Haseko : Consolidated Financial Results for the nine months ended December 31, 2022

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, 2022

[Japanese GAAP]

	February 9, 2023
Company name: HASEKO Corporation	Stock exchange listing: Tokyo Stock Exchange, Prime 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, 2022 (April 1, 2022 to December 31, 2022)

(1) Consolidated Operating Results

		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, 2022		706,522			12.9		56,586			(7.9)		55,050			(9.7)	36,945		(11.7)
December 31, 2021		626,052			13.1		61,465			31.8			60,976			33.3	41,826		34.5
(Note) Comprehensive income:	Nine months ended December 31, 2022:	¥	52,626 million	[	19.7 %]
		Nine months ended December 31, 2021:	¥	43,976 million	[	35.0 %]
		Net income			Diluted net income
		per share					per share
Nine months ended					Yen									Yen
December 31, 2022					134.44									-
December 31, 2021					152.20									-
(2) Consolidated Financial Position
		Total assets					Net assets		Equity ratio
As of			Million yen						Million yen						%
December 31, 2022		1,100,096							446,928							40.6
March 31, 2022		1,081,907							417,667							38.6
(Reference) Shareholder's equity: As of December 31, 2022:	¥	446,923 million
		As of March 31, 2022:			¥	417,662 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, 2022				-				35.00			-			45.00			80.00
Fiscal year ending March 31, 2023				-				40.00			-
Fiscal year ending March 31, 2023																	40.00			80.00
(Forecast)
(Note) Revision to the forecast for dividends announced most recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(% 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	960,000		5.5	87,000	5.2	85,000	3.8	57,000		4.6	207.41
(Note) Revision to the financial results forecast announced most recently:	No

* Notes:
(1) Changes in significant subsidiaries during the nine months ended December 31, 2022	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, 2022:	300,794,397	shares
March 31, 2022:	300,794,397	shares
2) Total number of treasury shares at the end of the period:
December 31, 2022:	25,980,905	shares
March 31, 2022:	26,148,175	shares

3) Average number of shares during the period:
Nine months ended December 31, 2022:	274,799,156	shares
Nine months ended December 31, 2021:	274,803,962	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
	(Subsequent Event)	11
3.Non-consolidated Orders Received	12

1

1.Qualitative Information on Quarterly Financial Results

(1) Explanation of Results of Operation

For the nine months ended on December 31, 2022, Net sales were 706.5 billion yen (up 12.9% year on year) because an increase in a transaction volume of real estate for the purpose of receiving construction orders by the Company. Operating income was 56.6 billion yen (down 7.9% year on year) due to a decrease in the gross profit of completed construction contracts associated with a decrease in its gross profit margin, and an increase in selling, general and administrative expenses.

Ordinary income was 55.1 billion yen (down 9.7% year on year) and net income attributable to owners of parents was 36.9 billion yen (down 11.7% year on 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	529.7	(+76.5)	62.2	(-3.1)	161.8	(+16.3)	0.0	(+0.0)
Segment income	48.5	(-1.4)	8.8	(-0.8)	8.2	(+1.8)	-2.6	(-1.3)

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. Meanwhile, the gross profit margin of completed construction contracts lowered due to worsened construction profitability upon receiving orders and higher costs of material and labor, among other factors.

In terms of orders for new construction of for-sale condominiums, the Company won orders for 45 projects in total throughout Japan consisting of 37 projects in the Tokyo metropolitan area including 11 large projects of at least 200 units and 8 in the Kinki and Tokai areas including 3 large projects of at least 200 units. In addition, aside from construction of for-sale condominiums, the Company received orders for 11 projects for rental housing, etc. As for construction completion, the Company completed construction of 48 projects including 6 projects for rental housing, etc.

The segment posted sales of 529.7 billion yen, (up 16.9% year on year) because of an increase in a transaction volume of real estate for the purpose of receiving construction orders by the Company. Operating income was 48.5 billion yen (down 2.9% year on year) because of a decrease in the gross profit of completed construction contracts due to a decrease in its gross profit margin, and an increase in selling, general and administrative expenses.

(Real estate-related Business)

The segment posted sales of 62.2 billion yen, (down 4.8% year on year) and operating income of 8.8 billion yen (down 8.5% year on year) because of a decrease of delivery new for-sale condominiums by consolidated companies.

(Service-related Business)

The volume of repair work in large-scale repair work and interior remodeling, the number of sold units in the renovation business and the volume of construction work in common areas and exclusive areas in for-sale condominium management operations increased. Meanwhile, the number of units to be delivered in consigned sales of newly built condominiums decreased.

The segment posted sales of 161.8 billion yen (up 11.2% year on year) and operating income of 8.2 billion yen (up 27.9% year on year.)

(Overseas-related business)

Construction and sales of new for-sale houses and development of a commercial facility are still progressing in Oahu, Hawaii.

The segment posted sales of 0.0 billion yen (the sales of 0.0 billion yen in the same period of the previous fiscal year) and operating loss of 2.6 billion yen (the operating loss of 1.3 billion yen in the same period of the previous fiscal year.)

2

(2) Explanation of Financial Position

Total assets as of December 31, 2022 increased by 18.2 billion yen from the end of the previous fiscal year to 1,100.1 billion yen. This is mainly attributable to an increase in costs and advances for real estate operations in accordance with the investing in new for-sale condominium business.

Total liabilities were 653.2 billion yen, a decrease of 11.1 billion yen from the end of the previous fiscal year. This is mainly attributable to a decrease in income taxes payable.

Net assets were 446.9 billion yen, an increase of 29.3 billion yen from the end of the previous fiscal year. This is mainly attributable to the recording of net income attributable to owners of parents.

1. Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information There is no change in the forecast announced on May 12th, 2022.

3