Tanabe Engineering : Summary of Consolidated Financial Results for the Six Months Ended September 30,2021

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended September 30, 2021 (Based on Japanese GAAP)

				November 8, 2021
Company name:	TANABE ENGINEERING CORPORATION
Stock exchange listing:	Tokyo
Stock code:	1828	URL https://www.tanabe-ind.co.jp/
Representative:	President and Representative Director	Yoshio Watanuki
	Director, Senior Executive officer and
Inquiries:	General Manager of	Yuichi Gommori	TEL [phone]
	Corporate Administration Division
Scheduled date to file Quarterly Securities Report:	November 12, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit attributable to
						owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen			%	Millions of yen		%
Six months ended September 30, 2021	20,299		20.9		1,457	32.8		1,502		31.3		1,015		47.2
Six months ended September 30, 2020	16,793		(2.4)		1,097	(1.8)		1,144			0.2		689		(6.6)
	Earnings per share		Diluted earnings per share
			Yen					Yen
Six months ended September 30, 2021			94.93					-
Six months ended September 30, 2020			64.47					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%				Yen
As of September 30, 2021		34,836					18,558				53.3		1,734.32
As of March 31, 2021		33,307					17,816				53.5		1,664.94
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended March 31, 2021		-			0.00			-				30.00			30.00
Year ending March 31, 2022		-			0.00
Year ending March 31, 2022 (Forecast)									-				27.00			27.00

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	39,000	2.3	2,300	(13.3)	2,350	(14.3)	1,600	(8.8)	149.52

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4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2021	10,728,000	shares	As of March 31, 2021	10,728,000	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	27,084	shares	As of March 31, 2021	27,084	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2021	10,700,916	shares	Six months ended September 30, 2020	10,700,916	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	4,525,013	4,405,823
Notes receivable, accounts receivable from completed	16,902,899	19,835,026
construction contracts and other
Costs on construction contracts in progress	1,737,883	261,665
Other inventories	490,175	490,542
Other	228,874	146,688
Allowance for doubtful accounts	(1,672)	(1,962)
Total current assets	23,883,174	25,137,784
Non-current assets
Property, plant and equipment
Buildings and structures	6,712,294	7,187,950
Machinery, vehicles, tools, furniture and fixtures	5,115,905	4,962,892
Land	3,143,837	3,143,837
Leased assets	358,902	363,487
Construction in progress	339,061	132,720
Accumulated depreciation	(7,636,796)	(7,612,772)
Total property, plant and equipment	8,033,204	8,178,116
Intangible assets	173,342	345,509
Investments and other assets
Investment securities	422,715	406,969
Deferred tax assets	673,806	669,868
Other	121,210	98,621
Total investments and other assets	1,217,732	1,175,459
Total non-current assets	9,424,279	9,699,085
Total assets		33,307,454	34,836,869

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			(Thousands of yen)
		As of March 31, 2021	As of September 30, 2021
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts	7,475,744	6,693,852
and other
Short-term borrowings	912,000	3,100,000
Lease obligations	40,269	47,396
Accounts payable - other	1,428,171	1,266,759
Accrued expenses	480,375	365,507
Income taxes payable	602,265	531,095
Advances received on construction contracts in progress	821,656	985,896
Provision for warranties for completed construction	36,372	39,645
Provision for loss on construction contracts	5,600	40,510
Provision for bonuses	1,163,017	846,277
Provision for bonuses for directors (and other officers)	60,000	25,000
Other	185,412	269,615
Total current liabilities	13,210,884	14,211,556
Non-current liabilities
Long-term borrowings	1,000,000	800,000
Lease obligations	75,338	64,312
Long-term accounts payable - other	130,000	130,000
Retirement benefit liability	1,074,881	1,072,228
Total non-current liabilities	2,280,219	2,066,540
Total liabilities	15,491,104	16,278,096
Net assets
Shareholders' equity
Share capital	885,320	885,320
Capital surplus	1,475,320	1,475,320
Retained earnings	15,605,123	16,324,966
Treasury shares	(7,020)	(7,020)
Total shareholders' equity	17,958,742	18,678,585
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	107,387	94,635
Foreign currency translation adjustment	(36,323)	(23,384)
Remeasurements of defined benefit plans	(213,457)	(191,064)
Total accumulated other comprehensive income	(142,392)	(119,812)
Total net assets	17,816,349	18,558,772
Total liabilities and net assets		33,307,454	34,836,869

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		September 30, 2020	September 30, 2021
Net sales	16,793,802	20,299,756
Cost of sales	13,809,474	16,862,188
Gross profit	2,984,328	3,437,568
Selling, general and administrative expenses	1,886,471	1,979,963
Operating profit	1,097,856	1,457,605
Non-operating income
Interest income	513	351
Dividend income	6,112	4,801
Rental income from land and buildings	19,993	21,643
Foreign exchange gains	14,845	3,356
Other	20,323	37,143
Total non-operating income	61,789	67,295
Non-operating expenses
Interest expenses	6,384	5,447
Commitment fees	4,910	13,660
Other	3,727	3,337
Total non-operating expenses	15,022	22,444
Ordinary profit	1,144,623	1,502,456
Extraordinary income
Gain on sale of non-current assets	6,044	246
Total extraordinary income	6,044	246
Extraordinary losses
Loss on disposal of non-current assets	687	14,551
Impairment losses	54,521	-
Loss on valuation of golf club membership	-	2,349
Total extraordinary losses	55,208	16,901
Profit before income taxes	1,095,459	1,485,801
Income taxes	405,542	469,936
Profit	689,916	1,015,865
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent		689,916	1,015,865

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