Kintetsu : Financial Results for 3Q 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 Nine Months Ended December 31, 2022 (Based on Japanese GAAP)

				February 14, 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 to file Quarterly Securities Report:	February 14, 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 nine months ended December 31, 2022 (from April 1, 2022 to December 31, 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	%
Nine months ended December 31, 2022	1,117,658	119.7	46,679		-	56,446	137.1	89,321	75.8
Nine months ended December 31, 2021	508,766	-	3,911		-	23,802	-	50,799	-

	Earnings per share	Diluted earnings per share
		Yen			Yen
Nine months ended December 31, 2022		469.66			-
Nine months ended December 31, 2021		267.11			-
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio
	Millions of yen		Millions of yen		%
As of December 31, 2022	2,434,059			501,760		18.3
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
	Yen			Yen		Yen	Yen
Year ended March 31, 2022	-			0.00		-	25.00
Year ending March 31, 2023	-			0.00		-
Year ending March 31, 2023 (Forecast)							50.00

Total

Yen 25.00

50.00

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	1,600,000	131.4	56,000		-	60,000	95.7	76,000	77.8	399.61

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4. Notes

1. Changes in significant subsidiaries during the nine months ended December 31, 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:

Yes

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 December 31, 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 December 31, 2022	480,726	shares	As of March 31, 2022	480,661	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended December 31, 2022	190,182,828	shares	Nine months ended December 31, 2021	190,182,858	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2022	As of December 31, 2022
Assets
Current assets
Cash and deposits	78,902	220,478
Notes and accounts receivable - trade, and contract assets	59,730	262,602
Merchandise and finished goods	9,575	10,480
Work in process	4,032	8,196
Raw materials and supplies	4,934	4,794
Land and buildings for sale	132,965	141,077
Other	41,966	76,064
Allowance for doubtful accounts	(537)	(2,247)
Total current assets	331,569	721,446
Non-current assets
Property, plant and equipment
Buildings and structures, net	545,943	547,889
Land	671,685	686,764
Construction in progress	2,262	3,650
Other, net	69,202	110,721
Total property, plant and equipment	1,289,093	1,349,025
Intangible assets
Goodwill	13	107,796
Other	13,944	63,093
Total intangible assets	13,958	170,889
Investments and other assets
Investment securities	141,291	58,285
Other	118,679	133,817
Allowance for doubtful accounts	(1,075)	(1,729)
Total investments and other assets	258,895	190,373
Total non-current assets	1,561,947	1,710,287
Deferred assets	2,252	2,325
Total assets	1,895,770	2,434,059

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		(Millions of yen)
	As of March 31, 2022	As of December 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	49,084	151,945
Short-term borrowings	204,018	297,411
Commercial papers	40,000	20,000
Current portion of bonds payable	12,753	53,137
Income taxes payable	4,262	11,059
Provision for bonuses	7,912	13,062
Provision for loss on exchanging gift certificates	5,495	5,710
Provision for loss on contract	-	7,544
Other	180,518	243,915
Total current liabilities	504,045	803,785
Non-current liabilities
Bonds payable	300,191	342,768
Long-term borrowings	503,125	584,830
Retirement benefit liability	8,569	11,990
Other	158,077	188,924
Total non-current liabilities	969,964	1,128,513
Total liabilities	1,474,009	1,932,299
Net assets
Shareholders' equity
Share capital	126,476	126,476
Capital surplus	61,927	50,716
Retained earnings	80,555	165,177
Treasury shares	(1,150)	(694)
Total shareholders' equity	267,809	341,675
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	5,572	4,942
Deferred gains or losses on hedges	(0)	(0)
Revaluation reserve for land	87,108	87,061
Foreign currency translation adjustment	1,837	(3,803)
Remeasurements of defined benefit plans	16,293	14,468
Total accumulated other comprehensive income	110,812	102,669
Non-controlling interests	43,139	57,414
Total net assets	421,760	501,760
Total liabilities and net assets	1,895,770	2,434,059

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

Consolidated statements of income (cumulative)

		(Millions of yen)
	Nine months ended	Nine months ended
	December 31, 2021	December 31, 2022
Operating revenue	508,766	1,117,658
Operating expenses
Operating expenses and cost of sales of transportation	414,673	940,056
Selling, general and administrative expenses	90,182	130,923
Total operating expenses	504,855	1,070,979
Operating profit	3,911	46,679
Non-operating income
Interest income	90	635
Dividend income	978	629
Share of profit of entities accounted for using equity method	15,449	8,428
Subsidies for employment adjustment	7,539	1,143
Foreign exchange gains	126	3,418
Other	3,514	4,883
Total non-operating income	27,698	19,138
Non-operating expenses
Interest expenses	5,648	6,499
Other	2,158	2,871
Total non-operating expenses	7,806	9,371
Ordinary profit	23,802	56,446
Extraordinary income
Contribution for construction	4,869	2,841
Gain on sale of non-current assets	20,709	348
Gain on sale of investment securities	2,778	354
Gain on step acquisitions	-	47,536
Gain on bargain purchase	10,863	-
Other	1,099	1,884
Total extraordinary income	40,319	52,966
Extraordinary losses
Tax purpose reduction entry of contribution for construction	4,827	2,838
Loss on sale of non-current assets	44	23
Loss on retirement of non-current assets	533	899
Impairment losses	565	23
Other	1,666	479
Total extraordinary losses	7,637	4,265
Profit before income taxes	56,484	105,147
Income taxes	5,628	14,447
Profit	50,856	90,700
Profit attributable to non-controlling interests	56	1,378
Profit attributable to owners of parent	50,799	89,321

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