Sanei Architecture Planning : Consolidated Financial Results for the Six Months Ended February 28, 2021

For Immediate Release

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

Consolidated Financial Results

for the Six Months Ended February 28, 2021

[Japanese GAAP]

April 12, 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: April 12, 2021

Scheduled date of commencing dividend payments: May 10, 2021

Availability of supplementary briefing material on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Scheduled (for securities analysts and institutional investors)

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

1. Consolidated Financial Results for the six months ended February 28, 2021 (September 1, 2020 to February

28, 2021)
(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
				Net sales			Operating profit		Ordinary profit		Profit attributable to
								owners of parent
	Six months ended		Million yen	%		Million yen	%		Million yen	%		Million yen	%
	February 28, 2021	55,532	13.7	4,050	35.8	4,306	57.9	2,666	57.2
	February 29, 2020		48,859	(8.2)		2,981	(43.8)		2,727	(42.4)		1,696	(46.0)
	(Note) Comprehensive income: Six months ended February 28, 2021: ¥3,070 million [74.5 %]
				Six months ended February 29, 2020: ¥1,760 million [(45.6 %)]
				Basic profit per	Diluted profit per
				share			share
	Six months ended		Yen			Yen
	February 28, 2021	125.70		104.83
	February 29, 2020		79.96		66.77

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of February 28, 2021	138,695	48,882	33.6
As of August 31, 2020	136,927	46,341	32.3

(Reference) Equity: As of February 28, 2021: ¥46,635 million As of August 31, 2020: ¥44,279 million

2. Dividends

Annual dividends

1st 2nd 3rd Year-end Total quarter-endquarter-endquarter-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
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):

February 28, 2021: 21,217,600 shares

August 31, 2020: 21,217,600 shares

1. Total number of treasury shares at the end of the period: February 28, 2021: 521 shares
   August 31, 2020: 521 shares
2. Average number of shares during the period:

Six months ended February 28, 2021: 21,217,079 shares

Six months ended February 29, 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).

Supplementary briefing materials will be posted on the Company's website within one week after the announcement of financial results.

Quarterly Consolidated Financial Statements and Primary Notes

(1) Quarterly Consolidated Balance Sheets

		(Thousand yen)
	As of August 31, 2020	As of February 28, 2021
Assets
Current assets
Cash and deposits	28,470,636	27,393,230
Notes and accounts receivable-trade	3,968,997	5,347,484
Real estate for sale	30,419,580	33,973,737
Real estate for sale in process	38,880,531	37,365,824
Costs on construction contracts in progress	969,691	1,110,176
Other	3,041,288	1,934,046
Allowance for doubtful accounts	(61,952)	(80,999)
Total current assets	105,688,774	107,043,502
Non-current assets
Property, plant and equipment
Buildings and structures	6,601,997	7,264,033
Accumulated depreciation	(1,940,000)	(2,220,181)
Buildings and structures, net	4,661,996	5,043,852
Land	14,743,476	14,536,170
Other	1,076,033	468,307
Accumulated depreciation	(276,409)	(293,004)
Other, net	799,623	175,302
Total property, plant and equipment	20,205,096	19,755,325
Intangible assets	1,769,146	1,775,033
Investments and other assets
Other	9,381,965	10,243,274
Allowance for doubtful accounts	(117,736)	(121,751)
Total investments and other assets	9,264,229	10,121,522
Total non-current assets	31,238,472	31,651,881
Total assets	136,927,246	138,695,384

1

																							(Thousand yen)
														As of August 31, 2020	As of February 28, 2021
	Liabilities
		Current liabilities
			Notes and accounts payable - trade		8,625,661		10,035,057
			Short-term borrowings	24,543,968		24,692,338
			Current portion of long-term borrowings		7,335,359		7,748,865
			Current portion of bonds payable	840,000		844,000
			Income taxes payable		1,595,139		1,559,553
			Provision for bonuses	362,452		391,640
			Other		3,302,218		3,529,760
			Total current liabilities		46,604,799		48,801,215
		Non-current liabilities
			Bonds payable		4,484,500		4,060,500
			Convertible bond-type bonds with share acquisition		10,000,000		10,000,000
			rights
			Long-term borrowings		27,553,098		24,936,326
			Retirement benefit liability		635,732		647,550
			Asset retirement obligations						328,118						331,159
			Other		979,938		1,035,905
			Total non-current liabilities						43,981,388					41,011,441
		Total liabilities		90,586,188		89,812,657
	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					44,198,311
			Treasury shares		(462)	(462)
			Total shareholders' equity						44,618,865					46,776,646
		Accumulated other comprehensive income
			Valuation difference on available-for-sale securities				(170,847)				(12,896)
			Foreign currency translation adjustment		(115,293)	(82,831)
			Remeasurements of defined benefit plans				(52,909)				(45,645)
			Total accumulated other comprehensive income		(339,050)	(141,373)
		Non-controlling interests					2,061,244					2,247,454
		Total net assets		46,341,058		48,882,727
	Total liabilities and net assets			136,927,246				138,695,384

2

1. Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income
   Six Months Ended February 28 and 29

