Daikokutenbussan : Summary of Consolidated Financial Results for the Year Ended May 31, 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 Year Ended May 31, 2021

(Based on Japanese GAAP)

																				July 7, 2021
Company name:	DAIKOKUTENBUSSAN CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	2791	URL http://www.e-dkt.co.jp/
Representative:	President and Representative Director	SHOJI OGA
	Senior Managing Director,
Inquiries:	General Manager, Corporate Strategy Office TOMOHIRO KAWATA		TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	August 25, 2021
Scheduled date to file Securities Report:		August 25, 2021
Scheduled date to commence dividend payments:		August 26, 2021
Preparation of supplementary material on financial results:		No
Holding of financial results meeting:						Yes
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended May 31, 2021 (from June 1, 2020 to May 31, 2021)
(1) Consolidated operating results													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		%
Year ended May 31, 2021		221,551		4.5	8,599		44.9			8,827	43.6	5,518		47.7
Year ended May 31, 2020		212,059		15.6	5,935		116.5			6,149	110.7	3,735		-
			Earnings per share	Diluted earnings per	Profit attributable to	Ordinary profit/total	Operating profit/net
				share			owners of					assets			sales
								parent/equity
				Yen		Yen				%					%				%
Year ended May 31, 2021		396.21		396.16					14.2					11.8				3.9
Year ended May 31, 2020		267.50			-				10.8					8.4				2.8
(2) Consolidated financial position
			Total assets		Net assets			Equity ratio	Net assets per share
			Millions of yen	Millions of yen						%					Yen
As of May 31, 2021			75,635					41,537						54.7			2,971.58
As of May 31, 2020			73,489					36,331						49.3			2,598.76
(3) Consolidated cash flows
			Cash flows from	Cash flows from		Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen			Millions of yen		Millions of yen
Year ended May 31, 2021		9,853					(7,006)						(2,436)					7,857
Year ended May 31, 2020		13,263					(5,673)						(7,506)					7,446
2. Cash dividends
						Annual dividends per share						Total cash	Dividend payout	Ratio of dividends
																to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen		Yen	Yen		Yen		Yen	Millions of yen	%			%
Year ended May 31, 2020		-		0.00	-		27.00		27.00		376	10.1			1.0
Year ended May 31, 2021		-		0.00	-		29.00		29.00		403	7.3			1.0
Year ending May 31, 2022		-			0.00	-				29.00		29.00			8.4
(Forecast)

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3. Forecast of consolidated financial results for the year ending May 31, 2022 (from June 1, 2021 to May 31, 2022)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Six months ending

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

109,500

-

3,600

(21.7)

3,700

(22.2)

2,200

(24.4)

157.94

November 30, 2021

Full year

222,700

-

7,900

(8.1)

8,000

(9.4)

4,800

(13.0)

344.60

4. Notes

(1) Changes in significant subsidiaries during the year ended May 31, 2021

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) 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

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of May 31, 2021

14,474,200 shares

As of May 31, 2020

14,474,200 shares

Number of treasury shares at the end of the period

As of May 31, 2021

545,320 shares

As of May 31, 2020

545,320 shares

Average number of shares during the period

Year ended May 31, 2021

13,928,880 shares

Year ended May 31, 2020

13,963,142 shares

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of May 31, 2020	As of May 31, 2021
Assets
Current assets
Cash and deposits	7,446	7,857
Notes and accounts receivable - trade	110	126
Merchandise and finished goods	5,970	6,529
Work in process	171	92
Raw materials and supplies	351	304
Other	5,448	4,183
Allowance for doubtful accounts	(203)	(203)
Total current assets	19,296	18,889
Non-current assets
Property, plant and equipment
Buildings and structures	52,331	55,087
Accumulated depreciation	(25,618)	(28,398)
Buildings and structures, net	26,712	26,688
Machinery, equipment and vehicles	3,024	3,272
Accumulated depreciation	(1,578)	(2,149)
Machinery, equipment and vehicles, net	1,445	1,123
Tools, furniture and fixtures	11,541	12,791
Accumulated depreciation	(7,399)	(8,608)
Tools, furniture and fixtures, net	4,141	4,183
Land	7,944	8,101
Leased assets	1,015	1,292
Accumulated depreciation	(566)	(673)
Leased assets, net	449	619
Construction in progress	274	2,458
Other	877	881
Accumulated depreciation	(404)	(371)
Other, net	473	509
Total property, plant and equipment	41,443	43,685
Intangible assets	338	322
Investments and other assets
Investment securities	374	445
Long-term loans receivable	23	23
Construction assistance fund receivables	1,814	1,677
Deferred tax assets	3,833	4,256
Guarantee deposits	4,825	4,907
Other	1,624	1,483
Allowance for doubtful accounts	(84)	(55)
Total investments and other assets	12,411	12,738
Total non-current assets	54,193	56,746
Total assets		73,489	75,635

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			(Millions of yen)
		As of May 31, 2020	As of May 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	14,988	13,385
Short-term borrowings	3,793	3,904
Lease obligations	111	173
Income taxes payable	2,048	2,520
Provision for bonuses	484	555
Asset retirement obligations	6	6
Other	7,772	7,438
Total current liabilities	29,206	27,983
Non-current liabilities
Long-term borrowings	3,112	1,070
Lease obligations	364	488
Deferred tax liabilities	192	146
Retirement benefit liability	41	40
Asset retirement obligations	2,730	2,909
Other	1,511	1,457
Total non-current liabilities	7,951	6,114
Total liabilities	37,157	34,097
Net assets
Shareholders' equity
Share capital	1,661	1,661
Capital surplus	1,823	1,823
Retained earnings	33,553	38,695
Treasury shares	(880)	(880)
Total shareholders' equity	36,157	41,300
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	39	90
Total accumulated other comprehensive income	39	90
Share acquisition rights	42	46
Non-controlling interests	91	100
Total net assets	36,331	41,537
Total liabilities and net assets		73,489	75,635

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		May 31, 2020	May 31, 2021
Net sales	212,059	221,551
Cost of sales	162,287	168,526
Gross profit	49,772	53,025
Selling, general and administrative expenses
Salalaries allowances and bonuses	18,652	19,615
Provision for bonuses	457	526
Retirement benefit expenses	75	70
Utilities expenses	3,628	3,433
Rent expenses	6,190	6,382
Depreciation	4,249	4,281
Provision of allowance for doubtful accounts	0	0
Other	10,582	10,116
Total selling, general and administrative expenses	43,837	44,425
Operating profit	5,935	8,599
Non-operating income
Interest income	30	29
Dividend income	3	3
Rental income	90	87
Reversal of allowance for doubtful accounts	-	27
Insurance claim income	115	136
Other	95	58
Total non-operating income	335	342
Non-operating expenses
Interest expenses	35	25
Rental expenses	52	49
Provision of allowance for doubtful accounts	28	-
Loss on disposal of non-current assets	-	34
Other	4	5
Total non-operating expenses	121	114
Ordinary profit	6,149	8,827
Extraordinary income
Gain on sale of non-current assets	67	2
Subsidy income	18	35
Total extraordinary income	86	38
Extraordinary losses
Loss on sale of non-current assets	24	-
Impairment losses	326	177
Loss on tax purpose reduction entry of non-current assets	18	35
Total extraordinary losses	369	212
Profit before income taxes	5,866	8,653
Income taxes - current	2,829	3,614
Income taxes - deferred	(709)	(490)
Total income taxes	2,120	3,124
Profit	3,745	5,528
Profit attributable to non-controlling interests	10	9
Profit attributable to owners of parent		3,735	5,518

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