Daikokutenbussan : Summary of Consolidated Financial Results for the Year Ended May 31, 2022(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, 2022

(Based on Japanese GAAP)

																					July 6, 2022
Company name:	DAIKOKUTENBUSSAN CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	2791	URL http://www.e-dkt.co.jp/
Representative:	Representative Director and President	SHOJI OGA
Inquiries:	Senior Managing Director		MASASHI OMURA	TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	August 24, 2022
Scheduled date to file Securities Report:		August 24, 2022
Scheduled date to commence dividend payments:		August 25, 2022
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, 2022 (from June 1, 2021 to May 31, 2022)
(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, 2022		224,150		-	8,540		(0.7)			8,923	1.1	5,617		1.8
Year ended May 31, 2021		221,551		4.5	8,599		44.9				8,827	43.6	5,518		47.7
			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, 2022		403.30		403.23						12.8					11.3				3.8
Year ended May 31, 2021		396.21		396.16						14.2					11.8				3.9
(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, 2022			81,930					46,802							56.9			3,348.84
As of May 31, 2021			75,635					41,537							54.7			2,971.58
(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, 2022		10,406					(9,620)							897					9,540
Year ended May 31, 2021		9,853					(7,006)							(2,436)					7,857
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, 2021		-		0.00	-		29.00			29.00		403	7.3			1.0
Year ended May 31, 2022		-		0.00	-		29.00			29.00		403	7.2			0.9
Year ending May 31, 2023		-			0.00	-				29.00			29.00			9.9
(Forecast)

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3. Forecast of consolidated financial results for the year ending May 31, 2023 (from June 1, 2022 to May 31, 2023)

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

111,700

2.3

2,200

(41.4)

2,400

(39.0)

1,600

(35.9)

114.86

November 30, 2022

Full year

234,600

4.7

5,900

(30.9)

6,200

(30.5)

4,100

(27.0)

294.35

4. Notes

(1) Changes in significant subsidiaries during the year ended May 31, 2022

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:

Yes

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, 2022

14,474,200 shares

As of May 31, 2021

14,474,200 shares

Number of treasury shares at the end of the period

As of May 31, 2022

545,354 shares

As of May 31, 2021

545,320 shares

Average number of shares during the period

Year ended May 31, 2022

13,928,856 shares

Year ended May 31, 2021

13,928,880 shares

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of May 31, 2021	As of May 31, 2022
Assets
Current assets
Cash and deposits	7,857	9,540
Accounts receivable - trade	126	123
Merchandise and finished goods	6,529	7,118
Work in process	92	152
Raw materials and supplies	304	378
Other	4,183	4,050
Allowance for doubtful accounts	(203)	(203)
Total current assets	18,889	21,160
Non-current assets
Property, plant and equipment
Buildings and structures	55,087	56,800
Accumulated depreciation	(28,398)	(31,299)
Buildings and structures, net	26,688	25,501
Machinery, equipment and vehicles	3,272	3,675
Accumulated depreciation	(2,149)	(2,442)
Machinery, equipment and vehicles, net	1,123	1,232
Tools, furniture and fixtures	12,791	13,509
Accumulated depreciation	(8,608)	(9,694)
Tools, furniture and fixtures, net	4,183	3,814
Land	8,101	8,558
Leased assets	1,292	522
Accumulated depreciation	(673)	(256)
Leased assets, net	619	266
Construction in progress	2,458	8,036
Other	881	807
Accumulated depreciation	(371)	(338)
Other, net	509	468
Total property, plant and equipment	43,685	47,878
Intangible assets	322	335
Investments and other assets
Investment securities	445	474
Long-term loans receivable	23	6
Construction assistance fund receivables	1,677	1,516
Deferred tax assets	4,256	4,404
Guarantee deposits	4,907	4,829
Other	1,483	1,381
Allowance for doubtful accounts	(55)	(57)
Total investments and other assets	12,738	12,556
Total non-current assets	56,746	60,770
Total assets		75,635	81,930

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			(Millions of yen)
		As of May 31, 2021	As of May 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	13,385	14,523
Short-term borrowings	3,904	2,587
Lease liabilities	173	96
Income taxes payable	2,520	1,810
Provision for bonuses	555	567
Asset retirement obligations	6	6
Other	7,438	6,682
Total current liabilities	27,983	26,273
Non-current liabilities
Long-term borrowings	1,070	4,095
Lease liabilities	488	163
Deferred tax liabilities	146	136
Retirement benefit liability	40	41
Asset retirement obligations	2,909	3,008
Other	1,457	1,409
Total non-current liabilities	6,114	8,854
Total liabilities	34,097	35,128
Net assets
Shareholders' equity
Share capital	1,661	1,661
Capital surplus	1,823	1,823
Retained earnings	38,695	43,909
Treasury shares	(880)	(880)
Total shareholders' equity	41,300	46,514
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	90	131
Total accumulated other comprehensive income	90	131
Share acquisition rights	46	52
Non-controlling interests	100	104
Total net assets	41,537	46,802
Total liabilities and net assets		75,635	81,930

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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, 2021	May 31, 2022
Net sales	221,551	224,150
Cost of sales	168,526	170,098
Gross profit	53,025	54,052
Selling, general and administrative expenses
Salalaries allowances and bonuses	19,615	20,048
Provision for bonuses	526	536
Retirement benefit expenses	70	78
Utilities expenses	3,433	4,053
Rent expenses	6,382	6,627
Depreciation	4,281	4,182
Provision of allowance for doubtful accounts	0	(0)
Other	10,116	9,985
Total selling, general and administrative expenses	44,425	45,511
Operating profit	8,599	8,540
Non-operating income
Interest income	29	28
Dividend income	3	4
Rental income	87	94
Reversal of allowance for doubtful accounts	27	-
Insurance claim income	136	155
Penalty income	-	77
Other	58	122
Total non-operating income	342	482
Non-operating expenses
Interest expenses	25	28
Rental expenses	49	52
Loss on disposal of non-current assets	34	-
Other	5	19
Total non-operating expenses	114	99
Ordinary profit	8,827	8,923
Extraordinary income
Gain on sale of non-current assets	2	-
Subsidy income	35	0
Total extraordinary income	38	0
Extraordinary losses
Impairment losses	177	63
Loss on tax purpose reduction entry of non-current assets	35	0
Total extraordinary losses	212	64
Profit before income taxes	8,653	8,860
Income taxes - current	3,614	3,414
Income taxes - deferred	(490)	(175)
Total income taxes	3,124	3,239
Profit	5,528	5,620
Profit attributable to non-controlling interests	9	3
Profit attributable to owners of parent		5,518	5,617

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