This document is a translation of the Japanese financial statements and is not in conformity with accounting principles of the United States.

SENKO Group Holdings Co., Ltd.

Summary of Financial Statements for the Fiscal Year Ended March 31, 2021
[Japan GAAP]

Name of Listed Company:
Code Number:
Representative:
Inquiries:

May 14, 2021
SENKO Group Holdings Co., Ltd.
Stock Listed on: The First Section of the Tokyo Stock Exchange
9069
URL https://www.senkogrouphd.co.jp/en/
Title: President and Representative Director
Name: Yasuhisa Fukuda
Title: Executive Officer, Responsible for PR & IR
Name: Satoru Kokubo
Tel. (03) 6862-8842

Scheduled Date of Annual Meeting of Shareholders:
Scheduled Date of Issue of Financial Report:
Supplemental Information Materials:
Information Meeting for Financial Results:

June 25, 2021
June 25, 2021

Scheduled Date of Dividend Paid: June 28, 2021

Yes
Yes (for analysts)(Amounts less than ¥1 million have been rounded down)

1. Consolidated Operating Results for the Fiscal Year Ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(1) Consolidated Operating Results
Operating revenue
Million yen
572,405
570,030

Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2020
(Note) Comprehensive income

%
0.4
7.6

Fiscal year ended March 31, 2021: ¥17,838 million (67.1%)
Profitper share
Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2020
(Reference) Equity in earnings (losses) of affiliates:(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
21,520
4.2
22,2307.2
14,24017.9
20,656
5.2
20,7444.4
12,081
3.4
Fiscal year ended March 31, 2020: ¥10,677 million (1.2%)

Diluted profit
per share

Yen
93.81
79.51

Fiscal year ended March 31, 2021: ¥400 million

Return on equity

Yen
78.40
73.75

%
11.0
9.9

Ratio of ordinary
profit to total
assets
%5.6
6.0

Ratio of operating
profit to operating
revenue%
3.8
3.6

Fiscal year ended March 31, 2020: ¥408 million(2) Consolidated Financial Position
Total assets
Million yen
435,260
356,308

As of March 31, 2021
As of March 31, 2020
(Reference) Equity:
As of March 31, 2021: ¥134,775 million

Net assets
Million yen
145,754
134,181

Equity ratio
%
31.0
35.1

Net assets per shareYen
909.49823.61

As of March 31, 2020: ¥125,158 million(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Million yen
31,85831,098

Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2020

Cash flows fromfinancing activities

Million yen(46,309)(18,030)

Million yen
36,757(9,155)

Cash and cash
equivalents at end of
periodMillion yen
50,371
27,142

2. Dividends
June
30
Yen
Fiscal year ended March 31, 2020
Fiscal year ended March 31, 2021
Fiscal year ending March 31, 2022
(Forecast)−−−

Annual dividend
September December
30
31
Yen
Yen
−
13.00
−
13.00
15.00

−

March
31
Yen
13.00
15.00

Yen
26.00
28.00

15.00

30.00

Total

Aggregate
Dividend on
Payout ratio
amountequity ratio(Consolidated)(Consolidated)(Annual)Million yen
%
%
3,969
32.7
3.2
4,219
29.8
3.2
30.7

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2022 (From April 1, 2021 to March 31, 2022)

First half ending September 30, 2021
Fiscal year ending March 31, 2022

Operating revenue

Operating profit

Million yen
304,000
625,000

Million yen
11,10024,600

%
11.2
9.2

%
15.1
14.3

(Percentage figures represent year-on-year changes)
Profit attributable toProfitOrdinary profit
owners of parent
per share
Million yen% Million yen%
Yen
11,100
13.6
6,500
13.5
43.86
25,00012.5
14,5001.8
97.85(Note) As the Company will apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. from the beginning of the
fiscal year ending March 31, 2022, the above forecast of consolidated operating results is after the application of the said accounting
standard, etc.
Notes(1) Changes in significant subsidiaries during the fiscal year (Changes in specified subsidiaries associated with change in scope of
consolidation): None
(2) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: None(b) Changes other than in (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
(3) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of March 31, 2021:

