サカイ引越センター（9039） – [Delayed]Summary of the Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

May 6, 2022 Summary of the Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (FY3/22) [Japanese GAAP] Listing: Tokyo Stock Exchange URL: https://www.hikkoshi-sakai.co.jp Company name: Sakai Moving Service Co., Ltd. Stock code: 9039 Representative: Tetsuyasu Tajima, President and Representative Director Inquiries: Teruhiro Manabe, Director, Accounting General Manager Tel: +81-72-244-1174 Scheduled date of Annual General Meeting of Shareholders: Scheduled date of filing of Annual Securities Report: Scheduled date of payment of dividend: Preparation of supplementary materials for financial results: Holding of financial results meeting: June 18, 2022 June 20, 2022 June 20, 2022 Yes Yes (All amounts are rounded down to the nearest million yen) 1. Consolidated Financial Results for FY3/22 (April 1, 2021 to March 31, 2022) (1) Consolidated results of operations Net sales Operating profit (Percentages represent year-on-year changes) Profit attributable to owners of parent Ordinary profit Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 Note: Comprehensive income (millions of yen): Millions of yen 103,884 100,333 3.5 (0.5) % Millions of yen 10,790 11,132 (3.1) (0.5) Fiscal year ended Mar. 31, 2022: Fiscal year ended Mar. 31, 2021: % Millions of yen 11,286 11,728 6,652 (down 14.7%) 7,798 (down 13.3%) (3.8) 1.7 % Millions of yen 6,711 7,697 % (12.8) (14.0) Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 Reference: Equity in earnings of affiliates (millions of yen) (2) Consolidated financial position Net income per share Yen 327.87 374.93 Return on equity Diluted net income per share Yen – – % 9.1 11.2 Fiscal year ended Mar. 31, 2022: Fiscal year ended Mar. 31, 2021: Ordinary profit to total assets Operating profit to net sales % 11.1 12.2 % 10.4 11.1 Total assets Net assets Shareholders’ equity ratio Net assets per share As of Mar. 31, 2022 As of Mar. 31, 2021 Reference: Shareholders’ equity (millions of yen): Millions of yen 103,542 99,488 As of Mar. 31, 2022: Millions of yen 75,948 72,125 75,948 Yen 3,735.83 3,513.12 As of Mar. 31, 2021: 72,125 – – % 73.4 72.5 Cash flows from operating activities Millions of yen 7,916 11,303 Cash flows from investing activities Millions of yen (3,173) (1,240) Cash flows from financing activities Millions of yen (3,651) (4,224) Cash and cash equivalents at end of period Millions of yen 22,806 21,715 (3) Consolidated cash flows Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 2. Dividends Dividend per share 1Q-end 2Q-end 3Q-end Year-end Total Total dividends Payout ratio (consolidated) Dividend on equity (consolidated) Fiscal year ended Mar. 31, 2021 Fiscal year ended Mar. 31, 2022 Fiscal year ending Mar. 31, 2023 (Forecast) Note: Composition of the year-end dividend for the fiscal year ended March 31, 2021: Special dividend of 10.00 yen and Yen Millions of yen 1,642 1,835 Yen 65.00 60.00 Yen 15.00 30.00 % 21.3 27.5 80.00 90.00 Yen – – Yen – – 65.00 30.00 95.00 26.2 – – % 2.4 2.5 commemorative dividend of 20.00 yen 3. Consolidated Forecast for FY3/23 (April 1, 2022 to March 31, 2023) Net sales Operating profit Ordinary profit (Percentages represent year-on-year changes) Net income per share Profit attributable to owners of parent First half Full year Millions of yen 52,682 106,557 % Millions of yen 5,008 10,908 4.3 2.6 % Millions of yen 5,642 11,379 3.1 1.1 % Millions of yen 3,495 7,373 8.6 0.8 % 8.2 9.9 Yen 171.91 362.71 (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in * Notes scope of consolidation): None Newly added: – Excluded: – (2) Changes in accounting policies and accounting-based estimates, and restatements 1) Changes in accounting policies due to revisions in accounting standards, others: Yes 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting-based estimates: None 4) Restatements: None (3) Number of outstanding shares (common shares) 1) Number of shares outstanding at the end of the period (including treasury shares) As of Mar. 31, 2022: 21,162,000 shares As of Mar. 31, 2021: 21,162,000 shares 2) Number of treasury shares at the end of the period As of Mar. 31, 2022: 832,136 shares As of Mar. 31, 2021: 631,713 shares 3) Average number of shares outstanding during the period Fiscal year ended Mar. 31, 2022: Reference: Summary of Non-consolidated Financial Results 20,470,419 shares Fiscal year ended Mar. 31, 2021: 20,531,412 shares 1. Non-consolidated Financial Results for FY3/22 (April 1, 2021 to March 31, 2022) (1) Non-consolidated results of operations (Percentages represent year-on-year