Nihon Tokushu Toryo : Consolidated Financial Results for the Three Months Ended June 30, 2022

Disclaimer: This document is an English translation of the original document in Japanese and has been prepared solely for reference purposes. In the event of any discrepancy between this English translation and the original in Japanese, the original shall prevail in all respects.

Consolidated Financial Results

for the Three Months Ended June 30, 2022

[Japanese GAAP]

August 10, 2022

Company name: NIHON TOKUSHU TORYO CO., LTD.

Stock exchange listing: Tokyo Stock Exchange

Code number: 4619

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

Representative: Hiroshi Onda, President, COO

Contact: Yosuke Rikitake, Corporate Officer, General Manager of Financial & Accounting Division and General Manager of General Administration Division, Operation Planning & Coordination Group

Phone: [phone]
Scheduled date of filing quarterly securities report:	August 12, 2022
Scheduled date of commencing dividend payments:	-

Availability of supplementary explanatory materials 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 1, 2022 - June 30, 2022)

(1) Consolidated Operating Results (cumulative)	(% 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	13,262	6.1		41	(65.3)	799	44.0	338	31.2
June 30, 2021	12,501	51.6		120	-	555	-	257	-

(Note) Comprehensive income	Three months ended June 30, 2022: ¥1,343 million [(14.7)%]
		Three months ended June 30, 2021: ¥1,575 million [-%]
	Basic earnings	Diluted
	earnings per
	per share
	share
Three months ended		Yen		Yen
June 30, 2022		15.58		-
June 30, 2021		11.88		-
(2) Consolidated Financial Position
		Total assets	Net assets	Equity ratio
		Million yen		Million yen	%
As of June 30, 2022		79,553	50,218	56.1
As of March 31, 2022		79,792	49,725	55.5

(Reference) Equity As of June 30, 2022: ¥44,612 million As of March 31, 2022: ¥44,266 million

- 1 -

2. Dividends

			Annual dividends per share
		1st quarter-end	2nd quarter-end		3rd quarter-end	Year-end	Total
Fiscal year ended		Yen	Yen		Yen	Yen	Yen
	-	18.00		-	22.00	40.00
March 31, 2022
Fiscal year ending		-
March 31, 2023
Fiscal year ending
March 31, 2023			20.00		-	22.00	42.00
(forecast)

(Note) Revision to the forecast for dividends announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - 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
First half	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
28,500	13.6	350	146.8	1,250	60.5	750	535.1	34.53
Full year	60,500	10.4	2,450	65.3	4,000	52.4	2,700	107.6	124.31

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

* Notes:

1. Changes in significant subsidiaries during the period under review: No (Changes in specified subsidiaries resulting in changes in scope of consolidation)

Newly included: -	(Company name: - )
Excluded: -	(Company name: - )

1. Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: Yes
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 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
4. Total number of issued and outstanding shares (common shares)
5. 1. Total number of issued and outstanding shares at the end of the period (including treasury shares):

June 30, 2022:	23,611,200 shares
March 31, 2022:	23,611,200 shares
2) Total number of treasury shares at the end of the period:
June 30, 2022:	1,891,804 shares
March 31, 2022:	1,891,100 shares

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

Three months ended June 30, 2022:	21,719,739 shares
Three months ended June 30, 2021:	21,705,063 shares

- 2 -

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		8,948	8,081
Notes and accounts receivable - trade, and contract	13,802	13,317
assets
Electronically recorded monetary claims - operating		2,987	2,885
Merchandise and finished goods	1,824	1,968
Work in process		1,409	1,462
Raw materials and supplies	1,431	1,489
Income taxes refund receivable		－	201
Other	1,456	1,588
Allowance for doubtful accounts		(3)	(3)
Total current assets	31,857	30,991
Non-current assets
Property, plant and equipment
Buildings and structures, net		10,028	10,055
Machinery, equipment and vehicles, net	8,481	8,229
Land		4,703	4,701
Construction in progress	483	673
Other, net		1,374	1,417
Total property, plant and equipment	25,071	25,076
Intangible assets
Other	1,265	1,312
Total intangible assets		1,265	1,312
Investments and other assets
Investment securities		18,255	18,329
Long-term loans receivable	1,504	1,661
Deferred tax assets		99	104
Other	1,793	2,136
Allowance for doubtful accounts		(55)	(57)
Total investments and other assets	21,597	22,174
Total non-current assets		47,934	48,562
Total assets		79,792	79,553

- 3 -

(Million yen)

As of March 31, 2022

As of June 30, 2022

Liabilities

Current liabilities

Notes and accounts payable - trade Electronically recorded obligations - operating Short-term borrowings

Lease liabilities Income taxes payable

Provision for bonuses for directors (and other officers)

Other

Total current liabilities

Non-current liabilities

Long-term borrowings

Lease liabilities

Retirement benefit liability

Deferred tax liabilities

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

Foreign currency translation adjustment

Remeasurements of defined benefit plans

Total accumulated other comprehensive income

Non-controlling interests

Total net assets

Total liabilities and net assets

8,649	8,564
3,376	3,093
5,617	6,296
6	7
601	277
			72		－
3,949
3,682
22,273	21,922
3,209
2,880
17	19
3,313	3,282
1,147	1,114
105	116
7,792	7,413
30,066	29,335
4,753
4,753
4,194	4,199
30,547	30,406
(1,112)	(1,112)
38,383	38,246
4,989
4,542
702	1,638
191	184
5,883	6,365
5,458	5,605
49,725	50,218
79,792	79,553

- 4 -

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income

		(Million yen)
	For the three months	For the three months
	ended June 30, 2021	ended June 30, 2022
Net sales	12,501	13,262
Cost of sales	10,167	10,898
Gross profit	2,334	2,363
Selling, general and administrative expenses	2,214	2,321
Operating profit	120	41

Non-operating income Dividend income

Share of profit of entities accounted for using equity method

Subsidies for employment adjustment

Foreign exchange gains

Other

Total non-operating income

Non-operating expenses

Interest expenses

Other

Total non-operating expenses

Ordinary profit

Extraordinary income

Gain on sale of non-current assets

Insurance claim income

Gain on sale of investment securities

Total extraordinary income

Extraordinary losses

Loss on disposal of non-current assets

Total extraordinary losses

Profit before income taxes

Income taxes

Profit

Profit attributable to non-controlling interests Profit attributable to owners of parent

79	102
276	415
5	10
18	194
76	60
456	783
18	12
2	13
21	25
555	799
0	20

0－

117－

118	20
17	1
17	1
656	818
242	227
414	590
156	252
257	338

- 5 -