〔Delayed〕Summary of Consolidated Financial Results for the Six Months Ended September 30,2021(Based on Japanese GAAP)

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 Six Months Ended September 30, 2021 (Based on Japanese GAAP)

					November 11, 2021
Company name:	TOYO CONSTRUCTION CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	1890	URL https://www.toyo-const.co.jp/
Representative:	Representative Director, President	Kyoji Takezawa
	Executive Officer General Manager,
Inquiries:	Administration Dept.	Mamoru Sato	TEL [phone]
	Business Administration Div.
Scheduled date to file Quarterly Securities Report:	November 11, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)
(1) Consolidated operating results (cumulative)					Percentages indicate year-on-year changes
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen	%
Six months ended September 30, 2021	73,895		(2.6)	3,087	(23.7)	3,026		(19.6)	1,861	(21.1)
Six months ended September 30, 2020	75,853		(12.2)	4,044	(16.7)	3,766		(20.8)	2,358	(22.5)
	Earnings per share		Diluted earnings per share
			Yen			Yen
Six months ended September 30, 2021			19.81			-
Six months ended September 30, 2020			25.09			-
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio		Net assets per share
	Millions of yen		Millions of yen				%		Yen
As of September 30, 2021	129,516			65,712				49.4		680.55
As of March 31, 2021	148,953			65,875				43.1		684.14

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 March 31, 2021	-	-	-	25.00	25.00
Year ending March 31, 2022	-	-
Year ending March 31, 2022 (Forecast)			-	20.00	20.00

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

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	170,000	(1.7)	9,200	(35.5)	9,100	(35.5)	6,000	(34.6)	63.85

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4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(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:	No
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 September 30, 2021	94,371,183	shares	As of March 31, 2021	94,371,183	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	389,301	shares	As of March 31, 2021	429,978	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2021	93,966,655	shares	Six months ended September 30, 2020	93,994,053	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	16,770	24,620
Notes receivable, accounts receivable from completed	70,177	53,715
construction contracts and other
Costs on construction contracts in progress	2,763	2,621
Advances paid	5,757	4,768
other account receivable	10,296	949
Other	3,265	3,295
Allowance for doubtful accounts	(12)	(9)
Total current assets	109,018	89,963
Non-current assets
Property, plant and equipment
Buildings and structures	13,331	13,341
Machinery, vehicles, tools, furniture and fixtures	25,611	25,703
Land	21,592	21,596
Construction in progress	99	108
Accumulated depreciation	(28,300)	(28,907)
Total property, plant and equipment	32,334	31,841
Intangible assets	515	808
Investments and other assets
Investment securities	2,561	2,584
Deferred tax assets	2,971	2,547
Retirement benefit asset	190	201
Other	1,474	1,697
Allowance for doubtful accounts	(114)	(128)
Total investments and other assets	7,084	6,903
Total non-current assets	39,934	39,553
Total assets		148,953	129,516

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			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts	32,226	30,290
and other
Short-term borrowings	7,841	2,694
Income taxes payable	3,275	791
Advances received on construction contracts in progress	13,126	7,945
Deposits received	2,754	1,602
Accrued consumption taxes	9,150	6,976
Provision for warranties for completed construction	445	439
Provision for loss on construction contracts	147	170
Provision for bonuses	1,011	1,015
Other	1,554	1,058
Total current liabilities	71,532	52,986
Non-current liabilities
Long-term borrowings	2,752	2,346
Deferred tax liabilities	127	132
Deferred tax liabilities for land revaluation	2,207	2,207
Other provisions	85	102
Retirement benefit liability	5,807	5,477
Other	564	553
Total non-current liabilities	11,544	10,818
Total liabilities	83,077	63,804
Net assets
Shareholders' equity
Share capital	14,049	14,049
Capital surplus	6,057	6,057
Retained earnings	41,419	40,928
Treasury shares	(178)	(160)
Total shareholders' equity	61,348	60,874
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	538	569
Revaluation reserve for land	3,071	3,071
Foreign currency translation adjustment	(19)	11
Remeasurements of defined benefit plans	(670)	(567)
Total accumulated other comprehensive income	2,920	3,085
Non-controlling interests	1,606	1,752
Total net assets	65,875	65,712
Total liabilities and net assets		148,953	129,516

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		September 30, 2020	September 30, 2021
Net sales
Net sales of completed construction contracts	75,511	73,548
Net sales in sideline businesses	342	346
Total net sales	75,853	73,895
Cost of sales
Cost of sales of completed construction contracts	67,399	65,997
Cost of sales in sideline businesses	122	157
Total cost of sales	67,522	66,155
Gross profit
Gross profit on completed construction contracts	8,111	7,551
Gross profit on sideline business	220	189
Total gross profit	8,331	7,740
Selling, general and administrative expenses	4,287	4,653
Operating profit	4,044	3,087
Non-operating income
Interest income	11	5
Dividend income	22	24
Foreign exchange gains	13	22
Other	40	13
Total non-operating income	87	66
Non-operating expenses
Interest expenses	75	60
Commitment fees	242	21
Other	47	44
Total non-operating expenses	365	126
Ordinary profit	3,766	3,026
Extraordinary income
Surrender value of insurance policies	-	14
Gain on sale of investment securities	-	9
Gain on sale of non-current assets	30	7
Total extraordinary income	30	30
Extraordinary losses
Provision of allowance for doubtful accounts	4	13
Loss on retirement of non-current assets	5	5
Loss on sale of investment securities	96	0
Other	4	-
Total extraordinary losses	112	18
Profit before income taxes	3,684	3,038
Income taxes - current	1,085	701
Income taxes - deferred	149	365
Total income taxes	1,235	1,066
Profit	2,449	1,971
Profit attributable to non-controlling interests	90	110
Profit attributable to owners of parent		2,358	1,861

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