[Summary]Consolidated Financial Results for the Six Months Ended September 30,2021 [Japanese GAAP]

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 Six Months Ended September 30, 2021

[Japanese GAAP]

November 11, 2021

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: November 11, 2021

Scheduled date of commencing dividend payments: December 6,2021

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes (For analysts and financial institutions)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (April 1, 2021 to September 30, 2021)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Six months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
September 30, 2021	158,902	(12.3)	12,440	(10.2)	11,999	(5.2)	8,105	(5.3)
September 30, 2020	181,099	2.8	13,856	17.2	12,654	10.3	8,557	11.4

(Note) Comprehensive income: Six months ended September 30, 2021: ¥9,010 million [1.7%] Six months ended September 30, 2020: ¥8,856 million [19.8%]

	Basic earnings	Diluted earnings
	per share	per share
Six months ended	Yen	Yen
September 30, 2021	44.30	44.30
September 30, 2020	44.33	44.32

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of September 30, 2021	313,713	147,687	46.8
As of March 31, 2021	339,387	146,676	43.0

(Reference) Equity: As of September 30, 2021: ¥146,929 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: Yes

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 to	Basic earnings
		owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	372,000	5.6	24,900	(9.0)	23,400	(9.6)	15,800	(8.1)	86.98
(Note) Revision to the financial results forecast announced most recently: No

* Notes:

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

September 30, 2021: 200,343,397 shares

March 31, 2021: 200,343,397 shares

1. Total number of treasury shares at the end of the period: September 30, 2021: 19,981,814 shares
   March 31, 2021: 13,818,561 shares
2. Average number of shares during the period:

Six months ended September 30, 2021: 182,949,518 shares

Six months ended September 30, 2020: 193,045,724 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 September 30, 2021
Assets
Current assets
Cash and deposits		129,317	93,217
Notes receivable, accounts receivable from	121,461	131,659
completed construction contracts and other
Costs on construction contracts in progress		5,593	4,698
Other inventories		8,823	6,197
Other		9,023	11,982
Allowance for doubtful accounts		(12)	(13)
Total current assets		274,206	247,741
Non-current assets
Property, plant and equipment
Land		15,799	15,815
Other, net		13,755	13,697
Total property, plant and equipment		29,555	29,513
Intangible assets		1,505	1,428
Investments and other assets
Investment securities		21,697	23,020
Deferred tax assets		7,819	7,497
Other		4,605	4,513
Allowance for doubtful accounts		(1)	(1)
Total investments and other assets		34,120	35,030
Total non-current assets		65,181	65,971
Total assets		339,387	313,713

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(Million yen)

As of March 31, 2021

As of September 30, 2021

Liabilities

Current liabilities

Notes payable, accounts payable for construction contracts and other

Short-term borrowings

Current portion of bonds

Income taxes payable

Advances received on construction contracts in progress

Provision for warranties for completed construction

Provision for bonuses

Provision for loss on construction contracts

Provision for loss on damage due to fire

Other

Total current liabilities

Non-current liabilities

Bonds payable

Long-term borrowings

Deferred tax liabilities

Retirement benefit liability

Provision for environmental measures

Provision for management board incentive plan trust

Other

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-sale securities

Foreign currency translation adjustment

Remeasurements of defined benefit plans

Total accumulated other comprehensive income

Share acquisition rights

Non-controlling interests

Total net assets

Total liabilities and net assets

70,624	62,245
16,312
17,130
291	291
4,907	4,242
27,385	18,784
2,129
2,053
2,595	2,592
1,248	774
5,996	5,877
42,269	31,523
173,761	145,517
400
254
8,271	9,591
37	36
8,857	8,917
139	138
116	162
1,127	1,407
18,949	20,508
192,710	166,026
17,006
17,006
19,919	19,898
115,086	120,388
(10,187)	(15,358)
141,824	141,934
3,754
4,614
55	74
281	305
4,091	4,994
3	0
758	757
146,676	147,687
339,387	313,713

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1. Quarterly Consolidated Statements of Income and Comprehensive Income (Quarterly Consolidated Statements of Income)
   (Six Months Ended September 30)

			(Million yen)
		For the six months	For the six months
		ended September 30, 2020	ended September 30, 2021
Net sales
Net sales of completed construction contracts	170,474	147,717
Sales in other businesses	10,625	11,184
Total net sales		181,099	158,902
Cost of sales
Cost of sales of completed construction contracts	147,728	127,267
Cost of sales in other businesses	9,206	9,289
Total cost of sales		156,935	136,556
Gross profit
Gross profit on completed construction contracts	22,745	20,449
Gross profit - other business	1,418	1,895
Total gross profit		24,164	22,345
Selling, general and administrative expenses	10,307	9,904
Operating profit		13,856	12,440

Non-operating income

Dividend income

Other

Total non-operating income

Non-operating expenses

Interest expenses

Commission expenses

Foreign exchange losses

Other

Total non-operating expenses

Ordinary profit

Extraordinary income

Subsidy income

Total extraordinary income

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 valuation of investment securities Loss on litigation

Total extraordinary losses

Profit before income taxes

Income taxes

Profit

Loss attributable to non-controlling interests

Profit attributable to owners of parent

130	126
	82	78
212	204
164	152
774	143
7	141
467	207
1,414	645
12,654	11,999
354		－
					354		－
15	12
					354		－
					－	18
					－	25
		19	18
					390	76
					12,619	11,923
		4,079	3,822
					8,539	8,100
		(17)	(4)
					8,557	8,105

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