Taikisha : Financial Report for the First Quarter of the Fiscal Year ending March 31, 2023

Financial Report for the First Quarter of the Fiscal Year ending March 31, 2023

August 10, 2022

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…… 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 12, 2022

Scheduled date to commence dividend payments

：

－

Supplemental materials prepared for financial results

：

None

Briefing session of financial results

：

None

(Round down to one million yen)

1. Consolidated Operating Performance (April 1, 2022 through June 30, 2022)

(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, 2022

39,811

(5.3)

1,413

(17.3)

1,665

(20.0)

115

(90.9)

June 30, 2021

42,050

13.1

1,707

83.1

2,080

109.5

1,272

(14.2)

(Note) Comprehensive income	Three months ended June 30, 2022	1,542	million yen	10.9 %
		Three months ended June 30, 2021	1,391	million yen	(4.1) %
	Profit attributable	Profit attributable
	to owners of parent	to owners of parent
		per share	per share (Diluted)
Three months ended		yen	yen
June 30, 2022		3.40	－
June 30, 2021		37.36	－

(2) Consolidated financial position

		Total assets	Net assets	Equity capital ratio
As of		million yen	million yen		%
June 30, 2022		201,352	130,792		61.9
March 31, 2022		228,159	130,788		54.7
(Note) Shareholders' Equity	As of June 30, 2022	124,595	million yen
		As of March 31, 2022	124,695	million yen

2. Dividends

			Dividend per share
	1Q	2Q	3Q	Year End	Total
	(annually)
Year ended	yen	yen	yen	yen	yen
March 31, 2022	－	30.00	－	70.00	100.00
March 31, 2023	－
Year ending March 31,
2023 (Forecast)		50.00	－	71.00	121.00

(Note) Revisions to forecast of dividends : None

3. Consolidated Earnings Forecast for Fiscal Year Ending March 31, 2023 (April 1, 2022 through March 31, 2023)

							(% indicates increase ratio over previous year)
							Profit attributable	Profit attributable
	Sales		Operating income	Ordinary income	to owners of parent
		to owners of parent
							per share
	million yen	%	million yen	%	million yen	%	million yen	%	yen
Half year	92,400	(0.0)	3,400	23.0	3,900	9.6	2,400	42.2	70.42
Full year	212,500	1.5	10,800	14.5	12,000	10.9	8,600	18.6	252.36

(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, 2022	35,082,009	shares
As of March 31, 2022	35,082,009	shares

1. Number of treasury shares at the end of period

As of June 30, 2022	998,560	shares
As of March 31, 2022	998,559	shares

1. Average number of shares during the period

Three months ended June 30, 2022	34,083,450	shares
Three months ended June 30, 2021	34,068,182	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, 2022 and as of March 31, 2022 are 120,700 and 120,700, respectively. The average number of treasury shares owned by the trust for three months ended June 30, 2022 and for three months ended June 30, 2021 are 120,700 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, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	49,085	41,882
Notes receivable, accounts receivable from completed construction	104,956	84,704
contracts and other
Securities	3,000	5,900
Costs on uncompleted construction contracts	1,775	1,336
Raw materials and supplies	1,007	1,143
Other	9,084	11,884
Allowance for doubtful accounts	(718)	(496)
Total current assets	168,190	146,354
Non-current assets
Property, plant and equipment	11,243	8,955
Intangible assets
Goodwill	3,966	4,115
Customer-related assets	1,334	1,382
Other	2,081	1,523
Total intangible assets	7,381	7,022
Investments and other assets
Investment securities	29,605	27,700
Deferred tax assets	520	489
Net defined benefit asset	8,909	8,819
Other	2,710	2,444
Allowance for doubtful accounts	(401)	(433)
Total investments and other assets	41,344	39,020
Total non-current assets	59,969	54,998
Total assets	228,159	201,352
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts and other	47,102	39,368
Short-term loans payable	15,535	3,246
Income taxes payable	1,672	334
Advances received on uncompleted construction contracts	6,901	8,437
Provision for bonuses	－	782
Provision for warranties for completed construction	714	658
Provision for loss on construction contracts	392	277
Provision for directors' bonuses	43	－
Other	9,524	7,606
Total current liabilities	81,886	60,711
Non-current liabilities
Long-term loans payable	5,605	80
Deferred tax liabilities	7,877	7,804
Provision for directors' retirement benefits	44	47
Provision for share-based remuneration for directors	145	145
Net defined benefit liability	1,462	1,460
Other	349	310
Total non-current liabilities	15,484	9,848
Total liabilities	97,371	70,560

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			Millions of yen
		As of March 31, 2022	As of June 30, 2022
Net assets
Shareholders' equity
Capital stock	6,455	6,455
Capital surplus	5,058	5,058
Retained earnings	99,893	98,465
Treasury shares	(2,544)	(2,544)
Total shareholders' equity	108,862	107,434
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	11,908	11,201
Deferred gains or losses on hedges	(25)	(9)
Foreign currency translation adjustment	2,017	4,201
Accumulated remeasurements of defined benefit plans	1,932	1,767
Total accumulated other comprehensive income	15,833	17,161
Non-controlling interests	6,092	6,197
Total net assets	130,788	130,792
Total liabilities and net assets		228,159	201,352

―4―

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

			Millions of yen
		Three months ended	Three months ended
		June 30, 2021	June 30, 2022
		Apr. 1, 2021 - Jun. 30, 2021	Apr. 1, 2022 - Jun. 30, 2022
Net sales of completed construction contracts	42,050	39,811
Cost of sales of completed construction contracts	35,328	33,773
Gross profit on completed construction contracts	6,721	6,037
Selling, general and administrative expenses	5,013	4,624
Operating income	1,707	1,413
Non-operating income
Interest income	59	32
Dividend income	245	270
Dividend income of insurance	－	1
Real estate rent	33	30
Foreign exchange gains	56	－
Reversal of allowance for doubtful accounts	0	－
Other	95	41
Total non-operating income	490	377
Non-operating expenses
Interest expenses	95	31
Rent expenses on real estates	3	3
Foreign exchange losses	－	19
Provision of allowance for doubtful accounts	－	7
Share of loss of entities accounted for using equity method	7	55
Other	12	7
Total non-operating expenses	118	125
Ordinary income	2,080	1,665
Extraordinary income
Gain on disposal of non-current assets	6	4
Gain on sale of investment securities	288	630
Gain on sale of shares of subsidiaries and associates	－	881
Total extraordinary income	295	1,516
Extraordinary losses
Loss on disposal of non-current assets	34	0
Business restructuring expenses	－	2,461
Total extraordinary losses	34	2,461
Profit before income taxes	2,341	719
Income taxes-current	168	383
Income taxes-deferred	885	180
Total income taxes	1,054	564
Profit	1,287	155
Profit attributable to non-controlling interests	14	40
Profit attributable to owners of parent	1,272	115

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