Hibiya Engineering : For the First Quarter of Fiscal Year Ended March 31, 2023(Japan GAAP) Summary of Consolidated Financial Results

August 5, 2022

Summary of Consolidated Financial Results for the

First Quarter of Fiscal Year Ending March 31, 2023 [Japan GAAP]

Company: Hibiya Engineering, Ltd.

Stock exchange listing: Tokyo Stock Exchange (Prime Market)

Stock code: 1982

URL: https://www.hibiya-eng.co.jp/English

Representative Director: Nagahiro Kuroda, President and CEO

Contact: Akira Domon, Senior Executive Officer, Manager of IR and PR Office, Administration Division

Tel: [phone]
Date of filing of quarterly securities report:	August 5, 2022 (tentative)
Date of commencement of dividend payment: ‒
Supplementary explanatory documents:	No
Earnings presentation:	No

(Yen in millions, rounded down, figures in parentheses indicate negative amounts or percentages)

1. Financial results for the first quarter of the fiscal year ending March 2023 (April 1, 2022 - June 30, 2022)

	(1) Result of operations (Consolidated, year-to-date)		(Percentage figures represent year on year changes)
		Net sales	Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	First quarter ended	Million yen		%	Million yen	%	Million yen	%	Million yen	%
	June 2022	12,473		(19.6)	(128)	‒	173	(88.7)	108	(89.9)
	June 2021	15,520		1.2	1,314	213.5	1,536	109.0	1,067	109.2
	Note: Comprehensive income: First quarter of FY3/23: 213 million yen [-78.1%], First quarter of FY3/22: 973 million yen [-38.1%]
		Earnings per share	Earnings per share fully diluted
	First quarter ended				Yen			Yen
	June 2022				4.61			4.59
	June 2021				44.68			44.46
	(2) Financial position (Consolidated)
		Total assets	Net assets	Equity ratio	Net assets per share
	As of			Million yen		Million yen		%		Yen
	June 30, 2022			79,473		62,836		77.2		2,600.80
	March 31, 2022			87,466		63,409		70.7		2,635.31

Reference: Shareholders' equity: As of June 30, 2022: 61,313 million yen, As of March 31, 2022: 61,843 million yen

2. Dividends

				Dividend per share
	End of 1Q		End of 2Q		End of 3Q		End of FY		Annual
		Yen	Yen		Yen		Yen		Yen
FY3/22		‒	40.00		‒	42.00	82.00
FY3/23		‒
FY3/23 (Estimate)			42.00		‒	42.00	84.00

Note: Change in the estimation of dividend from the latest announcement: No

3. Forecast for the fiscal year ending March 2023 (Consolidated, April 1, 2022 - March 31, 2023)

(Percentage figures represent year on year changes)

	Net sales			Operating profit	Ordinary profit		Profit attributable to	Earnings
				owners of parent	per share
	Million yen			%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year	80,000		6.0		4,500	(20.5)	5,000	(18.9)		3,500	(20.0)	149.14

Note: Change in the forecast from the latest announcement: No

• Notes
• 1. Changes in significant subsidiaries (Changes in specific subsidiaries accompanied by changes in the scope of consolidation): No
  2. Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: No
  3. Changes in accounting principles and estimates, and retrospective restatement
  4. 1. Changes due to revision of accounting standards: Yes
     2. Changes other than in (a): No
     3. Changes in accounting estimates: No
     4. Retrospective restatement: No
  5. Number of shares outstanding (common stock)
  6. 1. Shares outstanding (including treasury shares)

As of June 30, 2022:	25,006,321	As of March 31, 2022:	25,006,321
(b) Treasury shares
As of June 30, 2022:	1,431,354	As of March 31, 2022:	1,539,127
(c) Average number of shares (quarterly consolidated cumulative period)
Period ended June 30, 2022:	23,483,972	Period ended June 30, 2021:	23,887,855

This report is exempt from the audit review by certified public accountant or audit firm.

Forward-looking statements, important notes, etc.

The forward-looking statements such as the forecasts of financial results stated in this report are based on the information currently available to the Company and certain assumptions that the Company judges as rational. These statements are not guarantees of future performance. Actual results may be materially different from the above forecasts for a number of reasons. For more information about these assumptions and other conditions that form the basis of these forecasts, please see page 2 of the supplementary information, "1. Results of Operations, (3) Forecast for the fiscal year ending March 2023."