changes) Net sales Operating profit Ordinary profit Millions of yen 92,139 89,509 % Millions of yen 9,778 10,266 2.9 (0.3) % Millions of yen 10,531 10,771 (4.8) (1.2) Profit % Millions of yen 6,547 7,124 (2.2) 1.3 % (8.1) (15.5) Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 Net income per share Diluted net income per share Fiscal year ended Mar. 31, 2022 Fiscal year ended Mar. 31, 2021 Yen 319.86 347.03 (2) Non-consolidated financial position Yen – – Total assets Net assets Shareholders’ equity ratio Net assets per share As of Mar. 31, 2022 As of Mar. 31, 2021 Reference: Shareholders’ equity (millions of yen): 2. Non-consolidated Forecast for FY3/23 (April 1, 2022 to March 31, 2023) Millions of yen 98,738 95,367 As of Mar. 31, 2022: Millions of yen 73,016 69,366 73,016 % 73.9 72.7 Yen 3,591.60 3,378.75 As of Mar. 31, 2021: 69,366 First half Full year Net sales Millions of yen 46,027 93,500 Ordinary profit % 2.6 1.5 Millions of yen 5,443 10,670 % 9.1 1.3 (Percentages represent year-on-year changes) Profit Millions of yen 3,528 7,170 Yen 173.57 352.68 Net income per share % 2.6 9.5 * The financial report is not subject to audit by certified public accountants or auditing firms. * Cautionary statement with respect to forward-looking statements and other special items Forecasts of future performance in these materials are based on assumptions judged to be valid and information available to the management of Sakai Moving Service at the time the materials were prepared. These materials are not promises by Sakai Moving Service regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons. For a discussion of the assumptions for forecasts, precautions concerning usage and other information, please refer to “1. Overview of Results of Operations, (4) Outlook” on page 3. Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 Contents of Attachments 1. Overview of Results of Operations (1) Results of Operations (2) Financial Position (3) Cash Flows (4) Outlook 2. Basic Approach to the Selection of Accounting Standards 3. Consolidated Financial Statements and Notes (1) Consolidated Balance Sheet (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statement of Income Consolidated Statement of Comprehensive Income (3) Consolidated Statement of Changes in Equity (4) Consolidated Statement of Cash Flows (5) Notes to Consolidated Financial Statements Going-concern Assumption Changes in Accounting Policies Segment and Other Information Per Share Information Subsequent Events 2 2 2 3 3 3 4 4 6 6 7 8 10 12 12 12 12 16 16 1 Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 1. Overview of Results of Operations (1) Results of Operations In the current fiscal year, the Japanese economy continued to recover, although the economic situation was challenging due to the spread of the COVID-19 pandemic. Nevertheless, the outlook for the Japanese economy remains uncertain because of the impact of rising raw material prices of caused by the Ukraine crisis and other factors. The operating environment in Japan’s moving industry was also challenging as the number of people relocating remained largely unchanged although housing starts are picking up. Outsourcing costs increased because of measures to prevent COVID-19 clusters and other measures involving working hours for employees directly involved with moving services. Unlike the previous fiscal year, when bonuses to employees were curbed because of the effects of the COVID-19 pandemic, expenses increased due to the payment of special bonuses to employees who had been severely impacted by the COVID -19 pandemic in the current fiscal year. However, in the fourth quarter of the current fiscal year, the average unit rate for moving services was up and the Sakai Moving Service Group focused on efficiently utilizing management resources to capture orders. As result, net sales and profits increased. By steadily making business operations more powerful, the Group achieved higher sales than one year earlier as the number of jobs performed increased 0.9% to 841,631 and the average unit rate for moving services was up 2.0%. Net sales increased 3.5% year-on-year to 103,884 million yen, operating profit decreased 3.1% to 10,790 million yen, ordinary profit decreased 3.8% to 11,286 million yen, and profit attributable to owners of parent decreased 12.8% to 6,711 million yen. (2) Financial Position 1) Current assets Current assets increased by 1,085 million yen, or 3.4%, from the end of the previous fiscal year to 32,852 million yen. This was attributable mainly to an increase of 1,089 million yen in cash and deposits. 