SRE : (Corrections / Corrections of Numerical Data) Consolidated Financial Results for the first three months of the FYE March 31, 2023 (JGAAP)

Consolidated Financial Results for the first three months of the FYE March 31, 2023

(JGAAP)

July 29, 2022

Company name: SRE Holdings Corporation

Stock exchange listing:

Tokyo

Stock code:

2980

URL: https://sre-group.co.jp/

Representative: Kazuo Nishiyama, President & Chief Executive Officer

Contact:

Osamu Mashiko, Member of the Board, CFO & Division Director, Corporate Headquarters

TEL: [phone]

Scheduled date of dividend payment: ‒

Scheduled date to submit the Quarterly Report: August 10, 2022

Earnings Supplementary Explanatory Documents: Yes

Holding of financial results presentation meeting: No

(Figures of less than one million are rounded down.)

1. Consolidated Results for the first three months of the FYE March 31, 2023 (April 1, 2022 - June 30, 2022)

(1) Consolidated operating results

(% shows the year-on-year change)

Quarterly Profit

Net sales

Operating profit

Ordinary profit

attributable to owners of

parent

Three months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

June 30, 2022

2,922

63.9

230

30.9

200

19.3

66

(42.4)

June 30, 2021

1,782

71.4

175

42.6

168

34.7

115

88.0

(Note) Comprehensive income:

Three months ended June 30, 2022: ¥66 million (42.6%)

Three months ended June 30, 2021: ¥115 million 88.0%

Basic quarterly profit

per share

Diluted quarterly profit

per share

Three months ended

Yen

Yen

June 30, 2022

4.13

4.10

June 30, 2021

7.46

7.27

(2) Consolidated financial condition

Total assets

Net assets

Equity ratio

As of

Million yen

Million yen

%

June 30, 2022

21,543

9,980

46.0

March 31, 2022

23,018

9,798

42.3

(Reference) Equity capital:

As of June 30, 2022: ¥9,904 million

As of March 31, 2022: ¥9,729 million

2. Dividends

Annual dividend per share

End of first quarter

End of second

End of third

Year end

Total

quarter

quarter

Yen

Yen

Yen

Yen

Yen

FYE March 31, 2022

‒

0.00

‒

0.00

0.00

FYE March 31, 2023

‒

FYE March 31, 2023

0.00

‒

0.00

0.00

(forecast)

3. Consolidated Financial Forecasts for the FYE March 31, 2023 (April 1, 2022 to March 31, 2023)

(% shows the year-on-year change)

		Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic profit per
			owners of parent	share
		Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
	Full year			20.1
	16,300		1,650	18.5	1,500	15.3	930	4.2	58.35

(Note) Revision of the forecasts most recently announced: No

* Notes

1. Changes in significant subsidiaries during the first three months of FYE March 31, 2023 (changes of specified subsidiaries with change of the scope of consolidation): No
2. Changes in accounting principles, changes in accounting estimates, and retrospective restatements
3. 1. Changes in accounting principles accompanying the amendment of accounting standards: Yes
   2. Changes in accounting policies other than (i): None
   3. Changes in accounting estimates: None
   4. Restatement: None

(Note) For details, please refer to "1. Quarterly Consolidated Financial Statements and Important Notes (3) Notes to Quarterly Consolidated Financial Statements, (Changes in Accounting Policies) on page 5 of the attached document.

(3) Number of issued shares (common shares)

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

As of June 30, 2022:	16,154,597 shares
As of March 31, 2022:	15,937,237 shares
(ii) Number of treasury shares at end of the period
As of June 30, 2022:	173 shares
As of March 31, 2022:	173 shares
(iii) Average number of shares during the period
The first three months of FYE March 2023:	16,116,381 shares
The first three months of FYE March 2022:	15,508,665 shares

• The results are not subject to an audit by a certified public accountant or an auditing firm.
• Explanation concerning the appropriate use of financial result forecasts and other special notes (Note on forward-looking statements)
  Forward-looking statements such as results forecasts provided in this document are prepared based on currently available information and assumptions that are deemed reasonable, but the Company does not intend to guarantee it's achievement. A variety of factors could cause actual results to differ materially from forecasts.

