Moriroku : Summary of Consolidated Financial Results for the Year Ended March 31, 2022(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 March 31, 2022

(Based on Japanese GAAP)

May 13, 2022

Company name:

Moriroku Holdings Company, Ltd.

Stock exchange listing:

Tokyo

Stock code:

4249

URL https://www.moriroku.co.jp/

Representative:

President and CEO

Takashi Kurita

Inquiries:

General Manager of Corporate

Naotake Sato

TEL [phone]

Communications & IR Division

Scheduled date of ordinary general meeting of shareholders:

June 16, 2022

Scheduled date to file Securities Report:

June 16, 2022

Scheduled date to commence dividend payments:

June 1, 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 March 31, 2022 (from April 1, 2021 to March 31, 2022)

(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 March 31, 2022

128,842

-

2,846

(49.8)

2,965

(47.0)

4,259

-

Year ended March 31, 2021

155,460

(9.0)

5,672

3.2

5,595

(1.3)

375

(89.3)

Note: Comprehensive income

Year ended March 31, 2022

¥4,350 million

[(8.0)%]

Year ended March 31, 2021

¥4,729 million

[626.3%]

Diluted earnings per

Profit attributable to

Ordinary profit/total

Operating profit/net

Earnings per share

owners of

share

parent/equity

assets

sales

Yen

Yen

%

%

%

Year ended March 31, 2022

258.92

-

6.1

2.2

2.2

Year ended March 31, 2021

22.68

-

0.6

4.4

3.6

Reference: Share of profit (loss) of entities accounted for using equity method

Year ended March 31, 2022	¥(17)	million
Year ended March 31, 2021	¥(20)	million

Note: The Company has applied the "Accounting Standard for Revenue Recognition" and relevant ASBJ regulations from the beginning of the current fiscal year, and net sales for the fiscal year ended March 31, 2022, is the figure after applying the accounting standard and relevant ASBJ regulations. Therefore, the percentage of year-on-year change is not shown.

(2) Consolidated financial position

		Total assets	Net assets	Equity ratio	Net assets per share
			Millions of yen	Millions of yen	%	Yen
As of March 31, 2022			137,125	72,067	51.6	4,423.86
As of March 31, 2021			132,887	70,136	51.8	4,152.57
Reference: Equity	As of March 31, 2022	¥70,690 million
	As of March 31, 2021	¥68,813 million
(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 March 31, 2022		3,434	(1,140)	(2,824)	18,358
Year ended March 31, 2021		9,693	(5,260)	1,633	17,933
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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 March 31, 2021

-

20.00

-

30.00

50.00

828

220.5

1.2

Year ended March 31, 2022

-

47.00

-

47.00

94.00

1,529

36.3

2.2

Year ending March 31, 2023

-

47.00

-

53.00

100.00

31.8

(Forecast)

Note: Breakdown of fiscal year-end dividends for the fiscal year ending March 31, 2023 (forecast):

Ordinary dividend of ¥47.00, and commemorative dividend of ¥6.00 (360th anniversary commemorative dividend)

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

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

71,000

12.7

2,500

162.3

2,500

116.4

1,360

(43.8)

85.53

September 30, 2022

Full year

153,000

18.7

9,000

216.2

9,000

203.5

5,000

17.4

314.47

4. Notes

(1) Changes in significant subsidiaries during the year ended March 31, 2022

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:

