Kintetsu : Financial Results FY2022

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

		Summary of Consolidated Financial Results
		for the Year Ended March 31, 2023
		(Based on Japanese GAAP)
					June 2, 2023
Company name:	Kintetsu Group Holdings Co.,Ltd.
Stock exchange listing:	Tokyo
Stock code:	9041	URL https://www.kintetsu-g-hd.co.jp/
Representative:	President		Toshihide Ogura
Inquiries:	General Manager of Accounting and Finance	Naoyuki Isokawa	TEL [phone]
	Division
Scheduled date of ordinary general meeting of shareholders:	June 27, 2023
Scheduled date to file Securities Report:	June 28, 2023
Scheduled date to commence dividend payments:	June 28, 2023
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:	Yes	(for analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated operating results												Percentages indicate year-on-year changes
	Operating revenue	Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen		%
Year ended March 31, 2023	1,561,002		125.7	67,144		-		74,612	143.4		88,779		107.6
Year ended March 31, 2022	691,512			-	3,864		-		30,658	-		42,755		-
	Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total		Operating
			share			owners of				assets			profit/Operating
								parent/equity						revenue
		Yen			Yen				%					%				%
Year ended March 31, 2023		466.81			-				21.6					3.5				4.3
Year ended March 31, 2022		224.81			-				12.2					1.6				0.6
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen					%						Yen
As of March 31, 2023		2,424,755				500,262					18.2				2,323.34
As of March 31, 2022		1,895,770				421,760					20.0				1,990.85
(3) Consolidated cash flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities			at end of period
	Millions of yen	Millions of yen	Millions of yen			Millions of yen
Year ended March 31, 2023		133,992				(41,855)					44,817					208,188
Year ended March 31, 2022		57,548				44,264		(102,918)					75,765
2. Cash dividends
					Annual dividends per share						Total cash	Dividend payout	Ratio of dividends
														to net assets
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
	Yen				Yen	Yen			Yen	Yen	Millions of yen		%		%
Year ended March 31, 2022	-			0.00	-		25.00	25.00		4,762		11.1		1.4
Year ended March 31, 2023	-			0.00	-		50.00	50.00		9,524		10.7		2.3
Year ending March 31, 2024	-			0.00	-			50.00	50.00				21.6
(Forecast)

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3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Percentages indicate year-on-year changes

	Operating revenue	Operating profit	Ordinary profit		Profit attributable to	Earnings per share
		owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
881,000	41.4	33,000	141.2	28,000	10.7		15,000	(76.7)	78.87
September 30, 2023
Full year	1,820,000	16.6	84,000	25.1	74,000	(0.8)		44,000	(50.4)	231.36
4. Notes
(1) Changes in significant subsidiaries during the year ended March 31, 2023			Yes
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of March 31, 2023	190,662,061	shares	As of March 31, 2022	190,662,061	shares
Number of treasury shares at the end of the period
	As of March 31, 2023	482,673	shares	As of March 31, 2022	480,661	shares
Average number of shares during the period
	Year ended March 31, 2023	190,182,524	shares	Year ended March 31, 2022	190,182,915	shares

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Consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	78,902	217,087
Notes and accounts receivable - trade, and contract assets	59,730	224,337
Lease receivables and investments in leases	911	990
Securities	-	5,008
Merchandise and finished goods	9,575	9,638
Work in process	4,032	4,750
Raw materials and supplies	4,934	5,176
Land and buildings for sale	132,965	155,664
Other	41,054	81,649
Allowance for doubtful accounts	(537)	(2,254)
Total current assets	331,569	702,048
Non-current assets
Property, plant and equipment
Buildings and structures, net	545,943	557,549
Machinery, equipment and vehicles, net	32,619	37,768
Land	671,685	679,139
Leased assets, net	27,353	26,080
Construction in progress	2,262	5,379
Other, net	9,229	58,486
Total property, plant and equipment	1,289,093	1,364,404
Intangible assets
Goodwill	13	62,517
Leased assets	21	9
Other	13,922	107,389
Total intangible assets	13,958	169,917
Investments and other assets
Investment securities	141,291	58,827
Long-term loans receivable	3,179	3,780
Retirement benefit asset	65,597	66,568
Deferred tax assets	11,533	12,795
Other	38,368	45,966
Allowance for doubtful accounts	(1,075)	(1,750)
Total investments and other assets	258,895	186,186
Total non-current assets	1,561,947	1,720,508
Deferred assets
Bond issuance costs	2,252	2,199
Total deferred assets	2,252	2,199
Total assets	1,895,770	2,424,755

