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, 2022
[Japan GAAP]
Name of Listed Company:
Code Number:
Representative:
Inquiries:

SENKO Group Holdings Co., Ltd.
Stock Listed on: 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

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

June 28, 2022
June 28, 2022

May 13, 2022

Tel. (03) 6862-8842

Scheduled Date of Dividend Paid: June 29, 2022

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

1. Consolidated Operating Results for the Fiscal Year Ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(1) Consolidated Operating Results
Operating revenue
Million yen
623,139
572,405

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021
(Note) Comprehensive income

%
8.9
0.4

Fiscal year ended March 31, 2022: ¥17,596 million (–1.4%)
Profitper share
Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021
(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%
24,771
15.1
26,103
17.4
15,233
6.9
21,516
4.2
22,227
7.1
14,249
17.9
Fiscal year ended March 31, 2021: ¥17,841 million (67.1%)

Diluted profit
per shareYen
104.0993.87

Fiscal year ended March 31, 2022: ¥402 million

Return on equity

Yen
91.99
78.44

%
10.8
11.0

Ratio of ordinary
profit to total
assets
%5.7
5.6

Ratio of operating
profit to operating
revenue%
4.0
3.8

Fiscal year ended March 31, 2021: ¥400 million(Note) During the second quarter ended September 30, 2021, the Company finalized the provisional accounting treatment for businesscombinations. As a result, figures for the fiscal year ended March 31, 2021 reflect the finalization of the provisional accounting treatment.
(2) Consolidated Financial Position
Total assets
Million yen
480,487
436,066

As of March 31, 2022
As of March 31, 2021
(Reference) Equity:
As of March 31, 2022: ¥146,817 million

Net assets
Million yen
160,657
146,120

Equity ratio

%
30.6
30.9

Net assets per shareYen
985.67909.55

As of March 31, 2021: ¥134,783 million(Note) During the second quarter ended September 30, 2021, the Company finalized the provisional accounting treatment for businesscombinations. As a result, figures for the fiscal year ended March 31, 2021 reflect the finalization of the provisional accounting treatment.
(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Million yen
31,88531,858

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021

Cash flows fromfinancing activities

Million yen(46,141)(46,309)

Million yen
5,773
36,757

Cash and cash
equivalents at end of
periodMillion yen
42,19350,371

2. Dividends
June
30
Yen

Annual dividend
September December
30
31
Yen
Yen
−
13.00
−
17.00

March
31
Yen
15.00
17.00

Total

Aggregate
Dividend on
Payout ratio
amountequity ratio(Consolidated)(Consolidated)(Annual)Million yen
%
%
4,219
29.8
3.2
5,020
32.7
3.6

Yen
−
Fiscal year ended March 31, 2021
28.00−
Fiscal year ended March 31, 2022
34.00
Fiscal year ending March 31, 2023
−
−
17.00
17.00
34.00
31.7
(Forecast)(Note) During the second quarter ended September 30, 2021, the Company finalized the provisional accounting treatment for businesscombinations. As a result, figures for the fiscal year ended March 31, 2021 reflect the finalization of the provisional accounting treatment.

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2023 (From April 1, 2022 to March 31, 2023)

First half ending September 30, 2022
Fiscal year ending March 31, 2023

Operating revenue

Operating profit

Million yen
337,000
700,000

Million yen
12,50026,700

%
12.0
12.3

%
6.8
7.8

(Percentage figures represent year-on-year changes)
Profit attributable toProfitOrdinary profit
owners of parent
per share
Million yen% Million yen%
Yen
12,600
5.3
7,500
7.8
50.35
27,0003.4
16,0005.0
107.41Notes(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: Yes(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, 2022:

157,070,496 shares

As of March 31, 2021:

152,952,221 shares

8,117,957 shares

As of March 31, 2021:

4,764,111 shares(b) Treasury shares
As of March 31, 2022:(c) Average number of sharesFiscal year ended March 31, 2022:

