KOSAIDO : Consolidated Financial Results for the Nine Months Ended December 31, 2021

Disclaimer: This document is an English translation of the original Japanese document and has been prepared for reference purposes only. In the event of any discrepancy between this English translation and the original Japanese document, the latter shall prevail.

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

[Japanese GAAP]

February 8, 2022

Company name: KOSAIDO Holdings Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Code number: 7868

URL: https://www.kosaido.co.jp/

Representative: Hiroshi Kurosawa, President and Representative Director

Contact: Ryoma Noguchi, Executive Officer and General Manager, Management Strategy Headquarters

Phone: [phone]

Scheduled date of filing quarterly securities report: February 9, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing materials on quarterly financial results: None

Schedule of quarterly financial results briefing session: None

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

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 1, 2021 - December 31,

2021)
(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
					Net sales		Operating profit		Ordinary profit		Profit attributable to
									owners of parent
	Nine months ended			Million yen	%	Million yen	%		Million yen	%			Million yen	%
	December 31, 2021			23,891	9.7		1,904	119.0		1,786	126.3			1,565	-
	December 31, 2020			21,787	(14.5)		869	(31.6)		789	(35.2)			(331)	-
	(Note) Comprehensive income: Nine months ended December 31, 2021: ¥1,402 million [(-)%]
					Nine months ended December 31, 2020: ¥(520) million [(-)%]
				Basic earnings		Diluted
					earnings
				per share
						per share
	Nine months ended				Yen				Yen
	December 31, 2021		65.88				-
	December 31, 2020		(13.30)				-
(2) Consolidated Financial Position
					Total assets			Net assets	Equity ratio
						Million yen			Million yen		%
	As of December 31, 2021		68,164			30,529		44.6
	As of March 31, 2021			64,592			31,622		48.8

(Reference) Equity: As of December 31, 2021: ¥30,429 million As of March 31, 2021: ¥31,511 million

2. Dividends

				Annual dividends
		1st quarter-end	2nd quarter-end		3rd quarter-end	Year-end	Total
		Yen	Yen		Yen	Yen	Yen
Fiscal year ended		-	0.00		-	0.00	0.00
March 31, 2021
Fiscal year ending		-	0.00		-
March 31, 2022
Fiscal year ending
March 31, 2022						0.00	0.00
(Forecast)

(Note) Revision to the dividend forecast announced most recently: Yes

For revisions to the dividend forecast, please refer to "Notice of Revisions to Dividend Forecast (No Dividends)," which was separately announced today.

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 profit	Ordinary profit	to owners of
		per share
							parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	33,500	6.4	2,400	19.0	2,200	20.6	1,700	99.0	72.56

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

* Notes:

(1) Changes in significant subsidiaries during the period under review

(Changes in specified subsidiaries resulting in changes in scope of consolidation): Yes

Newly included: 2 companies KOSAIDO NEXT Co., Ltd. KOSAIDO HR SOLUTIONS Co., Ltd.

1. Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: Yes
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 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
4. Total number of issued and outstanding shares (common stock)
5. 1. Total number of issued and outstanding shares at the end of the period (including treasury shares):

December 31, 2021:	24,925,300 shares
March 31, 2021:	24,925,300 shares
2) Total number of treasury shares at the end of the period:
December 31, 2021:	2,508,126 shares
March 31, 2021:	10,656 shares
3) Average number of shares during the period:
Nine months ended December 31, 2021:	23,761,539 shares
Nine months ended December 31, 2020:	24,913,644 shares

• These quarterly 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

The Company implemented the acquisition of treasury shares based on the resolution of its Board of Directors' meeting held on August 26, 2021. The impact of the said acquisition of treasury shares has been taken into account in the calculation of "Basic earnings per share" stated in the Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022.

Financial results forecasts and other forward-looking statements contained herein are based on information currently available to the Company and certain assumptions that are deemed reasonable, and the Company does not in any way guarantee the achievement of the forecasts. Actual results may differ significantly due to various factors. For the preconditions for the forecasts herein and cautionary notes on these financial results forecasts, please refer to "Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the Attachments.

2. Quarterly Consolidated Financial Statements and Primary Notes

1. Quarterly Consolidated Balance Sheets

			(Million yen)
		As of March 31, 2021	As of December 31, 2021
Assets
Current assets
Cash and deposits		13,154	17,490
Notes and accounts receivable - trade	5,604	5,129
Securities		1,000	－
Merchandise and finished goods	99	106
Work in process		384	1,211
Raw materials and supplies	190	180
Other		1,004	1,560
Allowance for doubtful accounts	(75)	(71)
Total current assets		21,364	25,606
Non-current assets
Property, plant and equipment
Buildings and structures, net	15,270	14,700
Machinery, equipment and vehicles, net		4,553	4,561
Land	13,984	13,984
Tools, furniture and fixtures, net		2,680	2,663
Other, net	305	250
Total property, plant and equipment		36,794	36,161
Intangible assets	657	918
Investments and other assets
Investment securities	3,242	3,139
Other		2,627	2,422
Allowance for doubtful accounts	(108)	(91)
Total investments and other assets		5,761	5,471
Total non-current assets	43,214	42,550
Deferred assets		14	6
Total assets	64,592	68,164
Liabilities
Current liabilities
Notes and accounts payable - trade		2,293	2,093
Short-term borrowings	1,300	5,500
Current portion of long-term borrowings		5,334	5,574
Current portion of bonds payable	500	300
Income taxes payable		521	206
Provision for bonuses	289	72
Other		2,871	4,111
Total current liabilities		13,109	17,858

1

			(Million yen)
		As of March 31, 2021	As of December 31, 2021
Non-current liabilities
Bonds payable	320	180
Long-term borrowings		17,528	17,812
Deferred tax liabilities	229	229
Deferred tax liabilities for land revaluation		139	139
Retirement benefit liability	16	17
Other		1,626	1,396
Total non-current liabilities	19,860	19,776
Total liabilities		32,970	37,634
Net assets
Shareholders' equity
Share capital	1,001	1,001
Capital surplus		6,754	6,755
Retained earnings	23,342	24,907
Treasury shares		(6)	(2,502)
Total shareholders' equity	31,091	30,161
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	950	779
Revaluation reserve for land		(459)	(459)
Foreign currency translation adjustment	(70)	(51)
Total accumulated other comprehensive income		420	268
Non-controlling interests	110	99
Total net assets		31,622	30,529
Total liabilities and net assets		64,592	68,164

2