Neturen : Consolidated Financial Results for the Three Months Ended June 30, 2021

Consolidated Financial Results

for the Three Months Ended June 30, 2021

[Japanese GAAP]

August 6, 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: August 10, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on quarterly financial results: No

Availability of quarterly financial results briefing: No

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

1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 1, 2021 - June 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
	Three months ended		Million yen	%	Million yen	%		Million yen	%		Million yen	%
	June 30, 2021		11,811	41.7		912	-		1,072	-		667	-
	June 30, 2020		8,337	(35.5)		(818)	-		(652)	-		(685)	-
	(Note) Comprehensive	income: Three months	ended June 30, 2021: ¥1,588 million [-%]
				Three months ended June 30, 2020: ¥(1,262) million [-%]
			Basic earnings		Diluted
				earnings
			per share
					per share
	Three months ended			Yen			Yen
	June 30, 2021		16.75			-
	June 30, 2020		(16.79)			-
(2) Consolidated Financial Position
				Total assets		Net assets	Equity ratio
					Million yen		Million yen		%
	As of June 30, 2021			77,137		63,859	73.9
	As of March 31, 2021			75,574		62,714	74.4

(Reference) Equity: As of June 30, 2021: ¥56,997 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		-
31, 2022
Fiscal year ending
March 31, 2022			13.00		-	12.00	25.00
(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 - 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
First half	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
25,000	36.1	1,800	-	2,000	-	1,300	-	32.61
Full year	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: Yes

* 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
4. 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
5. Total number of issued and outstanding shares (common shares)
6. 1. Total number of issued and outstanding shares at the end of the period (including treasury shares):

June 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:
June 30, 2021:	3,928,378 shares
March 31, 2021:	3,928,280 shares
3) Average number of shares during the period:
Three months ended June 30, 2021:	39,862,190 shares
Three months ended June 30, 2020:	40,806,676 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).

2. Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

(Million yen)

As of March 31, 2021

As of June 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	15,530
10,717	－
	10,648
－
3,640	3,998
383	319
885	1,022
1,570	2,214
2,217	2,272
1,430	1,490
(41)	(43)
35,478	37,453
8,527	8,480
9,337	9,251
9,866	9,880
1,081	1,030
349	374
29,163	29,017
639	636
4	3
141	128
785	768
8,686	8,552
28	26
86	87
1,426	1,310
(79)	(79)
10,147	9,897
40,096	39,683
75,574	77,137

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(Million yen)

As of March 31, 2021

As of June 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	2,797
3,008	3,187
1,486	1,500
268	320
699	412
12	15
2,122	2,812
10,391	11,046
1,268	1,096
	3
3
562	555
634	576
2,469	2,231
12,860	13,278

Share capital	6,418	6,418
Capital surplus	4,698	4,698
Retained earnings	47,415	47,670
Treasury shares	(3,106)	(3,106)
Total shareholders' equity			55,425	55,680
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,141	921
Foreign currency translation adjustment	(452)	278
Remeasurements of defined benefit plans		118	116
Total accumulated other comprehensive income	807	1,316
Non-controlling interests			6,481	6,862
Total net assets	62,714	63,859
Total liabilities and net assets			75,574	77,137

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