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 Six Months Ended June 30, 2020
(Based on Japanese GAAP)
August 4, 2020
Company name:
EBARA JITSUGYO CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

6328
URL https://www.ejk.co.jp/President and COO

Inquiries:

Managing Executive Officer, Head ofPlanning & Strategy OfficeToru Abe
Shuji Ohno

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

August 12, 2020
September 7, 2020

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
Yes

03-5565-2885(for the press and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2020 (from January 1, 2020 to June 30, 2020)(1) Consolidated operating results (cumulative)
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%
Six months ended June 30, 2020
16,087
2.8
1,982
27.8
2,062
26.5
1,428
24.5
Six months ended June 30, 201915,652(2.7)
1,551 (11.3)
1,631(9.4)
1,147(9.2)
Earnings per share

Diluted earnings per share

Yen
223.02
174.11

Six months ended June 30, 2020
Six months ended June 30, 2019

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
30,11728,065

As of June 30, 2020
As of December 31, 2019

Equity ratio

Millions of yen
15,422
14,945%51.2
53.3

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Year ended December 31, 2019

Yen–

Yen
30.00

Yen–

Yen
30.00

Yen
60.00

Year ending December 31, 2020

–

30.00
–

30.00

60.00

Year ending December 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2020 (from January 1, 2020 to December 31, 2020)
Net sales
Full year

Millions of yen
29,500Percentages 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
3.8
2,150
6.2
2,270
4.6
1,600
5.8
242.71

1

4. Notes(1) Changes in significant subsidiaries during the six months ended June 30, 2020(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:

No(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:

No
No

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 June 30, 2020

6,715,000 shares As of December 31, 20196,715,000 shares

430,442 shares As of December 31, 2019

122,867 shares

Number of treasury shares at the end of the period
As of June 30, 2020

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2020

6,405,832 shares Six months ended June 30, 20192

6,592,133 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of December 31, 2019

As of June 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade6,40810,167

11,955
7,266

Merchandise and finished goods
Work in process

541
195

534
218

Costs on construction contracts in progress
Raw materials and supplies

647
210

212
263

Other
Allowance for doubtful accounts

150
(1)

176
(1)

18,321

20,625

3,172(1,767)3,203(1,811)

Buildings and structures, net

1,405

1,392

Machinery, equipment and vehicles
Accumulated depreciation

191(110)

194
(124)

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

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Other
Accumulated depreciation
Other, net

8069631(543)

636
(557)

87

78

1,360
3

1,360
3(3)

(3)

––

2,934

2,900

Intangible assets
Investments and other assets

154

140

Investment securities
Insurance funds

5,087
727

4,900
726

Investment property, net
Deferred tax assets

679
14673
17

Other
Allowance for doubtful accounts

253
(106)

239
(106)

Total investments and other assets

6,655

6,449

Total property, plant and equipment

Total non-current assets
Total assets

3

9,744

9,491

28,06530,117

(Millions of yen)
As of December 31, 2019

As of June 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

8,397

9,134

Short-term borrowings
Income taxes payable

1,090
381

1,090
657

Accrued consumption taxes
Advances received

136
1,056

248
1,687

112
570

124
459

Total current liabilities

11,746

13,402

Non-current liabilities
Deferred tax liabilities

Provision for loss on construction contracts
Other

977

882

Provision for retirement benefits for directors (and otherofficers)

158

158

Retirement benefit liability
Other

153
83

169
81

Total non-current liabilities

1,374

1,292

13,12014,694

Shareholders' equity
Share capital

1,001

1,001

Capital surplus
Retained earnings

831
10,996831
12,227

Treasury shares

(291)

(861)

12,53813,198Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans

2,451
(44)

2,259
(35)

Total accumulated other comprehensive income

2,407

2,224

14,945

15,422

28,06530,117

Total liabilities
Net assets

Total shareholders' equityAccumulated other comprehensive income

Total net assets
Total liabilities and net assets

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

Six months ended

June 30, 2019

June 30, 2020

Net sales
Cost of sales

15,652
11,39516,087
11,285Gross profit

4,256

4,802

Selling, general and administrative expenses

2,705

2,819

Operating profit

1,551

1,982

Interest income
Dividend income

144046

Rental income from investment property
Other

48
1850
12

Total non-operating income

113

110

43

Rental expenses on real estate
Loss on cancellation of insurance policies

189190

Other

05

Non-operating income

Non-operating expenses
Interest expenses

Total non-operating expenses

33

29

1,631

2,062–

28–

28

Profit before income taxes

1,631

2,034

Income taxes - current
Income taxes - deferred

487
(4)

622
(16)

Total income taxes

483

605

Profit

1,147

1,428

Profit attributable to owners of parent

1,147

1,428

Ordinary profit
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses

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

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

Six months ended

Six months ended

June 30, 2019

June 30, 2020
1,147

1,428

463
8(191)
8471

(183)

1,619

1,245

1,619

1,245––

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

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

June 30, 2019

June 30, 2020
1,631

2,034

Depreciation
Increase (decrease) in allowance for doubtful accounts

88(0)

99(0)

Increase (decrease) in provision for loss on construction
contracts–

12

Increase (decrease) in retirement benefit liability
Interest and dividend income

29(45)

27(47)

Interest expenses
Loss (gain) on cancellation of insurance policies4(6)30Decrease (increase) in trade receivables
Loss (gain) on valuation of investment securities

3,614–

2,901
28

Decrease (increase) in inventories
Increase (decrease) in trade payables

292
631

366
737

Increase (decrease) in advances received
Decrease/increase in consumption taxes receivable/payable

(362)
55

630
112

Other, net

(70)

(131)

Subtotal

5,860

6,774

Interest and dividends received

45

47Interest paid
Income taxes paid

(4)
(417)

(3)
(357)

Net cash provided by (used in) operating activities

5,484

6,461

Cash flows from investing activities
Net decrease (increase) in forced deposits

(132)

1,175

Purchase of property, plant and equipment
Purchase of intangible assets

(61)
(46)

(29)
(2)

Purchase of investment securities
Proceeds from sales and redemption of investment securities(18)0(118)
0

Proceeds from cancellation of insurance funds
Other, net

30
(9)

10(6)

(237)

1,029

Cash flows from financing activities
Dividends paid(230)(197)

Purchase of treasury shares
Other, net–(0)(570)–(231)(768)

Net increase (decrease) in cash and cash equivalents

5,015

6,722

Cash and cash equivalents at beginning of period

6,165

5,227

Cash and cash equivalents at end of period

11,18011,949Net cash provided by (used in) investing activities

Net cash provided by (used in) financing activities

7