152,952,221 shares

As of March 31, 2020:

152,861,921 shares

4,764,111 shares

As of March 31, 2020:

898,113 shares(b) Treasury shares
As of March 31, 2021:(c) Average number of sharesFiscal year ended March 31, 2021:

151,799,390 sharesFiscal year ended March 31, 2020:

151,936,796 shares(Note) Starting with the third quarter of the fiscal year ended March 31, 2018, the number of treasury shares at term-end includes Senko
shares owned by the trust accounts of Performance-linked Stock Compensation Plan for Employees (as of March 31, 2021: 341,740
shares; as of March 31, 2020: 348,880 shares) and Performance-linked Stock Compensation Plan for Directors (as of March 31,
2021: 348,873 shares; as of March 31, 2020: 352,988 shares).
[Reference] Overview of Non-Consolidated Operating Results
Non-Consolidated Operating Results for the Fiscal Year Ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(1) Non-Consolidated Operating Results

Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2020

Operating revenue
Million yen%
11,781
13.9
10,342
11.1(Percentage figures represent year-on-year changes)
Operating profit
Ordinary profit
ProfitMillion yen%
Million yen%
Million yen
%
5,661
26.0
5,607
20.0
1,693
(57.6)
4,491
3.7
4,672
(0.7)
3,995
8.4

Profitper share
Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2020

Diluted profit
per share
Yen
11.16
26.29

Yen
9.29
24.36

Total assets
Million yen
260,559
216,568

Net assets
Million yen
71,131
76,630(2) Non-Consolidated Financial Position

As of March 31, 2021
As of March 31, 2020
(Reference) Equity:
As of March 31, 2021: ¥70,721 million

Equity ratio
%
27.1
35.2

Net assets per shareYen
477.24501.42As of March 31, 2020: ¥76,198 million

This financial report is exempt from audit conducted by certified public accountants or an audit corporation.
Cautionary statement regarding forecasts of operating results and special notes
 Forward-looking statements in these materials are based on information available to management at the time this report was prepared andassumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number ofreasons. For information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see “Forecasts”
on page 3.
 The supplementary material on financial results will be available on the Company’s website.

Index to accompanying materials

1. Overview of Operating Results and Others ................................................................................................................................................. 2(1) Overview of operating results and others ........................................................................................................................................... 2(2) Financial condition ............................................................................................................................................................................... 3(3) Fundamental policy for distribution of earnings and dividends for the current and the next fiscal years ......................................... 4(4) Business risk ....................................................................................................................................................................................... 4
2. Basic Concept Regarding the Selection of Accounting Standards ............................................................................................................. 5
3. Consolidated Financial Statements ............................................................................................................................................................. 6(1) Consolidated balance sheets .............................................................................................................................................................. 6(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 8
Consolidated statements of income................................................................................................................................................... 8
Consolidated statements of comprehensive income....................................................................................................................... 10(3) Consolidated statements of changes in equity ................................................................................................................................. 11(4) Consolidated statements of cash flows ............................................................................................................................................ 13

1

1.

