Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2022
(Based on Japanese GAAP)May 13, 2022
Company name:
Sanyo Electric Railway
Stock exchange listing: Tokyo
Stock code:
Representative:

9052
URL https://www.sanyo-railway.co.jp/
President and Representative Director
Kazuhiro Uekado

Inquiries:

Executive Officer,Manager of Accounting
Division

Daisuke Mizutani

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 17, 2022
June 20, 2022

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 20, 2022
Yes

Holding of financial results meeting:

NoTEL

078-612-2032(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toOperating revenue
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2022
34,151
–
1,499
–
1,787
–
5,967
–
Year ended March 31, 2021
43,490(15.8)
781(81.1)
941(77.6)
422(85.3)
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
13.4
1.7
4.4
–
1.0
1.0
1.8

Diluted earnings pershareEarnings per share
Yen
268.5519.03Year ended March 31, 2022
Year ended March 31, 2021
(2) Consolidated financial position

Total assets
As of March 31, 2022
As of March 31, 2021

Net assets

Equity ratio

Millions of yen
108,755
99,605

Millions of yen
46,971
41,842

Cash flows fromoperating activities
Millions of yen
6,142
2,020

Cash flows frominvesting activities
Millions of yen(4,174)(4,454)

Net assets per share%
43.2
42.0

Yen
2,114.02
1,883.09(3) Consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
791
8,716(597)5,957

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

0.00
15.00

––

15.00
15.00

15.00
30.00

333
666

78.8
11.2

0.81.5–

15.00

–

15.00

30.00

131.0

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Percentages indicate year-on-year changes
Profit attributable toOperating revenue
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
Full year
37,872
10.9
3,055 103.7
3,052
70.8
2,147 (64.0)
96.67
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2022(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

22,330,598 shares As of March 31, 2021

22,330,598 shares

Number of treasury shares at the end of the period
As of March 31, 2022

111,303 shares As of March 31, 2021

110,413 shares

22,219,809 shares Year ended March 31, 2021

22,220,745 shares

Average number of shares during the period
Year ended March 31, 20222

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits

6,035

6,784

Notes and accounts receivable - tradeNotes and accounts receivable - trade, and contract assets

2,799
–

–
3,733

Securities
Merchandise and finished goods

–
1,017

1,999
980

Land and buildings for sale in lots
Other

5,225
1,975

4,888
1,379

Allowance for doubtful accounts

(2)

(10)

17,05019,757

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

35,77038,845

Machinery, equipment and vehicles, net
Land11,41022,425

11,382
27,203

Construction in progress
Other, net

1,711
846

565
738

Total property, plant and equipment

72,16578,736450613

Investment securities
Long-term loans receivable

5,870
56

5,834
51

Retirement benefit asset
Deferred tax assets

2,589
179

2,615
117

Other
Allowance for doubtful accounts

1,258(15)

1,043
(14)

Intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

3

9,938

9,648

82,554

88,997

99,605

108,755

(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

7,109
5,947

7,2195,464

Income taxes payable
Provision for bonuses

64497

925
627

Provision for bonuses for directors (and other officers)
Provision for such as gift certificate

4232

16–

Other

7,604

8,359

Total current liabilities

21,45922,613

Bonds payable
Long-term borrowings

6,000
24,4966,000
26,471

Deferred tax liabilities
Retirement benefit liability

141
1,515

1,570
1,632

Long-term deferred contribution for construction
Leasehold and guarantee deposits received

413
3,410

38
3,168

326

287

36,30339,17057,762

61,783

Share capital
Capital surplus

10,090
7,037

10,090
7,037

Retained earnings
Treasury shares

22,570(175)

27,814(177)

Total shareholders' equity

39,522

44,765

1,581

1,582

738

624

2,319

2,206

Non-current liabilities

Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

441,842

46,971

99,605

108,755Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)

Operating revenue
Operating expenses

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
43,49034,151

Operating expenses and cost of sales of transportation
Selling, general and administrative expenses

37,805
4,903

27,687
4,963

Total operating expenses

42,70832,651781

1,499Interest income
Dividend income

1158

1163

Share of profit of entities accounted for using equity method
Subsidies for employment adjustment

1153

0172Miscellaneous income

336

297

Total non-operating income

650

635

251
142

244
–

Miscellaneous expenses

97

103

Total non-operating expenses

491

347

941

1,787

0563

6,741
553

Subsidy income
Compensation income for absence from work––

158
60

Subsidies for employment adjustment
Gain on sale of investment securities

29
23

153

Gain on compensation income for expropriation30

1Total extraordinary income

648

7,535

Tax purpose reduction entry of contribution for construction
Loss on reduction of non current assets with subsidy income

