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Consolidated Financial Results

for the Nine Months Ended November 30, 2021

[Japanese GAAP]

January 05, 2022

Company name: Daiseki Co., Ltd.

Stock exchange listing: Tokyo, Nagoya

Code number: 9793

URL: https://www.daiseki.co.jp/english/index.html

Representative: Hideki Hashira, President and Representative Director

Contact: Hideki Katase, Executive Officer, General Manager of Headquarters of Planning and Management

Phone: 052（611）6322

Scheduled date of filing quarterly securities report: January 12, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: No

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

1. Consolidated Financial Results for the Nine Months Ended November 30, 2021 (March 01, 2021 to November 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

Nine months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

November 30, 2021

43,420

12.1

10,103

31.5

10,206

30.0

6,409

31.3

November 30, 2020

38,704

(5.9)

7,681

(10.7)

7,848

(10.0)

4,879

(12.7)

(Note) Comprehensive income:

Nine months ended November 30, 2021:

¥

7,210 million

[

37.6%]

Nine months ended November 30, 2020:

¥

5,237 million

[

(13.0) %]

Basic earnings

Diluted earnings per

per share

share

Nine months ended

Yen

Yen

November 30, 2021

125.09

-

November 30, 2020

95.00

-

Note: The Company conducted a 1.2-for-1 share split of its common shares on the effective date of September 1, 2021. Accordingly, basic earnings per share have been calculated on the premise that the share split was conducted at the beginning of the fiscal year ended February 28, 2021.

(2) Consolidated Financial Position

Total assets

Net assets

Capital adequacy ratio

As of

Million yen

Million yen

%

November 30, 2021

97,786

81,360

75.6

February 28, 2021

95,756

80,717

77.2

(Reference) Equity: As of

November 30, 2021:

¥

73,979 million

As of

February 28, 2021:

¥

73,992 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 February 28, 2021

-

28.00

-

28.00

56.00

Fiscal year ending February 28, 2022

-

28.00

-

Fiscal year ending February 28, 2022

32.00

60.00

(Forecast)

Notes: 1. Revision to the forecast for dividends announced most recently:

Yes

  1. Regarding revision to the forecast for dividends, please refer to "Notice on Revision to Forecast for Dividends for the Fiscal Year Ending February 28, 2022 (64th Term)" announced today (January 5, 2022).
  2. The Company conducted a 1.2-for-1 share split of its common shares on the effective date of September 1, 2021.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2022 (March 01, 2021 to February 28, 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

56,600

9.8

12,600

23.0

12,800

22.4

8,200

25.7

160.56

(Note) Revision to the financial results forecast announced most recently:

No

* Notes:

(1) Changes in significant subsidiaries during the nine months ended November 30, 2021

(changes in specified subsidiaries resulting in changes in scope of consolidation):

No

New

-

(Company name:

)

Exclusion:

-

(Company name:

)

(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
    1. Changes in accounting policies due to the revision of accounting standards: No
    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)
    1. Total number of issued shares at the end of the period (including treasury shares):

November 30, 2021:

51,000,000

shares

February 28, 2021:

51,600,000

shares

2) Total number of treasury shares at the end of the period:

November 30, 2021:

431,135

shares

February 28, 2021:

232,026

shares

3) Average number of shares during the period:

Nine months ended November 30, 2021:

51,233,426

shares

Nine months ended November 30, 2020:

51,353,737

shares

Note: The Company conducted a 1.2-for-1 share split of its common shares on September 1, 2021. Total number of issued shares at the end of the period, total number of treasury shares at the end of the period, and average number of shares outstanding during the period have been calculated on the premise that the share split was conducted at the beginning of the fiscal year ended February 28, 2021.

  • 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
    The forecast figures stated above reflect projections determined based on the information currently available and may contain uncertain factors in large part. Actual business results, etc. may differ from the above forecast figures due to changes in earnings results, among others.

Daiseki Co., Ltd. (9793)

Attached Material

1. Qualitative Information on Quarterly Consolidated Financial Results ...............................................................

2

(1)

Explanation of operating results ...................................................................................................................

2

(2)

Explanation of financial position..................................................................................................................

2

(3)

Explanation of consolidated earnings forecasts and other forward-looking statements ...............................

3

2. Quarterly Consolidated Financial Statements .....................................................................................................

4

(1)

Quarterly Consolidated Balance Sheets........................................................................................................

4

(2)

Quarterly Consolidated Statements of Income and Comprehensive Income................................................

