Sakata Seed : Summary of Consolidated Financial Results for the Six Months Ended November 30, 2021

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 Six Months Ended November 30, 2021 (Based on Japanese GAAP)

				January 13, 2022
Company name:	SAKATA SEED CORPORATION
Stock exchange listing:	Tokyo
Stock code:	1377	URL http://www.sakataseed.co.jp/
Representative:	President and Representative Director	Hiroshi Sakata
	Executive Officer
Inquiries:	Deputy Senior General Manager of General Administration Div.	Takenori Hoshi	TEL [phone]
	General Manager of Finance Dept.
Scheduled date to file Quarterly Securities Report:	January 14, 2022
Scheduled date to commence dividend payments:	February 10, 2022
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended November 30, 2021 (from June 1, 2021 to November 30, 2021)

(1) Consolidated operating results (cumulative)		(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Six months ended November 30, 2021	32,704	-	5,688	-	6,163	-	4,129	-
Six months ended November 30, 2020	31,524	10.0	5,640	46.9	5,772	33.9	4,320	39.5

(Note) From the beginning of the year ending March 31, 2022, "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020) etc. have been adopted. Therefore, the percentage compared to the previous corresponding periods are not stated. When calculating the figures for the six months ended November 30, 2021 in accordance with the same accounting standard before this adoption, net sales would be 34,137 million yen (8.3% increase compared to the previous corresponding period).

	Earnings per share	Diluted earnings per share
	Yen		Yen
Six months ended November 30, 2021	92.89		-
Six months ended November 30, 2020	96.88		-
(2) Consolidated financial position
	Total assets	Net assets	Equity ratio
	Millions of yen	Millions of yen	%
As of November 30, 2021	134,865	113,922	84.3
As of May 31, 2021	133,077	111,898	83.9

(Note) From the beginning of the year ending March 31, 2022, "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020) etc. have been adopted. Accordingly, the above figures as of November 30, 2021 include the effects of the new standards.

2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended May 31, 2021	-	15.00	-	23.00	38.00
Year ending May 31, 2022	-	18.00
Year ending May 31, 2022 (Forecast)			-	20.00	38.00

(Note) Revision of the latest forecast of cash dividends: No

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3. Forecast of consolidated financial results for the year ending May 31, 2022 (from June 1, 2021 to May 31, 2022)

(% indicates changes from the previous corresponding period.)

	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	67,400	-	9,000	-	9,300	-	9,800	-	219.75

(Note) Revision of the latest forecast of consolidated financial results: YES

(Note) From the beginning of the year ending March 31, 2022, "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020) etc. have been adopted. Accordingly, the above forecasts include the effects of the new standards. Therefore, the percentage compared to the previous corresponding period are not stated. When calculating the figures for the full year forecast in accordance with the same accounting standard before this adoption, net sales are forecasted at 71,000 million yen.

4. Notes
(1)	Changes in significant subsidiaries during the six months ended November 30, 2021	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	Yes

(3) 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:	Yes
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

	As of November 30, 2021	47,410,750	shares	As of May 31, 2021	47,410,750	shares
Number of treasury shares at the end of the period
	As of November 30, 2021	3,062,727	shares	As of May 31, 2021	2,813,736	shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)

Six months ended November 30, 2021

44,457,535 shares

Six months ended November 30, 2020

44,597,621 shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of May 31, 2021	As of November 30, 2021
Assets
Current assets
Cash and deposits	20,988	23,772
Notes and accounts receivable - trade	16,465	-
Notes and accounts receivable	-	13,437
- trade, and contract assets
Merchandise and finished goods	30,642	33,077
Work in process	2,554	2,218
Raw materials and supplies	2,240	533
Costs on construction contracts in progress	51	84
Other	4,387	5,251
Allowance for doubtful accounts	(416)	(404)
Total current assets	76,913	77,970
Non-current assets
Property, plant and equipment
Buildings and structures	33,073	33,745
Accumulated depreciation	(21,073)	(21,469)
Buildings and structures, net	12,000	12,275
Machinery, equipment and vehicles	14,842	15,327
Accumulated depreciation	(10,237)	(10,581)
Machinery, equipment and vehicles, net	4,604	4,746
Land	13,697	13,757
Construction in progress	1,647	1,424
Other	6,205	6,546
Accumulated depreciation	(3,917)	(4,197)
Other, net	2,287	2,348
Total property, plant and equipment	34,237	34,551
Intangible assets	4,591	4,435
Investments and other assets
Investment securities	14,848	15,200
Long-term loans receivable	25	18
Deferred tax assets	1,665	1,792
Other	808	909
Allowance for doubtful accounts	(13)	(12)
Total investments and other assets	17,334	17,907
Total non-current assets	56,163	56,895
Total assets		133,077	134,865

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		(Millions of yen)
	As of May 31, 2021	As of November 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	4,896	3,600
Short-term borrowings	1,894	1,450
Income taxes payable	1,447	1,477
Other	6,449	7,313
Total current liabilities	14,688	13,842
Non-current liabilities

Long-term borrowings Deferred tax liabilities Retirement benefit liability

Provision for retirement benefits for directors (and other officers)

Provision for share awards for directors (and other officers)

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

Non-controlling interests Total net assets

Total liabilities and net assets

894	991
1,256	1,900
1,819	1,731
44	46
101	93
2,374	2,336
6,490	7,100
21,178	20,942
13,500	13,500
10,793	10,793
91,099	93,898
(4,487)	(5,392)
110,905	112,799
5,873	6,061
(4,876)	(4,985)
(240)	(220)
757	856
235	266
111,898	113,922
133,077	134,865

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		November 30, 2020	November 30, 2021
Net sales	31,524	32,704
Cost of sales	12,706	12,278
Gross profit	18,817	20,425
Selling, general and administrative expenses	13,177	14,737
Operating profit	5,640	5,688
Non-operating income
Interest income	49	57
Dividend income	193	194
Rental income	104	141
Foreign exchange gains	-	119
Other	125	131
Total non-operating income	473	644
Non-operating expenses
Interest expenses	62	44
Foreign exchange losses	203	-
Other	74	124
Total non-operating expenses	340	169
Ordinary profit	5,772	6,163
Extraordinary income
Gain on sale of investment securities	108	28
Settlement received	150	-
Total extraordinary income	258	28
Extraordinary losses
Impairment losses	71	8
Settlement package	-	126
Loss on valuation of investment securities	102	-
Total extraordinary losses	173	135
Profit before income taxes	5,857	6,057
Income taxes	1,503	1,883
Profit	4,353	4,173
Profit attributable to non-controlling interests	33	44
Profit attributable to owners of parent		4,320	4,129

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