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, 2020
(Based on Japanese GAAP)
October 26, 2020
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 6, 2020

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

Holding of quarterly financial results meeting:

No

TEL

03-5288-8666(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2020
Six months ended September 30, 2019

Millions of yen
13,445
13,905Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(3.3)
1,847
8.6
2,043
10.8
1,370
18.8
3.3
1,700(4.0)
1,844(1.0)
1,153(2.3)

Earnings per share

Diluted earnings per share

Yen
87.99
74.42

Six months ended September 30, 2020
Six months ended September 30, 2019

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2020
As of March 31, 2020

Net assets

Millions of yen
50,23049,917

Equity ratio

Millions of yen
45,68844,678

Net assets per share
%
91.0
89.5

Yen
2,932.71
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
28,000(3.5)
3,600
1.8
3,800
2.2
2,500
18.7
160.461

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

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

16,357,214 shares

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

778,192 shares As of March 31, 2020

776,869 shares

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

15,579,723 shares Six months ended September 30, 20192

15,501,016 shares

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

As of September 30, 2020

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

14,575
1,897

13,8871,600

Electronically recorded monetary claims - operating
Accounts receivable - trade

1,618
4,775

1,659
4,481

Merchandise and finished goods
Work in process

1,767
132

1,857
184

204
188

209
194

Raw materials and supplies
Other
Allowance for doubtful accounts

(0)

(0)

25,15924,075

7,866

8,391

1,646
6,442

1,590
6,442

7151

7
314

16,115

16,746

126

170

6,994
553

7,969
556

Deferred tax assets
Other

674
295

413
299

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

9,237

24,757

26,15549,91750,230(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Accounts payable - trade

2,069

2,044

Income taxes payable
Provision for bonuses

690
234

721
266

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

64

2456

1100

Other

1,943

1,318

Total current liabilities

5,059

4,387

Long-term accounts payable - other
Retirement benefit liability

30
62

27
38

Asset retirement obligations
Other

80
681
6

Total non-current liabilities

179

153

5,239

4,541

Shareholders' equity
Share capital

2,855

2,855

Capital surplus
Retained earnings

7,419
36,708

7,419
37,144

Treasury shares(1,731)(1,732)

Total shareholders' equity

45,25145,686

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

(572)
(1)

5(3)

Total accumulated other comprehensive income

(573)

1––

44,67845,68849,91750,230associates
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)Six months ended

Six months ended

September 30, 2019

September 30, 2020

Net sales
Cost of sales

13,905
8,532

13,445
7,791

Gross profit

5,372

5,653

Selling, general and administrative expenses

3,671

3,806

Operating profit

1,700

1,847

Interest income
Dividend income

348

3179

Rental income
Purchase discounts

976

12–

Foreign exchange gains
Miscellaneous income

56–
14150

209

Non-operating income

Total non-operating income
Non-operating expenses
Commission expenses

3–

Foreign exchange losses
Share-based remuneration expenses––

28Miscellaneous loss

31

Total non-operating expenses

612

1,844

2,04300

Gain on sales of investment securities–

24

Total extraordinary income

024

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

623

10–

Provision for loss on liquidation of subsidiaries and associates

40–

Total extraordinary losses

70

10

1,774

2,057

638

680

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

Extraordinary losses

Profit before income taxes
Income taxes - current
Income taxes - deferred(8)6Total income taxes

629

686

1,144

1,370

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

5(9)

–

1,153

1,370

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2019

September 30, 2020

1,144

1,370

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

(191)
(0)

577
(2)

Total other comprehensive income

(192)

575

951

1,946

967

1,946

(15)

–

Comprehensive incomeComprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)Six months ended

Six months ended

September 30, 2019

September 30, 2020

Cash flows from operating activities
Profit before income taxes

1,774

2,057

Depreciation
Cost of sales of assets for rent

1,477
14

1,435
13(0)

(0)

(28)

(40)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates
Interest and dividend income

40(45)

(52)

(182)

Foreign exchange losses (gains)
Loss (gain) on disposal of non-current assets

(22)
6

2
10

Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities–
23(24)–

Purchase of assets for rental
Decrease (increase) in trade receivables(1,591)
1,007(1,855)549

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

(217)
(59)

(146)
(24)

Other, net

(59)

267

Subtotal

2,311

2,017

Proceeds from insurance income–2Interest and dividends received
Income taxes paid

52(483)

185(649)

Net cash provided by (used in) operating activities

1,880

1,555(156)(159)

0(2,237)1(1,872)

–
(21)

735
(7)

(2,414)(1,303)

Cash flows from investing activities
Purchase of own-used assets
Proceeds from sales of own-used assets
Purchase of investment securities
Proceeds from sales of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury shares
Proceeds from disposal of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

–(0)

1,219
(922)

–(934)

297

(935)

21(4)

Net increase (decrease) in cash and cash equivalents

(215)

(687)

Cash and cash equivalents at beginning of period

15,71914,575

Cash and cash equivalents at end of period

15,504

13,887

7