Warabeya Nichiyo : Summary of Consolidated Financial Results for the Nine Months Ended November 30, 2021

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 Nine Months Ended November 30, 2021 (Based on Japanese GAAP)

				January 11, 2022
Company name:	WARABEYA NICHIYO HOLDINGS CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	2918	URL https://www.warabeya.co.jp/ja/index.html
Representative:	Representative Director, President	Hiroyuki Otomo
Inquiries:	Director, Managing Executive Officer	Naoshi Asano	TEL [phone]
Scheduled date to file Quarterly Securities Report:	January 12, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended November 30, 2021 (from March 1, 2021 to November 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	%
Nine months ended November 30, 2021	144,703	(1.1)	4,292	45.6	5,057	52.6	3,228	282.7
Nine months ended November 30, 2020	146,317	(9.6)	2,948	(0.5)	3,313	7.5	843	(32.7)

(Note) Comprehensive income:	Nine months ended November 30, 2021: ¥3,898 million [352.6%]
	Nine months ended November 30, 2020: ¥861 million [(27.7)%]
		Earnings per share	Diluted earnings per share
			Yen			Yen
Nine months ended November 30, 2021		184.96			-
Nine months ended November 30, 2020		48.22			-
(2) Consolidated financial position
		Total assets		Net assets	Equity ratio
		Millions of yen	Millions of yen		%
As of November 30, 2021		83,368		47,556		56.7
As of February 28, 2021		82,273		44,372		53.7
(Reference) Equity capital:	As of November 30, 2021: ¥47,252 million
	As of February 28, 2021: ¥44,164 million
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 February 28, 2021	-		0.00		-	40.00	40.00
Year ending February 28, 2022	-		0.00		-
Year ending February 28, 2022 (Forecast)						50.00	50.00

(Note) Revisions to the most recently announced dividends forecasts: Yes

For details regarding the revision to dividends forecasts, please see "Notice Regarding Revision to Dividends Forecasts (Increase) and Abolishment of Shareholder Benefit Plan" announced on January 11, 2022.

3. Forecast of consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 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	192,000	(1.2)	4,500	35.1	5,300	42.8	3,200	368.7	183.28

(Note) Revisions to the most recently announced financial forecasts: None 1

• Notes
• 1. Changes in significant subsidiaries during the nine months ended November 30, 2021
     (changes in specified subsidiaries resulting in the change in scope of consolidation): Newly consolidated: 1 company (Company name: Warabeya Nichiyo Foods Co., Ltd.)
     Excluded: -
  2. Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes

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:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	Yes
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 November 30, 2021	17,625,660	shares	As of February 28, 2021	17,625,660	shares
Number of treasury shares at the end of the period
	As of November 30, 2021	161,323	shares	As of February 28, 2021	172,298	shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)

Nine months ended November 30, 2021

17,457,458 shares Nine months ended November 30, 2020

17,499,818 shares

(Note) The Company has established a BIP Trust. Shares of the Company held by the trust are included in treasury shares.

• This financial summary document is outside the scope of quarterly review conducted by certified public accountants or an audit corporation.
• Explanation of appropriate use of forecasts of financial results, and other important items: (Caution regarding forward-looking statements and others)
  Financial forecasts and other forward-looking statements in this document are based on information available at the time of preparation and on certain assumptions that are deemed to be reasonable. These forward-looking statements are not guarantees of future performance and actual results may differ materially from these forecasts due to a variety of reasons.

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Quarterly consolidated financial statements

(1) Consolidated balance sheets

			(Millions of Yen)
		As of February 28, 2021	As of November 30, 2021
Assets
Current assets
Cash and deposits	8,946	9,269
Notes and accounts receivable - trade	16,101	17,044
Merchandise and finished goods	1,975	1,479
Raw materials and supplies	901	1,277
Other	1,508	1,441
Allowance for doubtful accounts	(0)	(24)
Total current assets	29,433	30,488
Non-current assets
Property, plant and equipment
Buildings and structures	56,157	54,959
Accumulated depreciation	(33,304)	(32,457)
Buildings and structures, net	22,852	22,502
Machinery, equipment and vehicles	18,497	18,865
Accumulated depreciation	(15,080)	(15,073)
Machinery, equipment and vehicles, net	3,417	3,791
Land	11,890	11,891
Construction in progress	38	280
Other	14,821	13,167
Accumulated depreciation	(8,542)	(7,436)
Other, net	6,278	5,731
Total property, plant and equipment	44,477	44,197
Intangible assets
Goodwill	153	94
Other	523	401
Total intangible assets	677	496
Investments and other assets
Other	7,852	8,308
Allowance for doubtful accounts	(166)	(122)
Total investments and other assets	7,685	8,186
Total non-current assets	52,840	52,879
Total assets	82,273	83,368

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			(Millions of Yen)
		As of February 28, 2021	As of November 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	9,195	10,186
Current portion of long-term borrowings	607	624
Accounts payable - other	8,251	6,845
Income taxes payable	812	617
Provision for bonuses	1,252	1,856
Provision for bonuses for directors (and other officers)	-	97
Other	3,419	2,660
Total current liabilities	23,539	22,887
Non-current liabilities
Long-term borrowings	2,806	2,134
Lease obligations	5,640	4,947
Retirement benefit liability	4,148	3,951
Provision for Directors stock-based rewards	179	176
Asset retirement obligations	1,411	1,414
Other	176	299
Total non-current liabilities	14,361	12,923
Total liabilities	37,900	35,811
Net assets
Shareholders' equity
Share capital	8,049	8,049
Capital surplus	8,100	8,100
Retained earnings	28,693	31,217
Treasury shares	(367)	(334)
Total shareholders' equity	44,475	47,032
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	116	144
Deferred gains or losses on hedges	1	0
Foreign currency translation adjustment	(262)	201
Remeasurements of defined benefit plans	(166)	(125)
Total accumulated other comprehensive income	(311)	220
Non-controlling interests	208	304
Total net assets	44,372	47,556
Total liabilities and net assets	82,273	83,368

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1. Consolidated statements of income and comprehensive income Consolidated statements of income

			(Millions of Yen)
		Nine months ended	Nine months ended
		November 30, 2020	November 30, 2021
Net sales	146,317	144,703
Cost of sales	122,472	119,592
Gross profit	23,845	25,110
Selling, general and administrative expenses	20,897	20,818
Operating profit	2,948	4,292
Non-operating income
Interest income	6	4
Dividend income	310	279
Rental income	132	149
Insurance claim income	27	54
Gain on forgiveness of debts	-	317
Share of profit of entities accounted for using equity method	91	105
Other	54	128
Total non-operating income	622	1,038
Non-operating expenses
Interest expenses	79	66
Loss on retirement of non-current assets	20	32
Rental costs	96	119
Other	61	55
Total non-operating expenses	257	274
Ordinary profit	3,313	5,057
Extraordinary income
Gain on sales of non-current assets	61	-
Total extraordinary income	61	-
Extraordinary losses
Impairment loss	1,276	297
Total extraordinary losses	1,276	297
Profit before income taxes	2,098	4,759
Income taxes - current	1,349	1,237
Income taxes - deferred	(165)	180
Total income taxes	1,184	1,418
Profit	914	3,341
Profit attributable to non-controlling interests	70	112
Profit attributable to owners of parent	843	3,228

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