Avantia : Summary of Consolidated Financial Results for the Year Ended August 31, 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 Year Ended August 31, 2021
		(Based on Japanese GAAP)
				October 11, 2021
Company name:	AVANTIA CO.,LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:	8904	URL https://avantia-g.co.jp/
Representative:	Representative Director	Yasunari Sawada
President
Inquiries:	Senior Managing Director	Takuya Miyazaki	TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	November 24, 2021
Scheduled date to file Securities Report:	November 25, 2021
Scheduled date to commence dividend payments:	November 8, 2021
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:	Yes

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended August 31, 2021 (from September 1, 2020 to August 31, 2021)

(1) Consolidated operating results												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		%
Year ended August 31, 2021	45,327		11.6	1,740		50.2		1,937	45.6		1,352		56.9
Year ended August 31, 2020	40,626		5.6	1,159		(22.4)		1,330	(22.9)			862		(31.1)
	Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			share			owners of				assets			sales
							parent/equity
		Yen			Yen			%						%				%
Year ended August 31, 2021		95.09			-			5.4						4.0				3.8
Year ended August 31, 2020		59.42			-			3.5						3.1				2.9
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio	Net assets per share
	Millions of yen	Millions of yen					%						Yen
As of August 31, 2021		53,466					25,585					47.9				1,797.33
As of August 31, 2020		44,655					24,726					55.4				1,740.64
(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
	Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended August 31, 2021				532					(496)					(1,301)					12,832
Year ended August 31, 2020				1,768					84					1,289						14,097
2. Cash dividends
					Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
															to net assets
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
	Yen				Yen	Yen		Yen	Yen	Millions of yen		%			%
Year ended August 31, 2020	-			19.00	-		19.00	38.00		547		64.0			2.2
Year ended August 31, 2021	-			19.00	-		19.00	38.00		540		40.0			2.1
Year ending August 31, 2022	-			19.00	-				19.00	38.00				36.1
(Forecast)

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

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Six months ending

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

25,000

41.3

140

(52.1)

220

(39.7)

105

(54.3)

7.38

February 28, 2022

Full year

60,000

32.4

2,000

14.9

2,200

13.5

1,500

10.9

105.37

4. Notes

(1) Changes in significant subsidiaries during the year ended August 31, 2021

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) 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:

No

Restatement of prior period financial statements:

No

(3) Number of issued shares (common shares)

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

As of August 31, 2021

14,884,300 shares

As of August 31, 2020

14,884,300 shares

Number of treasury shares at the end of the period

As of August 31, 2021

649,155 shares

As of August 31, 2020

679,055 shares

Average number of shares during the period

Year ended August 31, 2021

14,225,724 shares

Year ended August 31, 2020

14,513,091 shares

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Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of August 31, 2020	As of August 31, 2021
Assets
Current assets
Cash and deposits	14,141,167	12,881,771
Notes receivable, accounts receivable from completed	2,036,136	1,313,202
construction contracts and other
Real estate for sale	8,045,535	6,008,205
Costs on development business and other	13,612,366	22,974,924
Costs on construction contracts in progress	1,780,559	2,464,850
Raw materials and supplies	13,690	17,944
Other	660,822	625,381
Allowance for doubtful accounts	(1,310)	(1,597)
Total current assets	40,288,968	46,284,682
Non-current assets
Property, plant and equipment
Buildings and structures	2,403,581	3,741,529
Accumulated depreciation	(977,372)	(1,360,440)
Buildings and structures, net	1,426,209	2,381,089
Vehicles	113,906	128,635
Accumulated depreciation	(65,174)	(98,991)
Vehicles, net	48,731	29,644
Land	1,216,261	2,533,380
Other	467,670	541,096
Accumulated depreciation	(326,376)	(392,254)
Other, net	141,293	148,841
Total property, plant and equipment	2,832,496	5,092,955
Intangible assets
Goodwill	99,665	563,414
Software	65,203	72,955
Other	26,623	26,421
Total intangible assets	191,492	662,791
Investments and other assets
Investment securities	627,957	561,210
Deferred tax assets	244,224	249,604
Retirement benefit asset	12,556	14,680
Other	458,981	601,030
Allowance for doubtful accounts	(955)	-
Total investments and other assets	1,342,764	1,426,526
Total non-current assets	4,366,753	7,182,273
Total assets		44,655,721	53,466,956

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			(Thousands of yen)
		As of August 31, 2020	As of August 31, 2021
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts	3,422,802	2,194,225
and other
Short-term borrowings	7,878,950	12,530,780
Current portion of long-term borrowings	342,090	1,269,855
Income taxes payable	520,007	345,932
Advances received on construction contracts in progress	485,534	3,615,221
Provision for bonuses	133,625	129,271
Provision for warranties for completed construction	17,841	30,614
Other	1,120,569	1,150,455
Total current liabilities	13,921,420	21,266,355
Non-current liabilities
Long-term borrowings	5,276,987	5,897,960
Deferred tax liabilities	-	4,001
Retirement benefit liability	250,379	253,542
Other	480,740	459,909
Total non-current liabilities	6,008,106	6,615,413
Total liabilities	19,929,527	27,881,769
Net assets
Shareholders' equity
Share capital	3,732,673	3,732,673
Capital surplus	2,982,029	2,980,013
Retained earnings	18,590,865	19,403,285
Treasury shares	(629,792)	(602,061)
Total shareholders' equity	24,675,776	25,513,910
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	50,417	71,276
Total accumulated other comprehensive income	50,417	71,276
Total net assets	24,726,194	25,585,186
Total liabilities and net assets		44,655,721	53,466,956

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		August 31, 2020	August 31, 2021
Net sales	40,626,638	45,327,930
Cost of sales	34,653,999	38,243,322
Gross profit	5,972,638	7,084,608
Selling, general and administrative expenses
Remuneration for directors (and other officers)	277,950	297,493
Employees' salaries and allowances	1,773,235	2,025,879
Provision for bonuses	80,084	64,333
Retirement benefit expenses	32,575	33,817
Provision for retirement benefits for directors (and other	5,021	-
officers)
Advertising expenses	547,943	599,707
Taxes and dues	433,708	424,325
Provision of allowance for doubtful accounts	-	219
Other	1,663,025	1,898,416
Total selling, general and administrative expenses	4,813,543	5,344,193
Operating profit	1,159,095	1,740,415
Non-operating income
Interest income	3,148	1,287
Dividend income	7,577	7,471
Administrative service fee income	37,623	42,924
RefundedRealEstateAcquisitionTax	96,868	110,773
Miscellaneous income	137,682	192,374
Total non-operating income	282,900	354,830
Non-operating expenses
Interest expenses	88,269	119,697
Miscellaneous losses	22,994	37,679
Total non-operating expenses	111,264	157,376
Ordinary profit	1,330,731	1,937,869
Extraordinary income
Gain on sale of non-current assets	32,887	7,341
Gain on reversal of asset retirement obligations	-	3,375
Other	-	46
Total extraordinary income	32,887	10,763
Extraordinary losses
Loss on sale of non-current assets	10	-
Loss on retirement of non-current assets	11,190	43,347
Other	-	453
Total extraordinary losses	11,201	43,800
Profit before income taxes		1,352,417	1,904,831

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