Summary of consolidated financial performance

The second quarter of the fiscal year ending March 20, 2022

Website: https://www.alinco.co.jp

Nobuo Kobayashi, Representative Director and President, Chief Operating Officer

Takashi Sakaguchi, Director, Managing Executive Officer,

General Manager of Accounting and Control Department

Scheduled date for submission of quarterly reports:

Scheduled dividend payment date:

Preparation of supplementary materials for quarterly financial performance: Yes

Convene a quarterly financial performance meeting:

(All amounts are rounded to the nearest million yen)

1. Consolidated financial results for the second quarter of the fiscal year ending March 20, 2022 (March 21, 2021-September 20, 2021)

Note: EBITDA = ordinary profit depreciation goodwill amortization

As of September 20, 2021: 28.062 billion yen

As of March 20, 2021: 27.597 billion yen

Fiscal year ending March 20, 2022 (forecast)

Note: Amendments to the recently announced dividend forecast: None

3. Comprehensive forecast for the fiscal year ending March 20, 2022 (March 21, 2021 to March 20, 2022)

Reference: EBITDA forecast for the fiscal year ending March 20, 2022 is 6.42 billion yen (increased by 0.2%)

Note: Amendments to the recently announced comprehensive forecast: None

2) Number of treasury shares at the end of the period

3) Average number of shares outstanding during the period

Note: When calculating net assets per share, the number of company shares held in the exclusive trust account of the ALINCO Employee Stock Ownership Association under the "Trusted Employee Stock Ownership Incentive Plan" (451,500 shares as of September 20, 2021) E- Ship)” is included in treasury shares and deducted when calculating the number of outstanding shares at the end of the period. When calculating net earnings per share, the company’s shares held by the trust are also included in treasury shares, which are deducted when calculating the average number of shares outstanding for the period (the capital The period is 482,257 shares). The six months ended September 20, 2021).

*This quarterly financial report has not been audited quarterly by a certified public accountant or audit firm.

*Warning statement regarding forward-looking statements and other special items

The forecast of the future performance of these materials is based on the assumptions that were judged to be valid when the materials were prepared and the information available to ALINCO management. Due to a variety of reasons, actual results may differ materially from forecasts. For forecast assumptions and usage precautions, please refer to "Comprehensive forecasts and other forward-looking statements interpretation" on page 3.

ALINCO INCORPORATED (5933) 3/22 Financial results for the second quarter of the fiscal year

1. Qualitative information on quarterly consolidated financial performance

Operation result description

Comprehensive forecast and interpretation of other forward-looking statements

2. Quarterly consolidated financial statements and notes

Quarterly consolidated income statement and comprehensive income statement

Notes to the quarterly consolidated financial statements

Significant changes in shareholder equity

ALINCO INCORPORATED (5933) 3/22 Financial results for the second quarter of the fiscal year

1. Qualitative information on quarterly consolidated financial performance

(1) Description of business results

In the first six months of the fiscal year ending March 20, 2022, the operating environment remains challenging due to the impact of the COVID-19 pandemic. At present, the effects of policies to curb the spread of infections, such as promoting vaccination, are expected to help the economic recovery, but the prospects are still uncertain.

In the construction and housing-related industries, which are the main industries of the ALINCO Group, industry trends in the first six months of this fiscal year showed signs of recovery. For example, the construction industry continued to grow year-on-year. Start construction according to the building area. Under these circumstances, sales of our main product, the new ALBATROSS system ("ALBATROSS"), have returned to record levels between October 2019 and March 2020, just before the impact of the COVID-19 crisis became apparent. In addition, in our leasing business, the utilization rate of leasing scaffolding materials rose to the pre-corona level in the same period of the previous year. On the other hand, sales growth of home fitness equipment slowed down after hitting a record high during the pandemic last fiscal year.

Sales in the first six months were 26.714 billion yen, an increase of 6.0% over the same period of the previous year, due to the recovery of sales in our core business of scaffolding manufacturing, sales and leasing. In terms of profit, affected by the international commodity market prices, the continuous increase in the cost of raw materials such as steel, aluminum and other factors led to a significantly higher cost than expected. Operating profit fell by 5.5% to 922 million yen, and the depreciation of the yen and rising freight rates led to foreign purchases. Rising costs. Due to the improvement in non-operating income and expenses, ordinary profit increased by 3.6% to 1.164 billion yen. The profit attributable to the owners of the parent company increased by 24.1% to 747 million yen, mainly due to the abnormal income generated by the partial sale of shares held for business relations and the reduction in income tax.

