OLBA HEALTHCARE : Summary of Financial Results for the second quarter 2022

Consolidated Financial Results

for the Six Months Ended December 31, 2021

[Japanese GAAP]

January 31, 2022

Company name: OLBA HEALTHCARE HOLDINGS, Inc.

Stock exchange listing: Tokyo Stock Exchange

Code number: 2689

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

Representative: Yohei Maeshima, President CEO

Contact: Nobuharu Murata, Managing Director and General Manager, Administrative Department

Phone: [phone]

Scheduled date of filing quarterly securities report: February 14, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Unavailable

Schedule of quarterly financial results briefing session: Scheduled (for securities analysts)

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

1. Consolidated Financial Results for the Six Months Ended December 31, 2021 (July 1, 2021 to December 31, 2021)

(1) Consolidated Operating Results				(% indicates changes from the previous year.)
								Net income
		Net sales		Operating income	Ordinary income	attributable to
								owners of parent
	Six months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	December 31, 2021	53,030	6.4	786	26.7	802	30.5	532	36.9
	December 31, 2020	49,861	－	620	85.2	615	86.6	389	129.7

(Note) Comprehensive income: Six months ended December 31, 2021: ¥534 million [37.2%] Six months ended December 31, 2020: ¥389 million [246.3%]

	Basic earnings	Diluted earnings
	per share	per share
Six months ended	Yen	Yen
December 31, 2021	87.57	－
December 31, 2020	63.98	－

(Note) Effective the beginning of the fiscal year ending June 30, 2022, the Company began applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and other standards. In accordance with the principle-based treatment of the standards, the consolidated operating results for the fiscal year ended June 30, 2021 have been restated retroactively. The change in net sales for the six months ended December 31, 2020 are, therefore, not presented.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of December 31, 2021	41,582	8,331	20.0
As of June 30, 2021	36,562	8,131	22.2

(Reference) Equity: As of December 31, 2021: ¥8,331 million As of June 30, 2021: ¥8,131 million

2. Dividends

			Annual dividends
	1st	2nd	3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
	Yen	Yen	Yen		Yen	Yen
Fiscal year ended June 30, 2021	－	0.00	－		50.00	50.00
Fiscal year ending June 30, 2022	－	0.00
Fiscal year ending June 30, 2022			－		50.00	50.00
(Forecast)
(Note) Revision to the forecast for dividends announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 to June 30, 2022) (% indicates changes from the previous corresponding period.)

							Net income		Basic earnings
	Net sales		Operating income	Ordinary income	attributable to
		per share
							owners of parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	105,049	2.9	1,597	3.7	1,615	4.7	1,052	6.4	173.01

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

(Note) Effective the beginning of the fiscal year ending June 30, 2022, the Company began applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and other standards. Those standards have been reflected in the figures of the consolidated financial results forecast above. The changes in net sales from the previous corresponding periods have been calculated by retroactively applying those standards to the figures for the fiscal year ended June 30, 2021.

Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): None
   Newly consolidated: None (Company Name); Removed from consolidation: None (Company Name)
2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 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

1. Total number of issued shares (common stock)
2. 1. Total number of issued shares at the end of the period (including treasury stock):
      December 31, 2021: 6,250,000 shares
      June 30, 2021: 6,250,000 shares
   2. Total number of treasury stock at the end of the period:

December 31, 2021: 163,476 shares

June 30, 2021: 167,676 shares

1. Average number of shares during the period:

Six months ended December 31, 2021: 6,084,724 shares

Six months ended December 31, 2020: 6,082,395 shares

As of December 31, 2021, 112,400 shares of the Company's stock held by the Board Benefit Trust were included in treasury stock.

• Quarterly financial results are outside the scope of the quarterly review procedures conducted by a certified public accountant or audit corporation.
• Explanation of the proper use of financial results forecast and other notes

The figures forecasted above are based on information that is available as of the date of publication of this document, and contain a wide range of uncertain factors. Actual results may differ significantly from these figures due to factors such as changes in the business environment.