146,347,358 sharesFiscal year ended March 31, 2021:

151,799,390 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, 2022: 338,276 shares;
as of March 31, 2021: 341,740 shares) and Performance-linked Stock Compensation Plan for Directors (as of March 31, 2022: 338,607
shares; as of March 31, 2021: 348,873 shares).
[Reference] Overview of Non-Consolidated Operating Results
Non-Consolidated Operating Results for the Fiscal Year Ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(1) Non-Consolidated Operating Results

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021

Operating revenue
Million yen%
13,227
12.3
11,781
13.9
Profitper share

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021

(Percentage figures represent year-on-year changes)
Operating profit
Ordinary profit
ProfitMillion yen%
Million yen%
Million yen
%
6,072
7.3
6,837
21.9
5,948
251.2
5,661
26.0
5,607
20.0
1,693
(57.6)

Yen
40.65
11.16

Diluted profit
per share

Yen
35.82
9.29

(2) Non-Consolidated Financial Position
As of March 31, 2022
As of March 31, 2021
(Reference) Equity:
As of March 31, 2022: ¥72,236 million

Total assets
Million yen
277,316
260,559

Net assets
Million yen
72,625
71,131Equity ratio

%
26.0
27.1

Net assets per shareYen
484.64477.24As of March 31, 2021: ¥70,721 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 of reasons.
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......................................................................................................................................................131

1.

Overview of Operating Results and Others(1) Overview of Operating Results and Others(a) Overview of results of operations in the fiscal year ending March 31, 2022
In the fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022), the economic environment has transitioned under a difficult
business environment due to the continued effects of the novel coronavirus disease (COVID-19), and with the added factor of soaring fuelprices.
In this environment, the Senko Group has strived for growth in business performance as the last year of the five-year medium-termbusiness plan, “Senko Innovation Plan 2021 (SIP21)”.
The following provides an outline of our main activities in the fiscal year ended March 31, 2022.
In the Domestic Logistics, we opened “Gifu Hashima PD Center” (Hashima City, Gifu Prefecture) in May, “Inzai No.2 Logistics Center”(Inzai City, Chiba Prefecture) in November, and “Sennan PD Center” (Sennan City, Osaka Prefecture) in March.
In the International Logistics, we welcomed AIRROAD PTY LIMITED in April, which operates freight car transportation business inAustralia, and AIR PLANNERS (S) PTE. LTD. in January, which operates international air and sea shipping based in Singapore, to thegroup.
In the Marine Shipping, Nippon Marine Co., Ltd. and Senko Line Co., Ltd. constructed and commissioned a concentrated sulfuric acid ship
“Shoryu” in August.
In the Trading & Commerce, we welcomed Cartas Co., Ltd. a household paper wholesale distributor to the group in January, and in thesame month, participated in the investment in the TOMI Group, a Chinese trading company who handles materials and parts for LCD
panels and organic EL products with an aim to expanding commercial rights in electronic material transactions.
In Others, we welcomed SELF GROW Inc., which dispatches foreign residents as workers and has a training business for technical interntrainees based in Aichi Prefecture in October, and DIA Cleaning Co., Ltd., which operates dry cleaning for clothing and laundromat
business centered in the Chugoku and Shikoku areas in November, to the group.
In regard to initiatives to reduce environment impact, from Japan Association for Logistics and Transport, SENKO Co., Ltd. and Runtec
Corporation received 1 special award and 2 category awards for the “22nd Logistics Environment Award,” respectively, in June; andSENKO Co., Ltd. received one award each in the “Improvements” category and the “Effective Utilization” category, and Runtec
Corporation received one award in the “Effective Utilization” category for the “2021 Award for Excellent Business Entities Working on
Modal Shift” in November. Furthermore, in November, Runtec Corporation received “2021 Director of Kyushu District Transport Bureau
Award for Automobile/Tourism/Transportation Policy-related Distinguished Service” from the Kyushu District Transport Bureau, Ministry ofLand, Infrastructure and Transport.
The Group will continue to support and contribute to developing a sustainable society that supports people in their daily lives.
The full-year performance for this fiscal year was as follows.
(Unit: Millions of Yen)
Fiscal year ended
March 31, 2021
572,405

