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, 2023
(Based on Japanese GAAP)
November 14, 2023
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:

General Manager, General Accounting
Department

Eiichi Nonaka

TEL

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

November 14, 2023
December 5, 2023

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, 2023 (from April 1, 2023 to September 30, 2023)(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, 2023
318,066
3.2
8,666
30.1
9,121
28.5
5,640
23.4
Six months ended September 30, 2022
308,342
15.6
6,661
43.1
7,096
36.2
4,569
43.6
Earnings per share

Diluted earnings per share

Yen
85.04
66.52

Six months ended September 30, 2023
Six months ended September 30, 2022

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
207,652
201,244

As of September 30, 2023
As of March 31, 2023

Equity ratio

Millions of yen
120,270
117,424

%
55.1
55.5

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

2nd quarter-end

3rd quarter-end

Fiscal year-end

Year ended March 31, 2023

Yen–

Yen
19.00

Yen–

Yen
36.00

Yen
55.00

Year ending March 31, 2024

–

30.00
–

30.00

60.00

Year ending March 31, 2024 (Forecast)Total

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)
149.331

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(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, 2023

68,000,000 shares As of March 31, 2023

68,000,000 shares

Number of treasury shares at the end of the period
As of September 30, 2023

2,431,528 shares As of March 31, 2023

1,034,703 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

66,318,999 shares Six months ended September 30, 2022

268,686,762 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade, and contract assets

47,017
43,144

46,69943,663

Securities
Merchandise and finished goods

–
7,542

100
8,720

Work in process
Raw materials and supplies

85
146

120
137

Other
Allowance for doubtful accounts

919
(475)

1,993
(478)

98,380100,958

69,516(49,704)

70,831(50,478)

Buildings and structures, net

19,812

20,352

Machinery, equipment and vehicles
Accumulated depreciation

34,671(27,695)

36,655(28,299)

6,976

8,355

18,42011,512

18,792
10,612

Accumulated depreciation(5,199)(5,498)Other, net

6,312

5,114

51,522

52,614

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

1,683

1,808

Customer-related intangible assets
Other

1,093
3,419

1,048
3,923

Total intangible assets

6,197

6,780

Investments and other assets
Investment securities

17,14019,194Retirement benefit asset
Guarantee deposits

1,991
24,8652,226
24,858

Other
Allowance for doubtful accounts

1,242
(96)

1,113
(95)

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

3

45,14347,297

102,863

106,693201,244

207,652

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade44,90847,235

Short-term borrowings
Current portion of long-term borrowings

300
2,346

300
1,443

Income taxes payable
Provision for bonuses

3,530
2,041

2,533
1,825

89
0

39
0

Other

14,234

17,913

Total current liabilities

67,45371,291

2,115

1,392

208

179

217

228

117
609

116
611

Other

13,09813,560Total non-current liabilities

16,366

16,08983,81987,381

Share capital
Capital surplus

10,127
2,531

10,1272,533

Retained earnings
Treasury shares

97,862(1,280)101,092(3,477)

Total shareholders' equity

109,241

110,274

4,338

5,830

Revaluation reserve for landRemeasurements of defined benefit plans(612)(1,228)(613)(1,090)Total accumulated other comprehensive income

2,496

4,127

5,686

5,868

117,424

120,270

201,244

207,652

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, 2022

September 30, 2023

306,991

316,965

1,350

1,101

308,342

318,066

Cost of goods soldCost of sales of completed construction contracts

279,437
1,171

286,398
952

Total cost of sales

280,609287,350

Gross profit

27,73330,716

Selling, general and administrative expenses

21,071

22,049Operating profit

6,661

8,666

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

Non-operating income
Interest income

2126

Dividend income
Purchase discounts

244
112

254
110

Light oil delivery tax grantReversal of allowance for doubtful accounts

80
–

82
0

Other

166

134

Total non-operating income

624

609

Interest expenses
Sales discounts

47
83

4587

Other

58

22

Non-operating expenses

Total non-operating expenses

188

154

7,096

9,121

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

2085

38
–

Total extraordinary income

106

38

23137

Ordinary profit
Extraordinary income

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

04

Total extraordinary losses

24142

Profit before income taxes

7,179

9,017

Income taxes - current
Income taxes - deferred

2,117
129

2,787
183

Total income taxes

2,247

2,970

Profit

4,931

6,046

362

406

4,569

5,640

Profit attributable to non-controlling interests
Profit attributable to owners of parent5

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2022

September 30, 2023

4,9316,046

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

448
(35)

1,484
138

Total other comprehensive income

412

1,623

5,343

7,670

4,975

7,270

368

399

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 ended

September 30, 2022

September 30, 2023

7,179

9,017

Depreciation
Amortization of goodwill

2,582
176

2,671
207

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses0(161)

1(215)

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

(37)

(50)

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

(70)
(377)

(35)
(392)

Interest expenses
Loss (gain) on sale and retirement of property, plant and130

132

192

04

Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables

(85)
8,628

–(519)

Decrease (increase) in inventories
Decrease (increase) in other current assets

(819)
(940)

(1,204)(1,073)

Increase (decrease) in trade payables
Increase (decrease) in other current liabilities(8,093)
(6)

2,327
3,563

Other, net

(3)

33

Subtotal

8,102

14,560366

373Interest paid
Income taxes paid

(144)
(2,781)(146)(3,748)Net cash provided by (used in) operating activities

5,542

11,038

(163)

(312)

Proceeds from sale of investment securities
Purchase of property, plant and equipment742(2,142)–(3,412)

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

62(1,279)

206
(988)

0(88)

(2,779)(4,595)

(573)
(351)

(1,626)(2,208)(213)(1,787)(217)(2,410)

(291)

(297)

equipment
Impairment losses

Interest and dividends received

Cash flows from investing activities
Purchase of investment securities

Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term borrowings
Purchase of treasury sharesDividends paid to non-controlling interests
Dividends paid
Other, net(3,216)(6,760)Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities

(453)

(318)

Cash and cash equivalents at beginning of period

37,996

46,747

Cash and cash equivalents at end of period

37,543

46,4297