Overview of Operating Results and Others(1) Overview of operating results and others(a) Overview of results of operations in the fiscal year ended March 31, 2021
In the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021), the business environment has been highly challenging witha resurgence in the spread of the novel coronavirus disease (COVID-19) despite the gradual resumption of economic activity following
the lifting of the first state of emergency.
In this environment, the Senko Group has strived to recover and improve its business performance, as part of the fourth year of the“Senko Innovation Plan 2021 (SIP21)” five-year medium-term business plan.
The following provides an outline of our main activities in the fiscal year ended March 31, 2021.
In the Logistics, we welcomed “UACJ Logistics Corporation,” which operates heavy-weight-cargo transportation and other business,and Nagase Logistics Co., Ltd. (the company name was changed to “SENKO Nagase Logistics Co., Ltd.”), which provides storage,transportation, logistics processing and other services for chemicals, to the group in December.
In logistics centers, SENKO Co., Ltd. activated the “Tachikawa Logistics Center” (Tachikawa City, Tokyo) in July and the “Kurihashi PD
Center” (Kazo City, Saitama Prefecture) in February. Moreover, Runtec Corporation commenced operations of the frozen andrefrigerated storage warehouses of its Moji Branch (Moji Ward, Kitakyushu City) in April and Meiko Branch (Minato Ward, Nagoya City)
in March.
In the marine shipping, Senko Line Co., Ltd. launched the newly constructed chemical tanker “NISSEN MARU” in May, NIPPONMARINE CO., LTD. launched the newly constructed chemical tanker “KISSHO” in August, and Senko Line Co., Ltd. launched the
newly constructed freighter “SENOU MARU” in March.
Outside Japan, the Company established the local subsidiary “Senko Logistics (Europe) GmbH” in Düsseldorf, Germany in July in an
initiative to strengthen systems to develop a European logistics network.
In the Trading & Commerce, we welcomed household paper wholesale distributor “AZFIT CO., Ltd.” to the group in February, and areaiming for synergistic effects with group company AST CORPORATION, which covers the same household paper wholesale
operations.
In Others, we welcomed children’s daycare center and children’s club operator “Procare Co., Ltd.” to the group in August andmembership-based wholesale and retail business operator “TERAUCHI CO., LTD.” to the group in November.
Furthermore, VENUS CO., LTD., which operates day-care locations, has opened six new locations, KEIHANNA helper station Co.,
Ltd., which operates residential nursing homes, has opened two new locations and Life-eat Co., Ltd., which operates conveyor belt
sushi chain restaurants, has opened a new location.
In regard to initiatives to reduce environment impact, SENKO Co., Ltd. received the Logistics Environmental Conservation Activity
Award and the Special Logistics Environment Award in June and the 2020 Award for Excellent Business Entities Working on Modal
Shift in November from the Japan Association for Logistics and Transport. In December, TOKYO NOHIN DAIKO Co., LTD. received
the 2020 MLIT Minister’s Award for Companies Contributing to Environmental Conservation in the Transport Industry from Japan’s
Ministry of Land, Infrastructure, Transport and Tourism.
The Company signed the United Nations Global Compact in October and was registered as a participating company. The Company
supports the 10 principles related to protecting human rights, eliminating improper labor practices, conserving the environment andpreventing corruption and is aiming to contribute to developing a sustainable society as a corporate group that supports people in their
daily lives.
The full-year performance was as follows.
(Unit: Millions of Yen)
Fiscal year ended
March 31, 2020
570,030

Fiscal year ended
March 31, 2021
572,405

Operating profit

20,656

Ordinary profit
Profit attributable to owners ofparentOperating revenue

Change

%
2,375

0.4%

21,520863

4.2%

20,744

22,230

1,486

7.2%

12,081

14,240

2,159

17.9%

The fiscal year ended March 31, 2021 was significantly affected by the COVID-19 pandemic, but as a result of group-wide efforts to
expand sales, reduce expenses, improve cost efficiency and improve productivity, as well as the promotion of M&A, consolidated
operating revenue, consolidated operating profit, consolidated ordinary profit, and profit attributable to owners of parent all increased
year on year.
The full-year operating revenue by segment was as follows.

2

Logistics(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2020
392,728

Fiscal year ended
March 31, 2021
387,350

17,847

19,401

Segment income

Change%(5,377)(1.4%)

1,554

8.7%

Although there was an increase in cargo volume for discount stores, drugstores and other chain stores, the COVID-19 pandemic
caused a significant decrease in the volume for housing-related industry, chemical-related industry, and frozen and refrigerated cargo
for school lunch and restaurant industry, and as a result, operating revenue decreased ¥5,377 million year on year to ¥387,350 million.
In terms of profits, together with the initiatives to expand sales, reduce expenses, improve cost efficiency and improve productivity,
there were measures including turning UACJ Logistics Corporation as well as SENKO Nagase Logistics Co., Ltd. into consolidated
subsidiaries, so segment income was ¥19,401 million, up ¥1,554 million year on year.
Trading & commerce(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2020
161,314

