Okumura : Brief Financial Report for the Second Quarter of FY2023 NEW!

Consolidated Financial Statements

(For the Second Quarter of FY2023)

Consolidated Balance Sheets

		(Millions of Yen)
	FY2022	Current Second Quarter
	As of March 31, 2022	As of September 30, 2022
Assets
Current assets：
Cash and deposits	33,156	25,386
Notes receivable, accounts receivable from completed
construction contracts and other	142,296	128,577
Securities	―	10,000
Real estate for sale	1,081	825
Costs on construction contracts in progress	2,612	4,288
Costs on real estate investment, development business and
other	982	1,031
Work in process	696	1,218
Raw materials and supplies	92	681
Other	11,248	13,746
Allowance for doubtful accounts	(152)	(139)
Total current assets	192,014	185,617
Non-current assets：
Property, plant and equipment：
Land	34,666	34,666
Other, net	38,709	42,567
Total property, plant and equipment	73,376	77,234
Intangible assets：
Goodwill	408	393
Other	724	1,261
Total intangible assets	1,132	1,655
Investments and other assets：
Investment securities	56,629	57,471
Retirement benefit asset	5,076	5,057
Other	6,074	10,696
Allowance for doubtful accounts	(1,956)	(1,950)
Total investments and other assets	65,825	71,275
Total non-current assets	140,334	150,165
Total assets	332,348	335,782

- 1 -

		(Millions of Yen)
	FY2022	Current Second Quarter
	As of March 31, 2022	As of September 30, 2022
Liabilities
Current liabilities：
Notes payable, accounts payable for construction contracts
and other	51,328	49,450
Short-term borrowings	9,480	11,365
Income taxes payable	1,656	1,881
Advances received on construction contracts in progress	11,536	12,349
Provisions	4,354	2,765
Provision for loss on construction contracts	973	1,626
Asset retirement obligations	83	84
Other	47,397	40,740
Total current liabilities	126,810	120,264
Non-current liabilities：
Long-term borrowings	5,112	3,111
Non-recourse borrowings	21,062	26,439
Asset retirement obligations	90	193
Other	11,846	13,964
Total non-current liabilities	38,112	43,708
Total liabilities	164,923	163,973
Net assets
Shareholders' equity：
Share capital	19,838	19,838
Capital surplus	26,240	26,240
Retained earnings	101,710	98,916
Treasury shares	(8,061)	(5,182)
Total shareholders' equity	139,727	139,812
Accumulated other comprehensive income：
Valuation difference on available-for-sale securities	24,665	25,704
Deferred gains or losses on hedges	1,099	2,764
Remeasurements of defined benefit plans	1,465	1,269
Total accumulated other comprehensive income	27,229	29,737
Non-controlling interests	467	2,258
Total net assets	167,425	171,809
Total liabilities and net assets	332,348	335,782

- 2 -

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

	(Millions of Yen)
2Q / FY2022	2Q / FY2023
April 1, 2021 through	April 1, 2022 through
September 30, 2021	September 30, 2022

Net sales：
Net sales of completed construction contracts	105,831	106,710
Net sales of real estate investment, development business and
other	6,479	4,432
Total net sales	112,310	111,143
Cost of sales：
Cost of sales of completed construction contracts	92,143	95,465
Cost of real estate investment, development business and other	4,379	2,682
Total cost of sales	96,522	98,148
Gross profit：
Gross profit on completed construction contracts	13,687	11,245
Gross profit on real estate investment, development business
and other	2,100	1,749
Total gross profit	15,787	12,995
Selling, general and administrative expenses	9,073	9,313
Operating profit	6,714	3,681
Non-operating income：
Interest income	15	11
Dividend income	636	676
Foreign exchange gains	143	268
Other	144	135
Total non-operating income	938	1,091
Non-operating expenses：
Interest expenses	186	239
Other	18	26
Total non-operating expenses	204	266
Ordinary profit	7,448	4,506
Extraordinary income：
Gain on sale of investment securities	550	1,035
Other	0	18
Total extraordinary income	550	1,053
Extraordinary losses：
Loss on valuation of investment securities	6	18
Other	2	4
Total extraordinary losses	8	22
Profit before income taxes	7,990	5,537
Income taxes - current	2,083	1,578
Income taxes - deferred	621	391
Total income taxes	2,704	1,969
Profit	5,285	3,567
Loss attributable to non-controlling interests	(327)	(354)
Profit attributable to owners of parent	5,613	3,921

- 3 -

Consolidated Statements of Comprehensive Income

(Six-month Period Ended September 30)

	(Millions of Yen)
2Q / FY2022	2Q / FY2023

	April 1, 2021 through	April 1, 2022 through
	September 30, 2021	September 30, 2022
Profit	5,285	3,567
Other comprehensive income：
Valuation difference on available-for-sale securities	(1,549)	1,038
Deferred gains or losses on hedges	1,507	3,329
Remeasurements of defined benefit plans, net of tax	(194)	(195)
Total other comprehensive income	(236)	4,172
Comprehensive income	5,049	7,740
Comprehensive income attributable to：
Comprehensive income attributable to owners of parent	4,623	6,429
Comprehensive income attributable to non-controlling interests	426	1,310

- 4 -

Consolidated Statements of Cash Flows (Six-month Period Ended September 30)

	(Millions of Yen)
2Q / FY2022	2Q / FY2023
April 1, 2021 through	April 1, 2022 through
September 30, 2021	September 30, 2022

Cash flows from operating activities：
Profit before income taxes	7,990	5,537
Depreciation	880	911
Amortization of goodwill	14	14
Increase (decrease) in allowance for doubtful accounts	(42)	(18)
Decrease (increase) in retirement benefit asset	(260)	(263)
Increase (decrease) in provision for loss on construction
contracts	(169)	652
Interest and dividend income	(651)	(687)
Interest expenses	186	239
Loss (gain) on sale of short-term and long-term
investment securities	(550)	(1,035)
Loss (gain) on valuation of short-term and long-term
investment securities	6	18
Decrease (increase) in trade receivables	34,123	13,718
Decrease (increase) in costs on construction contracts in
progress	2,969	(1,675)
Decrease (increase) in other inventories	1,620	(905)
Increase (decrease) in trade payables	(331)	(2,524)
Increase (decrease) in advances received on construction
contracts in progress	439	812
Other, net	1,958	(10,480)
Subtotal	48,184	4,315
Interest and dividends received	650	687
Interest paid	(133)	(159)
Income taxes refund (paid)	(4,197)	(1,378)
Net cash provided by (used in) operating activities	44,505	3,465

- 5 -