Heiwa Real Estate : November 17, 2022Fact Book for First Half of Fiscal Year Ending March 31, 2023(1MB)

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First Half of Fiscal Year Ending March 31, 2023

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Consolidated Balance Sheets・・・ 01 Consolidated Statements of Profit and Loss ・・・ 03

Consolidated Statements of Cash Flow	・・・ 04
Segment Information	・・・ 06
Consolidated Financial Highlights	・・・ 07
Status of the Company's Principal Building	・・・ 08
Status of Shares	・・・ 11

Disclaimer

The information stated in this reference material was compiled based on data considered reasonable as of the date of compilation of this reference material, and is subject to various uncertain factors. Accordingly, we do not ensure or promise the accuracy or completeness of the information, and may revise the information without notice. We also bear no liability for any deficiencies or errors of the data or expressions used in this reference material.

Consolidated Balance Sheets

						(Millions of yen)
	2018/3	2019/3	2020/3	2021/3	2022/3	2022/3	2023/3
	2Ｑ	2Ｑ
Assets
Current assets
Cash and deposits	12,884	9,810	15,766	29,685	23,211	21,974	21,213
Accounts receivable-trade	956	1,065	1,121	1,633	1,809	1,470	1,832
Marketable securities	409	3,128	13,002	16	5,014	7,012	6,005
Inventories	14,536	38,417	25,447	31,098	19,875	11,963	10,661
Operating investment	426	500	485	1,684	1,624	1,655	1,035
Other	233	3,347	3,192	3,850	2,038	5,410	800
Allowance for doubtful accounts	(1)	(2)	(2)	(26)	(25)	(26)	(25)
Total current assets	29,446	56,266	59,013	67,942	53,548	49,460	41,523
Fixed assets
Tangible fixed assets
Buildings and structures, net	75,714	75,530	75,182	74,133	82,947	85,492	84,810
Machinery, equipment and vehicles, net	402	330	366	327	492	462	449
Tools, furniture and fixtures, net	245	222	235	389	560	461	556
Land	131,987	137,634	144,010	154,043	163,624	159,598	170,290
Construction in progress	142	405	2,552	9,843	1,754	1,916	2,105
Total tangible fixed assets	208,492	214,124	222,347	238,737	249,379	247,931	258,213
Intangible fixed assets
Leasehold right	23,254	22,556	22,518	26,618	28,560	26,618	29,866
Other	123	124	107	97	251	267	216
Total Intangible fixed assets	23,378	22,681	22,625	26,716	28,811	26,886	30,083
Investments and other assets
Investment securities	34,549	37,551	30,751	43,265	39,066	46,840	36,495
Long-term loans receivable from employees	4	3	2	0	-	0	-
Deferred tax assets	186	184	189	155	156	149	219
Other	3,864	4,458	4,374	4,310	5,079	4,792	5,765
Allowance for doubtful accounts	(7)	(5)	(0)	(0)	-	(0)	-
Total investments and other assets	38,596	42,192	35,317	47,732	44,301	51,782	42,480
Total fixed assets	270,468	278,998	280,291	313,185	322,492	326,600	330,776
Deferred assets
Bond - issuing expenses	328	306	240	224	169	196	140
Total deferred assets	328	306	240	224	169	196	140
Total assets	300,243	335,572	339,545	381,353	376,210	376,256	372,440

Copyright©2022 HEIWA REAL ESTATE CO.,LTD All Rights Reserved.

01

Consolidated Balance Sheets

Liabilities

Current liabilities Accounts payable-trade Current portion of bonds Short-term loans payable

Current portion of long-term loans Accrued corporation and other taxes Accrued consumption taxes Accrued bonuses for directors Accrued bonuses

Other

Total current liabilities Long-term liabilities

Bonds

Long-term loans payable

Long-term deposits received and landlord deposits

Deferred tax liabilities

Deferred tax liabilities cocerning revaluation

Long-term accounts payable

Provision

Net defined benefit liability

Asset retirement obligations

Other

Total long-term liabilities

Total liabilities

Net assets

Shareholders' equity Common stock Additional paid-in capital Retained earnings Treasury stock, at cost Total shareholders' equity

