FOR TRANSLATION PURPOSE ONLY

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.

August 5, 2022

Summary of Consolidated Financial Results

for the First Quarter of the Fiscal Year Ending March 31, 2023

(Based on Japanese GAAP)

Company name:

TAKAMIYA CO., LTD.

Stock exchange listing:

Tokyo (Prime Market)

Stock code:

2445

URL: https://www.takamiya.co/

Representative:

Representative Director, President and Chairman KAZUMASA TAKAMIYA

Scheduled quarterly report submission date:

August 8, 2022

Preparation of supplementary material on financial results:

Yes

Holding of financial results meeting:

No

(Amounts less than one million yen are rounded down)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023 (April 1, 2022 to June 30, 2022)

(1) Consolidated operating results

Percentages indicate year-on-year changes

Net sales

Operating income

Ordinary income

Profit attributable to

owners of parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

First quarter of the fiscal year

9,017

(2.4)

181

133.2

436

198.0

313

-

ending March 31, 2023

First quarter of the fiscal year

9,242

(4.3)

77

(83.6)

146

(61.5)

22

(90.4)

ended March 31, 2022

(Note) Comprehensive income

First Quarter of Fiscal Year Ending March 31, 2023 : 311 million yen

35.5%

First Quarter of Fiscal Year Ending March 31, 2022 : 229 million yen

(11.5)%

Quarterly

Diluted earnings

Earnings per

per share

share

Yen

Yen

First quarter of the fiscal year

6.73

6.52

ending March 31, 2023

First quarter of the fiscal year

0.49

0.48

ended March 31, 2022

(2) Consolidated financial condition

Total assets

Net assets

Capital adequacy ratio

Net assets per share

Million yen

Million yen

%

Yen

First quarter of the fiscal year

59,473

19,276

31.5

402.01

ending March 31, 2023

Fiscal year ended

59,081

19,337

31.8

403.04

March 31, 2022

(Reference) Shareholders' equity

First Quarter of Fiscal Year Ending March 31, 2023: 18,725 million yen

Fiscal year ended March 31, 2022: 18,773 million yen

2. Cash dividends

Annual dividends per share

End of the 1Q

End of the 2Q

End of the 3Q

End of term

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

-

6.00

-

8.00

14.00

March 31, 2022

Fiscal year ending

-

March 31, 2023

Fiscal year ending

6.00

-

8.00

14.00

March 31, 2023 (Forecast)

(Note) Revisions from the most recently announced dividend forecast: None

3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

Percentages indicate year-on-year changes

Net sales

Operating income

Ordinary income

Profit attributable to

Earnings

owners of parent

per share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Second quarter (cumulative)

21,600

7.9

650

(14.4)

600

(33.1)

350

29.4

7.51

Full year

45,000

13.1

2,300

36.7

2,150

10.0

1,450

50.2

31.13

(Note) Revisions from the most recently announced earnings forecast: None

FOR TRANSLATION PURPOSE ONLY

Notes

  1. Changes in significant subsidiaries during the current quarter consolidated cumulative period (changes in specified subsidiaries resulting in changes in the scope of consolidation) : None
  2. Application of special accounting methods for the preparation of quarterly consolidated financial statements: None
  3. Changes in accounting policies, changes in accounting estimates, and restatements
    • Changes in accounting policies due to revision of accounting standards, etc.: None
    • Changes in accounting policies other than (1) above : None
      ③ Changes in accounting estimates : None
      ④ Restatement : None
  2. Number of shares issued (common stock)
  • Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2022

46,585,600 shares

As of March 31, 2022

46,585,600 shares

②

Number of treasury shares at the end of the period

As of June 30, 2022

7,020 shares

As of March 31, 2022

7,020 shares

③

Average number of shares during the period

(cumulative quarterly)

As of June 30, 2022

46,578,580 shares

As of June 30, 2021

46,570,547 shares

* The quarterly financial statements are not subject to audit by certified public accountants or auditing firms.

*Explanation of the appropriate use of financial forecasts and other special notes (Cautionary Note Regarding Forward-Looking Statements, etc.)

