Kumagai Gumi : Consolidated Financial Results for the Fiscal Year Ended March 31,2021〔Japanese GAAP〕

（Percentage figures are changes from the same period in the previous fiscal year）

This document has been translated from the Japanese original "Kessan Tanshin" disclosed at the Tokyo Stock Exchange on May 13, 2021 and prepared for reference purpose only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 〔Japanese GAAP〕

May 13, 2021

Company name : Kumagai Gumi Co., Ltd.

Stock exchange listings : Tokyo Stock Exchange, 1st Section

Securities code : 1861 URL : https://www.kumagaigumi.co.jp/

Representative : Yasunori Sakurano, President

Contact : Chihiro Nosaka, General Manager, Accounting Department, Administration Division

Tel. [phone]

Date of general meeting of shareholders : June 29, 2021

Date of filing of securities report : June 29, 2021

Scheduled date of dividend payment : June 30, 2021

Supplemental materials for financial results : Yes

Presentation on financial results : Yes

（Rounded down to the nearest million yen）

１．Consolidated Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021) （１） Consolidated Operating Results

Net sales of completed

Operating profit

Ordinary profit

Profit attributable to

construction contracts

owners of parent

Million yen

％

Million yen

％

Million yen

％

Million yen

％

FY2020

450,232

3.2

28,069

10.3

28,400

10.4

17,925

(7.8)

FY2019

436,151

12.1

25,440

(3.9)

25,718

(3.1)

19,447

46.1

（Note） Comprehensive income

FY2020

21,414 million yen

20.0％

FY2019 17,851 million yen

37.8％

Basic earnings per share

Diluted earnings per share

Return on equity

Ordinary profit to

Operating profit to

total assets ratio

net sales ratio

Yen

Yen

％

％

％

FY2020

384.69

―

11.5

7.5

6.2

FY2019

417.35

―

13.7

7.1

5.8

（Reference） Investment profit (loss) on equity method

FY2020 226 million yen

FY2019

201 million yen

（２） Consolidated Financial Position

Total assets

Net assets

Capital adequacy ratio

Net assets per share

Million yen

Million yen

％

Yen

FY2020

379,573

163,835

43.2

3,516.07

FY2019

374,841

148,034

39.5

3,177.22

（Reference） Owner's equity

FY2020 163,835 million yen

FY2019

148,034 million yen

（３） Consolidated cash flows

Cash flows from

Cash flows from

Cash flows from

Cash and equivalents,

operating activities

investing activities

financing activities

end of period

Million yen

Million yen

Million yen

Million yen

FY2020

6,572

(4,306)

(6,112)

71,335

FY2019

345

(2,298)

(5,361)

75,155

２．Dividends

Annual cash dividends per share

Total

Payout ratio

Ratio of

dividend

dividends to

End of

End of

End of

Year-end

Total

(consolidated)

net assets

1st quarter

2nd quarter

3rd quarter

paid

(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

％

％

FY2019

―

―

―

120.00

120.00

5,611

28.8

4.0

FY2020

―

―

―

120.00

120.00

5,610

31.2

3.6

FY2021 （forecast）

―

―

―

120.00

120.00

30.1

３．Forecast of Consolidated Operating Results for FY2021 (April 1, 2021 - March 31, 2022)

（Percentage figures are changes from the same period in the previous fiscal year）

Net sales of completed

Operating income

Ordinary income

Profit attributable to

Basic earnings

construction contracts

owners of parent

per share

Million yen

％

Million yen

％

Million yen

％

Million yen

％

Yen

FY2021

451,000

0.2

27,000

(3.8)

27,400

(3.5)

18,600

3.8

399.17

（Percentage figures are changes from the same period in the previous fiscal year）

※ Notes

（1） Changes in significant subsidiaries during the period

（Changes in specified subsidiaries that resulted in a change in the scope of consolidation） : None

（2） Changes in accounting policies, changes in accounting estimates, and retrospective restatements

① Changes in accounting policies due to the revision of the accounting standards	: None
② Changes in accounting policies other than ①	: None
③ Changes in accounting estimates	: None
④ Retrospective restatements	: None

（3） Number of shares issued (common stock)

• Number of shares issued at the end of the period (including treasury stocks)
• Number of treasury stocks at the end of the period
• Average number of shares outstanding during the period

			（Shares）
FY2020	46,805,660	FY2019	46,805,660
FY2020	209,338	FY2019	213,148
FY2020	46,597,911	FY2019	46,597,903

（Reference） Summery of Nonconsolidated Financial Results

１．Nonconsolidated Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021) （１） Nonconsolidated Operating Results

Net sales of completed

Operating profit

Ordinary profit

Profit

construction contracts

Million yen

％

Million yen

％

Million yen

％

Million yen

％

FY2020

360,240

2.3

22,447

10.9

23,543

13.8

15,047

1.5

FY2019

352,224

14.7

20,244

(3.9)

20,690

(5.0)

14,823

4.7

Basic earnings per share

Diluted earnings per share

Yen

Yen

FY2020

322.21

―

FY2019

317.38

―

（２） Nonconsolidated Financial Position

Total assets

Net assets

Capital adequacy ratio

Net assets per share

Million yen

Million yen

％

Yen

FY2020

316,659

131,287

41.5

2,811.32

FY2019

315,780

118,438

37.5

2,536.08

（Reference） Owner's equity

FY2020 131,287

million yen

FY2019 118,438 million yen

２．Forecast of Nonconsolidated Operating Results for FY2021 (April 1, 2021 - March 31, 2022)

（Percentage figures are changes from the same period in the previous fiscal year）

Net sales of completed

Ordinary income

Profit

Basic earnings per share

construction contracts

Million yen

％

Million yen

％

Million yen

％

Yen

FY2021

344,000

(4.5)

22,600

(4.0)

15,800

5.0

338.33

• "Kessan Tanshin" is not subject to an audit by a certified public accountant or an audit corporation.
• Explanation regarding the appropriate use of forecasts of operating results, and other specific comments

1. The financial forecast of operating results in this document are based on information available at present and logical assessments. Actual results may be materially different from expectations due to a variety of factors.
2. The Company is to hold the presentation on financial results for analysts and institutional investors. The materials related to financial results which will be used on the presentation will be posted on the Company's website as soon as possible after the presentation.