2) Non-current assets Non-current assets increased by 2,968 million yen, or 4.4%, from the end of the previous fiscal year to 70,690 million yen. This was mainly attributable to increases of 1,289 million yen in buildings, 692 million yen in land, 539 million yen in leased assets and 524 million yen in construction in progress. 3) Current liabilities Current liabilities increased by 417 million yen, or 1.9%, from the end of the previous fiscal year to 22,096 million yen. This was attributable mainly to increases of 678 million yen in advances received and 270 million yen in short-term borrowings, while there was a decrease of 665 million yen in accrued expenses. 4) Non-current liabilities Non-current liabilities decreased by 187 million yen, or 3.3%, from the end of the previous fiscal year to 5,497 million yen. This was attributable mainly to decreases of 428 million yen in long-term borrowings and 266 million yen in long-term accounts payable-other included in other under non-current liabilities, while there was an increase of 380 million yen in lease obligations. 2 Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 5) Net assets Net assets increased by 3,823 million yen, or 5.3%, from the end of the previous fiscal year to 75,948 million yen. This was attributable mainly to an increase of 4,739 million yen in retained earnings. (3) Cash Flows Cash and cash equivalents (hereinafter “net cash”) at the end of the current fiscal year increased 1,091 million yen from the end of the previous fiscal year to 22,806 million yen. Cash flows and the main reasons for changes are as follows. Cash flows from operating activities Net cash provided by operating activities was 7,916 million yen, compared with net cash provided of 11,303 million yen in the previous fiscal year. Although there were negative factors including income taxes paid of 3, 748 million yen, there were positive factors including profit before income taxes of 10,776 million yen, a 1,173 million yen decrease in trade receivables and depreciation of 1,286 million yen. Cash flows from investing activities Net cash used in investing activities was 3,173 million yen, compared with net cash used of 1,240 million yen in the previous fiscal year. Main factors include purchase of property, plant and equipment of 2,383 million yen. Cash flows from financing activities Net cash used in financing activities was 3,651 million yen, compared with net cash used of 4,224 million yen in the previous fiscal year. Main factors include repayments of long-term borrowings of 1,135 million yen, dividends paid of 1,950 million yen and purchase of treasury shares of 879 million yen. (4) Outlook As for the future economic outlook, economic activity is expected to gradually pick up as measures to combat the spread of the COVID-19 infections and other policy measures start having an effect. Nevertheless, the situation is expected to remain uncertain for the foreseeable future due the impact of rising raw material prices caused by the Ukraine crisis and other factors. In this challenging environment, the Group is aiming to improve the working environment and to further raise productivity by utilizing web tools as well as by making capital investment in its dormitories and accommodation facilities, and by continuing to steadily implement its existing sales policies. For the fiscal year ending March 31, 2023, we forecast a 2.6% increase in net sales to 106,557 million yen, a 1.1% increase in operating profit to 10,908 million yen, a 0.8% increase in ordinary profit to 11,379 million yen and a 9.9% increase in profit attributable to owners of parent to 7,373 million yen. 2. Basic Approach to the Selection of Accounting Standards The Group will continue to prepare consolidated financial statements using generally accepted accounting principles in Japan because shareholders, creditors and business partners in Japan account for most stakeholders, and there is no plan to procure funds from overseas. 