San Ai Oil : Summary of Consolidated Financial Results for the Six Months Ended September 30,2021(Based on Japanese GAAP)

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 September 30, 2021 (Based on Japanese GAAP)

				November 9, 2021
Company name:	SAN-AI OIL CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	8097	URL http://www.san-ai-oil.co.jp/
Representative:	Representative Director, President	Yukio Tsukahara
Inquiries:	General Manager, General Accounting	Eiichi Nonaka	TEL [phone]
Department
Scheduled date to file Quarterly Securities Report:	November 10, 2021
Scheduled date to commence dividend payments:	December 3, 2021
Preparation of supplementary material on quarterly financial results:	No
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 September 30, 2021 (from April 1, 2021 to September 30, 2021)
(1) Consolidated operating results (cumulative)						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	%
Six months ended September 30, 2021	266,832		28.3	4,654		16.9	5,208		13.7	3,181	3.9
Six months ended September 30, 2020	207,896		(41.0)	3,979		(14.2)	4,580		(9.7)	3,062	(22.8)
	Earnings per share		Diluted earnings per share
			Yen			Yen
Six months ended September 30, 2021			46.12				-
Six months ended September 30, 2020			43.89				-
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen		Millions of yen				%
As of September 30, 2021	186,153	109,396				56.0
As of March 31, 2021	187,245	106,468				54.2

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 March 31, 2021	-	14.00	-	14.00	28.00
Year ending March 31, 2022	-	14.00
Year ending March 31, 2022 (Forecast)			-	14.00	28.00

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

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	470,000	(0.8)	10,000	16.4	10,500		5.0	7,500		6.3	108.72

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4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(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:	No
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 September 30, 2021	71,000,000	shares	As of March 31, 2021	71,000,000	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	2,016,682	shares	As of March 31, 2021	2,015,903	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2021	68,987,013	shares	Six months ended September 30, 2020	69,779,043	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	36,737	33,088
Notes and accounts receivable - trade	37,116	-
Notes and accounts receivable - trade, and contract assets	-	36,788
Securities	-	100
Merchandise and finished goods	5,709	7,102
Work in process	69	90
Raw materials and supplies	91	87
Other	1,858	1,830
Allowance for doubtful accounts	(441)	(440)
Total current assets	81,141	78,646
Non-current assets
Property, plant and equipment
Buildings and structures	67,885	69,289
Accumulated depreciation	(46,678)	(47,392)
Buildings and structures, net	21,207	21,896
Machinery, equipment and vehicles	33,981	33,938
Accumulated depreciation	(26,107)	(26,526)
Machinery, equipment and vehicles, net	7,873	7,412
Land	19,303	18,994
Other	7,564	8,448
Accumulated depreciation	(4,408)	(4,423)
Other, net	3,155	4,024
Total property, plant and equipment	51,539	52,327
Intangible assets
Goodwill	1,354	1,494
Customer-related assets	1,272	1,227
Other	1,490	1,662
Total intangible assets	4,116	4,384
Investments and other assets
Investment securities	20,104	20,342
Retirement benefit asset	3,593	3,832
Guarantee deposits	25,283	25,275
Other	1,565	1,439
Allowance for doubtful accounts	(98)	(96)
Total investments and other assets	50,448	50,794
Total non-current assets	106,103	107,506
Total assets		187,245	186,153

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			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	42,706	40,027
Short-term borrowings	270	300
Current portion of long-term borrowings	3,129	2,650
Income taxes payable	1,743	1,095
Provision for bonuses	1,707	1,449
Provision for bonuses for directors (and other officers)	69	35
Provision for warranties for completed construction	0	0
Asset retirement obligations	94	19
Other	11,332	11,040
Total current liabilities	61,055	56,617
Non-current liabilities
Long-term borrowings	4,764	4,717
Provision for retirement benefits for directors (and other	154	164
officers)
Provision for special repairs	170	187
Retirement benefit liability	224	221
Asset retirement obligations	592	604
Other	13,815	14,243
Total non-current liabilities	19,722	20,140
Total liabilities	80,777	76,757
Net assets
Shareholders' equity
Share capital	10,127	10,127
Capital surplus	4,286	4,307
Retained earnings	84,698	87,379
Treasury shares	(2,287)	(2,291)
Total shareholders' equity	96,824	99,522
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	4,407	4,621
Revaluation reserve for land	(353)	(353)
Remeasurements of defined benefit plans	602	534
Total accumulated other comprehensive income	4,655	4,801
Non-controlling interests	4,987	5,072
Total net assets	106,468	109,396
Total liabilities and net assets		187,245	186,153

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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
		September 30, 2020	September 30, 2021
Net sales
Net sales of goods	206,104	265,370
Net sales of completed construction contracts	1,791	1,461
Total net sales	207,896	266,832
Cost of sales
Cost of goods sold	183,456	241,258
Cost of sales of completed construction contracts	1,661	1,290
Total cost of sales	185,118	242,549
Gross profit	22,778	24,282
Selling, general and administrative expenses	18,798	19,628
Operating profit	3,979	4,654
Non-operating income
Interest income	91	120
Dividend income	266	204
Light oil delivery tax grant	80	78
Reversal of allowance for doubtful accounts	2	3
Other	324	304
Total non-operating income	765	711
Non-operating expenses
Interest expenses	130	127
Provision of allowance for doubtful accounts	0	-
Other	33	29
Total non-operating expenses	165	156
Ordinary profit	4,580	5,208
Extraordinary income
Gain on sale of non-current assets	4	10
Gain on sale of investment securities	1,004	17
Total extraordinary income	1,009	28
Extraordinary losses
Loss on sale and retirement of non-current assets	103	107
Loss on valuation of investment securities	1,281	12
Loss on sale of shares of subsidiaries and associates	-	10
Impairment losses	0	1
Provision for loss on store closings	133	-
Loss on sale of investment securities	39	-
Total extraordinary losses	1,558	132
Profit before income taxes	4,030	5,104
Income taxes - current	1,397	1,469
Income taxes - deferred	(519)	162
Total income taxes	877	1,631
Profit	3,153	3,473
Profit attributable to non-controlling interests	90	291
Profit attributable to owners of parent		3,062	3,181

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