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

January 31, 2022

Summary of the Consolidated Financial Results for the Third Quarter

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

(Nine Months Ended December 31, 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:			February 10, 2022
Scheduled date of payment of dividend:			-
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:			None
					(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Third Quarter (April 1, 2021 to December 31, 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		%
Nine months ended Dec. 31, 2021	73,228		4.5	6,323	(11.3)		6,735		(12.2)	4,203		(18.4)
Nine months ended Dec. 31, 2020	70,079		(1.4)	7,128	(13.7)		7,670		(10.0)	5,152		(5.1)

Note: Comprehensive income (millions of yen):

Nine months ended Dec. 31, 2021:	4,163	(down 19.8%)
Nine months ended Dec. 31, 2020:	5,192	(down 5.9%)

	Net income per share	Diluted net income
	per share
	Yen	Yen
Nine months ended Dec. 31, 2021	204.91	-
Nine months ended Dec. 31, 2020	250.96	-

(2) Consolidated financial position

	Total assets	Net assets	Shareholders' equity ratio
	Millions of yen	Millions of yen	%
As of Dec. 31, 2021	92,072	73,711	80.1
As of Mar. 31, 2021	99,488	72,125	72.5

Reference: Shareholders' equity (millions of yen): As of S Dec. 31, 2021: 73,711 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 Dec. 31, 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 Dec. 31, 2021:	774,236 shares	As of Mar. 31, 2021:	631,713 shares
3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2021:	20,513,210 shares	Nine months ended Dec. 31, 2020	20,531,715 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 Consolida ted Forecast and Other Forward-looking Statements" on page 3.

	Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for 3Q 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 Nine-month Period	6
	Quarterly Consolidated Statement of Comprehensive Income
	For the Nine-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

1

Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for 3Q of FY3/22

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

In the first nine months of the current fiscal year, there were expectations for an economic recovery as states of emergency and other priority measures to prevent the spread of COVID-19 ended. However, the outlook for the Japanese economy remains unclear because of a new wave of infections caused by the highly infectious Omicron variant of the COVID-19 virus.

In Japan's moving industry, there are signs of an upturn in the number of people relocating as the number of housing starts increases.

Outsourcing costs increased because of measures to prevent COVID-19 clusters and other measures involving working hours for employees directly involved with moving services. In addition, expenses increased due to the payment of special bonuses to employees who had been severely impacted by 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 nine months.

By steadily making business operations more powerful, the Sakai Moving Service Group achieved higher sales than one year earlier as the number of jobs performed increased 3.1% to 625,672 and the average unit rate for moving services was up 1.1%.

Net sales increased 4.5% year-on-year to 73,228 million yen, operating profit decreased 11.3% to 6,323 million yen, ordinary profit decreased 12.2% to 6,735 million yen, and profit attributable to owners of parent decreased 18.4% to 4,203 million yen.

(2) Explanation of Financial Position

1) Current assets

Current assets decreased by 8,323 million yen, or 26.2%, from the end of the previous fiscal year to 23,443 million yen.

This was attributable mainly to a decrease of 5,251 million yen in notes and accounts receivable-trade.

2) Non-current assets

Non-current assets increased by 906 million yen, or 1.3%, from the end of the previous fiscal year to 68,628 million yen.

This was mainly attributable to increases of 813 million yen in buildings and 811 million yen in land, and a decrease of 733 million yen in deferred tax assets included in other under investments and other assets.

3) Current liabilities

Current liabilities decreased by 8,812 million yen, or 40.7%, from the end of the previous fiscal year to 12,866 million yen.

This was attributable mainly to decreases of 2,780 million yen in accounts payable-trade, 2,075 million yen in income taxes payable, 1,708 million yen in accrued expenses included in other current liabilities and 1,333 million yen in advances received included in other current liabilities.

4) Non-current liabilities

Non-current liabilities decreased by 190 million yen, or 3.3%, from the end of the previous fiscal year to 5,494 million yen.

This was attributable mainly to a decrease of 195 million yen in long-term borrowings.

5) Net assets

Net assets increased by 1,586 million yen, or 2.2%, from the end of the previous fiscal year to 73,711 million yen.

This was attributable mainly to an increase of 2,231 million yen in retained earnings.

2

Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for 3Q of FY3/22

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

There is no revision to the full-year forecast for the fiscal year ending March 31, 2022, which was announced on October 29, 2021.

3