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2023 of Hibiya Engineering, Ltd. (1982)

Index for Supplementary Information
1. Results of Operations .............................................................................................................................................	2
(1)	Overview of consolidated business performance ..............................................................................................	2
(2)	Overview of financial condition ..........................................................................................................................	2
(3)	Forecast for the fiscal year ending March 2023 ................................................................................................	2
2. Quarterly Consolidated Financial Statements and Important Notes .......................................................................	3
(1)	Quarterly consolidated balance sheet ...............................................................................................................	3
(2)	Quarterly consolidated statement of income and consolidated statement of comprehensive income ...............	5
	(Quarterly consolidated statement of income)...................................................................................................	5
	(Quarterly consolidated statement of comprehensive income)..........................................................................	6
(3)	Notes to quarterly consolidated financial statements ........................................................................................	7
	(Notes on going concern assumptions).............................................................................................................	7
	(Notes on significant change in shareholders' equity) .......................................................................................	7
	(Change in accounting principle).......................................................................................................................	7

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Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2023 of Hibiya Engineering, Ltd. (1982)

1. Results of Operations

1. Overview of consolidated business performance
   During the first three months (April 1, 2022 - June 30, 2022) of the consolidated fiscal year ending March 31, 2023, the Japanese economy showed signs of recovery largely thanks to the easing of restrictions to combat the effects of COVID-19 in Japan and overseas and the Japanese government's measures to support the economy. However, the outlook remained uncertain amid concern about the economic downside risk stemming from the protracted Ukraine crisis and other factors.
   In Japan's construction industry, public works expenditures have held firm but appropriate measures are still needed to address changes in demand and fierce competition for orders, including measures for rising raw material prices and restrained supplies.
   Under these circumstances, we focused on various initiatives in accordance with the basic strategy of our Seventh Medium-term Management Plan, including expanding operations through cooperation with alliance partners and proposing ZEB renovation for museums and town halls to local governments with a view to expanding high added value business. Meanwhile for safety during the pandemic, we continued to encourage staggered working hours and working from home in order to reduce the spread of infection in the workplace and wider society.
   As a result of such measures, orders rose by 37.6% year on year, to 19,072 million yen, reflecting a strong performance including new orders for large redevelopment projects.
   Sales fell by 19.6% year on year, to 12,473 million yen, mainly because progress on projects in hand will be made in the second half of the fiscal year due to the long construction periods of projects deferred from the previous fiscal year.
   Factors such as decreased sales and year-on-year decline in large profitable projects primarily reflecting increased construction efficiency caused gross profit to fall 45.8% year on year, to 1,750 million yen, and resulted in an operating loss of 128 million yen compared with an operating profit of 1,314 million yen the same period a year earlier. Ordinary profit decreased 88.7% year on year, to 173 million yen and profit attributable to owners of parent fell 89.9% year on year, to 108 million yen, primarily due to the recording of an operating loss.
2. Overview of financial condition
   Assets
   The Group's total assets at the end of the first quarter of the consolidated fiscal year under review stood at 79,473 million yen, a decrease of 7,993 million yen from the end of the previous consolidated fiscal year. Current assets decreased 7,990 million yen to 57,041 million yen and noncurrent assets decreased 300 million yen to 22,431 million yen.
   The decrease in assets is mainly attributable to a decrease of 11,856 million yen in notes receivable, accounts receivable from completed construction contracts and other, which more than offset increases of 1,425 million yen in cash and deposits and 1,998 million yen in securities from the end of the previous consolidated fiscal year.
   Liabilities
   At the end of the consolidated first quarter under review, the Group's total liabilities amounted to 16,636 million yen, down 7,421 million yen from the end of the previous fiscal year.
   The decline in liabilities is primarily due to decreases of 4,412 million yen in notes payable, accounts payable for construction contracts and other and 1,769 million yen in income taxes payable from the end of the previous consolidated fiscal year.
   Net assets
   The Group's net assets totaled 62,836 million yen at the end of the first quarter under review, including a contribution from profit attributable to owners of parent of 108 million yen.
3. Forecast for the fiscal year ending March 2023
   There is no change in the forecast for consolidated results of operations that was announced on May 12, 2022.

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Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2023 of Hibiya Engineering, Ltd. (1982)

2. Quarterly Consolidated Financial Statements and Important Notes

1. Quarterly consolidated balance sheet

			(Million yen)
		Fiscal year ended March 2022	First quarter ended June 2022
		(As of March 31, 2022)	(As of June 30, 2022)
Assets
Current assets
Cash and deposits	27,965	29,391
Notes receivable, accounts receivable from	29,779	17,923
completed construction contracts and other
Securities	5,999	7,998
Costs on construction contracts in progress	873	1,262
Other	417	470
Allowance for doubtful accounts	(4)	(3)
Total current assets	65,031	57,041
Noncurrent assets
Property, plant and equipment	598	751
Intangible assets	118	129
Investments and other assets
Investment securities	16,228	16,365
Other	5,827	5,518
Allowance for doubtful accounts	(339)	(334)
Total investments and other assets	21,717	21,550
Total noncurrent assets	22,434	22,431
Total assets	87,466	79,473

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