Accumulated other comprehensive income Unrealized gain on securities

Land revaluation surplus

					(Millions of yen)
2018/3	2019/3	2020/3	2021/3	2022/3	2022/3	2023/3
2Ｑ	2Ｑ
1,698	1,409	2,236	1,818	3,367	3,625	1,626
1,415	4,824	2,092	1,891	4,327	2,391	4,738
2,250	11,250	6,250	9,250	3,800	3,800	800
17,881	14,093	5,736	26,961	13,077	15,932	14,520
759	582	2,509	337	3,300	2,242	2,066
453	74	1,397	77	96	85	570
58	67	68	86	118	50	68
198	214	211	213	250	220	207
1,938	1,773	1,749	1,755	2,372	2,023	2,601
26,653	34,290	22,251	42,391	30,710	30,372	27,198
23,523	25,199	23,107	28,216	23,889	26,520	21,782
110,716	129,305	145,791	145,408	157,143	150,505	161,356
20,637	21,253	22,188	22,829	22,514	22,820	22,772
5,181	7,865	6,264	11,378	10,170	12,045	9,459
7,663	7,663	7,663	7,663	7,613	7,663	7,613
-	4	4,004	4,000	4,000	4,000	4,000
-	-	24	47	101	77	119
269	258	292	115	119	87	238
688	653	655	662	669	665	672
7	6	1	0	-	-	-
168,688	192,206	209,992	220,322	226,221	224,386	228,015
195,342	226,496	232,243	262,713	256,931	254,758	255,214
21,492	21,492	21,492	21,492	21,492	21,492	21,492
19,720	19,720	19,720	19,720	19,720	19,720	19,720
34,063	38,665	39,996	44,740	50,258	47,829	52,521
(426)	(3,030)	(2,487)	(4,496)	(7,306)	(6,214)	(9,994)
74,850	76,848	78,722	81,457	84,165	82,827	83,740
13,055	15,231	11,584	20,187	18,068	21,675	16,440
16,995	16,995	16,995	16,995	17,045	16,995	17,045

Total accumulated other comprehensive income	30,050	32,227	28,579	37,182	35,113	38,670	33,485
Total net assets
104,900	109,075	107,302	118,639	119,278	121,498	117,226
Total liabilities and net assets
300,243	335,572	339,545	381,353	376,210	376,256	372,440

• ASBJ Statement No. 28 Partial Amendments to Accounting Standard for Tax Effect Accounting is applied from the beginning of 2019/3. With respect to the values at 2018/3 the values after the said accounting standard was retrospectively applied are used in comparison.

Copyright©2022 HEIWA REAL ESTATE CO.,LTD All Rights Reserved.

02

Consolidated Statements of Profit and Loss

						(Millions of yen)
	2018/3	2019/3	2020/3	2021/3	2022/3	2022/3	2023/3
	2Ｑ	2Ｑ
Operating revenue	32,698	39,480	46,639	35,048	57,818	41,281	24,954
Cost of sales	19,394	25,927	31,548	19,687	40,126	31,584	17,278
Gross profit	13,303	13,552	15,091	15,361	17,691	9,696	7,675
Selling, general and administrative expenses	3,870	4,217	4,187	4,132	5,076	2,397	2,608
Operating income	9,432	9,335	10,903	11,228	12,615	7,299	5,067
Non-operating income
Interest income	3	7	14	10	5	0	2
Dividends earned	379	486	471	445	534	324	332
Miscellaneous non-operating income	42	29	23	65	45	31	20
Total non-operating income	424	524	509	522	585	355	355
Non-operating expenses
Interest expenses	1,291	1,253	1,256	1,331	1,414	712	722
Amortization of bond issuance cost	67	71	64	54	56	27	28
Miscellaneous non-operating expenses	103	104	86	120	158	53	82
Total non-operating expenses	1,462	1,429	1,407	1,506	1,628	793	833
Ordinary income	8,395	8,430	10,006	10,244	11,572	6,860	4,589
Extraordinary income
Gain on sales of fixed assets	-	1,315	256	-	344	344	-
Gain on sales of investment securities	94	-	-	-	761	-	1,782
Subsidy income	-	55	-	-	-	-	44
Total extraordinary income	94	1,371	256	-	1,106	344	1,826
Extraordinary loss
Loss on sales of fixed assets	-	-	-	1	-	-	-
Loss on disposal of fixed assets	12	36	18	18	49	12	46
Loss on reduction of fixed assets	-	55	-	-	-	-	44
Loss on valuation of investment securities	-	-	85	-	-	54	-
Loss resulting from illicit transactions *2	-	-	177	-	-	-	-
Loss on revaluation of operating investments	426	-	-	-	82	82	-
Litigation settlement	249	9	8	8	2	-	-
Total extraordinary loss	688	101	289	27	133	149	90
Income before income taxes	7,802	9,700	9,972	10,216	12,544	7,055	6,325
Corporation,inhabitants and enterprise taxes	1,969	1,266	3,146	1,745	4,113	2,275	2,072
Deferred income taxes	545	1,725	(219)	1,351	(274)	15	12
Total income taxes	2,514	3,526	2,926	3,097	3,839	2,290	2,084
Net income attributable to owners of parent	5,288	6,174	7,046	7,118	8,705	4,765	4,240

