Takamiya : Summary of Consolidated Financial Results for Year Ended March 31, 2021

FOR TRANSLATION PURPOSE ONLY

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 Year Ended March 31, 2021

(Based on Japanese GAAP)

Company name:	TAKAMIYA CO., LTD.
Stock exchange listing:	Tokyo (1st section)
Stock code:	2445	URL: https://www.takamiya.co/
Representative:	Representative Director, President and Chairman KAZUMASA TAKAMIYA

Scheduled date of ordinary general meeting of shareholders:	June 24, 2021
Scheduled date to file Securities Report:	June 24, 2021
Scheduled date to commence dividend payments:	June 9, 2021
Preparation of supplementary material on financial results:	Yes

Holding of financial results meeting:	Yes (from the viewpoint of preventing wider spread of the new coronavirus infections, this
	meeting will be held by means of video streaming.)
	(Amounts less than one million yen are rounded down)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)

(1) Consolidated operating results					Percentages indicate year-on-year changes
	Net sales		Operating income	Ordinary income	Profit attributable to
		owners of parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%
Year ended March 31, 2021	38,812	(15.7)	1,586	(57.2)	1,569	(55.7)	857	(63.8)
Year ended March 31, 2020	46,065	9.2	3,703	36.5	3,541	33.0	2,370	44.8

(Note) Comprehensive income		Fiscal year ended March 31, 2021: 871 million yen ((61.5)%)
		Fiscal year ended March 31, 2020: 2,261 million yen (54.4%)
	Earnings per	Diluted earnings	Profit attributable	Ordinary		Profit attributable
	to owners of	income/total		to owners of
	share		per share
		parent/equity	assets			parent
			Yen			Yen		%			%	%
Year ended March 31, 2021			18.41			17.89		4.7			2.7	4.1
Year ended March 31, 2020			52.74			51.28		14.7			6.2	8.0
(Reference) Equity in earnings of affiliates	Fiscal year ended March 31, 2021: - million yen
			Fiscal year ended March 31, 2020: - million yen
(2) Consolidated financial position
	Total assets			Net assets	Capital adequacy ratio	Net assets per share
			Million yen			Million yen		%			Yen
Year ended March 31, 2021			56,454			18,768			32.3		391.96
Year ended March 31, 2020			59,282			18,497			30.5		387.68
(Reference) Shareholders' equity			Fiscal year ended March 31, 2021: 18,253 million yen
			Fiscal year ended March 31, 2020: 18,054 million yen
(3) Consolidated Cash Flows
	Cash flows from		Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities		investing activities	financing activities		at end of period
			Million yen			Million yen	Million yen			Million yen
Year ended March 31, 2021			5,035			(1,382)		(2,873)		7,712
Year ended March 31, 2020			3,771			(3,836)		1,590		6,922
2. Cash dividends
			Annual dividends per share			Total cash	Dividend		Ratio of dividends
										payout ratio		to net assets
end 2Q		end 2Q		end 2Q	end 2Q	end 2Q	dividends
		(consolidated)		(consolidated)
	Yen		Yen		Yen		Yen	Yen	Million yen		%	%
Year ended March 31, 2021	-		6.00		-		8.00	14.00		651		26.5	3.9
Year ended March 31, 2020	-		6.00		-		8.00	14.00		651		76.0	3.6
Year ended March 31, 2022	-		6.00		-		8.00	14.00				65.2
(Forecast)

3. Forecast of consolidated financial results for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating income	Ordinary income	Profit attributable to	Earnings
		owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Six months ending
September 30, 2021	19,700	0.8	400	(63.5)	300	(69.8)	130	(78.1)	2.79
Full year	42,000	8.2	1,800	13.5	1,580	0.7	1,000	16.6	21.47

FOR TRANSLATION PURPOSE ONLY

Notes

1. Changes in significant subsidiaries during the period
   (changes in specified subsidiaries resulting in changes in the scope of consolidation): None
2. Changes in accounting policies, changes in accounting estimates, and restatements
3. • Changes in accounting policies due to revision of accounting standards, etc.: None

1. • Changes in accounting policies other than (1) above: None
     ③ Changes in accounting estimates: None
     ④ Restatement: None
2. Number of shares issued (common stock)

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

As of March 31, 2021	46,577,000 shares	As of March 31, 2020	46,577,000 shares
② Number of treasury shares at the end of the period
As of March 31, 2021	7,020 shares	As of March 31, 2020	7,020 shares
③ Average number of shares during the period
As of March 31, 2021	46,569,980 shares	As of March 31, 2020	44,952,624 shares

