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 December 31, 2020
(Based on Japanese GAAP)
January 25, 2021
NAGAWA Co.,Ltd.
Company name:
Stock exchange listing: Tokyo
Stock code:
Representative:

9663
President

URL

https://group.nagawa.co.jp/Osamu Takahashi

Inquiries:
Chief Financial Officer
Scheduled date to file Quarterly Securities Report:

Ryoh Shimmura
February 5, 2021

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

Holding of quarterly financial results meeting:

NoTEL

03-5288-8666(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended December 31, 2020
Nine months ended December 31, 2019

Millions of yen
21,233
21,128Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
0.5
3,222
25.1
3,462
25.4
2,314
31.8
1.6
2,576(9.6)
2,760(7.9)
1,756 (10.4)

Earnings per share

Diluted earnings per shareYen
148.59113.32Nine months ended December 31, 2020
Nine months ended December 31, 2019

Yen––(2) Consolidated financial position
Total assets
As of December 31, 2020
As of March 31, 2020

Net assets

Millions of yen
50,58949,917

Equity ratio

Millions of yen
46,82044,678

Net assets per share
%
92.6
89.5

Yen
3,005.49
2,867.61

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––

Yen
0.00
0.00

Yen––

Yen
60.00

Yen
60.00

60.00

60.00

Year ending March 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
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
30,000
3.4
4,500
27.3
4,700
26.4
3,000
42.5
192.561

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 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 December 31, 2020

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

16,357,214 sharesNumber of treasury shares at the end of the period
As of December 31, 2020

778,746 shares As of March 31, 2020

776,869 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2020

15,579,388 shares Nine months ended December 31, 20192

15,504,571 shares

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

As of December 31, 2020

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

14,575
1,897

12,8091,882

Electronically recorded monetary claims - operating
Accounts receivable - trade

1,618
4,775

2,077
4,266

Merchandise and finished goods
Work in process

1,767
132

1,777
212

204
188

247
236

Raw materials and supplies
Other
Allowance for doubtful accounts

(0)

(1)

25,15923,508

7,866

8,643

1,646
6,442

1,629
6,466

7
151

8
293

16,11517,041

126

195

6,994
553

8,745
562

Deferred tax assets
Other

674
295

277
258

Allowance for doubtful accounts

(1)

(0)

Total current assets
Non-current assets
Property, plant and equipmentAssets for rent, net
Buildings and structures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Leasehold and guarantee deposits

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

3

8,516

9,843

24,75727,08049,91750,589(Millions of yen)
As of March 31, 2020

As of December 31, 2020

Liabilities
Current liabilities
Accounts payable - trade

2,069

1,860

Income taxes payable
Provision for bonuses

690
234526
147

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

64

36

56

903

Other

1,943

1,043

Total current liabilities

5,059

3,627

Long-term accounts payable - other
Retirement benefit liability

30
62

27
25

Asset retirement obligations
Other

80
681
6

Total non-current liabilities

179

140

5,239

3,768

Shareholders' equity
Share capital

2,855

2,855

Capital surplus
Retained earnings

7,419
36,708

7,419
38,088Treasury shares(1,731)(1,733)

Total shareholders' equity

45,251

46,629Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(572)
(1)

193
(1)

Total accumulated other comprehensive income

(573)

191

––

44,67846,82049,91750,589associates
Asset retirement obligations

Non-current liabilities

Total liabilities
Net assets

Accumulated other comprehensive income

Non-controlling interests
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)Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

Net sales
Cost of sales

21,128
12,975

21,233
12,265Gross profit

8,152

8,967

Selling, general and administrative expenses

5,576

5,745

Operating profit

2,576

3,222

Interest income
Dividend income

882

5216

Rental income
Purchase discounts

1576

19–

Foreign exchange gains
Miscellaneous income

27–
18192

259

Non-operating income

Total non-operating income
Non-operating expenses
Commission expenses

4–

Foreign exchange losses
Share-based remuneration expenses

––

811

Miscellaneous loss

40

Total non-operating expenses

820

2,760

3,462

00

Gain on sales of investment securities–

24

Total extraordinary income

024

Loss on disposal of non-current assets
Loss on valuation of investment securities

22
21

17–

Provision for loss on liquidation of subsidiaries and associates

40–

Total extraordinary losses

84

17

2,676

3,468

881

1,093

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

Extraordinary losses

Profit before income taxes
Income taxes - current
Income taxes - deferred

5259

Total income taxes

934

1,153

1,742

2,314

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

5(14)

–

1,756

2,314

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

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

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

1,742

2,314

23
4765(0)

27764

1,769

3,079

1,785

3,079(15)–Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6