The performance of each business segment is as follows. Please note that segment sales do not include inter-segment sales.

3/22 First six months of the fiscal year

Note: 1. The segment profit and loss is adjusted to be consistent with the ordinary profit in the quarterly consolidated profit and loss statement.

2. The adjustment of segment profit and loss is mainly non-operating income and expenses, such as equity method income and losses, exchange gains and losses, and interest expenses that cannot be allocated to the reporting segment.

Sales increased by 27.9% year-on-year to 9.809 billion yen. As a result of sales to new customers (including a large construction company) and additional purchases from existing customers, ALBATROSS’s sales increased significantly by 94.5%. In addition, sales of distribution warehouse shelves have also remained strong.

Due to the increase in sales, the division's profit increased by 149.3% from the same period last year to 863 million yen.

ALINCO INCORPORATED (5933) 3/22 Financial results for the second quarter of the fiscal year

Sales increased by 5.0% year-on-year to 7.781 billion yen. The utilization rate of the rental scaffolding materials for middle and high-rise buildings has been improved. Sales of event-related rental equipment severely affected by the pandemic related to the Tokyo Olympics are also strong.

Due to the increase in sales, the division's profit increased by 35.1% year-on-year to 150 million yen.

Sales were 7.382 billion yen, down 12.6% year-on-year. Although aluminum ladders, stepladders and other products are affected by unseasonable weather, reduced passenger flow of mass retailers, and continued restrictions on exhibitions, sales remain strong. However, due to the positive impact of home demand a year ago, sales of fitness equipment hit a record high.

A segment loss of 25 million yen was a decrease of 586 million yen compared to the same period last year's profit. The reason was that the depreciation of the yen led to an increase in raw material prices, an increase in freight costs and a decrease in sales, and the increase in foreign procurement costs. cost.

Sales were 1.74 billion yen, an increase of 3.6% year-on-year. We try to minimize the negative impact of the current shortage of electronic components (mainly semiconductor components) on the supply chain. In addition, as the business benefited from the recovery in demand for specific low-power wireless communication equipment and wireless communication equipment for commercial applications, sales increased.

Although the expenses related to the stocks acquired through mergers and acquisitions were 47 million yen, due to the increase in sales, the profit of the division increased by 61 million yen from a year ago to 47 million yen.

As of the end of the second quarter, total assets increased by 1.993 billion yen from the end of the previous fiscal year to 57.437 billion yen. Current assets increased by 1.177 billion yen to 34.363 billion yen, and non-current assets increased by 815 million yen to 23.074 billion yen. The main reason for the increase in total assets was that Tono Electronics Co., Ltd. was incorporated into the scope of consolidation on August 18, 2021, increased inventory by 806 million yen due to increased future demand, and 1.007 billion yen in investment in Fukuchiyama Logistics Center and leased assets, resulting in property, Increase in plant and equipment.

Total liabilities increased by 1.583 billion yen from the end of the previous fiscal year to 29.348 billion yen. Current liabilities increased by 749 million yen to 16.909 billion yen, and non-current liabilities increased by 833 million yen to 12.438 billion yen. The main reason for the increase in liabilities was the increase of 1.413 billion yen in borrowings and the inclusion of Toshi Electronics Industry in the scope of consolidation.

Due to the profit attributable to the owners of the parent company of 747 million yen and the dividend payment of 376 million yen, total net assets increased by 410 million yen to 28.089 billion yen from the end of the previous fiscal year.

(3) Explanation of comprehensive forecasts and other forward-looking statements

Regarding the future prospects, since our main product ALBATROSS is currently being sold to a large construction company, the sales of our core business are expected to remain stable compared to the planned forecast. In addition, the profit margin is expected to improve due to rising prices of raw materials and other costs. All in all, the comprehensive forecast for the fiscal year ending March 20, 2022 announced on April 30, 2021 has not been revised.

This is an excerpt from the original content. To continue reading, please visit the original document here.

Alinco Inc. published this content on November 15, 2021 and is solely responsible for the information contained therein. Distributed by the public at 06:09:07, November 15, 2021 UTC, unedited and unaltered.