Cresco : ［Delayed］Notice of Revisions to Forecasts of Consolidated/Non-consolidated Financial Results and Forecast of Cash Dividends

Translation

Notice: This document is a 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.

To whom it may concern:		February 28, 2022
Company name:	CRESCO LTD.
Representative:	President, Executive Officer	Hiroyuki Nemoto
	(Stock code: 4674 Tokyo Stock Exchange, First Section)
Inquiries:	Director, Managing Executive	Kazuo Sugiyama
	Officer, and General Manager,

Corporate Supervisory Unit

TEL [phone]

Notice of Revisions to Forecasts of Consolidated/Non-consolidated Financial Results

and Forecast of Cash Dividends

CRESCO LTD. ("the Company") hereby announces that in light of its earnings performance, it has revised the forecasts of financial results for the fiscal year ending March 31, 2022 and cash dividends that it announced on May 10, 2021.

1. Revision to the forecast of consolidated financial results

Revision to the forecast of consolidated financial results for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

		Net sales			Operating			Ordinary		Profit		Earnings
							attributable to
				profit			profit			per share
								owners of parent
		Millions of yen		Millions of yen		Millions of yen	Millions of yen		Yen
Previous forecasts (A)	42,400		3,850		4,200		2,850	135.58
Revised forecasts (B)	44,000		4,440		4,600		3,180	151.14
Amount of change (B-A)	1,600		590		400		330		-
Percentage change (%)	3.8		15.3		9.5		11.6		-
(Reference)
Results for the previous fiscal year	39,706		3,484		4,101		2,634	125.43
ended March 31, 2021

For the consolidated financial results for the fiscal year ending March 31, 2022, net sales are expected to exceed the initial forecast as a result of vigorously promoting business expansion, centered on enhancing group-wide coordination in accordance with the Company's "Medium-Term Management Plan 2023," and including OEC Ltd. in the scope of consolidation starting from the second quarter ended September 30, 2021. In addition, regarding profits, due to an increase in revenue as well as due to improved operational efficiency for the entire Group in line with the age of the new normal following the COVID-19 pandemic, operating profit, ordinary profit and profit attributable to owners of parent are each expected to exceed the previous forecasts.

Accordingly, the forecast of financial results for the fiscal year announced on May 10, 2021 has been revised as indicated above.

2. Revision to the forecast of non-consolidated financial results

Revision to the forecast of non-consolidated financial results for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

		Net sales		Operating	Ordinary		Profit		Earnings
			profit	profit			per share
		Millions of yen	Millions of yen	Millions of yen		Millions of yen	Yen
Previous forecasts (A)	24,300		-	2,900	2,110		100.37
Revised forecasts (B)	26,000		2,800	3,190	2,315		110.03
Amount of change (B-A)	1,700		-	290	205		-
Percentage change (%)	7.0		-	10.0	9.7		-
(Reference)
Results for the previous fiscal year	22,837		2,211	2,937	2,144		102.12
ended March 31, 2021

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For the non-consolidated financial results for the fiscal year ending March 31, 2022, net sales, operating profit, ordinary profit and profit are each expected to exceed the previous forecasts as a result of vigorously promoting the IT services business and digital solutions business in accordance with the Company's "Medium-Term Management Plan 2023" and advancing various measures, including strengthening the telework system and optimizing office space in response to the COVID-19 pandemic.

Accordingly, the forecast of financial results for the fiscal year announced on May 10, 2021 has been revised as indicated above.

3. Revision to the forecast of cash dividends

		Annual dividends per share
	2nd quarter-end	Fiscal year-end	Total
Previous forecasts	Yen	Yen	Yen
-	20.00		40.00
(announced on May 10, 2021)
Revised forecasts	-	24.00		44.00
Results for
the fiscal year ending	20.00
March 31, 2022
Results for
the previous fiscal year ended	18.00	20.00		38.00
March 31, 2021

As for dividends, in principle the Company aims to continually pay out about 30% of profit attributable to owners of parent for each fiscal year, which is calculated from consolidated ordinary profit and assuming extraordinary income and losses are zero.

Concerning the dividends for the fiscal year ending March 31, 2022, in consideration of the aforementioned basic dividend policy and the current business status, the Company forecasts a fiscal year-end dividend of 24 yen per share, which, combined with the interim dividend, makes a forecasted annual dividend of 44 yen per share.

• Caution concerning the forecast of cash dividends
  The aforementioned forecast is based on information available as of the date of the announcement of this material and is made on certain assumptions deemed to be reasonable. The actual amounts of cash dividends may differ from the forecast, due to various factors including future business performances.

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