E J : Summary of Consolidated Financial Results for the Nine Months Ended February 28,2022(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 Nine Months Ended February 28, 2022

(Based on Japanese GAAP)

Company name: E･J Holdings Inc.

Stock exchange listing: Tokyo

Yuji Kotani
Masanori Hamano
Scheduled date to file Quarterly Securities Report:	April 14, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

Stock code: Representative: Inquiries:

2153 URLhttps://www.ej-hds.co.jpPresident

Director

TEL [phone]

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended February 28, 2022 (from June 1, 2021 to February 28, 2022)

(1) Consolidated operating results (cumulative)

April 13, 2022

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Nine months ended February 28, 2022 Nine months ended February 28, 2021	Millions of yen 14,980 14,207	% - 22.7	Millions of yen (217) (398)	% - -	Millions of yen (80) (206)	% - -	Millions of yen (185) (248)	% - -

Earnings per share	Diluted earnings per share
Nine months ended February 28, 2022 Nine months ended February 28, 2021	Yen (11.70) (17.12)	Yen - -

(2) Consolidated financial position

Total assets	Net assets	Equity ratio
As of February 28, 2022 As of May 31, 2021	Millions of yen 37,102 37,513	Millions of yen 24,231 25,497	% 65.3 68.0

2. Cash dividends

Annual dividends per share
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended May 31, 2021 Year ending May 31, 2022	Yen - -	Yen 0.00 0.00	Yen - -	Yen 35.00	Yen 35.00
Year ending May 31, 2022 (Forecast)	40.00	40.00

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

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Earnings per share
Full year	Millions of yen 35,000	% -	Millions of yen 3,900	% -	Millions of yen 4,100	% -	Millions of yen 2,800	% -	Yen 177.13

4. Notes

• (1) Changes in significant subsidiaries during the nine months ended February 28, 2022

  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: 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 February 28, 2022 16,078,920 shares

As of May 31, 2021 16,078,920 shares

As of February 28, 2022

16,078,920 shares As of May 31, 2021

1

Number of treasury shares at the end of the period

As of February 28, 2022 467,324 shares

As of May 31, 2021 158,502 shares

As of February 28, 2022

467,324 shares As of May 31, 2021

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

Nine months ended February 28, 2022 15,866,516 shares

Nine months ended February 28, 2021 14,534,204 shares

Nine months ended February 28, 2022 15,866,516 shares Nine mon

Quarterly consolidated financial statements Consolidated balance sheets

(Millions of yen)
As of May 31, 2021	As of February 28, 2022
Assets Current assets Cash and deposits Notes and accounts receivable - trade Notes and accounts receivable - trade, and contract assets Inventories Other Allowance for doubtful accounts	18,975 3,748 - 3,219 541 (4)	8,737 - 5,032 9,647 2,133 (5)
Total current assets	26,480	25,546
Non-current assets Property, plant and equipment Buildings and structures, net Land Other, net	2,416 2,315 522	2,360 2,323 612
Total property, plant and equipment	5,254	5,296
Intangible assets Goodwill Other	987 260	893 315
Total intangible assets	1,248	1,209
Investments and other assets Investment securities Bad debts Investment property, net Deferred tax assets Retirement benefit asset Other Allowance for doubtful accounts	2,693 0 441 357 80 1,082 (125)	2,770 0 435 643 120 1,206 (126)
Total investments and other assets	4,529	5,051
Total non-current assets	11,032	11,556
Total assets	37,513	37,102

(5)

(126)

(Millions of yen)
As of May 31, 2021	As of February 28, 2022
Liabilities Current liabilities Accounts payable - operating Short-term borrowings Current portion of bonds payable Current portion of long-term borrowings Income taxes payable Advances received on service contracts in progress Contract liabilities Provision for bonuses Provision for bonuses for directors (and other officers) Provision for loss on order received Other	834 - 50 305 1,120 4,034 - - 33 232 4,111	1,176 4,000 - 213 104 - 4,473 709 - 239 863
Total current liabilities	10,721	11,781
Non-current liabilities Long-term borrowings Deferred tax liabilities Retirement benefit liability Provision for share awards for directors (and other officers) Provision for Employee Stock Ownership Plan Trust Long-term accounts payable - other Provision for loss on guarantees Other	572 53 357 52 21 197 13 26	411 39 288 68 27 188 11 54
Total non-current liabilities	1,294	1,089
Total liabilities	12,015	12,871
Net assets Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares	2,803 4,387 17,593 (84)	2,803 4,379 16,742 (471)
Total shareholders' equity	24,700	23,454
Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans	510 (0) 280	522 (0) 248
Total accumulated other comprehensive income	790	770
Non-controlling interests	7	7
Total net assets	25,497	24,231
Total liabilities and net assets	37,513	37,102

(471)

(0)

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

Consolidated statements of income (cumulative)

(Millions of yen)
Nine months ended February 28, 2021	Nine months ended February 28, 2022
Net sales Cost of sales	14,207 9,511	14,980 9,907
Gross profit	4,695	5,073
Selling, general and administrative expenses	5,094	5,291
Operating loss	(398)	(217)
Non-operating income Interest income Dividend income Share of profit of entities accounted for using equity method Rental income from real estate Other	4 24 163 23 56	10 29 66 24 59
Total non-operating income	272	190
Non-operating expenses Interest expenses Rental expenses on real estate Guarantee commission Provision of allowance for doubtful accounts Share issuance costs Settlement package Other	7 18 8 7 17 - 20	7 16 6 2 - 10 10
Total non-operating expenses	79	53
Ordinary loss	(206)	(80)
Extraordinary losses Loss on retirement of non-current assets Loss on valuation of investment securities Loss on sale of investment securities	12 9 4	1 - -
Total extraordinary losses	26	1
Loss before income taxes	(233)	(82)
Income taxes - current Income taxes - deferred	328 (313)	356 (252)
Total income taxes	15	103
Loss	(248)	(185)
Loss attributable to owners of parent	(248)	(185)

(217)

(80)

(82)

(252)

(185)

(185)