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 Year Ended March 31, 2023
(Based on Japanese GAAP)May 12, 2023
Company name:

Sanyo Electric Railway

Stock exchange listing: Tokyo
Stock code:
9052
Representative:
Inquiries:

URL

https://www.sanyo-railway.co.jp/

President and Representative Director
Executive Officer,Manager of Accounting

Division
Scheduled date of ordinary general meeting of shareholders:

Kazuhiro Uekado
Daisuke Mizutani

TEL078-612-2032

June 28, 2023

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

June 29, 2023
June 29, 2023

Preparation of supplementary material on financial results:
Holding of financial results meeting:YesNo(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Operating revenue
Year ended March 31, 2023
Year ended March 31, 2022

Operating profit

Millions of yen
38,91334,151%
13.9–

Millions of yen
3,491
1,499

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
5.5
3.5
9.0
–
13.4
1.7
4.4

Yen
119.94268.55

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

%
132.8
–

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
3,804 112.92,664(55.3)
1,787–
5,967–(2) Consolidated financial position
Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
111,167
108,755

Millions of yen
49,644
46,971

Cash flows fromoperating activities
Millions of yen
5,158
6,142

Cash flows frominvesting activities
Millions of yen(6,716)(4,174)

Net assets per share%
44.7
43.2

Yen
2,234.38
2,114.02(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of periodfinancing activities
Millions of yen
Millions of yen
1,142
8,301
791
8,716

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%

%

––

15.00
15.00

––

15.00
15.00

30.00
30.00

666
667

11.2
25.0

1.5
1.4–15.00–15.00

30.00

132.5

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Full year

Percentages indicate year-on-year changes
Profit attributable toOperating revenue
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
38,487(1.1)
2,926 (16.2)
2,937 (22.8)
2,049 (23.1)
92.26

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

22,330,598 shares As of March 31, 2022

22,330,598 shares

Number of treasury shares at the end of the period
As of March 31, 2023

112,072 shares As of March 31, 2022

111,303 shares

22,218,952 shares Year ended March 31, 2022

22,219,809 shares

Average number of shares during the period
Year ended March 31, 2023

2

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

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

6,7843,733

8,369
3,367

Securities
Merchandise and finished goods

1,999
980

–985

Land and buildings for sale in lots
Other

4,888
1,379

6,111
1,784

Allowance for doubtful accounts

(10)

(14)

19,757

20,604

38,84538,664

11,382
27,203

10,162
29,291

565
738

636
605

78,73679,361

613

646

Investment securities
Long-term loans receivable

5,834
51

6,543
53

Retirement benefit asset
Deferred tax assets

2,615
117

2,760
159

Other
Allowance for doubtful accounts

1,043
(14)

1,053
(15)

Total investments and other assets

9,64810,554

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets

Total non-current assets
Total assets

388,997

90,562

108,755

111,167(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)

7,219

4,752

5,464
925

7,702
563

627
16548
25

Other

8,359

9,108

Total current liabilities

22,61322,701

Bonds payable
Long-term borrowings

6,000
26,471

6,000
26,069Deferred tax liabilities
Retirement benefit liability

1,570
1,632

2,053
1,536

Long-term deferred contribution for construction
Leasehold and guarantee deposits received

38
3,168

42
2,855

Non-current liabilities

Other

287

263

39,17038,82061,783

61,522

Share capital
Capital surplus

10,090
7,037

10,090
7,057

Retained earningsTreasury shares

27,814(177)

29,812(198)

Total shareholders' equity

44,76546,761

1,582

2,169

624

713

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4

2,206

2,883

46,97149,644

108,755

111,167

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Operating revenue

34,151

38,913Operating expenses
Operating expenses and cost of sales of transportation

27,68730,198Selling, general and administrative expenses

4,963

5,222

Total operating expenses

32,65135,421

1,499

3,491

Operating profit
Non-operating income
Interest income

11

Dividend income
Gain on adjustment of accounts payable

163
37179
276

Share of profit of entities accounted for using equity method
Miscellaneous income

0432

0189

Total non-operating income635

647

Non-operating expenses
Interest expenses

244

246

Loss on adjustment of account payable
Miscellaneous expenses

3369

36
51

Total non-operating expenses

347

334

1,787

3,804

Ordinary profit
Extraordinary income
Contribution received for construction

553

210

Gain on compensation income for expropriation
Gain on sale of non-current assets

16,741

10–

Subsidy income
Compensation income for absence from work

158
60–
–

Subsidies for employment adjustment
Gain on sale of investment securities

153–
–

7,535

221

553

210

39

26

Total extraordinary income
Extraordinary losses
Tax purpose reduction entry of contribution for construction
Loss on retirement of non-current assets
Reduction entry of land compensation income forexpropriation
Loss on reduction of non current assets with subsidy income

