Kintetsu : Financial Results for 1Q of 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 Three Months Ended June 30, 2022
		(Based on Japanese GAAP)
				August 10, 2022
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 to file Quarterly Securities Report:	August 12, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)								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		%
Three months ended June 30, 2022	187,192		49.8		6,317		-		12,879			-		11,232		20.8
Three months ended June 30, 2021	124,961		-		(14,579)		-		(8,874)			-		9,300		-
	Earnings per share		Diluted earnings per share
			Yen						Yen
Three months ended June 30, 2022			59.06						-
Three months ended June 30, 2021			48.90						-
(2) Consolidated financial position
	Total assets				Net assets		Equity ratio
	Millions of yen			Millions of yen					%
As of June 30, 2022	1,944,118		435,210				20.2
As of March 31, 2022	1,895,770		421,760				20.0
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended March 31, 2022		-			0.00				-				25.00			25.00
Year ending March 31, 2023		-
Year ending March 31, 2023 (Forecast)					0.00				-				25.00			25.00

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Percentages indicate year-on-year changes

	Operating revenue	Operating profit		Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen	%	Millions of yen	%	Yen
Full year	1,472,000	112.9	62,000		-	58,000	89.2	76,000	77.8	399.62

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

(3) 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:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

	As of June 30, 2022	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 June 30, 2022	481,929	shares	As of March 31, 2022	480,661	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2022	190,180,670	shares	Three months ended June 30, 2021	190,178,606	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	78,902	123,895
Notes and accounts receivable - trade, and contract assets	59,730	55,702
Merchandise and finished goods	9,575	9,769
Work in process	4,032	5,399
Raw materials and supplies	4,934	4,657
Land and buildings for sale	132,965	133,399
Other	41,966	40,822
Allowance for doubtful accounts	(537)	(503)
Total current assets	331,569	373,142
Non-current assets
Property, plant and equipment
Buildings and structures, net	545,943	539,993
Land	671,685	671,842
Construction in progress	2,262	2,581
Other, net	69,202	67,836
Total property, plant and equipment	1,289,093	1,282,253
Intangible assets
Goodwill	13	11
Other	13,944	13,716
Total intangible assets	13,958	13,728
Investments and other assets
Investment securities	141,291	154,148
Other	118,679	119,766
Allowance for doubtful accounts	(1,075)	(1,067)
Total investments and other assets	258,895	272,846
Total non-current assets	1,561,947	1,568,829
Deferred assets	2,252	2,146
Total assets		1,895,770	1,944,118

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			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	49,084	47,673
Short-term borrowings	204,018	206,361
Commercial papers	40,000	45,000
Current portion of bonds payable	12,753	13,137
Income taxes payable	4,262	1,295
Provision for bonuses	7,912	9,102
Provision for loss on exchanging gift certificates	5,495	5,580
Other	180,518	199,706
Total current liabilities	504,045	527,856
Non-current liabilities
Bonds payable	300,191	299,337
Long-term borrowings	503,125	515,878
Retirement benefit liability	8,569	8,628
Other	158,077	157,207
Total non-current liabilities	969,964	981,051
Total liabilities	1,474,009	1,508,908
Net assets
Shareholders' equity
Share capital	126,476	126,476
Capital surplus	61,927	61,014
Retained earnings	80,555	87,057
Treasury shares	(1,150)	(1,155)
Total shareholders' equity	267,809	273,392
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	5,572	5,520
Deferred gains or losses on hedges	(0)	(0)
Revaluation reserve for land	87,108	87,092
Foreign currency translation adjustment	1,837	10,471
Remeasurements of defined benefit plans	16,293	16,284
Total accumulated other comprehensive income	110,812	119,369
Non-controlling interests	43,139	42,448
Total net assets	421,760	435,210
Total liabilities and net assets		1,895,770	1,944,118

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2021	June 30, 2022
Operating revenue	124,961	187,192
Operating expenses
Operating expenses and cost of sales of transportation	111,664	151,251
Selling, general and administrative expenses	27,875	29,623
Total operating expenses	139,540	180,875
Operating profit (loss)	(14,579)	6,317
Non-operating income
Interest income	35	37
Dividend income	554	206
Share of profit of entities accounted for using equity method	3,643	6,852
Subsidies for employment adjustment	2,880	633
Other	1,192	1,335
Total non-operating income	8,306	9,064
Non-operating expenses
Interest expenses	1,921	1,727
Other	680	775
Total non-operating expenses	2,601	2,502
Ordinary profit (loss)	(8,874)	12,879
Extraordinary income
Contribution for construction	4,566	2,566
Gain on sale of non-current assets	191	9
Gain on sale of investment securities	2,481	-
Gain on bargain purchase	10,863	-
Other	138	44
Total extraordinary income	18,241	2,621
Extraordinary losses
Tax purpose reduction entry of contribution for construction	4,525	2,563
Loss on sale of non-current assets	21	20
Loss on retirement of non-current assets	85	164
Impairment losses	208	21
Other	1,358	36
Total extraordinary losses	6,199	2,805
Profit before income taxes	3,168	12,694
Income taxes	(5,804)	1,036
Profit	8,972	11,658
Profit (loss) attributable to non-controlling interests	(327)	425
Profit attributable to owners of parent		9,300	11,232

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