Note: This document has been translated from 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.

October 1, 2021

Consolidated Financial Results

for the Six Months Ended August 31, 2021

(Under Japanese GAAP)

Company name:

Daiseki Co., Ltd.

Listing:

Tokyo Stock Exchange / Nagoya Stock Exchange

Securities code:

9793

URL:

https://www.daiseki.co.jp/english/IR/presentation.html

Representative:

Hideki Hashira, President and Representative Director

Inquiries:

Hideki Katase, Executive Officer, General Manager of Headquarters of Planning and

Management

Telephone:

+81-52-611-6322

Scheduled date to file quarterly securities report:

October 8, 2021

Scheduled date to commence dividend payments:

October 26, 2021

Preparation of supplementary material on quarterly financial results: Yes

Holding of quarterly financial results briefing:

Yes (for analysts and institutional investors)

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

1. Consolidated financial results for the six months ended August 31, 2021 (from March 1, 2021 to August 31, 2021)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Six months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

August 31, 2021

29,041

12.2

6,829

36.8

6,904

34.3

4,318

37.7

August 31, 2020

25,873

(3.7)

4,990

(8.7)

5,140

(7.4)

3,134

(12.0)

Note: Comprehensive income

For the six months ended August 31, 2021:

¥4,863 million

[48.6%]

For the six months ended August 31, 2020:

¥3,271 million

[(14.6)%]

Basic earnings per share

Diluted earnings per

share

Six months ended

Yen

Yen

August 31, 2021

84.06

-

August 31, 2020

61.05

-

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 has 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

Equity-to-asset ratio

As of

Millions of yen

Millions of yen

%

August 31, 2021

99,143

84,351

77.8

February 28, 2021

95,756

80,717

77.2

Reference: Equity

As of August 31, 2021

¥77,176 million

As of February 28, 2021:

¥73,992 million

2. Cash dividends

Annual dividends per share

First quarter-end

Second quarter-

Third quarter-end

Fiscal year-end

Total

end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

-

28.00

-

28.00

56.00

February 28, 2021

Fiscal year ending

-

28.00

February 28, 2022

Fiscal year ending

-

28.00

56.00

February 28, 2022

(Forecast)

Notes: 1. Revisions to the forecast of cash dividends most recently announced: None

2. The Company conducted a 1.2-for-1 share split of its common shares on the effective date of September 1, 2021, with a substantive increase in the year-end dividend forecast for the fiscal year ending February 28, 2022, of ¥5.60.

3. Consolidated earnings forecasts for the fiscal year ending February 28, 2022 (from March 1, 2021 to February 28, 2022)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Fiscal year ending

56,600

9.8

12,600

23.0

12,800

22.4

8,200

25.7

159.61

February 28, 2022

Notes: 1. Revisions to the earnings forecasts most recently announced: Yes

Regarding revisions to the consolidated earnings forecasts, please refer to "Notification of Revisions to Full-year Earnings Forecasts" (in Japanese only) announced today (October 1, 2021).

2. The Company conducted a 1.2-for-1 share split of its common shares on the effective date of September 1, 2021. The stated basic earnings per share for the consolidated earnings forecasts for the fiscal year ending February 28, 2022 take the said share split into account.

  • Notes
  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
  2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
  3. Changes in accounting policies, changes in accounting estimates, and restatement
    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
  5. Number of issued shares (common shares)
    1. Total number of issued shares at the end of the period (including treasury shares)

As of August 31, 2021:

51,600,000 shares

As of February 28, 2021:

51,600,000 shares

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

As of August 31, 2021:

227,065 shares

As of February 28, 2021:

232,026 shares

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

Six months ended August 31, 2021:

51,369,736 shares

Six months ended August 31, 2020:

51,346,516 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, 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 and significant notes thereto..........................................................

4

(1)

Quarterly consolidated balance sheet............................................................................................................

4

(2)

Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive

income ..........................................................................................................................................................

6

Quarterly consolidated statement of income (cumulative) ...........................................................................

6

Quarterly consolidated statement of comprehensive income (cumulative) ..................................................

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

Significant events after reporting period.......................................................................................................

8

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Daiseki Co., Ltd. (9793)

1. Qualitative Information on Quarterly Consolidated Financial Results

  1. Explanation of operating results
    During the six months ended August 31, 2021, the Japanese economy was affected by the prolonged effects of the spread of novel coronavirus disease (COVID-19) that has been continuing since last year, with the government declaring a state of emergency and intermittently applying priority measures to prevent the spread of the disease over a wide area. The outlook remained uncertain due to restrictions on economic activities and sluggish personal consumption. However, as COVID-19 vaccination progresses worldwide, expectations of a recovery in the global economy in some regions increased, and as a result, the domestic industrial production in Japan recovered to a level close to that before the COVID-19 crisis, with prices of resources, including crude oil and non-ferrous metals, recovering.
    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. Further, with a rise in crude oil price, the selling price of recycled fuel has been on a gradual rise, and the improved profitability contributed to higher net sales and profits. However, impacted by the state of emergency declaration, the business environment continued to be unable to fully recover to the pre-COVID-19 level due to factors such as the postponement of maintenance cases, and the drop in automobile production due to the shortage of semiconductors. In spite of this business environment, the Company managed to increase both net sales and profits through continuous sales activities and cost reduction, and secured a record-high profit on a second quarter basis.
    In the soil pollution treatment business of Daiseki Eco. Solution Co., Ltd., its profitability remained unimproved owing to extended sluggishness in the unit price setting of the soil pollution treatment; however, as the impact of COVID-19 was almost completely eliminated, prompted business activities to get mobilized to pick up its brisk pace as opposed to the same period of the previous fiscal year. As a result, the Company focused on planning and proposal-based sales activities, including the acquisition of large-scale infrastructure development-related business and the completion of multiple construction cases, and the profitability ratio increased after it was emphasized over net sales through sales activities, and thus ensured increased net sales and profits.
    The lead recycling business in Daiseki MCR CO., Ltd. recorded significant increases in net sales and profits underpinned by considerable improvement in profitability thanks to steady production and higher lead price.
    In the washing business for large tanks in System Kikou Co., Ltd., both net sales and profits slightly underperformed the plan during the six months ended August 31, 2021, due to the recording of net sales concentrating in the second half, although the operation runs at the 100% capacity. Meanwhile, there is no problem ascertained in achieving the full-year target as sales orders have been received steadily.
    As a result, for the six months ended August 31, 2021, net sales, operating profit, ordinary profit, and profit attributable to owners of parent were ¥29,041 million (up 12.2% year on year), ¥6,829 million (up 36.8% year on year), ¥6,904 million (up 34.3% year on year), and ¥4,318 million (up 37.7% 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 August 31, 2021 increased by ¥3,387 million compared with the end of the previous fiscal year, amounting to ¥99,143 million. The increase was largely due to an increase in notes and accounts receivable - trade of ¥1,659 million and long-term time deposits of ¥1,500 million, respectively. Liabilities decreased by ¥247 million compared with the end of the previous fiscal year, amounting to ¥14,792 million. The decrease was largely due to a decrease in long-term borrowings of ¥396 million and short-term borrowings of ¥250 million, respectively, offset by an increase in income taxes payable of ¥467 million. Net assets increased by ¥3,634 million compared with the end of the previous fiscal year, amounting to ¥84,351 million. The increase was largely due to an increase in retained earnings of ¥3,119 million by recording profit gains, etc.

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Daiseki Co. Ltd. published this content on 06 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 October 2021 06:05:02 UTC.