Business Engineering : Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2021

Notice: This document is an excerpt translation of the original Japanese document and is for reference purposes only. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2021

[Japanese GAAP]

May 13, 2021

Company name: Business Engineering Corporation

Stock exchange listing: Tokyo Stock Exchange, First Section

Code number: 4828

URL: https://www.b-en-g.co.jp/

Representative: Masakazu Haneda, President & CEO

Contact: Shigeaki Betsunou, Managing Director and Division General Manager, Corporate Administration & Planning Div.

Phone: [phone]

Scheduled date of the Annual General Meeting of Shareholders: June 25, 2021

Scheduled date of commencing dividend payments: June 28, 2021

Scheduled date of filing securities report: June 28, 2021

Availability of supplementary briefing materials on financial results: Available

Schedule of financial results briefing session: Scheduled (for securities analysts)

(Amounts of 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		(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
	Fiscal year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	March 31, 2021	17,855	0.7	2,032	29.2	2,025	28.3	1,378	61.6
	March 31, 2020	17,728	16.2	1,573	30.1	1,577	31.3	853	6.0

(Note) Comprehensive income: Fiscal year ended March 31, 2021: ¥1,518 million [72.3%] Fiscal year ended March 31, 2020: ¥881 million [16.8%]

	Basic earnings	Diluted earnings	Rate of return	Ordinary profit to	Operating profit
	per share	per share	on equity	total assets ratio	to net sales ratio
Fiscal year ended	Yen	Yen	%	%	%
March 31, 2021	233.10	-	24.1	21.2	11.4
March 31, 2020	145.17	-	18.1	18.9	8.9

(Reference) Investment profit (loss) on equity method: Fiscal year ended March 31, 2021: ¥- million Fiscal year ended March 31, 2020: ¥- million

(2) Consolidated Financial Position

				Total assets		Net assets		Equity ratio	Net assets per share
				Million yen	Million yen		%		%
	As of March 31, 2021		10,476		6,398		61.1		1,076.50
	As of March 31, 2020		8,593		5,033		58.6		853.77
	(Reference) Equity: As of March 31, 2021: ¥6,398 million
	As of March 31, 2020: ¥5,033 million
(3) Status of Consolidated Cash Flows
			Cash flows from			Cash flows from			Cash flows from		Cash and cash
								equivalents at end of
			operating activities		investing activities		financing activities
						period
	Fiscal year ended			Million yen			Million yen			Million yen		Million yen
	March 31, 2021		2,539			(817)		196		4,078
	March 31, 2020		2,088			(773)		(416)		2,159

2. Dividends
			Annual dividends							Ratio of
								Total	Payout	dividends
		1st	2nd	3rd			amount of	ratio		to
		Year-end	Total		dividends	(Consoli-	net assets
		quarter-endquarter-endquarter-end		(Annual)	dated)	(Consoli-
												dated)
		Yen	Yen	Yen	Yen	Yen		Million	%	%
			yen
	Fiscal year ended
	-	19.00	-	26.00	45.00	266	31.0	5.6
	March 31, 2020
	Fiscal year ended	-	22.00	-	48.00	70.00	418	30.0	7.3
	March 31, 2021
	Fiscal year ending	-	35.00	-	35.00	70.00				29.9
	March 31, 2022
	(Forecast)

(Note) The total amount of dividends includes the following dividends of the Company's shares held by the Employee Stock Ownership Plan Trust.

Fiscal year ended March 31, 2020: ¥1 million

Fiscal year ended March 31, 2021: ¥2 million

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(% represent changes from the previous fiscal year for full year, and on a year-on-year basis for quarterly results)

	Net sales		Operating profit	Ordinary profit	Profit attributable	Basic earnings
		to owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
First half	8,400	(6.7)	1,000	(12.5)	1,000	(13.0)	670	(11.9)	112.39
Full year	17,900	1.0	2,100	10.1	2,100	10.6	1,400	8.4	234.19

(Note) From the beginning of the fiscal year ending March 31, 2022, the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc., will be applied and the consolidated financial results forecast above indicates amounts after application of said Accounting Standard, etc. Changes from the previous fiscal year and changes on a year-on-year basis indicate the rate of increase or decrease calculated with the retrospective application of said Accounting Standard, etc. for the fiscal year ended March 31, 2021.

