
	Operating Officer
Inquiries:	General Manager of Accounts & Finance	Shigeki Hayashi
Division
	Chief Financial Officer
Scheduled date to file Quarterly Securities Report:	August 10, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

August 10, 2022

TEL [phone]

								(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
(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, 2022	120,883		0.5		3,716		(55.6)	5,728		(35.8)	2,912	(47.3)
Three months ended June 30, 2021	120,257		13.3		8,378		101.3	8,918		76.2	5,530	80.0
	Earnings per share		Diluted earnings per share
			Yen					Yen
Three months ended June 30, 2022			26.56					26.54
Three months ended June 30, 2021			49.86					49.81
(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, 2022	498,446		303,101				59.8	2,735.20
As of March 31, 2022	535,617		307,053				56.6	2,748.21

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, 2022	-	44.00	-	52.00	96.00
Year ending March 31, 2023	-
Year ending March 31, 2023 (Forecast)		51.00	-	51.00	102.00

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

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	600,000	0.9	38,500	(9.2)	39,400	(12.9)	25,600	(7.8)	236.02

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2022 (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 June 30, 2022	116,812,419	shares	As of March 31, 2022	116,812,419	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	7,812,178	shares	As of March 31, 2022	6,424,185	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2022	109,661,131	shares	Three months ended June 30, 2021	110,911,348	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	54,860	56,303
Notes receivable, accounts receivable from completed	217,644	149,957
construction contracts and other
Securities	750	263
Costs on construction contracts in progress	46,194	63,931
Other	7,279	10,259
Allowance for doubtful accounts	(68)	(131)
Total current assets	326,660	280,583
Non-current assets
Property, plant and equipment
Buildings and structures, net	39,884	41,070
Land	61,633	61,847
Other, net	25,382	26,350
Total property, plant and equipment	126,900	129,268
Intangible assets
Goodwill	9,207	12,048
Other	4,538	7,014
Total intangible assets	13,745	19,062
Investments and other assets
Other	68,929	70,173
Allowance for doubtful accounts	(618)	(640)
Total investments and other assets	68,311	69,532
Total non-current assets	208,957	217,863
Total assets		535,617	498,446

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			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts	69,579	51,401
and other
Short-term borrowings	30,756	24,687
Income taxes payable	10,706	1,372
Advances received on construction contracts in progress	9,404	13,500
Provisions	4,679	3,345
Other	32,636	28,161
Total current liabilities	157,764	122,469
Non-current liabilities
Bonds payable	30,000	30,000
Long-term borrowings	18,006	19,167
Provisions	762	775
Retirement benefit liability	9,548	9,703
Other	12,483	13,228
Total non-current liabilities	70,800	72,875
Total liabilities	228,564	195,344
Net assets
Shareholders' equity
Share capital	6,888	6,888
Capital surplus	48,546	48,437
Retained earnings	244,892	242,188
Treasury shares	(13,063)	(16,027)
Total shareholders' equity	287,263	281,487
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	6,937	8,581
Foreign currency translation adjustment	(985)	(1,128)
Remeasurements of defined benefit plans	10,154	9,196
Total accumulated other comprehensive income	16,106	16,649
Share acquisition rights	185	166
Non-controlling interests	3,497	4,798
Total net assets	307,053	303,101
Total liabilities and net assets		535,617	498,446

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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, 2021	June 30, 2022
Net sales	120,257	120,883
Cost of sales	102,026	105,518
Gross profit	18,231	15,365
Selling, general and administrative expenses	9,852	11,648
Operating profit	8,378	3,716
Non-operating income
Interest income	4	17
Foreign exchange gains	-	1,063
Other	909	1,262
Total non-operating income	914	2,343
Non-operating expenses
Interest expenses	39	104
Other	334	227
Total non-operating expenses	374	332
Ordinary profit	8,918	5,728
Profit before income taxes	8,918	5,728
Income taxes	3,307	2,720
Profit	5,610	3,007
Profit attributable to non-controlling interests	80	95
Profit attributable to owners of parent		5,530	2,912

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