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 Nine Months Ended February 28, 2023
(Based on Japanese GAAP)
April 7, 2023
Company name:Sanko Gosei Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

7888
URL http://www.sankogosei.co.jp
Representative Director/President
Kenso Kuroda

Inquiries:
Director/Executive OfficerScheduled date to file Quarterly Securities Report:

Akira Serikawa
April 13, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL

0763-52-7105(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended February 28, 2023 (from June 1, 2022 to February 28, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended February 28, 2023
Nine months ended February 28, 2022

Millions of yen
57,26545,489Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
25.9
2,173
84.6
2,228 128.6
1,515 112.1
13.3
1,177 (36.3)
974 (38.2)
714 (20.5)

Earnings per share

Diluted earnings per share

Yen
49.73
23.44

Nine months ended February 28, 2023
Nine months ended February 28, 2022

Yen––(2) Consolidated financial position
Total assets
As of February 28, 2023
As of May 31, 2022

Net assets

Millions of yen
61,64858,409Equity ratio

Millions of yen
24,85623,251

Net assets per share
%
39.6
39.1

Yen
800.96748.46

2. Cash dividends
Annual dividends per share

Year ended May 31, 2022
Year ending May 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––

Yen
7.00
7.00

Yen––

Yen
7.00

Yen
14.00

7.00

14.00

Year ending May 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending May 31, 2023 (from June 1, 2022 to May 31, 2023)Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
68,000
3.6
2,800
10.1
2,500
3.5
1,900
4.9
62.32

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended February 28, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes(3) 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:

NoNo

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

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 2023

30,688,569 shares As of May 31, 2022

30,688,569 shares

Number of treasury shares at the end of the period
As of February 28, 2023

204,786 shares As of May 31, 2022

204,749 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended February 28, 2023

30,483,817 shares Nine months ended February 28, 2022

230,483,843 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of May 31, 2022

As of February 28, 2023

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

6,822327,185
21

Electronically recorded monetary claims - operating
Accounts receivable - trade631
14,0071,293
14,993Merchandise and finished goods
Work in process

1,896
3,306

1,308
3,939

Raw materials and supplies
Other

1,777
2,248

1,733
2,819

(0)

–

30,72133,295

9,157

9,878

Machinery, equipment and vehicles, netTools, furniture and fixtures, net

9,505
1,977

9,693
1,914

Land
Construction in progress

4,977
977

5,023
776

Total property, plant and equipment

26,59527,286

109

87

Other

416

431

Total intangible assets526

518

Investment securities
Other18547

20
527

Total investments and other assets

566

548

27,68728,35358,40961,648

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Intangible assets
Goodwill

Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of May 31, 2022

As of February 28, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

6,963

6,762

Electronically recorded obligations - operating
Short-term borrowings

2,585
6,341

3,396
6,809

Current portion of long-term borrowings
Income taxes payable

1,870
464

1,798
317

169
34

144
–

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

4,712

6,327

Total current liabilities

23,141

25,557

7,343

6,549

18

16

832

751

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other

3,821

3,918

Total non-current liabilities

12,017

11,23535,15836,792

Share capital
Capital surplus

4,008
4,071

4,008
4,071

Retained earnings
Treasury shares

14,729(43)

15,818(43)

Total shareholders' equity

22,76623,855

Total liabilities
Net assets
Shareholders' equity

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

4(3)

(2)

(226)
279

(178)
741

49

560

435

439

23,251

24,85658,40961,648

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended

Nine months ended

February 28, 2022

February 28, 2023

Net sales
Cost of sales

45,48939,26557,26549,247Gross profit

6,224

8,018

Selling, general and administrative expenses

5,047

5,844

Operating profit

1,177

2,173

Interest and dividend income
Rental income

2549

2346

Foreign exchange gains
Other–
112

216
71

Total non-operating income

187358Non-operating income

Non-operating expenses
Interest expenses

303

267

Foreign exchange losses
Loss on Derivative

1439–0Other

32

35

Total non-operating expenses

390

303

Ordinary profit

974

2,228

Extraordinary income
Gain on sale of non-current assets

177

0

Total extraordinary income

1770Extraordinary losses
Loss on retirement of non-current assets

5138

Loss on sale of non-current assets

710

Total extraordinary losses
Profit before income taxes

59

49

1,092

2,179

Income taxes

344

667

Profit748

1,512

Profit (loss) attributable to non-controlling interests

33(3)Profit attributable to owners of parent

714

1,515

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Nine months ended

Nine months ended

February 28, 2022

February 28, 2023
748

1,512

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

(0)
280

1470

Remeasurements of defined benefit plans, net of tax

4747

327

519

Comprehensive income

Total other comprehensive income

1,075

2,031

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,035

2,027

39

4

Comprehensive income attributable to non-controllinginterests

6