(Reference) Summary of Non-Consolidated Financial Results

Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)

(1) Non-consolidated operating results		Percentage figures represent changes from the previous fiscal year.
		Net sales			Operating income		Ordinary income		Profit attributable to
						owners of parent
		Million yen		%			Million yen	%		Million yen		%		Million yen	%
Year ended March 31, 2021		32,576		(14.4)			940	(61.4)	1,207		(51.6)	805	(53.9)
Year ended March 31, 2020		38,061		12.1			2,435	31.6	2,493		17.6	1,746	73.8
		Earnings per		Diluted earnings
		share						per share
				Yen				Yen
Year ended March 31, 2021			17.30				16.81
Year ended March 31, 2020			38.85				37.78
(2) Non-consolidated financial position
		Total assets			Net assets		Capital adequacy ratio		Net assets per share
				Million yen		Million yen				%			Yen
Year ended March 31, 2021			49,392		17,399				34.5			365.95
Year ended March 31, 2020			51,763		17,155				32.6			361.80
(Reference) Shareholders' equity			Fiscal year ended March 31, 2021: 17,042 million yen
				Fiscal year ended March 31, 2020: 16,849 million yen

*The financial statements are not subject to audit by certified public accountants or auditing firms.

*Explanation of the appropriate use of financial forecasts and other special notes (Cautionary Note Regarding Forward-Looking Statements, etc.)

The forward-looking statements, including business forecasts, contained in this document are based on information currently available to the Company and on certain assumptions deemed reasonable, and are not intended as a promise by the Company that they will be achieved. Actual results may differ materially due to a variety of factors. Please refer to "1. Business Results, etc. (4) Outlook for the future" on page 3 of the attached materials for the conditions that form the assumptions for business forecasts and precautions concerning the use of business forecasts.

(How to obtain supplementary explanatory materials for financial results)

Supplementary materials for financial results are scheduled to be posted on the Company's website. (Scheduled to be posted in early June)

(How to obtain information on financial results)

We are planning to distribute a video presentation of our financial results on our website. (Scheduled to be available in early June)

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FOR TRANSLATION PURPOSE ONLY
Table of contents of attached documents
Summary of Business Results ........................... .............................. .............................. ..............................	2
(1)	Summary of Business Results for the Fiscal Year ........................... .............................. .............................. ..................	2
(2)	Summary of Financial Position for the Fiscal Year ........................... .............................. .............................. ..................	2
(3)	Summary of cash flows for the fiscal year ........................ .............................. .............................. ......	2
(4)	Future Outlook ........................... .............................. .............................. ..............................	3
Basic approach to the selection of accounting standards ........................ .............................. .............................. ...	3
Consolidated Financial Statements and Major Notes ........................ .............................. .............................. .....................	4
(1)	Consolidated Balance Sheet ........................... .............................. .............................. ...........................	4
(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive
		6
Income ........................ .............................. ...........................
	Consolidated Statements of Income ........................... .............................. .............................. ...........................	6
	Consolidated Statements of Comprehensive
		7
	Income ........................... .............................. .............................. .....................
(3)	Consolidated Statement of Changes in Net Assets ........................ .............................. .............................. ...............	8
(4)	Consolidated Statements of Cash Flows ........................ .............................. .............................. .........	10
(5)	Notes to Consolidated Financial Statements ........................ .............................. .............................. .........	12
	(Notes on Going Concern Assumption) ........................ .............................. .............................. .........	12
	(Segment Information) ........................... .............................. .............................. ........................	12
	(Per share information) ........................... .............................. .............................. ........................	14
	(Significant subsequent events) ........................... .............................. .............................. ........................	14

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FOR TRANSLATION PURPOSE ONLY

1. Summary of Business Results, etc.

(1) Overview of business results for the current fiscal year

The global economy during the current consolidated fiscal year started off in a severe situation due to the spread of the new coronavirus infection. Although the situation and responses in each country varied, some economic activities resumed and it was expected that the economy would move toward a gradual recovery. However, economic activities have been restricted again due to the reemergence of new coronavirus infections, including mutated strains, and the situation remains severe.

