Summary of Consolidated Financial Results Three Months Ended June 30, 2022 (Based on Japanese GAAP)

August 2, 2022

Company name:

Axial Retailing Inc.

Stock exchange listings:

Tokyo Prime section

Securities code:

8255

URL:

https://www.axial-r.com/

Representative:

Kazuhiko Hara, President and Representative Director

Contact:

Bungo Yamagishi, Senior Managing Director

Tel.+81 258-66-6711

Quarterly statement filing date (scheduled):

August 10, 2022

Dividend payable date (scheduled):

None

Supplementary material for quarterly materials:

None

Briefing for quarterly results:

None

(Amounts less than one million yen are rounded down)

1. Consolidated results for the first quarter of the fiscal year ending March 2023 (from April 1, 2022 to June 30, 2022)

  1. Quarterly consolidated operating results (cumulative)

(% change YoY)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

1Q FY2023

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

60,872

1.3

2,413

-17.5

2,585

-13.3

1,734

-14.3

1Q FY2022

60,107

―

2,926

-27.5

2,981

-27.3

2,023

-27.7

(Note)

Comprehensive

income:

(1Q FY2023)

1,971million

yen [6.8%]

(1Q FY2022) 1,846million yen [-37.4%]

Basic earnings

Diluted earnings

per share

per share

1Q FY2023

Yen

―

Yen

75.28

1Q FY2022

87.82

―

(Note)

From the beginning of the fiscal year ending March 2022, the "Accounting Standard for Revenue Recognition" has

been applied. Since the accounting methods used for comparison are different, the rate of increase / decrease in sales for the first quarter of the fiscal year ending March 2022 compared to the same quarter of the previous year is not stated.

(2) Quarterly consolidated financial positions

Total assets

Net assets

Capital adequacy ratio

Net assets per share

1Q FY2023

Millions of yen

Millions of yen

%

Yen

117,539

74,763

63.6

3,244.70

FY 2022

116,855

74,059

63.4

3,214.13

(Reference)

Net assets attributable to owners of parent : (1Q FY2023)

74,763million yen (FY2022) 74,059million yen

2. Quarterly Dividends

Dividend per share

First quarter

Second quarter

Third quarter

Year end

Annual

FY2022

Yen

Yen

Yen

Yen

Yen

―

25.00

―

55.00

80.00

FY2023

―

FY2023 Forecast

25.00

―

55.00

80.00

(Note)

Revision of cash dividend forecast

for this period:

None

1

3. Forecast for the fiscal year ending March 31, 2023

(% change YoY)

Net sales

Operating profit

Ordinary profit

Profit attributable

Basic earnings

to owners of parent

per share

1Q FY2023

Millions of yen

％

Millions of yen

％

Millions of yen

％

Millions of yen

％

Yen

123,000

0.3

4,900

-14.4

5,000

-15.8

3,300

-16.8

143.22

FY2023

247,500

0.4

9,800

-4.9

9,900

-6.7

6,100

-13.8

264.74

(Note) Revision of

consolidated

results forecast in this quarter:

None

※ Notes

(1) Material changes in subsidiaries during this period

None

(Changes in scope of consolidation resulting from change is subsidiaries):

  1. Application of accounting methods used specifically for preparing the consolidated quarterly financial statements: None
  2. Changes in accounting policies, accounting estimates and retrospective restatement (see below iv )

ⅰ Changes in accounting policies due to revisions of accounting standard:

Yes

ⅱ Changes in accounting policies due to reasons other than the above (i)

None

ⅲ

Changes in accounting estimates:

None

ⅳ

Restatement of prior period financial statements

None

(Note) From the beginning of the fiscal year ending March 2023, "Implementation Guidance on Accounting Standard for Fair Value Measurement" have been applied.

(4) Number of issued shares (common stock)

  • Number of issued shares at the end of fiscal year (including treasury stock)

(1Q FY2023)

23,388,039shares

(FY2022)

23,388,039shares

  • Number of shares of treasury stock at the end of fiscal year

(1Q FY2023)

346,333shares

(FY2022)

346,283shares

  • Average number of shares during the period (cumulative)

(1Q FY2023)

23,041,729shares

(1Q FY2022)

23,041,896shares

  • This quarterly earnings release is not subject to audit procedures to be performed by certified public accountants or an audit firm.
  • Explanation relating to the appropriate use of earnings forecasts, and other noteworthy items
    Forward-looking statements in this earnings release, such as forecasts of results of operations, are based on the information currently available and certain assumptions that we regard as reasonable and therefore actual results may differ materially from those contained in or suggested by any forward-looking statements.
  • 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.

