能美防災（6744） – [Delayed]Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Under Japanese GAAP)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. May 11, 2022 Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Under Japanese GAAP) Company name: NOHMI BOSAI LTD. Tokyo Stock Exchange Listing: 6744 Securities code: https://www.nohmi.co.jp/ URL: (Name) Takeshi Okamura, (Title) President and Representative Director Representative: (Name) Yasuhiro Ono, (Title) Executive Officer in charge of General Affairs Department Inquiries: Telephone: +81-3-3265-0214 Scheduled date of annual general meeting of shareholders: Scheduled date to commence dividend payments: Scheduled date to file annual securities report: Preparation of supplementary material on financial results: Holding of financial results briefing: June 28, 2022 June 29, 2022 June 28, 2022 Yes Yes (for institutional investors and analysts) 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (from April 1, 2021 to March (Amounts of less than one million yen are rounded down.) (1) Consolidated operating results (Percentages indicate year-on-year changes.) Net sales Operating income Ordinary income Net income attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % 112,913 4.6 12,633 14.3 13,155 14.4 9,351 22.7 107,897 (8.0) 11,053 (27.0) 11,494 (25.6) 7,620 (27.5) Note: Comprehensive income Fiscal year ended March 31, 2022: Fiscal year ended March 31, 2021: ¥9,892 million ¥8,488 million [16.5%] [(17.4)%] Net income per share Diluted net income per share Return on equity Yen 155.07 126.38 Yen – – Ratio of ordinary income to total assets Ratio of operating income to net sales % 8.8 7.7 % 9.1 8.3 % 11.2 10.2 31, 2022) Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 Reference: Share of profit (loss) of entities accounted for using equity method Fiscal year ended March 31, 2022: Fiscal year ended March 31, 2021: ¥286 million ¥216 million (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share Millions of yen Millions of yen 148,599 139,875 111,891 104,122 % 74.2 73.3 Yen 1,827.92 1,700.87 As of March 31, 2022: As of March 31, 2021: ¥110,250 million ¥102,560 million (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Millions of yen Millions of yen Millions of yen Millions of yen 3,559 15,829 (4,874) (4,343) (2,293) (2,234) 47,507 50,959 Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Total cash dividends (Total) Payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Yen Yen Yen Yen Yen Millions of yen – – – 16.50 18.00 20.00 – – – 16.50 33.00 18.00 36.00 1,993 2,175 20.00 40.00 % 26.1 23.2 33.7 % 2.0 2.1 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 Net sales Operating income Ordinary income Millions of yen % Millions of yen % Millions of yen % Millions of yen % First two quarters 44,600 (10.8) 1,400 (69.8) 1,500 (69.4) 950 (71.8) Full year 111,000 (1.7) 10,100 (20.1) 10,400 (20.9) 7,150 (23.5) Yen 15.75 118.57 (Percentages indicate year-on-year changes.) Net income attributable to owners of parent Net income per share As of March 31, 2022 As of March 31, 2021 Reference: Equity Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 2. Cash dividends Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ending March 31, 2023 (forecast) to March 31, 2023) * Notes (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in a change in the scope of consolidation): None (2) Changes in accounting policies, changes in accounting estimates and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (3) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) (ii) Number of treasury shares at the end of the period As of March 31, 2022 As of March 31, 2021 As of March 31, 2022 As of March 31, 2021 (iii) Average number of shares outstanding during the period Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 60,832,771 shares 60,832,771 shares 517,921 shares 533,785 shares 60,303,275 shares 60,299,069 shares [Reference] Overview of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March (1) Non-consolidated operating results (Percentages indicate year-on-year changes.) Net sales Operating income Ordinary income Net income Millions of yen % Millions of yen % Millions of yen % Millions of yen % 89,907 9.0 10,083 24.6 10,675 24.3 7,734 33.7 82,513 (8.3) 8,090 (30.8) 8,585 (29.3) 5,782 (32.0) Net income per share Diluted net income per share Yen 128.00 95.71 Yen – – (2) Non-consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share % 72.0 72.4 Yen 1,461.19 1,368.94 Millions of yen Millions of yen 122,676 114,257 88,295 82,714 As of March 31, 2022: As of March 31, 2021: ¥88,295 million ¥82,714 million 31, 2022) Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 As of March 31, 2022 As of March 31, 2021 Reference: Equity 2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023) (Percentages indicate year-on-year changes.) Net sales Ordinary profit Net income Net income per share Millions of yen % Millions of yen % Millions of yen % First two quarters Full year 33,800 (14.3) 84,700 (5.8) 1,600 (64.5) 8,350 (21.8) 1,150 (64.3) 5,900 (23.7) Yen 19.03 97.64 * These financial results are not subject to audit by certified public accountants or auditing firms. * Explanation of the proper use of financial results forecast and other notes The results forecast and other forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions deemed to be reasonable. Actual results may differ significantly due to various factors. For assumptions underlying the results forecast and notes on using them, please refer to “(4) Future Outlook” in “1. Overview of Operating Results, Etc.” on page 3 of the Attachments. NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 ○ Table of Contents of Attachments 1. Overview of Operating Results, Etc. …………………………………………………………………………………………… 2 (1) Overview of Operating Results for the Current Fiscal Year …………………………………………………….. 