August 9, 2022

Summary of Consolidated Financial Results

For the First Quarter of the Fiscal Year Ending March 31, 2023 [Japan GAAP]

Company: Takamatsu Construction Group Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Stock code: 1762

URL: https://www.takamatsu-cg.co.jp/

Representative: Hirotaka Takamatsu, President and Representative Director of the Board

Contact: Masahiro Shimabayashi, Senior Director, Group Finance Division

Contact: 06-6303-8101,info@takamatsu-cg.co.jp

Date of filing of quarterly securities report:

August 9, 2022

Date of commencement of dividend payment:

Supplementary explanatory documents:

Yes

Earnings presentation:

No

(Yen in millions, rounded down, figures in parentheses indicate negative amounts or percentages)

1. Financial results for the first quarter of the fiscal year ending March 2023 (April 1, 2022 - June 30, 2022)

(1) Consolidated result of operations (year-to-date)

(Percentage figures represent year on year changes)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

First quarter ended June 2022

60,427

(1.5)

390

(72.8)

468

(68.0)

69

(91.8)

First quarter ended June 2021

61,377

(7.2)

1,437

2.1

1,464

5.8

847

38.7

Note: Comprehensive income: First quarter of FYMar.2023: 188million yen, (84.5%) vs. last year First quarter of FYMar.2022: 1,216million yen, 51.4% vs. last year

Earnings per share

Earnings per share

(diluted)

Yen

Yen

First quarter ended June 2022

1.99

First quarter ended June 2021

24.33

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Million yen

Million yen

%

As of June 30, 2022

215,543

120,266

55.8

As of March 31, 2022

236,719

121,471

51.3

(Reference) Shareholders' equity: As of June 30, 2022: 120,231 million yen As of March 31, 2022: 121,433 million yen

2. Dividends

Dividend per share

End of

End of

End of

End of

Annual

1Q

2Q

3Q

FY

Yen

Yen

Yen

Yen

Yen

FY3/22

23.00

40.00

63.00

FY3/23

FY3/23 (Est.)

23.00

40.00

63.00

Note: Change in the estimation of divided from the latest announcement: No

3. Consolidated forecast for the fiscal year ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(Percentage figures represent year on year changes)

Orders received

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings

owners of parent

per share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

First half

164,000

14.3

136,000

8.0

3,600

15.1

3,600

14.4

1,600

(4.9)

45.95

Full year

360,000

15.1

300,000

13.7

12,000

6.9

12,000

4.4

6,800

1.1

195.30

Note: Change in the forecast from the latest announcement: No

  • Notes
    1. Changes in significant subsidiaries (Changes of specific subsidiaries that accompanies scope change of consolidation): No

Included

(company name) Excluded (company name)

  1. Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: No
  2. Changes in accounting principles and estimates, and retrospective restatement
    1. Changes due to revision of accounting standards: Yes

(b) Changes other than (a):

No

(c) Changes in accounting estimates:

No

(d) Retrospective restatement:

No

(4) Number of shares outstanding (ordinary shares)

(a) Shares outstanding (including treasury shares)

As of June 30, 2022:

34,818,578

As of March 31, 2022:

34,818,578

(b) Treasury shares

As of June 30, 2022:

As of March 31, 2022:

(c) Average number of shares (quarterly cumulative period)

Period ended June 30, 2022:

34,818,578

Period ended June 30, 2021

34,818,632

  • Auditing of financial statements by CPA and/or CPA firm is not conducted to this summary of financial results.
  • Cautionary statement regarding forecasts and special notes

(Note on forward looking statements)

Forward-looking statements in this material are based on the information available to management at the time this report was prepared. Actual results may differ significantly from these statements for number of reasons.

Index for Supplementary Information

1. Qualitative Information on Quarterly Financial Results………………………………………...

2

(1)

Explanation of business results…...……………………………….………………………......

2

(2)

Explanation of Financial Condition……………………………..……………………………..

2

(3)

Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements.……..

3

2. Quarterly Consolidated Financial Statements and Major Notes…………………………..……

4

(1)

Quarterly consolidated balance sheet................................................................................

4

(2)

Quarterly consolidated statement of income and consolidated statements of comprehensive income...............

6

Quarterly consolidated statement of income....................................................................

