和田興産（8931） – Non-consolidated Financial Results for the Year Ended February 28,2022 [Japanese GAAP]

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail. April 08, 2022 Non-consolidated Financial Results for the Year Ended February 28, 2022 [Japanese GAAP] Company name: WADAKOHSAN CORPORATION Stock exchange listing: Tokyo Code number: 8931 URL: http://www.wadakohsan.co.jp Representative: Takero Takashima Contact: Toshiya Mizomoto Phone: +81-78-361-1510 Scheduled date of Annual General Meeting of Shareholders: May 27, 2022 Scheduled date of commencing dividend payments: May 30, 2022 Scheduled date of filing annual securities report: May 30, 2022 Availability of supplementary briefing material on annual financial results: Yes Schedule of annual financial results briefing session: Yes (for institutional investors and analysts, in Japanese) President and Representative Director Managing Director (Amounts of less than one million yen are rounded down) 1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (March 01, 2021 to February 28, 2022) (1) Non-consolidated Operating Results Operating profit Ordinary profit (% indicates changes from the previous corresponding period.) Net income Net sales Fiscal year ended February 28, 2022 February 28, 2021 Million yen 41,785 39,806 % 5.0 (0.7) Million yen 3,883 2,737 % 41.9 (16.8) Million yen 3,162 1,918 % 64.9 (21.5) Million yen 2,337 1,267 % 84.3 (28.8) Basic earnings per share Diluted earnings per share Rate of return on equity Ordinary profit to total assets ratio Operating profit to net sales ratio Fiscal year ended February 28, 2022 February 28, 2021 Yen 210.55 114.22 Yen – – % 9.1 5.2 (Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended February 28, 2022: Fiscal year ended February 28, 2021: % 3.3 2.1 ¥ ¥ % 9.3 6.9 – million – million (2) Non-consolidated Financial Position As of February 28, 2022 February 28, 2021 Total assets Net assets Capital adequacy ratio Net assets per share Million yen 98,302 92,335 Million yen 26,656 24,882 % 27.1 26.9 Yen 2,401.56 2,241.71 (Reference) Equity: As of February 28, 2022: As of February 28, 2021: (3) Non-consolidated Cash Flows ¥ ¥ 26,656 million 24,882 million Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at the end of period Million yen 190 (1) Million yen (3,116) (587) Million yen 14,689 9,391 Fiscal year ended February 28, 2022 February 28, 2021 Million yen 8,223 3,718 2. Dividends February 28, 2021 February 28, 2022 Fiscal year ending February 28, 2023 (Forecast) Fiscal year ended Yen Yen Yen Yen Million yen Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Total dividends Payout ratio Dividends to net assets Yen 0.00 18.00 21.00 – – – – – – 35.00 35.00 22.00 40.00 388 443 % 30.6 19.0 21.00 42.00 23.3 % 1.6 1.7 (Note) Breakdown of the year-end dividend for the fiscal year ended February 28, 2022 : Commemorative dividend Special dividend – yen – yen 3. Non-consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2023 (March 01, 2022 to February 28, 2023) (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Net income Six months ended August 31, 2022 Full year Million yen % Million yen % Million yen % Million yen 19,000 42,000 8.6 0.5 1,700 3,700 12.4 1,300 9.3 900 (4.7) 2,900 (8.3) 2,000 (14.4) Basic earnings per share Yen 81.08 180.18 % 9.6 * Notes: (1) Changes in accounting policies, changes in accounting estimates and retrospective restatement 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 (2) Total number of issued shares (common shares) February 28, 2022: February 28, 2021: 11,100,000 shares 11,100,000 shares 1) Total number of issued shares at the end of the period (including treasury shares): 2) Total number of treasury shares at the end of the period: February 28, 2022: February 28, 2021: 248 shares 248 shares 3) Average number of shares during the period: Fiscal Year ended February 28, 2022: Fiscal Year ended February 28, 2021: 