Keihanshin Building : Consolidated Financial Results for the Three Months Ended June 30, 2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Three Months Ended June 30, 2021

[Japanese GAAP]

July 27, 2021

Company name: Keihanshin Building Co., Ltd.

Stock exchange listing: Tokyo

Code number: 8818

URL: http://www.keihanshin.co.jp/english/

Representative: Koichi Minami, President

Contact: Toshiki Tabuchi, Operating Officer, General Manager (Accounting Dept)

Phone: [phone]

Scheduled date of filing quarterly securities report: July 30, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 01, 2021 to June 30, 2021)

(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
		Net sales			Operating profit		Ordinary profit		Profit attributable to
						owners of parent
Three months ended	Million yen		%	Million yen			%	Million yen			%	Million yen		%
June 30, 2021		4,317		14.2		860		(43.0)	865		(44.2)	600		(63.3)
June 30, 2020		3,781		(1.3)	1,510		2.1	1,551			1.7	1,635		63.9
(Note) Comprehensive income:	Three months ended June 30, 2021:	¥		176 million	[(94.9) %]
		Three months ended June 30, 2020:	¥	3,430 million	[ 188.8%]
		Basic earnings		Diluted earnings per
		per share			share
Three months ended				Yen				Yen
June 30, 2021				11.72				11.68
June 30, 2020				31.48				31.36	June 30, 2021:	¥	1,515 million	[(6.9) %]
(Reference) Ordinary income after tax before depreciation Three months ended
						Three months ended June 30, 2020:	¥	1,627 million	[ 1.4%]
The Company has positioned ordinary income after tax before depreciation as an important management indecator.
Ordinary income after tax before depreciation = (ordinary profit×(1-effective tax rate) + depreciation)
(2) Consolidated Financial Position
		Total assets		Net assets		Capital adequacy ratio
As of			Million yen		Million yen				%
June 30, 2021		149,315				68,481			45.8
March 31, 2021		154,043				70,539			45.7
(Reference) Equity: As of	June 30, 2021:	¥	68,361 million
As of	March 31, 2021:	¥	70,419 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	-	13.50	-		17.50	31.00
Fiscal year ending March 31, 2022	-
Fiscal year ending March 31, 2022		15.50	-		15.50	31.00
(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 sales	Operating profit	Ordinary profit	Profit attributable to	Basic earnings
	owners of parent	per share
	Million	%	Million	%	Million	%	Million yen	%	Yen
	yen	yen	yen
Full year	17,600	14.8	5,100	(3.7)	4,900	(3.6)	3,300	(60.0)	64.99
(Note) Revision to the financial results forecast announced most recently: No
(Reference) Ordinary income after tax before depreciation	¥ 7,000 million	[ 20.8 %]

* Notes:

1. Changes in significant subsidiaries during the three months ended June 30, 2021 (changes in specified subsidiaries resulting in changes in scope of consolidation): No
2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 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
5. Total number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares):

	June 30, 2021:	52,184,498	shares
	March 31, 2021:	52,184,498	shares
2)	Total number of treasury shares at the end of the period:
	June 30, 2021:	1,410,191	shares
	March 31, 2021:	481,029	shares
3)	Average number of shares during the period:
	Three months ended June 30, 2021:	51,220,344	shares
	Three months ended June 30, 2020:	51,968,634	shares

*This summary is not subject to review procedures by a certified public accountant or audit firm.

*Appropriate use of business forecasts ; other special items

Information described in this document, such as projections, is prepared based on available information at the time of the release this

document and certain assumptions that the Company judged as rational. Actual results may be significantly different due to various

factors.

Keihanshin Building Co., Ltd.

