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:

NAGAWA Co.,Ltd.

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

URL

https://group.nagawa.co.jp/President
Senior Managing Director

Osamu Takahashi
Ryoh Shimmura

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

June 21, 2022
June 21, 2022

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

June 22, 2022
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, 2022 (from April 1, 2021 to March 31, 2022)(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, 2022
30,587
4.1
4,432
3.5
4,689
3.3
3,017
(0.6)
Year ended March 31, 2021
29,384
1.3
4,282
21.1
4,537
22.0
3,036
44.2

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
6.1
8.6
14.5
–
6.5
8.8
14.6

Diluted earnings pershare

Yen
192.51
194.88Year 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
55,90253,409Millions of yen
51,00948,072

Cash flows fromoperating activities
Millions of yen
2,202
3,145

Cash flows frominvesting activities
Millions of yen(3,245)(3,148)

Net assets per share%
91.2
90.0

Yen
3,244.32
3,084.71(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yenMillions of yen(377)
12,794(351)
14,215

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
0.00

––

60.00
65.00

60.00
65.00

938
1,021

30.8
33.8

2.0
2.1

–

0.00

–

60.00

60.00125.5

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Millions of yen
Six months ending
September 30, 2022
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

16,000

12.0

2,350

13.2

2,450

9.0

1,650

10.9

104.9435,000

14.4

5,200

17.3

5,400

15.2

3,700

22.6

235.33

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:

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, 2022

16,357,214 shares As of March 31, 2021

16,357,214 shares

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

634,588 shares As of March 31, 2021

772,967 shares

15,672,339 shares Year ended March 31, 2021

15,579,596 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
Notes receivable - trade

14,215
1,686

12,794
1,430

Electronically recorded monetary claims - operating
Accounts receivable - trade

1,851
4,655

1,655
4,861

–
2884

1,830
111

2,123
153

Raw materials and supplies
Other

172
218

328
213

Allowance for doubtful accounts

(1)

(0)

24,74323,653Contract assets
Securities
Merchandise and finished goods
Work in process

Total current assets
Non-current assets
Property, plant and equipment
Assets for rent

30,94932,199(22,516)(22,431)

Assets for rent, net

8,433

9,768

Buildings and structures

5,4435,230

Accumulated depreciation(3,871)(3,781)

Buildings and structures, net

1,572

1,448

Land

6,442

7,081

Construction in progress
Other

4
1,219

308
1,213(958)(1,031)

Accumulated depreciation

Accumulated depreciation
Other, net

261

181

16,713

18,788214248

10,401579

11,975563

Retirement benefit asset
Deferred tax assets

84
152

76
276

Other
Allowance for doubtful accounts

519
(0)

321
(0)

Total investments and other assets

11,737

13,211

28,66532,24853,40955,902

Total property, plant and equipment
Intangible assetsInvestments and other assets
Investment securities
Leasehold and guarantee deposits

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Accounts payable - trade

2,181

2,719

Accounts payable - other
Income taxes payable

158
992

233
825

Contract liabilities
Provision for bonuses

–
295

156
251

Provision for bonuses for directors (and other officers)
Provision for loss on liquidation of subsidiaries and55

66

7

1

associates
Asset retirement obligations–5753

551

4,4444,811

Long-term borrowings
Long-term accounts payable - other587
27–
26

Retirement benefit liability
Asset retirement obligations

081

051

Other

195

2

Other
Total current liabilities
Non-current liabilities

Total non-current liabilities

892

81

5,336

4,893

Share capital
Capital surplus

2,855
7,933

2,855
8,812

Retained earnings
Treasury shares

38,809(2,171)40,888(1,838)

Total shareholders' equity

47,42750,717648

296

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(3)

(4)

Total accumulated other comprehensive income

645

291

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

4––

48,07251,00953,40955,902

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

Fiscal year ended
March 31, 2022

Net sales

29,38430,587

Cost of sales

17,452

18,066Gross profit

11,931

12,521

Transportation costs
house maintenance cost

520
598

551
611

Advertising expenses
Salaries and allowances

354
2,310

416
2,462

Remuneration for directors (and other officers)
Provision of allowance for doubtful accounts

