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 11, 2023
Company name:

SAN-AI OBBLI CO., LTD.

Stock exchange listing: Tokyo
Stock code:
8097
Representative:
Inquiries:

URL

https://www.san-ai-obbli.com/

Representative Director, President
General Manager, General Accounting

Department
Scheduled date of ordinary general meeting of shareholders:

Hiroshi Hayata
Eiichi Nonaka

TEL

03-6880-3100

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:

Yes
Yes

(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
Net salesYear ended March 31, 2023
Year ended March 31, 2022

Operating profit

Millions of yen
647,833
598,731

%
8.2
26.3

Millions of yen
15,211
12,067

Earnings per share

Diluted earnings per
share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
10.0
8.0
2.3
–
8.0
6.8
2.0

Yen
160.20120.66

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

%
26.1
40.4

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
16,03822.2
10,901
31.2
13,120
31.2
8,308
17.8

(2) Consolidated financial position
Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
201,244
197,887

Millions of yen
117,424
112,358

Cash flows fromoperating activities
Millions of yen
18,921
10,548Cash flows frominvesting activities
Millions of yen(3,252)(3,297)

Net assets per share
%
55.5
54.2

Yen
1,668.60
1,559.26(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(6,918)46,747(5,721)
37,996

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

%

%

–
–

14.00
19.00

–
–

26.00
36.00

40.00
55.00

2,752
3,710

33.2
34.3

2.6
3.4

–

30.00

–

30.00

60.00

1

40.2

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

Millions of yen
660,000

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
1.9
15,000(1.4)
16,000(0.2)
10,000(8.3)
149.33

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:

No
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

68,000,000 shares As of March 31, 2022

71,000,000 shares

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

1,034,703 shares As of March 31, 2022

2,266,623 shares

68,051,696 shares Year ended March 31, 2022

68,860,204 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

38,26745,80147,017
43,144

Securities
Merchandise and finished goods

100
7,387

–
7,542

55
176

85
146

Other
Allowance for doubtful accounts

2,366
(477)

919
(475)

Total current assets

93,677

98,38069,654(48,314)69,516(49,704)

Buildings and structures, net

21,34019,812

Machinery, equipment and vehicles
Accumulated depreciation

34,164(27,010)

34,671(27,695)

7,153

6,976

18,8703,488

18,4203,779

Accumulated depreciation(1,442)(1,737)

Leased assets, net

2,046

2,042

Construction in progress

1,336

3,371

Other
Accumulated depreciation

4,212(3,208)4,361(3,462)

1,003

898

51,751

51,522

Goodwill
Customer-related intangible assets

1,374
1,182

1,683
1,093

Software in progress
Other

1,038
1,278

2,186
1,232

Total intangible assets

4,874

6,197

Investments and other assets
Investment securities

Work in process
Raw materials and supplies

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

Machinery, equipment and vehicles, net
Land
Leased assets

Other, net
Total property, plant and equipment
Intangible assets

17,167

17,140Long-term loans receivable
Deferred tax assets

34
729

21
606

Retirement benefit asset
Guarantee deposits

3,930
25,278

1,991
24,865

539
(95)

613
(96)

Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

347,58445,143

104,210

102,863

197,887

201,244(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade47,61544,908

300
827

300
2,346

Lease liabilities
Income taxes payable

548
2,500

567
3,530

Provision for bonuses
Provision for bonuses for directors (and other officers)

1,701
76

2,041
89

Provision for warranties for completed construction
Other

012,492

0
13,667

Total current liabilities

66,06267,453

Non-current liabilities
Long-term borrowings

4,462

2,115

Lease liabilities
Deferred tax liabilities

1,706
4,116

1,687
3,553

799

694

178

208

196

217

211
606

117
609

Short-term borrowings
Current portion of long-term borrowings

Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and otherofficers)
Provision for special repairs
Retirement benefit liability
Asset retirement obligations
Other

7,190

7,162

Total non-current liabilities

19,467

16,36685,52983,819

Share capital
Capital surplus

10,127
4,339

10,1272,531

Retained earnings
Treasury shares

91,563(2,651)

97,862(1,280)Total shareholders' equity

103,378

109,241

Total liabilities
Net assets
Shareholders' equity

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

3,853

4,338

Revaluation reserve for landRemeasurements of defined benefit plans

(376)
318

(612)
(1,228)

Total accumulated other comprehensive income

3,795

2,496

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

4

5,184

5,686

112,358

117,424

197,887

201,244

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

Net sales
Net sales of goods
Net sales of completed construction contracts

595,453
3,278

644,346
3,486

Total net sales

598,731647,833

Cost of sales
Cost of goods sold543,238

586,347

Cost of sales of completed construction contracts

2,900

3,011

546,138

589,359

Gross profit

52,59258,474

Selling, general and administrative expenses

40,52543,263Operating profit

12,067

15,211

Interest income
Dividend income

44
432

45
439

Purchase discounts
Light oil delivery tax grant

213
149

221
153

Subsidies for employment adjustment
Subsidy income

92
39

7
–

Reversal of allowance for doubtful accounts
Other

3
418

–
318

1,392

1,186

263

264

76

94

Total cost of sales

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses

340

358

13,12016,038Gain on sale of non-current assets
Gain on sale of investment securities

