Sakai Moving Service : Summary of the Consolidated Financial Results for the Second Quarter 2022

October 29, 2021

Summary of the Consolidated Financial Results for the Second Quarter

of the Fiscal Year Ending March 31, 2022 (FY3/22)

(Six Months Ended September 30, 2021)

		[Japanese GAAP]
Company name: Sakai Moving Service Co., Ltd.	Listing: Tokyo Stock Exchange, First Section
Stock code:	9039	URL: https://www.hikkoshi-sakai.co.jp
Representative:	Tetsuyasu Tajima, President and Representative Director
Inquiries:	Teruhiro Manabe, Director, Accounting General Manager
	Tel: [phone]
Scheduled date of filing of Quarterly Report:	November 10, 2021
Scheduled date of payment of dividend:	December 3, 2021
Preparation of supplementary materials for quarterly financial results:	Yes

Holding of quarterly financial results meeting:

Yes (for institutional investors and analysts)

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter (April 1, 2021 to September 30, 2021) of FY3/22

(1) Consolidated results of operations				(Percentages represent year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Six months ended Sep. 30, 2021	50,492		4.9	4,859	(17.5)	5,194	(14.8)	3,231	(20.6)
Six months ended Sep. 30, 2020	48,137		(3.1)	5,891	(14.1)	6,094	(13.5)	4,070	(10.4)

Note: Comprehensive income (millions of yen):

Six months ended Sep. 30, 2021:	3,216	(down 21.9%)
Six months ended Sep. 30, 2020:	4,115	(down 10.7%)

	Net income per share	Diluted net income
	per share
	Yen	Yen
Six months ended Sep. 30, 2021	157.40	-
Six months ended Sep. 30, 2020	198.24	-

(2) Consolidated financial position

	Total assets	Net assets	Shareholders' equity ratio
	Millions of yen	Millions of yen	%
As of Sep. 30, 2021		93,029		74,006	79.6
As of Mar. 31, 2021		99,488		72,125	72.5
Reference: Shareholders' equity (millions of yen):	As of Sep. 30, 2021:	74,006	As of Mar. 31, 2021: 72,125

2. Dividends

					Dividend per share
	1Q-end	2Q-end	3Q-end	Year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended Mar. 31, 2021	-		15.00		-		65.00	80.00
Fiscal year ending Mar. 31, 2022	-		30.00
Fiscal year ending Mar. 31, 2022					-		60.00	90.00
(Forecast)
Note: Revisions to the most recently announced dividend forecast: None

3. Consolidated Forecast for FY3/22 (April 1, 2021 to March 31, 2022)

(Percentages represent year-on-year changes)

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Net income
				owners of parent	per share
	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%	Yen
Full year	103,480		3.1	11,675		4.9	11,944		1.8	7,962	3.4	387.82

Note: Revisions to the most recently announced consolidated forecast: None

* Notes

(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in

scope of consolidation): None
Newly added: -	Excluded: -

1. Application of special accounting methods for presenting quarterly consolidated financial statements: None
2. Changes in accounting policies and accounting-based estimates, and restatements

1. Changes in accounting policies due to revisions in accounting standards, others: Yes
2. Changes in accounting policies other than 1) above: None
3. Changes in accounting-based estimates: None
4. Restatements: None

1. Number of outstanding shares (common shares)

1. Number of shares outstanding at the end of the period (including treasury shares)

As of Sep. 30, 2021:	21,162,000 shares	As of Mar. 31, 2021:	21,162,000 shares
2) Number of treasury shares at the end of the period
As of Sep. 30, 2021:	632,136 shares	As of Mar. 31, 2021:	631,713 shares
3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2021:	20,530,004 shares	Six months ended Sep. 30, 2020	20,532,126 shares

• The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
• Cautionary statement with respect to forward-looking statements and other special items
  Forecasts of future performance in these materials are based on assumptions judged to be valid and information available to the management of Sakai Moving Service at the time the materials were prepared. These materials are not promises by Sakai Moving Service regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons. For a discussion of the assumptions for forecasts, precautions concerning usage and other information, please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 3.

	Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for 2Q of FY3/22
Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	2
(3)	Explanation of Consolidated Forecast and Other Forward -looking Statements	3
2. Quarterly Consolidated Financial Statements and Notes	4
(1)	Quarterly Consolidated Balance Sheet	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
	Quarterly Consolidated Statement of Income
	For the Six-month Period	6
	Quarterly Consolidated Statement of Comprehensive Income
	For the Six-month Period	7
(3)	Notes to Quarterly Consolidated Financial Statements	8
	Going-concern Assumption	8
	Significant Changes in Shareholders' Equity	8
	Changes in Significant Subsidiaries during the Period	8
	Changes in Accounting Policies	8

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Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for 2Q of FY3/22

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

In the first half of the current fiscal year, because of the renewed increase of the COVID-19 infection cases, a series of emergency declarations and priority measures to prevent the spread of the disease have been issued and extended, particularly in the major metropolitan areas. On the other hand, vaccinations have progressed steadily, and it is hoped that restrictions on activities will be eased, and that economic activity will return to normal levels. Nevertheless, the economic outlook remains uncertain because there is still no prospect of the COVID -19 pandemic being brought under control.

In Japan's moving industry, although there have been signs of an increase in the number of housing starts, the number of people relocating has decreased due to restrictions caused by the declaration of a state of emergency and the impact of the priority measures implemented to prevent the spread of the infection.

The Sakai Moving Service Group expected the demand for corporate relocations to decrease during the peak season of March and April. To offset the decline, the Group used the web -based ordering system to secure orders. However, following the lifting of the declaration of the state of emergency at the end of March, the Group received more orders than expected from corporate clients lifting orders to levels exceeding our service capacity and increasing the workload of our employees. Consequently, from April onward, outsourcing costs were higher than projected. Measures to prevent COVID-19 clusters and consideration for working hours of our employees also increased outsourcing costs.

Furthermore, our capacity utilization rate declined as the number of orders received in the Kanto region decreased during the period of the Tokyo Olympics and Paralympic games. In addition, we adjusted the order intake in view of traffic restrictions imposed during the events. In the current fiscal year, expenses increased due to the payment of special bonuses to employees who had been overburdened by the impact of the COVID-19 pandemic. The reduction in expenses in the previous fiscal year due to the reversal of the provision for bonuses is another reason for higher expenses in the first half.

By steadily making its business operations more powerful, the Sakai Moving Service Group achieved higher sales than one year earlier as the number of jobs performed increased 3.2% to 420,350 and the average unit rate for moving services was up 1.8%.

Net sales increased 4.9% year-on-year to 50,492 million yen, operating profit decreased 17.5% to 4,859 million yen, ordinary profit decreased 14.8% to 5,194 million yen, and profit attributable to owners of parent decreased 20.6% to 3,231 million yen.

(2) Explanation of Financial Position

1) Current assets

Current assets decreased by 7,491 million yen, or 23.6%, from the end of the previous fiscal year to 24,275 million yen.

This was attributable mainly to a decrease of 4,983 million yen in notes and accounts receivable-trade.

2) Non-current assets

Non-current assets increased by 1,031 million yen, or 1.5%, from the end of the previous fiscal year to 68,753 million yen.

This was mainly attributable to increases of 873 million yen in buildings and 740 million yen in land.

3) Current liabilities

Current liabilities decreased by 8,275 million yen, or 38.2%, from the end of the previous fiscal year to 13,403 million yen.

This was attributable mainly to decreases of 2,929 million yen in accounts payable-trade, 1,954 million yen in accrued expenses included in other current liabilities, 1,325 million yen in income taxes payable and 1,070 million yen in advances received included in other current liabilities.

2

Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for 2Q of FY3/22

4) Non-current liabilities

Non-current liabilities decreased by 64 million yen, or 1.1%, from the end of the previous fiscal year to 5,619 million yen.

This was attributable mainly to a decrease of 96 million yen in long-term borrowings.

5) Net assets

Net assets increased by 1,881 million yen, or 2.6%, from the end of the previous fiscal year to 74,006 million yen.

This was attributable mainly to an increase of 1,896 million yen in retained earnings.

(3) Explanation of Consolidated Forecast and Other Forward -looking Statements

There are no revisions to the first-half and full-year forecasts for the fiscal year ending March 31, 2022, which were announced on May 7, 2021.

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