113
–103
1

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

262
50

199
60

Retirement benefit expenses
Welfare expenses

(21)
426

108
434

Share-based payment expenses
Depreciation

38
216

34
211

Repair expenses
Rent expenses on land and buildings

153
1,129

144
1,138

Other

1,495

1,609

Total selling, general and administrative expenses

7,649

8,089

4,282

4,432

Selling, general and administrative expenses

Operating profit
Non-operating income
Interest income

733

Dividend income
Rental income

21825229
22Foreign exchange gains
Miscellaneous income

–
25032

Total non-operating income

276

317

Non-operating expenses
Commission expenses

06

Foreign exchange losses
Share-based remuneration expenses

416–
33

Miscellaneous losses

019

Total non-operating expenses

2160

4,537

4,689

Gain on sale of non-current assets
Gain on sale of investment securities

824

3–

Total extraordinary income

32

326

86

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

––

43
4

Total extraordinary losses

26134

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets

5

(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

Profit before income taxes

4,543

4,558

Income taxes - current

1,524

1,508

Income taxes - deferred

(16)

32

Total income taxes

1,507

1,540

Profit

3,036

3,017

Profit attributable to owners of parent

3,036

3,017

6

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
3,036

3,017

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

1,221(2)

(352)
(1)

Total other comprehensive income

1,218(354)

4,255

2,662

4,255

2,662

–

–

Comprehensive income
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, 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'equityTreasury 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 periodBalance at end of period–

514

2,101(440)

2,175

2,855

7,933

38,809(2,171)47,427

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference
on available-for-salesecurities

Foreign currencytranslation adjustment

Total accumulated
other comprehensive
income

(572)

(1)

(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

648

(3)

645

–

48,072

Balance at end of period

8

1,218

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

Capital surplus

2,855

Retained earnings

7,933

38,809Total shareholders'equityTreasury shares(2,171)47,427

Changes during period
Dividends of surplus

(938)

(938)

Profit attributable to owners ofparent

3,017

3,017

Purchase of treasury shares
Disposal of treasury shares

878(565)

(565)

898

1,777

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

–

878

2,078

333

3,290

2,855

8,812

40,888(1,838)50,717

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference
on available-for-salesecurities

Foreign currencytranslation adjustment

Total accumulated
other comprehensive
income

648

(3)

645

Non-controllinginterests

Total net assets–

48,072

Changes during period
Dividends of surplus(938)

Profit attributable to owners ofparent

3,017

Purchase of treasury shares(565)

Disposal of treasury shares

1,777

Net changes in items otherthan shareholders' equity

(352)

(1)

(354)

Total changes during period

(352)

(1)

(354)

–

2,936

Balance at end of period

296

(4)

291

–

51,0099(354)

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

Fiscal year ended

March 31, 2021

March 31, 2022

Cash flows from operating activities
Profit before income taxes

4,543

4,558

Depreciation
Cost of sales of assets for rent

3,056
253,071
30(0)

0(9)

10(48)(6)

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

54

68

(225)
(24)

(262)
––
18

43
83

(3,414)4(4,147)(0)

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

109
6157
(490)

Increase (decrease) in trade payables
Other, net

88(54)

538(245)

4,131

3,410

5232

1269

Income taxes paid

(1,223)(1,478)Net cash provided by (used in) operating activities

3,145

2,202

(424)
48

(1,143)62(3,380)735(2,138)–Purchase of shares of subsidiaries resulting in change in scopeof consolidation

(92)

–

Payments of leasehold and guarantee deposits
Other, net

(25)
(9)

(23)
(2)

(3,148)(3,245)–(587)

Purchase of treasury shares
Proceeds from disposal of treasury shares

(2)
586

(565)
1,714

Dividends paid

(935)

(938)

Net cash provided by (used in) financing activities

(351)

(377)

Effect of exchange rate change on cash and cash equivalents

(5)

(1)

Net increase (decrease) in cash and cash equivalents(359)(1,420)Cash and cash equivalents at beginning of period

14,575

14,215

Cash and cash equivalents at end of period

14,215

12,794

Interest and dividend income
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on disposal of non-current assets
Purchase of assets for rental
Foreign exchange losses (gains)

Subtotal
Proceeds from insurance income
Interest and dividends receivedCash 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

Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term borrowings

10