Fiscal year ended
March 31, 2021
161,820

2,119

3,035

Segment income

Change

%
505

0.3%

915

43.2%

Operating revenue increased ¥505 million year on year to ¥161,820 million and segment income increased ¥915 million year on yearto ¥3,035 million mainly due to increased sales of daily necessities associated with increased demand for home deliveries, and thepromotion of price adjustments to the sales price of household paper.
Others(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2020
15,987

Fiscal year ended
March 31, 2021
23,235

1,419

(61)

Segment income (loss)

Change

%
7,247

45.3%

(1,481)–

Operating revenue increased to ¥23,235 million, up ¥7,247 million year on year primarily due to making Procare Co., Ltd. and
TERAUCHI CO., LTD. into a consolidated subsidiary. On the other hand, due to the spread of COVID-19, the number of customers
decreased significantly at hotels, fitness gyms, day-service nursing care facilities, restaurants, etc., and segment income fell ¥1,481
million year on year to record a segment loss of ¥61 million.
(b) Forecasts
There are concerns about a resurgence of COVID-19, so the outlook for the Japanese economy remains uncertain.
In this environment, the Senko Group heads into the final year of its five-year medium-term business plan aiming for sustainablegrowth as a corporate group that supports people in their daily lives.
For the next fiscal year, the Group forecasts consolidated operating revenue of ¥625,000 million, consolidated operating profit of¥24,600 million, consolidated ordinary profit of ¥25,000 million, and profit attributable to owners of parent of ¥14,500 million.
(2) Financial condition(a) Assets, liabilities and net assets
Total assets
Total assets as of March 31, 2021 were ¥435,260 million, ¥78,952 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥163,891 million, up ¥39,680 million from the end of the previous fiscal year. This was mainly due toincreases of ¥24,051 million in cash and deposits, ¥8,327 million in trade notes and accounts receivable, ¥4,621 million inmerchandise and finished goods.
Non-current assets totaled ¥271,369 million, up ¥39,984 million from the end of the previous fiscal year. This was primarily due toincreases of ¥38,576 million in property, plant and equipment and ¥4,020 million in intangible assets, despite a decrease of ¥2,611
million in investments and other assets.
Liabilities
Liabilities as of March 31, 2021 increased ¥67,379 million from the end of the previous fiscal year to ¥289,506 million.
Current liabilities totaled ¥133,715 million, up ¥22,076 million from the end of the previous fiscal year. This was mainly due to increasesof ¥3,397 million in trade notes and accounts payable, ¥2,027 million in electronically recorded obligations - operating, ¥7,070 million incurrent portion of bonds payable and ¥10,009 million in current portion of convertible-bond-type bonds with share acquisition rights
despite a decrease of ¥7,215 million in short-term borrowings.
Non-current liabilities totaled ¥155,791 million, up ¥45,302 million from the end of the previous fiscal year. This was mainly attributable3

to increases of ¥12,952 million in bonds payable, ¥12,089 million in convertible-bond-type bonds with share acquisition rights and¥19,048 million in long-term borrowings.
Net assets
Net assets as of March 31, 2021 rose ¥11,573 million from the end of the previous fiscal year to ¥145,754 million. This was primarily
due to increases of ¥10,301 million in retained earnings, ¥2,429 million in remeasurements of defined benefit plans and ¥1,977 million
in non-controlling interests, despite a decrease of ¥3,986 million in purchase of treasury shares. The equity ratio as of March 31, 2021
decreased by 4. 1 percentage points to 31. 0% from the end of the previous fiscal year.
(b) Cash flows
Cash and cash equivalents as of March 31, 2021 increased by ¥23,228 million from the end of the previous fiscal year to ¥50,371
million.
Net cash provided by operating activities amounted to ¥31,858 million. This was mainly due to outlays of ¥4,483 million in gain on
bargain purchase and ¥6,822 million in income taxes paid, despite profit before income taxes of ¥22,602 million, depreciation of¥17,419 million and impairment losses of ¥3,053 million.
Net cash used in investing activities totaled ¥46,309 million. This was mainly due to purchase of property, plant and equipment of¥33,618 million and purchase of shares of subsidiaries resulting in change in scope of consolidation of ¥11,386 million.
Net cash provided by financing activities totaled ¥36,757 million. This was mainly due to proceeds from long-term borrowings of¥21,566 million and proceeds from issuance of bonds of ¥42,110 million, despite repayments of long-term borrowings of ¥14,510
million, repayments of finance lease obligations of ¥4,465 million, purchase of treasury shares of ¥4,312 million and dividends paid of¥3,967 million.
(c) Performance indicators associated with cash flows
Fiscal years ended March 31

