タカミヤ（2445） – Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

FOR TRANSLATION PURPOSE ONLY 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. May 12, 2022 Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Based on Japanese GAAP) TAKAMIYA CO., LTD. Tokyo (Prime Market) 2445 Representative Director, President and Chairman KAZUMASA TAKAMIYA Company name: Stock exchange listing: Stock code: Representative: Scheduled date of ordinary general meeting of shareholders: Scheduled date to commence dividend payments: Scheduled quarterly report submission date: Preparation of supplementary material on financial results: Holding of financial results meeting: Yes (from the viewpoint of preventing wider spread of the new coronavirus infections, June 23, 2022 June 8, 2022 June 23, 2022 Yes https://www.takamiya.co/ URL: this meeting will be held by means of video streaming.) 1. Consolidated Financial Results for the Year Ended March 31, 2022 (April 1, 2021 to March 31,2022) (1) Consolidated operating results Percentages indicate year-on-year changes (Amounts less than one million yen are rounded down) Fiscal Year ended March 31, 2022 Fiscal Year ended March 31, 2021 (Note) Comprehensive income Net sales Operating income Ordinary income Profit attributable to owners of parent Million yen % Million yen Million yen % Million yen 39,800 2.5 1,682 1,954 24.5 965 % 6.0 38,812 (15.7) 1,586 (57.2) 1,569 (55.7) 857 (63.8) Fiscal Year Ended March 31, 2022: 1,189 million yen 36.5% Fiscal Year Ended March 31, 2021: 871 million yen (61.5%) Earnings per share Diluted earnings per share Ordinary income total assets Operating income margin Profit attributable to owners of parent/equity Fiscal Year ended March 31, 2022 Fiscal Year ended March 31, 2021 (Reference) Equity in earnings of affiliates Yen 20.73 18.41 Yen 20.10 17.89 % 5.2 4.7 % 3.4 2.7 Fiscal year Ended March 31, 2022: – million yen Fiscal year Ended March 31, 2021: – million yen % 12.6 % 4.2 4.1 Total assets Net assets Capital adequacy ratio Net assets per share (2) Consolidated financial position Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 (Reference) Shareholders’ equity (3) Consolidated Cash Flows Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 Million yen 59,081 56,454 Million yen 4,294 5,035 Fiscal year Ended March 31, 2022: 18,773 million yen Fiscal year Ended March 31, 2021: 18,253 million yen Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Million yen 19,337 18,768 Million yen (2,979) (1,382) % 31.8 32.3 Yen 403.04 391.96 Cash and cash equivalents at end of period Million yen 8,516 7,712 Million yen (588) (2,873) FOR TRANSLATION PURPOSE ONLY 2. Cash dividends Fiscal Year ended March 31, 2021 Fiscal Year ended March 31, 2022 Fiscal Year ended March 31, 2023 (Forecast) Annual dividends per share End 1Q End 2Q End 3Q End 4Q Total Total cash dividends Dividend payout ratio (consolidated) Ratio of dividends to net assets (consolidated) Yen Yen Yen Yen Million yen Yen 6.00 6.00 6.00 – – – – – – 8.00 14.00 8.00 14.00 8.00 14.00 651 652 % 76.0 67.5 45.0 % 3.6 3.5 3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023) Net sales Operating income Ordinary income Percentages indicate year-on-year changes Profit attributable to owners of parent Earnings per share 2Q Full year Million yen 21,600 45,000 % 7.9 13.1 Million yen 650 2,300 % (14.4) 36.7 Million yen 600 2,150 % (33.1) 10.0 Million yen 350 1,450 % 29.4 50.2 Yen 7.51 31.13 FOR TRANSLATION PURPOSE ONLY Notes (1) Changes in significant subsidiaries during the current quarter consolidated cumulative period (Changes in specified subsidiaries resulting in changes in the scope of consolidation): None (2) Changes in accounting policies, changes in accounting estimates, and restatements ① Changes in accounting policies due to revision of accounting standards, etc.: Yes ② Changes in accounting policies other than ① above: None ③ Changes in accounting estimates: None ④ Restatement: None (Note) For details, please refer to “3. Quarterly Consolidated Financial Statements and Main Notes (5) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)” on page 12 of the attached materials. (3) Number of shares issued (common stock) ① Total number of issued shares at the end of the period (including treasury shares) As of March 31, 2022 46,585,600 shares As of March 31, 2021 46,577,000 shares ② Number of treasury shares at the end of the period ③ Average number of shares during the period As of March 31, 2022 7,020 shares As of March 31, 2021 7,020 shares As of March 31, 2022 46,576,577 shares As of March 31, 2021 46,569,980 shares (Reference) Summary of Non-Consolidated Financial Results Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022) (1) Non-consolidated