Seikitokyu Kogyo : Consolidated Financial Results for the Six Months Ended September 30, 2021

Consolidated Financial Results

for the Six Months Ended September 30, 2021

[Japanese GAAP]

November 8, 2021

Company name: SEIKITOKYU KOGYO CO., LTD.

Stock exchange listing: Tokyo Stock Exchange

Code number: 1898

URL: https://www.seikitokyu.co.jp

Representative: Yoshikazu Taira, Representative Director, President

Contact: Takanori Kawano, General Manager, Finance Department

Phone: [phone]

Scheduled date of filing quarterly securities report: November 9, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing materials on quarterly financial results: Unavailable

Schedule of quarterly financial results briefing session: Scheduled (for institutional investors and analysts)

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

1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (April 1, 2021 to September 30, 2021)

(1) Consolidated Operating Results (Cumulative)								(% indicates year-on-year changes)
					Net sales			Operating profit			Ordinary profit		Profit attributable to
										owners of parent
		Six months ended		Million yen	%		Million yen	%				Million yen	%		Million yen	%
		September 30, 2021		38,663		10.6				1,753	(21.6)			1,737		(22.1)	1,191	(40.6)
		September 30, 2020		34,950		12.2				2,236	55.5				2,230		55.6	2,007	(23.5)
	(Note) Comprehensive	income: Six months	ended September 30, 2021: ¥1,272 million [(37.6)%]
					Six months ended September 30, 2020: ¥2,038 million [(23.6)%]
				Basic earnings		Diluted earnings
					per share					per share
		Six months ended					Yen						Yen
		September 30, 2021					30.01						-
		September 30, 2020					49.79						-
(2) Consolidated Financial Position
					Total assets				Net assets		Equity ratio		Net assets per share
							Million yen				Million yen				%				Yen
		As of September 30, 2021			71,472				39,030				54.6				1,001.97
		As of March 31, 2021				79,409				40,790				51.4				1,010.99
	(Reference) Equity: As of September 30, 2021: ¥39,030 million
				As of March 31, 2021: ¥40,790 million
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					-			0.00				-				43.00		43.00
		Fiscal year ending March 31, 2022					-			0.00
		Fiscal year ending March 31, 2022													-				30.00		30.00
		(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 1, 2021 to March 31, 2022)

							(% indicates year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
Full year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
88,600	(1.6)	4,900	(42.1)	4,800	(42.8)	3,300	(36.3)	84.72

(Note) Revision to the financial results forecast announced most recently: Yes

* Notes:

1. Changes in significant subsidiaries during the period under review
   (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
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 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

(Note) For details, please see "Quarterly Consolidated Financial Statements and Primary Notes, (4) Notes to Quarterly Consolidated Financial Statements, (Changes in accounting policies)" on page 6 of the attachment.

1. Number of shares issued (common shares)
   1) Total number of shares issued at the end of the period (including treasury shares):

September 30, 2021:	40,414,407 shares
March 31, 2021:	40,414,407 shares
2) Total number of treasury shares at the end of the period:
September 30, 2021:	1,461,028 shares
March 31, 2021:	67,641 shares

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

Six months ended September 30, 2021:	39,716,615 shares
Six months ended September 30, 2020:	40,317,010 shares

• These consolidated financial results are outside the scope of quarterly review by certified public accountants or audit corporations.
• Explanation of the proper use of financial results forecasts and other notes

1. Financial results forecasts are based on information available and certain assumptions deemed reasonable by the Company at the time of preparation of this document, which may contain various uncertain factors. Thus, actual results and outcomes may differ from these forecasts.
2. The Company is planning to hold a briefing session for institutional investors and analysts on Tuesday, November 30, 2021. The briefing materials to be distributed at the session are scheduled to be promptly posted on the Company's website after the session is held.

(Reference) Non-Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(% indicates year-on-year changes)

	Net sales		Ordinary profit	Profit		Basic earnings
			per share
Full year	Million yen	%	Million yen	%	Yen	%	Yen
84,500	(0.2)	4,400	(44.7)	3,100	(35.2)	79.58
(Note) Revision to the financial results forecast announced most recently: Yes

• Explanation of the proper use of financial results forecast and other notes
  Financial results forecasts are based on information available and certain assumptions deemed reasonable by the Company at the time of preparation of this document, which may contain various uncertain factors. Thus, actual results and outcomes may differ from these forecasts.

Quarterly Consolidated Financial Statements and Primary Notes

(1) Quarterly Consolidated Balance Sheets

					(Million yen)
			As of March 31, 2021		As of September 30, 2021
Assets
Current assets
Cash and deposits	14,035	16,007
Notes receivable, accounts receivable from	34,150	25,242
completed construction contracts and other
Costs on construction contracts in progress	2,565	425
Raw materials and supplies	386	379
Other	2,683	3,859
Allowance for doubtful accounts			-	(9)
Total current assets	53,821	45,903
Non-current assets
Property, plant and equipment
Buildings and structures	9,220	9,374
Machinery, vehicles, tools, furniture and			20,681		21,040
fixtures
Land	14,327	14,310
Construction in progress	245	455
Accumulated depreciation		(20,820)	(21,361)
Total property, plant and equipment	23,655	23,819
Intangible assets			263	261
Investments and other assets
Other	1,669	1,489
Total investments and other assets			1,669		1,489
Total non-current assets			25,588	25,569
Total assets		79,409	71,472

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					(Million yen)
			As of March 31, 2021		As of September 30, 2021
Liabilities
Current liabilities
Notes payable, accounts payable for			21,767		17,947
construction contracts and other
Short-term borrowings	7	104
Income taxes payable	1,147	462
Advances received on construction contracts in	2,070	1,794
progress
Provision for warranties for completed			15		15
construction
Provision for loss on construction contracts	7	7
Provision for bonuses	1,645	1,500
Other		4,216	3,102
Total current liabilities	30,877	24,935
Non-current liabilities
Long-term borrowings	5,000	5,000
Retirement benefit liability	2,597	2,382
Other	144	124
Total non-current liabilities			7,742	7,506
Total liabilities	38,619	32,442
Net assets
Shareholders' equity
Share capital	2,000	2,000
Capital surplus	519	521
Retained earnings	38,767	38,135
Treasury shares	(40)	(1,251)
Total shareholders' equity			41,246	39,405
Accumulated other comprehensive income
Valuation difference on available-for-sale	21	19
securities
Foreign currency translation adjustment	(15)	(13)
Remeasurements of defined benefit plans	(461)	(380)
Total accumulated other comprehensive			(455)		(374)
income
Total net assets			40,790	39,030
Total liabilities and net assets		79,409	71,472

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