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

			(Thousand yen)
		As of March 31,2021	As of June 30,2021
Assets
	Current assets
	Cash and deposits	21,550,649	5,899,203
	Notes and accounts receivable - trade	331,797	361,996
	Other	720,947	2,523,477
	Total current assets	22,603,394	8,784,677
	Non-current assets
	Property, plant and equipment
	Buildings and structures	70,499,470	99,489,115
	Accumulated depreciation	(39,354,505)	(40,201,852)
	Buildings and structures, net	31,144,965	59,287,262
	Land	52,424,697	52,941,954
	Buildings in trust	3,343,060	3,343,060
	Accumulated depreciation	(1,418,331)	(1,460,320)
	Buildings in trust, net	1,924,729	1,882,739
	Land in trust	11,038,280	11,038,280
	Construction in progress	19,990,264	918,340
	Other	932,810	1,025,354
	Accumulated depreciation	(689,991)	(696,040)
	Other, net	242,818	329,313
	Total property, plant and equipment	116,765,755	126,397,891
	Intangible assets	125,912	121,306
	Investments and other assets
	Investment securities	11,910,639	11,312,042
	Other	2,637,680	2,699,193
	Total investments and other assets	14,548,320	14,011,236
	Total non-current assets	131,439,988	140,530,434
	Total assets	154,043,383	149,315,112

			Keihanshin Building Co., Ltd.
				(Thousand yen)
			As of March 31,2021	As of June 30,2021
Liabilities
	Current liabilities
		Notes and accounts payable - trade	3,533	-
		Short-term borrowings	4,285,200	4,184,350
		Income taxes payable	3,043,744	308,875
		Provisions	38,609	-
		Other	2,207,845	3,081,278
		Total current liabilities	9,578,931	7,574,503
	Non-current liabilities
		Bonds payable	45,000,000	45,000,000
		Long-term borrowings	17,359,950	16,972,375
		Retirement benefit liability	63,770	65,468
		Asset retirement obligations	114,570	114,663
		Other	11,386,470	11,106,359
		Total non-current liabilities	73,924,761	73,258,867
	Total liabilities	83,503,692	80,833,371
Net assets
	Shareholders' equity
		Share capital	9,827,611	9,827,611
		Capital surplus	9,199,840	9,199,840
		Retained earnings	50,938,631	50,634,249
		Treasury shares	(697,656)	(2,027,032)
		Total shareholders' equity	69,268,426	67,634,667
	Accumlated other comprehensive income
		Valuation difference on available-for-sale	5,683,794	5,259,604
		securities
		Revaluation reserve for land	(4,532,546)	(4,532,546)
		Total accumlated other comprehensive income	1,151,248	727,057
	Share acquisition rights	120,015	120,015
	Total net assets	70,539,690	68,481,741
Total liabilities and net assets	154,043,383	149,315,112

Keihanshin Building Co., Ltd.

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the three months)

		(Thousand yen)
	For the three months	For the three months
	ended June 30,2020	ended June 30,2021
Net sales	3,781,977	4,317,833
Cost of sales	1,922,427	3,093,843
Gross profit	1,859,550	1,223,990
Selling, general and administrative expenses	348,840	363,436
Operating profit	1,510,710	860,554
Non-operating income
Interest income	254	90
Dividend income	152,469	134,397
Other	3,181	3,104
Total non-operating income	155,904	137,592
Non-operating expenses
Interest expenses	39,599	42,800
Interest on bonds	73,168	84,065
Other	2,715	5,903
Total non-operating expenses	115,483	132,768
Ordinary profit	1,551,131	865,377
Extraordinary income
Gain on sale of non-current assets	803,932	-
Total extraordinary income	803,932	-
Extraordinary losses
Loss on retirement of non-current assets	67	40
Loss on sale of non-current assets	-	317
Total extraordinary losses	67	358
Profit before income taxes	2,354,996	865,019
Income taxes - current	602,903	305,815
Income taxes - deferred	116,197	(41,224)
Total income taxes	719,100	264,590
Profit	1,635,896	600,428
Profit attributable to owners of parent	1,635,896	600,428