operating results Percentage figures represent changes from the previous fiscal year. Net sales Operating income Ordinary income Profit attributable to owners of parent Million yen 33,424 % 2.6 Million yen % Million yen % Million yen % 726 (22.8) 1,175 (2.6) 513 (36.2) 32,576 (14.4) 940 (61.4) 1,207 (51.6) 805 (53.9) Earnings per share Diluted earnings per share Yen 11.03 17.30 Million yen 51,432 49,392 Yen 10.70 16.81 Million yen 17,297 17,399 % 32.9 34.5 Yen 363.11 365.95 Total assets Net assets Capital adequacy ratio Net assets per share Fiscal Year ended March 31, 2022 Fiscal Year ended March 31, 2021 Fiscal Year ended March 31, 2022 Fiscal Year ended March 31, 2021 (2) Non-consolidated financial position Fiscal Year ended March 31, 2022 Fiscal Year ended March 31, 2021 (Reference) Shareholders’ equity Fiscal year ended March 31, 2022: 16,913 million yen Fiscal year ended March 31, 2021: 17,042 million yen * The quarterly financial statements are not subject to audit by certified public accountants or auditing firms. *Explanation of the appropriate use of financial forecasts and other special notes (Cautionary Note Regarding Forward-Looking Statements, etc.) The forward-looking statements, including business forecasts, contained in this document are based on information currently available to the Company and on certain assumptions deemed reasonable, and are not intended as a promise by the Company that they will be achieved. Actual results may differ materially due to a variety of factors. Please refer to Attachment P.3 “1. Summary of Business Results, etc. (4) Prospects for the future” for the conditions that are the premise of the business forecast and precautions when using the business forecast. (How to obtain supplementary explanatory materials for financial results) Supplementary materials for financial results are scheduled to be posted on the Company’s website. (How to obtain information on financial results) We are planning to distribute a video presentation of our financial results on our website. (Change in the unit of presentation of amounts) The amounts of items and other matters presented in the Company’s quarterly consolidated financial statements used to be stated in thousand yen, but from the first quarter of the current fiscal year and the first quarter of the current fiscal year, they are stated in million yen. For ease of comparison, the figures for the previous consolidated fiscal year and the Second quarter of the previous consolidated fiscal year have also been reclassified into million yen. FOR TRANSLATION PURPOSE ONLY Table of contents of attached documents 1. Summary of Business Results, etc. …………………………………………………………………………………………………………………………….. (1) Explanation of business results for the current fiscal year ………………………………………………………………………………………. (2) Explanation of financial position for the current fiscal year ………………………………………………………………………… (3) Summary of cash flows for the current fiscal year …………………………………………………………………………………………. (4) Prospects for the future …………………………………………………………………………………………………………………………………….. 2. Basic concept regarding the selection of accounting standards ………………………………………………………………………………………. 3. Consolidated financial statements and major notes………………………………………………………………………………………………………… (1) Consolidated balance sheets ………………………………………………………………………………………………………………………………. (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income….…………………….………. Consolidated statements of income ………………………………………………………………………………………………………………….. Consolidated Statements of Comprehensive Income …………………………………………………………………………………………… (3) Consolidated Statement of Changes in Net Assets………………………………………………………………………………………………… (4) Consolidated Statements of Cash Flows ……………………………………………………………………………………………………………… (5) Notes to quarterly consolidated financial statements……………………………………………………………………………………………… (Going concern assumption) ……………………………………………………………………………………………………………………………… (Changes in accounting policies) (Segment information) ……………………………………………………………………………………………………………………………………… (Per share information) …………………………………………………………………………………………………………………………………….. (Significant subsequent events) ………………………………………………………………………………………………………………………. 