Fiscal year ended
March 31, 2022
623,139

50,733

8.9%

Operating profit

21,516

24,771

3,254

15.1%

Ordinary profit
Profit attributable to owners ofparent22,227

26,103

3,876

17.4%

14,24915,233984

6.9%

Operating revenue

Change%Despite the fact that we were affected primarily by the application of the Accounting Standard for Revenue Recognition and relevant
revised ASBJ regulations in terms of operating revenue, and also affected primarily by soaring fuel prices in terms of profit, we madegroup-wide efforts to expand sales, improve cost efficiency and enhance productivity, as well as promote M&A, and as a result,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.
Logistics(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2021
387,350

Fiscal year ended
March 31, 2022
432,538

Segment income

19,39823,013

2

Change%45,188

11.7%

3,615

18.6%

Despite the effect of soaring fuel prices, we strived to expand sales, improve cost efficiency and enhance productivity amid recovery incargo volumes, which declined drastically due to the impact of the spread of COVID-19 in the previous fiscal year, while reaping thecontribution of revenue from M&A. As a result, operating revenue increased ¥45,188 million year on year to ¥432,538 million, and segment
income rose ¥3,615 million year on year to ¥23,013 million.
Trading & commerce(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2021
161,820

Fiscal year ended
March 31, 2022
153,049

Segment income

3,035

2,905

Change%(8,770)(5.4%)(130)(4.3%)In addition to making household paper wholesale distributor AZFIT CO., Ltd. a consolidated subsidiary in April, we worked on expanding
sales, improving cost efficiency among other initiatives. However, in part as a result of applying the Accounting Standard for Revenue
Recognition and relevant revised ASBJ regulations, and in part due to rising purchase prices in fuel sales, among other factors, operating
revenue decreased by ¥8,770 million year on year to ¥153,049 million and segment income fell ¥130 million year on year to ¥2,905 million.
Others(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2021
23,235

Fiscal year ended
March 31, 2022
37,550(61)

99

Segment income (loss)

Change%14,315

61.6%

161

–

In addition to making membership-based general wholesale and retail business operator TERAUCHI CO., LTD. a consolidated subsidiaryin January 2021, and working on expanding sales and improving cost efficiency, operating revenue increased by ¥14,315 million year on
year to ¥37,550 million and segment income rose ¥161 million year on year to ¥99 million.
(b) Forecasts
There are concerns about the situation in Ukraine, rising cost of resources and monetary policy trends in the United States, but the future
economic environment is expected to recover gradually.
In this kind of environment, the Group has formulated a new five-year medium-term business plan, starting in fiscal year 2022.
In line with our basic policy of "We deliver new value to people and society and aim for sustainable growth through the deepening andcreation of businesses," we will work on the following five priority issues:
1.

Expansion and deepening of existing businesses

2.

Creation and development of growing businesses

3.

Initiatives for ESG+H (health) management

4.

Upgrading group management

5.

