Sanei Architecture Planning : Consolidated Financial Results for the Nine Months Ended May 31, 2021

For Immediate Release

(This is an English translation of the Japanese original.)

Consolidated Financial Results

for the Nine Months Ended May 31, 2021

[Japanese GAAP]

July 13, 2021

Company name: SANEI ARCHITECTURE PLANNING CO., LTD.

Stock exchange listing: Tokyo Stock Exchange

Code number: 3228

URL: https://www.san-a.com

Representative: Manabu Koike, Representative Director and Senior Managing Director

Contact: Tsuyoshi Hasebe, Executive Officer, General Manager of Administration Division

Phone: [phone]

Scheduled date of filing quarterly securities report: July 13, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Not available

Schedule of quarterly financial results briefing session: Not scheduled

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

1. Consolidated Financial Results for the nine months ended May 31, 2021 (September 1, 2020 to May 31, 2021)

(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
					Net sales				Operating profit	Ordinary profit	Profit attributable to
								owners of parent
	Nine months ended	Million yen	%	Million yen	%		Million yen	%		Million yen	%
	May 31, 2021	84,487	13.6		6,822	42.8		7,099	66.7		4,526	78.7
	May 31, 2020			74,363	(6.4)		4,778	(31.9)		4,259	(31.8)		2,533	(38.1)
(Note) Comprehensive income: Nine months ended May 31, 2021: ¥5,004 million [86.8%]
					Nine months ended May 31, 2020: ¥2,678 million [(37.0%)]
				Basic profit		Diluted profit per
				per share			share
	Nine months ended		Yen					Yen
	May 31, 2021	213.34				177.92
	May 31, 2020		119.41				99.71
(2) Consolidated Financial Position
					Total assets			Net assets	Equity ratio
						Million yen			Million yen		%
	As of May 31, 2021			148,635			50,068		32.1
	As of August 31, 2020			136,927			46,341		32.3

(Reference) Equity: As of May 31, 2021: ¥47,720 million As of August 31, 2020: ¥44,279 million

2. Dividends

		Annual dividends
	1st	2nd	3rd		Year-end			Total
	quarter-end	quarter-end	quarter-end
Fiscal year ended	Yen	Yen	Yen		Yen			Yen
-	24.00	-	24.00	48.00
August 31, 2020
Fiscal year ending	-	35.00	-
August 31, 2021
Fiscal year ending
August 31, 2021				35.00		70.00
(Forecast)

(Note) Revision to the forecast for dividends announced most recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending August 31, 2021 (September 1, 2020 to August 31, 2021)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable	Basic profit per
		to owners of parent	share
	Million yen	%	Million yen	%	Million yen	%		Million yen	%	Yen
Full year	140,000	21.8	10,274	29.0	10,054	39.8		6,400	57.0	301.64
(Note) Revision to the financial results forecast announced most recently: No

* Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
   (Note) The Company acquired 70% of the total issued shares of Alpha Construction Co. Inc. and made it a consolidated subsidiary during the third quarter of the current fiscal year, although Alpha Construction is not a specified subsidiary of the Company. For the nine months ended May 31, 2021, only the balance sheet has been consolidated. In addition, MPD Realty, Inc. has been consolidated starting in the third quarter of the current fiscal year because of its increased significance.
2. Adoption of accounting methods specific to the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
5. Total number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares):

May 31, 2021: 21,217,600 shares

August 31, 2020: 21,217,600 shares

1. Total number of treasury shares at the end of the period: May 31, 2021: 521 shares
   August 31, 2020: 521 shares
2. Average number of shares during the period:

Nine months ended May 31, 2021: 21,217,079 shares

Nine months ended May 31, 2020: 21,217,079 shares

• These consolidated financial results are outside the scope of quarterly review by certified public accountants or audit firms
• Explanation of the proper use of financial results forecast and other notes

The earnings forecasts and other forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable, and the Company does not promise the achievement of those forecasts. Actual results may differ significantly from these forecasts due to a wide range of factors. For the assumptions underlying the forecasts and the notes on the use of the forecasts, please refer to "1. (3) Explanation Regarding Consolidated Financial Results Forecast and Other Forward-looking Information" on page 4 (Japanese version only).

Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

			(Thousand yen)
		As of August 31, 2020	As of May 31, 2021
Assets
Current assets
Cash and deposits		28,470,636	27,840,198
Notes and accounts receivable-trade	3,968,997	8,828,585
Real estate for sale		30,419,580	34,056,288
Real estate for sale in process	38,880,531	43,946,588
Costs on construction contracts in progress		969,691	1,219,586
Other	3,041,288	2,128,825
Allowance for doubtful accounts		(61,952)	(76,154)
Total current assets	105,688,774	117,943,918
Non-current assets
Property, plant and equipment
Buildings and structures		6,601,997	7,293,073
Accumulated depreciation	(1,940,000)	(2,374,992)
Buildings and structures, net		4,661,996	4,918,080
Land		14,743,476	14,559,328
Other		1,076,033	475,813
Accumulated depreciation		(276,409)	(308,772)
Other, net		799,623	167,040
Total property, plant and equipment		20,205,096	19,644,450
Intangible assets		1,769,146	1,881,007
Investments and other assets
Other		9,381,965	9,287,483
Allowance for doubtful accounts		(117,736)	(121,721)
Total investments and other assets		9,264,229	9,165,762
Total non-current assets		31,238,472	30,691,219
Total assets		136,927,246	148,635,138

1

		(Thousand yen)
	As of August 31, 2020	As of May 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	8,625,661	13,747,596
Short-term borrowings	24,543,968	25,555,436
Current portion of long-term borrowings	7,335,359	9,210,029
Current portion of bonds payable	840,000	1,030,000
Income taxes payable	1,595,139	2,172,589
Provision for bonuses	362,452	195,814
Other	3,302,218	4,239,275

Total current liabilities

Non-current liabilities

Bonds payable

Convertible bond-type bonds with share acquisition rights

46,604,79956,150,742

4,484,5003,524,500

10,000,00010,000,000

Long-term borrowings	27,553,098	26,973,321
Retirement benefit liability	635,732	652,320
Asset retirement obligations	328,118	331,714
Other	979,938	934,508
Total non-current liabilities	43,981,388	42,416,364
Total liabilities	90,586,188	98,567,106
Net assets
Shareholders' equity
Share capital	1,340,150	1,340,150
Capital surplus	1,238,646	1,238,646
Retained earnings	42,040,530	45,308,762
Treasury shares	(462)	(462)
Total shareholders' equity	44,618,865	47,887,096
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	(170,847)	(74,429)
Foreign currency translation adjustment	(115,293)	(49,944)
Remeasurements of defined benefit plans	(52,909)	(42,013)
Total accumulated other comprehensive income	(339,050)	(166,388)
Non-controlling interests	2,061,244	2,347,322
Total net assets	46,341,058	50,068,031
Total liabilities and net assets	136,927,246	148,635,138

2