2 2 2 3 3 3 4 4 6 6 7 8 10 12 12 12 12 14 14 1 FOR TRANSLATION PURPOSE ONLY 1. Summary of Business Results, etc. (1) Explanation of business results for the current fiscal year During the current fiscal year, the global economy has been picking up as economic activity has been repeatedly restricted and eased because of the new coronavirus infection. However, the outlook remains uncertain due to soaring raw material prices and geopolitical risks such as the situation in Russia and Ukraine. The domestic construction industry, to which the Group is associated, started in a difficult situation due to the interruption or delay of construction work at some sites of private construction work and the postponement of construction work. However, the trend of recovery was seen mainly in the renovation work in the metropolitan area. Overseas, in the Philippines, where the sales subsidiary is located, business activities are restricted by the government’s measures to restrict going out and moving. In Vietnam, where the manufacturing subsidiary is located, the severe situation continued, with the same restrictions as in the Philippines being temporarily set. In such an environment, the Group has a management vision of ” Create new value through transformation and aim for sustainable growth by becoming a partner to our customers.” in its medium-term management plan announced on May 31, 2021. And we will work on the following four measures: Develop services that blend hardware and software, with a focus on the Iq System, Strengthen products for maintenance/repairs and infrastructure redevelopment, Nurture businesses beyond the temporary equipment sector, and Redevelop overseas business bases. As a result, for the current fiscal year, the Company posted net sales of 39,800 million yen (up 2.5% year-on-year), operating income of 1,682 million yen (up 6.0% year-on-year), ordinary income of 1,954 million yen (up 24.5% year-on-year), and Profit attributable to owners of parent of 965 million yen (up 12.6% year-on-year). Operating results by segment are as follows. (Sales business) In the temporary construction segment, Interest in the “Iq System” was still high, and inquiries for both new and continuing projects were firm. Due to the restrictions on going out and moving in Vietnam, there was a temporary decrease in production, but shipments were favorable. In areas other than the temporary division, sales related to agriculture increased due to the construction of high-performance glass As a result, net sales were 13,629 million yen (up 13.7% year-on-year) and operating income was 1,633 million yen (up 16.3% year-houses for agriculture. on-year). (Rental Business) In the private sector, the utilization of rental asset of the “Iq System” remained high, mainly for maintenance and repair work in the Tokyo metropolitan area, while severe conditions continued, such as interruptions and delays in construction work and postponement of construction work. On the other hand, the utilization rate of rental assets decreased due to delays in large-scale sites expected in the construction and civil engineering fields and postponement of construction starts. In terms of profits, the segment profit margin declined due to an increase in the fixed cost ratio such as depreciation expenses due to the decrease in the utilization rate of rental assets. As a result, net sales were 23,283 million yen (down 3.0% year on year), and operating income was 1,221 million yen (down 31.9% year on year). (Overseas Business) At DIMENSION-ALL INC. (Philippines), a sales subsidiary, business activity restrictions continued due to restrictions on going out and moving in Manila, and although the situation was severe, we worked to reduce SG & A expenses and promote profit improvement. In addition, at our manufacturing subsidiary, Holly Vietnam (Vietnam), business activities were restricted due to temporary restrictions on going out and moving by the government, and the production volume of products for Japan also temporarily declined. However, there was no significant impact on the procurement of raw materials and parts, and sales were favorable and sales increased. As a result, net sales were 6,410 million yen (up 20.9% year on year), and operating income was 277 million yen (Operating loss of 99 million yen in the same quarter of the previous year). (2) Explanation of financial position for the current fiscal year Total assets at the end of the current fiscal year were 59,081 million yen, an increase of 2,626 million yen compared to the end of the previous fiscal year. This was mainly due to an increase in cash and deposit of 804 million yen, a decrease in Notes and accounts receivable – trade of 840 million yen, an increase in Raw materials and supplies of 614 million yen, a decrease of 1,032 million yen in rental assets (net), an increase in Buildings and structures (net) of 1,511 million yen. Total liabilities amounted to 39,744 million yen, an increase of 2,058 million yen from the end of the previous consolidated fiscal year. This was mainly due to increase in Notes and accounts payable – trade of 1,271 million yen, a decrease of 866 million yen in short-term loans payable, an increase in bonds payable (including corporate