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		(Millions of yen)
	As of March 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	49,084	133,461
Short-term borrowings	204,018	273,229
Commercial papers	40,000	45,000
Current portion of bonds payable	12,753	43,137
Lease liabilities	5,371	16,240
Accounts payable - other	34,176	47,256
Income taxes payable	4,262	10,220
Provision for bonuses	7,912	17,281
Provision for loss on exchanging gift certificates	5,495	5,755
Provision for contract losses	-	3,470
Other	140,971	184,710
Total current liabilities	504,045	779,761
Non-current liabilities
Bonds payable	300,191	342,054
Long-term borrowings	503,125	575,903
Lease liabilities	29,041	60,404
Deferred tax liabilities	4,187	31,081
Deferred tax liabilities for land revaluation	90,678	90,467
Retirement benefit liability	8,569	12,056
Other	34,171	32,765
Total non-current liabilities	969,964	1,144,732
Total liabilities	1,474,009	1,924,493
Net assets
Shareholders' equity
Share capital	126,476	126,476
Capital surplus	61,927	54,898
Retained earnings	80,555	161,795
Treasury shares	(1,150)	(1,164)
Total shareholders' equity	267,809	342,006
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	5,572	4,920
Deferred gains or losses on hedges	(0)	(0)
Revaluation reserve for land	87,108	89,899
Foreign currency translation adjustment	1,837	(8,346)
Remeasurements of defined benefit plans	16,293	13,371
Total accumulated other comprehensive income	110,812	99,845
Non-controlling interests	43,139	58,410
Total net assets	421,760	500,262
Total liabilities and net assets	1,895,770	2,424,755

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2022	March 31, 2023
Operating revenue	691,512	1,561,002
Operating expenses
Operating expenses and cost of sales of transportation	572,943	1,305,987
Selling, general and administrative expenses	114,704	187,869
Total operating expenses	687,647	1,493,857
Operating profit	3,864	67,144
Non-operating income
Interest income	145	1,273
Dividend income	1,029	689
Gain on adjustment of non-exchanging gift certificates	1,030	1,049
Share of profit of entities accounted for using equity method	21,851	8,710
Subsidies for employment adjustment	8,423	1,225
Foreign exchange gains	403	4,121
Other	4,062	2,897
Total non-operating income	36,945	19,966
Non-operating expenses
Interest expenses	7,386	8,837
Provision of allowance for loss on exchanging gift certificates	1,010	1,047
Other	1,755	2,613
Total non-operating expenses	10,152	12,498
Ordinary profit	30,658	74,612
Extraordinary income
Contribution received for construction	5,177	4,130
Gain on sale of non-current assets	20,668	637
Gain on sale of securities	2,893	569
Gain on step acquisitions	-	47,536
Gain on bargain purchase	10,863	-
Other	1,348	498
Total extraordinary income	40,952	53,374
Extraordinary losses
Tax purpose reduction entry of contribution for construction	5,136	3,518
Loss on sale of non-current assets	50	448
Loss on retirement of non-current assets	885	1,259
Impairment losses	11,121	13,340
Other	2,279	2,535
Total extraordinary losses	19,472	21,102
Profit before income taxes	52,138	106,884
Income taxes - current	6,528	13,057
Income taxes - deferred	2,605	2,307
Total income taxes	9,134	15,364
Profit	43,003	91,519
Profit attributable to non-controlling interests	247	2,740
Profit attributable to owners of parent	42,755	88,779

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