196
23

604
535

Total extraordinary income

219

1,139

272

219

Impairment losses
Loss on sale of investment securities

59
185

166
4

Loss on valuation of investment securities
Loss on sale of shares of subsidiaries and associates

11
10

–
–

Total extraordinary losses

539

390

Profit before income taxes

12,80016,787

Income taxes - current

3,854

5,384

Ordinary profit
Extraordinary income

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

Income taxes - deferred

63

(167)

Total income taxes

3,917

5,216

Profit8,882

11,571

573

669

8,308

10,901

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

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
8,882

11,571

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

(568)
(284)

530
(1,547)

Total other comprehensive income(852)(1,016)

8,029

10,554

7,470

9,839

558

714

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

10,127Retained earnings

4,286

84,698Cumulative effects of changes inaccounting policies
Restated balance

Total shareholders'equityTreasury shares(2,287)465
10,127

4,286

96,824465

85,163(2,287)

97,289Changes during period
Dividends of surplus

(965)

(965)

MIddle dividends from surplus

(965)

(965)

22

22

8,308

8,308

Reversal of revaluation reserve for
land
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares

2

Purchase of shares of consolidated
subsidiaries

49

(374)

(374)

10

13
49

Sale of shares of consolidated
subsidiaries–

Net changes in items other thanshareholders' equity–

Total changes during period
Balance at end of period

–

52

6,399

(363)

6,088

10,127

4,339

91,563(2,651)

103,378

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Revaluation
reserve for landRemeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

4,407

(353)

602

4,655

Cumulative effects of changes inaccounting policies
Restated balance

Non-controllinginterests

Total net assets

4,987

106,468

–
4,407

(353)

602

4,655

465
4,987

106,933

Changes during period
Dividends of surplus

–

(965)

MIddle dividends from surplus

–

(965)

(22)

–

Profit attributable to owners ofparent–8,308

Purchase of treasury shares

–

(374)

Disposal of treasury shares–

13

Purchase of shares of consolidated
subsidiaries

–

(109)

(60)

Sale of shares of consolidated
subsidiaries

–

(30)

(30)

(284)

(838)

336

(501)

Reversal of revaluation reserve forland

Net changes in items other thanshareholders' equity

(22)

(553)

Total changes during period

(553)

(22)

(284)

(860)

196

5,424

Balance at end of period

3,853

(376)

318

3,795

5,184

112,358

7

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

Capital surplus

10,127Retained earnings

4,339

Total shareholders'equityTreasury shares

91,563(2,651)

103,378

Changes during period
Dividends of surplus(1,787)(1,787)

MIddle dividends from surplus(1,300)(1,300)236

236

10,901

10,901

Reversal of revaluation reserve for
land
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares(2)

Cancellation of treasury shares(1,804)(1,751)(2,200)(2,200)

14

12

3,556

–

Net changes in items other thanshareholders' equity–

Total changes during period
Balance at end of period–(1,807)

6,299

1,370

5,863

10,127

2,531

97,862(1,280)109,241

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Revaluation
reserve for landRemeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

3,853

(376)

318

3,795

Non-controllinginterests

Total net assets

5,184

112,358

Changes during period
Dividends of surplus–(1,787)

MIddle dividends from surplus–(1,300)(236)–

Profit attributable to owners ofparent–10,901

Purchase of treasury shares–(2,200)

Disposal of treasury shares–

12

Cancellation of treasury shares––

Reversal of revaluation reserve forland

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

(236)

485

(1,547)(1,061)

501

(560)

485

(236)

(1,547)(1,298)

501

5,066

4,338

(612)

(1,228)

2,496

5,686

117,4248

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
12,80016,787

5,120
312

5,247
382

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

33
0

(1)
339

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

6

13

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

(757)
(689)

(387)
(706)

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

263

264

Depreciation
Amortization of goodwill

equipment
Impairment losses

(3)

(411)

59

166

Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities

161
11

(530)
–

(8,725)(1,778)

2,657
(155)

(540)

1,459

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

(7)

11

4,985

(2,706)

Increase (decrease) in accrued liabilities
Increase (decrease) in other current liabilities

343
834

4
402

Other, net

731

65

Subtotal

13,161

22,903

Interest and dividends received

685

705

Interest paid
Income taxes paid

(273)
(3,025)(264)(4,423)

Net cash provided by (used in) operating activities

10,54818,921

Cash flows from investing activities
Payments into time deposits

(390)

(390)

Proceeds from withdrawal of time deposits
Purchase of investment securities

390
(11)

390
(166)

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

2,077(4,337)

1,663(4,027)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

579(1,596)

1,208(2,295)

Proceeds from sale of shares of subsidiaries resulting inchange in scope of consolidation

9–

Loan advances
Proceeds from collection of loans receivable

(7)
30

(13)
25

Other, net

(40)

352

(3,297)(3,252)

Net cash provided by (used in) investing activities

9

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid to non-controlling interests
Dividends paid
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Other, net

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
30

–

590
(3,193)

–
(827)

(374)
(221)

(2,200)(213)(1,931)(3,087)

(60)

–

(559)

(589)

(5,721)(6,918)Net increase (decrease) in cash and cash equivalents

1,529

8,750

Cash and cash equivalents at beginning of period

36,46737,996

Cash and cash equivalents at end of period

37,996

46,747

Net cash provided by (used in) financing activities

10