Taikisha : Financial Report for the First Quarter of the Fiscal Year ending March 31, 2022

Financial Report for the First Quarter of the Fiscal Year ending March 31, 2022

August 10, 2021

The following statements are an English translation of the original Japanese document.

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan.)

Name of company… Taikisha Ltd.

Stock Exchange…… First Section of Tokyo Stock Exchange
Code………………	1979
Representative……	Koji Kato, President and Representative Director
Contact……………	Yasushi Nakajima, Director, Executive Corporate Officer, Administrative Management
	Headquarters Chief Executive
TEL………………	(03)5338 - 5051

URL……………… https://www.taikisha.co.jp/
Scheduled date to submit Quarterly report		：	August 13, 2021
Scheduled date to commence dividend payments		：	－
Supplemental materials prepared for financial results	：	None
Briefing session of financial results				：	None
1. Consolidated Operating Performance (April 1, 2021 through June 30, 2021)	(Round down to one million yen)
(1) Consolidated operating results							(% indicates increase ratio over previous year)
	Sales			Operating income	Ordinary income	Profit attributable
			to owners of parent
Three months ended	million yen	%		million yen	%	million yen	%	million yen	%
June 30, 2021	42,050	13.1			1,707	83.1	2,080	109.5	1,272	(14.2)
June 30, 2020	37,188	(19.8)			932	(59.9)	993	(56.9)	1,482	(15.2)

(Note) Comprehensive income	Three months ended June 30, 2021	1,391	million yen	(4.1) %
		Three months ended June 30, 2020	1,450	million yen	973.6 %
	Profit attributable	Profit attributable
	to owners of parent	to owners of parent
		per share	per share (Diluted)
Three months ended		yen	yen
June 30, 2021		37.36	－
June 30, 2020		43.52	－

(2) Consolidated financial position

		Total assets			Net assets		Equity capital ratio
As of			million yen				million yen		%
June 30, 2021			219,695				125,489		54.7
March 31, 2021			228,855				126,311		52.9
(Note) Shareholders' Equity				As of June 30, 2021			120,251 million yen
					As of March 31, 2021			121,033 million yen
2. Dividends
					Dividend per share
	1Q	2Q		3Q	Year End		Total
			(annually)
Year ended		yen	yen		yen	yen			yen
March 31, 2021		－	30.00		－	60.00		90.00
March 31, 2022		－
Year ending March 31,
2022 (Forecast)			30.00		－	70.00		100.00

(Note) Revisions to forecast of dividends : None

3. Consolidated Earnings Forecast for Fiscal Year Ending March 31, 2022 (April 1, 2021 through March 31, 2022)

(% indicates increase ratio over previous year)

	Sales		Operating income	Ordinary income	Profit attributable	Profit attributable
		to owners of parent
		to owners of parent
									per share
	million yen	%	million yen	%	million yen	%	million yen	%	yen
Half year	92,000	12.8	2,300	(27.9)	2,700	(27.3)	1,700	(44.6)	49.89
Full year	218,000	7.6	12,700	8.6	13,500	9.9	8,400	1.5	246.56

(Note) Revisions to forecast of earnings : None

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4. Others

1. Changes in significant subsidiaries during the period

	(Changes in specified subsidiaries accompanying changes in scope of consolidation)	: None
(2)	Adoption of particular accounting treatments for quarterly consolidated financial statements	: None
(3)	Changes in accounting policies, changes in accounting estimates and restatements
	(i)	Changes in accounting policies due to revisions of accounting standards etc.	: Yes
	(ii)	Changes in accounting policies other than (i)	: None
	(iii)	Changes in accounting estimates	: None
	(iv)	Restatements	: None

1. Number of shares issued (common shares)
2. 1. Number of shares issued at the end of period (including treasury shares)

As of June 30, 2021	35,082,009	shares
As of March 31, 2021	35,082,009	shares

1. Number of treasury shares at the end of period

As of June 30, 2021	1,013,831	shares
As of March 31, 2021	1,013,823	shares

1. Average number of shares during the period

Three months ended June 30, 2021	34,068,182	shares
Three months ended June 30, 2020	34,068,436	shares

(Note) The Company has introduced the "Board Benefit Trust (BBT)" as its performance-linked and share-based compensation plan and its own shares remaining in the Trust are included as treasury shares. The number of treasury shares owned by the trust as of June 30, 2021 and as of March 31, 2021 are 136,400 and 136,400, respectively. The average number of treasury shares owned by the trust for three months ended June 30, 2021 and for three months ended June 30, 2020 are 136,400 and 136,400, respectively.

