Hazama Ando CorporationTSE: 1719

Consolidated Financial Results for the Three Months Ended June 30, 2021

Aug 5, 2021 at 5:05 AM UTC · Issued by Hazama Ando Corporation

Disclaimer: This document is a partial English translation of the Japanese original which is filed with the Tokyo Stock Exchange and is only for reference purposes. In case of any discrepancy between this translation and the Japanese original, the latter shall prevail.

Consolidated Financial Results

for the Three Months Ended June 30, 2021

[Japanese GAAP]

August 5, 2021

Company name: HAZAMA ANDO CORPORATION

Stock exchange listing: Tokyo Stock Exchange

Code number: 1719

URL: https://www.ad-hzm.co.jp/

Representative: Masato Fukutomi, Representative Director and President

Contact: Toshihisa Kino, Corporate Communication Department General Manager

Phone: +81-3-6234-3699

Scheduled date of filing quarterly securities report: August 5, 2021

Scheduled date of commencing dividend payments: ―

Availability of supplementary briefing material on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

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

1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 1, 2021 to June 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


Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
June 30, 2021	73,728	(10.3)	4,966	(5.5)	4,542	3.8	2,995	3.6
June 30, 2020	82,225	15.1	5,255	93.9	4,375	75.3	2,892	76.4

(Note) Comprehensive income: Three months ended June 30, 2021: ¥3,424 million [ (7.5)%] Three months ended June 30, 2020: ¥3,702 million [348.9%]

	Basic earnings	Diluted earnings
	per share	per share

Three months ended	Yen	Yen
June 30, 2021	16.23	16.23
June 30, 2020	14.98	14.98

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio

	Million yen	Million yen	%
As of June 30, 2021	303,667	144,715	47.4
As of March 31, 2021	339,387	146,676	43.0

(Reference) Equity: As of June 30, 2021: ¥143,936 million As of March 31, 2021: ¥145,915 million

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

Yen

Fiscal year ended March 31, 2021

15.00

30.00

Fiscal year ending March 31, 2022

15.00

30.00

(Forecast)

(Note) Revision to the forecast for

dividends announced most recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 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
First half	157,000	(13.3)	8,500	(38.7)	7,600	(39.9)	5,100	(40.4)	27.71
Full year	372,000	5.6	24,900	(9.0)	23,400	(9.6)	15,800	(8.1)	85.98

(Note) Revision to the financial results forecast announced most recently: No

* Notes:

Changes in significant subsidiaries during the three months ended June 30, 2021 (changes in specified subsidiaries resulting in changes in scope of consolidation): No
Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes
Changes in accounting policies, changes in accounting estimates and retrospective restatement
1. Changes in accounting policies due to the revision of accounting standards: Yes
2. Changes in accounting policies other than 1) above: No
3. Changes in accounting estimates: No
4. Retrospective restatement: No
Total number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2021: 200,343,397 shares

March 31, 2021: 200,343,397 shares

Total number of treasury shares at the end of the period: June 30, 2021: 16,846,960 shares
March 31, 2021: 13,818,561 shares
Average number of shares during the period:

Three months ended June 30, 2021: 184,585,857 shares

Three months ended June 30, 2020: 193,030,577 shares

The Company has adopted a performance-linked stock remuneration plan using a trust. The Company's shares held by the trust (357,131 shares) are included in the total number of treasury shares at the end of the period and the average number of shares during the period is calculated and stated taking into account shares held by the trust.

* Explanation of the proper use of financial results forecast and other notes

The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and certain assumptions deemed reasonable. Actual results may differ significantly due to a wide range of factors.

1. Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

				(Million yen)

		As of March 31, 2021	As of June 30, 2021

Assets
Current assets

Cash and deposits		129,317		94,288
Notes receivable, accounts receivable from	121,461	121,084
completed construction contracts and other

Costs on construction contracts in progress		5,593		4,646
Other inventories	8,823	7,209
Other		9,023		11,470
Allowance for doubtful accounts	(12)	(12)
Total current assets		274,206		238,687
Non-current assets

Property, plant and equipment
Land	15,799	15,799
Other, net		13,755		13,365
Total property, plant and equipment	29,555	29,165
Intangible assets		1,505		1,411
Investments and other assets

Investment securities		21,697		22,274
Deferred tax assets	7,819	7,684
Other		4,605		4,444
Allowance for doubtful accounts	(1)	(1)
Total investments and other assets		34,120		34,402
Total non-current assets	65,181	64,979
Total assets		339,387		303,667

(Million yen)

As of March 31, 2021

As of June 30, 2021

Liabilities
Current liabilities
Notes payable, accounts	payable for	construction			70,624

contracts and other

Short-term borrowings				16,312
Current portion of bonds					291
Advances received on	construction	contracts in	27,385
progress

Provision for warranties for completed construction			2,129
Provision for bonuses				2,595
Provision for loss on construction contracts			1,248
Provision for loss on damage due to fire			5,996
Other					47,176
Total current liabilities				173,761
Non-current liabilities

57,104

16,298

291

21,191

2,101

758

1,063

5,877

35,457

140,146

Bonds payable	400	400
Long-term borrowings		8,271	8,136
Deferred tax liabilities	37	36
Retirement benefit liability		8,857	8,863
Provision for environmental measures	139	139
Provision for management board incentive plan trust		116	139
Other	1,127	1,090
Total non-current liabilities		18,949	18,806
Total liabilities		192,710	158,952
Net assets
Shareholders' equity
Share capital		17,006	17,006
Capital surplus	19,919	19,898
Retained earnings		115,086	115,278
Treasury shares	(10,187)	(12,747)
Total shareholders' equity		141,824	139,436
Accumulated other comprehensive income
Valuation difference on available-for-sale securities		3,754	4,111
Foreign currency translation adjustment	55	94
Remeasurements of defined benefit plans		281	293
Total accumulated other comprehensive income		4,091	4,499
Share acquisition rights		3	0
Non-controlling interests	758	778
Total net assets		146,676	144,715
Total liabilities and net assets		339,387	303,667

Quarterly Consolidated Statements of Income and Comprehensive Income (Quarterly Consolidated Statements of Income)
(Three Months Ended June 30)

				(Million yen)

		For the three months	For the three months
		ended June 30, 2020	ended June 30, 2021

Net sales
Net sales of completed construction contracts	77,306	69,050
Sales in other businesses		4,918		4,677
Total net sales		82,225	73,728
Cost of sales
Cost of sales of completed construction contracts	67,669	59,995
Cost of sales in other businesses		4,240		3,776
Total cost of sales		71,909	63,772
Gross profit
Gross profit on completed construction contracts	9,637	9,055
Gross profit - other business		678		900
Total gross profit		10,315	9,956
Selling, general and administrative expenses		5,060		4,989
Operating profit	5,255	4,966
Non-operating income
Dividend income	55	30
Foreign exchange gains		30		－
Other	58	44
Total non-operating income		144		75
Non-operating expenses
Interest expenses		83		76
Commission expenses	737	137
Foreign exchange losses		－		126
Other	204	158
Total non-operating expenses		1,024		499
Ordinary profit		4,375	4,542
Extraordinary income
Subsidy income	354		－
Total extraordinary income		354		－

Extraordinary losses

Loss on damage due to fire

Loss on tax purpose reduction entry of non-current assets

Loss on valuation of investment securities

Loss on litigation

354

－

Total extraordinary losses	386	40
Profit before income taxes	4,343	4,502
Income taxes	1,465	1,509
Profit	2,878	2,992
Loss attributable to non-controlling interests	(14)	(3)
Profit attributable to owners of parent	2,892	2,995

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