Elan : Summary of Consolidated Financial Results for the Year Ended December 31, 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 Year Ended December 31, 2021
			(Based on Japanese GAAP)
																			February 10, 2022
Company name:	ELAN Corporation
Stock exchange listing:	Tokyo
Stock code:	6099	URL https://www.kkelan.com/
Representative:	President						Hideharu Sakurai
Inquiries:	Executive Officer, IR Office Manager	Hideo Hara		TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	March 23, 2022
Scheduled date to file Securities Report:		March 24, 2022
Scheduled date to commence dividend payments:		March 24, 2022
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:						Yes	(for institutional investors and analysts)
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2021 (from January 1, 2021 to December 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 December 31, 2021		31,635		21.4	2,798		35.3		2,818		31.2	1,905		31.8
Year ended December 31, 2020		26,056		21.1	2,068		38.6		2,148		43.1	1,446		46.2
			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 December 31, 2021		31.49			-				27.9						22.0				8.8
Year ended December 31, 2020		23.87			-				25.8						20.5				7.9
(2) Consolidated financial position
			Total assets		Net assets		Equity ratio		Net assets per share
			Millions of yen	Millions of yen						%					Yen
As of December 31, 2021		13,947					7,483						53.7					123.78
As of December 31, 2020		11,689					6,184						52.9					102.05
(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 December 31, 2021		2,106					(357)						(614)					5,607
Year ended December 31, 2020		1,947					(648)						(273)					4,473
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 December 31, 2020		-		0.00	-				14.00	14.00			424	29.3			7.6
Year ended December 31, 2021		-		0.00	-				9.00	9.00			545	28.6			8.0
Year ending December 31, 2022		-			0.00	-				10.00	10.00				30.2
(Forecast)

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3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 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
17,300	13.7	1,430		1.9	1,440		1.8		980		2.5	16.21
June 30, 2022
Full year	37,000	17.0	3,000		7.2	3,020		7.1		2,000		4.9	33.08
4. Notes
(1) Changes in significant subsidiaries during the year ended December 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 December 31, 2021	60,600,000	shares	As of December 31, 2020	60,600,000	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	140,969	shares	As of December 31, 2020	938	shares
Average number of shares during the period
	Year ended December 31, 2021	60,516,098	shares	Year ended December 31, 2020	60,599,113	shares

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Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Assets
Current assets
Cash and deposits	4,497,677	5,632,051
Accounts receivable - trade	3,279,413	3,891,204
Merchandise	982,361	1,068,647
Supplies	12,992	11,640
Accounts receivable - other	1,765,497	1,957,416
Other	83,241	55,927
Allowance for doubtful accounts	(441,059)	(486,903)
Total current assets	10,180,124	12,129,983
Non-current assets
Property, plant and equipment
Buildings and structures	234,833	252,102
Accumulated depreciation	(87,550)	(98,393)
Buildings and structures, net	147,283	153,708
Machinery, equipment and vehicles	45,409	60,905
Accumulated depreciation	(29,297)	(26,148)
Machinery, equipment and vehicles, net	16,112	34,756
Land	114,018	114,018
Other	98,228	113,420
Accumulated depreciation	(58,866)	(74,819)
Other, net	39,361	38,600
Total property, plant and equipment	316,775	341,085
Intangible assets
Software	109,363	73,066
Goodwill	48,856	9,771
Other	4,072	22,583
Total intangible assets	162,291	105,421
Investments and other assets
Investment securities	662,964	941,920
Deferred tax assets	290,221	350,189
Other	136,952	168,518
Allowance for doubtful accounts	(60,255)	(89,318)
Total investments and other assets	1,029,882	1,371,309
Total non-current assets	1,508,950	1,817,816
Total assets		11,689,074	13,947,800

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			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	4,157,946	4,868,493
Accounts payable - other	504,063	547,426
Accrued expenses	59,585	69,437
Income taxes payable	557,417	610,067
Accrued consumption taxes	154,932	236,865
Other	67,887	84,773
Total current liabilities	5,501,831	6,417,063
Non-current liabilities
Provision for share awards	-	13,858
Provision for share awards for directors (and other	-	31,417
officers)
Other	3,039	1,737
Total non-current liabilities	3,039	47,013
Total liabilities	5,504,871	6,464,077
Net assets
Shareholders' equity
Share capital	573,496	573,496
Capital surplus	543,496	543,496
Retained earnings	5,092,828	6,574,561
Treasury shares	(320)	(197,189)
Total shareholders' equity	6,209,500	7,494,363
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	(25,297)	(10,640)
Total accumulated other comprehensive income	(25,297)	(10,640)
Total net assets	6,184,203	7,483,722
Total liabilities and net assets		11,689,074	13,947,800

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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
		December 31, 2020	December 31, 2021
Net sales	26,056,360	31,635,891
Cost of sales	19,492,746	23,758,949
Gross profit	6,563,613	7,876,942
Selling, general and administrative expenses	4,495,382	5,078,271
Operating profit	2,068,230	2,798,670
Non-operating income
Gain on sale of non-current assets	467	1,595
Subsidy income	291	3,155
Late charges income	16,980	15,868
Consumption tax exemption gain	59,814	-
Other	4,737	5,231
Total non-operating income	82,292	25,851
Non-operating expenses
Loss on retirement of non-current assets	-	1,447
Loss on sale of non-current assets	124	-
Commitment fees	2,000	-
Loss on investments in investment partnerships	-	3,159
Other	19	1,367
Total non-operating expenses	2,143	5,974
Ordinary profit	2,148,379	2,818,548
Profit before income taxes	2,148,379	2,818,548
Income taxes - current	778,195	972,590
Income taxes - deferred	(76,188)	(59,967)
Total income taxes	702,007	912,622
Profit	1,446,372	1,905,925
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent		1,446,372	1,905,925

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