Kintetsu : Financial Results for 1Q of FY2023

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, 2023
		(Based on Japanese GAAP)
				August 10, 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		Takashi Tsuji
Inquiries:	General Manager of Accounting and Finance	Naoyuki Isokawa	TEL [phone]
	Division
Scheduled date to file Quarterly Securities Report:	August 10, 2023
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, 2023 (from April 1, 2023 to June 30, 2023)

(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, 2023	399,545	113.4	22,011	248.4	19,355	50.3	10,402	(7.4)
Three months ended June 30, 2022	187,192	49.8	6,317	-	12,879	-	11,232	20.8

	Earnings per share	Diluted earnings per share
		Yen				Yen
Three months ended June 30, 2023		54.70				-
Three months ended June 30, 2022		59.06				-
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen		Millions of yen		%
As of June 30, 2023	2,395,201		516,460		19.1
As of March 31, 2023	2,424,755		500,262		18.2
2. Cash dividends
				Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end
	Yen			Yen			Yen	Yen
Year ended March 31, 2023	-			0.00			-	50.00
Year ending March 31, 2024	-
Year ending March 31, 2024 (Forecast)				0.00			-	50.00

Total

Yen 50.00

50.00

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

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2023 (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, 2023	190,662,061	shares	As of March 31, 2023	190,662,061	shares
Number of treasury shares at the end of the period
	As of June 30, 2023	484,735	shares	As of March 31, 2023	482,673	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2023	190,178,110	shares	Three months ended June 30, 2022	190,180,670	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits	217,087	219,419
Notes and accounts receivable - trade, and contract assets	224,337	187,579
Securities	5,008	5,222
Merchandise and finished goods	9,638	10,365
Work in process	4,750	6,762
Raw materials and supplies	5,176	5,109
Land and buildings for sale	155,664	164,661
Other	82,640	75,354
Allowance for doubtful accounts	(2,254)	(2,182)
Total current assets	702,048	672,293
Non-current assets
Property, plant and equipment
Buildings and structures, net	557,549	554,000
Land	679,139	679,283
Construction in progress	5,379	5,405
Other, net	122,335	125,926
Total property, plant and equipment	1,364,404	1,364,616
Intangible assets
Goodwill	62,517	61,703
Other	107,399	106,639
Total intangible assets	169,917	168,343
Investments and other assets
Investment securities	58,827	60,202
Other	129,109	129,467
Allowance for doubtful accounts	(1,750)	(1,795)
Total investments and other assets	186,186	187,874
Total non-current assets	1,720,508	1,720,835
Deferred assets	2,199	2,073
Total assets	2,424,755	2,395,201

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		(Millions of yen)
	As of March 31, 2023	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	133,461	121,947
Short-term borrowings	273,229	222,417
Commercial papers	45,000	40,000
Current portion of bonds payable	43,137	43,137
Income taxes payable	10,220	11,671
Provision for bonuses	17,281	19,061
Provision for loss on exchanging gift certificates	5,755	5,819
Provision for contract losses	3,470	3,145
Other	248,206	237,625
Total current liabilities	779,761	704,826
Non-current liabilities
Bonds payable	342,054	341,200
Long-term borrowings	575,903	604,619
Retirement benefit liability	12,056	12,403
Other	214,718	215,692
Total non-current liabilities	1,144,732	1,173,914
Total liabilities	1,924,493	1,878,741
Net assets
Shareholders' equity
Share capital	126,476	126,476
Capital surplus	54,898	55,510
Retained earnings	161,795	162,667
Treasury shares	(1,164)	(1,173)
Total shareholders' equity	342,006	343,480
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	4,920	6,759
Deferred gains or losses on hedges	(0)	(0)
Revaluation reserve for land	89,899	89,909
Foreign currency translation adjustment	(8,346)	4,817
Remeasurements of defined benefit plans	13,371	12,458
Total accumulated other comprehensive income	99,845	113,945
Non-controlling interests	58,410	59,034
Total net assets	500,262	516,460
Total liabilities and net assets	2,424,755	2,395,201

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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, 2022	June 30, 2023
Operating revenue	187,192	399,545
Operating expenses
Operating expenses and cost of sales of transportation	151,251	322,689
Selling, general and administrative expenses	29,623	54,844
Total operating expenses	180,875	377,533
Operating profit	6,317	22,011
Non-operating income
Interest income	37	698
Dividend income	206	455
Share of profit of entities accounted for using equity method	6,852	452
Subsidies for employment adjustment	633	-
Foreign exchange gains	486	-
Other	848	1,316
Total non-operating income	9,064	2,923
Non-operating expenses
Interest expenses	1,727	2,369
Foreign exchange losses	-	1,106
Other	775	2,103
Total non-operating expenses	2,502	5,579
Ordinary profit	12,879	19,355
Extraordinary income
Contribution received for construction	2,566	1,420
Gain on sale of non-current assets	9	1
Other	44	66
Total extraordinary income	2,621	1,488
Extraordinary losses
Tax purpose reduction entry of contribution for construction	2,563	1,420
Loss on sale of non-current assets	20	4
Loss on retirement of non-current assets	164	144
Impairment losses	21	81
Special survey costs, etc.	-	515
Other	36	122
Total extraordinary losses	2,805	2,288
Profit before income taxes	12,694	18,554
Income taxes	1,036	7,348
Profit	11,658	11,205
Profit attributable to non-controlling interests	425	802
Profit attributable to owners of parent	11,232	10,402

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