Sumitomo Densetsu : FY2022 3rd 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 Nine Months Ended December 31, 2022

[Japanese GAAP]

Company name: SUMITOMO DENSETSU CO.,LTD.	January 31, 2023
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: February 03, 2023

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 Nine Months Ended December 31, 2022 (April 01, 2022 to December 31, 2022)

(1) Consolidated Operating Results						(% indicates changes from the previous corresponding period.)
		Net sales			Operating profit		Ordinary profit		Profit attributable to
						owners of parent
Nine months ended	Million yen		%		Million yen	%		Million yen	%		Million yen		%
December 31, 2022		121,922		7.6		7,790	0.9		8,584	1.4			5,259		(3.8)
December 31, 2021		113,329		5.2		7,720	4.4		8,466	7.0			5,467		6.6
(Note) Comprehensive income:	Nine months ended December 31, 2022:	¥		4,301 million	[	(21.4) %]
		Nine months ended December 31, 2021:	¥		5,471 million	[	(35.8) %]
		Basic earnings	Diluted earnings per
		per share				share
Nine months ended				Yen				Yen
December 31, 2022				148.56				-
December 31, 2021				153.85				-
(2) Consolidated Financial Position
		Total assets			Net assets	Capital adequacy ratio
As of			Million yen			Million yen				%
December 31, 2022		146,823			94,392				61.2
March 31, 2022		161,036			93,385				55.5
(Reference) Equity: As of	December 31, 2022:	¥	89,912 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	-		43.00		-
Fiscal year ending March 31, 2023							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 to	Basic earnings
				owners of parent	per share
			Million yen		%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year			175,000		4.4	13,100	0.7	14,000		0.7	9,200	0.6	259.86
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the nine months ended December 31, 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):

December 31, 2022:	35,635,879	shares
March 31, 2022:	35,635,879	shares
2) Total number of treasury shares at the end of the period:
December 31, 2022:	229,767	shares
March 31, 2022:	238,573	shares

3) Average number of shares during the period:
Nine months ended December 31, 2022:	35,403,734	shares
Nine months ended December 31, 2021:	35,540,836	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 December 31,2022
Assets
Current assets
Cash and deposits	55,266	51,104
Notes receivable, accounts receivable from	62,338	52,484
completed construction contracts and other
Costs on construction contracts in progress	3,212	4,868
Other	2,122	1,236
Allowance for doubtful accounts	(9)	(11)
Total current assets	122,930	109,681
Non-current assets
Property, plant and equipment
Land	7,009	7,018
Other	14,315	15,985
Accumulated depreciation	(8,131)	(8,671)
Other, net	6,184	7,314
Total property, plant and equipment	13,193	14,333
Intangible assets
Goodwill	234	147
Other	720	943
Total intangible assets	954	1,090
Investments and other assets
Investment securities	19,632	17,118
Other	4,851	4,918
Allowance for doubtful accounts	(526)	(318)
Total investments and other assets	23,957	21,718
Total non-current assets	38,106	37,141
Total assets	161,036	146,823
Liabilities
Current liabilities
Notes payable, accounts payable for construction	38,494	28,605
contracts and other
Short-term borrowings	1,609	1,547
Income taxes payable	3,169	512
Provisions	163	94
Other	17,506	15,065
Total current liabilities	60,944	45,825
Non-current liabilities
Long-term borrowings	1,001	790
Provision for retirement benefits for directors (and	16	17
other officers)
Retirement benefit liability	1,211	1,168
Other	4,477	4,629
Total non-current liabilities	6,706	6,605
Total liabilities	67,651	52,431

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		(Million yen)
	As of March 31,2022	As of December 31,2022
Net assets
Shareholders' equity
Share capital	6,440	6,440
Capital surplus	6,102	6,107
Retained earnings	67,742	69,744
Treasury shares	(437)	(421)
Total shareholders' equity	79,847	81,870
Accumulated other comprehensive income
Valuation difference on available-for-sale	9,688	8,090
securities
Deferred gains or losses on hedges	1	(0)
Foreign currency translation adjustment	286	397
Remeasurements of defined benefit plans	(375)	(447)
Total accumulated other comprehensive income	9,601	8,041
Non-controlling interests	3,936	4,480
Total net assets	93,385	94,392
Total liabilities and net assets	161,036	146,823

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

		(Million yen)
	For the nine months	For the nine months
	ended December 31,2021	ended December 31,2022
Net sales	113,329	121,922
Cost of sales	98,597	106,295
Gross profit	14,731	15,627
Selling, general and administrative expenses
Employees' salaries and allowances	2,686	3,025
Other	4,324	4,811
Total selling, general and administrative expenses	7,011	7,836
Operating profit	7,720	7,790
Non-operating income
Interest income	53	55
Dividend income	374	433
Other	368	346
Total non-operating income	796	834
Non-operating expenses
Interest expenses	25	17
Other	24	23
Total non-operating expenses	50	40
Ordinary profit	8,466	8,584
Extraordinary income
Gain on sale of investment securities	-	236
Total extraordinary income	-	236
Extraordinary losses
Loss on sale of non-current assets	8	-
Impairment losses	25	-
Total extraordinary losses	33	-
Profit before income taxes	8,432	8,821
Income taxes - current	1,838	1,791
Income taxes - deferred	829	1,228
Total income taxes	2,667	3,020
Profit	5,764	5,800
Profit attributable to non-controlling interests	296	540
Profit attributable to owners of parent	5,467	5,259

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