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 September 30, 2021
(Based on Japanese GAAP)
October 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
November 8, 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 six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2021
Six months ended September 30, 2020Millions of yen
14,286
13,445Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
6.3
2,075
12.4
2,248
10.0
1,488
8.6
(3.3)
1,847
8.6
2,043
10.8
1,370
18.8

Earnings per share

Diluted earnings per share

Yen
95.14
87.99

Six months ended September 30, 2021
Six months ended September 30, 2020

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2021
As of March 31, 2021

Net assets

Millions of yen
54,48453,409Equity ratio

Millions of yen
49,69648,072

Net assets per share
%
91.2
90.0

Yen
3,167.31
3,084.71

2. Cash dividends
Annual dividends per share

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

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

–

65.00

65.00

Year ending March 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
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
31,000
5.5
4,600
7.4
4,800
5.8
3,300
8.7
211.81

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(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:

Yes
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 September 30, 2021

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 September 30, 2021

666,847 shares As of March 31, 2021

772,967 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

15,644,731 shares Six months ended September 30, 2020

215,579,723 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of September 30, 2021

AssetsCurrent assets
Cash and deposits
Notes receivable - trade14,215
1,686

13,343
1,655

Electronically recorded monetary claims - operating
Accounts receivable - trade

1,851
4,655

1,793
4,436

Contract assets
Merchandise and finished goods

–
1,830

220
1,821

Work in process
Raw materials and supplies

111
172

169
231

Other
Allowance for doubtful accounts

220
(1)

211
(0)

24,74323,881

Assets for rent, net
Buildings and structures, net

8,433
1,572

9,107
1,500

Land
Construction in progress

6,442
4

6,442
451

261

216

16,713

17,718214

202

Total current assets
Non-current assets
Property, plant and equipmentOther, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

10,401

11,498

Leasehold and guarantee deposits
Retirement benefit asset

579
84

580
99

Deferred tax assets
Other152
519

23480

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

11,737

12,68028,66530,60253,40954,484

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Liabilities
Current liabilities
Accounts payable - trade

2,181

1,875

Income taxes payable
Provision for bonuses

992
295

774
257

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

30

76–

23

associates
Asset retirement obligations
Other

912

996

4,444

3,964

Long-term borrowings
Long-term accounts payable - other

587
27558
26

Retirement benefit liability
Asset retirement obligations

081

051

Other

195

185

Total non-current liabilities

892

823

5,336

4,788

Share capital
Capital surplus

2,855
7,933

2,855
8,559

Retained earnings
Treasury shares

38,809(2,171)

39,359(1,910)Total shareholders' equity

47,427

48,864

Total current liabilities
Non-current liabilities

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

648

836

Foreign currency translation adjustment

(3)

(4)

Total accumulated other comprehensive income

645

831

––

48,072

49,69653,40954,484Non-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)Six months ended

Six months ended

September 30, 2020

September 30, 2021

Net sales
Cost of sales

13,445
7,791

14,286
8,212

Gross profit

5,653

6,073

Selling, general and administrative expenses

3,806

3,998

Operating profit

1,847

2,075

Interest income
Dividend income

3179

28140

Rental income
Foreign exchange gains

12–

121

Non-operating income

Miscellaneous income

1411

Total non-operating income

209195

Commission expenses
Foreign exchange losses–24–

Share-based remuneration expenses
Miscellaneous losses

81

170

Total non-operating expenses

1221

2,043

2,248

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

0240–

Total extraordinary income

240

105

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets

105Profit before income taxes

Total extraordinary losses

2,057

2,243

Income taxes - current
Income taxes - deferred

680
6708
46

Total income taxes

686755

Profit1,370

1,488Profit attributable to owners of parent

1,370

1,488

5

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2020

September 30, 2021

1,370

1,488

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

577
(2)

187
(1)

Total other comprehensive income

575

186

1,946

1,674

1,946

1,674––

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive 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

September 30, 2020

September 30, 2021

2,057

2,243

1,435
–

1,424
5

Cost of sales of assets for rent
Increase (decrease) in allowance for doubtful accounts

13(0)

17(0)

Increase (decrease) in provision for bonuses for directors (andother officers)

(40)

(25)

Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates

(45)

(1)

Share-based payment expenses
Interest and dividend income

32(182)35(169)Foreign exchange losses (gains)
Loss (gain) on disposal of non-current assets

210(1)
4

Loss (gain) on sale of investment securities
Purchase of assets for rental(24)(1,855)–(1,971)

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

549(146)

87(107)

Increase (decrease) in trade payables
Other, net(24)235(305)
20

2,017

1,258

2185

0172

Income taxes paid(649)(930)

Net cash provided by (used in) operating activities

1,555499(159)
1(459)
0(1,872)735(832)–Depreciation
Amortization of goodwill

Subtotal
Proceeds 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
Other, net

(7)

(0)

(1,303)(1,292)

(0)
–

(2)
861

Dividends paid(934)(938)

Net cash provided by (used in) financing activities

(935)

(79)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury shares
Proceeds from disposal of treasury shares

Effect of exchange rate change on cash and cash equivalents(4)0

Net increase (decrease) in cash and cash equivalents

(687)

(871)

Cash and cash equivalents at beginning of period

14,575

14,215

Cash and cash equivalents at end of period

13,887

13,3437