Keihanshin Building : Consolidated Financial Results for the Three Months Ended June 30, 2020

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, 2020

[Japanese GAAP]

July 28, 2020

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 31, 2020

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, 2020 (April 01, 2020 to June 30, 2020)
(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, 2020		3,781		(1.3)		1,510	2.1		1,551			1.7		1,635	63.9
June 30, 2019		3,832		3.8		1,479	3.1		1,524			3.6		998	(17.2)
(Note) Comprehensive income:	Three months ended June 30, 2020:	¥	3,430million	[	188.8 %]
		Three months ended June 30, 2019:	¥	1,187million	[	(44.0) %]
		Basic earnings			Diluted earnings per
		per share					share
Three months ended					Yen				Yen
June 30, 2020					31.48			31.36
June 30, 2019					18.95			18.89
(2) Consolidated Financial Position
		Total assets				Net assets		Capital adequacy ratio
As of			Million yen			Million yen						%
June 30, 2020		139,248			67,012						48.0
March 31, 2020		136,605			64,377						47.0
(Reference) Equity: As of	June 30, 2020:	¥	66,892 million
As of	March 31, 2020:	¥	64,256 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, 2020	-	11.50	-		15.50	27.00
Fiscal year ending March 31, 2021	-
Fiscal year ending March 31, 2021		13.50	-		13.50	27.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021(April 01, 2020 to March 31, 2021)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to owners of	Basic earnings
			parent	per share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	15,300		(0.1)	5,400	(0.3)	5,100	(2.2)	4,000	2.1	76.95
(Note) Revision to the financial results forecast announced most recently: No

• Notes:

1. Changes in significant subsidiaries during the three months ended June 30, 2020 (changes in specified subsidiaries resulting in changes in scope of consolidation): No

1. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
4. Total number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2020: 52,184,498 shares

March 31, 2020: 52,882,298 shares

1. Total number of treasury shares at the end of the period: June 30, 2020: 202,437 shares
   March 31, 2020: 916,057 shares
2. Average number of shares during the period:

Three months ended June 30, 2020: 51,968,634 shares

Three months ended June 30, 2019: 52,688,698 shares

• This summary is not subject to quarterly 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 of

this document and certain assumptions that the Company judged as rational. Acutual 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 31,2020	As of June 30,2020
Assets
	Current assets
	Cash and deposits	13,205,088	12,209,144
	Notes and accounts receivable - trade	408,750	428,132
	Other	129,071	389,533
	Total current assets	13,742,910	13,026,810
	Non-current assets
	Property, plant and equipment
	Buildings and structures	67,041,896	66,346,841
	Accumulated depreciation	(38,143,867)	(38,007,865)
	Buildings and structures, net	28,898,029	28,338,975
	Land	52,664,231	52,291,930
	Buildings in trust	3,343,060	3,343,060
	Accumulated depreciation	(1,250,372)	(1,292,362)
	Buildings in trust, net	2,092,687	2,050,697
	Land in trust	11,038,280	11,038,280
	Construction in progress	12,614,237	14,376,024
	Other	811,357	808,852
	Accumulated depreciation	(658,187)	(665,646)
	Other, net	153,170	143,206
	Total property, plant and equipment	107,460,636	108,239,114
	Intangible assets	116,323	111,099
	Investments and other assets
	Investment securities	12,629,349	15,227,945
	Other	2,655,894	2,643,981
	Total investments and other assets	15,285,244	17,871,926
	Total non-current assets	122,862,203	126,222,140
	Total assets	136,605,113	139,248,951

				Keihanshin Building Co., Ltd
				(Thousand yen)
			As of March 31,2020	As of June 30,2020
Liabilities
	Current liabilities
		Notes and accounts payable - trade	8,356	-
		Short-term borrowings	4,146,000	4,078,000
		Income taxes payable	1,013,600	615,109
		Provisions	32,972	-
		Other	3,177,760	3,150,423
		Total current liabilities	8,378,689	7,843,533
	Non-current liabilities
		Bonds payable	40,000,000	40,000,000
		Long-term borrowings	14,255,950	13,878,325
		Retirement benefit liability	75,349	66,693
		Asset retirement obligations	114,198	114,291
		Other	9,403,170	10,334,012
		Total non-current liabilities	63,848,668	64,393,322
	Total liabilities	72,227,357	72,236,855
Net assets
	Shareholders' equity
		Share capital	9,827,611	9,827,611
		Capital surplus	9,199,840	9,199,840
		Retained earnings	45,281,222	45,023,316
		Treasury shares	(1,200,452)	(265,292)
		Total shareholders' equity	63,108,221	63,785,475
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	5,844,230	7,639,150
		securities
		Revaluation reserve for land	(4,696,213)	(4,532,546)
		Total accumulated other comprehensive income	1,148,016	3,106,604
	Share acquisition rights	121,518	120,015
	Total net assets	64,377,755	67,012,095
Total liabilities and net assets	136,605,113	139,248,951

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 30,2019	ended June 30,2020
Net sales	3,832,702	3,781,977
Cost of sales	2,009,899	1,922,427
Gross profit	1,822,802	1,859,550
Selling, general and administrative expenses	343,647	348,840
Operating profit	1,479,155	1,510,710
Non-operating income
Interest income	402	254
Dividend income	159,882	152,469
Other	2,393	3,181
Total non-operating income	162,679	155,904
Non-operating expenses
Interest expenses	40,105	39,599
Interest on bonds	74,546	73,168
Other	2,673	2,715
Total non-operating expenses	117,325	115,483
Ordinary profit	1,524,509	1,551,131
Extraordinary income
Gain on sales of non-current assets	-	803,932
Total extraordinary income	-	803,932
Extraordinary losses
Loss on retirement of non-current assets	42	67
Loss on valuation of investment securities	60,996	-
Total extraordinary losses	61,038	67
Profit before income taxes	1,463,470	2,354,996
Income taxes - current	414,429	602,903
Income taxes - deferred	50,770	116,197
Total income taxes	465,200	719,100
Profit	998,270	1,635,896
Profit attributable to owners of parent	998,270	1,635,896

Keihanshin Building Co., Ltd

Quarterly Consolidated Statements of Comprehensive Income (For the three months)

			(Thousand yen)
		For the three months	For the three months
		ended June 30,2019	ended June 30,2020
Profit	998,270	1,635,896
Other comprehensive income
	Valuation difference on available-for-sale securities	189,622	1,794,920
	Total other comprehensive income	189,622	1,794,920
Comprehensive income	1,187,892	3,430,817
Comprehensive income attributable to
	Comprehensive income attributable to owners of	1,187,892	3,430,817
	parent
	Comprehensive income attributable to non-controlling	-	-
	interests