SHIMAMURA : (Delayed)Summary of Consolidated Financial Results for the Three Months Ended May 20,2022(Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Three Months Ended May 20, 2022 (Based on Japanese GAAP)

June 27, 2022

Company name:	SHIMAMURA Co.,Ltd.
Stock exchange listing:	Tokyo
Stock code:	8227	URL https://www.shimamura.gr.jp/
Representative:	President and Representative Director	Makoto Suzuki
Inquiries:	Planning Section General Manager	Makoto Oota	TEL [phone]
Scheduled date to file Quarterly Securities Report:	June 28, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for analysts and institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended May 20, 2022 (from February 21, 2022 to May 20, 2022)
(1) Consolidated operating results (cumulative)							Percentages indicate year-on-year changes
	Net sales			Operating profit	Ordinary profit	Profit attributable to
			owners of parent
	Millions of yen		%		Millions of yen		%	Millions of yen		%	Millions of yen	%
Three months ended May 20, 2022	149,319		4.8		14,615		12.3	14,959		12.5	10,212	15.1
Three months ended May 20, 2021	142,539		33.2		13,019		-	13,299		-	8,875	-
	Earnings per share			Diluted earnings per share
				Yen			Yen
Three months ended May 20, 2022			277.87				-
Three months ended May 20, 2021			241.51				-
(2) Consolidated financial position
	Total assets				Net assets		Equity ratio
	Millions of yen			Millions of yen				%
As of May 20, 2022	486,959		416,339				85.5
As of February 20, 2022	474,811		410,995				86.6

2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended February 20, 2022	-	110.00	-	130.00	240.00
Year ending February 20, 2023	-
Year ending February 20, 2023 (Forecast)		120.00	-	130.00	250.00

3. Forecast of consolidated financial results for the year ending February 20, 2023 (from February 21, 2022 to February 20, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Six months ending	296,385	4.1	25,598		1.0	26,070		0.9	18,263		4.8	496.95
August 20, 2022
Full year	606,608	3.9	52,058		5.3	52,998		4.8	37,197		5.0	1012.16

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4. Notes

(1) Changes in significant subsidiaries during the three months ended May 20, 2022

	(changes in specified subsidiaries resulting in the change in scope of consolidation):	No
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	Yes
(3)	Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
	Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
	Changes in accounting policies due to other reasons:	No
	Changes in accounting estimates:	No
	Restatement of prior period financial statements:	No
(4)	Number of issued shares (common shares)
	Total number of issued shares at the end of the period (including treasury shares)

	As of May 20, 2022	36,913,299	shares	As of February 20, 2022	36,913,299	shares
Number of treasury shares at the end of the period
	As of May 20, 2022	161,761	shares	As of February 20, 2022	163,341	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended May 20, 2022	36,751,017	shares	Three months ended May 20, 2021	36,748,956	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of February 20, 2022	As of May 20, 2022
Assets
Current assets
Cash and deposits	185,427	184,996
Accounts receivable - trade	8,509	12,934
Securities	49,000	49,000
Merchandise	52,599	61,866
Other	7,089	5,743
Total current assets	302,626	314,540
Non-current assets
Property, plant and equipment
Buildings and structures, net	87,459	87,130
Land	49,170	49,170
Other, net	2,402	2,596
Total property, plant and equipment	139,033	138,897
Intangible assets
Other	904	913
Total intangible assets	904	913
Investments and other assets
Guarantee deposits	17,739	18,208
Other	15,654	14,445
Allowance for doubtful accounts	(1,146)	(46)
Total investments and other assets	32,247	32,607
Total non-current assets	172,184	172,418
Total assets	474,811	486,959
Liabilities
Current liabilities
Accounts payable - trade	28,425	36,499
Income taxes payable	8,794	5,230
Provision for bonuses	3,927	4,722
Provision executive officers' bonuses	-	13
Other	13,286	14,646
Total current liabilities	54,433	61,113
Non-current liabilities
provision for part-time employees retirement	1,108	1,112
Provision for retirement benefits for directors (and other	117	118
officers)
Provision for executive officers' retirement benefits	175	200
Retirement benefit liability	1,483	1,527
Asset retirement obligations	6,047	6,106
Other	449	441
Total non-current liabilities	9,382	9,506
Total liabilities	63,815	70,619

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			(Millions of yen)
		As of February 20, 2022	As of May 20, 2022
Net assets
Shareholders' equity
Share capital	17,086	17,086
Capital surplus	18,641	18,645
Retained earnings	373,278	378,712
Treasury shares	(1,409)	(1,396)
Total shareholders' equity	407,595	413,048
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,586	3,534
Deferred gains or losses on hedges	11	(2)
Foreign currency translation adjustment	(196)	(237)
Remeasurements of defined benefit plans	(2)	(3)
Total accumulated other comprehensive income	3,399	3,290
Total net assets	410,995	416,339
Total liabilities and net assets	474,811	486,959

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		May 20, 2021	May 20, 2022
Net sales	142,539	149,319
Cost of sales	93,710	97,669
Gross profit	48,829	51,649
Operating revenue	255	336
Operating gross profit	49,085	51,986
Selling, general and administrative expenses	36,065	37,371
Operating profit	13,019	14,615
Non-operating income
Interest income	45	30
Dividend income	34	35
Gain on sale of investment securities	4	-
Gain on sales of packaging materials	31	38
Foreign exchange gains	121	181
Miscellaneous income	44	59
Total non-operating income	280	345
Non-operating expenses
Loss on processed gift certificates	0	0
Miscellaneous losses	0	0
Total non-operating expenses	1	1
Ordinary profit	13,299	14,959
Extraordinary income
Subsidies for employment adjustment	0	1
Total extraordinary income	0	1
Extraordinary losses
Loss on sale and retirement of non-current assets	46	18
Impairment losses	92	3
Loss on disaster	22	18
Loss on valuation of investment securities	114	-
Other	-	8
Total extraordinary losses	275	49
Profit before income taxes	13,024	14,911
Income taxes	4,149	4,699
Profit	8,875	10,212
Profit attributable to owners of parent	8,875	10,212

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