Hazama Ando : Consolidated Financial Results for the Three Months Ended June 30, 2022

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 Three Months Ended June 30, 2022

[Japanese GAAP]

August 9, 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: August 9, 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 Three Months Ended June 30, 2022 (April 1, 2022 to June 30, 2022)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
June 30, 2022	72,444	(1.7)	1,908	(61.6)	2,274	(49.9)	3,245	8.3
June 30, 2021	73,728	(10.3)	4,966	(5.5)	4,542	3.8	2,995	3.6

(Note) Comprehensive income: Three months ended June 30, 2022: ¥5,094 million [ 48.8%] Three months ended June 30, 2021: ¥3,424 million [(7.5)%]

	Basic earnings	Diluted earnings
	per share	per share
Three months ended	Yen	Yen
June 30, 2022	19.48	－
June 30, 2021	16.23	16.23

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of June 30, 2022	285,397	140,267	48.9
As of March 31, 2022	295,332	141,682	47.7

(Reference) Equity: As of June 30, 2022: ¥139,454 million As of March 31, 2022: ¥140,921 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, 2022

-

20.00

-

20.00

40.00

Fiscal year ending March 31, 2023

-

Fiscal year ending March 31, 2023

20.00

-

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, 2023 (April 1, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
First half	162,000	1.9	8,200	(34.1)	7,600	(36.7)	4,700	(42.0)	28.32
Full year	377,000	10.8	24,000	(9.8)	23,100	(10.6)	15,600	(11.7)	94.20

(Note) Revision to the financial results forecast announced most recently: No

* Notes:

1. Changes in significant subsidiaries during the three months ended June 30, 2022 (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):

June 30, 2022: 181,021,197 shares

March 31, 2022: 181,021,197 shares

1. Total number of treasury shares at the end of the period: June 30, 2022: 15,748,711 shares
   March 31, 2022: 12,050,920 shares
2. Average number of shares during the period:

Three months ended June 30, 2022: 166,613,377 shares

Three months ended June 30, 2021: 184,585,857 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, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits		66,080		59,334
Notes receivable, accounts receivable from	140,431	129,672
completed construction contracts and other
Costs on construction contracts in progress		4,075		4,803
Other inventories	7,930	8,163
Other		9,567		14,218
Allowance for doubtful accounts	(14)	(13)
Total current assets		228,070		216,178
Non-current assets
Property, plant and equipment
Land	15,852	15,759
Other, net		14,334		14,470
Total property, plant and equipment	30,186	30,230
Intangible assets		1,542		1,537
Investments and other assets
Investment securities		20,960		22,698
Deferred tax assets	7,091	6,605
Other		7,482		8,621
Allowance for doubtful accounts	(1)	(473)
Total investments and other assets		35,532		37,451
Total non-current assets	67,262	69,218
Total assets		295,332		285,397

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(Million yen)

As of March 31, 2022

As of June 30, 2022

Liabilities
Current liabilities
Accounts payable for	construction	contracts	and			47,134
other
Short-term borrowings					16,676
Current portion of bonds						237
Advances received on	construction	contracts	in	18,237
progress
Deposits received						34,038
Provision for warranties for completed construction	1,442
Provision for bonuses						2,690
Provision for loss on construction contracts			595
Provision for loss on damage due to fire				3,921
Other					15,415
Total current liabilities						140,388
Non-current liabilities

36,357

16,637

237

29,102

30,663

1,421

776

492

－

16,295

131,983

Bonds payable		162	162
Long-term borrowings	7,640	7,555
Deferred tax liabilities		37	35
Retirement benefit liability	3,816	3,805
Provision for environmental measures		138	138
Provision for management board incentive plan trust	162	207
Other		1,302	1,239
Total non-current liabilities		13,261	13,146
Total liabilities		153,650	145,130
Net assets
Shareholders' equity
Share capital	17,006	17,006
Capital surplus		17,058	17,058
Retained earnings	114,124	113,977
Treasury shares		(10,422)	(13,539)
Total shareholders' equity		137,766	134,502
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,996	4,098
Deferred gains or losses on hedges		(345)	280
Foreign currency translation adjustment	85	162
Remeasurements of defined benefit plans		417	410
Total accumulated other comprehensive income		3,154	4,952
Non-controlling interests		761	812
Total net assets		141,682	140,267
Total liabilities and net assets		295,332	285,397

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1. Quarterly Consolidated Statements of Income and Comprehensive Income (Quarterly Consolidated Statements of Income)
   (Three Months Ended June 30)

						(Million yen)
			For the three months	For the three months
			ended June 30, 2021	ended June 30, 2022
Net sales
Net sales of completed construction contracts	69,050	66,152
Sales in other businesses			4,677		6,292
Total net sales	73,728	72,444
Cost of sales
Cost of sales of completed construction contracts	59,995	59,110
Cost of sales in other businesses			3,776		5,710
Total cost of sales	63,772	64,821
Gross profit
Gross profit on completed construction contracts	9,055	7,041
Gross profit - other business			900		581
Total gross profit	9,956	7,623
Selling, general and administrative expenses			4,989		5,714
Operating profit	4,966	1,908
Non-operating income
Dividend income	30	60
Foreign exchange gains				－		508
Other	44	113
Total non-operating income			75		682
Non-operating expenses
Interest expenses			76		76
Share of loss of entities accounted for using equity		－	11
method
Commission expenses			137		144
Foreign exchange losses	126			－
Compensation for damage			85		66
Other	73	17
Total non-operating expenses			499		316
Ordinary profit	4,542	2,274
Extraordinary income
Compensation for damage received		－	2,700
Gain on reversal of provision for loss on damage due to				－			305
fire
Subsidy income		－	94
Total extraordinary income				－			3,100
Extraordinary losses
Loss on damage due to fire				1			－
Loss on tax purpose reduction entry of non-current		－	90
assets
Loss on retirement of non-current assets				－			43
Loss on valuation of investment securities	26			－
Head office relocation expenses				－			338
Loss on litigation	12			－
Total extraordinary losses				40			472
Profit before income taxes	4,502	4,902
Income taxes				1,509			1,661
Profit	2,992	3,240
Loss attributable to non-controlling interests				(3)			(5)
Profit attributable to owners of parent		2,995	3,245

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