2 (2) Overview of Financial Position for the Current Fiscal Year …………………………………………………….. 2 (3) Overview of Cash Flows for the Current Fiscal Year ……………………………………………………………… 3 (4) Future Outlook …………………………………………………………………………………………………………………. 3 (5) Basic Policy on Profit Distribution and Dividends for the Current Fiscal Year and Next Fiscal Year ………………………………………………………………………………………………………….. 3 2. Basic Approach to the Selection of Accounting Standards ……………………………………………………………… 3 3. Consolidated Financial Statements and Key Notes ……………………………………………………………………….. 4 (1) Consolidated Balance Sheet ……………………………………………………………………………………………….. 4 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ……….. 6 (3) Consolidated Statement of Changes in Equity ………………………………………………………………………. 8 (4) Consolidated Statement of Cash Flows ………………………………………………………………………………. 10 (5) Notes to Consolidated Financial Statements ……………………………………………………………………….. 12 (Notes on Going Concern Assumptions) …………………………………………………………………………….. 12 (Changes in Accounting Policies) ………………………………………………………………………………………. 12 (Segment Information, Etc.) ……………………………………………………………………………………………… 13 (Per Share Information) ……………………………………………………………………………………………………. 17 (Significant Subsequent Events) ………………………………………………………………………………………… 17 (Statement of Net Sales, Orders Received and Order Backlog by Product) ……………………………… 18 4. Other …………………………………………………………………………………………………………………………………….. 19 Change of officers ………………………………………………………………………………………………………………….. 19 – 1 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 1. Overview of Operating Results, Etc. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the fiscal year under review. For this reason, year-on-year comparisons are made using figures based on different calculation methods. For details, please refer to “(5) Notes to Consolidated Financial Statements (Changes in Accounting Policies)” in “3. Consolidated Financial Statements and Key Notes.” (1) Overview of Operating Results for the Current Fiscal Year In the fiscal year under review, the Japanese economy remained in a difficult situation amid the continuing impact of COVID-19, despite signs of recovery partly due to the progress of vaccination and the effects of various policies. In the fire protection industry, although corporate profits and private capital investment showed signs of recovery, the future remains uncertain partly due to supply constraints of parts and rising raw material prices. Amid these circumstances, the Group formulated a three-year medium-term business plan starting from FY2019 entitled “Project 2021—Build Strong ‘On-site Capabilities’.” And under the vision and priority policies below, it has responded accurately and promptly to changing needs for safety and security and has worked to lay the foundations for dramatic growth. ○ Vision Toward Dramatic Growth Based on Strong “On-site Capabilities” ○ Priority policies 1) Improve human resource capabilities. 2) Improve business conceptualization and execution capabilities/improve operational precision and speed. 3) Strengthen group management. In the fiscal year under review, the medium-term business plan’s final year, we engaged in business activities while striving to prevent the spread of COVID-19, and as a result, orders received were ¥110,948 million (down 2.1% year-on-year) and net sales were ¥112,913 million (up 4.6% year-on-year). Because of a concentration of contracts with relatively high profitability, operating income was ¥12,633 million (up 14.3% year-on-year), ordinary income was ¥13,155 million (up 14.4% year-on-year) and net income attributable to owners of parent was ¥9,351 million (up 27.7% year-on-year). By business segment, net sales and operating income in the Fire Alarm Systems segment were ¥42,036 million (up 10.8% year-on-year) and ¥8,617 million (up 44.1% year-on-year), respectively. Net sales and operating income in the Fire Extinguishing Systems segment were ¥39,647 million (up 3.2% year-on-year) and ¥7,197 million (up 9.6% year-on-year), respectively. Net sales and operating income in the Maintenance Services segment were ¥26,299 million (down 1.5% year-on-year) and ¥4,854 million (down 10.0% year-on-year), respectively. Net sales and operating income in the Others segment were ¥4,929 million (up 1.8% year-on-year) and ¥46 million (down 81.6% year-on-year), respectively. (2) Overview of Financial Position for the Current Fiscal Year Total assets at the end of the fiscal year under review were ¥148,599 million, up ¥8,724 million from the end of the previous fiscal year. This was mainly due to an increase of ¥11,457million in notes and accounts receivable–trade, and contract assets, an increase of ¥1,046 million in software and an increase of ¥1,029 million in buildings and structures, despite a decrease of ¥3,523 million in costs on construction contracts in progress and a decrease of ¥3,386 million in cash and deposits. Liabilities grew ¥955 million from the end of the previous fiscal year to ¥36,708 million. This was mainly due to an increase of ¥1,042 million in income taxes payable. Net assets were up ¥7,769 million from the end of the previous fiscal year to ¥111,891 million, mainly due to an increase in retained earnings. – 2 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (3) Overview of Cash Flows for the Current Fiscal Year Cash and cash equivalents at the end of the fiscal year under review were ¥47,507 million, down ¥3,452 million from the end of the previous fiscal year. Details for each category of cash flow for the fiscal year under review were as follows. (Cash flows from operating activities) Net cash provided by operating activities amounted to ¥3,559 million (compared with ¥15,829 million provided in the previous fiscal year) mainly due to income before income taxes of ¥13,155 million and depreciation of ¥2,333 million, despite an increase of ¥8,342 million in trade receivables and contract assets and income taxes paid of ¥3,107 million. (Cash flows from investing activities) (Cash flows from financing activities) Net cash used in investing activities was ¥4,874 million (compared with ¥4,343 million used in the previous fiscal year) mainly due to purchase of non-current assets. Net cash used in financing activities was ¥2,293 million (compared with ¥2,234 million used in the previous fiscal year) mainly due to dividend payments. (4) Future Outlook The future economic outlook is expected to remain uncertain as it is still unclear when COVID-19 will subside. In the fire protection industry, close attention needs to be paid to the impact of supply constraints of parts, rising raw material prices and others. Amid these circumstances, the Group formulated the ideal image for FY2028 and the measures to achieve it in the form of the “Medium- to Long-term Vision 2028—We will Shape the Customers Expectations.” Starting in FY2022, we will take on the challenge of transforming ourselves into a company that can create even higher added value. Based on the above, with regard to the consolidated financial results forecast for the fiscal year ending March 31, 2023, we expect net sales of ¥111,000 million, operating income of ¥10,100 million, ordinary income of ¥10,400 million and net income attributable to owners of parent of ¥7,150 million. (5) Basic Policy on Profit Distribution and Dividends for the Current Fiscal Year and Next Fiscal Year The Company sets out its basic policy to pay stable dividends over the long term, and returns profits to shareholders comprehensively taking into account the dividend payout ratio and other factors, while striving to strengthen its financial structure in preparation for future business development. Under this policy, in addition to promoting the “Medium- to Long-term Vision 2028—We will Shape the Customers Expectations” starting from FY2022, the Company aims to enhance stable and continuous returns to shareholders targeting a consolidated dividend payout ratio of 40% by FY2024. With regard to dividends for the fiscal year under review, the year-end dividend will be ¥18 per share. As a result, including the interim dividend of ¥18 per share which has already been paid, the annual dividend for the fiscal year under review will total ¥36 per share. Based on the above, the annual dividend for the next fiscal year will be ¥40 per share, which includes interim and year-end dividends of ¥20 per share each. 2. Basic Approach to the Selection of Accounting Standards The Group plans to prepare consolidated financial statements in accordance with Japanese GAAP for the time being, taking into account the comparability of consolidated financial statements over time and between companies. Regarding the adoption of the International Financial Reporting Standards (IFRS), we will take appropriate measures in consideration of domestic and overseas circumstances. – 3 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 3. Consolidated Financial Statements and Key Notes (1) Consolidated Balance Sheet Assets Current assets Cash and deposits Notes and accounts receivable–trade Notes and accounts receivable–trade, and contract assets Merchandise and finished goods Work in process Raw materials and supplies Costs on construction contracts in progress Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures, net Machinery, equipment and vehicles, net Land Construction in progress Other, net Total property, plant and equipment Intangible assets Software Goodwill Other Total intangible assets Investments and other assets Investment securities Long-term loans receivable Retirement benefit asset Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets As of March 31, 2021 (Millions of yen) As of March 31, 2022 52,049 37,533 – 2,805 1,154 4,467 3,523 779 (370) 101,944 8,934 794 7,066 2,792 2,058 21,646 1,872 20 69 1,961 6,583 2 33 5,171 2,600 (69) 14,322 37,930 139,875 48,663 – 48,991 2,943 1,011 5,289 – 865 (540) 107,225 9,963 628 7,081 3,050 2,175 22,900 2,919 8 68 2,996 7,314 1 47 5,385 2,789 (61) 15,476 41,374 148,599 – 4 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 As of March 31, 2021 (Millions of yen) As of March 31, 2022 