11,099,752 shares 11,099,752 shares * Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation. * Proper use of earnings forecasts, and other special matters Forward-looking statements in this document, including the forecasts of financial results, etc., are based on the information currently available to the Company and certain assumptions deemed to be reasonable. Actual performance and other results may differ materially from these forecasts are due to various factors. Non-consolidated Financial Statements Non-consolidated Balance Sheets (Thousand yen) As of February 28,2021 As of February 28,2022 Prepaid expenses Accumulated depreciation Machinery and equipment, net Accumulated depreciation Buildings, net Structures Accumulated depreciation Cash and deposits Accounts receivable – trade Lease receivables Real estate for sale Real estate for sale in process Other Allowance for doubtful accounts Total current assets Assets Current assets Non-current assets Total assets Property, plant and equipment Buildings Structures, net Machinery and equipment Tools, furniture and fixtures Land Leased assets Accumulated depreciation Leased assets, net Construction in progress Total property, plant and equipment Intangible assets Leasehold interests in land Other Total intangible assets Investments and other assets Investment securities Shares of subsidiaries and associates Investments in capital Distressed receivables Deferred tax assets Guarantee deposits Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Accumulated depreciation Tools, furniture and fixtures, net Software ―1― 11,835,033 13,696 855,330 11,145,111 39,447,762 70,080 251,483 (8,154) 63,610,343 19,832,765 (7,432,296) 12,400,468 238,977 (176,158) 62,819 513,311 (513,235) 75 251,241 (209,840) 41,400 13,651,976 10,705 (959) 9,745 130,924 26,297,411 598,631 14,525 7,601 620,759 311,547 125,000 3,090 16,750 403,402 216,874 747,348 (16,892) 1,807,120 28,725,291 92,335,634 17,007,822 8,011 836,448 10,478,002 40,872,549 90,855 660,781 (9,110) 69,945,361 20,049,424 (7,741,740) 12,307,683 256,400 (181,259) 75,141 513,311 (513,287) 24 265,795 (225,884) 39,911 13,220,208 17,923 (3,025) 14,897 13,810 25,671,676 598,631 11,308 7,934 617,874 300,318 125,000 3,200 15,456 501,645 215,600 921,666 (15,587) 2,067,300 28,356,851 98,302,213 (Thousand yen) As of February 28,2021 As of February 28,2022 Liabilities Current liabilities Accounts payable – trade Electronically recorded obligations – operating Short-term borrowings Current portion of bonds payable Current portion of long-term borrowings Accounts payable – other Accounts payable – facilities Accrued expenses Income taxes payable Accrued consumption taxes Advances received Deposits received Lease obligations Unearned revenue Provision for bonuses Provision for bonuses for directors (and other officers) Provision for warranties for completed construction Asset retirement obligations Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Long-term guarantee deposits Provision for retirement benefits Provision for retirement benefits for directors (and other officers) Lease obligations Asset retirement obligations Other Total non-current liabilities Total liabilities 3,974,482 3,699,557 9,114,200 324,500 10,094,998 222,131 4,433 57,398 266,149 78,646 4,028,325 91,901 1,576 155,445 119,865 8,075 13,000 4,738 10,110 32,269,534 610,050 33,049,655 409,986 229,244 516,185 9,208 290,259 69,132 35,183,723 67,453,257 4,012,434 9,191,830 7,307,600 224,300 20,855,637 408,836 10,773 40,542 672,171 508,326 4,202,226 96,894 2,237 155,523 121,507 8,475 21,000 – 8,424 47,848,740 385,750 21,893,935 362,419 232,631 547,883 14,149 324,277 35,736 23,796,782 71,645,523 ―2― (Thousand yen) As of February 28,2021 As of February 28,2022 Net assets Shareholders’ equity Share capital Capital surplus Legal capital surplus Total capital surplus Retained earnings Legal retained earnings Other