Sumitomo Densetsu : FY2022 1st Quarter Consolidated Financial Results

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, 2022

[Japanese GAAP]

Company name: SUMITOMO DENSETSU CO.,LTD.	July 29, 2022
Stock exchange listing: Tokyo
Code number: 1949
URL: https://www.sem.co.jp
Representative: Makoto Tani	President
Contact: Koji Tanioku	General Manager, Finance & Accounting Department

Phone: [phone]

Scheduled date of filing quarterly securities report: August 03, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: No

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, 2022 (April 01, 2022 to June 30, 2022)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Three months ended	Million yen		%	Million yen	%	Million yen	%	Million yen	%
June 30, 2022	37,091		16.7	2,066	20.9	2,420	23.7	1,470	16.6
June 30, 2021	31,779		(3.8)	1,709	(16.7)	1,956	(14.2)	1,261	(14.3)

(Note) Comprehensive income:	Three months ended June 30, 2022:
	Three months ended June 30, 2021:

¥	1,310 million	[	(25.7) %]
¥	1,763 million	[	(41.7) %]

	Basic earnings	Diluted earnings per
	per share		share
Three months ended	Yen			Yen
June 30, 2022	41.54			-
June 30, 2021	35.46			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio
As of	Million yen			Million yen	%
June 30, 2022	149,576			92,925	59.3
March 31, 2022	161,036			93,385	55.5
(Reference) Equity: As of	June 30, 2022:	¥	88,758 million
As of	March 31, 2022:	¥	89,448 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, 2022	-		37.00	-		49.00	86.00
Fiscal year ending March 31, 2023	-
Fiscal year ending March 31, 2023			43.00	-		43.00	86.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

			Net sales		Operating profit	Ordinary profit	Profit attributable	Basic earnings
				to owners of parent	per share
Six months ended			Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
		79,000		8.4	4,800	(3.8)	5,200	(5.7)	3,300	(7.5)	93.22
September 30, 2022
Full year			175,000		4.4	13,100	0.7	14,000	0.7	9,200	0.6	259.89
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the three months ended June 30, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New	-	(Company name:								)
Exclusion:	-	(Company name:								)
(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: No
   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, 2022:	35,635,879	shares
March 31, 2022:	35,635,879	shares
2) Total number of treasury shares at the end of the period:
June 30, 2022:	229,023	shares
March 31, 2022:	238,573	shares

3) Average number of shares during the period:
Three months ended June 30, 2022:	35,399,694	shares
Three months ended June 30, 2021:	35,576,823	shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters

This presentation contains various forward-looking statements which are based on the current expectations and assumptions of future event.

Please be advised that there are possibilities actual performance could be different from those described in this material.

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Million yen)
			As of March 31,2022	As of June 30,2022
Assets
	Current assets
		Cash and deposits	55,266	51,525
		Notes receivable, accounts receivable from	62,338	54,081
		completed construction contracts and other
		Costs on construction contracts in progress	3,212	4,008
		Other	2,122	2,323
		Allowance for doubtful accounts	(9)	(9)
		Total current assets	122,930	111,929
	Non-current assets
		Property, plant and equipment
		Land	7,009	7,024
		Other	14,315	15,028
		Accumulated depreciation	(8,131)	(8,397)
		Other, net	6,184	6,630
		Total property, plant and equipment	13,193	13,655
		Intangible assets
		Goodwill	234	205
		Other	720	913
		Total intangible assets	954	1,119
		Investments and other assets
		Investment securities	19,632	18,551
		Other	4,851	4,831
		Allowance for doubtful accounts	(526)	(511)
		Total investments and other assets	23,957	22,872
		Total non-current assets	38,106	37,647
	Total assets	161,036	149,576
Liabilities
	Current liabilities
		Notes payable, accounts payable for construction	38,494	32,179
		contracts and other
		Short-term borrowings	1,609	1,513
		Income taxes payable	3,169	140
		Provisions	163	39
		Other	17,506	16,074
		Total current liabilities	60,944	49,948
	Non-current liabilities
		Long-term borrowings	1,001	823
		Provision for retirement benefits for directors (and	16	15
		other officers)
		Retirement benefit liability	1,211	1,253
		Other	4,477	4,610
		Total non-current liabilities	6,706	6,703
	Total liabilities	67,651	56,651

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				(Million yen)
			As of March 31,2022	As of June 30,2022
Net assets
	Shareholders' equity
		Share capital	6,440	6,440
		Capital surplus	6,102	6,107
		Retained earnings	67,742	67,478
		Treasury shares	(437)	(419)
		Total shareholders' equity	79,847	79,605
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	9,688	8,937
		securities
		Deferred gains or losses on hedges	1	3
		Foreign currency translation adjustment	286	615
		Remeasurements of defined benefit plans	(375)	(403)
		Total accumulated other comprehensive income	9,601	9,152
	Non-controlling interests	3,936	4,166
	Total net assets	93,385	92,925
Total liabilities and net assets	161,036	149,576

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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 30,2021	ended June 30,2022
Net sales	31,779	37,091
Cost of sales	27,860	32,445
Gross profit	3,918	4,645
Selling, general and administrative expenses
Employees' salaries and allowances	859	983
Other	1,350	1,595
Total selling, general and administrative expenses	2,209	2,579
Operating profit	1,709	2,066
Non-operating income
Interest income	16	16
Dividend income	173	207
Foreign exchange gains	-	75
Other	73	63
Total non-operating income	262	363
Non-operating expenses
Interest expenses	6	5
Other	7	3
Total non-operating expenses	14	9
Ordinary profit	1,956	2,420
Extraordinary losses
Impairment losses	24	-
Total extraordinary losses	24	-
Profit before income taxes	1,932	2,420
Income taxes - current	66	157
Income taxes - deferred	528	650
Total income taxes	595	808
Profit	1,336	1,611
Profit attributable to non-controlling interests	75	141
Profit attributable to owners of parent	1,261	1,470

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