4,799 4,575 14 7,220 1,571 1,985 – 3,358 3 84 1,082 – 2,216 26,912 20 4 190 233 203 7,485 116 586 8,840 35,752 13,302 12,905 75,876 (280) 101,803 1,076 334 (654) 757 1,561 104,122 139,875 4,359 5,016 4 7,244 2,613 – 1,081 3,610 14 82 1,286 20 2,469 27,804 9 – 204 132 167 7,431 118 840 8,903 36,708 13,302 12,920 83,094 (272) 109,045 1,032 682 (509) 1,205 1,640 111,891 148,599 Liabilities Current liabilities Notes and accounts payable–trade Electronically recorded obligations–operating Short-term borrowings Accounts payable Income taxes payable Advances received on construction contracts in progress Contract liabilities Provision for bonuses Provision for product warranties Provision for warranties for completed construction Provision for loss on construction contracts Asset retirement obligations Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Provision for retirement benefits for directors (and other officers) Provision for product warranties Reserve for loss on construction performance guarantee Retirement benefit liability Asset retirement obligations 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 Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets – 5 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income Consolidated Statement of Income Fiscal year ended March 31, 2021 (Millions of yen) Fiscal year ended March 31, 2022 107,897 72,770 35,127 24,073 11,053 18 60 216 7 59 48 18 24 95 549 14 – 25 45 23 108 11,494 – – – – 15 – 367 383 11,111 3,436 (17) 3,418 7,692 71 7,620 112,913 74,151 38,762 26,128 12,633 22 72 286 － 57 48 14 15 97 615 9 21 26 6 30 94 13,155 36 14 13 63 36 25 0 63 13,155 4,096 (208) 3,887 9,267 (84) 9,351 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Share of profit of entities accounted for using equity method Foreign exchange gains Rental income Subsidy income Insurance return Dividend income of insurance Other Total non-operating income Non-operating expenses Interest expenses Foreign exchange losses Rental expenses Commitment fees Other Total non-operating expenses Ordinary income Extraordinary income Reversal of reserve for loss on construction performance guarantee Gain on sale of non-current assets Gain on sale of investment securities Total extraordinary income Extraordinary losses Loss on disposal of non-current assets Impairment losses Loss on valuation of investment securities Total extraordinary losses Income before income taxes Income taxes–current Income taxes–deferred Total income taxes Net income Net income (loss) attributable to non-controlling interests Net income attributable to owners of parent – 6 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 Consolidated Statement of Comprehensive Income Net income Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests Fiscal year ended March 31, 2021 (Millions of yen) Fiscal year ended March 31, 2022 7,692 404 47 341 2 795 8,488 8,400 87 9,267 (44) 524 144 0 625 9,892 9,799 92 – 7 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (3) Consolidated Statement of Changes in Equity Fiscal year ended March 31, 2021 Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares (Millions of yen) Total shareholders’ equity 13,302 12,868 70,279 (280) 96,170 Balance at beginning of period Cumulative effects of changes in accounting policies Restated balance Changes during period Dividends of surplus Net income attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Restricted stock compensation Purchase of shares of consolidated subsidiaries Net changes in items other than shareholders’ equity Balance at beginning of period Cumulative effects of changes in accounting policies Restated balance Changes during period Dividends of surplus Net income attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Restricted stock compensation Purchase of shares of consolidated subsidiaries Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Total changes during period Balance at end of period – 13,302 36 12,905 5,596 75,876 (0) (280) 5,633 101,803 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasure-ments of defined benefit plans Total accumulated other comprehen-sive income Non-controlling interests Total net assets 669 303 (995) (22) 1,523 97,671 669 303 (995) (22) 1,523 13,302 12,868 70,279 (2,024) 7,620 (280) (0) 36 31 31 334 – 8 – – 96,170 (2,024) 7,620 (0) – – 36 – 97,671 (2,024) 7,620 (0) – – 36 817 6,450 104,122 407 407 1,076 341 341 △654 779 779 757 37 37 1,561 NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 Fiscal year ended March 31, 2022 Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares (Millions of yen) Total shareholders’ equity 13,302 12,905 75,876 (280) 101,803 13,302 12,905 (48) 75,827 (2,084) 9,351 (48) 101,755 (2,084) 9,351 0 15 7 – (280) 0 5 2 (0) (48) 104,073 (2,084) 9,351 0 15 7 – Total changes during period Balance at end of period – 13,302 15 12,920 7,266 83,094 8 (272) 7,290 109,045 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasure-ments of defined benefit plans Total accumulated other comprehen-sive income Non-controlling interests Total net assets 1,076 334 (654) 757 1,561 104,122 1,076 334 (654) 757 1,561 Balance at beginning of period Cumulative effects of changes in accounting policies Restated balance Changes during period Dividends of surplus Net income attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Restricted