Hazama Ando : Consolidated Financial Results for the Nine Months Ended December 31,2021

Disclaimer: This document is a partial English translation of the Japanese original which is filed with the Tokyo Stock Exchange and is only for reference purposes. In case of any discrepancy between this translation and the Japanese original, the latter shall prevail.

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

[Japanese GAAP]

February 8,2022

Company name: HAZAMA ANDO CORPORATION

Stock exchange listing: Tokyo Stock Exchange

Code number: 1719

URL: https://www.ad-hzm.co.jp/

Representative: Masato Fukutomi, Representative Director and President

Contact: Toshihisa Kino, Corporate Communication Department General Manager

Phone: [phone]

Scheduled date of filing quarterly securities report: February 8,2022

Scheduled date of commencing dividend payments:－

Availability of supplementary briefing material on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

(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		(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
	Nine months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	December 31, 2021	245,145	(6.8)	18,981	(4.0)	18,674	2.0	13,070	4.5
	December 31, 2020	263,051	(2.3)	19,762	16.9	18,314	11.6	12,507	13.3

(Note)Comprehensive income: Nine months ended December 31, 2021: ¥12,342 million [(9.3)%] Nine months ended December 31, 2020: ¥13,614 million [14.8%]

	Basic earnings	Diluted earnings
	per share	per share
Nine months ended	Yen	Yen
December 31, 2021	72.06	72.05
December 31, 2020	64.92	64.91

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of December 31, 2021	274,829	143,409	51.9
As of March 31, 2021	339,387	146,676	43.0

(Reference) Equity: As of December 31, 2021: ¥142,673 million As of March 31, 2021: ¥145,915 million

2. Dividends

					Annual dividends
		1st		2nd			3rd		Year-end		Total
		quarter-end		quarter-end			quarter-end
		Yen		Yen			Yen		Yen		Yen
Fiscal year ended March 31, 2021		－	15.00			－		15.00	30.00
Fiscal year ending March 31, 2022		－	20.00			－
Fiscal year ending March 31, 2022									20.00	40.00
(Forecast)
(Note) Revision to the forecast for	dividends announced most recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable	Basic earnings
		to owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	339,000	(3.7)	24,900	(9.0)	23,400	(9.6)	15,800	(8.1)	87.78

(Note) Revision to the financial results forecast announced most recently: Yes

* Notes:

1. Changes in significant subsidiaries during the nine months ended December 31, 2021 (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: Yes
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 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: No
   4. Retrospective restatement: No
5. Total number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2021: 181,021,197 shares

March 31, 2021: 200,343,397 shares

1. Total number of treasury shares at the end of the period: December 31, 2021: 5,190,207 shares
   March 31, 2021: 13,818,561 shares
2. Average number of shares during the period:

Nine months ended December 31, 2021: 181,394,873 shares

Nine months ended December 31, 2020: 192,654,680 shares

The Company has adopted a performance-linked stock remuneration plan using a trust. The Company's shares held by the trust (639,519 shares) are included in the total number of treasury shares at the end of the period and the average number of shares during the period is calculated and stated taking into account shares held by the trust.

* Explanation of the proper use of financial results forecast and other notes

1. The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and certain assumptions deemed reasonable. Actual results may differ significantly due to a wide range of factors.

１. Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

				(Million yen)
		As of March 31, 2021	As of December 31, 2021
Assets
Current assets
Cash and deposits		129,317		41,168
Notes receivable, accounts receivable from	121,461	139,654
completed construction contracts and other
Costs on construction contracts in progress		5,593		5,014
Other inventories	8,823	8,577
Other		9,023		14,297
Allowance for doubtful accounts	(12)	(14)
Total current assets		274,206		208,697
Non-current assets
Property, plant and equipment
Land	15,799	15,811
Other, net		13,755		13,491
Total property, plant and equipment	29,555	29,303
Intangible assets		1,505		1,477
Investments and other assets
Investment securities		21,697		20,857
Deferred tax assets	7,819	8,082
Other		4,605		6,412
Allowance for doubtful accounts	(1)	(1)
Total investments and other assets		34,120		35,350
Total non-current assets	65,181	66,131
Total assets		339,387		274,829

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							(Million yen)
				As of March 31, 2021	As of December 31, 2021
Liabilities
Current liabilities
Notes payable, accounts	payable for	construction			70,624			41,108
contracts and other
Short-term borrowings			16,312	17,107
Current portion of bonds					291			291
Advances received on	construction	contracts in	27,385	16,705
progress
Provision for warranties for completed construction			2,129			1,533
Provision for bonuses			2,595	651
Provision for loss on construction contracts			1,248			663
Provision for loss on damage due to fire		5,996	4,509
Other					47,176			33,363
Total current liabilities			173,761	115,935
Non-current liabilities
Bonds payable			400	254
Long-term borrowings					8,271			9,541
Deferred tax liabilities			37	35
Retirement benefit liability				8,857			3,933
Provision for environmental measures		139	138
Provision for management board incentive plan trust			116			185
Other			1,127	1,394
Total non-current liabilities				18,949			15,484
Total liabilities			192,710	131,419
Net assets
Shareholders' equity
Share capital					17,006			17,006
Capital surplus			19,919	17,058
Retained earnings					115,086			109,525
Treasury shares			(10,187)	(4,299)
Total shareholders' equity					141,824			139,290
Accumulated other comprehensive income
Valuation difference on available-for-sale securities			3,754			3,010
Foreign currency translation adjustment		55	54
Remeasurements of defined benefit plans			281			317
Total accumulated other comprehensive income	4,091	3,382
Share acquisition rights					3			0
Non-controlling interests			758	736
Total net assets					146,676			143,409
Total liabilities and net assets				339,387	274,829

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1. Quarterly Consolidated Statements of Income and Comprehensive Income (Quarterly Consolidated Statements of Income)
   (Nine Months Ended December 31)

				(Million yen)
		For the nine months	For the nine months
		ended December 31, 2020	ended December 31, 2021
Net sales
Net sales of completed construction contracts	249,767	227,195
Sales in other businesses		13,283		17,949
Total net sales	263,051	245,145
Cost of sales
Cost of sales of completed construction contracts	217,100	195,946
Cost of sales in other businesses		10,767		15,165
Total cost of sales	227,867	211,112
Gross profit
Gross profit on completed construction contracts	32,667	31,248
Gross profit - other business		2,516		2,784
Total gross profit	35,183	34,032
Selling, general and administrative expenses		15,421		15,051
Operating profit	19,762	18,981
Non-operating income
Dividend income	154	140
Late charges income		－		166
Gain on extinguishment of debt	23	147
Other		106		123
Total non-operating income	284	578
Non-operating expenses
Interest expenses	250	236
Foreign exchange losses		153		141
Other	1,329	506
Total non-operating expenses		1,732		884
Ordinary profit	18,314	18,674
Extraordinary income
Subsidy income	354		－
Gain on sales of non-current assets		10		－
Gain on sales of investment securities	160	221
Total extraordinary income		525		221
Extraordinary losses

Loss on damage due to fire

Loss on tax purpose reduction entry of non-current assets

Loss on sales of non-current assets Loss on retirement of non-current assets Loss on valuation of investment securities Loss on litigation

21	20
354	－
－	18
15	12
26	24
66	18

Total extraordinary losses		483	94
Profit before income taxes	18,356	18,801
Income taxes		5,873	5,729
Profit	12,483	13,072
Profit (loss) attributable to non-controlling interests		(24)	1
Profit attributable to owners of parent		12,507	13,070

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