Achievement of job satisfaction and personal growth

For the first year of the medium-term business plan, the Group forecasts consolidated operating revenue of ¥700,000 million, consolidated
operating profit of ¥26,700 million, consolidated ordinary profit of ¥27,000 million, and profit attributable to owners of parent of ¥16,000
million.
(2) Financial condition(a) Assets, liabilities and net assets
Total assets
Total assets as of March 31, 2022 were ¥480,487 million, ¥44,421 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥171,033 million, up ¥7,142 million from the end of the previous fiscal year. This was mainly due to increasesof ¥9,204 million in trade notes and account receivable, and contract assets, ¥1,023 million in electronically recorded monetary claims operating, ¥1,193 million in merchandise and finished goods and ¥3,190 million in other current assets, despite a decrease of ¥7,437
million in cash and deposits.
Non-current assets totaled ¥309,454 million, up ¥37,278 million from the end of the previous fiscal year. This was primarily due toincreases of ¥22,084 million in property, plant and equipment, ¥5,709 million in intangible assets, and ¥9,484 million in investments andother assets.
Liabilities
Liabilities as of March 31, 2022 increased ¥29,884 million from the end of the previous fiscal year to ¥319,830 million.
Current liabilities totaled ¥137,646 million, up ¥3,931 million from the end of the previous fiscal year. This was mainly due to increases of¥6,291 million in trade notes and accounts payable and ¥14,298 million in short-term borrowings, despite decreases of ¥7,094 million incurrent portion of bonds payable and ¥10,009 million in current portion of convertible bond-type bonds with share acquisition rights.
Non-current liabilities totaled ¥182,183 million, up ¥25,952 million from the end of the previous fiscal year. This was mainly attributable to3increases of ¥9,976 million in bonds payable, ¥11,858 million in long-term borrowings, ¥1,088 million in long-term lease obligations, ¥1,317
million in deferred tax liabilities, and ¥1,113 million in other non-current liabilities.
Net assets
Net assets as of March 31, 2022 were ¥160,657 million, ¥14,537 million higher than at the end of the previous fiscal year. This was mainly
due to increases of ¥1,915 million in share capital and ¥1,739 million in capital surplus by conversion of convertible-bond-type bonds withshare acquisition rights to shares, etc., as well as increases of ¥10,525 million in retained earnings and ¥2,524 million in non-controllinginterests, despite a decrease of ¥3,521 million due to the purchase of treasury shares.
The equity ratio as of March 31, 2022 decreased by 0.3 percentage points to 30.6% from the end of the previous fiscal year.
(b) Cash flow
Cash and cash equivalents as of March 31, 2022 decreased by ¥8,177 million from the end of the previous fiscal year to ¥42,193 million.
Net cash provided by operating activities amounted to ¥31,885 million. This was mainly due to profit before income taxes of ¥24,778
million, depreciation of ¥19,817 million, increased funds due to increase in accrued liabilities of ¥3,654 million, despite a decrease in funds
due to increase in trade receivables of ¥5,123 million, and income taxes paid of ¥9,321 million.
Net cash used in investing activities totaled ¥46,141 million. This was mainly due to purchase of property, plant and equipment of ¥30,311
million, investments in capital of subsidiaries and associates of ¥5,668 million, and purchase of shares of subsidiaries resulting in change
in scope of consolidation of ¥8,837 million.
Net cash provided by financing activities totaled ¥5,773 million. This was mainly due to net increase of short-term borrowings of ¥4,671
million, proceeds from long-term borrowings of ¥22,563 million, and proceeds from issuance of bonds of ¥10,000 million, despite
repayments of long-term borrowings of ¥4,035 million, repayments of finance/lease liabilities of ¥5,359 million, proceeds from bonds
payable of ¥13,288 million, purchase of treasury shares of ¥3,630 million, and dividends paid of ¥4,704 million.

(c) Performance indicators associated with cash flows
Fiscal year ended March 31

2018

2019

2020

2021

2022

Equity ratio (%)

33.7

35.0

35.1

30.9

30.6

Market capitalization equity ratio (%)

37.7

41.0

35.7

35.6

27.8

Interest-bearing debt to Cash flow

4.9

4.2

3.6

5.2

5.8

Interest coverage ratio

25.4

26.2

28.3

27.7

25.5

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 the end of•

Operating cash flows are the figure shown in the consolidated statement of cash flows. Interest-bearing debt is the sum of all

the fiscal year (after deducting treasury shares).
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 business results withthe aim of enhancing the return to its shareholders.
In accordance with this policy, the year-end dividend for the fiscal year ended March 31, 2022 had been set at ¥15.00 per share, but
considering the steady progress in earnings during the fiscal year, we intend to make this ¥17.00 per share, and combined with the alreadydeclared interim dividend of ¥17.00, the total annual dividend is expected to be ¥34.00.
Regarding the dividend forecast for the fiscal year ending March 31, 2023, based on the forecast of operating results, the Company plansto pay an annual dividend of ¥34.00 per share (interim dividend of ¥17.00, year-end dividend of ¥17.00).
(4) Business risks
From the most recent Securities Report (dated June 25, 2021), which includes a section about business and other risks, there were no
significant changes so disclosure will be omitted.

