CREEK & RIVER : Summary of Consolidated Financial Results for the Nine Months Ended November 30, 2021 (Based on Japanese GAAP)

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 Nine Months Ended November 30, 2021 (Based on Japanese GAAP)

					January 6, 2022
Company name:	CREEK & RIVER Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	4763	URL https://www.cri.co.jp/
Representative:	President and Representative Director	Yukihiro Ikawa
Inquiries:	Director		Jun Kurosaki	TEL [phone]
Scheduled date to file Quarterly Securities Report:	January 13, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended November 30, 2021 (from March 1, 2021 to November 30, 2021)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit	Profit attributable to
					owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen		%
Nine months ended November 30, 2021	31,276		13.5		3,011	57.7		3,017		55.7		1,978		56.6
Nine months ended November 30, 2020	27,557		12.3		1,909	15.3		1,938		16.7		1,263		22.9
	Earnings per share		Diluted earnings per share
			Yen					Yen
Nine months ended November 30, 2021			88.76					88.32
Nine months ended November 30, 2020			57.05					57.00
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen				%
As of November 30, 2021		19,519					11,951				60.3
As of February 28, 2021		18,087					10,318				56.2
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 February 28, 2021		-			0.00			-			16.00			16.00
Year ending February 28, 2022		-			0.00			-
Year ending February 28, 2022 (Forecast)												18.00			18.00

3. Forecast of consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 2022)

Percentages indicate year-on-year changes

	Net sales		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	41,300	10.7	3,200	30.7	3,200	28.7	1,950	18.4	87.48

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4. Notes

1. Changes in significant subsidiaries during the nine months ended November 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

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 November 30, 2021	23,009,000	shares	As of February 28, 2021	23,009,000	shares
Number of treasury shares at the end of the period
	As of November 30, 2021	717,700	shares	As of February 28, 2021	717,667	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended November 30, 2021	22,291,300	shares	Nine months ended November 30, 2020	22,153,391	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of February 28, 2021	As of November 30, 2021
Assets
Current assets
Cash and deposits	8,315,320	9,482,951
Notes and accounts receivable - trade	5,043,213	5,139,952
Merchandise	5,255	24,659
Finished goods	332	16,521
Work in process	184,548	183,602
Supplies	1,631	1,725
Other	614,336	509,765
Allowance for doubtful accounts	(40,088)	(41,173)
Total current assets	14,124,550	15,318,005
Non-current assets
Property, plant and equipment	691,664	661,112
Intangible assets
Goodwill	159,301	171,103
Software	427,845	401,331
Other	43,502	113,552
Total intangible assets	630,648	685,988
Investments and other assets
Investment securities	742,370	843,741
Investments in capital	510	333,510
Leasehold and guarantee deposits	898,765	888,275
Deferred tax assets	422,580	312,597
Other	581,981	576,046
Allowance for doubtful accounts	(5,944)	(99,324)
Total investments and other assets	2,640,263	2,854,846
Total non-current assets	3,962,576	4,201,947
Total assets	18,087,126	19,519,952
Liabilities
Current liabilities
Trade accounts payable	2,230,143	2,292,951
Accrued expenses	808,127	975,092
Short-term borrowings	1,008,230	850,348
Current portion of long-term borrowings	195,140	117,140
Income taxes payable	382,724	535,356
Accrued consumption taxes	724,322	615,637
Provision for bonuses	340,753	322,015
Guarantee implementation reserve	19,045	20,765
Other	927,656	740,273
Total current liabilities	6,636,145	6,469,580
Non-current liabilities
Long-term borrowings	711,518	682,385
Retirement benefit liability	247,555	85,829
Provision for Shares benefits	169,761	217,686
Other	3,512	112,906
Total non-current liabilities	1,132,347	1,098,806
Total liabilities		7,768,493	7,568,387

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			(Thousands of yen)
		As of February 28, 2021	As of November 30, 2021
Net assets
Shareholders' equity
Share capital	1,177,194	1,177,194
Capital surplus	2,250,451	2,250,451
Retained earnings	7,136,504	8,763,159
Treasury shares	(476,011)	(476,070)
Total shareholders' equity	10,088,139	11,714,735
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	87,245	67,327
Foreign currency translation adjustment	(13,423)	(3,050)
Total accumulated other comprehensive income	73,822	64,276
Share acquisition rights	5,750	800
Non-controlling interests	150,921	171,752
Total net assets	10,318,633	11,951,564
Total liabilities and net assets		18,087,126	19,519,952

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Nine months ended	Nine months ended
		November 30, 2020	November 30, 2021
Net sales	27,557,812	31,276,687
Cost of sales	17,555,611	19,455,537
Gross profit	10,002,201	11,821,149
Selling, general and administrative expenses	8,092,447	8,809,536
Operating profit	1,909,754	3,011,612
Non-operating income
Interest income	3,078	3,822
Dividend income	4,101	4,131
Surrender value of insurance policies	401	821
Subsidy income	13,339	10,110
Share of profit of entities accounted for using equity method	5,800	-
Miscellaneous income	7,022	7,304
Other	2,272	4,288
Total non-operating income	36,016	30,479
Non-operating expenses
Interest expenses	3,957	4,096
Foreign exchange losses	1,568	700
Loss on cancellation of insurance policies	-	5,031
Provision of allowance for doubtful accounts	-	2,059
Share of loss of entities accounted for using equity method	-	10,293
Miscellaneous loss	1,509	1,017
Other	704	1,071
Total non-operating expenses	7,740	24,270
Ordinary profit	1,938,030	3,017,821
Extraordinary income
Gain on sales of non-current assets	-	581
Gain on sales of investment securities	-	15,038
Gain on sales of shares of subsidiaries	-	1,000
Gain on reversal of share acquisition rights	-	5,750
Gain on bargain purchase	-	552
Gain on termination of retirement benefit plan	-	17,913
Total extraordinary income		-	40,836

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