stock compensation Purchase of shares of consolidated subsidiaries Net changes in items other than shareholders’ equity Balance at beginning of period Cumulative effects of changes in accounting policies Restated balance Changes during period Dividends of surplus Net income attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Restricted stock compensation Purchase of shares of consolidated subsidiaries Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 10 5 – 9 – (44) (44) 1,032 347 347 682 144 144 (509) 447 447 1,205 79 527 79 1,640 7,817 111,891 NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 Fiscal year ended March 31, 2021 (Millions of yen) Fiscal year ended March 31, 2022 (4) Consolidated Statement of Cash Flows Cash flows from operating activities Income before income taxes Depreciation Impairment losses Amortization of goodwill Share-based payment expenses Increase (decrease) in allowance for doubtful accounts Increase (decrease) in retirement benefit liability Increase (decrease) in provision for retirement benefits for directors (and other officers) Increase (decrease) in provision for bonuses Increase (decrease) in provision for product warranties Increase (decrease) in provision for warranties for completed construction Increase (decrease) in provision for loss on construction contracts Increase (decrease) in provision for loss on construction performance guarantee Interest and dividend income Insurance return Interest expenses Share of loss (profit) of entities accounted for using equity method Loss (gain) on disposal of non-current assets Loss (gain) on valuation of investment securities Loss (gain) on sale of investment securities Decrease (increase) in trade receivables Decrease (increase) in trade receivables and contractual assets Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in advances received on construction contracts in progress Increase (decrease) in contract liabilities Other Subtotal Interest and dividends received Interest paid Income tax paid Cash flows from operating activities Cash flows from investing activities Net decrease (increase) in time deposits Payments into long-term deposits Proceeds from withdrawal of long-term deposits Purchase of non-current assets Proceeds from sale of non-current assets Purchase of investment securities Proceeds from sale of investment securities Proceeds from collection of loans receivable Proceeds from cancellation of insurance funds Other Cash flows from investing activities – 10 – 11,111 2,208 – 11 – (21) 69 19 (147) 38 27 203 – (79) (18) 14 (216) 15 367 – 6,627 – 2,125 179 (1,532) – (547) 20,457 78 (14) (4,691) 15,829 5 – – (4,228) 3 (224) 2 29 281 (211) (4,343) 13,155 2,333 25 11 5 150 152 14 242 (89) (1) 462 (36) (94) (14) 9 (286) 22 0 (10) – (8,342) (591) (231) – (250) (62) 6,574 101 (9) (3,107) 3,559 (54) (90) 90 (4,194) 51 (552) 46 1 47 (219) (4,874) NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 Fiscal year ended March 31, 2021 (Millions of yen) Fiscal year ended March 31, 2022 Cash flows from financing activities Repayments of long-term borrowings Redemption of bonds Purchase of shares of subsidiaries not resulting in change in scope of consolidation Dividends paid Dividends paid to non-controlling interests Net decrease (increase) in treasury shares Other Cash flows from financing activities Effect of exchange rate change 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 (18) (61) (2) (2,024) (10) (0) (116) (2,234) 13 9,264 41,694 50,959 (14) (41) – (2,084) (13) 2 (142) (2,293) 155 (3,452) 50,959 47,507 – 11 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (5) Notes to Consolidated Financial Statements (Notes on Going Concern Assumptions) Not applicable. (Changes in Accounting Policies) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020; hereinafter referred to as “Revenue Recognition Accounting Standard”), etc. from the beginning of the fiscal year under review, and recognizes revenue when control over the promised goods or services are transferred to customers in the amount expected to be received in exchange for the said goods or services. As a result, while the Company used to apply the percentage-of-completion method to construction contracts whose outcomes are deemed certain to progress and the completed-contract method to other construction contracts, for performance obligations that are to be fulfilled over a certain period of time, it has changed to a method of recognizing revenue over a certain period of time based on the estimated progress in fulfilling performance obligations. The progress in fulfilling performance obligations is measured based on the ratio of construction costs incurred by the end of each reporting period to the total estimated construction costs. If it is not possible to reasonably estimate the progress in fulfilling performance obligations at the initial stage of a contract, but the costs to be incurred are expected to be recovered, revenue is recognized on a cost recovery basis. In applying the Revenue Recognition Accounting Standard, etc., the Company has followed the transitional treatment prescribed in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard. The cumulative effect of the retrospective application, assuming the new accounting policy had been applied prior to the beginning of the