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, 2022
(Based on Japanese GAAP)
November 8, 2022
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
Yukio Tsukahara

Inquiries:

General Manager, General Accounting
Department

Eiichi Nonaka

TEL

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

November 9, 2022
December 6, 2022

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:NoNo

03-6880-3100(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Six months ended September 30, 2022
308,342
15.6
6,661
43.1
7,096
36.2
4,569
43.6
Six months ended September 30, 2021
266,832
28.3
4,654
16.9
5,208
13.7
3,181
3.9
Earnings per share

Diluted earnings per share

Yen
66.52
46.12

Six months ended September 30, 2022
Six months ended September 30, 2021

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
191,259
197,887

As of September 30, 2022
As of March 31, 2022

Equity ratio

Millions of yen
115,363
112,358

%
57.5
54.2

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
14.00
19.00

Yen–

Yen
26.00

Yen
40.00

–

19.00

38.00

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)
Net sales
Full year

Millions of yen
600,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
0.2
13,0007.7
13,500
2.9
8,400
1.1
122.21

1

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

71,000,000 shares As of March 31, 2022

71,000,000 shares

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

2,571,303 shares As of March 31, 2022

2,266,623 shares

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

68,686,762 shares Six months ended September 30, 2021

268,987,013 shares

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

As of September 30, 2022

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

38,26745,80137,81337,173

Securities
Merchandise and finished goods

100
7,387

–
8,216

55
176

86
136

Other
Allowance for doubtful accounts

2,366
(477)

3,317
(477)

Total current assets

93,677

86,26569,654(48,314)70,109(49,352)

Buildings and structures, net

21,34020,756

Machinery, equipment and vehicles
Accumulated depreciation

34,164(27,010)

34,563(27,674)

7,153

6,889

18,8709,037

18,829
9,902

Accumulated depreciation(4,650)(4,952)Other, net

4,3864,949

51,751

51,425Work in process
Raw materials and supplies

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, netLand
Other

Total property, plant and equipment
Intangible assets
Goodwill

1,374

1,852

Customer-related assets
Other

1,182
2,317

1,138
2,939

Total intangible assets

4,874

5,929

Investments and other assets
Investment securities

17,167

17,428Retirement benefit asset
Guarantee deposits

3,930
25,2783,847
25,258

Other
Allowance for doubtful accounts

1,303(95)

1,199
(95)

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

347,58447,638104,210

104,994

197,887

191,259(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade47,61539,521

300
827

300
1,880

2,500
1,701

1,832
1,540

76
0

38
0

Other

13,04012,862

Total current liabilities

66,062

57,976

4,462

2,835

178

193

196

212

211
606

109607

Other

13,812

13,961

Total non-current liabilities

19,467

17,91985,529

75,896

Share capital
Capital surplus

10,127
4,339

10,127
4,336

Retained earnings
Treasury shares

91,563(2,651)

94,350(2,987)

Total shareholders' equity

103,378

105,826

3,853

4,295

Revaluation reserve for landRemeasurements of defined benefit plans

(376)
318

(381)
282

Total accumulated other comprehensive income

3,795

4,196

5,184

5,339

112,358

115,363

197,887

191,259

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
Long-term borrowings
Provision for retirement benefits for directors (and otherofficers)
Provision for special repairs
Retirement benefit liability
Asset retirement obligations

Total liabilities
Net assets
Shareholders' equity

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

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)

Net sales
Net sales of goods

Six months ended

Six months ended

September 30, 2021

September 30, 2022

265,370

306,991

1,461

1,350

266,832

308,342

Cost of goods soldCost of sales of completed construction contracts

241,258
1,290

279,437
1,171

Total cost of sales

242,549

280,609

Gross profit

24,282

27,733

Selling, general and administrative expenses

19,62821,071

Operating profit

4,654

6,661

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

Non-operating income
Interest income

120

133

Dividend income
Light oil delivery tax grant

204
78

244
80

Reversal of allowance for doubtful accounts
Other

3304

–
166

Total non-operating income

711

624

Non-operating expenses
Interest expenses

127

130

Other

2958

Total non-operating expenses

156

188

5,208

7,096

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

10
17

2085

Total extraordinary income

28106

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

107

23

Impairment losses
Loss on valuation of investment securities

1120–

Ordinary profit
Extraordinary income

Loss on sale of shares of subsidiaries and associates

10–

Total extraordinary losses

132

24

Profit before income taxes

5,104

7,179

Income taxes - current
Income taxes - deferred

1,469
162

2,117
129

Total income taxes

1,631

2,247

Profit

3,473

4,931

291

362

3,181

4,569

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

Six months ended

Six months ended

September 30, 2021

September 30, 2022

3,473

4,931

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

300(68)448(35)

Total other comprehensive income

232

412

3,705

5,343

3,327

4,975

378

368

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 endedSeptember 30, 2021

September 30, 2022

5,104

7,179

Depreciation
Amortization of goodwill

2,462
157

2,582
176

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

(2)
(252)

0(161)

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

(34)

(37)

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

(334)
(325)

(70)
(377)

Interest expenses
Loss (gain) on sale and retirement of property, plant and127

130

62

1

10(17)
12(85)–Decrease (increase) in trade receivables
Decrease (increase) in inventories

288(1,438)

8,628(819)Decrease (increase) in other current assets
Increase (decrease) in trade payables

14(2,602)(940)(8,093)

Increase (decrease) in other current liabilities
Other, net(512)
646

(6)
(3)

Subtotal

3,356

8,102

Interest and dividends received
Interest paid

310(147)

366
(144)

Income taxes paid

(2,030)(2,781)

Net cash provided by (used in) operating activities

1,487

5,542

(8)
108(163)
742

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(2,817)269(2,142)62

Purchase of intangible assets
Proceeds from sale of shares of subsidiaries resulting in(663)(1,279)

9–(39)

0(3,140)(2,779)equipment
Impairment losses
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities

Cash flows from investing activities
Purchase of investment securities
Proceeds from sale of investment securities

change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

7(Millions of yen)

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

Six months ended

Six months ended

September 30, 2021

September 30, 202230

–590
(1,115)–(573)

Purchase of treasury shares
Dividends paid to non-controlling interests

(14)
(221)

(351)
(213)

Dividends paid
Purchase of shares of subsidiaries not resulting in change in(965)(1,787)(24)–

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

scope of consolidation
Other, net(274)(291)(1,996)(3,216)

Net increase (decrease) in cash and cash equivalents(3,648)(453)

Cash and cash equivalents at beginning of period

36,46737,996

Cash and cash equivalents at end of period

32,81837,543

Net cash provided by (used in) financing activities

8