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 Year Ended May 31, 2021

(Based on Japanese GAAP)

July 15, 2021

Company name:

SANKI SERVICE CORPORATION

Stock exchange listing:

Tokyo

Stock code:

6044

URL http://www.sanki-s.co.jp

Representative:

President&chief Executive officer

Tatsuo Kitakoshi

Inquiries:

Corporate Plannning Department Minister

Hideki Fujimoto

TEL 079-289-4411

Scheduled date of ordinary general meeting of shareholders:

August 27, 2021

Scheduled date to file Securities Report:

August 30, 2021

Scheduled date to commence dividend payments:

August 30, 2021

Preparation of supplementary material on financial results:

Yes

Holding of financial results meeting:

Yes

(for analysts and institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended May 31, 2021 (from June 1, 2020 to May 31, 2021)

(1) Consolidated operating results

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

%

Year ended May 31, 2021

11,525

(1.3)

288

(29.0)

293

(28.0)

175

(35.5)

Year ended May 31, 2020

11,679

5.7

406

(37.7)

408

(38.0)

272

(36.8)

Earnings per share

Diluted earnings per

Profit attributable to

Ordinary profit/total

Operating profit/net

share

owners of

assets

sales

parent/equity

Yen

Yen

%

%

%

Year ended May 31, 2021

29.70

-

6.0

5.9

2.5

Year ended May 31, 2020

46.33

46.29

9.7

8.7

3.5

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of May 31, 2021

5,093

2,964

58.2

498.87

As of May 31, 2020

4,847

2,877

59.2

486.39

(3) Consolidated cash flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash equivalents

operating activities

investing activities

financing activities

at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended May 31, 2021

666

(110)

183

1,645

Year ended May 31, 2020

162

(148)

(186)

903

2. Cash dividends

Annual dividends per share

Total cash

Dividend payout

Ratio of dividends

to net assets

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

dividends (Total)

ratio (Consolidated)

(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

Year ended May 31, 2020

-

0.00

-

25.00

25.00

147

54.0

5.2

Year ended May 31, 2021

-

0.00

-

15.00

15.00

89

50.5

3.0

Year ending May 31, 2022

-

0.00

-

25.00

25.00

51.8

(Forecast)

1

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

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Six months ending

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

5,870

1.2

119

(10.7)

120

(11.7)

75

(8.1)

12.71

November 30, 2021

Full year

12,500

8.5

450

55.8

452

53.8

286

63.0

48.22

4. Notes

(1) Changes in significant subsidiaries during the year ended May 31, 2021

Yes

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

(2) 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:

No

Changes in accounting policies due to other reasons:

No

Changes in accounting estimates:

No

Restatement of prior period financial statements:

No

(3) Number of issued shares (common shares)

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

As of May 31, 2021

5,943,485

shares

As of May 31, 2020

5,896,085

shares

Number of treasury shares at the end of the period

As of May 31, 2021

1,789

shares

As of May 31, 2020

189

shares

Average number of shares during the period

Year ended May 31, 2021

5,919,807

shares

Year ended May 31, 2020

5,883,010

shares

2

Consolidated financial statements

Consolidated balance sheets

(Thousands of yen)

As of May 31, 2020

As of May 31, 2021

Assets

Current assets

Cash and deposits

1,136,551

1,880,757

Notes and accounts receivable - trade

2,218,783

1,750,035

Securities

-

54,986

Costs on construction contracts in progress

44,242

33,579

Raw materials and supplies

49,904

37,503

Other

217,945

202,219

Allowance for doubtful accounts

(5,097)

(898)

Total current assets

3,662,330

3,958,183

Non-current assets

Property, plant and equipment

Buildings and structures

356,263

357,819

Accumulated depreciation

(120,289)

(132,736)

Accumulated impairment

(6,311)

(6,311)

Buildings and structures, net

229,661

218,771

Machinery, equipment and vehicles

3,502

3,864

Accumulated depreciation

(3,331)

(3,742)

Machinery, equipment and vehicles, net

170

121

Tools, furniture and fixtures

44,975

44,322

Accumulated depreciation

(38,605)

(38,327)

Tools, furniture and fixtures, net

6,370

5,995

Land

93,797

93,797

Leased assets

47,720

48,280

Accumulated depreciation

(22,559)

(32,740)

Leased assets, net

25,160

15,539

Total property, plant and equipment

355,160

334,226

Intangible assets

Software

216,154

341,850

Leased assets

12,362

9,526

Other

134,117

5,586

Total intangible assets

362,634

356,964

Investments and other assets

Investment securities

146,807

111,640

Long-term prepaid expenses

107,652

135,282

Retirement benefit asset

22,785

1,199

Deferred tax assets

118,848

132,867

Other

76,016

68,148

Allowance for doubtful accounts

(4,921)

(4,921)

Total investments and other assets

467,188

444,217

Total non-current assets

1,184,983

1,135,408

Total assets

4,847,313

5,093,592

3

(Thousands of yen)

As of May 31, 2020

As of May 31, 2021

Liabilities

Current liabilities

Accounts payable for construction contracts

858,883

767,448

Current portion of long-term borrowings

40,036

89,992

Lease obligations

15,906

14,801

Income taxes payable

79,845

60,970

Provision for bonuses

110,000

110,000

Other

518,606

446,325

Total current liabilities

1,623,277

1,489,538

Non-current liabilities

Long-term borrowings

-

295,847

Lease obligations

27,292

13,383

Retirement benefit liability

145,851

161,193

Asset retirement obligations

16,967

18,453

Long-term accounts payable - other

156,545

150,885

Other

223

185

Total non-current liabilities

346,880

639,948

Total liabilities

1,970,157

2,129,486

Net assets

Shareholders' equity

Share capital

590,985

616,652

Capital surplus

476,485

502,152

Retained earnings

1,820,399

1,848,796

Treasury shares

(274)

(274)

Total shareholders' equity

2,887,595

2,967,327

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

(15,167)

(1,735)

Foreign currency translation adjustment

(4,743)

(1,485)

Total accumulated other comprehensive income

(19,910)

(3,221)

Non-controlling interests

9,471

-

Total net assets

2,877,156

2,964,105

Total liabilities and net assets

4,847,313

5,093,592

4

Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

(Thousands of yen)

Fiscal year ended

Fiscal year ended

May 31, 2020

May 31, 2021

Net sales

11,679,180

11,525,334

Cost of sales

9,016,115

8,896,479

Gross profit

2,663,065

2,628,855

Selling, general and administrative expenses

2,256,405

2,340,001

Operating profit

406,660

288,853

Non-operating income

Interest income

1,362

1,587

Dividend income

1,209

1,324

Rental income from buildings

2,416

2,223

Commission income

1,233

1,101

Foreign exchange gains

-

1,154

Other

1,194

2,107

Total non-operating income

7,417

9,498

Non-operating expenses

Interest expenses

1,967

2,148

Taxes and dues

1,625

125

Foreign exchange losses

423

-

Share-based compensation expenses

-

1,575

Other

1,534

561

Total non-operating expenses

5,550

4,409

Ordinary profit

408,526

293,942

Extraordinary losses

Loss on liquidation of subsidiaries

-

19,317

Total extraordinary losses

-

19,317

Profit before income taxes

408,526

274,624

Income taxes - current

170,846

127,109

Income taxes - deferred

(17,089)

(21,111)

Total income taxes

153,756

105,998

Profit

254,770

168,626

Loss attributable to non-controlling interests

(17,764)

(7,168)

Profit attributable to owners of parent

272,534

175,795

5

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Sanki Service Corporation published this content on 19 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2021 06:02:05 UTC.