bonds scheduled to be redeemed within one year) of 1,129 million yen. Total net assets amounted to 19,337 million yen, an increase of 568 million yen from the end of the previous fiscal year. This was mainly due to an increase of 313 million yen in Retained earnings, an increase in Foreign currency translation adjustments of 203 million yen. 2 FOR TRANSLATION PURPOSE ONLY (3) Summary of cash flows for the current fiscal year Cash and cash equivalents at the end of the current fiscal year increased by 804 million yen compared to the end of the previous fiscal year to 8,516 million yen (up 10.4% year on year). The status of each cash flow and their factors during the current consolidated fiscal year are as follows. (Cash flows from operating activities) Cash flows from operating activities resulted in revenue of 4,294 million yen (for comparison, it was 5,035 million yen in the previous fiscal year). This is mainly due to Profit before income taxes of 1,666 million yen, depreciation of 4,784 million yen, Increase in notes and accounts payable – trade of 1,204 million yen, Increase in inventories of 2,966 million yen. (Cash flows from investing activities) Cash flows from investing activities resulted in expenditure of 2,979 million yen (for comparison, it was 1,382 million yen in the previous fiscal year). This is mainly due to Purchase of property, plant and equipment of 2,955 million yen. (Cash flows from financing activities) Cash flows from financing activities resulted in expenditure of 588 million yen (for comparison, it was 2,873million yen in the previous year). This is mainly due to proceeds from long-term loans payable of 6,610 million yen, Proceeds from issuance of bonds of 1,957 million yen, Net decrease in short-term loans payable of 910 million yen, Repayments of long-term loans payable of 6,333 million yen, Redemption of bonds of 871 million yen. (4) Prospects for the future Regarding the prospects for the future, as the effects of the re-expansion of the new coronavirus infection continue, there are signs of recovery due to restraint measures such as vaccination and recovery of economic activities in various countries around the world. Due to concerns about geopolitical risks caused by the situation in Russia and Ukraine, there are large uncertainties about economic growth such as rising prices due to the effects of soaring energy prices and grain prices, and the outlook remains uncertain. Under these circumstances, the Company has set a vision of “Create new value through transformation and aim for sustainable growth by becoming a partner to our customers.” in its medium-term management plan with the fiscal year ended March 31, 2022 as the first year, and will work toward its realization. In the domestic construction industry, we can see the resilience centered on the maintenance and repair work of social infrastructure against the background of the national resilience plan. However, due to the rapid depreciation of the yen, private capital investment will be affected by soaring energy prices and construction material prices. Therefore, it is necessary to carefully assess demand trends, especially in the first half of the fiscal year ending March 2023, such as rising construction costs and delays in the start of construction. On the other hand, from the third quarter onward, we will continue to steadily receive orders for construction and civil engineering work, which is expected to start construction in the rental business. In the sales business, we will establish a system to increase production of our main product, the Iq System, which is expected to exceed the demand for the current consolidated fiscal year, and strive to provide a stable product supply that does not miss the demand period. In the overseas business, although measures to curb economic activities due to the new coronavirus infection have been eased and are steadily recovering, we expect that the difficult business environment will continue due to soaring energy prices and steel prices. Although the impact of the restraint on economic activities is deep-rooted and we cannot expect a strong recovery in capital investment demand, we will steadily accumulate orders for formwork materials and timber support, which are expected to have strong demand. On the other hand, in the manufacturing sector, although the impact of soaring material prices cannot be ignored, Demand for the “Iq System” in Japan is expected to remain firm. As a result of these activities, the full year consolidated financial results forecast for the fiscal year ending March 31,2023 is expected to be net sales of 45,000 million yen, operating income of 2,300 million yen, and ordinary income of 2,150 million yen, Profit attributable to owners of parent of 1,450 million yen. 2. Basic concept regarding the selection of accounting standards The Group will prepare consolidated financial statements based on Japanese standards for the time being, taking into consideration the comparability of consolidated financial statements over the period and the comparability between companies. Regarding the application of international accounting standards, we will take appropriate measures in consideration of domestic and overseas situations. 