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

July 29, 2021

Summary of the Consolidated Financial Results for the First Quarter

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

(Three Months Ended June 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:			August 10, 2021
Scheduled date of payment of dividend:			-
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:			None
					(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the First Quarter (April 1, 2021 to June 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		%
Three months ended Jun. 30, 2021	27,836		8.0	3,598	(14.0)		3,648	(15.7)	2,171		(23.0)
Three months ended Jun. 30, 2020	25,766		(6.2)	4,184	(21.0)		4,328	(19.8)	2,818		(19.6)

Note: Comprehensive income (millions of yen):

Three months ended Jun. 30, 2021:	2,166	(down 24.5%)
Three months ended Jun. 30, 2020:	2,868	(down 18.9%)

	Net income per share	Diluted net income
	per share
	Yen	Yen
Three months ended Jun. 30, 2021	105.77	-
Three months ended Jun. 30, 2020	137.28	-

(2) Consolidated financial position

	Total assets	Net assets	Shareholders' equity ratio
	Millions of yen	Millions of yen	%
As of Jun. 30, 2021		93,197		72,956	78.3
As of Mar. 31, 2021		99,488		72,125	72.5
Reference: Shareholders' equity (millions of yen):	As of Jun. 30, 2021:	72,956	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		-
Fiscal year ending Mar. 31, 2022				30.00		-		60.00	90.00
(Forecast)
Note: Revisions to the most recently announced dividend forecast: None

Composition of the year-end dividend for the fiscal year ending March 31, 2022: Ordinary dividend of 60.00 yen

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
First half	49,942		3.7	6,178		4.9	6,366		4.5	4,130	1.5	201.17
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 Jun. 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 Jun. 30, 2021:	632,096 shares	As of Mar. 31, 2021:	631,713 shares
3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2021:	20,530,133 shares	Three months ended Jun. 30, 2020	20,532,163 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 t he 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 2.

	Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for 1Q 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	2
2. Quarterly Consolidated Financial Statements and Notes	3
(1)	Quarterly Consolidated Balance Sheet	3
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	5
	Quarterly Consolidated Statement of Income
	For the Three-month Period	5
	Quarterly Consolidated Statement of Comprehensive Income
	For the Three-month Period	6
(3)	Notes to Quarterly Consolidated Financial Statements	7
	Going-concern Assumption	7
	Significant Changes in Shareholders' Equity	7
	Changes in Significant Subsidiaries during the Period	7
	Changes in Accounting Policies	7

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Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for 1Q of FY3/22

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

In the first quarter of the current fiscal year, although there is progress with COVID-19 vaccinations in Japan, the economic outlook remains uncertain because infections continue to increase and it is still impossible to predict when this crisis will end.

In Japan's moving industry, the market is recovering due to upturns in the number of housing starts and people who are relocating.

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 6.1% to 220,061 and the average unit rate for moving services was up 1.7%. First quarter expenses increased. There were higher outsourcing expenses in order to capture new orders during the pandemic and special payments to employees who were severely impacted by the 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 quarter.

Net sales increased 8.0% year-on-year to 27,836 million yen, operating profit decreased 14.0% to 3,598 million yen, ordinary profit decreased 15.7% to 3,648 million yen, and profit attributable to owners of parent decreased 23.0% to 2,171 million yen.

(2) Explanation of Financial Position

1) Current assets

Current assets decreased by 7,174 million yen, or 22.6%, from the end of the previous fiscal year to 24,592 million yen.

This was attributable mainly to decreases of 4,713 million yen in notes and accounts receivable-trade and 2,346 million yen in cash and deposits.

2) Non-current assets

Non-current assets increased by 883 million yen, or 1.3%, from the end of the previous fiscal year to 68,605 million yen.

This was mainly attributable to increases of 612 million yen in land and 222 million yen in buildings.

3) Current liabilities

Current liabilities decreased by 7,300 million yen, or 33.7%, from the end of the previous fiscal year to 14,378 million yen. This was attributable mainly to decreases of 3,143 million yen in accounts payable-trade, 1,188 million yen in advances received included in other current liabilities and 1,454 million yen in income taxes payable.

4) Non-current liabilities

Non-current liabilities increased by 177 million yen, or 3.1%, from the end of the previous fiscal year to 5,862 million yen.

This was attributable mainly to an increase of 118 million yen in long-term borrowings.

5) Net assets

Net assets increased by 831 million yen, or 1.2%, from the end of the previous fiscal year to 72,956 million yen.

This was attributable mainly to an increase of 837 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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Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for 1Q of FY3/22

2. Quarterly Consolidated Financial Statements and Notes

(1) Quarterly Consolidated Balance Sheet

			(Millions of yen)
		FY3/21	First quarter of FY3/22
		(as of Mar. 31, 2021)	(as of Jun. 30, 2021)
Assets
Current assets
Cash and deposits	22,588	20,242
Notes and accounts receivable-trade	7,516	2,803
Merchandise	486	523
Other	1,182	1,029
Allowance for doubtful accounts	(7)	(6)
Total current assets	31,766	24,592
Non-current assets
Property, plant and equipment
Buildings, net	9,260	9,482
Land	50,989	51,602
Leased assets, net	954	901
Other, net	1,445	1,619
Total property, plant and equipment	62,651	63,605
Intangible assets
Goodwill	22	170
Contract-based intangible assets	141	113
Other	420	395
Total intangible assets	584	679
Investments and other assets
Other	4,577	4,410
Allowance for doubtful accounts	(91)	(90)
Total investments and other assets	4,486	4,319
Total non-current assets	67,722	68,605
Total assets	99,488	93,197
Liabilities
Current liabilities
Accounts payable-trade	5,350	2,207
Current portion of bonds payable	-	22
Short-term borrowings	1,285	1,210
Lease obligations	214	214
Income taxes payable	2,624	1,170
Provision for bonuses	824	190
Other	11,379	9,362
Total current liabilities	21,678	14,378
Non-current liabilities
Bonds payable	-	89
Long-term borrowings	2,363	2,482
Lease obligations	752	692
Retirement benefit liability	10	31
Asset retirement obligations	153	153
Other	2,404	2,412
Total non-current liabilities	5,684	5,862
Total liabilities	27,363	20,240

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