2

Consolidated Financial Statements

１ Consolidated Balance Sheet

(Yen million)

Previous year

Current Q1 period

(As of Mar 31, 2022)

(As of Jun 30, 2022)

Assets

Current assets

Cash and deposits

18,452

18,205

Notes and accounts receivable - trade

4,154

3,986

Lease investment assets

634

610

Merchandise and finished goods

4,905

5,375

Work in process

23

29

Raw materials and supplies

359

359

Income tax refund receivable

458

563

Other

3,438

2,952

Allowance for doubtful accounts

-3

-2

Total current assets

32,423

32,079

Non-current assets

Property, plant and equipment

Buildings and structures, net

39,256

39,521

Machinery, equipment and vehicles, net

627

613

Land

21,244

21,243

Leased assets, net

2,590

2,525

Construction in progress

903

1,329

Other, net

2,832

2,837

Total property, plant and equipment

67,453

68,071

Intangible assets

Goodwill

2

2

Other

2,452

2,471

Total intangible assets

2,455

2,474

Investments and other assets

Investment securities

2,964

3,319

Long-term loans receivable

9

8

Retirement benefit asset

145

153

Deferred tax assets

3,439

3,466

Lease and guarantee deposits

6,879

6,904

Other

1,130

1,081

Allowance for doubtful accounts

-45

-20

Total investments and other assets

14,523

14,913

Total non-current assets

84,432

85,459

Total assets

116,855

117,539

3

(Yen million)

Previous year

Current Q1 period

(As of Mar 31, 2022)

(As of Jun 30, 2022)

Liabilities

Current liabilities

Accounts payable - trade

15,576

16,256

Contract liabilities

680

661

Lease obligations

375

355

Income taxes payable

1,254

1,040

Provision for bonuses for directors (and other officers)

346

74

Provision for bonuses

2,193

2,679

Other

7,839

7,315

Total current liabilities

28,266

28,383

Non-current liabilities

Lease obligations

2,839

2,764

Asset retirement obligations

5,916

5,910

Long-term guarantee deposits

5,608

5,555

Provision for retirement benefits for directors (and other officers)

36

―

Retirement benefit liability

2

2

Other

127

160

Total non-current liabilities

14,530

14,392

Total liabilities

42,796

42,775

Net assets

Shareholders' equity

Share capital

3,159

3,159

Capital surplus

15,749

15,749

Retained earnings

54,963

55,431

Treasury shares

-1,226

-1,226

Total shareholders' equity

72,647

73,114

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

1,137

1,389

Adjustments related to retirement benefits

274

260

Total accumulated other comprehensive income

1,412

1,649

Total net assets

74,059

74,763

Total liabilities and net assets

116,855

117,539

4

  • Consolidated Statements of Income and Comprehensive Income Consolidated Income Statement

(Yen million)

Previous Q1 period

Current Q1 period

(From Apr 1, 2021

(From Apr 1, 2022

To Jun 30, 2021)

To Jun 30, 2022)

Net sales

60,107

60,872

Cost of sales

42,440

43,060

Gross profit

17,666

17,811

Selling, general and administrative expenses

Employees' salaries

2,369

2,488

Miscellaneous salaries and wages

4,264

4,373

Provision for bonuses for directors (and other officers)

99

74

Provision for bonuses

925

928

Provision for retirement benefits for directors (and other officers)

0

―

Retirement benefit expenses

238

200

Rent expenses on land and buildings

1,297

1,326

Depreciation

1,077

1,124

Amortization of goodwill

―

0

Provision of allowance for doubtful accounts

0

―

Other

4,467

4,881

Total selling, general and administrative expenses

14,739

15,398

Operating profit

2,926

2,413

Non-operating income

Interest income

11

9

Dividend income

36

36

Insurance income

14

102

Other

13

34

Total non-operating income

76

183

Non-operating expenses

Interest expenses

13

11

Loss on cancellation of contracts

8

―

Other

0

0

Total non-operating expenses

21

12

Ordinary profit

2,981

2,585

Extraordinary income

Gain on sale of non-current assets

0

―

Total extraordinary income

0

―

Extraordinary losses

Loss on retirement of non-current assets

1

3

Impairment losses

0

26

Loss on valuation of investment securities

7

1

Total extraordinary losses

9

31

Profit before income taxes

2,971

2,553

Income taxes - current

870

944

Income taxes - deferred

77

-125

Total income taxes

947

819

Net profit

2,023

1,734

Profit attributable to non-controlling interests

―

―

Profit attributable to owners of parent

2,023

1,734

5

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Axial Retailing Inc. published this content on 02 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2022 06:09:26 UTC.