6

Quarterly consolidated statement of comprehensive income……………………...………

7

(3)

Notes to consolidated financial statements........................................................................

8

(Going concern assumptions)...............................................................................................

8

(Significant change in shareholders' equity).......................................................................

8

(Changes in Accounting Policies)........................................................................................

8

3. Consolidated Orders Received and Net Sales……………………………………………..............

8

1

1. Qualitative Information on Quarterly Financial Results

  1. Explanation of business results

During the first quarter of the current fiscal year ended March 2023, as we continued to be under the influence of the COVID-19, the search for a lifestyle with new normal took place. At the same time, the economy remained relatively firm. On the other hand, due to supply chain fragmentation, depreciation of yen, the bad situation in Ukraine, and so on, the trends of economy and business are uncertain.

In the domestic construction market, public construction investment, including National Resilience Plan, is expected to continue to be firm in the current fiscal year. However, with regard to private-sector construction investment, although corporate capital investment is recovering to the level prior to the spread of COVID-19 infections, conditions remain challenging due to weak yen and soaring material prices. At this point in time, TCG group is not seeing material price hikes as a major factor putting pressure on profits, but we will continue to closely monitor price trends and strive to prevent such price hikes from putting pressure on profits. During the first quarter of the current fiscal year ended March 2023, orders received were 78,486 million yen (up 15.0% from the same period of the previous year), continuing the strong performance of the previous fiscal year. Net sales were 60,427 million yen (down 1.5% from the same period of the previous year). As for profits, operating profit decreased by 72.8% to 390 million yen, ordinary profit decreased by 68.0% to 468 million yen, and profit attributable to owners of parent decreased by 91.8% to 69 million yen.

Results by business segment are as follows.

Segment profit is adjusted with operating profit on the quarterly consolidated statements of income. Adjustments to segment profit include -950 million yen in general and administrative expenses that do not belong to any reportable segment and -179 million yen in other adjustments. (Architecture)

Orders received were 38,605 million yen (up 6.5% vs previous Q1) and net sales were 29,400 million yen (up 2.4% vs previous Q1), resulting in the segment profit of 245 million yen (up 32.5% vs previous Q1).

(Civil Engineering)

Orders received were 28,777 million yen (up 20.4% vs previous Q1), while completed construction work were 21,312 million yen (down 13.2% vs previous Q1) due to a decrease in work in hand resulting from weak orders in the previous period, resulting in the segment profit of 666 million yen (down 54.6% vs previous Q1).

(Real Estate)

Net sales from real estate sales and leasing were 9,714 million yen (up 19.9% vs previous Q1), while segment profit were 608 million yen (down 13.5% vs previous Q1).

  1. Explanation of Financial Condition (Assets)
    Total assets at the end of the first quarter of the current fiscal year were 215,543 million yen, down 21,176 million yen from the end of the previous fiscal year.
    The main factors were increases of 1,939 million yen in real estate for sale, 1,928 million yen in costs on real estate business, and 1,613 million yen in construction in progress, while cash and deposits decreased by 13,897 million yen and notes receivable, accounts receivable from completed construction contracts and other decreased by 14,126 million yen.
    (Liabilities)
    Liabilities decreased by 19,970 million yen from the end of the previous fiscal year to 95,277 million yen.
    The main factors were increases of 1,713 million yen in advances received on construction contracts in progress and 1,974 million yen in provision for bonuses, while there were decreases of 3,948 million yen in accounts payable for construction contracts, 17,200 million yen in short- term borrowings and 1,676 million yen in income taxes payable.

2

(Net Assets)

Net assets decreased by 1,205 million yen from the end of the previous fiscal year to 120,266 million yen.

The main factor was a decrease in retained earnings of 1,323 million yen due to dividend payments of 1,392 million yen, while profit attributable to owners of parent of 69 million yen was recorded.

As a result of the above, shareholders' equity, which is net assets less non-controlling interests, totaled 120,231 million yen, and the shareholders' equity ratio increased 4.5 percentage points from the end of the previous fiscal year to 55.8%.

  1. Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements

There are no changes to the consolidated earnings forecasts for the first half and full year of the fiscal year ending March 2023, from those announced on May 11, 2022.

3

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Takamatsu Construction Group Co. Ltd. published this content on 09 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2022 11:15:04 UTC.