Meisei Industrial Co., Ltd.TSE: 1976

Consolidated Financial Results For 2Q FY 2023

Oct 31, 2022 at 8:19 AM UTC · Issued by Meisei Industrial Co., Ltd.

[Translation for reference only]

ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT

This is an English translation of the original Japanese-language document and is provided for convenience only. In all cases, the Japanese-language original shall take precedence.

October 31, 2022

Consolidated Financial Results

for the First Six Months of the Fiscal Year Ending March 31, 2023

Company name:	MEISEI INDUSTRIAL CO., LTD.
Listing:	Tokyo Stock Exchange, Prime
Securities code:	1976
URL:	https://www.meisei-kogyo.co.jp/en/
Representative:	Toshiteru Otani, Representative Director, Chairman and Chief Executive Officer (CEO)
Inquiries:	Susumu Yamamoto, Executive Officer, General Manager of Finance Division
	TEL: +81-6-6447-0275

Scheduled date to file quarterly securities report:	November 11, 2022
Scheduled date to commence dividend payments:	November 17, 2022
Preparation of supplementary material on quarterly financial results:	None
Holding of quarterly financial results presentation meeting:		None

(Note: Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31,

2023 (from April 1, 2022 to September 30, 2022)

(1) Consolidated operating results

(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		%

September 30, 2022	25,722			15.2			2,799		42.6	3,119		44.0	2,118		48.9
September 30, 2021	22,323			(4.8)			1,962		(19.1)	2,167		(16.3)	1,423		(18.5)
Note:	Comprehensive income
	Six months ended September 30, 2022:	¥2,449 million [ 56.4%]
	Six months ended September 30, 2021:	¥1,566 million [ (13.4)%]

		Net income			Diluted net
		per share		income per share
Six months ended			Yen				Yen
September 30, 2022	42.56					－
September 30, 2021	27.76					－

(2) Consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
As of	Millions of yen	Millions of yen	%	Yen
September 30, 2022	73,364	57,395	77.7	1,144.98
March 31, 2022	71,149	55,924	78.1	1,116.33

Reference: Shareholders' equity
As of September 30, 2022:	¥57,019 million
As of March 31, 2022:	¥55,562 million

Meisei Industrial Co., Ltd.

2. Cash Dividends

				Cash dividends per share
		First quarter-		Second quarter-	Third quarter-		Fiscal year-end		Annual
		end		end	end

Fiscal year ended	Yen		Yen	Yen		Yen		Yen
March 31, 2022	-	10.00	-	20.00	30.00
Fiscal year ending
March 31, 2023	-	12.00
Fiscal year ending				-	16.00	28.00
March 31, 2023 (Forecast)

Note:	Revisions to the cash dividend forecasts most recently announced: Yes

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes.)

		Net sales		Operating profit	Ordinary profit	Profit attributable to	Net income
			owners of parent	per share

		Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Fiscal year ending
March 31, 2023	52,000		7.5	5,600	4.9	5,800	2.8	3,950	4.1	79.33
Note:	Revisions to the earnings forecasts most recently announced: Yes

* Notes

Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
Application of special accounting for preparing quarterly consolidated financial statements: None
Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements after error corrections
1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

b. Changes in accounting policies due to other reasons:	None
c. Changes in accounting estimates:	None
d. Restatements of prior period financial statements after error corrections:	None

Number of issued shares (common shares)

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

As of September 30, 2022	56,386,718 shares
As of March 31, 2022	56,386,718 shares

b. Number of treasury shares at end of period

As of September 30, 2022	6,587,288 shares
As of March 31, 2022	6,614,632 shares

c. Average number of outstanding shares during period

Six months ended September 30, 2022	49,780,246 shares
Six months ended September 30, 2021	51,272,279 shares

Note: The figures stated for the number of treasury shares at end of period include shares of the Company that are held by a trust established to distribute shares to officers (Officers' Share Distribution Trust). The calculation used to calculate the average number of outstanding shares during period excludes treasury shares, which include shares of the Company held by the Officers' Share Distribution Trust.

Meisei Industrial Co., Ltd.

The quarterly financial results are not subject to quarterly review.
Proper use of earnings forecasts and other special notes
(Caution regarding forward-looking statements)
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not purport to be a promise by the Company to realize such statements. Actual business and other results may differ substantially due to various factors.

Meisei Industrial Co., Ltd.

Quarterly Consolidated Financial Statements

(1) Quarterly consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of September 30, 2022

Assets
Current assets
Cash and deposits	27,192	29,833
Notes receivable, accounts receivable from	21,203	19,887
completed construction contracts and other

Securities	300	300
Costs on construction contracts in progress	554	886
Merchandise and finished goods	278	228
Raw materials and supplies	190	196
Other	143	241
Allowance for doubtful accounts	(16)	(14)
Total current assets	49,847	51,560
Non-current assets
Property, plant and equipment
Buildings and structures	10,040	10,075
Machinery and vehicles	4,798	4,930
Land	11,200	11,789
Other	2,212	2,309
Accumulated depreciation	(13,148)	(13,471)
Total property, plant and equipment	15,102	15,633
Intangible assets	74	66
Investments and other assets
Investment securities	3,731	3,736
Investment property	2,007	1,984
Retirement benefit asset	30	17
Deferred tax assets	15	22
Other	431	442
Allowance for doubtful accounts	(91)	(100)
Total investments and other assets	6,124	6,103
Total non-current assets	21,301	21,803
Total assets		71,149	73,364

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Meisei Industrial Co., Ltd.

		(Millions of yen)
	As of March 31, 2022	As of September 30, 2022

Liabilities
Current liabilities
Notes payable, accounts payable for construction	6,582	6,520

contracts and other

Accounts payable - trade	181	328
Short-term borrowings	960	－
Income taxes payable	847	998
Contract liabilities	1,201	1,815
Provision for bonuses	432	425
Provision for bonuses for directors (and other	85	－

officers)

Provision for warranties for completed construction	94	101
Other	1,490	1,755
Total current liabilities	11,876	11,946
Non-current liabilities
Long-term borrowings	－	800
Retirement benefit liability	175	125
Provision for retirement benefits for directors (and	168	134
other officers)

Provision for share awards for directors (and other	112	107

officers)

Deferred tax liabilities	1,948	1,964
Deferred tax liabilities for land revaluation	483	483
Asset retirement obligations	16	16
Other	442	390
Total non-current liabilities	3,348	4,021
Total liabilities	15,224	15,968
Net assets
Shareholders' equity
Share capital	6,889	6,889
Capital surplus	999	999
Retained earnings	48,317	49,435
Treasury shares	(3,071)	(3,050)
Total shareholders' equity	53,134	54,273
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	932	917
Revaluation reserve for land	958	958
Foreign currency translation adjustment	427	766
Remeasurements of defined benefit plans	108	102
Total accumulated other comprehensive income	2,427	2,745
Non-controlling interests	362	376
Total net assets	55,924	57,395
Total liabilities and net assets	71,149	73,364

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