The forward-looking statements, including business forecasts, contained in this document are based on information currently available to the

Company and on certain assumptions deemed reasonable, and are not intended as a promise by the Company that they will be achieved. Actual results may differ materially due to a variety of factors. Please refer to "1. Qualitative information on quarterly financial results (3) Explanation of consolidated financial forecasts and other forward-looking statements" on page 2 of the attached materials for the conditions that form the assumptions for the forecast of financial results and cautions concerning the use of the forecast of financial results.

(How to obtain quarterly financial results supplementary materials)

Supplementary materials for the quarterly financial results will be posted on the Company's website.

2

FOR TRANSLATION PURPOSE ONLY

Table of contents of attached documents

1. Qualitative information on quarterly financial results .......................................................................................................................

2

(1)

Explanation of business results ..............................................................................................................................................

2

(2) Explanation of financial condition ………………………………………………………………………………...…………………...

2

(3)

Explanation of consolidated financial forecasts and other forward-looking statements ………………………………………...

2

2. Quarterly consolidated financial statements and major notes

3

(1)

Quarterly consolidated balance sheets ..................................................................................................................................

3

(2)

Quarterly consolidated statements of income and consolidated statements of comprehensive income ……………………...

5

Quarterly consolidated statements of income

For the first quarter consolidated cumulative period.....................................................................................................

5

Quarterly consolidated Statements of comprehensive income

For the first quarter consolidated cumulative period.....................................................................................................

6

(3)

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

7

(Notes on going concern assumption) .................................................................................................................................

7

(Note in the event of a significant change in the amount of shareholders' equity) ..............................................................

7

(Segment information) .........................................................................................................................................................

7

(Significant Subsequent Events) …………….......................... ............................. .............................. ................................

9

1

FOR TRANSLATION PURPOSE ONLY

1. Qualitative information on quarterly financial results

(1) Explanation of business results

During the first quarter of the consolidated cumulative period under review, the global economy showed signs of recovery as restrictions on economic activity eased due to the impact of the novel coronavirus disease (COVID-19). However, the outlook remains uncertain due to soaring raw material prices, geopolitical risks such as the situation in Russia and Ukraine, and exchange rate fluctuations.

In the domestic construction industry, in which the Group is involved, although some civil engineering related construction starts have been postponed, the private sector construction work, mainly renovation work in the Tokyo metropolitan area, is performing well. Overseas, in the Philippines, the government has lifted restrictions on going out and movement, and there are signs of a recovery in construction investment.

In this environment, the Group has set a management vision of " Create new value through transformation and aim for sustainable growth by becoming a partner to our customers " in the medium-term management plan announced on May 31, 2021. We have designated the current consolidated fiscal year as the first year of the platform, and will provide a business platform that allows customers to utilize our sales, rental, and other business bases as if they were their own. In addition, we will work on four measures: Strengthen products for maintenance/repairs and infrastructure redevelopment, Nurture businesses beyond the temporary equipment sector, and Redevelop overseas business bases.

As a result, for the first quarter of the current fiscal year, the Company posted net sales of 9,017 million yen (down 2.4% year-on- year), operating income of 181 million yen (up 133.2% year-on-year), ordinary income of 436 million yen (up 198.0% year-on-year), and net income attributable to owners of the parent of 313 million yen (up 1,272.6% year-on-year).

Operating results by segment are as follows. (Sales business)

In the temporary construction sector, interest in the "Iq System" remains high, and inquiries for new procurement, replacement, and additional purchase projects are growing steadily.

On the other hand, in the non-temporary construction sector, construction of large-scalehigh-performance glass greenhouses for agriculture came to an end in the first half of the previous consolidated fiscal year, and sales decreased compared to the same period of the previous year.

As a result, sales were 2,472 million yen (down 22.1% year-on-year) and operating income was 127 million yen (down 59.1% year- on-year).

(Rental Business)

In private sector construction work, the severe situation continues from the previous consolidated fiscal year, with construction suspended, delayed, and postponed. Meanwhile, the lending volume of the "Iq System" has been growing steadily, mainly for maintenance and repair work in the Tokyo metropolitan area. In the civil engineering sector, although some construction starts have been postponed, the lending volume has increased.

