OKUMURA : Brief Financial Report for the Second Quarter of FY2019

Consolidated Financial Statements (For the Second Quarter of FY2019)Consolidated Balance Sheets

(Millions of yen)

FY2018	Current Second Quarter
As of March 31, 2018	As of September 30, 2018
Current assets:
Cash and deposits	45,942	43,701
Notes receivable, accounts receivable from completed
construction contracts and other	112,287	84,051
Securities	10,999	25,000
Real estate for sale	705	564
Costs on uncompleted construction contracts	5,547	4,857
Costs on real estate business	3,215	3,175
Work in process	865	1,875
Raw materials and supplies	41	71
Other	11,652	6,933
Allowance for doubtful accounts	(786)	(599)
Total current assets	190,470	169,630
Non-current assets:
Property, plant and equipment:
Land	31,250	31,183
Other, net	14,064	14,033
Total property, plant and equipment	45,314	45,216
Intangible assets	280	280
Investments and other assets:
Investment securities	74,759	79,416
Net defined benefit asset	2,409	2,395
Other	2,690	2,650
Allowance for doubtful accounts	(2,060)	(2,011)
Total investments and other assets	77,798	82,450
Total non-current assets	123,393	127,946
Total assets	313,863	297,577

Assets

(Millions of yen)

Current liabilities:

Notes payable, accounts payable for construction contracts

and other

Short-term loans payable

Income taxes payable

Advances received on uncompleted construction contracts

Provision

Provision for loss on construction contracts

Asset retirement obligations

Other

Total current liabilities

Non-current liabilities:

Long-term loans payable

Asset retirement obligations

Other

Total non-current liabilities

Total liabilities

FY2018	Current Second Quarter
As of March 31, 2018	As of September 30, 2018
58,985	41,298
11,659	9,499
2,707	1,442
16,013	19,847
4,940	3,256
2,344	1,280
104	104
33,102	32,876
129,856	109,604
3,141	5,134
64	64
13,077	15,362
16,283	20,560
146,140	130,165
Shareholders' equity:
Capital stock	19,838	19,838
Capital surplus	25,330	25,330
Retained earnings	98,265	96,626
Treasury shares	(12,688)	(14,380)
Total shareholders' equity	130,746	127,414
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities	34,838	38,010
Remeasurements of defined benefit plans	2,138	1,987
Total accumulated other comprehensive income	36,977	39,997
Total net assets	167,723	167,412
Total liabilities and net assets	313,863	297,577

Liabilities

Net assets

Consolidated Statements of Income

(Six-month Period Ended September 30)
	(Millions of yen)
2Q / FY2018	2Q / FY2019
April 1, 2017 through	April 1, 2018 through
September 30, 2017	September 30, 2018
Net sales:
Net sales of completed construction contracts	103,525	101,151
Net sales of real estate business and other	4,422	4,391
Total net sales	107,947	105,543
Cost of sales:
Cost of sales of completed construction contracts	88,783	88,162
Cost of sales on real estate business and other	2,467	2,340
Total cost of sales	91,251	90,503
Gross profit:
Gross profit on completed construction contracts	14,741	12,988
Gross profit on real estate business and other	1,954	2,050
Total gross profit	16,696	15,039
Selling, general and administrative expenses	7,617	8,228
Operating profit	9,078	6,810
Non-operating income:
Interest income	36	19
Dividend income	656	691
Other	99	354
Total non-operating income	791	1,066
Non-operating expenses:
Interest expenses	68	77
Other	18	13
Total non-operating expenses	87	90
Ordinary profit	9,783	7,786
Extraordinary income:
Gain on sales of non-current assets	48	79
Gain on sales of investment securities	125	―
Total extraordinary income	173	79
Extraordinary losses:
Loss on sales of non-current assets	―	42
Other	2	4
Total extraordinary losses	2	46
Profit before income taxes	9,953	7,819
Income taxes - current	1,006	1,239
Income taxes - deferred	(7)	890
Total income taxes	998	2,129
Profit	8,954	5,689
Profit attributable to owners of parent	8,954	5,689

Consolidated Statements of Comprehensive Income (Six-month Period Ended September 30)

(Millions of yen)
2Q / FY2018	2Q / FY2019
April 1, 2017 through	April 1, 2018 through
September 30, 2017	September 30, 2018

Profit	8,954	5,689
Other comprehensive income:
Valuation difference on available-for-sale securities	4,691	3,171
Remeasurements of defined benefit plans, net of tax	(57)	(151)
Total other comprehensive income	4,633	3,020
Comprehensive income	13,588	8,709
Comprehensive income attributable to:
Comprehensive income attributable to owners of parent	13,588	8,709
Comprehensive income attributable to non-controlling interests	―	―

Consolidated Statements of Cash Flows

(Six-month Period Ended September 30)
	(Millions of yen)
2Q / FY2018	2Q / FY2019
April 1, 2017 through	April 1, 2018 through
September 30, 2017	September 30, 2018
Cash flows from operating activities:
Profit before income taxes	9,953	7,819
Depreciation	511	566
Increase (decrease) in allowance for doubtful accounts	29	(203)
Decrease (increase) in net defined benefit asset	(34)	(141)
Increase (decrease) in provision for loss on construction
contracts	(1,272)	(1,064)
Interest and dividend income	(692)	(711)
Interest expenses	68	77
Loss (gain) on sales of non-current assets	(48)	(37)
Loss (gain) on sales of short-term and long-term
investment securities	(125)	―
Decrease (increase) in notes and accounts receivable -
trade	(4,713)	28,235
Decrease (increase) in costs on uncompleted construction
contracts	1,017	690
Decrease (increase) in other inventories	(798)	(859)
Increase (decrease) in notes and accounts payable - trade	(4,439)	(12,788)
Increase (decrease) in advances received on uncompleted
construction contracts	(1,065)	3,834
Other, net	2,180	(1,696)
Subtotal	572	23,721
Interest and dividend income received	692	710
Interest expenses paid	(68)	(77)
Income taxes (paid) refund	(1,120)	(2,480)
Net cash provided by (used in) operating activities	75	21,874