3 FOR TRANSLATION PURPOSE ONLY 3. Consolidated financial statements and major notes (1) Consolidated Balance Sheet Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Unit: Million yen) Assets Current assets Cash and deposits Notes and accounts receivable – trade Trade notes receivable Trade accounts receivable Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Assets for rent Accumulated depreciation – Assets for rent Assets for rent (net) Buildings and structures Accumulated depreciation and impairment loss Buildings and structures (net) Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles (net) Land Lease assets Accumulated depreciation Lease assets, net Construction in progress Other Accumulated depreciation Other (net) Total tangible assets Intangible assets Leasehold right Other Total intangible assets Investments and other assets Investment securities Guarantee deposits Net defined benefit asset Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 8,032 11,675 – – 3,184 893 1,023 525 (427) 24,907 38,687 (25,475) 13,212 7,904 (3,755) 4,148 2,839 (1,608) 27,480 1,231 7,849 1,091 (611) 479 195 1,354 (990) 363 327 498 826 504 710 84 774 1,199 (33) 3,240 31,547 56,454 38,502 (26,323) 8,836 – 2,657 8,177 3,748 1,193 1,638 725 (295) 26,681 12,179 9,738 (4,078) 5,659 3,157 (1,920) 1,237 7,851 1,232 (820) 411 451 1,687 (1,148) 539 28,329 327 459 787 432 749 74 766 1,292 (33) 3,282 32,399 59,081 4 Fiscal year ended March 31, 2021 Fiscal year ending March 31, 2022 (Unit: Million yen) FOR TRANSLATION PURPOSE ONLY Liabilities Current liabilities Notes and accounts payable – trade Short-term loans payable Current portion of bonds Current portion of long-term loans payable Lease obligations Income taxes payable Provision for bonuses Notes payable – facilities Other Total current liabilities Non-current liabilities Bonds payable Long-term debt Lease obligations Net defined benefit liability Asset retirement obligations Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustments Remeasurements of defined benefit plans Total accumulated other comprehensive income Subscription rights to shares Non-controlling interests Total net assets Total liabilities and net assets 5,668 3,478 871 6,308 368 353 296 344 1,864 19,554 3,278 11,354 1,145 1,001 13 1,339 18,131 37,685 1,050 1,908 15,392 (3) 18,347 55 (6) (104) (38) (94) 357 157 18,768 56,454 6,940 2,612 1,047 6,001 374 440 337 147 2,132 20,035 4,230 11,942 905 1,023 19 1,585 19,708 39,744 1,052 1,910 15,705 (3) 18,665 55 (6) 98 (39) 108 384 179 19,337 59,081 5 FOR TRANSLATION PURPOSE ONLY (Consolidated statements of income) (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Unit: Million yen) Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Rent income Contribution for Assets for rent Income from sale of scrap Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expense Commission fee Bond issuance cost Other Total non-operating expenses Ordinary income Extraordinary income Gain on sales of non-current assets Gain on sales of investment securities Total extraordinary income Extraordinary loss Loss on retirement of non-current assets Loss on valuation of investment securities Impairment loss Total extraordinary loss Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent 38,812 27,815 10,996 9,410 1,586 7 13 75 14 85 47 141 385 239 75 9 78 11 – 11 14 – 108 122 582 (2) 580 878 20 857 39,800 28,619 11,181 9,499 1,682 4 10 88 15 150 211 137 618 206 68 38 33 36 53 90 5 329 43 378 661 16 678 987 22 965 402 1,569 346 1,954 1,458 1,666 6 FOR TRANSLATION PURPOSE ONLY (Consolidated Statements of Comprehensive Income) Net income (loss) Other comprehensive income (loss) Valuation difference on available-for-sale securities Deferred gains (losses) on hedges Foreign currency translation adjustments Remeasurements of defined benefit plans, net of tax Total other comprehensive income (loss) Comprehensive income (Breakdown) Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Unit: Million yen) 878 39 8 (81) 26 (6) 871 851 20 987 0 0 203 (1) 202 1,189 1,167 22 7 FOR TRANSLATION PURPOSE ONLY (3) Consolidated Statement of Changes in Net Assets Previous consolidated fiscal year (April 1, 2020 to March 31, 