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, 2021
(Based on Japanese GAAP)May 14, 2021
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 23, 2021
June 23, 2021

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

June 24, 2021
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, 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2021
29,384
1.3
4,282
21.1
4,537
22.0
3,036
44.2
Year ended March 31, 2020
29,018
2.4
3,536
(6.8)
3,717
(6.6)
2,105
(20.0)

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
6.5
8.8
14.6
–
4.8
7.7
12.2

Diluted earnings pershareYen
194.88135.78Year ended March 31, 2021
Year ended March 31, 2020
(2) Consolidated financial position

Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
53,40949,917

Millions of yen
48,072
44,678Cash flows fromoperating activities
Millions of yen
3,145
2,504

Cash flows frominvesting activities
Millions of yen(3,148)(3,493)

Net assets per share%
90.0
89.5

Yen
3,084.71
2,867.61(3) Consolidated cash flows

Year ended March 31, 2021
Year ended March 31, 2020

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yenMillions of yen(351)
14,215(163)
14,575

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

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(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

934
938

44.2
30.8

2.1
2.0

–

0.00

–

60.00

60.00

128.3

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Millions of yen
Six months ending
September 30, 2021
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

14,000

4.1

1,950

5.6

2,150

5.2

1,450

5.8

93.07

31,000

5.5

4,600

7.4

4,800

5.8

3,300

8.7

211.81

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021
(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

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, 2021

16,357,214 shares As of March 31, 2020

16,357,214 shares

Number of treasury shares at the end of the period
As of March 31, 2021

772,967 shares As of March 31, 2020

776,869 shares

15,579,596 shares Year ended March 31, 2020

15,510,439 shares

Average number of shares during the period
Year ended March 31, 20212

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

14,575
1,897

14,215
1,686Electronically recorded monetary claims - operating
Accounts receivable - trade

1,618
4,775

1,851
4,655

Securities
Merchandise and finished goods

0
1,767

2
1,830

Work in process
Raw materials and supplies

132
204

111
172

Other
Allowance for doubtful accounts

187
(0)

218
(1)

25,15924,74331,328(23,461)

30,949(22,516)

7,866

8,433

5,361
(3,715)

5,443(3,871)

1,646

1,572

Land
Construction in progress

6,442
7

6,442
4

Other
Accumulated depreciation

1,128(977)

1,219
(958)

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

Other, net

151

261

16,115

16,713

126

214

6,994

10,401

Leasehold and guarantee deposits
Retirement benefit asset

553
–579
84

Deferred tax assets
Other

674
295

152
519

Allowance for doubtful accounts

(1)

(0)

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

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

3

8,516

11,73724,75728,66549,91753,409(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Accounts payable - trade

2,069

2,181

Accounts payable - other
Income taxes payable

1,101
690

158
992

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

234
64

295
55

Provision for loss on liquidation of subsidiaries andassociates

56

7

Asset retirement obligations
Other0842

–753

5,059

4,444

Total current liabilities
Non-current liabilities
Long-term borrowings–587

Long-term accounts payable - other
Retirement benefit liability

3062

27
0

Asset retirement obligations
Other

80
681
195

Total non-current liabilities

179

892

5,239

5,336

Shareholders' equity
Share capital

2,855

2,855

Capital surplus
Retained earnings

7,419
36,708

7,933
38,809Total liabilities
Net assets

Treasury shares(1,731)(2,171)

Total shareholders' equity

45,25147,427

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(572)
(1)

648
(3)

Total accumulated other comprehensive income

(573)

645

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

4––

44,67848,072

49,91753,409

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net sales

29,01829,384

Cost of sales

17,983

17,452Gross profit

11,035

11,931

Transportation costs
house maintenance cost

415
586

520
598

Advertising expensesSalaries and allowances

334
2,158

354
2,310

Remuneration for directors (and other officers)
Provision for bonuses

143
192

113
262

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

60
141

50(21)

Welfare expenses
Share-based payment expenses

403
–

426
38

Depreciation
Repair expenses

219
144

216
153

Rent expenses on land and buildings
Other

1,107
1,589

1,129
1,495

Total selling, general and administrative expenses

7,498

7,649

3,536

4,282

Interest income
Dividend income

1284

7218

Rental income
Purchase discounts

197625–

Selling, general and administrative expenses

Operating profit
Non-operating income

Miscellaneous income

1025

Total non-operating income

202276

Commission expenses
Foreign exchange losses

7704

Share-based remuneration expenses
Miscellaneous losses–
5160

Non-operating expenses

Total non-operating expenses

2121

3,717

4,537

08

Gain on sale of investment securities–

24

Total extraordinary income

03233412

26–

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

Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of investment securities
Provision for loss on liquidation of subsidiaries and associates

76–

Total extraordinary losses

522

265

(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

Profit before income taxes

3,195

4,543

Income taxes - current

1,261

1,524

Income taxes - deferred(150)(16)

Total income taxes

1,111

1,507

Profit

2,084

3,036

(21)

–

2,105

3,036

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, 2020

March 31, 2021
2,084

3,036(427)51,221(2)

(422)

1,218

1,661

4,255

1,681

4,255

(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, 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 comprehensiveincome(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 ofconsolidated 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)

–

44,6788

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

Capital surplus

2,855

Retained earnings

7,419

36,708

Total shareholders'equity

Treasury shares(1,731)45,251

Changes during period
Dividends of surplus

(934)

(934)

Profit attributable to owners ofparent

3,036

3,036

Purchase of treasury shares
Disposal of treasury shares

514

(588)

(588)

148663

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

–

514

2,101

(440)

2,175

2,855

7,933

38,809(2,171)47,427

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

(572)

(1)

Total accumulated
other comprehensiveincome(573)

Non-controllinginterests

Total net assets–

44,678Changes during period
Dividends of surplus(934)

Profit attributable to owners ofparent

3,036

Purchase of treasury shares(588)

Disposal of treasury shares

663

Net changes in items otherthan shareholders' equity

1,221(2)1,218

Total changes during period

1,221

(2)

1,218

–

3,394

Balance at end of period

648

(3)

645

–

48,0729

1,218

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

Cash flows from operating activities
Profit before income taxes

3,195

4,543Depreciation
Cost of sales of assets for rent

3,169
30

3,056
25

0(0)

(0)

(9)

56(48)–

54

Interest and dividend income
Loss (gain) on sale of investment securities(96)–(225)(24)

Loss (gain) on valuation of investment securities
Loss (gain) on disposal of non-current assets

412
33

–
18(3,169)
7(3,414)4

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

268(356)

109
6

Increase (decrease) in trade payables
Other, net

24(70)

88(54)

3,504

4,131

20
96

5232

Income taxes paid

(1,116)(1,223)

Net cash provided by (used in) operating activities

2,504

3,145(274)0(424)
48(3,175)–(3,380)
735

–

(92)

(28)
(15)

(25)
(9)

(3,493)(3,148)(1,049)

(2)

1,818

586

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates
Share-based payment expenses

Purchase of assets for rental
Foreign exchange losses (gains)

SubtotalProceeds from insurance income
Interest and dividends received

Cash flows from investing activities
Purchase of own-used assets
Proceeds from sale of own-used assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Payments of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury shares
Proceeds from disposal of treasury shares
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Dividends paid

(10)–(923)(935)

Net cash provided by (used in) financing activities

(163)

(351)

Effect of exchange rate change on cash and cash equivalents

9(5)Net increase (decrease) in cash and cash equivalents(1,143)(359)

Cash and cash equivalents at beginning of period

15,71914,575

Cash and cash equivalents at end of period

14,575

14,21510