6

Quarterly Consolidated Statements of Income (For the nine months)..........................................................

6

Quarterly Consolidated Statements of Comprehensive Income (For the nine months)................................

7

(3)

Notes to quarterly consolidated financial statements....................................................................................

8

Notes on premise of going concern ..............................................................................................................

8

Notes on significant changes in the amount of shareholders' equity ............................................................

8

- 1 -

Daiseki Co., Ltd. (9793)

1. Qualitative Information on Quarterly Consolidated Financial Results

  1. Explanation of operating results
    During the nine months ended November 30, 2021, the state of emergency declared by the Japanese government amid the prolonged effects of the spread of novel coronavirus disease (COVID-19) that has been continuing since last year, and the priority measures to prevent the spread of the disease, which was adopted intermittently over wide areas of the nation, became a significant drag on economic activities in Japan. However, as COVID-19 vaccination progresses worldwide, the number of newly infected people began decreasing, and positive developments began to be seen, including lifting of the state of emergency at the end of September and gradual easing of restrictions. Still, the outlook remained uncertain around the world as a new variant of COVID-19 emerged. Furthermore, the industrial production in Japan, which had shown a recovering trend, began trending downward in August, affected by a global shortage of semiconductors and supply chain disruptions.
    Amid such an economic situation, a mainstay business of the Company group (the "Group"), the industrial waste treatment business centered on industrial wastewater treatment, has seen an upward trend in order volumes and higher plant operation rate accompanied by a recovery in the domestic industrial production, as compared to last summer. However, the pace of increase in order volumes began slowing in August, affected by a drop in domestic industrial production. In spite of this business environment, reputation of the Company's recycling-centered processing method and recycled fuel grew as efforts to reduce CO2 emissions gained momentum globally. Against this backdrop, we began making capital investments aimed at ensuring growth over a medium- to long-term. In terms of sales activities, the relaxation of restrictions due to COVID- 19 enabled proactive sales developments. As a result, the Company managed to increase both net sales and profits and achieve a record-highthird-quarter profit.
    In the soil remediation business of Daiseki Eco. Solution Co., Ltd., unit price remained low as the soil remediation market continued to be sluggish. However, as the impact of COVID-19 was almost completely eliminated, we were able to step up sales activities. These included efforts to win large-scale infrastructure development-related deals, and consulting sales activities that took advantage of the Company's strengths, which improved margins through differentiation from industry peers. Thus, the Company ensured increased net sales and profits.
    The lead recycling business in Daiseki MCR Co., Ltd. recorded increases in net sales and profits underpinned by considerable improvement in profitability thanks to operation rates remaining close to 100% and higher lead prices.
    In the washing business for large tanks in System Kikou Co., Ltd., both net sales and profits increased, as the operation ran at the 100% capacity. In addition, the Company worked to prepare for business expansion for the next fiscal year and beyond, stepping up efforts to retain and train human resources.
    As a result, for the nine months ended November 30, 2021, net sales, operating profit, ordinary profit, and profit attributable to owners of parent were ¥43,420 million (up 12.1% year on year), ¥10,103 million (up 31.5% year on year), ¥10,206 million (up 30.0% year on year), and ¥6,409 million (up 31.3% year on year), respectively, with the Group logging record highs in net sales and profits by securing the increases in both.
    As the Group consists of a single business segment, the environment-related business, the information by segment is omitted.
  2. Explanation of financial position
    Total assets as of November 30, 2021 increased by ¥2,029 million compared with the end of the previous fiscal year, amounting to ¥97,786 million. The increase was largely due to respective increases in notes and accounts receivable - trade of ¥2,609 million and long-term time deposits of ¥1,500 million, respectively offset by a decrease in cash and deposits of ¥2,275 million. Liabilities increased by ¥1,386 million compared with the end of the previous fiscal year, amounting to ¥16,426 million. The increase was largely due to an increase in short-term borrowings of ¥1,010 million. Net assets increased by ¥643 million compared with the end of the previous fiscal year, amounting to ¥81,360 million. The increase was largely due to increases in retained earnings of ¥1,516 million and non-controlling interests of ¥656 million by recording profit gains, etc., respectively offset by a ¥1,526 million decrease due to an increase in treasury shares resulting from purchase, cancellation, etc. of treasury shares.

- 2 -

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Daiseki Co. Ltd. published this content on 06 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 January 2022 06:17:09 UTC.