2017

2018

2019

2020

2021

Equity ratio (%)

35.1

33.7

35.0

35.1

31.0

Market capitalization equity ratio (%)

38.0

37.7

41.0

35.7

35.7

Interest-bearing debt to cash flow ratio

4.1

4.9

4.2

3.6

5.2

Interest coverage ratio

21.9

25.4

26.2

28.3

27.7

Notes: Equity ratio: Equity / Total assets
Market capitalization equity ratio: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest expenses•

All figures are based on the consolidated financial statements.

•

Market capitalization is calculated by multiplying the fiscal year-end stock price and the number of shares issued at theend of the fiscal year (after deducting treasury shares).

•

Operating cash flows are the figure shown in the consolidated statement of cash flows. Interest-bearing debt is the sum of
all liabilities on the consolidated balance sheet on which interest is paid. Interest expenses are the figure shown in the
consolidated statement of cash flows.

(3) Fundamental policy for distribution of earnings and dividends for the current and the next fiscal years
While securing internal reserves necessary for future business development and management structure reinforcement, the basic
policy of the Company is to return profits to shareholders by implementing stable dividends and dividends that are linked to businessresults with the aim of enhancing the return to its shareholders.
In accordance with this policy, the year-end dividend for the fiscal year ended March 31, 2021 had been set at ¥13.00 per share, but
considering the steady progress in earnings during the fiscal year, we intend to make this ¥15.00 per share, and combined with thealready declared interim dividend of ¥13.00, the total annual dividend is expected to be ¥28.00.
Regarding the dividend forecast for the fiscal year ending March 31, 2022, based on the forecast of operating results, the Company
plans to pay an annual dividend of ¥30.00 per share (interim dividend of ¥15.00, year-end dividend of ¥15.00).
(4) Business risk
From the most recent Securities Report (dated June 25, 2020), which includes a section about business and other risks, the following
matters should be added. Please view the following URL for information on additional matters and such Securities Report.
Additional matters (Quarterly Securities Report for the third quarter of fiscal year ended March 31, 2021 Part 1. Information on the
Company, 2. Overview of the Business, (1) Business Risk - Infectious Disease)https://www.senkogrouphd.co.jp/ir/pdf/20210212.pdf (Japanese only)
Financial Reporthttps://www.senkogrouphd.co.jp/ir/pdf/20200625.pdf (Japanese only)42.

Basic Concept Regarding the Selection of Accounting Standards
To facilitate comparisons of its consolidated financial statements across time periods and with other companies, the Senko Group intends
to prepare its consolidated financial statements based on Japanese generally accepted accounting principles (JGAAP) for the time being.
With regard to the adoption of International Financial Reporting Standards (IFRS), the Company intends to respond to this issue
appropriately while giving consideration to various circumstances in Japan and overseas.