１．Consolidated Financial Statements

(１） Consolidated balance sheet

		(millions of yen）
	FY2019	FY2020
	（As of March 31, 2020）	（As of March 31, 2021）
Assets
Current assets
Cash and deposits	75,155	71,335
Notes receivable, accounts receivable from completed	190,642	197,175
construction contracts and other
Costs on construction contracts in progress	7,864	6,454
Accounts receivable - other	29,827	29,477
Other	7,395	7,554
Allowance for doubtful accounts	(219)	(226)
Total current assets	310,667	311,770
Non-current assets
Property, plant and equipment
Buildings and structures	19,719	20,216
Machinery, vehicles, tools, furniture and fixtures	17,929	18,189
Land	14,795	15,105
Leased assets	643	900
Construction in progress	316	375
Accumulated depreciation	(28,057)	(29,128)
Total property, plant and equipment	25,347	25,658
Intangible assets	540	558
Investments and other assets
Investment securities	22,870	29,711
Long-term loans receivable	779	641
Long-termnon-operating accounts receivable	161	116
Distressed receivables	29	26
Deferred tax assets	10,328	7,245
Other	4,286	4,022
Allowance for doubtful accounts	(204)	(177)
Total investments and other assets	38,252	41,587
Total non-current assets	64,141	67,803
Deferred assets
Share issuance costs	33	－
Total deferred assets	33	－
Total assets	374,841	379,573

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		(millions of yen）
	FY2019	FY2020
	（As of March 31, 2020）	（As of March 31, 2021）
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts	96,503	84,610
and other
Electronically recorded obligations - operating	29,572	37,435
Short-term borrowings	4,074	4,161
Income taxes payable	3,093	3,841
Advances received on construction contracts in progress	19,933	11,929
Deposits received	29,489	34,622
Provision for warranties for completed construction	422	473
Provision for loss on construction contracts	469	156
Provision for contingent loss	7,614	1,482
Provision for bonuses	3,689	4,256
Other	6,726	7,633
Total current liabilities	201,590	190,604
Non-current liabilities
Long-term borrowings	8,184	7,728
Provision for share awards	97	140
Retirement benefit liability	16,421	16,644
Other	513	620
Total non-current liabilities	25,216	25,133
Total liabilities	226,807	215,737
Net assets
Shareholders' equity
Share capital	30,108	30,108
Capital surplus	25,157	25,156
Retained earnings	92,413	104,727
Treasury shares	(450)	(451)
Total shareholders' equity	147,228	159,540
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	816	4,241
Foreign currency translation adjustment	391	384
Remeasurements of defined benefit plans	(401)	(330)
Total accumulated other comprehensive income	806	4,294
Total net assets	148,034	163,835
Total liabilities and net assets	374,841	379,573

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(２） Consolidated statement of income and Consolidated statement of comprehensive income Consolidated statement of income

		(millions of yen）
	FY2019	FY2020
	（Apr 1, 2019－Mar 31, 2020）	（Apr 1, 2020－Mar 31, 2021）
Net sales of completed construction contracts	436,151	450,232
Cost of sales of completed construction contracts	390,653	402,147
Gross profit on completed construction contracts	45,498	48,084
Selling, general and administrative expenses	20,057	20,015
Operating profit	25,440	28,069
Non-operating income
Interest income	40	40
Dividend income	334	370
Share of profit of entities accounted for using	201	226
equity method
Foreign exchange gains	－	24
Other	127	243
Total non-operating income	703	906
Non-operating expenses
Interest expenses	188	190
Foreign exchange losses	20	－
Loss on sale of receivables	52	45
Commission for syndicated loans	33	210
Amortization of share issuance costs	49	33
Other	82	95
Total non-operating expenses	425	574
Ordinary profit	25,718	28,400
Extraordinary income
Gain on sales of non-current assets	7	10
Gain on sales of investment securities	18	14
Gain on sales of memberships	732	2
Compensation for expropriation	－	14
Settlement received	－	100
Reversal of provision for loss on anti-monopoly act	1,311	－
Total extraordinary income	2,068	142
Extraordinary losses
Loss on sale of non-current assets	－	12
Loss on retirement of non-current assets	43	58
Loss on valuation of investment securities	114	1
Compensation for damage	139	240
Infectious disease related costs	5	269
Provision for contingent loss	265	1,281
Loss on transfer of receivables	－	458
Loss on change in equity	77	44
Other	70	82
Total extraordinary losses	716	2,449
Profit before income taxes	27,070	26,093
Income taxes - current	6,181	6,629
Income taxes - deferred	1,441	1,538
Total income taxes	7,622	8,168
Profit	19,447	17,925
Profit attributable to owners of parent	19,447	17,925

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