2021) (Unit: Million yen) Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity 1,050 1,908 15,186 (3) 18,142 – – (651) 857 205 15,392 – (3) – – (651) 857 205 18,347 1,050 1,908 Accumulated other comprehensive income (loss) Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustments Remeasurements of defined benefit plans Total accumulated other comprehensive income (loss) Stock acquisition rights Non-controlling interests Total net assets 16 (15) (23) (65) (87) 306 137 18,497 39 39 55 8 8 (81) (81) 26 26 (6) (6) 51 51 20 20 – (651) 857 65 271 (6) (104) (38) (94) 357 157 18,768 Balance at the beginning of current period Changes during the period Issuance of new shares (Exercise of new shares acquisition rights) Dividends from Surplus Profit attributable to owners of parent Changes in items other than shareholders’ equity (net) Total changes of items during the period Balance at the end of current period Balance at the beginning of current period Changes during the period Issuance of new shares (Exercise of new shares acquisition rights) Dividends from Surplus Profit attributable to owners of parent Changes in items other than shareholders’ equity (net) Total changes of items during the period Balance at the end of current period 8 FOR TRANSLATION PURPOSE ONLY Current consolidated fiscal year (From April 1, 2021 to March 31, 2022) (Unit: Million yen) Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity 1,050 1,908 15,392 (3) 18,347 2 2 2 2 (652) 965 313 15,705 – (3) 1,052 1,910 Balance at the beginning of current period Changes during the period Issuance of new shares (Exercise of new shares acquisition rights) Dividends from Surplus Profit attributable to owners of parent Changes in items other than shareholders’ equity (net) Total changes of items during the period Balance at the end of current period Accumulated other comprehensive income (loss) Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustments Remeasurements of defined benefit plans Stock acquisition rights Deferred gains or losses on hedges Non-controlling interests Foreign currency translation adjustments Valuation difference on available-for-sale securities Total net assets Remeasurements of defined benefit plans 55 (6) (104) (38) (94) 357 157 18,768 0 0 (6) 203 203 98 (1) (1) (39) 202 202 108 26 26 22 22 384 179 19,337 Balance at the beginning of current period Changes during the period Issuance of new shares (Exercise of new shares acquisition rights) Dividends from Surplus Profit attributable to owners of parent Changes in items other than shareholders’ equity (net) Total changes of items during the period Balance at the end of current period 0 0 55 4 (652) 965 – 317 18,665 4 (652) 965 250 568 9 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Unit: Million yen) FOR TRANSLATION PURPOSE ONLY (4) Consolidated Statements of Cash Flows Cash flows from operating activities Profit before income taxes Depreciation Impairment loss Amortization of goodwill Loss on retirement of Assets for rent Loss on sales of Assets for rent Purchase of assets for rent Contribution for Assets for rent Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in net defined benefit liability Share-based compensation expenses Interest and dividends income Interest expense Foreign exchange loss (gain) Loss (gain) on sales of property, plant and equipment Loss on retirement of property, plant and equipment Loss (gain) on sales of investment securities Loss (gain) on valuation of investment securities Decrease (increase) in notes and accounts receivable – trade Decrease (increase) in inventories Increase (decrease) in notes and accounts payable – trade Other, net Subtotal Interest and dividend income received Interest expenses paid Income taxes paid Net cash provided by (used in) operating activities 1,458 4,815 108 53 83 45 (909) (14) 64 3 47 51 (21) 239 (69) (11) 13 – – 2,546 (1,596) (800) 120 6,230 25 (240) (979) 5,035 1,666 4,784 43 – 44 60 (611) (15) (146) 41 17 30 (15) 206 (233) (36) 4 (53) 329 936 (2,966) 1,204 (217) 5,073 7 (203) (582) 4,294 10 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Unit: Million yen) FOR TRANSLATION PURPOSE ONLY Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of property, plant and equipment Proceeds from sales of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sales of investment securities Payments of loans receivable Collection of loans receivable Other, net Net cash provided by (used in) investing activities Cash flows from financing activities Net increase (decrease) in short-term loans payable Repayments of lease obligations Proceeds from long-term loans payable Repayments of long-term loans payable Proceeds from issuance of bonds Redemption of bonds Cash