Consolidated Financial Results for the nine months ended December 31, 2021 [PDF:171KB]

Note: This document is a translation of the Japanese original. The Japanese original has been disclosed in Japan in accordance with Japanese accounting standards and the Financial Instruments and Exchange Act. This document does not contain or constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on this document. In the case that there is any discrepancy between the Japanese original and this document, the Japanese original is assumed to be correct.

Consolidated Financial Results for the Nine Months Ended December 31, 2021

[Japanese GAAP]

February 10, 2022

Company name: HASEKO Corporation

Stock exchange listing: Tokyo Stock Exchange,1st section

Code number: 1808

URL: https://www.haseko.co.jp/hc/

(Amounts are rounded to the nearest million yen)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 01, 2021 to December 31, 2021)

(1) Consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating income

Ordinary income

Net income attributable

to owners of parent

Nine months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

December 31, 2021

626,052

13.1

61,465

31.8

60,976

33.3

41,826

34.5

December 31, 2020

553,667

(9.4)

46,628

(23.7)

45,737

(25.4)

31,107

(26.4)

(Note) Comprehensive income:

Nine months ended December 31, 2021:

¥

43,976 million

[

35.0%]

Nine months ended December 31, 2020:

¥

32,579 million

[

(18.7) %]

Net income

Diluted net income

per share

per share

Nine months ended

Yen

Yen

December 31, 2021

152.20

-

December 31, 2020

107.94

-

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

As of

Million yen

Million yen

%

December 31, 2021

1,002,425

403,686

40.3

March 31, 2021

953,659

394,365

41.4

(Reference) Shareholder's equity: As of December 31, 2021:

¥ 403,681 million

As of March 31, 2021:

¥ 394,359 million

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2021

-

35.00

-

35.00

70.00

Fiscal year ending March 31, 2022

-

35.00

-

Fiscal year ending March 31, 2022

35.00

70.00

(Forecast)

(Note) Revision to the forecast for dividends announced most recently:

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

								Net income		Net income
	Net sales		Operating income	Ordinary income	attributable to
		per share
								owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen		%	Yen
Full year	850,000		5.0	78,000	7.0	75,000	4.4	51,000		5.7	185.69
(Note) Revision to the financial results forecast announced most recently:	No

* Notes:
(1) Changes in significant subsidiaries during the nine months ended December 31, 2021	No
(changes in specified subsidiaries resulting in changes in scope of consolidation):
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common stocks)
4. 1. Total number of issued shares at the end of the period (including treasury stocks):

December 31, 2021:	300,794,397	Shares
March 31, 2021:	300,794,397	Shares
2) Total number of treasury shares at the end of the period:
December 31, 2021:	26,147,398	shares
March 31, 2021:	24,231,920	shares

3) Average number of shares during the period:
Nine months ended December 31, 2021:	274,803,962	shares
Nine months ended December 31, 2020:	288,179,571	shares

(Note) The number of treasury stocks above includes shares held as the trust assets for the Board Benefit Trust (BBT) and the Employee Stock Ownership Plan (ESOP).

Shares of the Company's own stock held in BBT and ESOP trust accounts are included in treasury stock subtracted from the calculation of the average number of shares during the period.

This report is not subject to audit procedures by certified public accountants or audit firms.

Explanation regarding appropriate use of forecasts, and other specific comments

The forecasts contained herein are based on information available as of the date of this announcement, and the actual results may differ materially from forecasts due to various factors. For details of assumptions for financial forecasts and other related matters, please refer to "1. Qualitative Information on Quarterly Financial Results (3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking information" on page 3 of the Attachment.

Supplementary materials for this report and results briefing materials can be found on the Company's website.

Table of contents of appendix
1.Qualitative Information on Quarterly Financial Results	2
(1)	Explanation of Results of Operation	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking information	3
2.Quarterly Consolidated Financial Statements and Principal Notes	4
(1)	Quarterly Consolidated Balance Sheets	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
	(Quarterly Consolidated Statements of Income)	6
	(Quarterly Consolidated Statements of Comprehensive Income)	8
(3)	Notes to Quarterly Consolidated Financial Statements	9
	(Notes to Going Concern Assumption)	9
	(Notes to Significant Changes in the Amount of Shareholders' Equity)	9
	(Changes in Accounting Policies)	9
	(Segment Information)	10
3.Non-consolidated Orders Received	11

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1.Qualitative Information on Quarterly Financial Results

(1) Explanation of Results of Operation

For the nine months ended on December 31, 2021, Net sales were 626.1 billion yen, up by 13.1% compared with the same period of the previous fiscal year because real estate sales increased due to an increase in a transaction volume of real estate for the purpose of receiving construction orders by the Company and an increase in a transaction volume of real estate by subsidiaries, despite the sales of construction contracts decreased by the Company.

