JGC : Summary-Consolidated First Quarter Financial Statements

[Translation]

The following statements are an English-language translation of the original Japanese-language document for your reference purpose only. In case that there is any discrepancy between the original Japanese version and this English version, the Japanese version shall prevail. (All financial information has been prepared in accordance with accounting principles generally accepted in Japan.)

Summary-Consolidated First Quarter Financial Statements	Aug 10, 2022
(For the fiscal year ended March 31, 2023)
Name of listed company: JGC HOLDINGS CORPORATION	Stock exchange: Tokyo
Code number: 1963
Representative	Tel: [phone]
Title: Representative Director, Chairman of the Board & Chief Executive Officer (CEO)	URL: https://www.jgc.com
Name: Masayuki Sato
Contact
Title: General Manager, Group Finance & Accounting Department
Name: Shinichi Taguchi
	Note: All amounts are rounded down to the nearest million yen .

1. Consolidated Financial Results for 1Q of Fiscal year ended March 31, 2023 (April 1, 2022 - June 30, 2022)

(1) Consolidated financial results

Note: Percentage indicates changes from the previous term.

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

(Millions of

(%)

(Millions of

(%)

(Millions of

(%)

(Millions of

(%)

yen)

yen)

yen)

yen)

1Q of Fiscal year ended March

118,190

10.4

10,242

144.4

18,520

208.9

12,519

－

31, 2023

1Q of Fiscal year ended March

107,051

10.5

4,191

(0.7)

5,996

37.0

(55,173)

－

31, 2022

Note: Comprehensive income (millions of yen):

1Q of Fiscal year ended March 31, 2023:

14,766

(ー%)

1Q of Fiscal year ended March 31, 2022:

(55,014) (ー%)

Earnings

Earnings

per share

per share

(diluted)

(Yen)

(Yen)

1Q of Fiscal year ended March

49.57

－

31, 2023

1Q of Fiscal year ended March

(218.54)

－

31, 2022

(2) Consolidated financial position

Total assets

Total net assets

Equity ratio

(Millions of yen)

(Millions of yen)

(%)

As of June 30, 2022

711,697

398,627

55.9

As of March 31, 2022

694,274

387,662

55.8

Reference: Equity (millions of yen):

As of June 30, 2022: 398,100

As of March 31, 2022:

387,145

2. Dividends

Annual dividends per share (Yen)

1Q

2Q

3Q

Term-end

Annual

term-end

term-end

term-end

Fiscal year ended March 31,

－

－

－

15.00

15.00

2022

Fiscal year ended March 31,

－

2023

Fiscal year ended March 31,

－

－

29.00

29.00

2023 (Forecasts)

Note: Revision to the latest forecast announcement:

Yes

3. Earnings forecasts for Fiscal year ended March 31, 2023 (April 1, 2022 - March 31, 2023)

Note: Percentage indicates changes from the previous term.

	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	(Millions of		(%)	(Millions of	(%)	(Millions of	(%)	(Millions of	(%)
	yen)		yen)	yen)	yen)
Full Year	620,000		44.7	29,000	40.2	36,000	19.9	24,000		－
	Earnings
	per share
	(Yen)
Full Year	95.02

Note: Revision to the latest forecast announcement:

Yes

4. Others

(1) Changes in scope of consolidated important subsidiaries

(Newly added)

None

(Excluded)

None

1. Adoption of simplified accounting methods or special accounting methods for preparing quarterly consolidated financial statements: Yes
2. Changes of accounting principles, procedures and presentation

(a) Changes due to revisions of accounting standards:	Yes
(b) Changes other than the above (a):	None
(c) Changes in accounting estimates:	None
(d) Restatement:	None

1. Number of shares outstanding

1. Number of shares outstanding at term-end (including treasury shares):

As of June 30, 2022:	259,336,682	As of March 31, 2022:	259,336,682
(b) Number of treasury shares at term-end:
As of June 30, 2022:	6,750,276	As of March 31, 2022:	6,750,140
(c) Average number of shares outstanding during this period:
1Q of Fiscal year ended March 31, 2023:	252,586,453	1Q of Fiscal year ended March 31, 2022:	252,465,653

(ⅰ) This document is unaudited by certificated public accountants or audit firms.

(ⅱ) The forecasts given above are based on information available at the time of compilation and are inherently subject to a variety of risks and uncertainties.

Actual results may vary significantly from forecasts due to factors including, but not limited to, changes in the economic or business environment and exchange rate fluctuations.

