Wakita : Summary of Financial Results for the first quarter 2022

Consolidated Financial Results for the Three-Month Period of the Fiscal Year ending February 28, 2022

(Japanese GAAP)

July 9, 2021

Company Name: Wakita & Co., LTD.

Code Number: 8125

(URL: http://www.wakita.co.jp/)

Stock Exchange Listing: Tokyo Stock Exchange First Section

Representative: Teiji Wakita, President and Representative Director

Contact: Atsuhiko Nariyama, Executive Officer, General Manager of General Affairs Division

Phone: [phone]

Scheduled date to submit the Quarterly Financial Report: July 14, 2021

Scheduled date to commence dividend payment: -

Supplementary information for quarterly financial results: Available

Organization of quarterly financial results briefing: None

(Figures are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three-Month Period of Fiscal 2022 (From March 1, 2021 to May 31, 2021)

(1) Consolidated Results of Operations				(Percentage figures indicate changes from the same period of the previous year)
	Net sales				Operating profit		Ordinary profit	Profit attributable to
					owners of parent
Three-Month Period of	Millions of yen	%		Millions of yen	%		Millions of yen	%		Millions of yen	%
Fiscal 2022	17,675		(10.5)				1,755	16.9		1,753	12.6		1,091	13.9
Three-Month Period of
Fiscal 2021	19,753		0.2				1,501	(2.7)		1,557	(0.6)		958	(3.9)
(Note) Comprehensive income: Three-month period of fiscal 2022: ¥1,290 million [5.9%]
	Three-month period of fiscal 2021: ¥1,219 million [52.5%]
	Profit per share				Fully diluted profit per share
Three-Month Period of						Yen						Yen
				21.02						-
Fiscal 2022
Three-Month Period of					18.46						-
Fiscal 2021
(2) Consolidated Financial Position
	Total assets				Net assets				Equity ratio
Three-Month Period of	Millions of yen				Millions of yen				%
			134,705					96,880				71.5
Fiscal 2022
Fiscal 2021				137,477					97,150				70.3
(Reference) Equity: Three-	month period of fiscal 2022: ¥96,321 million
Fiscal 2021: ¥96,632 million
2. Dividends
						Cash dividends per share
	End of 1Q	End of 2Q	End of 3Q		Year-end	Total
	Yen		Yen	Yen	Yen		Yen
Fiscal 2021	-		0.00			-	30.00		30.00
Fiscal 2022	-
Fiscal 2022 (Forecast)					0.00			-	33.00		33.00

(Note) Revision to the dividend forecast from recently announced figures: None

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3. Forecast of Consolidated Financial Results for Fiscal 2022 (From March 1, 2021 to February 28, 2022)

					(Percentage	figures indicate changes	from the previous year)
	Net sales		Operating profit		Ordinary profit		Profit attributable to	Profit per share
				owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	75,200	1.6	5,700	5.1	5,800	2.4	3,500	9.7	67.39
(Note) Revision	to the financial forecast from recently announced figures: None

* Notes

1. Significant changes of subsidiaries during the period under review (affecting specific subsidiaries due to changes in scope of consolidation): None
   Companies added to the scope: None
   Companies removed from the scope: None
2. Adoption of special accounting treatment for preparing quarterly consolidated financial statements: Not applicable
3. Changes in accounting policies, changes in accounting estimates and restatements
4. 1. Changes in accounting policies due to the revision of accounting standards, etc.: Not applicable
   2. Any changes in accounting policies other than 1) above: Not applicable
   3. Changes in accounting estimates: Not applicable
   4. Restatements: Not applicable
5. Number of shares issued (common shares)
6. 1. Number of shares issued at the end of period (including treasury shares):

Three-month period of fiscal 2022: 52,021,297 shares

Fiscal 2021: 52,021,297 shares

1. Number of treasury shares at the end of period: Three-month period of fiscal 2022: 87,186 shares Fiscal 2021: 87,176 shares
2. Average number of shares during the period:

Three-month period of fiscal 2022: 51,934,114 shares

Three-month period of fiscal 2021: 51,934,329 shares

(Note) Treasury shares at the end of period are presented including the Company shares held by the Board Benefit Trust. Average numbers of shares during the period are calculated deducting treasury shares which include the Company shares held by the Board Benefit Trust.