Yes

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 March 31, 2022

16,960,000 shares

As of March 31, 2021

16,960,000 shares

Number of treasury shares at the end of the period

As of March 31, 2022

980,719 shares

As of March 31, 2021

388,628 shares

Average number of shares during the period

Year ended March 31, 2022

16,449,433 shares

Year ended March 31, 2021

16,570,460 shares

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Reference: Summary of non-consolidated financial results
1. Non-consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
(1) Non-consolidated operating results						Percentages indicate year-on-year changes
			Operating revenue	Operating profit	Ordinary profit	Profit
		Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen	%
Year ended March 31, 2022		2,771	16.0	1,357		26.3	1,704		25.7	5,022	112.6
Year ended March 31, 2021		2,389	(14.4)	1,074		(23.7)	1,356		(21.2)	2,362	30.2
			Earnings per share	Diluted earnings per share
				Yen			Yen
Year ended March 31, 2022			305.34			-
Year ended March 31, 2021			142.60			-
(2) Non-consolidated financial position
			Total assets	Net assets		Equity ratio		Net assets per share
			Millions of yen	Millions of yen			%		Yen
As of March 31, 2022				38,172			30,739			80.5	1,923.72
As of March 31, 2021				43,755			31,779			72.6	1,917.75
Reference: Equity	As of March 31, 2022	¥30,739 million
	As of March 31, 2021	¥31,779 million

non-consolidated financial results for fiscal year ended March 31, 2022 and the previous fiscal year>

In the current fiscal year, both operating profit and ordinary profit increased due to an increase in operating revenue resulting from an increase in dividends from affiliated companies. In addition, profit also increased due to the recording of a gain on sale of cross-shareholdings as extraordinary income to improve asset efficiency and strengthen the Company's financial structure, resulting in a difference between the actual results for the previous fiscal year and the current fiscal year.

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of forecasts of financial results, and other special matters

(Caution concerning forward-looking statements)

The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize such statements. Actual performance and other results may differ materially due to various factors.

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of March 31, 2022
Assets
Current assets
Cash and deposits	17,947	18,373
Notes and accounts receivable - trade	31,369	-
Notes receivable - trade	-	1,274
Accounts receivable - trade	-	32,115
Electronically recorded monetary claims - operating	1,059	1,388
Merchandise and finished goods	6,104	7,762
Work in process	3,184	4,742
Raw materials and supplies	4,115	5,996
Other	3,592	5,419
Allowance for doubtful accounts	(12)	(13)
Total current assets	67,360	77,058
Non-current assets
Property, plant and equipment
Buildings and structures, net	19,417	19,459
Machinery, equipment and vehicles, net	10,265	10,315
Tools, furniture and fixtures, net	5,637	5,566
Land	5,132	5,044
Leased assets, net	107	99
Construction in progress	3,247	4,133
Total property, plant and equipment	43,807	44,619
Intangible assets	1,003	981
Investments and other assets
Investment securities	18,254	11,868
Long-term loans receivable	256	257
Retirement benefit asset	371	534
Deferred tax assets	1,240	1,158
Other	594	662
Allowance for doubtful accounts	(1)	(15)
Total investments and other assets	20,715	14,465
Total non-current assets	65,527	60,066
Total assets		132,887	137,125

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			(Millions of yen)
		As of March 31, 2021	As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	21,052	21,801
Electronically recorded obligations - operating	2,300	2,853
Short-term borrowings	17,298	21,236
Current portion of long-term borrowings	1,514	1,307
Lease liabilities	228	255
Income taxes payable	854	1,663
Other	7,800	6,842
Total current liabilities	51,049	55,961
Non-current liabilities
Long-term borrowings	4,638	3,510
Lease liabilities	604	478
Deferred tax liabilities	5,279	3,963
Retirement benefit liability	385	402
Asset retirement obligations	169	173
Other	625	566
Total non-current liabilities	11,701	9,095
Total liabilities	62,750	65,057
Net assets
Shareholders' equity
Share capital	1,640	1,640
Capital surplus	4,782	4,782
Retained earnings	53,638	56,622
Treasury shares	(237)	(1,350)
Total shareholders' equity	59,824	61,694
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	8,523	4,869
Foreign currency translation adjustment	(90)	3,584
Remeasurements of defined benefit plans	250	264
Remeasurements of other postretirement benefit plans of	305	277
foreign consolidated subsaidiaries
Total accumulated other comprehensive income	8,989	8,995
Non-controlling interests	1,322	1,377
Total net assets	70,136	72,067
Total liabilities and net assets		132,887	137,125

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