retained earnings General reserve Total retained earnings Treasury shares Total shareholders’ equity Valuation and translation adjustments Valuation difference on available-for-sale securities Deferred gains or losses on hedges Total valuation and translation adjustments Total net assets Total liabilities and net assets Retained earnings brought forward 1,403,091 1,448,280 1,448,280 20,100 13,000,000 9,088,356 22,108,456 (121) 24,959,705 (29,336) (47,991) (77,328) 24,882,377 92,335,634 1,403,091 1,448,280 1,448,280 20,100 13,000,000 10,837,073 23,857,173 (121) 26,708,423 (26,924) (24,808) (51,733) 26,656,690 98,302,213 ―3― Non-consolidated Statements of Income Net sales Real estate sales Rent income of real estate and other Total net sales Cost of sales Cost of sales – real estate Cost of real estate lease revenue Total cost of sales Gross profit Selling, general and administrative expenses Advertising expenses Sample room expenses Provision of allowance for doubtful accounts Remuneration for directors (and other officers) Salaries and allowances Provision for bonuses Provision for bonuses for directors (and other officers) Retirement benefit expenses Provision for retirement benefits for directors (and other officers) Welfare expenses Total selling, general and administrative expenses Taxes and dues Depreciation Commission expenses Rent expenses Other Operating profit Non-operating income Interest income Dividend income Foreign exchange gains Commission income Surrender value of insurance policies Interest on tax refund Other Total non-operating income Non-operating expenses Interest expenses Financing expenses Other Total non-operating expenses Ordinary profit (Thousand yen) For the fiscal year ended February 28,2021 For the fiscal year ended February 28,2022 36,551,204 3,255,574 39,806,779 31,380,981 1,737,115 33,118,097 6,688,681 942,438 507,945 200 216,800 728,071 119,865 8,075 36,177 31,150 157,839 746,749 22,168 175,492 23,364 234,610 3,950,948 2,737,732 526 4,578 – 4,152 4,439 3,275 4,418 21,391 680,137 103,235 57,705 841,078 1,918,045 38,545,808 3,240,003 41,785,812 32,006,668 1,793,017 33,799,685 7,986,127 979,142 484,286 924 226,025 832,339 121,507 8,475 38,473 34,097 177,386 760,820 26,667 167,913 26,403 217,953 233 4,868 9,415 12,104 11,213 – 9,878 47,713 4,102,415 3,883,712 636,865 102,746 29,383 768,995 3,162,430 ―4― Extraordinary income Gain on sale of non-current assets Total extraordinary income Extraordinary losses Loss on sale of non-current assets Impairment losses Loss on retirement of non-current assets Loss on valuation of investment securities Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit (Thousand yen) For the fiscal year ended February 28,2021 For the fiscal year ended February 28,2022 153,878 153,878 65,134 73,330 24,221 – 162,686 1,909,237 664,000 (22,529) 641,470 1,267,767 125,145 125,145 2,850 93,766 1,630 12,780 111,028 3,176,548 948,000 (108,455) 839,544 2,337,004 ―5― Non-consolidated Statements of Changes in Net Assets For the fiscal year ended February 28,2021 Balance at beginning of period Changes during period Dividends of surplus Profit Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning of period Changes during period Dividends of surplus Profit Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (Thousand yen) Shareholders’ equity Capital surplus Share capital Legal capital surplus Total capital surplus Legal retained earnings Total retained earnings Retained earnings Other retained earnings Retained earnings brought forward General reserve 1,403,091 1,448,280 1,448,280 20,100 13,000,000 8,209,080 21,229,180 1,403,091 1,448,280 1,448,280 20,100 13,000,000 9,088,356 22,108,456 (388,491) (388,491) 1,267,767 1,267,767 – 879,276 879,276 – – – Shareholders’ equity Valuation and translation adjustments Treasury shares Total shareholders’ equity Valuation difference on available-for-sale securities