fiscal year under review, is added to or subtracted from retained earnings at the beginning of the fiscal year under review, and the new accounting policy is applied from the beginning of the period. However, applying the method prescribed in Paragraph 86 of the Revenue Recognition Accounting Standard, the Company does not retroactively apply the new accounting policy to contracts where almost all of the revenue was recognized in accordance with the conventional method prior to the beginning of the fiscal year under review. In addition, applying the method prescribed in (1) of Paragraph 86 of the Revenue Recognition Accounting Standard, the Company accounts for all contract changes made prior to the beginning of the fiscal year under review based on the contract terms after reflecting all contract changes, and adds or subtracts their cumulative effect to or from retained earnings at the beginning of the fiscal year under review. As a result, net sales for the fiscal year under review increased by ¥197 million and cost of sales grew ¥181 million. Operating income, ordinary income and income before income taxes were up ¥15 million each. Reflecting the cumulative effect on net assets at the beginning of the fiscal year under review, the beginning balance of retained earnings in the consolidated statement of changes in equity decreased ¥48 million. As a result of the application of the Revenue Recognition Accounting Standard, etc., “notes and accounts receivable–trade,” which was presented under “current assets” in the consolidated balance sheet for the previous fiscal year, has been included in “notes and accounts receivable–trade, and contract assets” from the fiscal year under review. In addition, “decrease (increase) in trade receivables,” which was presented under “cash flows from operating activities” in the statement of cash flows for the previous fiscal year, has been included in “decrease (increase) in trade receivables and contractual assets” from the fiscal year under review, and “increase (decrease) in advances received on construction contracts in progress” has been presented as “increase (decrease) in contract liabilities” from the fiscal year under review. In accordance with the transitional treatment prescribed in Paragraph 89-2 of the Revenue Recognition Accounting Standard, no reclassification has been made using the new presentation method for the previous fiscal year. Furthermore, in accordance with the transitional treatment prescribed in Paragraph 89-3 of the Revenue Recognition Accounting Standard, breakdowns of revenue from contracts with customers for the previous fiscal year are not presented. – 12 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Segment Information, Etc.) 1. Overview of Reportable Segments The reportable segments of the Group are constituent units of the Company for which separate financial information is available and which are subject to periodic review by the Board of Directors for the purpose of determining the allocation of management resources and evaluating business results. The Group is mainly involved in the fire protection business and has three reportable segments: “Fire Alarm Systems,” “Fire Extinguishing Systems” and “Maintenance Services.” In the “Fire Alarm Systems” segment, it manufactures, sells and installs automatic fire alarm systems, environmental monitoring systems, hinged fire doors, smoke control systems and other products. In the “Fire Extinguishing Systems” segment, it manufactures, sells and installs a variety of sprinkler systems, foam systems and fire protection equipment for industrial plants, road tunnels and other products. In the “Maintenance Services” segment, it provides maintenance services and inspection services for a wide range of fire protection systems. 2. Method of Calculating Net Sales, Income or Loss, Assets, Liabilities and Other Items by Reportable Segment The method of accounting for reported business segments is generally the same as the method of accounting applied for the preparation of consolidated financial statements. Inter-segment revenues and transfers are based on prevailing market prices. – 13 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 3. Information on Net Sales, Income or Loss, Assets, Liabilities and Other Items by Reportable Segment and Breakdowns of Revenue Fiscal year ended March 31, 2021 Reportable segment Fire Alarm Systems Fire Extin-guishing Systems Mainte-nance Services Subtotal Other (Note 1) Total Adjust-ment (Note 2) (Millions of yen) Amount recorded in consoli-dated financial statements (Note 3) Net sales 37,952 38,415 26,687 103,055 4,842 107,897 – 107,897 87 65 0 154 349 (cid:4666)349(cid:4667) – 38,039 5,979 47,759 920 11 38,481 6,568 32,818 222 – 103,209 17,940 94,013 1,286 11 26,688 5,392 13,436 143 – – 195 5,038 253 3,938 136 – – 108,247 18,194 97,952 1,422 11 107,897 11,053 139,875 2,171 11 (349) (7,140) 41,922 749 – – – 2,735 2,735 2,735 2,735 Other items Net sales to external customers Inter-segment sales or transfers Subtotal Segment income Segment assets Depreciation Amortization of goodwill Investment in entities accounted for using equity method Increase in property, plant and equipment and intangible assets 2,602 541 473 3,617 68 3,685 820 4,506 (Notes) 1 The “Others” segment represents businesses such as car parking control systems, which are not included in the reportable segments. 