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 Three Months Ended June 30, 2022
(Based on Japanese GAAP)
July 25, 2022
NAGAWA Co.,Ltd.
Company name:
Stock exchange listing: Tokyo
Stock code:
Representative:

9663
President

URL

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

Inquiries:
Senior Managing Director
Scheduled date to file Quarterly Securities Report:

Ryoh Shimmura
August 4, 2022

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 three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Three months ended June 30, 2022
Three months ended June 30, 2021

Millions of yen6,975
7,055

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(1.1)
931
(7.1)
1,074
(6.0)
739
(1.6)
15.2
1,002
23.3
1,143
16.5
751
15.1

Earnings per share

Diluted earnings per share

Yen
47.01
48.13

Three months ended June 30, 2022
Three months ended June 30, 2021

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2022
As of March 31, 2022

Net assets

Millions of yen
54,902
55,902Equity ratio

Millions of yen
50,56251,009

%
92.1
91.2

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00

Yen–

Yen
65.00

Yen
65.00

0.00

–

60.00

60.00

Year ending March 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 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
Six months ending
16,000
12.0
2,350
13.2
2,450
9.0
1,650
10.9
104.94September 30, 2022
Full year
35,000
14.4
5,200
17.3
5,400
15.2
3,700
22.6
235.331

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2022
(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, 2022

16,357,214 shares As of March 31, 2022

16,357,214 shares

Number of treasury shares at the end of the period
As of June 30, 2022

636,528 shares As of March 31, 2022

634,588 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2022

15,721,220 shares Three months ended June 30, 2021

215,608,867 shares

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

As of June 30, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable - trade12,794
1,430

11,5981,406Electronically recorded monetary claims - operating
Accounts receivable - trade

1,655
4,861

1,600
3,725

Contract assets
Merchandise and finished goods

88
2,123

184
2,527

Work in process
Raw materials and supplies

153
328

202
715

Other
Allowance for doubtful accounts

217(0)

222(0)23,65322,181

Assets for rent, net
Buildings and structures, net

9,768
1,448

10,015
1,414

LandConstruction in progress

7,081
308

7,081
711

181

175

18,78819,399248

256

Total current assets
Non-current assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

11,975

11,743

Leasehold and guarantee deposits
Retirement benefit asset

563
76

580
83

Deferred tax assets
Other276
321

353
305

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

13,211

13,06432,24832,721

55,902

54,902

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2022

As of June 30, 2022

Liabilities
Current liabilities
Accounts payable - trade

2,719

2,311

Income taxes payable
Provision for bonuses

825
251

361
370

Provision for bonuses for directors (and other officers)
Provision for loss on liquidation of subsidiaries and66

1510

50associates
Asset retirement obligations
Other

941

1,193

4,811

4,254

Long-term accounts payable - other
Retirement benefit liability

260

260

Asset retirement obligations
Other

51
256
2

Total current liabilities
Non-current liabilities

Total non-current liabilities

8185

4,893

4,339

Shareholders' equity
Share capital

2,855

2,855

Capital surplus
Retained earnings

8,812
40,888

8,812
40,605

Total liabilities
Net assets

Treasury shares(1,838)(1,838)

Total shareholders' equity

50,71750,434

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

296
(4)

144
(16)

Total accumulated other comprehensive income

291

128

Accumulated other comprehensive income

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

4––

51,00950,562

55,902

54,902

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

Three months ended

June 30, 2021

June 30, 2022

Net sales
Cost of sales

7,055
4,084

6,975
4,001

Gross profit

2,970

2,974

Selling, general and administrative expenses

1,968

2,042

Operating profit

1,002

931

24112

2126

66

3
14

Non-operating income
Interest income
Dividend income
Rental income
Foreign exchange gains
Miscellaneous income

49154

156

Share-based remuneration expenses
Miscellaneous losses

102130Total non-operating expenses

12131,1431,074

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

0–00

Total extraordinary income

0040

40

Profit before income taxes

1,138

1,074

Income taxes - current
Income taxes - deferred

349
38345
(9)

Total income taxes

387

335

Profit751

739

Profit attributable to owners of parent

751

739

Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses

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

ProfitOther comprehensive income

Three months ended

Three months ended

June 30, 2021

June 30, 2022
751

739

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

(50)
(3)

(151)
(11)

Total other comprehensive income

(54)

(163)

696

575

696

575

–

–

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests6