EF ON : Summary of Consolidated Financial Results for the Six Months Ended December 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 Six Months Ended December 31, 2021 (Based on Japanese GAAP)

				February 10, 2022
Company name:	EF-ON INC.
Stock exchange listing:	Tokyo
Stock code:	9514	URL http://www.ef-on.co.jp/
Representative:	President and Representative Director	TOMOTADA SHIMAZAKI
Inquiries:	Executive Director	HISAHITO KOIKE	TEL [phone]
Scheduled date to file Quarterly Securities Report:	February 10, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended December 31, 2021 (from July 1, 2021 to December 31, 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		%
Six months ended December 31, 2021	6,702		0.2		792	(47.1)		714		(50.0)		483		(51.4)
Six months ended December 31, 2020	6,691		23.1		1,499	14.1		1,429		14.9			995		38.6
	Earnings per share		Diluted earnings per share
			Yen					Yen
Six months ended December 31, 2021			22.38					-
Six months ended December 31, 2020			46.01					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen				%
As of December 31, 2021		48,426					17,129				35.4
As of June 30, 2021		45,603					16,924				37.1
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 June 30, 2021		-			0.00			-				8.00			8.00
Year ending June 30, 2022		-			0.00
Year ending June 30, 2022 (Forecast)									-				8.00			8.00

3. Forecast of consolidated financial results for the year ending June 30, 2022 (from July 1, 2021 to June 30, 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	13,500	2.7	1,650	(36.2)	1,500	(37.4)	1,050	(37.3)	48.60

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4. Notes

1. Changes in significant subsidiaries during the six months ended December 31, 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

No

(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:	Yes
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 December 31, 2021 21,636,579 shares As of June 30, 2021 21,636,579 shares Number of treasury shares at the end of the period

	As of December 31, 2021	149,120	shares	As of June 30, 2021	-	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended December 31, 2021	21,605,324	shares	Six months ended December 31, 2020	21,637,760	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of June 30, 2021	As of December 31, 2021
Assets
Current assets
Cash and deposits	5,272	5,452
Notes and accounts receivable - trade	1,270	1,290
Supplies	874	1,049
Consumption taxes receivable	31	28
Deferred income tax - non current	508	725
Other	123	190
Total current assets	8,081	8,737
Non-current assets
Property, plant and equipment
Buildings and structures	8,847	8,861
Accumulated depreciation	(1,589)	(1,691)
Buildings and structures, net	7,257	7,170
Machinery, equipment and vehicles	21,243	20,433
Accumulated depreciation	(6,483)	(6,068)
Machinery, equipment and vehicles, net	14,760	14,365
Tools, furniture and fixtures	236	247
Accumulated depreciation	(156)	(167)
Tools, furniture and fixtures, net	79	79
Land	3,229	3,252
Leased assets	772	652
Accumulated depreciation	(695)	(604)
Leased assets, net	77	48
Trees	770	794
Construction in progress	10,839	13,253
Total property, plant and equipment	37,015	38,965
Intangible assets
Right to use electricity supply facilities	329	321
Other	8	12
Total intangible assets	338	334
Investments and other assets
Deferred tax assets	88	94
Other	80	295
Total investments and other assets	168	389
Total non-current assets	37,521	39,689
Total assets		45,603	48,426

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			(Millions of yen)
		As of June 30, 2021	As of December 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	1,000	1,365
Short-term borrowings	200	-
Current portion of long-term borrowings	1,938	2,394
Accounts payable - other	1,145	1,114
Current portion of long-term accounts payable-other	70	2
Lease obligations	58	46
Income taxes payable	308	231
Provision for bonuses	44	46
Provision for maintenance	403	425
Other	175	224
Total current liabilities	5,344	5,851
Non-current liabilities
Long-term borrowings	23,194	25,260
Long-term accounts payable - other	0	-
Lease obligations	32	12
Provision for share awards	-	13
Deferred tax liabilities	107	158
Total non-current liabilities	23,334	25,445
Total liabilities	28,678	31,297
Net assets
Shareholders' equity
Share capital	2,292	2,292
Capital surplus	1,292	1,292
Retained earnings	13,339	13,649
Treasury shares	-	(105)
Total shareholders' equity	16,924	17,129
Total net assets	16,924	17,129
Total liabilities and net assets		45,603	48,426

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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
		December 31, 2020	December 31, 2021
Net sales	6,691	6,702
Cost of sales	4,803	5,333
Gross profit	1,887	1,368
Selling, general and administrative expenses	388	575
Operating profit	1,499	792
Non-operating income
Interest income	0	0
Gain on sale of scraps	1	2
Gain on sale of non-current assets	-	1
Subsidy income	3	-
Subsidy income	-	3
Other	7	1
Total non-operating income	12	9
Non-operating expenses
Interest expenses	74	83
Commission expenses	3	3
Loss on retirement of non-current assets	2	0
Other	2	1
Total non-operating expenses	82	87
Ordinary profit	1,429	714
Extraordinary income
Gain on reversal of share acquisition rights	8	-
Total extraordinary income	8	-
Extraordinary losses
Head office relocation expenses	-	31
Other	-	0
Total extraordinary losses	-	31
Profit before income taxes	1,438	682
Income taxes - current	259	154
Income taxes - deferred	183	44
Total income taxes	442	199
Profit	995	483
Profit attributable to owners of parent		995	483

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