5

3.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits

28,47952,530Trade notes and accounts receivable

74,361

82,689

Electronically recorded monetary claims - operating

2,651

2,519

Merchandise and finished goods

8,368

12,990Work in process

679

316

Raw materials and supplies

567

651

9,125

12,221(21)(28)

124,210

163,891

Buildings and structures

145,107

169,354

Accumulated depreciation(80,965)(89,153)

Buildings and structures, net

64,14180,201

Machinery, equipment and vehicles

67,912

77,660

Accumulated depreciation(44,383)(52,603)

Machinery, equipment and vehicles, net

23,52825,056

Tools, furniture and fixtures

9,333

10,384

Accumulated depreciation(7,061)(7,995)Tools, furniture and fixtures, net

2,272

2,388

Land

61,66981,628

Leased assets

19,24520,025

Accumulated depreciation(6,173)(6,231)

Leased assets, net

13,071

13,793

Construction in progress

6,293

6,484

170,978

209,554

Goodwill

7,762

10,689

Other

5,391

6,485

Total intangible assets

13,154

17,174

Investment securities

17,662

17,398Long-term loans receivable

3,452

507

Retirement benefit asset

2,094

5,471

Guarantee deposits

14,556

13,086

Deferred tax assets

5,996

4,936

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Total property, plant and equipment
Intangible assets

Investments and other assets

Other

4,269

3,647

Allowance for doubtful accounts

(779)

(407)

Total investments and other assets

47,25144,640Total non-current assets

231,384

271,369

Business commencement expenses

713

0

Total deferred assets

713

0356,308435,260

Deferred assets

Total assets

6

(Unit: Millions of Yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Trade notes and accounts payable

40,98544,383

Electronically recorded obligations - operating

6,559

8,586

Current portion of bonds payable

48

7,118

Current portion of convertible-bond-type bonds withshare acquisition rights–

10,009

Short-term borrowings

29,252

22,036

Lease obligations

3,673

4,253

Income taxes payable

3,745

5,377

Provision for bonuses

5,433

6,247

401

420

–

68

Other

21,53725,211

Total current liabilities

111,638

133,715

Bonds payable

17,07230,024

Convertible-bond-type bonds with share acquisitionrights10,01922,108Long-term borrowings

55,83974,887

Lease obligations

13,912

14,881

Provision for retirement benefits for directors (andother officers)

201

260

Provision for special repairs

90

98

Provision for share awards

271

149

Retirement benefit liability

7,060

7,103

Asset retirement obligations

1,145

869

Other

4,876

5,407

110,489

155,791

222,127

289,506

Share capital

26,52826,564

Capital surplus

29,77029,806

Retained earnings

70,901

81,203

Treasury shares(652)(4,638)

126,548

132,936

779

1,759

Deferred gains or losses on hedges

1432

Foreign currency translation adjustment

256

57

Remeasurements of defined benefit plans(2,439)(10)

Total accumulated other comprehensive income(1,390)

1,839

Provision for bonuses for directors (and otherofficers)
Provision for loss on disasterNon-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Share acquisition rights

432

410

Non-controlling interests

8,590

10,568134,181

145,754356,308435,260

Total net assets
Total liabilities and net assets

7

(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(Unit: Millions of Yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(April 1, 2019 – March 31, 2020)(April 1, 2020 – March 31, 2021)

