Consolidated Financial Results
for the Nine Months Ended December 31, 2021
[Japanese GAAP]
February 8, 2022
Company name: SEIKITOKYU KOGYO CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 1898
URL: https://www.seikitokyu.co.jp
Representative: Yoshikazu Taira, Representative Director, President
Contact: Takanori Kawano, General Manager, Finance Department
Phone: +81-3-6672-9421
Scheduled date of filing quarterly securities report: February 9, 2022
Scheduled date of commencing dividend payments: –Availability of supplementary briefing materials on quarterly financial results: Unavailable
Schedule of quarterly financial results briefing session: Not scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 1, 2021 to December
31, 2021)(1) Consolidated Operating Results (Cumulative)(% indicates year-on-year changes)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Nine months ended
Million yen%
Million yen%
Million yen%
Million yen%
December 31, 2021
61,3423.5
2,870 (38.0)
2,853 (37.1)
2,039 (41.2)
December 31, 2020
59,292
16.4
4,631
45.3
4,538
42.2
3,470 (15.7)(Note) Comprehensive income: Nine months ended December 31, 2021: ¥2,162 million [(38.6)%]
Nine months ended December 31, 2020: ¥3,524 million [(16.7)%]
Basic earnings
Diluted earnings
per shareper share
Nine months ended
Yen
Yen
December 31, 2021
51.84–
December 31, 2020
86.05–
(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

73,186
As of December 31, 2021
39,28379,409As of March 31, 2021
40,790(Reference) Equity: As of December 31, 2021: ¥39,283 million
As of March 31, 2021: ¥40,790 million

53.7
51.4

1,028.84
1,010.99

Year-end

Total

2. Dividends
1stquarter-end
Yen

Annual dividends
2nd
3rd
quarter-end
quarter-end
Yen

Fiscal year ended March 31, 2021
–0.00
Fiscal year ending March 31, 2022–
0.00
Fiscal year ending March 31, 2022
(Forecast)(Note) Revision to the forecast for dividends announced most recently: NoYen

Yen

Yen––43.00

43.00

30.00

30.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March31, 2022)(% indicates year-on-year changes)
Profit attributable to
Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Million yen%

Million yen%

Million yen%

Full year
86,800 (3.6)
4,600 (45.7)
4,500 (46.4)(Note) Revision to the financial results forecast announced most recently: Yes

Million yen

3,300%(36.3)

Yen

86.43* Notes:(1) Changes in significant subsidiaries during the period under review(Changes in specified subsidiaries resulting in changes in scope of consolidation): No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(Note) For details, please see “Quarterly Consolidated Financial Statements and Primary Notes, (3) Notes to Quarterly
Consolidated Financial Statements, (Changes in accounting policies)” on page 5 of the attachment.

(4) Number of shares issued (common shares)
1) Total number of shares issued at the end of the period (including treasury shares):December 31, 2021:
40,414,407 shares
March 31, 2021:
40,414,407 shares2) Total number of treasury shares at the end of the period:
December 31, 2021:
2,232,386 shares
March 31, 2021:
67,641 shares
3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year):Nine months ended December 31, 2021:
39,341,317 shares
Nine months ended December 31, 2020:
40,326,002 shares* These consolidated financial results are outside the scope of quarterly review by certified public accountants or audit
corporations.
* Explanation of the proper use of financial results forecasts and other notes
Financial results forecasts are based on information available and certain assumptions deemed reasonable by the Company atthe time of preparation of this document, which may contain various uncertain factors. Thus, actual results and outcomes may
differ from these forecasts.

(Reference) Non-Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1,2021 to March 31, 2022)(% indicates year-on-year changes)
Basic earnings
Net sales
Ordinary profit
Profitper share
Million yen%

Million yen%

Million yen

Full year
83,000(2.0)
4,200 (47.2)
3,100(Note) Revision to the financial results forecast announced most recently: Yes%(35.2)

Yen

81.19

* Explanation of the proper use of financial results forecast and other notes
Financial results forecasts are based on information available and certain assumptions deemed reasonable by theCompany at the time of preparation of this document, which may contain various uncertain factors. Thus, actual
results and outcomes may differ from these forecasts.

Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts and otherCosts on construction contracts in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, vehicles, tools, furniture andfixtures
LandConstruction in progress
Accumulated depreciation
Total property, plant and equipment
Intangible assets
Investments and other assets
Other
Total investments and other assets
Total non-current assets
Total assets

1

As of December 31, 2021

14,035

14,98634,15028,372

2,565
386
2,683
–
53,821

477
325
3,697
(9)
47,848

9,220

9,418

20,681

21,156

14,327245(20,820)
23,655263

14,314707(21,764)
23,831
253

1,669
1,669
25,58879,4091,252
1,252
25,33773,186

(Million yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts and other
Short-term borrowings
Income taxes payable
Advances received on construction contracts inprogress
Provision for warranties for completed
construction
Provision for loss on construction contracts
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liabilityOther
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