*1 Based on the findings of an investigative report (disclosed in Japanese on December 12, 2019) submitted by an internal investigation committee set up by the Company, extraordinary losses were recorded to reflect the amount of the impact of illicit transactions conducted by employees of the

*2 The amounts for the year ended March 31, 2022, and thereafter have been adjusted to reflect the Company's adoption, effective from April 1, 2021, of the Accounting Standard for Revenue Recognition (Statement No. 29) issued by the Accounting Standards Board of Japan on March 31, 2020.

Copyright©2022 HEIWA REAL ESTATE CO.,LTD All Rights Reserved.

03

Consolidated Statements of Cash Flow

						(Millions of yen)
	2018/3	2019/3	2020/3	2021/3	2022/3	2022/3	2023/3
	2Ｑ	2Ｑ
Cash flows from operating activities
Income before income taxes	7,802	9,700	9,972	10,216	12,544	7,055	6,325
Depreciation	4,661	4,766	4,814	5,077	5,418	2,583	2,749
Loss on disposal of fixed assets	12	36	18	18	49	12	46
Loss (gain) on valuation of investment securities	-	-	85	-	-	54	-
Loss resulting from illicit transactions	-	-	177	-	-	-	-
Impairment loss	249	9	8	8	2	-	-
Increase (decrease) in allowance for doubtful accounts	(5)	(1)	(4)	24	(1)	(0)	0
Increase (decrease) in accrued bonuses	6	15	(3)	2	36	6	(42)
Increase (decrease) in net defined benefit liability	(84)	(10)	33	(176)	4	(28)	118
Interest income and dividends earned	(382)	(494)	(485)	(456)	(540)	(324)	(334)
Interest expense	1,291	1,253	1,256	1,331	1,414	712	722
Amortization of bond-issuing expenses	67	71	64	54	56	27	28
Loss (gain) on sales of investment securities	(94)	-	-	-	(761)	-	(1,782)
Loss (gain) on sale of fixed assets	-	(1,315)	(256)	1	(344)	(344)	-
Decrease (increase) in notes and accounts receivable-trade	274	(108)	(56)	(512)	(175)	163	(22)
Decrease (increase) in inventories	2,172	(23,880)	12,881	(410)	18,578	19,134	9,213
Decrease (increase) in operating investment	335	(73)	14	(1,199)	60	29	588
Decrease (increase) in prepaid expenses	5	(17)	0	6	(25)	(112)	(92)
Increase (decrease) in accounts receivable-other	565	(347)	333	(758)	(895)	(687)	1,353
Increase (decrease) in notes and accounts payable-trade	(123)	42	17	(188)	274	(124)	(722)
Increase (decrease) in advances received	23	15	174	49	(66)	259	330
Increase (decrease) in accrued consumption taxes	410	(379)	1,323	(1,320)	19	8	473
Increase (decrease) in deposits received	(77)	73	(124)	(14)	633	93	18
Increase (decrease) in deposits received and deposits of landlord	613	453	803	609	(281)	(43)	234
Other	(6)	143	(291)	793	144	(775)	8
Subtotal	17,719	(10,049)	30,756	13,157	36,144	27,700	19,213
Interest and dividends income received	380	490	479	462	540	324	334
Interest expenses paid	(1,276)	(1,244)	(1,261)	(1,320)	(1,407)	(708)	(716)
Income taxes paid	(3,340)	(1,976)	(1,293)	(4,006)	(1,088)	(280)	(3,344)
Net cash provided by (used in) operating activities	13,482	(12,780)	28,680	8,292	34,189	27,035	15,487

Copyright©2022 HEIWA REAL ESTATE CO.,LTD All Rights Reserved.

04