• Notice of status of implementation for quarterly review procedures
  This financial report is not subject to quarterly review procedures by certified public accountants or auditing firms.
• Explanation about the proper use of consolidated forecasts and other notes
  Data and forward-looking statements disclosed herein are based on current information as of today, and may change depending upon various factors. The data and assumptions do not mean guaranteeing accomplishment of goals and projections, and may be changed at any time without notice. Consequently, the Company ask you to use this information at your discretion based upon your own judgment and information you may obtain through other sources. The company will not be liable for any damages that result from the use of this information.

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1 Consolidated Financial Statements

(1) Consolidated Balance Sheets

			Millions of yen
		As of March 31, 2021	As of June 30, 2021
Assets
Current assets
Cash and deposits	52,059	52,808
Notes receivable, accounts receivable from completed construction	101,413	89,405
contracts and other
Securities	2,000	1,500
Costs on uncompleted construction contracts	1,816	1,960
Raw materials and supplies	679	761
Other	8,068	11,889
Allowance for doubtful accounts	(649)	(631)
Total current assets	165,387	157,694
Non-current assets
Property, plant and equipment	10,150	10,601
Intangible assets
Goodwill	4,084	3,983
Customer-related assets	1,389	1,335
Other	2,976	2,936
Total intangible assets	8,450	8,255
Investments and other assets
Investment securities	32,677	31,248
Deferred tax assets	1,026	638
Net defined benefit asset	9,111	9,065
Other	2,100	2,241
Allowance for doubtful accounts	(48)	(50)
Total investments and other assets	44,866	43,143
Total non-current assets	63,468	62,000
Total assets	228,855	219,695
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts and other	52,050	43,521
Short-term loans payable	6,588	9,123
Income taxes payable	1,607	372
Advances received on uncompleted construction contracts	14,200	13,984
Provision for bonuses	－	1,002
Provision for warranties for completed construction	475	502
Provision for loss on construction contracts	403	398
Provision for directors' bonuses	63	－
Other	11,528	8,078
Total current liabilities	86,919	76,983
Non-current liabilities
Long-term loans payable	4,769	6,385
Deferred tax liabilities	8,821	8,786
Provision for directors' retirement benefits	40	43
Provision for share-based remuneration for directors	171	105
Net defined benefit liability	1,507	1,578
Other	315	322
Total non-current liabilities	15,625	17,222
Total liabilities		102,544	94,206

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			Millions of yen
		As of March 31, 2021	As of June 30, 2021
Net assets
Shareholders' equity
Capital stock	6,455	6,455
Capital surplus	5,058	5,058
Retained earnings	95,701	94,943
Treasury shares	(2,594)	(2,594)
Total shareholders' equity	104,620	103,862
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	14,237	13,267
Deferred gains or losses on hedges	(3)	(19)
Foreign currency translation adjustment	(237)	862
Accumulated remeasurements of defined benefit plans	2,416	2,278
Total accumulated other comprehensive income	16,412	16,388
Non-controlling interests	5,277	5,237
Total net assets	126,311	125,489
Total liabilities and net assets		228,855	219,695

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1. Consolidated Income Statements and Consolidated Statements of Comprehensive Income Consolidated Income Statements

			Millions of yen
		Three months ended	Three months ended
		June 30, 2020	June 30, 2021
		Apr. 1, 2020 - Jun. 30, 2020	Apr. 1, 2021 - Jun. 30, 2021
Net sales of completed construction contracts	37,188	42,050
Cost of sales of completed construction contracts	31,640	35,328
Gross profit on completed construction contracts	5,548	6,721
Selling, general and administrative expenses	4,615	5,013
Operating income	932	1,707
Non-operating income
Interest income	79	59
Dividend income	230	245
Real estate rent	25	33
Foreign exchange gains	－	56
Reversal of allowance for doubtful accounts	－	0
Other	28	95
Total non-operating income	363	490
Non-operating expenses
Interest expenses	37	95
Rent expenses on real estates	4	3
Foreign exchange losses	165	－
Provision of allowance for doubtful accounts	0	－
Share of loss of entities accounted for using equity method	64	7
Other	30	12
Total non-operating expenses	303	118
Ordinary income	993	2,080
Extraordinary income
Gain on disposal of non-current assets	594	6
Gain on sale of investment securities	－	288
Total extraordinary income	594	295
Extraordinary losses
Loss on disposal of non-current assets	15	34
Loss on valuation of investment securities	0	－
Total extraordinary losses	15	34
Profit before income taxes	1,571	2,341
Income taxes-current	33	168
Income taxes-deferred	199	885
Total income taxes	232	1,054
Profit	1,339	1,287
Profit (loss) attributable to non-controlling interests	(143)	14
Profit attributable to owners of parent		1,482	1,272

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