Neturen : Consolidated Financial Results for the Six Months Ended September 30, 2021

Consolidated Financial Results

for the Six Months Ended September 30, 2021

[Japanese GAAP]

November 5, 2021

Company name: Neturen Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Code number: 5976

URL: https://www.k-neturen.co.jp/

Representative: Katsumi Omiya, Representative Director, Member of the Board, President and Chief Executive Officer

Contact: Takaaki Aoi, General Manager, Accounting Department, Administrative Headquarters

Phone: [phone]

Scheduled date of filing quarterly securities report: November 10, 2021

Scheduled date of commencing dividend payments: December 6, 2021

Availability of supplementary explanatory materials on quarterly financial results: Available

Availability of quarterly financial results briefing: Available (for institutional investors and analysts)

(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 - September 30,

2021)
(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
		Net sales		Operating income	Ordinary income		Profit attributable to
				owners of parent
	Six months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	September 30, 2021	24,390	32.8	1,829	-	2,146	-	1,357	-
	September 30, 2020	18,367	(26.3)	(697)	-	(447)	-	(653)	-

(Note) Comprehensive income: Six months ended September 30, 2021: ¥2,582 million [-%]

				Six months ended September 30, 2020: ¥(1,039) million [-%]
		Basic earnings	Diluted
		earnings
			per share
			per share
	Six months ended			Yen			Yen
	September 30, 2021		34.03			-
	September 30, 2020		(16.00)			-
(2) Consolidated Financial Position
				Total assets		Net assets	Equity ratio
				Million yen			Million yen	%
	As of September 30, 2021			78,384		64,546	73.8
	As of March 31, 2021			75,574		62,714	74.4

(Reference) Equity: As of September 30, 2021: ¥57,825 million As of March 31, 2021: ¥56,233 million

2. Dividends

				Annual dividends
		1st quarter-end	2nd quarter-end		3rd quarter-end	Year-end	Total
Fiscal year ended		Yen	Yen		Yen	Yen	Yen
	-	5.00		-	9.00	14.00
March 31, 2021
Fiscal year
ending March		-	13.00
31, 2022
Fiscal year ending
March 31, 2022					-	12.00	25.00
(Forecast)

(Note) Revision to the forecast for dividends announced most recently: None

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

(% indicates changes from the previous corresponding period.)

							Profit attributable	Basic earnings
	Net sales		Operating income	Ordinary income	to owners of
		per share
							parent
Full year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
51,500	21.0	3,300	258.6	3,700	150.7	2,400	795.0	60.21

(Note) Revision to the financial results forecast announced most recently: None

* Notes:

1. Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation) Newly included: -
   Excluded: -
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes (Note) For details, please see "2. Quarterly Consolidated Financial Statements (3) Notes to Quarterly Consolidated Financial Statements (Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)" on page 7 of the appendix (Japanese version only).
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement

1)	Changes in accounting policies due to the revision of accounting standards:	Yes
2)	Changes in accounting policies other than 1) above:	None
3)	Changes in accounting estimates:	None
4)	Retrospective restatement:	None

1. Total number of issued and outstanding shares (common shares)
   1) Total number of issued and outstanding shares at the end of the period (including treasury shares):

September 30, 2021:	43,790,500 shares
March 31, 2021:	43,790,500 shares
2) Total number of treasury shares at the end of the period:
September 30, 2021:	3,883,905 shares
March 31, 2021:	3,928,280 shares
3) Average number of shares during the period:
Six months ended September 30, 2021:	39,881,228 shares
Six months ended September 30, 2020:	40,826,604 shares

• These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
• Explanation of the proper use of financial results forecast and other notes (Notes on forward-looking statements, etc.)
  The forward-looking statements contained in this document are based on judgments made in accordance with information available at the time of the release of this document and include many uncertain factors. Actual results may differ from these forecasts due to changes in business conditions and other factors.
  For the assumptions used for the financial results forecast as well as precautions regarding the use of such forecast, please refer to "1. Qualitative Information on Quarterly Financial Results (3) Explanation Regarding Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the Attachments (Japanese version only).
  (Access to the materials for the quarterly financial results briefing session for the second quarter)
  The quarterly financial results briefing session for the second quarter (for institutional investors and analysts) is scheduled for November 26, 2021. Supplementary materials for the quarterly financial results (materials for the quarterly financial results briefing session for the six months ended September 30, 2021) will be disclosed via TDnet and on the Company's website following the briefing session.

2. 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

Notes and accounts receivable - trade

Notes and accounts receivable - trade, and contract assets

Electronically recorded monetary claims

Securities

Finished goods

Work in process

Raw materials and supplies

Other

Allowance for doubtful accounts

Total current assets

Non-current assets

Property, plant and equipment

Buildings and structures, net

Machinery, equipment and vehicles, net

Land

Construction in progress

Other, net

Total property, plant and equipment

Intangible assets

Leasehold interests in land

Goodwill

Other

Total intangible assets

Investments and other assets

Investment securities

Long-term loans receivable

Retirement benefit asset

Other

Allowance for doubtful accounts

Total investments and other assets

Total non-current assets

Total assets

14,675	17,342
10,717	－
	9,371
－
3,640	3,872
383	272
885	1,385
1,570	2,072
2,217	2,776
1,430	2,359
(41)	(41)
35,478	39,411
8,527	8,413
9,337	9,039
9,866	9,887
1,081	930
349	659
29,163	28,931
639	641
4	2
141	117
785	760
8,686	8,348
28	24
86	80
1,426	907
(79)	(79)
10,147	9,281
40,096	38,973
75,574	78,384

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(Million yen)

As of March 31, 2021

As of September 30, 2021

Liabilities

Current liabilities

Notes and accounts payable - trade Electronically recorded obligations - operating Short-term borrowings

Income taxes payable

Provision for bonuses

Provision for bonuses for directors (and other officers)

Other

Total current liabilities

Non-current liabilities

Long-term borrowings

Provision for share awards for directors (and other officers)

Retirement benefit liability

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

2,793	2,941
3,008	3,196
1,486	1,332
268	661
699	776
12	13
2,122	2,536
10,391	11,458
1,268	1,008
	5
3
562	538
634	828
2,469	2,380
12,860	13,838

Share capital	6,418	6,418
Capital surplus	4,698	4,688
Retained earnings	47,415	48,359
Treasury shares	(3,106)	(3,071)
Total shareholders' equity			55,425	56,395
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,141	832
Foreign currency translation adjustment	(452)	483
Remeasurements of defined benefit plans		118	113
Total accumulated other comprehensive income	807	1,430
Non-controlling interests			6,481	6,721
Total net assets	62,714	64,546
Total liabilities and net assets			75,574	78,384

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