Nishimatsu Construction : Consolidated Financial Results for the Three Months Ended June 30, 2022

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Three Months Ended June 30, 2022

[Japanese GAAP]

Company name: Nishimatsu Construction Co., Ltd.	August 04, 2022
Stock exchange listing: Tokyo
Code number: 1820
URL: https://www.nishimatsu.co.jp/
Representative: Nobutoshi Takase	Representative Director and President
Contact: Junichi Usuki	General Manager of Finance & Accounting Department

Phone: [phone]

Scheduled date of filing quarterly securities report: August 04, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (April 01, 2022 to June 30, 2022)

(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
Three months ended		Million yen		%	Million yen	%	Million yen	%	Million yen	%
June 30, 2022		69,722		(4.7)	3,778	(26.0)	4,306	(22.8)	2,802	(27.7)
June 30, 2021		73,140		(4.0)	5,109	88.7	5,580	80.4	3,876	132.6

(Note) Comprehensive income:	Three months ended June 30, 2022:
	Three months ended June 30, 2021:

¥	4,545 million	[	12.6%]
¥	4,038 million	[	26.5%]

	Basic earnings	Diluted earnings per
	per share		share
Three months ended	Yen			Yen
June 30, 2022	70.99			-
June 30, 2021	70.88			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio
As of	Million yen			Million yen	%
June 30, 2022	455,442			157,011	33.0
March 31, 2022	477,613			157,715	31.7
(Reference) Equity: As of	June 30, 2022:	¥	150,211 million
As of	March 31, 2022:	¥	151,328 million

2. Dividends

				Annual dividends
	1st	2nd	3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
	Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2022	-		90.00	-		131.00	221.00
Fiscal year ending March 31, 2023	-
Fiscal year ending March 31, 2023			140.00	-		145.00	285.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
Six months ended	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
151,500		(1.0)	10,300	1.7	10,700	1.1	7,500	1.4	190.00
September 30, 2022
Full year	338,500		4.6	24,000	2.0	24,000	2.1	16,000	5.9	405.34
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the three months ended June 30, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

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: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2022:	55,591,502	shares
March 31, 2022:	55,591,502	shares
2) Total number of treasury shares at the end of the period:
June 30, 2022:	16,118,573	shares
March 31, 2022:	16,118,423	shares

3) Average number of shares during the period:
Three months ended June 30, 2022:	39,472,967	shares
Three months ended June 30, 2021:	54,700,561	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

					(Million yen)
				As of March 31,2022	As of June 30,2022
Assets
	Current assets
		Cash and deposits	47,121	55,664
		Notes receivable, accounts receivable from	183,464	149,612
		completed construction contracts and other
		Costs on construction contracts in progress	6,227	7,162
		Real estate for sale	4,646	7,893
		Costs on real estate business	4,100	4,294
		Raw materials and supplies	294	365
		Advances paid	10,992	9,675
		Other	5,462	7,529
		Allowance for doubtful accounts	(19)	(15)
		Total current assets	262,292	242,183
	Non-current assets
		Property, plant and equipment
			Buildings and structures, net	63,370	59,877
			Machinery, vehicles, tools, furniture and	1,680	1,618
			fixtures, net
			Land	95,720	95,588
			Leased assets, net	61	55
			Construction in progress	1,297	2,633
			Total property, plant and equipment	162,131	159,774
		Intangible assets	1,254	1,234
		Investments and other assets
			Investment securities	35,485	37,035
			Long-term loans receivable	1,047	951
			Retirement benefit asset	2,801	3,401
			Deferred tax assets	6,095	4,357
			Other	6,580	6,576
			Allowance for doubtful accounts	(75)	(74)
			Total investments and other assets	51,935	52,249
		Total non-current assets	215,320	213,259
	Total assets	477,613	455,442

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				(Million yen)
			As of March 31,2022	As of June 30,2022
Liabilities
	Current liabilities
		Notes payable, accounts payable for construction	60,532	45,528
		contracts and other
		Short-term borrowings	43,039	30,039
		Commercial papers	20,000	20,000
		Current portion of bonds payable	10,000	10,000
		Income taxes payable	5,879	416
		Advances received on construction contracts in	14,802	18,421
		progress
		Provision for warranties for completed	7,923	6,639
		construction
		Provision for bonuses	3,673	1,741
		Provision for bonuses for directors (and other	58	57
		officers)
		Provision for loss on construction contracts	2,820	2,853
		Provision for loss on real estate business and other	38	39
		Deposits received	45,883	54,958
		Asset retirement obligations	27	-
		Other	2,987	2,976
		Total current liabilities	217,663	193,671
	Non-current liabilities
		Bonds payable	87,000	87,000
		Long-term borrowings	-	2,594
		Provision for share awards for directors (and other	54	57
		officers)
		Deferred tax liabilities	292	301
		Retirement benefit liability	6,509	6,556
		Asset retirement obligations	734	754
		Other	7,642	7,497
		Total non-current liabilities	102,233	104,759
	Total liabilities	319,897	298,431
Net assets
	Shareholders' equity
		Share capital	23,513	23,513
		Capital surplus	20,795	20,795
		Retained earnings	158,485	156,038
		Treasury shares	(57,335)	(57,336)
		Total shareholders' equity	145,459	143,011
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	6,389	6,918
		securities
		Foreign currency translation adjustment	326	1,123
		Remeasurements of defined benefit plans	(847)	(842)
		Total accumulated other comprehensive income	5,868	7,199
	Non-controlling interests	6,387	6,800
	Total net assets	157,715	157,011
Total liabilities and net assets	477,613	455,442

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Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the three months)
		(Million yen)
	For the three months	For the three months
	ended June 30,2021	ended June 30,2022
Net sales
Net sales of completed construction contracts	68,700	61,746
Net sales in real estate business and other	4,439	7,975
Total net sales	73,140	69,722
Cost of sales
Cost of sales of completed construction contracts	60,580	55,331
Cost of sales in real estate business and other	2,875	5,555
Total cost of sales	63,455	60,886
Gross profit
Gross profit on completed construction contracts	8,119	6,415
Gross profit on real estate business and other	1,564	2,420
Total gross profit	9,684	8,835
Selling, general and administrative expenses	4,574	5,056
Operating profit	5,109	3,778
Non-operating income
Interest income	9	12
Dividend income	256	248
Reversal of allowance for doubtful accounts	145	4
Foreign exchange gains	82	298
Other	126	178
Total non-operating income	621	743
Non-operating expenses
Interest expenses	119	178
Financing expenses	4	4
Other	27	32
Total non-operating expenses	150	215
Ordinary profit	5,580	4,306
Extraordinary income
Gain on sale of non-current assets	1	1
Total extraordinary income	1	1
Extraordinary losses
Increase (decrease) in employee deposits	10	-
Office relocation expenses	-	23
Settlement payments	-	35
Other	21	12
Total extraordinary losses	32	70
Profit before income taxes	5,549	4,237
Income taxes	1,638	1,463
Profit	3,910	2,774
Profit (loss) attributable to non-controlling interests	33	(28)
Profit attributable to owners of parent	3,876	2,802

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