Consolidated Financial Results for the Six Months Ended September 30, 2021 [Japanese GAAP]

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Six Months Ended September 30, 2021

[Japanese GAAP]

Company name: Nishimatsu Construction Co., Ltd.	November 05, 2021
Stock exchange listing: Tokyo
Code number: 1820
URL: https://www.nishimatsu.co.jp/
Representative: Nobutoshi Takase	Representative Director and President
Contact: Junichi Usuki	General Manager of Finance & Accounting Department

Phone: [phone]

Scheduled date of filing quarterly securities report: November 05, 2021

Scheduled date of commencing dividend payments: December 02, 2021

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (April 01, 2021 to September 30, 2021)

(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
Six months ended		Million yen		%	Million yen	%	Million yen	%	Million yen	%
September 30, 2021		152,960		(5.4)	10,130	31.8	10,580	32.6	7,394	47.5
September 30, 2020		161,703		(4.6)	7,683	(21.4)	7,982	(19.6)	5,012	(34.0)

(Note) Comprehensive income:	Six months ended September 30, 2021:
	Six months ended September 30, 2020:

¥	7,901 million	[	10.2%]
¥	7,172 million	[	38.4%]

	Basic earnings	Diluted earnings per
	per share		share
Six months ended	Yen			Yen
September 30, 2021	135.18			-
September 30, 2020	91.63			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio
As of	Million yen			Million yen	%
September 30, 2021	481,162			209,697	43.2
March 31, 2021	472,440			207,537	43.6
(Reference) Equity: As of	September 30, 2021:	¥	208,098 million
As of	March 31, 2021:	¥	205,982 million

2. Dividends

				Annual dividends
	1st	2nd	3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
	Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2021	-		-	-		105.00	105.00
Fiscal year ending March 31, 2022	-		90.00
Fiscal year ending March 31, 2022				-		131.00	221.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
	Million yen		%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year	337,000		0.2	21,000	0.2	21,200		(1.7)	14,300	(16.7)	295.15
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

September 30, 2021:	55,591,502	shares
March 31, 2021:	55,591,502	shares
2) Total number of treasury shares at the end of the period:
September 30, 2021:	891,708	shares
March 31, 2021:	890,792	shares

3) Average number of shares during the period:
Six months ended September 30, 2021:	54,700,321	shares
Six months ended September 30, 2020:	54,701,549	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

					(Million yen)
				As of March 31,2021	As of September 30,2021
Assets
	Current assets
		Cash and deposits	43,769	52,463
		Notes receivable, accounts receivable from	203,082	177,265
		completed construction contracts and other
		Costs on construction contracts in progress	6,373	5,767
		Real estate for sale	2,543	1,644
		Costs on real estate business	4,794	5,081
		Raw materials and supplies	670	582
		Advances paid	9,306	11,647
		Other	4,897	13,282
		Allowance for doubtful accounts	(163)	(18)
		Total current assets	275,273	267,715
	Non-current assets
		Property, plant and equipment
			Buildings and structures, net	52,473	60,319
			Machinery, vehicles, tools, furniture and	1,180	1,453
			fixtures, net
			Land	83,759	87,984
			Leased assets, net	68	59
			Construction in progress	4,155	5,210
			Total property, plant and equipment	141,636	155,026
		Intangible assets	1,189	1,119
		Investments and other assets
			Investment securities	44,641	44,770
			Long-term loans receivable	599	686
			Retirement benefit asset	961	2,104
			Deferred tax assets	3,314	2,930
			Other	4,905	6,886
			Allowance for doubtful accounts	(80)	(78)
			Total investments and other assets	54,340	57,300
		Total non-current assets	197,166	213,446
	Total assets	472,440	481,162

1

				(Million yen)
			As of March 31,2021	As of September 30,2021
Liabilities
	Current liabilities
		Notes payable, accounts payable for construction	56,305	55,518
		contracts and other
		Short-term borrowings	35,039	20,039
		Commercial papers	20,000	20,000
		Current portion of bonds payable	-	10,000
		Income taxes payable	7,968	2,965
		Advances received on construction contracts in	18,703	20,177
		progress
		Provision for warranties for completed	9,815	7,810
		construction
		Provision for bonuses	2,894	3,232
		Provision for loss on construction contracts	1,488	2,005
		Provision for loss on real estate business and other	28	28
		Deposits received	34,306	62,708
		Other	4,579	1,963
		Total current liabilities	191,127	206,447
	Non-current liabilities
		Bonds payable	60,000	50,000
		Deferred tax liabilities	301	301
		Provision for environmental measures	2	-
		Retirement benefit liability	6,340	6,401
		Asset retirement obligations	636	698
		Other	6,494	7,616
		Total non-current liabilities	73,775	65,017
	Total liabilities	264,903	271,465
Net assets
	Shareholders' equity
		Share capital	23,513	23,513
		Capital surplus	20,780	20,780
		Retained earnings	154,041	155,700
		Treasury shares	(2,177)	(2,180)
		Total shareholders' equity	196,158	197,813
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	10,627	10,699
		securities
		Foreign currency translation adjustment	(296)	95
		Remeasurements of defined benefit plans	(506)	(509)
		Total accumulated other comprehensive income	9,824	10,284
	Non-controlling interests	1,554	1,598
	Total net assets	207,537	209,697
Total liabilities and net assets	472,440	481,162

2

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

		(Million yen)
	For the six months	For the six months
	ended September 30,2020	ended September 30,2021
Net sales
Net sales of completed construction contracts	155,599	145,130
Net sales in real estate business and other	6,103	7,829
Total net sales	161,703	152,960
Cost of sales
Cost of sales of completed construction contracts	141,190	128,110
Cost of sales in real estate business and other	3,830	5,258
Total cost of sales	145,020	133,369
Gross profit
Gross profit on completed construction contracts	14,408	17,019
Gross profit on real estate business and other	2,273	2,570
Total gross profit	16,682	19,590
Selling, general and administrative expenses	8,998	9,460
Operating profit	7,683	10,130
Non-operating income
Interest income	39	16
Dividend income	488	364
Reversal of allowance for doubtful accounts	8	147
Foreign exchange gains	-	76
Other	270	301
Total non-operating income	806	905
Non-operating expenses
Interest expenses	237	245
Foreign exchange losses	29	-
Financing expenses	136	9
Other	105	199
Total non-operating expenses	508	455
Ordinary profit	7,982	10,580
Extraordinary income
Gain on sale of non-current assets	0	2
Gain on sale of investment securities	226	-
Reversal of provision for environmental measures	-	0
Total extraordinary income	227	3
Extraordinary losses
Loss on sale of non-current assets	2	59
Loss on valuation of investment securities	-	21
Head office relocation expenses	112	-
Increase (decrease) in employee deposits	375	10
Other	140	0
Total extraordinary losses	630	91
Profit before income taxes	7,579	10,492
Income taxes	2,383	3,070
Profit	5,195	7,422
Profit attributable to non-controlling interests	183	27
Profit attributable to owners of parent	5,012	7,394

3