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 toprepare 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, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits

52,53045,093

Trade notes and accounts receivable

82,689––91,893

Electronically recorded monetary claims - operating

2,519

3,543

Merchandise and finished goods

12,99014,183Work in process

316

95

Raw materials and supplies

651

845

12,221

15,411(28)(34)

163,891

171,033

Buildings and structures

169,354

187,259

Accumulated depreciation(89,153)(96,162)

Buildings and structures, net

80,20191,096

Machinery, equipment and vehicles

77,660101,063

Accumulated depreciation(52,603)(73,248)

Machinery, equipment and vehicles, net

25,056

27,815Tools, furniture and fixtures

10,384

13,528

Accumulated depreciation(7,995)(10,611)

Tools, furniture and fixtures, net

2,388

2,917

Land

81,62890,313

Leased assets

20,02523,823

Accumulated depreciation(6,231)(8,890)

Leased assets, net

13,793

14,932

Construction in progress

6,484

4,562

209,554

231,639

Goodwill

9,979

12,564

Other

8,034

11,159Total intangible assets

18,01423,723

17,398

17,957Long-term loans receivable

507

279

Retirement benefit asset

5,471

7,703

Guarantee deposits

13,086

14,388Deferred tax assets

4,902

5,115

Other

3,647

9,066

Allowance for doubtful accounts

(407)

(418)

Total investments and other assets

44,60654,091

Total non-current assets

272,175

309,454

Business commencement expenses

00

Total deferred assets

00

436,066

480,487

Trade notes and accounts receivable, and contract
assetsOthersAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

Deferred assets

Total assets

6

(Unit: Millions of Yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Trade notes and accounts payable

44,38350,675

Electronically recorded obligations - operating

8,586

9,076

Current portion of bonds payable

7,118

24

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

10,009–

Short-term borrowings

22,03636,335

Lease obligations

4,253

4,632

Income taxes payable

5,377

5,052

Provision for bonuses

6,247

6,585

Provision for bonuses for directors (and other officers)

420

427

Provision for loss on disaster

68

416

Other

25,211

24,420Total current liabilities

133,715

137,646

Bonds payable

30,02440,000Convertible-bond-type bonds with share acquisitionrights22,10822,081Long-term borrowings

74,88786,746

Lease obligations

14,881

15,970260

573

Provision for special repairs

98

196

Provision for share awards

149

336

Retirement benefit liability

7,103

7,050

Asset retirement obligations

869

950

Deferred tax liabilities

3,669

4,987

Other

2,178

3,291

156,230

182,183

289,946

319,830

Share capital

26,56428,479

Capital surplus

29,806

31,545Retained earnings

81,21191,737

Treasury shares(4,638)(8,159)Total shareholders’ equity

132,944

143,602

1,759

1,472

Deferred gains or losses on hedges

32

70

Foreign currency translation adjustment

57

755

Remeasurements of defined benefit plans

(10)

916

Total accumulated other comprehensive income

1,839

3,215

Share acquisition rights

410

388

Non-controlling interests

10,926

13,451

Total net assets

146,120

160,657

436,066

480,487

Non-current liabilities

Provision for retirement benefits for directors (andother officers)

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

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, 2021

Fiscal year ended
March 31, 2022

(April 1, 2020 - March 31, 2021)(April 1, 2021 - March 31, 2022)