2. Quarterly Consolidated Financial Statements and Principal Notes

(1) Quarterly Consolidated Balance Sheets

		(Thousand yen)
	As of June 30, 2021	As of December 31, 2021
Assets
Current assets
Cash and deposits	2,158,875	3,178,754
Notes and accounts receivable - trade	18,710,644	-
Notes and accounts receivable - trade, and	-	21,938,334
contract assets
Electronically recorded monetary claims -	2,246,521	2,705,180
operating
Merchandise	5,431,149	5,868,825
Other	557,800	510,596
Total current assets	29,104,992	34,201,690
Non-current assets
Property, plant and equipment	4,653,580	4,663,632
Intangible assets
Other	698,501	747,904
Total intangible assets	698,501	747,904
Investments and other assets	2,104,991	1,969,221
Total non-current assets	7,457,073	7,380,758
Total assets	36,562,066	41,582,449
Liabilities
Current liabilities
Notes and accounts payable - trade	16,304,571	19,628,834
Electronically recorded obligations - operating	6,824,412	6,736,401
Short-term borrowings	520,000	3,220,000
Income taxes payable	524,874	102,812
Provision for bonuses for directors (and other	-	8,376
officers)
Provision for bonuses	35,290	35,314
Other	1,909,551	1,226,342
Total current liabilities	26,118,699	30,958,081
Non-current liabilities
Long-term borrowings	275,000	165,000
Provision for share awards for directors (and	155,222	186,483
other officers)
Retirement benefit liability	398,652	417,722
Long-term accounts payable - other	279,927	278,127
Other	1,203,040	1,245,805
Total non-current liabilities	2,311,843	2,293,138
Total liabilities	28,430,543	33,251,220
Net assets
Shareholders' equity
Share capital	607,750	607,750
Capital surplus	346,954	315,704
Retained earnings	7,143,982	7,366,879
Treasury shares	(246,635)	(240,155)
Total shareholders' equity	7,852,050	8,050,178
Accumulated other comprehensive income
Valuation difference on available-for-sale	134,964	146,907
securities
Remeasurements of defined benefit plans	144,507	134,143
Total accumulated other comprehensive income	279,472	281,050
Non-controlling interests	-	-
Total net assets	8,131,522	8,331,228
Total liabilities and net assets	36,562,066	41,582,449

1. Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income
   Six Months Ended December 31

			(Thousand yen)
		For the six months ended	For the six months ended
		December 31, 2020	December 31, 2021
Net sales		49,861,455	53,030,262
Cost of sales	44,222,338	47,119,022
Gross profit		5,639,116	5,911,239
Selling, general and administrative expenses	5,018,304	5,124,434
Operating profit		620,812	786,804
Non-operating income
Interest income		240	181
Dividend income	899	768
Insurance claim income		1,944	7,415
Commission income	10,225	10,337
Electricity sale income		4,823	4,201
Subsidy income	-	2,335
Share of profit of entities accounted for using		-	3,127
equity method
Other	5,703	3,385
Total non-operating income		23,836	31,752
Non-operating expenses
Interest expenses		11,970	10,656
Share of loss of entities accounted for using equity	11,022	-
method
Electricity sale expenses		3,074	2,890
Other	3,338	2,368
Total non-operating expenses		29,406	15,916
Ordinary profit	615,242	802,641
Extraordinary income
Gain on sale of property, plant and equipment	784	3,834
Total extraordinary income		784	3,834
Extraordinary losses
Loss on retirement of property, plant and		824	2,379
equipment
Loss on sale of property, plant and equipment	-	2,675
Impairment losses		-	18,770
Total extraordinary losses	824	23,825
Profit before income taxes		615,202	782,649
Income taxes - current	128,058	78,236
Income taxes - deferred		97,968	171,570
Total income taxes	226,026	249,806
Profit		389,176	532,843
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent		389,176	532,843