Nippon Rietec : Consolidated Financial Results for the Three Months Ended June 30, 2022 (Under Japanese GAAP)

Note: This document has been translated from a part of 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.

August 5, 2022

Consolidated Financial Results

for the Three Months Ended June 30, 2022

(Under Japanese GAAP)

Company name:	NIPPON RIETEC CO., LTD.
Listing:	Tokyo Stock Exchange
Securities code:	1938
URL:	https://www.j-rietec.co.jp/
Representative:	Shigeru Egusa, Representative Director and President
Inquiries:	Masaaki Sawamura, Director and General Manager of Finance Department
Telephone:	[phone]

Scheduled date to file quarterly securities report:	August 9, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:	None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)			(Percentages indicate year-on-year changes.)
	Net sales		Operating profit		Ordinary profit			Profit attributable to
					owners of parent
Three months ended	Millions of yen		%	Millions of yen		%	Millions of yen			%	Millions of yen	%
June 30, 2022	7,999		(7.9)	(1,098)	-		(1,044)		-		(774)	-
June 30, 2021	8,684		(9.4)	(786)	-		(744)		-		(520)	-

Note: Comprehensive income	For the three months ended June 30, 2022	¥(745) million	[-%]
		For the three months ended June 30, 2021	¥(640) million	[-%]
	Basic earnings per	Diluted earnings per
		share	share
Three months ended		Yen	Yen
June 30, 2022		(30.79)	-
June 30, 2021		(20.68)	-

(2) Consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio
As of	Millions of yen	Millions of yen	%
June 30, 2022	74,028	54,079	73.1
March 31, 2022	79,857	55,504	69.5
Reference: Equity
As of June 30, 2022:	¥54,079 million
As of March 31, 2022:	¥55,504 million

2. Cash dividends

				Annual dividends
	First quarter-end	Second quarter-end		Third quarter-end	Fiscal year-end	Total
	Yen	Yen		Yen	Yen	Yen
Fiscal year ended	-	-		-	27.00	27.00
March 31, 2022
Fiscal year ending	-
March 31, 2023
Fiscal year ending		-		-	27.00	27.00
March 31, 2023
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic
		earnings per
		owners of parent
								share
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Fiscal year ending	54,000		1.4	2,900	(5.5)	3,140	(5.0)	2,200	(8.5)	87.47
March 31, 2023
Note: Revisions to the earnings forecasts most recently announced: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None

Newly included:	- companies
Excluded:	- companies

1. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2022	25,617,717 shares
As of March 31, 2022	25,617,717 shares

(ii) Number of treasury shares at the end of the period

As of June 30, 2022	466,416 shares
As of March 31, 2022	466,416 shares

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

Three months ended June 30, 2022	25,151,301 shares
Three months ended June 30, 2021	25,151,340 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  Forward-looking statements, including the consolidated forecasts, stated in these materials are based on information currently available to the Company and certain assumptions deemed reasonable. Results may differ from the consolidated forecasts due to various factors.

NIPPON RIETEC CO., LTD. (1938)

Quarterly consolidated financial statements

(1) Quarterly consolidated balance sheet

			(Thousands of yen)
		As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	7,841,834	6,250,338
Notes receivable, accounts receivable from	35,052,626	28,973,610
completed construction contracts and other
Costs on construction contracts in progress	667,010	2,222,551
Merchandise and finished goods	85,021	81,662
Work in process	7,728	8,649
Raw materials and supplies	250,867	266,266
Other	199,692	353,848
Total current assets	44,104,781	38,156,927
Non-current assets
Property, plant and equipment
Buildings and structures, net	9,421,878	9,283,725
Machinery and vehicles, net	259,979	308,267
Tools, furniture and fixtures, net	284,386	294,632
Land	8,132,696	8,132,696
Leased assets, net	1,658,931	1,691,759
Construction in progress	112,402	100,383
Total property, plant and equipment	19,870,274	19,811,465
Intangible assets	605,945	574,913
Investments and other assets
Investment securities	14,397,294	14,308,722
Other	883,800	1,181,211
Allowance for doubtful accounts	(4,425)	(4,425)
Total investments and other assets	15,276,669	15,485,509
Total non-current assets	35,752,889	35,871,888
Total assets		79,857,670	74,028,815

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NIPPON RIETEC CO., LTD. (1938)

(Thousands of yen)

As of March 31, 2022

As of June 30, 2022

Liabilities

Current liabilities

Notes payable, accounts payable for construction contracts and other

Electronically recorded obligations - operating Short-term borrowings

Income taxes payable

Advances received on construction contracts in progress

Provision for warranties for completed construction

Provision for bonuses

Other

Total current liabilities

Non-current liabilities

Retirement benefit liability

Provision for retirement benefits for directors (and other officers)

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

Remeasurements of defined benefit plans Total accumulated other comprehensive income

Total net assets

Total liabilities and net assets

	6,750,303		4,162,326
	2,719,159	2,694,378
	-	500,000
	825,223	25,841
	110,265		177,859
	7,708	2,619
	1,205,657	491,470
	5,515,364	4,677,177
	17,133,682	12,731,674
	5,317,423	5,298,455
	31,387	29,267
	1,870,831	1,889,942
	7,219,642	7,217,665
	24,353,325	19,949,339
	1,430,962	1,430,962
	3,205,423	3,205,423
	49,567,246	48,113,695
	(343,500)	(343,500)
	53,860,131	52,406,580
	1,660,479	1,685,094
	(16,265)	(12,199)
	1,644,213	1,672,895
	55,504,345	54,079,476
	79,857,670	74,028,815

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