Operating revenue

572,405

623,139

Operating costs

500,653

534,352

Operating gross profit

71,751

88,786

Selling, general and administrative expenses

50,23564,015

Operating profit

21,516

24,771

Interest income

71

100

Dividend income

148

286

Share of profit of entities accounted for using equity
method400

402

Revenue from subsidies

506

531

Rental income from land and buildings

333

356

Other

1,472

1,670

Total non-operating income

2,934

3,349

Interest expenses

1,171

1,244

Other

1,052

772

Total non-operating expenses

2,223

2,016

22,227

26,103

Subsidy income

312

248

Gain on sale of non-current assets

488

111

4,483

–

Gain on reversal of asset retirement obligations

348–

Gain on sale of investment securities

38

–

5,671

359

Provision for loss on disaster

68

416

Compensation expenses–

298

Loss on tax purpose reduction entry of non-current
assets337

253

Loss on COVID-19 impact

494

211

–

202

Loss on retirement of non-current assets

310

182

Loss on sale of non-current assets

56

43

Impairment losses

3,053

31

Loss on disaster

15

28

Provision of allowance for doubtful accounts for
subsidiaries and associates

29

12

Provision of allowance for doubtful accounts

36

3

Amortization of business commencement
expenses

560–

Loss on valuation of investment securities

277–

Loss on office withdrawal

60–

Total extraordinary losses

5,299

1,684

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Gain on bargain purchaseTotal extraordinary income
Extraordinary losses

Loss on cancellation of leases

8

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

(April 1, 2020 - March 31, 2021)(April 1, 2021 - March 31, 2022)

Profit before income taxes

22,59824,778

Income taxes - current

8,195

8,831

Income taxes - deferred

(320)

(230)

Total income taxes

7,874

8,601

Profit

14,724

16,177475

943

14,24915,233

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, 2022

Fiscal year ended
March 31, 2021

(April 1, 2020 - March 31, 2021)

Profit(April 1, 2021 - March 31, 2022)

14,724

16,177

1,025

(337)

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

17

47

Foreign currency translation adjustment

(354)

781

Remeasurements of defined benefit plans, net of tax

2,429

927

Total other comprehensive income

3,117

1,419

17,841

17,596

17,484

16,609357

987

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, 2021 (April 1, 2020 – March 31, 2021)(Unit: Millions of Yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Retainedearnings

Capital surplus

26,52829,77036

35Treasury shares

Total shareholders’equity(652)

126,548

70,901

Changes during period
Issuance of new shares

71

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

Profit attributable to owners ofparent14,24914,249Purchase of treasury shares
Disposal of treasury shares(4,312)(4,312)

326

325

(0)

Change in scope of consolidation

32

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

32

0

0
–

Total changes during period
Balance at end of period

36

36

10,309(3,986)

6,395

26,56429,806

81,211(4,638)132,944

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

779

14

Share
Total
RemeasureForeignacquisition
accumulated
ments ofcurrency
rightsotherdefinedtranslation
comprehenadjustment benefit plans
sive income
256(2,439)(1,390)432

Noncontrollinginterests

Total net
assets

8,590

134,181

Changes during period
Issuance of new shares–

71

Dividends of surplus–(3,971)

Profit attributable to owners ofparent–14,249Purchase 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 noncontrolling 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)

2,336

5,543

980

18

(198)

2,429

3,229

(21)

2,336

11,939

1,759

32

57

(10)

1,839

410

10,926

146,120

11

Fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Unit: Millions of Yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

26,56429,806

1,915

1,915

Retainedearnings

Treasury shares

81,211

Total
shareholders’equity(4,638)132,944

Changes during period
Issuance of new shares

3,830

Dividends of surplus(4,708)(4,708)

Profit attributable to owners ofparent15,233

15,233Purchase of treasury shares
Disposal of treasury shares(3,661)(3,661)

139

100

(39)

Change in scope of consolidation–

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

(136)

(136)
–

Total changes during period

1,915

1,739

10,525(3,521)

