CREEK & RIVER : Summary of Consolidated Financial Results for the Three Months Ended May 31, 2021(Based on Japanese GAAP)

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 Three Months Ended May 31, 2021 (Based on Japanese GAAP)

				July 8, 2021
Company name:	CREEK & RIVER Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	4763	URL https://www.cri.co.jp/
Representative:	President and Representative Director	Yukihiro Ikawa
Inquiries:	Director		Jun Kurosaki	TEL [phone]
Scheduled date to file Quarterly Securities Report:	July 13, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended May 31, 2021 (from March 1, 2021 to May 31, 2021)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit	Profit attributable to
					owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen		%
Three months ended May 31, 2021	10,599		11.7		1,230	17.3		1,247		17.3		881		24.1
Three months ended May 31, 2020	9,486		15.2		1,049	33.2		1,062		34.5		709		40.1
	Earnings per share		Diluted earnings per share
			Yen					Yen
Three months ended May 31, 2021			39.52					39.49
Three months ended May 31, 2020			32.53					32.45
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen				%
As of May 31, 2021		18,960					10,905				56.6
As of February 28, 2021		18,087					10,318				56.2
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended February 28, 2021		-			0.00			-			16.00			16.00
Year ending February 28, 2022		-
Year ending February 28, 2022 (Forecast)					0.00			-			17.00			17.00

3. Forecast of consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
19,700	6.8	1,600	9.9	1,600	8.4	1,050		8.6	47.10
August 31, 2021
Full year	40,000	7.2	2,850	16.4	2,850	14.7	1,750		6.2	78.51

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4. Notes

1. Changes in significant subsidiaries during the three months ended May 31, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

(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:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of May 31, 2021	23,009,000	shares	As of February 28, 2021	23,009,000	shares
Number of treasury shares at the end of the period
	As of May 31, 2021	717,667	shares	As of February 28, 2021	717,667	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended May 31, 2021	22,291,333	shares	Three months ended May 31, 2020	21,817,343	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of February 28, 2021	As of May 31, 2021
Assets
Current assets
Cash and deposits	8,315,320	9,188,895
Notes and accounts receivable - trade	5,043,213	5,217,081
Merchandise	5,255	19,656
Finished goods	332	3,527
Work in process	184,548	175,766
Supplies	1,631	2,232
Other	614,336	488,828
Allowance for doubtful accounts	(40,088)	(43,517)
Total current assets	14,124,550	15,052,470
Non-current assets
Property, plant and equipment	691,664	674,624
Intangible assets
Goodwill	159,301	199,106
Software	427,845	433,893
Other	43,502	74,901
Total intangible assets	630,648	707,901
Investments and other assets
Investment securities	742,370	826,551
Leasehold and guarantee deposits	898,765	902,841
Deferred tax assets	422,580	309,117
Other	582,491	585,459
Allowance for doubtful accounts	(5,944)	(98,572)
Total investments and other assets	2,640,263	2,525,395
Total non-current assets	3,962,576	3,907,921
Total assets	18,087,126	18,960,392
Liabilities
Current liabilities
Trade accounts payable	2,230,143	2,224,139
Accrued expenses	808,127	1,016,673
Short-term borrowings	1,008,230	950,367
Current portion of long-term borrowings	195,140	157,140
Income taxes payable	382,724	323,679
Accrued consumption taxes	724,322	681,803
Provision for bonuses	340,753	310,225
Guarantee implementation reserve	19,045	36,887
Other	927,656	1,150,043
Total current liabilities	6,636,145	6,850,959
Non-current liabilities
Long-term borrowings	711,518	737,237
Retirement benefit liability	247,555	246,029
Provision for share-based remuneration	169,761	217,686
Other	3,512	2,978
Total non-current liabilities	1,132,347	1,203,931
Total liabilities		7,768,493	8,054,891

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			(Thousands of yen)
		As of February 28, 2021	As of May 31, 2021
Net assets
Shareholders' equity
Share capital	1,177,194	1,177,194
Capital surplus	2,250,451	2,250,451
Retained earnings	7,136,504	7,665,649
Treasury shares	(476,011)	(476,011)
Total shareholders' equity	10,088,139	10,617,284
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	87,245	79,390
Foreign currency translation adjustment	(13,423)	26,495
Total accumulated other comprehensive income	73,822	105,886
Share acquisition rights	5,750	800
Non-controlling interests	150,921	181,530
Total net assets	10,318,633	10,905,501
Total liabilities and net assets		18,087,126	18,960,392

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Three months ended	Three months ended
		May 31, 2020	May 31, 2021
Net sales	9,486,442	10,599,172
Cost of sales	5,726,291	6,415,852
Gross profit	3,760,150	4,183,320
Selling, general and administrative expenses	2,710,668	2,952,668
Operating profit	1,049,481	1,230,652
Non-operating income
Interest income	618	1,291
Surrender value of insurance policies	1,693	332
Subsidy income	583	8,617
Share of profit of entities accounted for using equity method	9,089	3,847
Miscellaneous income	4,204	2,334
Other	1,020	3,443
Total non-operating income	17,209	19,867
Non-operating expenses
Interest expenses	922	1,511
Foreign exchange losses	110	1
Provision of allowance for doubtful accounts	-	1,873
Other	2,752	49
Total non-operating expenses	3,785	3,436
Ordinary profit	1,062,906	1,247,083
Extraordinary income
Gain on sales of investment securities	-	14,825
Gain on sales of shares of subsidiaries	-	1,000
Gain on reversal of share acquisition rights	-	5,750
Gain on bargain purchase	-	552
Total extraordinary income	-	22,127
Extraordinary losses
Loss on retirement of non-current assets	1,048	48
Loss due to new corona virus infection	15,539	507
Total extraordinary losses	16,587	556
Profit before income taxes	1,046,318	1,268,654
Income taxes - current	263,865	266,965
Income taxes - deferred	73,187	115,386
Total income taxes	337,052	382,351
Profit	709,266	886,302
Profit (loss) attributable to non-controlling interests	(542)	5,300
Profit attributable to owners of parent		709,809	881,002

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