3 Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 FY3/21 (as of Mar. 31, 2021) (Millions of yen) FY3/22 (as of Mar. 31, 2022) 3. Consolidated Financial Statements and Notes (1) Consolidated Balance Sheet Assets Current assets Cash and deposits Notes and accounts receivable-trade, and contract assets Notes and accounts receivable-trade – 22,588 7,516 486 409 773 (7) 31,766 9,875 178 50,989 954 495 156 22 141 420 584 1,040 794 1,741 1,001 (91) 4,486 67,722 99,488 62,651 23,677 7,200 – 750 465 764 (6) 32,852 11,164 112 51,682 1,494 1,020 144 65,619 153 28 445 627 828 1,183 1,530 909 (8) 4,443 70,690 103,542 Merchandise Supplies 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 Leased assets, net Construction in progress Other, net Total property, plant and equipment Intangible assets Goodwill Contract-based intangible assets Other Total intangible assets Investments and other assets Investment securities Long-term loans receivable Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 4 Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 FY3/21 (as of Mar. 31, 2021) (Millions of yen) FY3/22 (as of Mar. 31, 2022) – 5,350 1,285 214 5,577 2,624 2,567 824 3,234 21,678 – 2,363 752 53 517 10 153 1,833 5,684 27,363 4,731 4,949 65,713 (2,935) 72,459 97 (431) (333) 72,125 99,488 5,331 22 1,555 369 4,911 2,767 3,245 836 3,056 22,096 78 1,934 1,132 30 517 32 191 1,579 5,497 27,593 4,731 4,949 70,452 (3,814) 76,319 39 (409) (370) 75,948 103,542 Liabilities Current liabilities Accounts payable-trade Current portion of bonds payable Short-term borrowings Lease liabilities Accrued expenses Income taxes payable Advances received Provision for bonuses Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Lease liabilities Deferred tax liabilities Deferred tax liabilities for land revaluation 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 Revaluation reserve for land Total accumulated other comprehensive income Total net assets Total liabilities and net assets 5 Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statement of Income FY3/21 (Apr. 1, 2020 to Mar. 31, 2021) FY3/22 (Apr. 1, 2021 to Mar. 31, 2022) (Millions of yen) 11,728 11,286 103,884 63,781 40,103 29,313 10,790 221 27 43 37 50 140 521 18 3 3 25 19 – – 0 19 20 – 508 529 10,776 3,865 200 4,065 6,711 – 6,711 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest and dividend income Insurance claim income Commission income Rental income from real estate Surrender value of insurance policies Other Total non-operating income Non-operating expenses Interest expenses Commission for purchase of treasury shares Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Subsidy income Other Total extraordinary income Extraordinary losses Loss on disposal of non-current assets Loss on tax purpose reduction entry of non-current assets Impairment losses Total extraordinary losses 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 100,333 61,078 39,254 28,122 11,132 323 38 43 39 17 152 613 17 – 0 17 8 32 13 – 54 20 13 – 34 11,749 3,821 229 4,051 7,697 – 7,697 6 Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 Consolidated Statement of Comprehensive Income FY3/21 (Apr. 1, 2020 to Mar. 31, 2021) FY3/22 (Apr. 1, 2021 to Mar. 31, 2022) (Millions of yen) Profit Other comprehensive income Valuation difference on available-for-sale securities Total other comprehensive income Comprehensive income Comprehensive income attributable to: Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests 7,697 100 100 7,798 7,798 – 6,711 (58) (58) 6,652 6,652 – 7 (3) Consolidated Statement of Changes in Equity FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Millions of yen) Total shareholders’ equity 4,731 4,949 59,247 (2,934) 65,993 (1,231) 7,697 (0) (0) (1,231) 7,697 6,465 72,459 – 4,731 – 4,949 6,466 65,713 (0) (2,935) Accumulated other comprehensive income Valuation difference on available-for-sale securities Revaluation reserve for land Total accumulated other comprehensive income Total net assets (2) (431) (434) 65,559 – (431) 100 100 (333) (1,231) 7,697 (0) 100 6,566 72,125 100 100 97 Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Reversal of revaluation reserve for land Purchase of treasury shares 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 attributable to owners of parent Reversal of revaluation reserve for land Purchase of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 8 FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Millions of yen) Total shareholders’ equity 4,731 4,949 65,713 (2,935) 72,459 Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Reversal of revaluation reserve for land Purchase of treasury shares 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 attributable to owners of parent Reversal of revaluation reserve for land Purchase of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (1,950) 6,711 (21) (879) (1,950) 6,711 (21) (879) 3,860 76,319 – 4,731 – 4,949 4,739 70,452 (879) (3,814) Accumulated other comprehensive income Valuation difference on available-for-sale securities Revaluation reserve for land Total accumulated other comprehensive income Total net assets 97 (431) (333) 21 21 (409) (36) (36) (370) 72,125 (1,950) 6,711 (21) (879) (36) 3,823 75,948 (58) (58) 39 9 Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 (4) Consolidated Statement of Cash Flows FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) (Millions of yen) Cash flows from operating activities Profit before income taxes Depreciation Impairment losses Amortization of goodwill Share-based payment expenses Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in retirement benefit liability Interest and dividend income Interest expenses Loss (gain) on disposal of property, plant and equipment Loss (gain) on sale of investment securities Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in accrued consumption taxes Increase (decrease) in accounts payable-bonuses Increase (decrease) in accounts payable relating to introduction of defined-contribution pension plan Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Purchase of securities Proceeds from redemption of securities Purchase of investment securities Proceeds from sale of investment securities Loan advances Proceeds from collection of loans receivable Proceeds from divestments Purchase of shares of subsidiaries resulting in change in scope of consolidation Purchase of shares of subsidiaries and associates Other, net Net cash provided by (used in) investing activities 10 11,749 1,337 – 89 148 (8) (290) 1 (323) 17 12 (32) 1,745 27 790 52 (482) (330) (115) 14,389 323 (17) (3,391) 11,303 (454) 463 (2,183) 639 (80) (3,000) 3,000 – 116 (22) 160 170 – – (49) (1,240) 10,776 1,286 508 39 59 (83) 11 1 (221) 18 2 – 1,173 (314) (94) (712) (353) (311) (324) 11,462 220 (18) (3,748) 7,916 (466) 468 (2,383) 81 (129) – – (2) 274 (645) 169 53 (550) (64) 22 (3,173) Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) (Millions of yen) Cash flows from financing activities Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Repayments of lease obligations Purchase of treasury shares Repayments of installment payables-property and equipment Redemption of bonds Dividends paid Net cash provided by (used in) 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 900 (900) 100 (1,640) (83) (0) (1,368) (1,231) (4,224) – – 5,838 15,876 21,715 1,200 (800) 271 (1,135) (239) (879) (107) (11) (1,950) (3,651) – 1,091 21,715 22,806 11 Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 (5) Notes to Consolidated Financial Statements Going-concern Assumption Not applicable. Changes in Accounting Policies Application of Accounting Standard for Revenue Recognition Sakai Moving Service has applied the Accounting Standard for Revenue Recognition ( Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020, the “Revenue Recognition Accounting Standard”) from the beginning of the current fiscal year. Based on this standard, revenue expected to be received in exchange for the provision of goods and services is recognized when the control of the promised goods and services is transferred to customers. Due to this accounting standard, when there is an agreement with a customer to provide the goods or services to a third party, only net revenue for services as an agent are recognized. In addition, for transactions at some subsidiaries where loyalty points are given to customers when a product or service is sold, a provision for point card certificates for the monetary value of points expected to be used in the future was maintained in prior years. Additions to this provision were included in selling, general and administrative expenses. Due to the new revenue recognition standard, this method has been changed to classifying points as a performance obligation that is allocated to transaction prices based on independent sale prices that reflect the portion of points not expected to be used and other considerations. The application of the Revenue Recognition Accounting Standard is pursuant to the transitional treatment prescribed in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard. There is a minor impact of this application on retained earnings at the beginning of the fiscal year, profit in the current fiscal year and per share information. Due to the application of the revenue recognition accounting standard, notes and accounts receivable-trade that was presented in the current assets section in the previous fiscal year is, from the current fiscal year, presented as notes and accounts receivable-trade, and contract assets. In accordance with the transitional treatment prescribed in paragraph 89-2 of the accounting standard for revenue recognition, no reclassification has been made to the prior year’s consolidated financial statements to conform to the new presentation. Advances received, which was included in other