2 Adjustments are as follows. (1) The adjustment for segment income of ¥(7,140) million is for corporate expenses. Corporate expenses mainly consist of general and administrative expenses and research and development expenses, which are not attributable to reportable segments. (2) The adjustment for segment assets of ¥41,922 million is for corporate assets. Corporate assets mainly consist of surplus operating funds (cash and deposits), long-term investment funds (investment securities) and assets related to administration and R&D departments, which are not attributable to reportable segments. (3) The adjustment for depreciation of ¥749 million is for depreciation related to corporate assets. (4) The adjustment for increase in property, plant and equipment and intangible assets of ¥820 million is for an increase in corporate assets. 3 Segment income is reconciled to operating income in the consolidated financial statements. – 14 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 Fiscal year ended March 31, 2022 Reportable segment Fire Alarm Systems Fire Extin-guishing Systems Mainte-nance Services Subtotal Other (Note 1) Total Adjust-ment (Note 2) (Millions of yen) Amount recorded in consoli-dated financial statements (Note 3) Net sales 20,242 4,324 15,266 39,832 1,929 41,762 41,762 21,794 35,323 11,033 68,151 3,000 71,151 71,151 42,036 39,647 26,299 107,984 4,929 112,913 112,913 42,036 39,647 26,299 107,984 4,929 112,913 112,913 63 68 0 132 322 (322) – 42,100 8,617 46,305 1,006 11 25 39,715 7,197 42,911 253 – – 108,116 20,668 102,486 1,443 11 25 26,300 4,854 13,269 184 – – – 190 5,120 46 4,999 173 – – – 113,236 20,715 107,486 1,616 11 25 (322) (8,081) 41,113 681 112,913 12,633 148,599 2,298 11 25 – 3,035 3,035 3,035 3,035 – – – – – – – Goods or services transferred at a point in time Goods or services transferred over a certain period of time Revenue from contracts with customers Net sales to external customers Inter-segment sales or transfers Subtotal Segment income Segment assets Depreciation Amortization of goodwill Impairment losses Investment in entities accounted for using equity method Increase in property, plant and equipment and intangible assets Other items 2,729 525 171 3,425 49 3,474 993 4,467 (Notes) 1 The “Others” segment represents businesses such as car parking control systems, which are not included in the reportable segments. 2 Adjustments are as follows. (1) The adjustment for segment income of ¥(8,081) million is for corporate expenses. Corporate expenses mainly consist of general and administrative expenses and research and development expenses, which are not attributable to reportable segments. (2) The adjustment for segment assets of ¥41,113 million is for corporate assets. Corporate assets mainly consist of surplus operating funds (cash and deposits), long-term investment funds (investment securities) and assets related to administration and R&D departments, which are not attributable to reportable segments. (3) The adjustment for depreciation of ¥681 million is for depreciation related to corporate assets. (4) The adjustment for increase in property, plant and equipment and intangible assets of ¥993 million is for an increase in corporate assets. 3 Segment income is reconciled to operating income in the consolidated financial statements. 4. Related information Fiscal year ended March 31, 2021 (1) Information by product and service – 15 – The information has been omitted since the same information is disclosed in the segment information. NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (2) Information by region 1) Net sales This information has been omitted since net sales to external customers in Japan account for more than 90% of net sales in the consolidated statement of income. 2) Property, plant and equipment The information has been omitted since the amount of property, plant and equipment located in Japan accounts for more than 90% of the amount of property, plant and equipment in the consolidated balance sheet. (3) Information by major customer The information has been omitted since there are no external customers accounting for 10% or more of net sales in the consolidated statement of income. The information has been omitted since the same information is disclosed in the segment information. Fiscal year ended March 31, 2022 (1) Information by product and service (2) Information by region 1) Net sales This information has been omitted since net sales to external customers in Japan account for more than 90% of net sales in the consolidated statement of income. 2) Property, plant and equipment The information has been omitted since the amount of property, plant and equipment located in Japan accounts for more than 90% of the amount of property, plant and equipment in the consolidated balance sheet. (3) Information by major customer The information has been omitted since there are no external customers accounting for 10% or more of net sales in the consolidated statement of income. 