									(Thousand yen)
						For the six months	For the six months
						ended February 29, 2020	ended February 28, 2021
	Net sales	48,859,266	55,532,490
	Cost of sales	41,968,104	47,131,684
	Gross profit	6,891,162	8,400,806
	Selling, general and administrative expenses	3,909,572	4,350,399
	Operating profit	2,981,590	4,050,406
	Non-operating income
	Interest income	17,578	39,113
	Dividend income	46,032	121
	Foreign exchange gains	54,531	7,541
	Cancellation income of advance money on a contract	8,300	4,300
	Subsidy income	-		186,190
	Surrender value of insurance policies	-			113,913
	Consumption taxes refund	-		134,734
	Other		99,907			139,866
	Total non-operating income	226,349	625,781
	Non-operating expenses
		Interest expenses	295,260	295,782
		Commission such as financings		176,466			47,019
		Other	9,099	26,895
		Total non-operating expenses			480,825			369,697
	Ordinary profit	2,727,114	4,306,490
	Extraordinary income
	Gain on sales of non-current assets	-		45,753
		Total extraordinary income		-			45,753
	Profit before income taxes	2,727,114	4,352,243
Income taxes		906,813		1,479,481
	Profit	1,820,301	2,872,762
	Profit attributable to non-controlling interests		123,794			205,771
	Profit attributable to owners of parent	1,696,506	2,666,990

3

Quarterly Consolidated Statements of Comprehensive Income

Six Months Ended February 28

		(Thousand yen)
	For the six months	For the six months
	ended February 29, 2020	ended February 28, 2021
Profit	1,820,301	2,872,762
Other comprehensive income
Valuation difference on available-for-sale securities	(93,718)	157,951
Foreign currency translation adjustment	28,433	32,461
Remeasurements of defined benefit plans, net of tax	5,030	7,263
Total other comprehensive income	(60,253)	197,677
Comprehensive income	1,760,047	3,070,439
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	1,636,252	2,864,668
Comprehensive income attributable to non-controlling	123,794	205,771
interests

4

(4) Quarterly Consolidated Statements of Cash Flows

				(Thousand yen)
		For the six months	For the six months
		ended February 29, 2020	ended February 28, 2021
Cash flows from operating activities
Profit before income taxes	2,727,114		4,352,243
Depreciation		288,665		338,133
Amortization of goodwill	9,665		49,315
Increase (decrease) in allowance for doubtful accounts		46,471		23,061
Increase (decrease) in provision for bonuses	(68,159)		29,187
Increase (decrease) in retirement benefit liability		33,930		11,817
Interest and dividend income	(63,610)		(39,235)
Interest expenses		295,260		295,782
Loss (gain) on sales of non-current assets	-		(45,753)
Surrender value of insurance policies		-		(113,913)
Decrease (increase) in trade receivables		(1,025,957)		(1,378,487)
Decrease (increase) in inventories		(11,905,633)		(2,120,733)
Decrease (increase) in advance payments - trade		(263,503)		975,877
Decrease (increase) in advances paid		(648,176)		(25,712)
Increase (decrease) in trade payables		(836,453)		1,409,395
Increase (decrease) in advances received		187,492		547,047
Increase (decrease) in leasehold and guarantee deposits		54,146		(13,081)
received
Other, net		(440,556)		(124,493)
Subtotal		(11,609,304)		4,170,451
Interest and dividends received		31,885		39,235
Interest paid		(309,742)		(263,032)
Income taxes paid		(1,747,079)		(1,589,106)
Net cash provided by (used in) operating activities		(13,634,240)		2,357,548
Cash flows from investing activities
Payments into time deposits		(18,654)		(20,358)
Proceeds from withdrawal of time deposits		712,653		154,844
Purchase of property, plant and equipment		(215,913)		(53,933)
Proceeds from sales of property, plant and equipment		34		204,348
Purchase of intangible assets		(39,800)		(29,130)
Purchase of investment securities		(14,746)		(142,657)
Proceeds from share of profits on investment securities		733,151		-
Proceeds from cancellation of insurance funds		-		250,508
Loan advances to subsidiaries and associates		(496,263)		(445,502)
Collection of loans receivable to subsidiaries and		54,665		-
affiliates
Other, net		(123,374)		(241,506)
Net cash provided by (used in) investing activities		591,751		(323,387)
Cash flows from financing activities
Proceeds from short-term borrowings		32,508,664		21,521,825
Repayments of short-term borrowings		(25,040,034)		(21,373,455)
Proceeds from long-term borrowings		8,495,500		6,799,722
Repayments of long-term borrowings		(8,809,293)		(9,002,989)
Redemption of bonds		(413,000)		(420,000)
Dividends paid		(509,589)		(509,527)
Dividends paid to non-controlling interests		(14,670)		(19,560)
Other, net		10,122		(6,805)
Net cash provided by (used in) financing activities		6,227,699		(3,010,790)
Effect of exchange rate change on cash and cash equivalents		(10,501)		33,710
Net increase (decrease) in cash and cash equivalents		(6,825,290)		(942,919)
Cash and cash equivalents at beginning of period		23,810,049		27,755,076
Cash and cash equivalents at end of period		16,984,759		26,812,157

5