Operating revenue

570,030

572,405

Operating costs

503,687

500,653

Operating gross profit

66,342

71,751

Selling, general and administrative expenses

45,68650,231

Operating profit

20,656

21,520Interest income

110

71

Dividend income

143

148

Share of profit of entities accounted for using equity
method408

400

Non-operating income

Revenue from subsidies

–

506

302

333

Other

1,250

1,472

Total non-operating income

2,216

2,934

1,099

1,171

Foreign exchange losses

236

–

Other

792

1,052

2,128

2,223

20,744

22,230Gain on bargain purchase

–

4,483

Gain on sale of non-current assets

58

488

Gain on reversal of asset retirement obligations

–

348

578

312

–

38

Gain on reversal of tax purpose reduction entry of
non-current assets

237–

Rental income from land and buildings

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit
Extraordinary income

Subsidy income
Gain on sale of investment securities

Insurance claim income

144–

Gain on extinguishment of tie-in shares

51–

Gain on termination of retirement benefit plan

46

–

1,117

5,671

210

3,053

Amortization of business commencement expenses–

560

Loss on COVID-19 impact–

494

Loss on tax purpose reduction entry of non-current
assets564

337

Loss on retirement of non-current assets

159

310

Loss on valuation of investment securities

113

277

Total extraordinary income
Extraordinary losses
Impairment losses

Provision for loss on disaster–

68

Loss on office withdrawal–

60

Loss on sale of non-current assets–

56

Provision of allowance for doubtful accounts

–

36

208

29

–

15

Loss on liquidation of subsidiaries

355–

Loss on return of subsidies

237–

Loss on valuation of shares of subsidiaries andassociates

189–

Settlement package

117–

Litigation settlement

55

–

2,213

5,299

Provision of allowance for doubtful accounts for
subsidiaries and associates
Loss on disaster

Total extraordinary losses

8Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(April 1, 2019 – March 31, 2020)(April 1, 2020 – March 31, 2021)

Profit before income taxes

19,64822,602

Income taxes - current

7,009

8,195

Income taxes - deferred

102

(313)

Total income taxes

7,111

7,881

Profit12,536

14,721455

480

12,081

14,240

Profit attributable to non-controlling interests
Profit attributable to owners of parent

9

(Consolidated statements of comprehensive income)(Unit: Millions of Yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(April 1, 2019 – March 31, 2020)(April 1, 2020 – March 31, 2021)

Profit12,536

14,721

(560)

1,025

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

21

17

Foreign currency translation adjustment

199

(354)

Remeasurements of defined benefit plans, net of tax(1,519)2,429

Total other comprehensive income(1,859)3,117

10,677

17,838

10,07817,476598

362

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests10(3) Consolidated statements of changes in equity
Fiscal year ended March 31, 2020 (April 1, 2019 – March 31, 2020)(Unit: Millions of Yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

26,52829,841Retainedearnings
62,983

Treasury shares

Total
shareholders’equity(697)

118,656

Changes during period
Issuance of new shares–

Dividends of surplus(3,967)(3,967)

Profit attributable to owners ofparent12,081

12,081

Purchase of treasury shares
Disposal of treasury shares

4

Change in scope of consolidation

42

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity

(0)

46

50

(195)

(152)

(119)

(119)
–

Total changes during period
Balance at end of period

(0)

–

(71)

7,918

45

7,892

26,52829,77070,901(652)

126,548

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

1,350(3)

NonShareTotal
Foreign Remeasurecontrolling
acquisition
accumulated
currency
ments ofinterests
rightsothertranslation
definedcomprehenadjustment benefit plans
sive income
122

(920)

548

424

7,265

Total net
assets

126,895

Changes during period
Issuance of new shares––

Dividends of surplus–(3,967)

Profit attributable to owners ofparent–12,081

Purchase of treasury shares–(0)

Disposal of treasury shares–

50

Change in scope of consolidation

–

(152)

–

(119)

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity

(571)

17

134

(1,519)(1,938)

7

1,324

(606)

Total changes during period

(571)

17

134

(1,519)(1,938)

7

1,324

7,285

Balance at end of period

779

14

256

(2,439)(1,390)

432

8,590

134,18111

Fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)(Unit: Millions of Yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

26,52829,77036

35Retainedearnings
70,901

Treasury shares

Total
shareholders’equity(652)

126,548

Changes during period
Issuance of new shares

71

Dividends of surplus(3,971)(3,971)

Profit attributable to owners ofparent14,24014,240Purchase of treasury shares
Disposal of treasury shares(4,312)

326

325

(0)

Change in scope of consolidation

32

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity

32

0

0
–

Total changes during period
Balance at end of period(4,312)36

36

10,301(3,986)

6,387

26,56429,806

81,203(4,638)132,936

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges779

14

NonShareTotal
Foreign Remeasurecontrolling
acquisition
accumulated
currency
ments ofinterests
rightsothertranslation
definedcomprehenadjustment benefit plans
sive income
256(2,439)(1,390)

432

8,590

Total net
assets134,181

Changes during period
Issuance of new shares–

71

Dividends of surplus–(3,971)

Profit attributable to owners ofparent–14,240Purchase of treasury shares–(4,312)