5. Information on Impairment Losses on Non-current Assets by Reportable Segment Fiscal year ended March 31, 2021 Not applicable. Fiscal year ended March 31, 2022 Reportable segment Fire Extin-guishing Systems Mainte-nance Services Fire Alarm Systems Subtotal Other Total Adjust-ment (Millions of yen) Amount recorded in consoli-dated financial statements 25 Impairment losses 25 – – 25 – 25 – – 16 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 6. Information on Amortization and Unamortized Balance of Goodwill by Reportable Segment Fiscal year ended March 31, 2021 Amortization during period Balance at end of period Fiscal year ended March 31, 2022 Reportable segment Fire Extin-guishing Systems Mainte-nance Services Fire Alarm Systems Subtotal Other Total Adjust-ment 11 20 11 8 – – – – – – – – 11 20 11 8 – – – – 11 20 11 8 Reportable segment Fire Extin-guishing Systems Mainte-nance Services Fire Alarm Systems Subtotal Other Total Adjust-ment (Millions of yen) Amount recorded in consoli-dated financial statements 11 20 (Millions of yen) Amount recorded in consoli-dated financial statements – – – – 11 8 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 1,700.87 yen 126.38 yen 1,827.92 yen 155.07 yen (Notes) 1. Diluted net income per share is not stated because there are no dilutive shares. 2. The basis for calculating net income per share is as follows. Item Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Net income per share Net income attributable to owners of parent (Million yen) Amount not attributable to common shareholders (Million yen) Net income attributable to owners of parent related to common shares (Million yen) Average number of common shares (Shares) 7,620 – 7,620 9,351 – 9,351 60,299,069 60,303,275 Amortization during period Balance at end of period (Per Share Information) Net assets per share Net income per share (Significant Subsequent Events) Not applicable. – 17 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Statement of Net Sales, Orders Received and Order Backlog by Product) Statement of net sales by product Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Amount Composition ratio Amount Composition ratio Amount Percentage change Fire Alarm Systems Fire Extinguishing Systems Maintenance Services Other Total 37,952 38,415 26,687 4,842 107,897 35.2% 35.6% 24.7% 4.5% 100.0% 42,036 39,647 26,299 4,929 112,913 37.2% 35.1% 23.3% 4.4% 100.0% 4,084 1,231 (387) 87 5,016 10.8% 3.2% (1.5)% 1.8% 4.6% (Millions of yen) Change Statement of orders received by product Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Millions of yen) Change Amount Composition ratio Amount Composition ratio Amount Percentage change Fire Alarm Systems Fire Extinguishing Systems Maintenance Services Other Total 37,466 44,469 26,436 4,936 113,308 33.1% 39.2% 23.3% 4.4% 100.0% 45,169 33,163 27,067 5,547 110,948 40.7% 29.9% 24.4% 5.0% 100.0% 7,702 (11,305) 631 611 (2,360) 20.6% (25.4)% 2.4% 12.4% (2.1)% Statement of orders backlog by product As of March 31, 2021 As of March 31, 2022 (Millions of yen) Change Amount Composition ratio Amount Composition ratio Amount Percentage change Fire Alarm Systems Fire Extinguishing Systems Maintenance Services Other Total 11,243 40,187 3,773 840 56,045 20.1% 71.7% 6.7% 1.5% 100.0% 12,550 32,080 4,364 1,409 50,404 24.9% 63.6% 8.7% 2.8% 100.0% 1,306 (8,106) 590 568 (5,640) 11.6% (20.2)% 15.6% 67.7% (10.1)% – 18 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 4. Other Change of officers The following changes have been informally decided as of June 28, 2022. 1) Change of representative Not applicable. 2) Candidate for new Director Director, Managing Executive Officer 3) Retiring Director Yasuo Ariga (Managing Executive Officer (present)) Director, Senior Managing Executive Officer Jun Uchiyama (Scheduled to be appointed as Executive Advisor) 4) Candidate for new Audit & Supervisory Board Member Outside Audit & Supervisory Board Member Akiko Nagahama (Attorney at Law office of Nagahama, Mizuno & Inoue (present), Outside Director of Dainichiseika Color & Chemicals Mfg. Co., Ltd. (present)) 5) Retiring Audit & Supervisory Board Member Outside Audit & Supervisory Board Member Tojiro Ishii 6) Newly appointed Executive Officer Executive Officer Kazuki Takumi (Executive Manager of Corporate Planning Department (present)) 7) Other changes Director, Senior Managing Executive Officer Masahiro Hasegawa (Director, Managing Executive Officer (present)) – 19 – NOHMI BOSAI LTD. (6744) Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 [Reference] (Planned) Composition of officers after June 28, 2022 1. Directors and Audit & Supervisory Board Members Chairman and Representative Director Takeshi Hashizume Vice Chairman and Director Tatsunori Ito President and Representative Director Takeshi Okamura Director Director Director Director (Outside) Director (Outside) Director (Outside) Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Full-Time Audit & Supervisory Board Member Yoshihisa Asakura Full-Time Audit & Supervisory Board Member Hiroshi Kondo Audit & Supervisory Board Member (Outside) Kazuo Kondo Audit & Supervisory Board Member (Outside) Yasuhiro Takahashi Audit & Supervisory Board Member (Outside) Akiko Nagahama Senior Managing Executive Officer Masahiro Hasegawa 2. Executive Officers Managing Executive Officer Managing Executive Officer Masahiro Hasegawa Yasuo Ariga Tatsuya Izumida Shin Shiotani Ichiro Ishii Keiko Hirano Yasuo Ariga Yuji Hara Hisato Miura Shinya Ikeda Kazuto Yamamoto Hisayoshi Atoji Makoto Kamihigoshi Keishi Odori Ryoichi Kato Masayuki Nakamura Yasuhiro Ono Kazuki Takumi – 20 –