* Notes:

(1) Changes in significant subsidiaries during the fiscal year ended March 31, 2021: No (Changes in specified subsidiaries resulting in changes in scope of consolidation)

New subsidiaries: -

Excluded subsidiaries: -

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No

1. Total number of issued shares (common shares)
2. 1. Total number of issued shares at the end of the period (including treasury shares): March 31, 2021: 6,000,000 shares
      March 31, 2020: 6,000,000 shares
   2. Total number of treasury shares at the end of the period:

March 31, 2021: 56,443 shares

March 31, 2020: 104,690 shares

3) Average number of shares during the period:

Fiscal year ended March 31, 2021: 5,915,963 shares

Fiscal year ended March 31, 2020: 5,877,192 shares

(Note) "Total number of treasury shares at the end of the period" and "Average number of shares during the period" are calculated by including the Company's shares held by the Employee Stock Ownership Plan Trust in the treasury shares that are deductible.

(Reference) Overview of Non-consolidated Financial Results

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

(1) Non-consolidated Operating Results			(% indicates changes from the previous corresponding period.)
			Net sales			Operating profit		Ordinary profit		Profit
	Fiscal year ended		Million yen	%		Million yen	%		Million yen	%		Million yen	%
	March 31, 2021		17,475	1.2		1,767	26.0		1,719	22.2		1,179	64.8
	March 31, 2020		17,264	15.6		1,402	28.3		1,407	29.6		715	5.2
			Basic earnings		Diluted earnings
			per share			per share
	Fiscal year ended			Yen			Yen
	March 31, 2021		199.33			-
	March 31, 2020		121.74			-
(2) Non-consolidated Financial Position
			Total assets	Net assets	Equity ratio	Net assets per share
			Million yen		Million yen		%		%
	As of March 31, 2021		10,291		5,772		56.1			971.30
	As of March 31, 2020		8,184		4,607		56.3			781.55

(Reference) Equity: As of March 31, 2021: ¥5,772 million As of March 31, 2020: ¥4,607 million

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(Percentages represent changes from the previous fiscal year for full year, and on a year-on-year basis for quarterly results)

	Net sales		Ordinary profit	Profit		Basic earnings
			per share
	Million yen	%	Million yen	%	Million yen	%	Yen
First half	8,200	(6.8)	880	(14.8)	600	(12.1)	100.65
Full year	17,500	1.1	1,800	13.2	1,200	10.2	200.74

(Note) From the beginning of the fiscal year ending March 31, 2022, the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc., will be applied and the non-consolidated financial results forecast above indicates amounts after application of said Accounting Standard, etc. Changes from the previous fiscal year and changes on a year-on-year basis indicate the rate of increase or decrease calculated with the retrospective application of said Accounting Standard, etc. for the fiscal year ended March 31, 2021.

* These financial results are outside the scope of audit by certified public accountants or audit firms.

• Explanation of the proper use of financial results forecast and other notes
  The earnings forecasts and other forward-looking statements herein are based on the information currently available to the Company and certain assumptions that are deemed reasonable. They are not a pledge by the Company to achieve the forecasted results. Actual results, etc. may differ significantly from these forecasts due to a wide range of factors. For more details on the above forecasts, please refer to "1. Overview of Operating Results, etc., (4) Future Outlook" on page 5.

Table of Contents
1.	Overview of Operating Results, etc. .......................................................................................................... 2
(1)	Overview of Operating Results for the Fiscal Year under Review ........................................................	2
(2)	Overview of Financial Position for the Fiscal Year under Review .......................................................	3
(3)	Overview of Cash Flows for the Fiscal Year under Review ..................................................................	4
(4)	Future Outlook ......................................................................................................................................	5
(5)	Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and Next Fiscal Year . 5
2.	Status of Corporate Group .........................................................................................................................	6
3.	Management Policies...................................................................................................................................	7
(1)	Basic Policy on Management ................................................................................................................	7
(2) Target Business Indicators .....................................................................................................................	7
(3)	Medium-to-Long-term Management Strategies and Issues to be Addressed ........................................	7
4.	Basic Views on Selecting Accounting Standards ........................................................................................	9
5.	Consolidated Financial Statements...............................................................................................................	10
(1)	Consolidated Balance Sheet .....................................................................................................................	10
(2)	Consolidated Statements of Income and Comprehensive Income ...........................................................	12
(3)	Consolidated Statement of Changes in Equity .........................................................................................	14
(4)	Consolidated Statement of Cash Flows....................................................................................................	16

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