10,658

Balance at end of period

28,47931,54591,737(8,159)143,602

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

1,759

32

Share
Total
RemeasureForeignacquisition
accumulated
ments ofcurrency
rightsotherdefinedtranslation
comprehenadjustment benefit plans
sive income
57

(10)

1,839

410

Noncontrollinginterests

Total net
assets

10,926

146,120

Changes during period
Issuance of new shares

–

3,830

Dividends of surplus–(4,708)

Profit attributable to owners ofparent–15,233Purchase of treasury shares–(3,661)

Disposal of treasury shares–

100

Change in scope of consolidation

–

–

–

(136)

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

(287)

38

697

927

1,375

(21)

2,524

3,878

Total changes during period

(287)

38

697

927

1,375

(21)

2,524

14,537

Balance at end of period

1,472

70

755

916

3,215

388

13,451

160,65712

(4) Consolidated statements of cash flows(Unit: Millions of Yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2021

(April 1, 2020 - March 31, 2021)(April 1, 2021 - March 31, 2022)

Profit before income taxes

22,59824,778Depreciation

17,441

19,817

Amortization of goodwill

779

1,071

Increase (decrease) in allowance for doubtful accounts

(78)

2

Decrease (increase) in retirement benefit asset(3,376)(2,232)

Increase (decrease) in retirement benefit liability

2,472

874

Increase (decrease) in provision for bonuses

570

218

Increase (decrease) in provision for share awards

(121)

186

Increase (decrease) in provision for loss on disaster

68

416

(220)

(386)

Cash flows from operating activities

Interest and dividend income
Foreign exchange losses (gains)

(109)

(251)

Interest expenses

1,171

1,244

Loss (gain) on sale of non-current assets

(431)

(68)

Loss on tax purpose reduction entry of non-current assets

337

253

Subsidy income

(312)

(248)

Loss on retirement of non-current assets

310

182

Impairment losses

3,053

31

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

(348)

–

Amortization of business commencement expenses

560–(1,539)(5,123)

Decrease (increase) in inventories

(682)

(592)

Increase (decrease) in accrued liabilities

1,947

3,654

551

(1,685)(1,773)

22

Other

509

(335)

Subtotal

38,89541,830Subsidies received

312

248

Interest and dividends received

622

377

Interest paid

(1,150)(1,249)

Income taxes paid

(6,822)(9,321)

Net cash provided by (used in) operating activities

31,85831,885

Payments into time deposits(2,069)(2,071)

Proceeds from withdrawal of time deposits

1,803

2,028

Purchase of property, plant and equipment(33,618)(30,311)

1,455

907

–

(5,668)(987)(1,097)Purchase of shares of subsidiaries resulting in change in scope of
consolidation(11,386)(8,837)

Other(1,505)(1,091)

Net cash provided by (used in) investing activities(46,309)(46,141)

Decrease (increase) in trade receivables

Increase (decrease) in accrued consumption taxes
Decrease (increase) in consumption taxes refund receivable

Cash flows from investing activities

Proceeds from sale of property, plant and equipment
Payments for investments in capital of subsidiaries and associates
Payments of guarantee deposits

13

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

(April 1, 2020 - March 31, 2021)(April 1, 2021 - March 31, 2022)

334

4,671

Proceeds from long-term borrowings

21,566

22,563

Repayments of long-term borrowings(14,510)(4,035)

Repayments of finance lease obligations(4,465)(5,359)Proceeds from issuance of bonds

42,11010,000(48)(13,288)(4,312)(3,630)106

6(3,967)(4,704)

(169)

(148)

–

(249)

113

(51)

36,757

5,773

(157)

304

Net increase (decrease) in cash and cash equivalents

22,149(8,177)

Cash and cash equivalents at beginning of period

27,14250,371

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

1,078

–

Cash and cash equivalents at end of period

50,371

42,193

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Redemption of bonds
Purchase of treasury shares
Proceeds from sale of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries that
do not result in change in scope of consolidation
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

14