2

As of December 31, 2021

21,767

20,604

7
1,147

104
2

2,070

1,255

15

16

7
1,645
4,216
30,87715744
3,745
26,488

5,000
2,597
144
7,742
38,619

5,000
2,289
125
7,415
33,9032,000
519
38,767(40)
41,2462,000
521
38,982(1,888)39,61521

15(15)(461)(455)
40,79079,409

(8)
(340)
(332)
39,28373,186

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Nine Months Ended December 31(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Dividend income
Rental income
Operating fee
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Guarantee commission
Syndicated loan origination fee
Miscellaneous expenses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Compensation income
Reversal of provision for retirement benefits
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Expenses on dismantlement of non-current assets
Loss on sale of shares of subsidiaries andassociates
Impairment losses
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the nine months
ended December 31, 2020
59,29250,464
8,827
4,196
4,631

For the nine months
ended December 31, 2021
61,342
54,241
7,101
4,230
2,870

4
18
11
36
70

4
14–
30
48

2
29
96
34
163
4,538

28
20
–
17
65
2,853

88
0–
–
88

20–
77
0
98

1
11–

0
6
30

–

4

576
590
4,036
566
3,470
–
3,470

–
41
2,910
871
2,039
–
2,039

3Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended December 31(Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests

For the nine months
ended December 31, 2020
3,470

For the nine months
ended December 31, 2021
2,039

5(5)

(122)7171

121

54
3,524

123
2,162

3,524

2,162––4

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in the case of significant changes in shareholders’ equity)
Not applicable.
(Changes in accounting policies)(Application of the “Accounting Standard for Revenue Recognition” and relevant implementation guidance)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020; hereinafter, the “Revenue Recognition Standard”) and relevant implementation guidance
effective from the beginning of the fiscal year ending March 31, 2022. Accordingly, the Company recognizes
revenue as the amount expected to be received in exchange for promised goods or services at the time when thecontrol of the goods or services is transferred to the customer. As a result of this application, the Company has
made the following primary change of revenue recognition.
Revenue recognition for construction contracts
The Company previously applied the percentage of completion method for the construction work whose
outcome from the completed portion was deemed definite, and the completed contract method for otherconstruction work whose progress of completion was unable to be measured. However, the Company haschanged to recognize revenue over a certain period of time as it satisfies its performance obligation. The
progress of completion toward satisfaction of performance obligations is measured based on the proportion of
the cost incurred as of the end of each fiscal year to the estimated total cost of the construction work. For
construction contracts whose progress of completion toward satisfaction of performance obligations cannot beestimated reasonably, the Company recognizes revenue by the cost recovery method when it is probable thatthe cost incurred will be recovered.
The application of the Revenue Recognition Standard, etc. is in accordance with the transitional treatment
stipulated in the proviso of Paragraph 84 of the Revenue Recognition Standard. The cumulative effect ofretrospectively applying the new accounting policy to periods prior to the beginning of the fiscal year ending
March 31, 2022 has been added to or deducted from the retained earnings at the beginning of the fiscal year
ending March 31, 2022, and the new accounting policy is applied from the said balance.
As a result, net sales and cost of sales increased by ¥3,442 million and ¥3,580 million, respectively, for the ninemonths ended December 31, 2021. There were minimal impacts on operating profit, ordinary profit, profit
before income taxes and the beginning balance of retained earnings for the fiscal year ending March 31, 2022.
In accordance with the transitional treatment stipulated in Paragraph 28-15 of the “Accounting Standard for
Quarterly Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), the Company omitted information
on disaggregation of revenue from contracts with customers for the nine months ended December 31, 2020.

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(Application of the “Accounting Standard for Fair Value Measurement” and relevant implementation guidance)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,July 4, 2019; hereinafter, the “Fair Value Measurement Standard”) and relevant implementation guidance
effective from the beginning of the fiscal year ending March 31, 2022. In accordance with the transitional
treatment stipulated in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the Company applies
the new accounting policy set forth by the Fair Value Measurement Standard, etc. over future periods. The
application of the new accounting policy had no impact on the quarterly consolidated financial statements.
(Additional information)(Application of the tax effect accounting for the transition from the consolidated tax return filing system to thegroup tax sharing system)
With regard to the transition to the group tax sharing system established based on “Act for Partial Amendmentof the Income Tax Act, etc.” (Act No. 8, 2020) and to the items reconsidered on the non-consolidated tax return
filing system in accordance with this transition to the group tax sharing system, the Company and its certain
consolidated subsidiaries in Japan calculate the amounts of deferred tax assets and deferred tax liabilities basedon the provisions of the Income Tax Act before the amendment, without applying the provisions of Paragraph
44 of the “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, February 16, 2018),
pursuant to Paragraph 3 of the “Practical Solution on the Treatment of Tax Effect Accounting for the Transition
from the Consolidated Tax Return Filing System to the Group Tax Sharing System” (Practical Issues Task
Force No. 39, March 31, 2020).
(Accounting estimates as to the impact of COVID-19)
There are no significant changes in the assumptions including those about the future impact and period of
convergence of the COVID-19 pandemic stated in “(Additional information)” in the Annual Securities Report(Yukashoken Houkokusho) for the fiscal year ended March 31, 2021.

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