In the domestic construction industry, in which our group is involved, although public works remained strong, some private construction sites were deeply affected by the suspension, delay, and postponement of construction starts through the second half of the year. Overseas, in the Philippines, where our sales subsidiary is located, the government has frequently imposed restrictions on people leaving their homes and moving around, and the outlook remains uncertain and difficult.

In this environment, the Group has been working on the following four measures under the medium-term management plan ending in the fiscal year ended March 31, 2021, with the management vision of "Create new value through transformation and aim to become a corporate group that drives qualitative development of the industry", and putting its effo": strengthening the management base, innovating the earnings base, accelerating overseas expansion, and creating new growth businesses. We have been working on the following four measures.

As a result, for the current consolidated fiscal year, net sales were 38,812,092 thousand yen (down 15.7% year-on-year), operating income was 1,586,458 thousand yen (down 57.2% year-on-year), ordinary income was 1,569,601 thousand yen (down 55.7% year-on-year), and Profit attributable to owners of parent was 857,528 thousand yen (down 63.8% year-on-year).

Operating results by segment are as follows. (Sales business)

Interest in next-generation scaffolding remained high, and inquiries for both new and ongoing projects were strong. However, uncertainty about the future has put downward pressure on corporate sentiment, and customers have been holding off on making final purchasing decisions.

As a result, net sales were 11,990,202 thousand yen (down 21.6% year on year), and operating income was 1,404,920 thousand yen (down 27.4% year on year).

(Rental Business)

Shipment of temporary equipment decreased due to interruptions and delays in construction and postponement of construction starts. On the earnings front, the segment profit margin declined due to an increase in equipment maintenance fees as a result of the return of temporary equipment following the completion of large-scale construction sites, and an increase in transportation costs for moving temporary equipment following the relocation of the Center.

As a result, net sales were 24,009,482 thousand yen (down 8.1% year-on-year) and operating income was 1,793,272 thousand yen (down 40.7% year-on-year).

(Overseas Business)

(Philippines), a sales subsidiary, experienced a significant decrease in sales due to restrictions on business activities imposed in the first half of the current fiscal year due to the restrictions on travel and movement in Metro Manila. (Philippines) saw a significant decrease in sales due to restrictions on business activities imposed in the first half of the current consolidated fiscal year due to the curfews and restrictions on movement in the Manila metropolitan area. At manufacturing subsidiaries Hory Korea (Korea) and Hory Vietnam (Vietnam), there was no significant impact on the procurement of raw materials and parts, and manufacturing and sales of temporary equipment for the Japanese market were steady.

As a result, net sales were 5,300,447 thousand yen (down 27.5% year on year) and operating loss was 99,772 thousand yen (compared to operating income of 410,481 thousand yen in the same period of the previous fiscal year).

(2) Summary of financial position for the current fiscal year

Total assets at the end of the current consolidated fiscal year were 56,454,848 thousand yen, a decrease of 2,827,689 thousand yen compared to the end of the previous consolidated fiscal year. This was mainly due to a decrease of 2,425,996 thousand yen in notes and accounts receivable - trade.

Total liabilities amounted to 37,685,969 thousand yen, a decrease of 3,098,762 thousand yen from the end of the previous consolidated fiscal year. This was mainly due to a decrease in notes and accounts payable - trade of 758,541 thousand yen, a decrease in short-term loans payable of 1,922,040 thousand yen, and a decrease in income taxes payable of 412,761 thousand yen.

Total net assets amounted to 18,768,878 thousand yen, an increase of 271,072 thousand yen from the end of the previous fiscal year. This was mainly due to an increase in retained earnings of 205,548 thousand yen.

(3) Summary of cash flows for the current fiscal year

Cash and cash equivalents at the end of the current fiscal year increased by 789,784 thousand yen compared to the end of the previous fiscal year to 7,712,422 thousand yen (up 11.4% year on year), mainly due to an increase in income before income taxes and minority interests.