As a result, sales were 5,706 million yen (up 6.0% year-on-year) and operating income was 396 million yen (up 534.4% year-on- year).

(Overseas Business)

At HORY VIETNAM (Vietnam) and Hory Korea (South Korea), the procurement of raw materials and parts has not been significantly affected, and shipments of temporary construction materials to Japan are growing steadily.

At DIMENSION-ALL INC. (Philippines), the government's restrictions on going out and movement have been lifted, and inquiries related to infrastructure construction are increasing.

As a result, sales were 2,043 million yen (up 43.9% year-on-year) and operating income was 105 million yen (up 122.0% year-on- year).

(2) Explanation of financial condition

Total assets at the end of the current first quarter consolidated accounting period were 59,473 million yen, an increase of 392 million yen from the end of the previous consolidated fiscal year. This was mainly due to a decrease of 1,117 million yen in Cash and deposits, a decrease of 330 million yen in Notes and accounts receivable trade and contract assets, and an increase of 865 million yen in Merchandise and finished goods, and an increase of 145 million yen in Raw materials and supplies, and an increase of 286 million yen in Assets for rent, net, and an increase of 190 million yen in Buildings and structures (net).

Total liabilities amounted to 40,197 million yen, an increase of 453 million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase of 564 million yen in short-term loans payable, a decrease of 256 million yen in Income taxes payable.

Total net assets amounted to 19,276 million yen, a decrease of 61 million yen from the end of the previous fiscal year. This was mainly due to a decrease of 59 million yen in retained earnings resulting from 313 million yen in net income attributable to owners of the parent and 372 million yen in dividends from surplus.

(3) Explanation of consolidated financial forecasts and other forward-looking statements

Regarding the consolidated earnings forecast, there is no change to the consolidated earnings forecast for the second quarter consolidated cumulative period and the full year announced in the "Summary of Financial Results for the Fiscal Year Ending March 2022" dated May 12, 2022.

2

FOR TRANSLATION PURPOSE ONLY

2. Quarterly consolidated financial statements and major notes

(1) Quarterly Consolidated Balance Sheet

Million yen

Fiscal year ended March 31, 2022

First quarter of the fiscal year ending

March 31, 2023

Assets

Current assets

Cash and deposits

8,836

7,719

Notes and accounts receivable trade and contract

10,834

10,503

assets

Merchandise and finished goods

3,748

4,614

Work in process

1,193

1,328

Raw materials and supplies

1,638

1,784

Other

725

877

Allowance for doubtful accounts

(295)

(308)

Total current assets

26,681

26,519

Non-current assets

Property, plant and equipment

Assets for rent

38,502

39,506

Accumulated depreciation - Assets for rent

(26,323)

(27,041)

Assets for rent, net

12,179

12,465

Buildings and structures

9,738

10,057

Accumulated depreciation and impairment loss

(4,078)

(4,206)

Buildings and structures (net)

5,659

5,850

Machinery, equipment and vehicles

3,157

3,397

Accumulated depreciation

(1,920)

(2,030)

Machinery, equipment and vehicles (net)

1,237

1,367

Land

7,851

7,856

Lease assets

1,232

1,269

Accumulated depreciation

(820)

(879)

Lease assets, net

411

389

Construction in progress

451

278

Other

1,687

1,737

Accumulated depreciation

(1,148)

(1,207)

Other (net)

539

529

Total tangible assets

28,329

28,737

Intangible assets

Leasehold right

327

327

Other

459

503

Total intangible fixed assets

787

831

Investments and other assets

Investment securities

432

479

Guarantee deposits

749

754

Net defined benefit asset

74

75

Deferred tax assets

766

761

Other

1,292

1,349

Allowance for doubtful accounts

(33)

(34)

Total investments and other assets

3,282

3,385

Total non-current assets

32,399

32,954

Total assets

59,081

59,473

3

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SRG Takamiya Co. Ltd. published this content on 09 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2022 11:05:05 UTC.