*These Consolidated Financial Results are not subject to quarterly review by certified public accountants or an auditing firm.

• Explanation for the appropriate use of performance forecasts and other special notes:
  The performance forecasts and other descriptions on future events presented in this material are based on information that was available at the time of preparation of this material and based on certain assumptions considered to be reasonable, and not intended to guarantee their achievement. The actual performance, etc. may differ materially from these forecasts due to various factors.

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Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

			(Millions of yen)
		As of February 28, 2021	As of May 31, 2021
Assets
	Current assets
	Cash and deposits	21,124	21,226
	Notes and accounts receivable - trade	24,958	22,375
	Securities	5,373	5,870
	Merchandise	2,880	2,884
	Supplies	114	97
	Other	404	331
	Allowance for doubtful accounts	(102)	(93)
	Total current assets	54,754	52,693
	Non-current assets
	Property, plant and equipment
	Assets for rent, net	9,773	9,363
	Real estate for rent, net	43,141	42,970
	Land	8,281	8,281
	Other, net	6,026	6,138
	Total property, plant and equipment	67,222	66,753
	Intangible assets
	Goodwill	8,030	7,757
	Other	358	425
	Total intangible assets	8,388	8,183
	Investments and other assets
	Investment securities	4,703	4,798
	Retirement benefit asset	620	618
	Other	2,191	2,085
	Allowance for doubtful accounts	(403)	(427)
	Total investments and other assets	7,111	7,075
	Total non-current assets	82,722	82,011
	Total assets	137,477	134,705

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(Millions of yen)

As of February 28, 2021 As of May 31, 2021

Liabilities

Current liabilities

Notes and accounts payable - trade

Short-term borrowings

Current portion of long-term borrowings

Income taxes payable

Provision for bonuses

Other

Total current liabilities

Non-current liabilities

Long-term borrowings

Provision For Share Based Compensation Expenses For Directors

Provision for retirement benefits for directors (and other officers)

Retirement benefit liability

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges

Revaluation reserve for land

Remeasurements of defined benefit plans

14,771	13,239
1,540	1,480
3	3
1,309	789
350	731
7,236	6,951
25,210	23,194
3	2
74	81
15	16
213	222
14,809	14,305
15,116	14,629
40,327	37,824
13,821	13,821
16,627	16,627
67,064	66,596
(107)	(107)
97,406	96,937
1,251	1,331
(16)	64
(2,144)	(2,144)
135	131

Total accumulated other comprehensive income	(773)	(616)
Non-controlling interests	517	559
Total net assets	97,150	96,880
Total liabilities and net assets	137,477	134,705

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(2) Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income

(Three-Month Period of Consolidated Fiscal Year)

			(Millions of yen)
		Three-Month Period of	Three-Month Period of
		Fiscal 2021	Fiscal 2022
		(From March 1, 2020	(From March 1, 2021
		to May 31, 2020)	to May 31, 2021)
Net sales		19,753	17,675
Cost of sales	15,096	12,536
Provision of unrealized income on installment sales		84	23
Reversal of unrealized income on installment sales	101	79
Gross profit		4,674	5,195
Selling, general and administrative expenses		3,173	3,439
Operating profit		1,501	1,755

Non-operating income

Interest income

Dividend income

Purchase discounts

Foreign exchange gains

Gain on investments in investment partnerships Other

Total non-operating income

Non-operating expenses

Loss on cancellation of insurance policies Interest expenses

Other

Total non-operating expenses

Ordinary profit

Extraordinary income

Gain on sales of non-current assets

Gain on sales of investment securities

Total extraordinary income

Extraordinary losses

Loss on sales of non-current assets Loss on retirement of non-current assets

	5	3
	3	7
			9
	11
	7	11
			10
	33
	21	10
			53
	83
			24
	―
	25	25
	2	5
	27	55
	1,557	1,753
			0
	13
	―	28
			28
	13
			0
	―
	7	1

Total extraordinary losses		7	2
Profit before income taxes		1,563	1,780
Income taxes - current		678	728
Income taxes - deferred	(90)	(62)
Total income taxes		587	665
Profit		975	1,114
Profit attributable to non-controlling interests		16	23
Profit attributable to owners of parent		958	1,091

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