Nishimatsu Construction : Consolidated Financial Results for the Nine Months Ended December 31, 2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

[Japanese GAAP]

Company name: Nishimatsu Construction Co., Ltd.	February 04, 2022
Stock exchange listing: Tokyo
Code number: 1820
URL: https://www.nishimatsu.co.jp/
Representative: Nobutoshi Takase	Representative Director and President
Contact: Junichi Usuki	General Manager of Finance & Accounting Department

Phone: [phone]

Scheduled date of filing quarterly securities report: February 04, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 01, 2021 to December 31, 2021)

(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
Nine months ended		Million yen		%	Million yen	%	Million yen	%	Million yen	%
December 31, 2021		235,409		(5.2)	18,896	40.4	18,810	33.5	10,958	9.4
December 31, 2020		248,329		(7.6)	13,461	(24.5)	14,093	(23.3)	10,017	(28.6)

(Note) Comprehensive income:	Nine months ended December 31, 2021:	¥		8,337 million	[	(29.7) %]
		Nine months ended December 31, 2020:	¥		11,865 million	[	(2.0) %]
		Basic earnings	Diluted earnings per
		per share		share
Nine months ended		Yen				Yen
December 31, 2021		213.54				-
December 31, 2020		183.13				-
(2) Consolidated Financial Position
		Total assets		Net assets		Capital adequacy ratio
As of		Million yen			Million yen		%
December 31, 2021		486,566			150,106		30.5
March 31, 2021		472,440			207,537		43.6
(Reference) Equity: As of	December 31, 2021:	¥	148,502 million
As of	March 31, 2021:	¥	205,982 million

2. Dividends

				Annual dividends
	1st	2nd	3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
	Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2021	-		-	-		105.00	105.00
Fiscal year ending March 31, 2022	-		90.00	-
Fiscal year ending March 31, 2022						131.00	221.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
	Million yen		%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year	319,500		(5.0)	23,500	12.2	23,000		6.7	14,300	(16.7)	295.72
(Note) Revision to the financial results forecast announced most recently:	Yes
* Notes:
(1) Changes in significant subsidiaries during the nine months ended December 31, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2021:	55,591,502	shares
March 31, 2021:	55,591,502	shares
2) Total number of treasury shares at the end of the period:
December 31, 2021:	16,118,007	shares
March 31, 2021:	890,792	shares

3) Average number of shares during the period:
Nine months ended December 31, 2021:	51,316,521	shares
Nine months ended December 31, 2020:	54,701,421	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

					(Million yen)
				As of March 31,2021	As of December 31,2021
Assets
	Current assets
		Cash and deposits	43,769	54,125
		Notes receivable, accounts receivable from	203,082	173,228
		completed construction contracts and other
		Costs on construction contracts in progress	6,373	7,341
		Real estate for sale	2,543	1,123
		Costs on real estate business	4,794	5,503
		Raw materials and supplies	670	629
		Advances paid	9,306	11,353
		Other	4,897	12,634
		Allowance for doubtful accounts	(163)	(18)
		Total current assets	275,273	265,922
	Non-current assets
		Property, plant and equipment
			Buildings and structures, net	52,473	65,230
			Machinery, vehicles, tools, furniture and	1,180	1,563
			fixtures, net
			Land	83,759	97,068
			Leased assets, net	68	59
			Construction in progress	4,155	1,214
			Total property, plant and equipment	141,636	165,135
		Intangible assets	1,189	1,158
		Investments and other assets
			Investment securities	44,641	40,462
			Long-term loans receivable	599	664
			Retirement benefit asset	961	2,666
			Deferred tax assets	3,314	4,187
			Other	4,905	6,446
			Allowance for doubtful accounts	(80)	(76)
			Total investments and other assets	54,340	54,349
		Total non-current assets	197,166	220,643
	Total assets	472,440	486,566

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				(Million yen)
			As of March 31,2021	As of December 31,2021
Liabilities
	Current liabilities
		Notes payable, accounts payable for construction	56,305	54,479
		contracts and other
		Short-term borrowings	35,039	76,164
		Commercial papers	20,000	40,000
		Current portion of bonds payable	-	10,000
		Income taxes payable	7,968	1,599
		Advances received on construction contracts in	18,703	14,468
		progress
		Provision for warranties for completed	9,815	9,712
		construction
		Provision for bonuses	2,894	1,320
		Provision for loss on construction contracts	1,488	1,870
		Provision for loss on real estate business and other	28	39
		Asset retirement obligations	-	24
		Deposits received	34,306	58,125
		Other	4,579	3,541
		Total current liabilities	191,127	271,344
	Non-current liabilities
		Bonds payable	60,000	50,000
		Deferred tax liabilities	301	301
		Provision for environmental measures	2	-
		Retirement benefit liability	6,340	6,436
		Asset retirement obligations	636	675
		Other	6,494	7,701
		Total non-current liabilities	73,775	65,114
	Total liabilities	264,903	336,459
Net assets
	Shareholders' equity
		Share capital	23,513	23,513
		Capital surplus	20,780	20,780
		Retained earnings	154,041	154,340
		Treasury shares	(2,177)	(57,333)
		Total shareholders' equity	196,158	141,300
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	10,627	7,687
		securities
		Foreign currency translation adjustment	(296)	25
		Remeasurements of defined benefit plans	(506)	(510)
		Total accumulated other comprehensive income	9,824	7,201
	Non-controlling interests	1,554	1,604
	Total net assets	207,537	150,106
Total liabilities and net assets	472,440	486,566

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

		(Million yen)
	For the nine months	For the nine months
	ended December 31,2020	ended December 31,2021
Net sales
Net sales of completed construction contracts	237,756	223,136
Net sales in real estate business and other	10,573	12,273
Total net sales	248,329	235,409
Cost of sales
Cost of sales of completed construction contracts	214,742	194,205
Cost of sales in real estate business and other	6,502	7,989
Total cost of sales	221,245	202,195
Gross profit
Gross profit on completed construction contracts	23,013	28,930
Gross profit on real estate business and other	4,070	4,283
Total gross profit	27,084	33,214
Selling, general and administrative expenses	13,623	14,318
Operating profit	13,461	18,896
Non-operating income
Interest income	48	23
Dividend income	797	575
Reversal of allowance for doubtful accounts	10	148
Foreign exchange gains	-	119
Late charges income	-	498
Other	395	435
Total non-operating income	1,251	1,801
Non-operating expenses
Interest expenses	338	393
Foreign exchange losses	1	-
Financing expenses	137	614
Advisory fees	-	623
Other	141	255
Total non-operating expenses	619	1,887
Ordinary profit	14,093	18,810
Extraordinary income
Gain on sale of non-current assets	1	3
Gain on sale of investment securities	1,714	3
Other	-	0
Total extraordinary income	1,715	7
Extraordinary losses
Loss on sale of non-current assets	2	71
Loss on sale of investment securities	84	-
Head office relocation expenses	112	-
Increase (decrease) in employee deposits	641	10
Provision for warranties for completed construction	-	2,998
Other	167	55
Total extraordinary losses	1,007	3,134
Profit before income taxes	14,801	15,683
Income taxes	4,614	4,678
Profit	10,186	11,004
Profit attributable to non-controlling interests	168	46
Profit attributable to owners of parent	10,017	10,958

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