Nagaoka International : Summary of Consolidated Financial Results for the Year Ended June 30, 2022

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 Year Ended June 30, 2022

(Based on Japanese GAAP)

																			August 9, 2022
Company name:	Nagaoka International Corporation
Stock exchange listing:	Tokyo
Stock code:	6239	URL https://www.nagaokajapan.co.jp/
Representative:	President & CEO		Yasuhisa Umezu
Inquiries:	Director, Administrative Headquarters	Toshiya Tatemoto	TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	September 28, 2022
Scheduled date to file Securities Report:		September 28, 2022
Scheduled date to commence dividend payments:		September 29, 2022
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:						Yes		(for institutional investors and analysts)
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2022 (from July 1, 2021 to June 30, 2022)
(1) Consolidated operating results												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		%
Year ended June 30, 2022		6,328		1.0		787		(2.8)		991	5.8				795		17.3
Year ended June 30, 2021		6,263		(2.7)		809		(24.8)		937	(10.4)			677		(3.7)
			Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
				share				owners of				assets			sales
										parent/equity
				Yen		Yen			%						%				%
Year ended June 30, 2022		112.78			-			17.8						14.2				12.4
Year ended June 30, 2021		96.72			-			19.4						14.6				12.9
(2) Consolidated financial position
			Total assets		Net assets		Equity ratio	Net assets per share
			Millions of yen	Millions of yen					%						Yen
As of June 30, 2022			7,421					4,970					67.0						705.07
As of June 30, 2021			6,501					3,968					61.0						562.94
(3) Consolidated cash flows
			Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended June 30, 2022					152					(87)					206						2,027
Year ended June 30, 2021		1,693					(317)					(792)						1,584
2. Cash dividends
						Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
																to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen		Yen	Yen				Yen	Yen	Millions of yen		%			%
Year ended June 30, 2021		-		0.00	-				15.00	15.00		105		15.5			3.0
Year ended June 30, 2022		-		0.00	-				20.00	20.00		140		17.7			3.2
Year ending June 30, 2023		-			0.00	-				23.00	23.00				20.3
(Forecast)

1

3. Forecast of consolidated financial results for the year ending June 30, 2023 (from July 1, 2022 to June 30, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
Full year	7,800	23.3	1,140	44.8	1,160	17.0		800		0.6	113.49
4. Notes
(1) Changes in significant subsidiaries during the year ended June 30, 2022			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) 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:	Yes
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

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

	As of June 30, 2022	7,078,400	shares	As of June 30, 2021	7,078,400	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	29,199	shares	As of June 30, 2021	29,199	shares
Average number of shares during the period
	Year ended June 30, 2022	7,049,201	shares	Year ended June 30, 2021	7,009,119	shares

2

Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of June 30, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	1,676,213	2,118,522
Notes and accounts receivable - trade	1,972,837	-
Notes receivable - trade	-	67,886
Accounts receivable - trade	-	1,175,218
Contract assets	-	1,200,957
Electronically recorded monetary claims - operating	28,397	295,966
Merchandise and finished goods	8,649	11,547
Work in process	198,504	42,120
Raw materials and supplies	369,076	501,931
Other	406,255	301,525
Allowance for doubtful accounts	(3,022)	(3,445)
Total current assets	4,656,911	5,712,229
Non-current assets
Property, plant and equipment
Buildings and structures	949,072	1,145,550
Accumulated depreciation	(281,003)	(386,580)
Buildings and structures, net	668,068	758,969
Machinery, equipment and vehicles	750,156	1,016,467
Accumulated depreciation	(497,089)	(628,288)
Accumulated impairment	(16,269)	(16,269)
Machinery, equipment and vehicles, net	236,796	371,909
Tools, furniture and fixtures	355,950	389,254
Accumulated depreciation	(275,065)	(318,418)
Accumulated impairment	(536)	(536)
Tools, furniture and fixtures, net	80,348	70,299
Leased assets	175,982	207,871
Accumulated depreciation	(115,690)	(153,113)
Leased assets, net	60,292	54,758
Construction in progress	3,801	2,660
Total property, plant and equipment	1,049,307	1,258,597
Intangible assets
Other	336,274	352,004
Total intangible assets	336,274	352,004
Investments and other assets
Investments in capital of subsidiaries and associates	110,870	-
Long-term loans receivable	200,000	-
Deferred tax assets	102,726	27,830
Other	45,019	71,061
Total investments and other assets	458,616	98,891
Total non-current assets	1,844,198	1,709,493
Total assets		6,501,110	7,421,722

3

			(Thousands of yen)
		As of June 30, 2021	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	660,914	403,554
Short-term borrowings	514,915	929,305
Current portion of long-term borrowings	63,000	184,000
Lease liabilities	3,732	4,120
Accounts payable - other	164,150	236,503
Accrued expenses	160,809	170,074
Income taxes payable	143,760	160,453
Advances received	224,492	-
Contract liabilities	-	99,102
Asset retirement obligations	1,828	-
Other	23,679	14,611
Total current liabilities	1,961,283	2,201,724
Non-current liabilities
Long-term borrowings	207,600	123,600
Lease liabilities	7,678	9,641
provision for penalty burden loss	230,504	-
Retirement benefit liability	75,863	78,118
Long-term unearned revenue	49,897	38,477
Total non-current liabilities	571,543	249,836
Total liabilities	2,532,827	2,451,561
Net assets
Shareholders' equity
Share capital	1,253,241	1,253,241
Capital surplus	785,195	785,195
Retained earnings	1,760,833	2,395,252
Treasury shares	(20,106)	(20,106)
Total shareholders' equity	3,779,164	4,413,582
Accumulated other comprehensive income
Deferred gains or losses on hedges	(6,424)	(6,726)
Foreign currency translation adjustment	195,542	563,305
Total accumulated other comprehensive income	189,118	556,579
Total net assets	3,968,283	4,970,161
Total liabilities and net assets		6,501,110	7,421,722

4

Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		June 30, 2021	June 30, 2022
Net sales	6,263,111	6,328,117
Cost of sales	4,215,076	4,075,037
Gross profit	2,048,035	2,253,080
Selling, general and administrative expenses	1,238,498	1,465,992
Operating profit	809,536	787,087
Non-operating income
Interest income	7,397	11,574
Foreign exchange gains	86,467	168,699
Gain on sale of scraps	23,374	31,452
Subsidy income	15,700	19,242
Other	24,278	3,875
Total non-operating income	157,218	234,845
Non-operating expenses
Interest expenses	26,647	26,490
Commission expenses	2,921	3,499
Other	94	323
Total non-operating expenses	29,663	30,314
Ordinary profit	937,091	991,618
Extraordinary income
Gain on sale of non-current assets	3,552	-
Reversal of provision for penalty burden loss	-	244,633
Total extraordinary income	3,552	244,633
Extraordinary losses
Loss on retirement of non-current assets	83	1,988
Loss on valuation of golf club membership	-	2,630
Total extraordinary losses	83	4,618
Profit before income taxes	940,560	1,231,633
Income taxes - current	299,705	357,601
Income taxes - deferred	(37,094)	78,999
Total income taxes	262,611	436,600
Profit	677,949	795,032
Profit attributable to owners of parent		677,949	795,032

5