563
–553
158

Loss due to temporary closed
Loss on retirement of non-current assets

94
1766
39Reduction entry of land compensation income for
expropriation

11

Loss on sale of non-current assets
Impairment losses–
470–

Operating profit
Non-operating income

Non-operating expenses
Interest expenses
Cost for take-over bid

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Contribution for construction

Extraordinary losses

Loss on valuation of investment securities

33–

Total extraordinary losses

758

819

Profit before income taxes

830

8,503

Income taxes - current
Income taxes - deferred

115
254

931
1,604

Total income taxes

369

2,536

Profit461

5,967

Profit attributable to non-controlling interests

38–

Profit attributable to owners of parent

422

5,967

5Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Profit461

5,967

Other comprehensive income
Valuation difference on available-for-sale securities

883

0

Remeasurements of defined benefit plans, net of tax

299(113)1,182(112)Comprehensive income

1,644

5,854

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,611

5,854

32–

Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

10,090Retained earnings

6,854

22,480Total shareholders'equityTreasury shares(173)

39,251

Changes during period
Dividends of surplus

(333)

(333)

Profit attributable to ownersof parent

422

422

Purchase of treasury shares(2)Change in ownership interestof parent due to transactions
with non-controlling interests

183

(2)
183

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–

183

89(2)

270

10,0907,037

22,570(175)

39,522

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference
on available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income

692

466

1,158

Non-controllinginterests

Total net assets

1,113

41,524

Changes during period
Dividends of surplus(333)

Profit attributable to ownersof parent422

Purchase of treasury shares(2)

Change in ownership interestof parent due to transactions
with non-controlling interests

183

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

888

272

1,161

(1,113)

888

272

1,161

(1,113)

318

1,581

738

2,319

–

41,842747

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

10,090Retained earnings

7,037

22,570

Cumulative effects ofchanges in accounting
policies
Restated balance

Total shareholders'equity

Treasury shares
(175)

(56)
10,0907,037

22,51339,522(56)(175)

39,466

Changes during period
Dividends of surplus

(666)

(666)

Profit attributable to ownersof parent

5,967

5,967

Purchase of treasury shares

(1)

(1)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

––

5,300

(1)

5,298

10,0907,037

27,814(177)

44,765

Accumulated other comprehensive income

Balance at beginning of period

Valuation differenceon available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income

1,581

738

2,319

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net assets

41,842(56)

1,581

738

2,319

41,786

Changes during period
Dividends of surplus(666)

Profit attributable to ownersof parent

5,967

Purchase of treasury shares(1)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period0(113)

0(113)

(112)

5,185

1,582

624

2,206

46,9718(112)(112)

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation

830
3,916

8,503
4,041

Impairment losses
Decrease (increase) in retirement benefit asset

47
(31)

–
(55)

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses

78(95)(21)
129

Increase (decrease) in provision for bonuses for directors (andother officers)

(42)

112

–

Increase(decrease) in provision for such as gift certificate
Share of loss (profit) of entities accounted for using equity
methodInterest and dividend income

(1)

(0)

(160)

(164)

Interest expenses
Loss (gain) on valuation of investment securities

251
33

244
–

Subsidies for employment adjustment
Subsidy income

(182)
–

(188)
(158)

Loss on retirement of property, plant and equipment
Loss (gain) on sale of property, plant and equipment

299
–

114
(6,741)

Decrease (increase) in trade receivables
Decrease (increase) in inventories

(261)
(627)

(349)
226

Increase (decrease) in trade payables
Decrease (increase) in other current assets

(286)
(461)

(649)
254

Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities

39(319)572(250)

Transfer construction in progress to operating expenses
Other, net

386
13(10)
226

Subtotal

3,430

5,734

Interest and dividends received
Interest paid

160
(252)

164
(243)

Subsidies received
Income taxes refund (paid)

182(1,500)249
237

Net cash provided by (used in) operating activities

2,020

6,142

Cash flows from investing activitiesPayments into time deposits

(0)

(0)

50(5,471)

10(11,711)

Proceeds from sale of property, plant and equipment
Proceeds from sale of securities

0701

6,979
–

Purchase of investment securities
Decrease(Increase) in long-term prepaid expenses

(4)
(2)

(57)
(22)

Purchase of investments and other assets
Proceeds from decrease in investments and other assets(183)
12(108)8Proceeds from long-term deferred contribution received forconstruction

522

489

Subsidies received
Other, net–
(79)

158
80

(4,454)(4,174)

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

Net cash provided by (used in) investing activities

9(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

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

575
5,250

(500)
7,040

Repayments of long-term borrowings
Dividends paid

(5,058)(333)(5,047)(666)

Purchase of shares of subsidiaries not resulting in change inscope of consolidation(990)–Other, net

(39)

(35)

(597)

791Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities(3,031)

2,759

Cash and cash equivalents at beginning of period

8,988

5,957

Cash and cash equivalents at end of period

5,957

8,716

10