Deferred gains or losses on hedges Total valuation and translation adjustments Total net assets (121) 24,080,429 (24,099) (77,634) (101,734) 23,978,695 (388,491) 1,267,767 (388,491) 1,267,767 (5,236) 29,642 24,406 24,406 – 879,276 (5,236) 29,642 24,406 903,682 (121) 24,959,705 (29,336) (47,991) (77,328) 24,882,377 – ―6― Balance at beginning of period Changes during period Dividends of surplus Profit Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning of period Changes during period Dividends of surplus Profit Net changes in items other than shareholders’ equity Total changes during period Balance at end of period For the fiscal year ended February 28,2022 (Thousand yen) Shareholders’ equity Capital surplus Share capital Legal capital surplus Total capital surplus Legal retained earnings Total retained earnings 1,403,091 1,448,280 1,448,280 20,100 13,000,000 9,088,356 22,108,456 Retained earnings Other retained earnings Retained earnings brought forward General reserve 1,403,091 1,448,280 1,448,280 20,100 13,000,000 10,837,073 23,857,173 (588,286) (588,286) 2,337,004 2,337,004 – 1,748,717 1,748,717 – – – – Shareholders’ equity Valuation and translation adjustments Treasury shares Total shareholders’ equity Valuation difference on available-for-sale securities Deferred gains or losses on hedges Total valuation and translation adjustments Total net assets (121) 24,959,705 (29,336) (47,991) (77,328) 24,882,377 (588,286) 2,337,004 (588,286) 2,337,004 2,411 23,183 25,595 25,595 – 1,748,717 2,411 23,183 25,595 1,774,312 (121) 26,708,423 (26,924) (24,808) (51,733) 26,656,690 ―7― Non-consolidated Statements of Cash Flows Cash flows from operating activities Profit before income taxes Depreciation Impairment losses Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Increase (decrease) in provision for warranties for completed construction Increase (decrease) in provision for retirement benefits Increase (decrease) in provision for retirement benefits for directors (and other officers) Interest and dividend income Interest expenses Loss (gain) on sale of property, plant and equipment Loss (gain) on valuation of investment securities Loss on retirement of property, plant and equipment Decrease (increase) in trade receivables Decrease (increase) in lease receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in advances received Increase (decrease) in long-term guarantee deposits received Decrease (increase) in other assets Increase (decrease) in other liabilities Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Net decrease (increase) in time deposits Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Other payments Other proceeds Net cash provided by (used in) investing activities (Thousand yen) For the fiscal year ended February 28,2021 For the fiscal year ended February 28,2022 1,909,237 708,163 73,330 200 3,102 175 5,000 4,713 31,150 (5,105) 680,137 (88,743) – 33,335 (1,629) 17,580 (555,416) 928,111 1,232,562 (42,036) 255,418 31,613 5,220,900 4,410 (676,525) (830,519) 3,718,265 219,902 (847,950) 710,190 (8,836) (110,650) 36,288 (1,055) 3,176,548 733,537 93,766 (348) 1,642 400 8,000 3,387 31,697 (5,101) 636,865 (122,294) 12,780 2,378 5,684 18,882 (1,019,120) 5,530,225 173,900 (47,567) (428,615) 630,495 9,437,143 5,193 (665,146) (553,626) 8,223,563 (5,029) (695,058) 932,153 (1,860) (122,258) 82,644 190,589 ―8― Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from issuance of bonds Redemption of bonds Dividends paid Repayments of lease obligations Net cash provided by (used in) financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (Thousand yen) For the fiscal year ended February 28,2021 For the fiscal year ended February 28,2022 583,700 13,057,400 (14,231,403) 400,000 (8,500) (388,565) – (587,368) 3,129,841 6,261,495 9,391,337 (1,806,600) 12,891,604 (13,286,685) – (324,500) (587,938) (2,272) (3,116,392) 5,297,760 9,391,337 14,689,097 ―9―