under current liabilities is reclassified as a separate item in the current fiscal year. The provision for point card certificates that was presented in the current liabilitie s section in the previous fiscal year is, from the current fiscal year, presented as other under current liabilities. Application of Accounting Standard for Fair Value Measurement Sakai Moving Service has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019) from the beginning of the current fiscal year, and has applied the new accounting policies set forth by the Accounting Standard for Fair Value Measurement prospectively in accordance with the transitional treatment prescribed in Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). There is no effect of the application of these standards on the consolidated financial statements in the current fiscal year. Segment and Other Information Segment information 1. Overview of reportable segment The reportable segments of the Group are components for which discrete financial information is availa ble and whose operating results are regularly reviewed by the Board of Directors to make decisions about resource allocation and to assess performance. The Group provides moving and transportation services that are carried out by the Company and related se rvices that are operated through its consolidated subsidiaries. Therefore, the segments are sorted by the Group’s business. The Group’s four reportable business segments are: Moving Services Segment, Electrical Construction Segment, 12 Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 Clean Services Segment, and Reuse Segment. 2. Method of calculating net sales, profit or loss, assets and other items for each reportable segment Profits for reportable segments are generally ordinary profit figures. Depreciation, amortization, and other expenses relating to corporate assets that are not allocated to any of the reportable business segments are allocated to each business segment according to certain defined criteria. 3. Information related to net sales and profit or loss, assets and other items for each reportab le segment FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) (Millions of yen) Moving Services Clean Services Reuse Subtotal Reportable segment Electrical Construction Other (Note 1) Total Adjustments (Notes 2, 3) Amounts shown on the consolidated financial statements (Note 4) 4,220 53 4,273 243 5,082 125 1 0 11 (3,210) (3,210) 68 22,763 – – – – 308 3,094 36 3,130 243 3,406 40 0 1 8 99,827 3,133 102,961 11,375 68,841 1,283 9 17 3,104 100,333 100,333 11,728 99,488 – 1,337 9 17 3,418 1 88,844 88,846 10,461 57,543 1,099 8 15 3,069 505 76 581 284 53 0 – 5 7,883 Net sales Sales to external customers Inter-segment sales and transfers Total Segment profit Segment assets Other items Depreciation Interest income Interest expenses Increase in property, plant and equipment and intangible assets Net sales Sales to external customers Inter-segment sales and transfers Total Segment profit Segment assets Other items Depreciation Interest income Interest expenses Increase in property, plant and equipment and intangible assets 3,668 3,042 6,710 427 2,808 17 0 0 15 100,333 3,210 103,543 11,660 76,724 1,337 9 17 3,110 13 Notes: 1. Other represents the businesses which are not included in any of the reportable segments and mainly consists of rea l 2. The 68 million yen adjustment to segment profit includes elimination for inter-segment transactions. 3. The adjustment to segment assets include corporate assets that cannot be allocated to any of the reportable estate leasing business. segments. 4. Total segment profit is adjusted with ordinary profit shown on the consolidated statement of income. 5. Depreciation includes amortization of long-term prepaid expenses. 6. The 308 million yen adjustment to increase in property, plant and equipment and intangible assets is mainly those related to corporate assets. Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) Reportable segment (Millions of yen) Moving Services Clean Services Reuse Subtotal Electrical Construction 3,542 103,347 Other (Note 1) Total Adjustments (Notes 2, 3) Amounts shown on the consolidated financial statements (Note 4) 4,590 83 4,673 430 5,159 129 0 0 13 (3,415) (3,415) (380) 23,801 – – – – 184 3,542 108 3,416 0 39 0 1 30 3,337 106,685 11,350 70,534 1,221 8 17 3,698 103,884 103,884 11,286 103,542 – 1,286 8 18 4,418 91,444 2 91,447 10,310 58,774 1,032 8 15 3,649 537 77 614 315 65 0 1 535 9,205 Net sales Sales to external customers Inter-segment sales and transfers Total Segment profit Segment assets Other items Depreciation Interest income Interest expenses Increase in property, plant and equipment and intangible assets Net sales Sales to external customers Inter-segment sales and transfers Total Segment profit Segment assets Other items Depreciation Interest income Interest expenses Increase in property, plant and equipment and intangible assets Notes: 1. Other represents the businesses which are not included in any of the reportable segments and mainly consists of real 2. The -380 million yen adjustment to segment profit includes elimination for inter-segment transactions. 