The status of each cash flow and their factors during the current consolidated fiscal year are as follows. Net cash provided by (used in) operating activities

Net cash provided by operating activities totaled 5,035,416 thousand yen (3,771,941 thousand yen in the previous fiscal year). This was mainly due to income before income taxes and minority interests of 1,458,518 thousand yen, depreciation and amortization of 4,815,929 thousand yen, and a decrease in notes and accounts receivable-trade of 2,546.411 thousand yen, which offset expenditures of 909,651 thousand yen for the acquisition of rental assets, an increase in inventories of 1,596,657 thousand yen, and a decrease in notes and accounts payable-trade of 800,724 thousand yen, (2) Changes in accounting policies, changes in accounting estimates and restatements

2

FOR TRANSLATION PURPOSE ONLY

(Net cash provided by (used in) investing activities)

Net cash used in investing activities was 1,382,642 thousand yen (compared to 3,836,821 thousand yen used in the previous consolidated fiscal year). This was mainly due to expenditures of 1,209,040 thousand yen for the acquisition of tangible fixed assets. (Net cash provided by (used in) financing activities)

Net cash used in financing activities was 2,873,810 thousand yen (compared to 1,590,981 thousand yen provided in the previous fiscal year). The main factors were a decrease in short-term loans payable of 1,992,350 thousand yen, repayment of long-term loans payable of 5,831,283 thousand yen, and cash dividends paid of 651,979 thousand yen, despite proceeds from long-term loans payable of 5,820,000 thousand yen.

(4) Outlook for the future

As for the outlook for the future, the outlook for the global economy is expected to remain uncertain due to the impact of the spread of the new coronavirus infection, and this is expected to continue to affect business results.

(Sales business, rental business)

During the fiscal year ended March 31, 2022, following the declaration of the state of emergency in April 2020, construction work in urban areas was temporarily suspended, and plans for large-scale repair and maintenance work on condominiums were postponed, which had a strong impact on the private construction sector through the second half of the fiscal year. Although we expect this situation to continue to a certain extent through the first half of the fiscal year ending March 31, 2022, we expect orders for planned construction projects in urban areas to resume in the second half of the fiscal year, including the construction of new large-scale logistics warehouses and the resumption of maintenance and repair work on buildings and condominiums. In anticipation of a recovery in demand in the second half of the fiscal year, we expect sales demand to be high from the second half of the second quarter and rental demand to increase in the third quarter, as is the trend in previous years. In the third quarter, we expect rental demand to increase, as is the trend in previous years. In addition, demand for solar power generation panel mounts, which the Group is working on in fields other than temporary equipment-related fields, especially environment-related fields, will be revitalized by the promotion of the government's renewable energy policy, and in the agriculture business, demand for the high-performance agricultural greenhouses that we supply will increase as major companies are working on advanced agriculture using IT technology. In the agribusiness, major companies are working on advanced agriculture using information technology, and we believe that demand for our high-performance agricultural greenhouses will increase. In addition, the government's DX (Digital Transformation) in construction is expected to increase demand for 3D drawing data and spatial measurement, and we believe that this will be a great business opportunity for our group, which has been actively involved in these activities. In order to capture this demand, we will continue to review and develop services that meet customer needs more quickly and increase customer satisfaction.

(Overseas Business)

At our subsidiary in the Philippines, where the impact of the new coronavirus infection is expected to continue, the restrictions on going out in urban areas have not been lifted and business activities are restricted, and we expect the situation to remain as severe as in the current fiscal year. The South Korean subsidiary is expected to see construction investment in South Korea and economic recovery in neighboring countries to which it exports, but a dramatic recovery is not expected and the situation is expected to remain flat. As our subsidiary in Vietnam mainly manufactures products for the Japanese domestic market, we expect a gradual upturn along with the recovery of the sales business in Japan. In our overseas business in general, we will aim for further growth by reexamining and improving our management system and promoting alliance measures, with an eye on After Corona.

In addition to the above, since the products supplied by the Group are mainly steel products, a rise in manufacturing costs due to a sharp rise in global steel prices is unavoidable. In order to stabilize the profit margin, we will review our purchasing system, diversify our suppliers, and develop an optimal production system.

In addition, we have formulated a new medium-term management plan, the "2021 Medium-Term Management Plan," which begins in the next fiscal year and ends in the fiscal year ending March 2024. In addition, the Group will promote the development of new products and services and complete the transformation of its business model by firmly grasping apparent and latent customer demand.

As a result of these activities, for the full fiscal year ending March 31, 2022, we expect consolidated net sales of 42,000,000,000 yen, operating income of 1,800,000,000 yen, ordinary income of 1,580,000,000 yen, and net income attributable to shareholders of the parent company of 1,000,000,000 yen.

2. Basic approach to the selection of accounting standards

For the time being, the Group's policy is to prepare its consolidated financial statements in accordance with Japanese GAAP, taking into consideration the comparability of consolidated financial statements from period to period and from company to company.

Regarding the application of international accounting standards, the Company intends to respond appropriately in consideration of various domestic and international circumstances.

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