Disposal of treasury shares–

325

Change in scope of consolidation

–

32

–

0

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

980

18

(198)

2,429

3,229

(21)

1,977

5,185

980

18

(198)

2,429

3,229

(21)

1,977

11,573

1,759

32

57

(10)

1,839

410

10,568145,75412

(4) Consolidated statements of cash flows(Unit: Millions of Yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(April 1, 2019 – March 31, 2020)(April 1, 2020 – March 31, 2021)

Profit before income taxes

19,64822,602

Depreciation

15,565

17,419Cash flows from operating activities

Amortization of goodwill

705

798

Increase (decrease) in allowance for doubtful accounts

171

(78)

Decrease (increase) in retirement benefit asset(139)(3,376)

Increase (decrease) in retirement benefit liability

(670)

2,472

Increase (decrease) in provision for bonuses

176

570

Increase (decrease) in provision for share awards

271

(121)

Increase (decrease) in provision for loss on disaster

(103)

68

Interest and dividend income

(253)

(220)

Foreign exchange losses (gains)

67

(109)

1,099

1,171

(52)

(431)

Gain on bargain purchase–(4,483)Gain on reversal of asset retirement obligations

–

(348)

Subsidy income

(578)

(312)

Loss on retirement of non-current assets

159

310

Impairment losses

210

3,053

Interest expenses
Loss (gain) on sale of non-current assets

Amortization of business commencement expenses

–

560

564

337

Provision of allowance for doubtful accounts–

36

Provision of allowance for doubtful accounts for subsidiaries andassociates–

29

Loss (gain) on liquidation of subsidiaries

355–

Loss on return of subsidies

237–

Gain on reversal of tax purpose reduction entry of non-current assets

(237)

–

Loss on tax purpose reduction entry of non-current assets

Loss on valuation of shares of subsidiaries and associates

189–

Insurance claim income

(144)

–

Settlement package

117–

Litigation settlement

55–

Loss (gain) on extinguishment of tie-in shares

(51)

–

Gain on termination of retirement benefit plan

(46)

–

(2,866)(1,539)

131

(682)

Increase (decrease) in accrued liabilities

1,572

1,947

Increase (decrease) in accrued consumption taxes

2,317

551

545

(1,773)(5)444

39,01338,895

Subsidies received

578

312

Settlement package paid

(105)

–

Subsidies returned

(237)

–

Interest and dividends received

594

622

Interest paid

(1,097)(1,150)

Income taxes paid

(7,645)(6,822)

Net cash provided by (used in) operating activities

31,09831,858Decrease (increase) in trade receivables
Decrease (increase) in inventories

Decrease (increase) in consumption taxes refund receivable
Other
Subtotal

13

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(April 1, 2019 – March 31, 2020)(April 1, 2020 – March 31, 2021)

Cash flows from investing activities
Payments into time deposits(2,738)(2,069)Proceeds from withdrawal of time deposits

3,934

1,803

Purchase of property, plant and equipment(17,449)(33,618)

1,182

1,455

–

(11,386)(2,043)

(987)

(916)

(1,505)(18,030)(46,309)212

334

Proceeds from long-term borrowings

5,210

21,566

Repayments of long-term borrowings(6,978)(14,510)

Repayments of finance lease obligations(3,924)(4,465)

Proceeds from issuance of bonds–

42,110Purchase of treasury shares–(4,312)

Proceeds from sale of treasury shares

–

106

803

–

(3,964)(3,967)

Dividends paid to non-controlling interests

(170)

(169)

Payments from changes in ownership interests in subsidiaries that
do not result in change in scope of consolidation

(152)

–

Other

(191)

65

(9,155)36,75745(157)

Net increase (decrease) in cash and cash equivalents

3,958

22,149Cash and cash equivalents at beginning of period

22,801

27,142

Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation

315

1,078

Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries

66–

27,14250,371

Proceeds from sale of property, plant and equipment
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Payments of guarantee deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Proceeds from share issuance to non-controlling shareholders
Dividends paid

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Cash and cash equivalents at end of period14