110158–Loss due to temporary closed
Loss on sale of non-current assets

66
0–
–

Total extraordinary losses

819

247

8,503

3,777

Income taxes - current

931

956

Income taxes - deferred

1,604

156

Total income taxes

2,536

1,112

Profit

5,967

2,664

Profit attributable to owners of parent

5,967

2,664

Profit before income taxes

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
5,967

2,664

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax

0(113)

587
88

Total other comprehensive income

(112)

676

5,854

3,341

5,854

3,341

––

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

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

10,090Retained earnings

7,037

22,570

Cumulative effects ofchanges in accounting
policies
Restated balance

Total shareholders'equity

Treasury shares
(175)

(56)
10,0907,037

22,51339,522(56)(175)

39,466

Changes during period
Dividends of surplus

(666)

(666)

Profit attributable to ownersof parent

5,967

5,967

Purchase of treasury shares

(1)

(1)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

––

5,300

(1)

5,298

10,0907,037

27,814(177)

44,765

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference
on available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income

1,581

738

2,319

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net assets

41,842
(56)

1,581

738

2,319

41,786

Changes during period
Dividends of surplus(666)

Profit attributable to ownersof parent

5,967

Purchase of treasury shares(1)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period0(113)

0(113)

(112)

5,185

1,582

624

2,206

46,9717(112)(112)

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

10,090Retained earnings

7,037

27,814

Total shareholders'equityTreasury shares(177)

44,765

Changes during period
Dividends of surplus

(667)

(667)

Profit attributable to ownersof parent

2,664

2,664

Purchase of treasury shares
Disposal of treasury shares

(71)

(71)

5070

19

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–19

1,997

(21)

1,996

10,0907,057

29,812(198)

46,761

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference
on available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income

1,582

624

2,206

Total net assets

46,971

Changes during periodDividends of surplus(667)

Profit attributable to ownersof parent

2,664

Purchase of treasury shares(71)

Disposal of treasury shares

70

Net changes in items otherthan shareholders' equity

587

88676

676

Total changes during period

587

88

676

2,672

2,169

713

2,883

49,644

Balance at end of period8Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
8,503

3,777

Depreciation
Decrease (increase) in retirement benefit asset

4,041
(55)

4,211
(106)

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses(21)
129(8)(78)

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

11

9

Share of loss (profit) of entities accounted for using equity
method(0)(0)

Interest and dividend income
Interest expenses

(164)
244

(180)
246

Subsidy income
Loss on retirement of property, plant and equipment

(158)
114

–
96

Loss (gain) on sale of property, plant and equipment
Decrease (increase) in trade receivables(6,741)(349)–(180)

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

226(649)(1,190)(104)

Decrease (increase) in other current assets
Increase (decrease) in other current liabilities

254
572

(445)
197

Increase (decrease) in other non-current liabilities
Transfer construction in progress to operating expenses

(250)
(10)

(322)
(8)

Other, net

287

800

Subtotal

5,984

6,712

Interest and dividends received

164

180

Interest paid
Income taxes refund (paid)

(243)
237

(247)
(1,486)

Net cash provided by (used in) operating activities

6,142

5,158

(0)

(13)

10(11,711)

13(7,363)

Proceeds from sale of property, plant and equipment
Purchase of investment securities

6,979
(57)

–(2)

Decrease(Increase) in long-term prepaid expenses
Purchase of investments and other assets

(22)
(108)

(229)
(157)

8380

489

1,029

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

Proceeds from decrease in investments and other assets
Proceeds from long-term deferred contribution received forconstruction
Subsidies received
Other, net
Net cash provided by (used in) investing activities

9158–80(374)(4,174)(6,716)

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
(500)

2,000

7,040
(5,047)4,900(5,064)

Dividends paid
Other, net

(666)
(35)

(667)
(25)

Net cash provided by (used in) financing activities

791

1,142

Proceeds from long-term borrowings
Repayments of long-term borrowings

Net increase (decrease) in cash and cash equivalents

2,759(415)Cash and cash equivalents at beginning of period

5,957

8,716

Cash and cash equivalents at end of period

8,716

8,301

10