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, 2024
(Based on Japanese GAAP)
August 6, 2024
Company name:
SAN-AI OBBLI CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

8097
URL https://www.san-ai-obbli.com/
Representative Director, President
Hiroshi Hayata

Inquiries:

Executive Officer, General Manager, General
Eiichi Nonaka
Accounting Department

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:–No

Holding of financial results meeting:

NoTEL03-6880-3100(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%(0.1)
2,440 (35.8)
2,789 (31.8)
2,611
1.4
(2.5)
3,804
58.0
4,092
51.3
2,576
50.7

Net sales
Three months ended June 30, 2024
Three months ended June 30, 2023

Millions of yen
150,894
151,020

Earnings per share

Diluted earnings per share

Yen
40.64
38.57

Three months ended June 30, 2024
Three months ended June 30, 2023

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2024
As of March 31, 2024

Net assets

Millions of yen
210,418
218,607

Equity ratio

Millions of yen
122,079
123,829

%
55.1
53.9

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Year ended March 31, 2024

Yen–

Yen
30.00

Yen–

Yen
50.00

Yen
80.00

Year ending March 31, 2025

–
50.00

–

50.00

100.00Year ending March 31, 2025 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profitOrdinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
650,000(1.5)
12,500 (25.9)
13,000 (26.7)
9,500 (15.3)
147.72

1

4. Notes(1) Significant changes in the scope of consolidation during the three months ended June 30, 2024:

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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(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, 2024

66,000,000 shares As of March 31, 2024

66,000,000 shares

Number of treasury shares at the end of the period
As of June 30, 2024

1,839,766 shares As of March 31, 2024

1,688,130 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024

64,257,882 shares Three months ended June 30, 2023

266,780,342 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2024

As of June 30, 2024

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

53,671
46,74046,05540,347

Securities
Merchandise and finished goods

100
7,387

150
8,070

29
130

60
139

1,046
(486)

1,557
(15)

108,620

96,364

71,938(51,155)

74,086(53,157)

Buildings and structures, net

20,78320,929Machinery, equipment and vehicles
Accumulated depreciation

37,178(28,705)

37,479(29,288)

8,472

8,190

18,762
10,25918,797
10,620

Accumulated depreciation(5,579)(5,681)Other, net

4,679

4,939

52,69752,856Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Land
Other

Total property, plant and equipment
Intangible assets
Goodwill

1,881

1,838

Customer-related intangible assets
Other

1,004
4,026

981
3,927

Total intangible assets

6,912

6,748

Investments and other assets
Investment securities

20,97819,083Retirement benefit asset
Guarantee deposits

3,442
24,813

3,513
30,840Other
Allowance for doubtful accounts

1,270
(127)

1,673
(663)

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

350,377

54,448109,987

114,053

218,607

210,418(Millions of yen)
As of March 31, 2024

As of June 30, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade55,202

51,887

300
946

300
957

2,547
2,226

1,016
1,083

84
1

19
1

Other

17,17916,678

Total current liabilities

78,48871,944

–
1,168

30
1,123

Provision for retirement benefits for directors (and otherofficers)

194

165

Provision for special repairs
Retirement benefit liability

227
95

219
131

Asset retirement obligations
Other562
14,041881
13,843

Total non-current liabilities

16,29016,394

94,77888,338

Shareholders' equity
Share capital

10,127

10,127

Capital surplus
Retained earnings

2,531
101,702

2,531
101,098

Treasury shares(2,605)(2,924)

Total shareholders' equity

111,755

110,832

Valuation difference on available-for-sale securities
Revaluation reserve for land

7,101
(613)

6,261
(613)

Remeasurements of defined benefit plans(505)(476)

Total accumulated other comprehensive income

5,983

5,171

Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for warranties for completed construction

Non-current liabilities
Bonds payable
Long-term borrowings

Total liabilities
Net assets

Accumulated other comprehensive income

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

4

6,090

6,074

123,829

122,079

218,607

210,418

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

Net sales
Net sales of goods

Three months ended

Three months endedJune 30, 2023

June 30, 2024
150,416

150,508

603

386

151,020

150,894

Cost of goods soldCost of sales of completed construction contracts

135,716523

136,435
334

Total cost of sales

136,240

136,770

Gross profit

14,77914,123

Selling, general and administrative expenses

10,975

11,683Operating profit

3,804

2,440

Net sales of completed construction contracts
Total net sales
Cost of sales

Non-operating income
Interest income

1318

Dividend income
Purchase discounts

223
52271
56

Light oil delivery tax grantReversal of allowance for doubtful accounts

240

23–Other5071

Total non-operating income

364

441

Interest expenses
Sales discounts

2141

1941

Other

1231

Non-operating expenses

Total non-operating expenses

75

92

4,092

2,789

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

37–

3
1,354

Total extraordinary income

37

1,358

73

11

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses

1–

Total extraordinary losses

74

11Profit before income taxes

4,055

4,136

Income taxes - current
Income taxes - deferred891399

918
403

Total income taxes

1,290

1,322

Profit

2,765

2,814

189

203

2,576

2,611

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

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

ProfitOther comprehensive income

Three months ended

Three months ended

June 30, 2023

June 30, 2024
2,765

2,814

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

1,11969(855)28

Total other comprehensive income

1,188(826)

3,954

1,987

3,752

1,799

201

188

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

Three months ended

Three months ended

June 30, 2023

June 30, 2024
4,055

4,136

Depreciation
Amortization of goodwill

1,277
103

1,375
110

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses(0)(1,109)57(1,149)

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

(71)

(65)

Increase (decrease) in retirement benefit asset or liability
Interest and dividend income

(66)
(289)

(28)
(346)

Interest expenses
Loss (gain) on sale of property, plant and equipment

63
32

61
7Impairment losses
Loss (gain) on sale of investment securities

1––(1,354)

3,654(1,085)

6,470
(687)

(437)

(471)

Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Decrease (increase) in guarantee deposits and claims provablein bankruptcy, claims provable in rehabilitation
Increase (decrease) in trade payables

24(6,554)(4,052)(3,397)

Increase (decrease) in other current liabilities
Other, net

1,028
(131)

775
(232)

Subtotal

2,997(1,290)

231
(77)

298
(74)

(3,722)(2,366)(570)(3,433)

(306)
–

(6)
1,936

(3,118)204(1,725)
5

(547)

(169)

–

(234)

(5)

(2)

(3,773)

(195)

(626)

(110)

(687)
(217)

(318)
(208)

Dividends paid
Other, net(2,410)(152)(3,215)(151)

Net cash provided by (used in) financing activities(4,095)(4,003)

Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid to non-controlling interests

Net increase (decrease) in cash and cash equivalents(8,439)(7,632)

Cash and cash equivalents at beginning of period

46,74753,381

Cash and cash equivalents at end of period

38,30745,748

7