○ Index for Supplementary Information
1. Quarterly consolidated Financial Statements and Important Notes......................................................................	2
(1)	Quarterly consolidated balance sheets............................................................................................................	2
(2)	Quarterly consolidated statements of income and consolidated statements of comprehensive income .........	3
(Quarterly consolidated statements of income).................................................................................................	3
(Quarterly consolidated statements of comprehensive income) .......................................................................	4
(3)	Notes to Quarterly Consolidated Financial Statements ...................................................................................	5
(Note to going concern assumptions) ...............................................................................................................	5
(Notes on significant fluctuations in the amount of shareholders' equity)..........................................................	5
(Change in accounting policy) .........................................................................................................................	5
(Segment information, etc.) ..............................................................................................................................	5
(Significant Subsequent events) .......................................................................................................................	6

‒ 1 ‒

1. Quarterly Consolidated Financial Statements and Important Notes

(1) Quarterly Consolidated balance sheets

			(Unit: Thousand yen)
		As of March 31, 2022	As of June 30, 2022
ASSETS
Current assets:
Cash and deposits	2,999,148	1,955,281
Accounts receivable - trade and contract assets	411,868	481,274
Operating investments in capital	649,696	646,003
Inventories	15,813,956	15,065,298
Others	390,538	566,494
Less - allowance for doubtful accounts	(1,196)	(1,196)
Total current assets	20,264,011	18,713,157
Non-current assets:
Property, plant and equipment	615,358	527,929
Intangible assets:
Software	605,052	644,171
Goodwill	151,339	147,900
Others	29,536	25,130
Total intangible assets	785,929	817,202
Investments and other assets	1,250,805	1,394,642
Total non-current assets	2,652,093	2,739,774
Deferred Asset
Offering expenses	102,798	90,327
Total deferred Assets	102,798	90,327
Total assets	23,018,904	21,543,258
LIABILITIES
Current liabilities:
Accounts payable - trade	119,348	155,389
Short-term borrowings	3,797,090	4,067,590
Accounts payable - other	74,182	63,501
Accrued expenses	398,500	316,992
Income taxes payable	249,743	49,971
Accrued compensation	169,632	74,508
Others	332,827	394,052
Total current liabilities	5,141,325	5,122,004
Non-current liabilities:
Long-term debt	7,844,000	6,208,500
Liability for retirement benefits	60,688	62,242
Others	174,557	170,396
Total non-current liabilities	8,079,246	6,441,138
Total liabilities	13,220,571	11,563,142
NET ASSETS
Shareholders' equity:
Capital stock	4,088,600	4,142,778
Capital surplus	4,088,600	4,142,778
Retained earnings	1,554,424	1,621,038
Treasury stock, at cost	(1,233)	(1,233)
Total shareholders' equity	9,730,392	9,905,361
Unrealized holding losses on securities	(686)	(981)
Total accumulated other comprehensive losses	(686)	(981)
Stock acquisition rights	68,626	75,735
Total net assets	9,798,332	9,980,115
Total liabilities and net assets	23,018,904	21,543,258

‒ 2 ‒

1. Quarterly Consolidated statements of income and consolidated statements of comprehensive income (Quarterly Consolidated statements of income)

			(Unit: Thousand yen)
		For the three months ended	For the three months ended
		June 30, 2021	June 30, 2022
Net sales	1,782,910	2,922,373
Cost of sales	1,042,409	1,924,657
Gross profit	740,501	997,715
Selling, general and administrative expenses	564,589	767,486
Operating income	175,911	230,229
Non-operating income:
Share of profit of entities accounted for using equity	87	3,896
method
Other non-operating income	38	994
Total non-operating income	125	4,890
Non-operating expenses:
Interest expenses	7,181	20,612
Offering expenses	－	12,921
Other non-operating expenses	347	598
Total non-operating expenses	7,529	34,133
Ordinary income	168,508	200,987
Extraordinary losses:
Office relocation related losses	－	104,266
Total extraordinary losses	－	104,266
Income before income taxes	168,508	96,720
Income taxes:
Current	22,456	38,954
Deferred	30,368	(8,848)
Total income taxes	52,825	30,106
Net income	115,682	66,613
Net income attributable to owners of the parent	115,682	66,613

‒ 3 ‒