Sakata Seed : Summary of Consolidated Financial Results for the Three Months Ended August 31, 2021

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Three Months Ended August 31, 2021 (Based on Japanese GAAP)

				October 13, 2021
Company name:	SAKATA SEED CORPORATION
Stock exchange listing:	Tokyo
Stock code:	1377	URL http://www.sakataseed.co.jp/
Representative:	President and Representative Director	Hiroshi Sakata
	Executive Officer
Inquiries:	Deputy Senior General Manager of General Administration Div.	Takenori Hoshi	TEL [phone]
	General Manager of Finance Dept.
Scheduled date to file Quarterly Securities Report:	October 14, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended August 31, 2021 (from June 1, 2021 to August 31, 2021)

(1) Consolidated operating results (cumulative)		(% indicates changes from the previous corresponding period.)
	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 August 31, 2021	16,372	-	3,316	-	3,417	-	2,207	-
Three months ended August 31, 2020	15,827	8.5	3,737	26.5	3,899	21.6	3,094	28.5

(Note) From the beginning of the year ending March 31, 2022, "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020) etc. have been adopted. Therefore, the percentage compared to the previous corresponding periods are not stated. When calculating the figures for the three months ended August 31, 2021 in accordance with the same accounting standard before this adoption, net sales would be 17,120 million yen (8.2% increase compared to the previous corresponding period).

	Earnings per share	Diluted earnings per share
	Yen		Yen
Three months ended August 31, 2021	49.54		-
Three months ended August 31, 2020	69.38		-
(2) Consolidated financial position
	Total assets	Net assets	Equity ratio
	Millions of yen	Millions of yen	%
As of August 31, 2021	134,115	113,573	84.5
As of May 31, 2021	133,077	111,898	83.9

(Note) From the beginning of the year ending March 31, 2022, "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020) etc. have been adopted. Accordingly, the above figures as of August 31, 2021 include the effects of the new standards.

2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended May 31, 2021	-	15.00	-	23.00	38.00
Year ending May 31, 2022	-
Year ending May 31, 2022 (Forecast)		18.00	-	20.00	38.00

(Note) Revision of the latest forecast of cash dividends: No

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3. Forecast of consolidated financial results for the year ending May 31, 2022 (from June 1, 2021 to May 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
30,500	-	3,800	-	3,900	-	2,600	-	58.30
November 30, 2021
Full year	65,600	-	7,300	-	7,700	-	8,800	-	197.32

(Note) Revision of the latest forecast of consolidated financial results: YES

(Note) From the beginning of the year ending March 31, 2022, "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020) etc. have been adopted. Accordingly, the above forecasts include the effects of the new standards. Therefore, the percentage compared to the previous corresponding periods are not stated. When calculating the figures for the full year forecast in accordance with the same accounting standard before this adoption, net sales are forecasted at 69,200 million yen.

4. Notes
(1)	Changes in significant subsidiaries during the three months ended August 31, 2021	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	Yes

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	Yes
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of August 31, 2021	47,410,750	shares	As of May 31, 2021	47,410,750	shares
Number of treasury shares at the end of the period
	As of August 31, 2021	2,974,664	shares	As of May 31, 2021	2,813,736	shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)

Three months ended August 31, 2021

44,554,918 shares

Three months ended August 31, 2020

44,597,708 shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of May 31, 2021	As of August 31, 2021
Assets
Current assets
Cash and deposits	20,988	20,102
Notes and accounts receivable - trade	16,465	-
Notes and accounts receivable	-	16,131
- trade, and contract assets
Merchandise and finished goods	30,642	32,298
Work in process	2,554	2,648
Raw materials and supplies	2,240	978
Costs on construction contracts in progress	51	51
Other	4,387	5,329
Allowance for doubtful accounts	(416)	(407)
Total current assets	76,913	77,133
Non-current assets
Property, plant and equipment
Buildings and structures	33,073	33,315
Accumulated depreciation	(21,073)	(21,345)
Buildings and structures, net	12,000	11,969
Machinery, equipment and vehicles	14,842	15,271
Accumulated depreciation	(10,237)	(10,462)
Machinery, equipment and vehicles, net	4,604	4,808
Land	13,697	13,746
Construction in progress	1,647	1,899
Other	6,205	6,418
Accumulated depreciation	(3,917)	(4,086)
Other, net	2,287	2,332
Total property, plant and equipment	34,237	34,757
Intangible assets	4,591	4,194
Investments and other assets
Investment securities	14,848	15,734
Long-term loans receivable	25	23
Deferred tax assets	1,665	1,457
Other	808	828
Allowance for doubtful accounts	(13)	(13)
Total investments and other assets	17,334	18,030
Total non-current assets	56,163	56,982
Total assets		133,077	134,115

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		(Millions of yen)
	As of May 31, 2021	As of August 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	4,896	4,451
Short-term borrowings	1,894	1,716
Income taxes payable	1,447	1,022
Other	6,449	6,560
Total current liabilities	14,688	13,751
Non-current liabilities

Long-term borrowings Deferred tax liabilities Retirement benefit liability

Provision for retirement benefits for directors (and other officers)

Provision for share awards for directors (and other officers)

Other

Total non-current liabilities Total liabilities

Net assets Shareholders' equity

Share capital Capital surplus Retained earnings Treasury shares

Total shareholders' equity

Accumulated other comprehensive income Valuation difference on available-for-sale securities

Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income

Non-controlling interests Total net assets

Total liabilities and net assets

894	787
1,256	1,795
1,819	1,720
44	41
101	106
2,374	2,339
6,490	6,790
21,178	20,542
13,500	13,500
10,793	10,793
91,099	91,976
(4,487)	(5,074)
110,905	111,195
5,873	6,491
(4,876)	(4,133)
(240)	(230)
757	2,128
235	249
111,898	113,573
133,077	134,115

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		August 31, 2020	August 31, 2021
Net sales	15,827	16,372
Cost of sales	5,672	5,574
Gross profit	10,154	10,798
Selling, general and administrative expenses	6,416	7,481
Operating profit	3,737	3,316
Non-operating income
Interest income	25	25
Dividend income	157	152
Rental income	47	56
Other	74	100
Total non-operating income	305	336
Non-operating expenses
Interest expenses	32	22
Foreign exchange losses	80	168
Other	29	44
Total non-operating expenses	142	235
Ordinary profit	3,899	3,417
Extraordinary income
Gain on sale of investment securities	31	-
Total extraordinary income	31	-
Extraordinary losses
Impairment losses	15	-
Total extraordinary losses	15	-
Profit before income taxes	3,916	3,417
Income taxes	805	1,196
Profit	3,110	2,220
Profit attributable to non-controlling interests	16	13
Profit attributable to owners of parent		3,094	2,207

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