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, 2020
(Based on Japanese GAAP)May 18, 2020
Company name:

NAGAWA Co.,Ltd.

Stock exchange listing: Tokyo
Stock code:
9663
Representative:
Inquiries:

URL

https://group.nagawa.co.jp/President
Chief Financial Officer

Osamu Takahashi
Ryoh Shimmura

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

June 16, 2020
June 16, 2020

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

June 17, 2020
Yes

Holding of financial results meeting:

Yes

TEL

03-5288-8666(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profitOrdinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2020
29,0182.4
3,536(6.8)
3,717(6.6)
2,105(20.0)
Year ended March 31, 2019
28,344
3.3
3,794(11.4)
3,979(10.8)
2,632(9.9)

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
4.8
7.7
12.2
–
6.4
8.8
13.4

Diluted earnings pershareYen
135.78176.51

Year ended March 31, 2020
Year ended March 31, 2019(2) Consolidated financial position

Total assets
As of March 31, 2020
As of March 31, 2019

Net assets

Equity ratio

Millions of yen
49,917
46,951Millions of yen
44,67842,896

Cash flows fromoperating activities
Millions of yen
2,504
2,909

Cash flows frominvesting activities
Millions of yen(3,493)(1,761)

Net assets per share%
89.5
91.3

Yen
2,867.61
2,785.94(3) Consolidated cash flows

Year ended March 31, 2020
Year ended March 31, 2019

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yenMillions of yen(163)
14,575930
15,7192. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(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
0.00

––

60.00
60.00

60.00
60.00

923
934

34.0
44.2

2.1
2.1

–––––

1–3. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2020(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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 2020

16,357,214 shares As of March 31, 201916,357,214 shares

Number of treasury shares at the end of the period
As of March 31, 2020

776,869 shares As of March 31, 2019

966,898 shares

15,510,439 shares Year ended March 31, 2019

14,915,630 shares

Average number of shares during the period
Year ended March 31, 20202

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

15,7198,559

14,575
8,292

Securities
Merchandise and finished goods

20
1,455

0
1,767

Work in process
Raw materials and supplies

105
187

132
204

Other
Allowance for doubtful accounts

156
–

187
(0)

26,20325,15930,204(22,613)

31,328(23,461)

7,590

7,866

5,476
(3,772)

5,361(3,715)

Total current assets
Non-current assets
Property, plant and equipment
Assets for rent
Accumulated depreciation
Assets for rent, net
Buildings and structures
Accumulated depreciation

1,703

1,646

LandConstruction in progress

Buildings and structures, net

6,425
8

6,442
7

Other
Accumulated depreciation

1,114(963)

1,128(977)

Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

151

151

15,880

16,115

116

126

3,852

6,994

Leasehold and guarantee deposits
Deferred tax assets

534
335

553
674

Other
Allowance for doubtful accounts

30
(1)

295
(1)

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

3

4,750

8,516

20,74824,757

46,951

49,917

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Accounts payable - trade

2,044

2,069

Accounts payable - other
Income taxes payable

132
537

1,101
690

Provision for bonuses
Provision for bonuses for directors (and other officers)

251
65

234
64

Provision for loss on liquidation of subsidiaries andassociates–560864

0842

3,895

5,059

2830

4083

6280

Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term accounts payable - otherRetirement benefit liability
Asset retirement obligations
Other76

159

179

4,055

5,239

Share capital
Capital surplus

2,855
5,872

2,855
7,419

Retained earnings
Treasury shares

35,525(1,228)36,708(1,731)

Total shareholders' equity

43,02545,251

(144)

(572)

(4)

(1)

(149)

(573)

19

–

42,89644,67846,951

49,917

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive incomeConsolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Net sales

28,34429,018

Cost of sales

17,327

17,983Gross profit

11,016

11,035

Transportation costs
house maintenance cost

319
569

415
586

Advertising expenses
Salaries and allowances

229
2,185

334
2,158

Remuneration for directors (and other officers)
Provision for bonuses

139202

143
192

Provision for bonuses for directors (and other officers)
Retirement benefit expenses

60
165

60
141

Welfare expenses
Depreciation

412
197

403
219

Repair expenses
Rent expenses on land and buildings

177
1,068

144
1,107

Other

1,494

1,589

Total selling, general and administrative expenses

7,221

7,498

Selling, general and administrative expenses

Operating profit

3,794

3,536

Non-operating income
Interest income

812

Dividend income
Rental income

31
19

84
19

Purchase discounts
Miscellaneous income

140
30

76
10

Total non-operating income

229

202

7727
1

7–Non-operating expenses
Commission expenses
Foreign exchange losses
Loss on disposal of inventories
Miscellaneous loss