(ⅲ) Forecasts based on: 130.00 yen/US$ 1.00

Consolidated Balance Sheet

	As of March 31,	As of June 30,
	2022	2022
	(Millions of yen)	(Millions of yen)
ASSETS
Current assets
Cash and deposits	288,159	335,393
Notes receivable, trade receivables, contract assets and other	141,222	130,058
Costs on construction contracts in progress	23,804	27,561
Merchandise and finished goods	6,659	6,084
Work in process	2,970	4,053
Raw materials and supplies	3,596	3,692
Accounts receivable - other	64,423	33,919
Other	6,069	8,404
Allowance for doubtful accounts	(3,562)	(3,957)
Total current assets	533,343	545,210
Non-current assets
Property, plant and equipment
Buildings and structures	74,181	75,729
Machinery, vehicles, tools, furniture and fixtures	71,133	72,566
Land	18,617	18,644
Leased assets	1,079	978
Construction in progress	803	1,361
Other	4,795	5,121
Accumulated depreciation	(101,075)	(102,586)
Total property, plant and equipment	69,534	71,815
Intangible assets
Software	7,228	7,541
Other	2,447	2,528
Total intangible assets	9,676	10,069
Investments and other assets
Investment securities	55,837	58,455
Long-term loans receivable	8,640	9,495
Retirement benefit asset	1,506	1,517
Deferred tax assets	13,557	13,661
Other	16,002	16,433
Allowance for doubtful accounts	(13,824)	(14,959)
Total investments and other assets	81,720	84,602
Total non-current assets	160,930	166,487
Total assets	694,274	711,697

	As of March 31,	As of June 30,
	2022	2022
	(Millions of yen)	(Millions of yen)
LIABILITIES
Current liabilities
Notes payable, accounts payable for construction contracts and	63,258	62,935
other
Short-term borrowings	2,167	2,312
Current portion of bonds payable	30,000	30,000
Current portion of long-term borrowings	8,660	508
Income taxes payable	5,244	3,770
Contract liabilities	109,756	115,867
Provision for bonuses	6,880	9,321
Provision for bonuses for directors (and other officers)	274	267
Provision for loss on construction contracts	384	367
Provision for warranties for completed construction	1,074	982
Other	26,135	30,463
Total current liabilities	253,836	256,796
Non-current liabilities
Bonds payable	20,000	20,000
Long-term borrowings	11,496	15,130
Retirement benefit liability	15,884	15,903
Provision for retirement benefits for directors (and other	210	210
officers)
Deferred tax liabilities	1,089	1,056
Deferred tax liabilities for land revaluation	1,014	1,014
Other	3,080	2,959
Total non-current liabilities	52,775	56,274
Total liabilities	306,612	313,070
NET ASSETS
Shareholders' equity
Share capital	23,672	23,672
Capital surplus	25,770	25,770
Retained earnings	342,198	350,929
Treasury shares	(6,740)	(6,741)
Total shareholders' equity	384,901	393,631
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	6,311	5,630
Deferred gains or losses on hedges	3,786	5,513
Revaluation reserve for land	(10,891)	(10,891)
Foreign currency translation adjustment	3,462	4,655
Remeasurements of defined benefit plans	(424)	(438)
Total accumulated other comprehensive income	2,244	4,468
Non-controlling interests	517	526
Total net assets	387,662	398,627
Total liabilities and net assets	694,274	711,697

Consolidated Statement of Income

	1Q of Fiscal year	1Q of Fiscal year
	ended March 31,	ended March 31,
	2022	2023
	(Apr. 1, 2021 -	(Apr. 1, 2022 -
	Jun. 30, 2021)	Jun. 30, 2022)
	(Millions of yen)	(Millions of yen)
Net sales	107,051	118,190
Cost of sales	97,599	101,939
Gross profit	9,451	16,250
Selling, general and administrative expenses	5,260	6,007
Operating profit	4,191	10,242
Non-operating income
Interest income	456	592
Dividend income	374	1,397
Foreign exchange gains	199	5,993
Share of profit of entities accounted for using equity method	431	468
Other	413	157
Total non-operating income	1,875	8,609
Non-operating expenses
Interest expenses	40	311
Other	30	21
Total non-operating expenses	70	332
Ordinary profit	5,996	18,520
Extraordinary income
Gain on change in equity	－	1,163
Gain on sale of non-current assets	0	0
Total extraordinary income	0	1,164
Extraordinary losses
Loss on retirement of non-current assets	7	13
Provision for loss on Ichthys LNG Project	59,400	－
Other	208	－
Total extraordinary losses	59,616	13
Profit (Loss) before income taxes	(53,619)	19,671
Income taxes	1,559	7,154
Profit (Loss)	(55,178)	12,516
Loss attributable to non-controlling interests	(4)	(3)
Profit (Loss) attributable to owners of parent	(55,173)	12,519