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, 2021
(Based on Japanese GAAP)
October 27, 2021
Nippon Seisen Co.,Ltd.
Company name:
Stock exchange listing: Tokyo
Stock code:
Representative:

5659
URL https://www.n-seisen.co.jp/
President and CEO
Motoshi Shinkai

Inquiries:
General Manager, Accounting DepartmentScheduled date to file Quarterly Securities Report:

Shuichi Nagasawa
November 10, 2021

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 7, 2021
No

Holding of quarterly financial results meeting:

NoTEL

06-6222-5432(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)(1) Consolidated operating results (cumulative)

Six months ended September 30, 2021
Six months ended September 30, 2020
Note: Comprehensive income

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%
21,40839.1
2,383 165.9
2,473 136.7
1,740 137.6
15,391 (10.5)
896
17.9
1,044
31.4
732
31.0

Six months ended September 30, 2021

¥1,637 million [133.4%]

Six months ended September 30, 2020

¥701 million [33.0%]

Earnings per share

Diluted earnings per shareYen
283.73
119.39Six months ended September 30, 2021
Six months ended September 30, 2020

Yen––(2) Consolidated financial position
Total assets
Millions of yen
48,15546,071

As of September 30, 2021
As of March 31, 2021
Reference: Equity

Net assets

Equity ratio

Millions of yen
34,172
32,974As of September 30, 2021

¥33,736 million

As of March 31, 2021

¥32,564 million

%70.1
70.7

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-endYen––Yen
40.00
100.00Yen–Yen70.00

Yen
110.00–100.00

200.00Year ending March 31, 2022 (Forecast)

Total

Note: Revisions to the cash dividend forecasts most recently announced: No
3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
42,000Percentages 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
23.14,200
76.5
4,200
61.4
2,940
61.0
479.36

Note: Revisions to the earnings forecasts most recently announced: No1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(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:

Yes
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, 2021

6,492,293 shares As of March 31, 2021

6,492,293 shares

359,134 shares As of March 31, 2021

359,054 shares

Number of treasury shares at the end of the period
As of September 30, 2021

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

6,133,204 shares Six months ended September 30, 2020

6,133,502 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Explanation of proper use of financial results forecast, and other special matters(Caution concerning forward-looking statements)
The above forecasts of financial results are based on information currently available to the Company and on certain assumptions deemed to bereasonable. However, the Company makes no guarantee that these forecasts will be achieved. Consequently, actual business and other results
may differ substantially due to various factors.

2Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of September 30, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

13,776
8,210

14,631
8,500

Electronically recorded monetary claims - operating
Merchandise and finished goods

537
1,856

864
2,292

Work in process
Raw materials and supplies3,457
1,618

3,631
1,608

Other

174

213

29,631

31,742

4,464

4,921

6,402
1,630

6,386
1,621

Leased assets, net
Construction in progress

10959

24
454

Other, net

599

610

14,067

14,019255

233

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land

Total property, plant and equipment
Intangible assets
Investments and other assets

2,116

2,159

Total non-current assets

16,43916,412

46,071

48,155

5,494
440

6,410
328

700
580

816
603Provision for bonuses for directors (and other officers)
Other

26
1,034

–
977

Total current liabilities

8,277

9,136

Non-current liabilities
Long-term borrowings

194

105

63

50

4,544
0

4,666
–

1724

4,820

4,846

13,097

13,982

Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses

Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Provision for environmental measures
OtherTotal non-current liabilities
Total liabilities

3

(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Net assets
Shareholders' equity
Share capital

5,000

5,000

Capital surplus
Retained earnings

5,442
22,8805,442
24,181

Treasury shares

(849)

(849)

32,473

33,775

25(0)

39(0)

174(109)

13(90)

90(38)

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4409

436

32,974

34,172

46,071

48,155

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

Six months ended

September 30, 2020

September 30, 2021

Net sales
Cost of sales

15,391
12,986

21,40817,424Gross profit

2,404

3,983

Selling, general and administrative expenses

1,507

1,600

896

2,383

Interest income
Dividend income3656Purchase discounts
Compensation income

715

1023

Rental income
Subsidies for employment adjustment

12109

12–

Foreign exchange gains
Reversal of provision for environmental measures

14–

45
0

Other

10168

105

Interest expenses
Sales discounts

282–

Compensation expenses
Loss on retirement of non-current assets

33

74

Other

31

Operating profit
Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses

2016

1,044

2,473

Extraordinary income
Gain on sale of non-current assets–0Total extraordinary income–

05–

5–

Profit before income taxes

1,038

2,473

Income taxes - current
Income taxes - deferred

370
(75)

749
(37)

Total income taxes

294

712

Profit744

1,760

Ordinary profit

Extraordinary losses
Loss on valuation of golf club membership
Total extraordinary losses

Profit attributable to non-controlling interests

1120

Profit attributable to owners of parent

732

1,740

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2020

September 30, 2021
744

1,760

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

90

130

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(102)
50(156)18

Total other comprehensive income

(42)

(123)

701

1,637

699

1,611

226

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, 2020

September 30, 2021

1,038

2,473

Depreciation
Loss on valuation of golf club membership

751
5780
–

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for

205

148

7(13)

30

19

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

(23)

(26)

Increase (decrease) in provision for environmental measures
Interest and dividend income

(0)
(9)

(0)
(12)

Interest expenses
Foreign exchange losses (gains)

2(11)

2(57)

–
3(0)
4

Decrease (increase) in trade receivables
Increase (decrease) in advances received

1,13947(753)23

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

141
(94)

(524)
(40)

(1,018)
(159)

939
(46)

(1)
0(2)
0

directors (and other officers)
Increase (decrease) in provision for bonuses

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

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxesIncrease (decrease) in other current liabilities
Other, net
Subtotal

2,056

2,914

Interest and dividends received
Interest paid

9(2)

11(2)

Income taxes paid

(16)

(635)

2,047

2,288

Payments into time deposits
Proceeds from withdrawal of time deposits(142)
27(244)432

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(706)
0(760)
0

Purchase of intangible assets
Other, net

(19)
(0)

(27)
2Net cash provided by (used in) investing activities

(841)

(597)

Net cash provided by (used in) operating activities
Cash flows from investing activities

Cash flows from financing activities
Net increase (decrease) in short-term borrowings–(99)

Repayments of long-term borrowings
Repayments of lease obligations

(89)
(1)

(89)
(3)

Net decrease (increase) in treasury shares
Dividends paid

(0)
(275)

(0)
(429)

Net cash provided by (used in) financing activities

(366)

(620)

Effect of exchange rate change on cash and cash equivalents

(27)

(2)

Net increase (decrease) in cash and cash equivalents

812

1,067

Cash and cash equivalents at beginning of period

11,766

13,299Cash and cash equivalents at end of period

12,57814,366

7