Warabeya Nichiyo : Summary of Consolidated Financial Results for the 1st quarter of the year ending February 28, 2022

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 31, 2021 (Based on Japanese GAAP)

				July 6, 2021
Company name:	WARABEYA NICHIYO HOLDINGS CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	2918	URL https://www.warabeya.co.jp/ja/index.html
Representative:	Representative Director, President	Hiroyuki Otomo
Inquiries:	Director, Managing Executive Officer	Naoshi Asano	TEL [phone]
Scheduled date to file Quarterly Securities Report:	July 7, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended May 31, 2021 (from March 1, 2021 to May 31, 2021)

(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 31, 2021		47,058	1.6	1,355	529.5			1,426	472.2	761	706.6
Three months ended May 31, 2020		46,330	(14.7)	215	(80.7)		249	(77.1)	94	(86.6)
(Note) Comprehensive income:	Three months ended May 31, 2021: ¥1,285 million [-%]
	Three months ended May 31, 2020: ¥99 million [(84.4)%]
			Earnings per share	Diluted earnings per share
						Yen				Yen
Three months ended May 31, 2021					43.64				-
Three months ended May 31, 2020					5.38				-
(2) Consolidated financial position
			Total assets		Net assets		Equity ratio
			Millions of yen	Millions of yen					%
As of May 31, 2021				80,500		44,920				55.5
As of February 28, 2021				82,273		44,372				53.7
(Reference) Equity capital:	As of May 31, 2021: ¥44,709 million
	As of February 28, 2021: ¥44,164 million
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 28, 2021			-		0.00			-			40.00			40.00
Year ending February 28, 2022			-
Year ending February 28, 2022 (Forecast)						0.00			-			40.00			40.00
(Note) Revisions to the most recently announced dividends forecasts: None
3. Forecast of consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 2022)
										(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	99,000	2.5	2,700	124.0	2,950	92.1		1,660	-			95.11
August 31, 2021
Full year	198,000	1.9	4,500	35.1	4,900	32.0		2,800	310.1			160.42
(Note) Revisions to the most recently announced financial forecasts: None
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* Notes
(1)	Changes in significant subsidiaries during the three months ended May 31, 2021	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
	Newly consolidated: -	Excluded: -
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	No

(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:	No
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 31, 2021	17,625,660	shares	As of February 28, 2021	17,625,660	shares
Number of treasury shares at the end of the period
As of May 31, 2021	169,623	shares	As of February 28, 2021	172,298	shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)

Three months ended May 31, 2021

17,454,293 shares Three months ended May 31, 2020

17,552,662 shares

(Note) The Company has established a BIP Trust. Shares of the Company held by the trust are included in treasury shares.

• This financial summary document is outside the scope of quarterly review conducted by certified public accountants or an audit corporation.
• Explanation of appropriate use of forecasts of financial results, and other important items:
  Financial forecasts and other forward-looking statements in this document are based on information available at the time of preparation and on certain assumptions that are deemed to be reasonable. These forward-looking statements are not guarantees of future performance and actual results may differ materially from these forecasts due to a variety of reasons.

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Quarterly consolidated financial statements

(1) Consolidated balance sheets

			(Millions of Yen)
		As of February 28, 2021	As of May 31, 2021
Assets
Current assets
Cash and deposits	8,946	7,200
Notes and accounts receivable - trade	16,101	16,139
Merchandise and finished goods	1,975	1,761
Raw materials and supplies	901	974
Other	1,508	1,503
Allowance for doubtful accounts	(0)	(21)
Total current assets	29,433	27,558
Non-current assets
Property, plant and equipment
Buildings and structures	56,157	56,535
Accumulated depreciation	(33,304)	(33,842)
Buildings and structures, net	22,852	22,692
Machinery, equipment and vehicles	18,497	18,755
Accumulated depreciation	(15,080)	(15,306)
Machinery, equipment and vehicles, net	3,417	3,449
Land	11,890	11,942
Construction in progress	38	288
Other	14,821	14,446
Accumulated depreciation	(8,542)	(8,424)
Other, net	6,278	6,022
Total property, plant and equipment	44,477	44,395
Intangible assets
Goodwill	153	140
Other	523	478
Total intangible assets	677	619
Investments and other assets
Other	7,852	8,063
Allowance for doubtful accounts	(166)	(134)
Total investments and other assets	7,685	7,928
Total non-current assets	52,840	52,942
Total assets		82,273	80,500

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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	9,195	8,928
Current portion of long-term borrowings	607	929
Accounts payable - other	8,251	6,675
Income taxes payable	812	573
Provision for bonuses	1,252	1,828
Provision for bonuses for directors (and other officers)	-	27
Other	3,419	3,198
Total current liabilities	23,539	22,161
Non-current liabilities
Long-term borrowings	2,806	2,400
Lease obligations	5,640	5,341
Retirement benefit liability	4,148	3,896
Provision for Directors stock-based rewards	179	167
Asset retirement obligations	1,411	1,426
Other	176	185
Total non-current liabilities	14,361	13,418
Total liabilities	37,900	35,580
Net assets
Shareholders' equity
Share capital	8,049	8,049
Capital surplus	8,100	8,100
Retained earnings	28,693	28,750
Treasury shares	(367)	(359)
Total shareholders' equity	44,475	44,541
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	116	162
Deferred gains or losses on hedges	1	1
Foreign currency translation adjustment	(262)	157
Remeasurements of defined benefit plans	(166)	(152)
Total accumulated other comprehensive income	(311)	168
Non-controlling interests	208	211
Total net assets	44,372	44,920
Total liabilities and net assets		82,273	80,500

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1. Consolidated statements of income and comprehensive income Consolidated statements of income

			(Millions of Yen)
		Three months ended	Three months ended
		May 31, 2020	May 31, 2021
Net sales	46,330	47,058
Cost of sales	39,293	38,721
Gross profit	7,037	8,337
Selling, general and administrative expenses	6,821	6,982
Operating profit	215	1,355
Non-operating income
Interest income	2	1
Dividend income	2	2
Rental income	44	43
Insurance claim income	27	31
Share of profit of entities accounted for using equity method	16	22
Other	11	49
Total non-operating income	105	150
Non-operating expenses
Interest expenses	28	23
Rental costs	32	35
Other	10	19
Total non-operating expenses	71	78
Ordinary profit	249	1,426
Extraordinary income
Gain on sales of non-current assets	61	-
Total extraordinary income	61	-
Extraordinary losses
Impairment loss	9	191
Total extraordinary losses	9	191
Profit before income taxes	301	1,235
Income taxes - current	267	630
Income taxes - deferred	(85)	(180)
Total income taxes	181	450
Profit	120	784
Profit attributable to non-controlling interests	25	22
Profit attributable to owners of parent		94	761

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