Fujimori Kogyo : Summary of Consolidated Financial Results for the Six Months Ended September 30, 2021

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 September 30,

2021 (Based on Japanese GAAP)

November 10, 2021

Company name

FUJIMORI KOGYO CO., LTD.

Stock exchange listing

Tokyo

Stock Code

7917

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

Representative

President & CEO

Eishi Fuyama

Inquiries

Senior Executive Officer in Charge of Administration

Michihiko Sato

TEL [phone]

Scheduled date to file Quarterly Securities Report

November 12, 2021

Scheduled date to commence dividend payments

November 29, 2021

Preparation of supplementary material on quarterly earnings

yes

Holding of quarterly earnings performance review

yes

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes)

Net sales

Operating income

Ordinary income

Net income attributable

to owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Six months ended September 30, 2021

61,828

5.8

5,763

6.5

6,094

5.9

4,214

11.7

Six months ended September 30, 2020

58,465

0.8

5,409

12.8

5,754

18.2

3,772

20.1

Note: Comprehensive income

Six months ended September 30, 2021

¥4,947 million [21.7%]

Six months ended September 30, 2020

¥4,064 million [24.2%]

Net income

Diluted net income

per share

per share

Yen

Yen

Six months ended September 30, 2021

221.19

218.51

Six months ended September 30, 2020

198.23

195.79

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of September 30, 2021

123,016

82,113

62.1

4,002.64

As of March 31, 2021

117,393

77,941

61.8

3,811.40

Reference: Equity

As of September 30, 2021

¥76,371 million

As of March 31, 2021

¥72,539 million

2. Cash dividends

Annual dividends

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2021

-

35.00

-

40.00

75.00

Year ending March 31, 2022

-

40.00

Year ending March 31, 2022 (Forecast)

-

40.00

80.00

Note: Revisions to the forecasts of cash dividends most recently announced: none

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

(Percentages indicate year-on-year changes)

	Net sales		Operating income	Ordinary income	Net income attributable	Net income
		to owners of parent	per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	120,000	2.3	10,300	0.1	10,500	(2.0)	7,000	(3.8)	367.11
Note: Revisions to the	forecasts most recently announced: none
*Notes
(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(changes in specified subsidiaries resulting in change in scope of consolidation):		none
(2) Application of special accounting for preparing quarterly consolidated financial statements:	none

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections

a. Changes in accounting policies due to revisions to accounting standards and other regulations:	yes
b. Changes in accounting policies due to other reasons:	none
c. Changes in accounting estimates:	none
d. Restatement of prior period financial statements after error corrections:	none

1. Number of issued shares (common shares)
   a. Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2021	19,267,760 shares	As of March 31, 2021	19,267,760 shares
b. Number of treasury shares at the end of the period
	As of September 30, 2021	187,360 shares	As of March 31, 2021	235,631 shares
c. Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2021	19,055,073 shares	Six months ended September 30, 2020	19,032,209 shares

• Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  The above forecasts of consolidated financial results are based on information currently available to the Company and on certain assumptions deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Consequently, actual business and other results may differ substantially due to various factors.

1. Quarterly consolidated financial statements

(1) Quarterly consolidated balance sheets

		(Millions of yen)
	As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	8,980	7,580
Notes and accounts receivable - trade	33,520	-
Notes and accounts receivable - trade, and contract	-	34,881
assets
Securities	15,297	18,897
Merchandise and finished goods	5,279	5,823
Work in process	1,645	1,867
Raw materials and supplies	3,804	4,459
Other	2,324	2,383
Allowance for doubtful accounts	(43)	(45)
Total current assets	70,809	75,847
Non-current assets
Property, plant and equipment
Buildings and structures	42,450	43,073
Accumulated depreciation	(25,037)	(25,784)
Buildings and structures, net	17,412	17,289
Machinery, equipment and vehicles	58,405	60,046
Accumulated depreciation	(49,665)	(51,167)
Machinery, equipment and vehicles, net	8,739	8,879
Tools, furniture and fixtures	7,706	7,929
Accumulated depreciation	(6,547)	(6,809)
Tools, furniture and fixtures, net	1,159	1,120
Land	8,130	8,214
Construction in progress	2,306	3,044
Other	891	975
Accumulated depreciation	(309)	(373)
Other, net	582	601
Total property, plant and equipment	38,330	39,148
Intangible assets
Goodwill	283	268
Other	777	748
Total intangible assets	1,061	1,017
Investments and other assets
Investment securities	5,717	5,542
Deferred tax assets	703	698
Other	812	788
Allowance for doubtful accounts	(41)	(26)
Total investments and other assets	7,191	7,002
Total non-current assets	46,583	47,169
Total assets	117,393	123,016

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		(Millions of yen)
	As of March 31, 2021	As of September 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	21,763	23,257
Short-term loans payable	1,643	966
Accounts payable - other	3,455	3,552
Income taxes payable	1,915	1,576
Provision for bonuses	1,484	1,616
Provision for directors' bonuses	185	89
Other	1,567	2,379
Total current liabilities	32,014	33,438
Non-current liabilities
Long-term loans payable	1,075	1,025
Deferred tax liabilities	312	231
Net defined benefit liability	4,599	4,686
Provision for directors' retirement benefits	576	579
Other	873	941
Total non-current liabilities	7,436	7,463
Total liabilities	39,451	40,902
Net assets
Shareholders' equity
Capital stock	6,600	6,600
Capital surplus	6,454	6,436
Retained earnings	57,358	60,811
Treasury shares	(502)	(399)
Total shareholders' equity	69,910	73,449
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,175	2,051
Foreign currency translation adjustment	425	841
Remeasurements of defined benefit plans	27	30
Total accumulated other comprehensive income	2,628	2,922
Subscription rights to shares	523	466
Non-controlling interests	4,878	5,274
Total net assets	77,941	82,113
Total liabilities and net assets	117,393	123,016

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1. Quarterly consolidated statements of income (cumulative) and quarterly consolidated statements of comprehensive income (cumulative)
   (Quarterly consolidated statements of income (cumulative))

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2020	September 30, 2021
Net sales	58,465	61,828
Cost of sales	45,223	47,423
Gross profit	13,241	14,405
Selling, general and administrative expenses	7,832	8,642
Operating income	5,409	5,763
Non-operating income
Interest income	47	32
Dividend income	53	79
Insurance and dividend income	47	31
Foreign exchange gains	15	72
Income from recycling	28	50
Subsidy income	0	1
Other	191	90
Total non-operating income	385	359
Non-operating expenses
Interest expenses	12	10
Sales discounts	17	18
Other	10	0
Total non-operating expenses	40	28
Ordinary income	5,754	6,094
Extraordinary income
Gain on sales of non-current assets	1	3
Gain on sales of investment securities	-	0
Total extraordinary income	1	4
Extraordinary losses
Loss on sales of non-current assets	-	0
Loss on retirement of non-current assets	5	15
Loss on valuation of investment securities	89	-
Total extraordinary losses	94	15
Income before income taxes	5,661	6,082
Income taxes - current	1,710	1,548
Income taxes - deferred	(127)	(17)
Total income taxes	1,583	1,531
Net income	4,078	4,551
Net income attributable to non-controlling interests	305	336
Net income attributable to owners of parent	3,772	4,214

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