dividends paid Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (460) 460 (1,209) 13 (188) (3) – (110) 115 – (1,382) (1,992) (336) 5,820 (5,831) 539 (421) (651) (2,873) 10 789 6,922 7,712 (460) 460 (2,955) 149 (69) (275) 86 – 100 (15) (2,979) (910) (389) 6,610 (6,333) 1,957 (871) (652) (588) 77 804 7,712 8,516 11 FOR TRANSLATION PURPOSE ONLY (5) Notes to quarterly consolidated financial statements (Going concern assumption) Not applicable. (Changes in accounting policies) (Application of accounting standards for revenue recognition) Promised goods or services by applying “Accounting Standard for Revenue Recognition” (Corporate Accounting Standard No. 29, March 31, 2020) from the beginning of the current consolidated fiscal year. When the control of is transferred to the customer, the revenue will be recognized by the amount expected to be received in exchange for the goods or services. The application of the Accounting Standard for Revenue Recognition, etc. follows the transitional treatment stipulated in the proviso of Paragraph 84 of the Accounting Standard for Revenue Recognition and is cumulative when the new accounting policy is retroactively applied before the beginning of the current consolidated fiscal year. The amount of impact is added to or subtracted from retained earnings at the beginning of the current consolidated fiscal year, and a new accounting policy is applied from the balance at the beginning of the period. However, the new accounting policy has not been retroactively applied to contracts that apply the method stipulated in Article 86 of the Accounting Standard for Revenue Recognition and recognize almost all revenue amounts in accordance with the previous treatment before the beginning of the current consolidated fiscal year. As a result, the impact on the consolidated financial statements will be minor. Due to the application of Accounting Standard for Revenue Recognition, “Notes receivable and accounts receivable” displayed in “Current assets” in the consolidated balance sheet for the previous consolidated fiscal year will be included in ” Trade notes receivable” and “Trade accounts receivable” from the beginning current consolidated fiscal year. In accordance with the transitional treatment stipulated in Article 89-2 of the Accounting Standard for Revenue Recognition, the previous consolidated fiscal year has not been reclassified using the new presentation method. Furthermore, in accordance with the transitional treatment stipulated in Section 89-3 of the Accounting Standard for Revenue Recognition, we do not provide information on the decomposition of revenue generated from contracts with customers for the previous consolidated fiscal year. (Application of accounting standards for calculation of market value) “Accounting Standard for Market Value Calculation” (Corporate Accounting Standard No. 30, July 4, 2019; hereinafter referred to as “Market Value Calculation Accounting Standard”), etc. will be applied from the beginning of the first quarter consolidated accounting period, and the market value calculation accounting standard In accordance with the transitional treatment stipulated in Paragraph 19 and “Accounting Standards for Financial Instruments” (Corporate Accounting Standard No. 10 July 4, 2019), the new accounting policies stipulated by the market value calculation accounting standards, etc. , I decided to apply it in the future. This will not affect the quarterly consolidated financial statements. (Segment information) 1.Summary of reporting segments The Group’s reporting segments have separate financial information available from the Group’s constituent units and are subject to regular review by the Board of Directors to determine resource allocation decisions and assess performance. The Group has three reporting segments that are “Sales business” centered on the manufacture and sale of temporary construction equipment, “Rental business” centered on rental of temporary construction equipment and “Overseas business” centered on sales and rental of temporary construction equipment overseas. 2.How to calculate the amount of sales, profit or loss for each reporting segment The method of accounting for the reported business segments is in line with the accounting policies adopted to prepare the consolidated financial statements. consolidated financial statements. The method of accounting for the reported business segments is in line with the accounting policies adopted to prepare the Internal revenues and transfers between segments are based on prevailing market prices. Assets are not allocated to business segments, but depreciation expenses are allocated. 