95

Total non-operating expenses

45213,979

3,717

Gain on sales of non-current assets

10

Total extraordinary income

10

Loss on disposal of non-current assets
Impairment loss

252033–

Loss on valuation of investment securities
Provision for loss on liquidation of subsidiaries and associates

5–

41276

Loss on liquidation of subsidiaries

43–

Total extraordinary losses

94522

Ordinary profit
Extraordinary income

Extraordinary losses

5(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

Profit before income taxes

3,886

3,195

Income taxes - current

1,259

1,261

Income taxes - deferred10(150)Total income taxes

1,270

1,111

Profit

2,616

2,084

(16)

(21)

2,632

2,105

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

6

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
2,616

2,084(194)25(427)5(168)

(422)

2,447

1,661

2,466

1,681(18)(20)

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,855

Retained earnings

5,892

33,596

Total shareholders'equityTreasury shares(2,901)

39,443

Changes during period
Dividends of surplus

(703)

(703)

Profit attributable to owners ofparent

2,632

2,632

Purchase of treasury shares
Disposal of treasury shares

(19)

(1)

(1)

1,674

1,654

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

–

(19)

1,929

1,673

3,582

2,855

5,872

35,525(1,228)43,025

Accumulated other comprehensive income
Valuation difference on
Foreign currency
available-for-saletranslation adjustmentsecurities
Balance at beginning of period

49(32)

Total accumulated
other comprehensive
income17

Non-controllinginterests

Total net assets

2739,487

Changes during period
Dividends of surplus(703)

Profit attributable to owners ofparent2,632

Purchase of treasury shares(1)

Disposal of treasury shares

1,654

Net changes in items otherthan shareholders' equity(194)

27(166)

Total changes during period(194)

27(166)

(7)

3,408

Balance at end of period

(144)

(4)

(149)

1942,896

8(7)

(173)

Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,855

Retained earnings

5,872

35,525

Total shareholders'equityTreasury shares(1,228)43,025

Changes during period
Dividends of surplus

(923)

(923)

Profit attributable to owners ofparent

2,105

2,105

Purchase of treasury shares
Disposal of treasury shares

1,557

Purchase of shares of
consolidated subsidiaries(10)(1,049)(1,049)

545

2,103
(10)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period–1,546

1,182(503)

2,226

2,855

7,419

36,708(1,731)45,251

Accumulated other comprehensive income
Valuation difference on
Foreign currency
available-for-saletranslation adjustment
securities
Balance at beginning of period

(144)

(4)

Total accumulated
other comprehensive
income(149)

Non-controllinginterests

Total net assets

19

42,896

Changes during period
Dividends of surplus(923)

Profit attributable to owners ofparent2,105

Purchase of treasury shares(1,049)

Disposal of treasury shares

2,103

Purchase of shares of
consolidated subsidiaries(10)

Net changes in items otherthan shareholders' equity(427)

3(424)

(19)

(443)

Total changes during period(427)

3(424)

(19)

1,782

Balance at end of period

(572)

(1)

(573)

–

44,6789Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
3,886

3,195

3,091
20

3,169
–

Cost of sales of assets for rent
Increase (decrease) in allowance for doubtful accounts

47(0)

300

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

(10)

(0)

–

56

Interest and dividend income
Loss (gain) on valuation of investment securities

(39)
5(96)
412

Loss (gain) on disposal of non-current assets
Loss on liquidation of subsidiaries

23
43

33
–

(2,107)27(3,169)
7

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

(355)
(165)

268
(356)

Increase (decrease) in trade payables
Other, net

64(51)

24(70)

4,481

3,504

839

2096

Income taxes paid

(1,620)(1,116)

Net cash provided by (used in) operating activities

2,909

2,504(308)
108(274)0(1,548)(43)(3,175)(28)

Depreciation
Impairment loss

Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates

Purchase of assets for rental
Foreign exchange losses (gains)

Subtotal
Proceeds from insurance income
Interest and dividends received

Cash flows from investing activities
Purchase of own-used assets
Proceeds from sales of own-used assets
Purchase of investment securities
Payments of leasehold and guarantee deposits
Other, net

31(15)(1,761)(3,493)(1)
1,654(1,049)
1,818

–

(10)

Dividends paid
Other, net(703)
(19)

(923)
–

Net cash provided by (used in) financing activities

930

(163)

Effect of exchange rate change on cash and cash equivalents

(11)

9

Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury shares
Proceeds from disposal of treasury shares
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation

Net increase (decrease) in cash and cash equivalents

2,067(1,143)

Cash and cash equivalents at beginning of period

13,651

15,719Cash and cash equivalents at end of period

15,71914,57510