Operating income was 61.5 billion yen, up by 31.8% compared with the same period of the previous fiscal year, mainly due to an increase in the gross profit of real estate sales.

Ordinary income was 61.0 billion yen, up by 33.3% compared with the same period of the previous fiscal year, and profit attributable to owners of parents was 41.8 billion yen, up by 34.5% compared with the same period of the previous fiscal year.

Operating results by reportable segment are as follow:

							Billions	of yen
	Construction-related	Real estate-related	Service-related	Overseas-related
	business		business		business		business
Net Sales	453.2	(+20.2)	65.4	(+30.0)	145.6	(+19.1)	0.0	(-0.1)
Segment income	49.9	(+3.2)	9.7	(+4.3)	6.4	(+5.4)	-1.3	(-0.4)

Figures in parentheses show the amount of increase or decrease from the same period of the previous fiscal year

(Construction-related business)

For construction works, projects owners have had high regard for the Company's ability in gathering land information as well as product planning, its attitude regarding construction quality and maintaining construction schedules, efficient production system, and such. The gross profit margin of completed construction contracts rose due to cost reduction efforts, etc.

In terms of orders for new construction of for-sale condominiums, the Company won orders for 47 projects in total throughout Japan consisting of 35 in the Tokyo metropolitan area including 6 large projects of at least 200 units and 12 in the Kinki and Tokai areas including 4 large projects of at least 200 units. In addition, aside from construction of for- sale condominiums, the Company received orders for 7 projects for rental housing, etc. As for construction completion, the Company completed construction of 56 projects including 4 projects for rental housing, etc.

The segment posted sales of 453.2 billion yen, up by 4.7% compared with the same period of the previous fiscal year because real estate sales increased due to the increase in the transaction volume of lands for the purpose of receiving construction orders by the Company, despite the sales of construction contracts decreased. Operating income was 49.9 billion yen, up by 6.9% compared with the same period of the previous fiscal year because of the increase in the gross profit of real estate sales.

(Real estate-related Business)

The segment posted sales of 65.4 billion yen, up by 84.7% compared with the same period of the previous fiscal year, and operating income of 9.7 billion yen, up by 80.1% compared with the same period of the previous fiscal year, as sales of new for-sale condominiums by consolidated companies progressed smoothly.

(Service-related Business)

With the spread of COVID-19 and in reaction to the voluntarily restraint of business activities conducted in the previous fiscal year, there was an increase in the following: (1) the volume of repair work in large-scale repair work and interior remodeling; (2) the number of units to be delivered in consigned sales of newly built condominiums; (3) the number of brokered units in real estate brokerage operation; and (4) the volume of construction work in common areas and exclusive areas in for-sale condominium management operations.

The segment posted sales of 145.6 billion yen, up by 15.1% compared with the same period of the previous

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fiscal year, and operating income of 6.4 billion yen, up by 532.8% compared with the same period of the previous fiscal year.

(Overseas-related business)

Real estate sales decreased in Oahu, Hawaii. New for-sale detached housing business and developing a commercial facility were in progress.

The segment posted sales of 0.0 billion yen (in contrast to sales of 0.1 billion yen in the same period of the previous fiscal year) and operating loss of 1.3 billion yen (in contrast to operating loss of 0.9 billion yen in the same period of the previous fiscal year).

(2) Explanation of Financial Position

Total assets as of December 31, 2021 increased by 48.8 billion yen from the end of the previous fiscal year to 1,002.4 billion yen. This is mainly due to increases in real estate for sale and costs and advances for real estate operations, by investing in lands for the purpose of receiving construction orders and new for-sale condominiums business.

Total liabilities were 598.7 billion yen, an increase of 39.4 billion yen from the end of the previous fiscal year. This is mainly due to borrowing debt.

Net assets were 403.7 billion yen, an increase of 9.3 billion yen from the end of the previous fiscal year. This is mainly due to an increase in retained earnings due to the recording of net income attributable to owners of parents despite decreases by the impact of the application of the "Accounting Standard for Revenue Recognition," payment of cash dividends and purchase of treasury stocks.

1. Explanation of Forecast of Consolidated Financial Results and Other Forward- Looking Information There is no change in the forecast announced on May 13th, 2021.

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