12 41,300 3,098 4,695 53 (2,488) (1,511) 120 – 38,812 1,586 4,815 53 FOR TRANSLATION PURPOSE ONLY 3. Information on the amount of sales, profit or loss for each reporting segment and revenue decomposition information Previous consolidated fiscal year (from April 1, 2020 to March 31, 2021) (Unit: Million yen) Amount allocated on consolidated statements of income (Note 3) Rental Business Overseas Business Adjustment (Note 1&2) Sales Business Total 11,732 23,891 3,188 38,812 38,812 258 117 2,488 (2,488) Notes 1. Adjustments for segment profit or loss of (1,511) million yen include elimination of transactions between segments of 209 million yen and company-wide expenses of (1,721) million yen not allocated to each reporting segment. Company-wide expenses are mainly general and administrative expenses that do not belong to the reporting segment. 2. The depreciation adjustment amount of 120 million yen is depreciation expense for company-wide assets that do not belong to each reporting segment. 3. Segment profit or loss is adjusted with operating profit on the consolidated income statement. Current consolidated fiscal year (from April 1, 2021 to March 31, 2022) (Unit: Million yen) Amount allocated on consolidated statements of income (Note 3) Rental Business Overseas Business Adjustment (Note 1&2) Sales Business Total Net sales Net sales to external customers Intersegment sales and transfers Net sales or transfer amount Total Segment income (loss) Other Depreciation Amortization of goodwill Net sales Income from contracts with customers Other income Net sales to external customers Intersegment sales and transfers Net sales or transfer amount Total Segment income Other Depreciation 11,990 1,404 298 – – 13,193 13,193 13,629 1,633 317 24,009 1,793 3,878 53 12,998 10,266 23,265 23,283 1,221 3,759 2,112 5,300 (99) 519 – 2,580 760 3,341 3,069 6,410 277 553 – – – – – – 28,773 11,027 39,800 39,800 1,682 4,784 28,773 11,027 39,800 43,323 3,133 4,630 (3,522) (1,451) 153 435 17 3,522 (3,522) Notes 1. Adjustments for segment profit of (1,451) million yen include elimination of transactions between segments of 289 million yen and company-wide expenses of (1,740) million yen not allocated to each reporting segment. Company-wide expenses are mainly general and administrative expenses that do not belong to the reporting segment. 2. The depreciation adjustment amount of 153 million yen is depreciation expense for company-wide assets that do not belong to each reporting segment. 3. Segment profit is adjusted with operating profit on the consolidated income statement. 4. Other income includes leasing income, etc. based on Accounting Standard No. 13 “Accounting Standard for Lease Transactions”. 4. Matters concerning changes in reporting segments, etc. As described in “Changes in Accounting Policy,” the revenue Accounting Standard for Revenue Recognition, etc. have been applied from the beginning of the current consolidated fiscal year. And because we changed the accounting method for revenue recognition, we also changed the method of calculating profit or loss for business segments. The impact of this change will be minor. 13 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 391.96 yen 18.41 yen 17.89 yen 403.04 yen 20.73 yen 20.10 yen Notes: 1. The basis for calculation of net income per share and diluted net income per share is as follows. Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 46,569 46,576 857 857 – – 1,360 1,360 18,768 515 357 157 18,253 46,569 965 965 – – 1,456 1,456 19,337 564 384 179 18,773 46,578 2. The basis for the calculation of net assets per share is as follows. – – Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 FOR TRANSLATION PURPOSE ONLY (Per share information) Net assets per share Net income per share Diluted earnings per share Net income per share Profit attributable to owners of parent (Million yen) Amount not attributable to common shareholders (Million yen) Profit attributable to owners of parent applicable to common stock (Million yen) Average number of shares of common stock during the period (Thousand shares) Diluted earnings per share Adjusted profit attributable to owners of parent (Million yen) Increase in number of common stocks (Thousand shares) number of shares with subscription rights (Thousand shares) Summary of residual securities not included in calculating diluted earnings per share, because of having no dilution effect Total net assets (Million yen) Deduction from total net assets (Million yen) With subscription rights (Million yen) For non-controlling shareholders (Million yen) End of period net assets applicable to common stock (Million yen) End of period number of share used for calculating net assets per share (Thousand shares) (Significant subsequent events) Not applicable 14