3. The adjustment to segment assets include corporate assets that cannot be allocated to any of the reportable estate leasing business. segments. 4. Total segment profit is adjusted with ordinary profit shown on the consolidated statement of income. 5. Depreciation includes amortization of long-term prepaid expenses. 6. The 184 million yen adjustment to increase in property, plant and equipment and intangible assets is mainly those related to corporate assets. 4. Information related to revisions for reportable segments (1) As described in Changes in Accounting Policies, Sakai Moving Service has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) from the beginning of FY3/22 and changed the accounting method for revenue recognition. Accordingly, the method for calculating segment profit or loss has been changed as well. The effect of this change is insignificant. (2) In FY3/22, the Recycling business segment was renamed the Reuse business segment. The change does not influence the segment information. The segment information for FY3/21 is prepared and di sclosed using the new segment name. 3,770 3,252 7,022 501 3,184 19 0 0 5 103,884 3,415 107,300 11,666 79,740 1,286 8 18 4,233 14 Information related to impairment losses on non-current assets for each reportable segment Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) Not applicable. FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) Impairment loss 508 – 508 Moving Services Clean Services Reuse Subtotal Electrical Construction – Reportable segment (Millions of yen) Other Total Adjustments Amounts shown on the consolidated financial statements 508 Impairment loss – 508 Information related to goodwill amortization and the unamortized balance for each reportable segment FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) Amortization for the period Balance at the end of period Moving Services Electrical Construction – Reportable segment Clean Services Reuse Subtotal (Millions of yen) Other Total Adjustments Amounts shown on the consolidated financial statements 89 22 Reportable segment Clean Services Reuse Subtotal (Millions of yen) Amortization for the period Balance at the end of period FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) Amortization for the period Balance at the end of period Moving Services Electrical Construction – – – – – – 89 22 39 153 Other Total Adjustments Amortization for the period Balance at the end of period 39 153 Information related to gain on bargain purchase for each reportable segment Amounts shown on the consolidated financial statements 39 153 Not applicable. – – 89 22 – – 39 153 – – – – – – – – – – – 89 22 15 Per Share Information Net assets per share Net income per share Sakai Moving Service Co., Ltd. (9039) Consolidated Financial Results for FY3/22 FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) Notes: 1. Diluted net income per share is not presented since dilutive potential shares do not exist. 2. The basis of calculating net assets per share is as follows: FY3/21 (As of Mar. 31, 2021) FY3/22 (As of Mar. 31, 2022) (Millions of yen) Total net assets Deduction on total net assets [of which share acquisition rights] Net assets applicable to common shares at the year-end Number of common shares at the year-end used in calculation of net assets per share (shares) 3. The basis of calculating net income per share is as follows: 20,530,287 20,329,864 FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) (Millions of yen) (Yen) 3,735.83 327.87 75,948 – [-] 75,948 6,711 – 6,711 3,513.12 374.93 72,125 – [-] 72,125 7,697 – 7,697 20,531,412 20,470,419 Net income per share Profit attributable to owners of parent Amounts not attributable to common shareholders Profit attributable to owners of parent applicable to common shares Average number of shares outstanding during the period (shares) Subsequent Events Not applicable. This summary report is solely a translation of “Kessan Tanshin” (in Japanese, including the attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation. 16