Kintetsu : Financial Results for 2Q of FY2022

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 Six Months Ended September 30, 2022
		(Based on Japanese GAAP)
					November 11, 2022
Company name:	Kintetsu Group Holdings Co.,Ltd.
Stock exchange listing:	Tokyo
Stock code:	9041	URL https://www.kintetsu-g-hd.co.jp/
Representative:	President		Toshihide Ogura
Inquiries:	General Manager of Accounting and Finance	Naoyuki Isokawa	TEL [phone]
	Division
Scheduled date to file Quarterly Securities Report:	November 11, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for analysts and institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)

(1) Consolidated operating results (cumulative)									Percentages indicate year-on-year changes
	Operating revenue		Operating profit	Ordinary profit		Profit attributable to
				owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen			%	Millions of yen		%
Six months ended September 30, 2022	623,066		113.6		13,679		-		25,293			-		64,331		436.0
Six months ended September 30, 2021	291,679			-		(19,045)		-		(7,391)			-		12,002		-
	Earnings per share		Diluted earnings per share
				Yen						Yen
Six months ended September 30, 2022			338.26						-
Six months ended September 30, 2021			63.11						-
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen			Millions of yen					%
As of September 30, 2022	2,463,560		481,593				17.3
As of March 31, 2022	1,895,770		421,760				20.0
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			-		0.00				-				25.00			25.00
Year ending March 31, 2023			-		0.00
Year ending March 31, 2023 (Forecast)											-				50.00			50.00

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

	Operating revenue	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	1,696,000	145.3	56,000		-	60,000	95.7	76,000	77.8	399.61

1

4. Notes

1. Changes in significant subsidiaries during the six months ended September 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:

Yes

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:	No
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 September 30, 2022	190,662,061	shares	As of March 31, 2022	190,662,061	shares
Number of treasury shares at the end of the period
	As of September 30, 2022	477,983	shares	As of March 31, 2022	480,661	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2022	190,183,097	shares	Six months ended September 30, 2021	190,182,389	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of September 30, 2022
Assets
Current assets
Cash and deposits	78,902	228,041
Notes and accounts receivable - trade, and contract assets	59,730	283,169
Merchandise and finished goods	9,575	9,108
Work in process	4,032	5,823
Raw materials and supplies	4,934	4,545
Land and buildings for sale	132,965	133,533
Other	41,966	78,982
Allowance for doubtful accounts	(537)	(2,272)
Total current assets	331,569	740,931
Non-current assets
Property, plant and equipment
Buildings and structures, net	545,943	553,881
Land	671,685	686,735
Construction in progress	2,262	2,974
Other, net	69,202	114,526
Total property, plant and equipment	1,289,093	1,358,118
Intangible assets
Goodwill	13	109,124
Other	13,944	61,639
Total intangible assets	13,958	170,763
Investments and other assets
Investment securities	141,291	60,107
Other	118,679	133,266
Allowance for doubtful accounts	(1,075)	(1,826)
Total investments and other assets	258,895	191,547
Total non-current assets	1,561,947	1,720,430
Deferred assets	2,252	2,198
Total assets		1,895,770	2,463,560

3

			(Millions of yen)
		As of March 31, 2022	As of September 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	49,084	165,611
Short-term borrowings	204,018	368,269
Commercial papers	40,000	25,000
Current portion of bonds payable	12,753	53,137
Income taxes payable	4,262	14,354
Provision for bonuses	7,912	17,366
Provision for loss on exchanging gift certificates	5,495	5,675
Provision for loss on contract	-	9,699
Other	180,518	266,634
Total current liabilities	504,045	925,748
Non-current liabilities
Bonds payable	300,191	293,622
Long-term borrowings	503,125	558,621
Retirement benefit liability	8,569	11,971
Other	158,077	192,003
Total non-current liabilities	969,964	1,056,218
Total liabilities	1,474,009	1,981,967
Net assets
Shareholders' equity
Share capital	126,476	126,476
Capital surplus	61,927	50,585
Retained earnings	80,555	140,267
Treasury shares	(1,150)	(1,142)
Total shareholders' equity	267,809	316,187
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	5,572	4,286
Deferred gains or losses on hedges	(0)	0
Revaluation reserve for land	87,108	87,125
Foreign currency translation adjustment	1,837	2,049
Remeasurements of defined benefit plans	16,293	15,373
Total accumulated other comprehensive income	110,812	108,835
Non-controlling interests	43,139	56,570
Total net assets	421,760	481,593
Total liabilities and net assets		1,895,770	2,463,560

4

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		September 30, 2021	September 30, 2022
Operating revenue	291,679	623,066
Operating expenses
Operating expenses and cost of sales of transportation	253,824	534,215
Selling, general and administrative expenses	56,899	75,171
Total operating expenses	310,724	609,386
Operating profit (loss)	(19,045)	13,679
Non-operating income
Interest income	80	247
Dividend income	621	452
Share of profit of entities accounted for using equity method	7,922	7,747
Subsidies for employment adjustment	5,601	948
Foreign exchange gains	42	3,663
Other	2,667	4,850
Total non-operating income	16,935	17,910
Non-operating expenses
Interest expenses	3,819	4,014
Other	1,462	2,281
Total non-operating expenses	5,282	6,296
Ordinary profit (loss)	(7,391)	25,293
Extraordinary income
Contribution for construction	4,572	2,566
Gain on sale of non-current assets	275	25
Gain on sale of investment securities	2,547	354
Gain on step acquisitions	-	47,536
Gain on bargain purchase	10,863	-
Other	953	82
Total extraordinary income	19,211	50,565
Extraordinary losses
Tax purpose reduction entry of contribution for construction	4,531	2,563
Loss on sale of non-current assets	26	22
Loss on retirement of non-current assets	478	517
Impairment losses	426	22
Other	1,517	391
Total extraordinary losses	6,981	3,517
Profit before income taxes	4,839	72,341
Income taxes	(7,065)	7,311
Profit	11,905	65,029
Profit (loss) attributable to non-controlling interests	(97)	698
Profit attributable to owners of parent		12,002	64,331

5