ORo : Summary of Consolidated Financial Results for the Six Months Ended June 30, 2021

Percentages indicate year-on-yearchanges

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 Six Months Ended June 30, 2021 (Based on Japanese GAAP)

			August 12, 2021
Company name:	ORO Co., Ltd
Stock exchange listing:	TSE
Stock code:	3983	URL	https://www.oro.com
Representative:	Atsushi Kawata, Representative Director and President
Inquiries:	Yasuhisa Hino, Senior Managing Director and General Manager for Corporate Department TEL [phone]

Scheduled date to file Quarterly Securities Report:	August 13, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	None

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2021 (from January 1, 2021 to June 30, 2021)

(1) Consolidated operating results (cumulative)

	Net sales		Operating profit		Ordinary profit		Profit attributable to
				owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%
Six months ended June 30, 2021	2,714		9.5	979		42.6	975		38.8	660	38.7
Six months ended June 30, 2020	2,479		7.8	686		26.2	702		29.3	476	32.5

Note: Comprehensive income Six months ended June 30, 2021:

683 million yen

[46.7%]

Six months ended June 30, 2020:

465 million yen

[33.1%]

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended June 30, 2021

40.61

-

Six months ended June 30, 2020

28.70

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of June 30, 2021

7,300

6,013

82.4

As of December 31, 2020

8,608

7,216

83.8

Reference: Equity capital

As of June 30, 2021:

6,013

million yen

As of December 31, 2020:

7,216 million yen

2. Cash dividends

Annual dividends per share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended December 31, 2020

-

0.00

-

10.00

10.00

Year ending December 31, 2021

-

0.00

Year ending December 31, 2021 (Forecast)

-

10.00

10.00

Note: Revisions to most recently released dividend forecast

: None

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Full year

6,050

15.5

1,931

13.1

1,940

13.2

1,338

13.3

80.63

Note: Revisions to most recently released earnings forecast

: None

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

None

None

(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:	None
Changes in accounting policies due to other reasons:	None
Changes in accounting estimates:	None
Restatement of prior period financial statements:	None

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2021		16,606,453	shares	As of December 31, 2020	16,606,453	shares
Number of treasury shares at the end of the period
As of June 30, 2021		495,544	shares	As of December 31, 2020	331	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2021		16,270,937	shares	Six months ended June 30, 2020	16,602,080	shares

• This report is exempt from the quarterly review by certified a public accountant or audit firm.
• Explanation concerning appropriate use of the earnings forecast and other matters to note
  (Caution regarding forward-looking statements)
  Earnings forecasts and other forward-looking statements contained in this document are based on information available at the time of this document's preparation and on certain assumptions that are deemed to be reasonable. These forward-looking statements are not guarantees of future performance, and actual results, performance, achievements or financial position may differ materially from those expressed or implied herein due to a range of factors.
  (Method of obtaining supplementary materials to quarterly financial results)
  Supplementary materials to financial results are disclosed on TDnet and the Company's website on the same day.

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○Accompanying Materials - Contents

1. Quarterly consolidated financial statements and main notes …………………………………………… 4

(1) Consolidated balance sheets …………………………………………………………………………… 4

(2) Consolidated statements of income and comprehensive income ……………………………………… 6

(3) Consolidated statements of cash flows ………………………………………………………………… 8

(4) Notes on consolidated financial statements …………………………………………………………… 9 (Note on the going-concern assumption) …………………………………………………………… 9 (Note on significant changes in the amount of shareholders' equity) …………………………………9 (Segment information) ……………………………………………………………………………… 9

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1. Quarterly consolidated financial statements

(1) Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2020	As of June 30, 2021
Assets
Current assets
Cash and deposits	6,293,840	5,704,507
Notes and accounts receivable - trade	1,370,614	680,185
Work in process	153,376	182,880
Raw materials and supplies	3,073	3,103
Other	100,355	90,087
Allowance for doubtful accounts	(1,120)	(3,295)
Total current assets	7,920,138	6,657,468
Non-current assets
Property, plant and equipment	454,454	410,907
Intangible assets	31,233	33,669
Investments and other assets
Investment securities	16,541	12,762
Deferred tax assets	88,624	86,188
Other	98,290	100,170
Allowance for doubtful accounts	(915)	(915)
Total investments and other assets	202,540	198,205
Total non-current assets	688,229	642,782
Total assets	8,608,368	7,300,251

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			(Thousands of yen)
		As of December 31, 2020	As of June 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	288,743	113,211
Income taxes payable	280,526	335,406
Provision for bonuses	53,222	51,056
Provision for loss on order received	30,132	31,636
Other	565,653	588,352
Total current liabilities	1,218,278	1,119,663
Non-current liabilities
Asset retirement obligations	114,799	114,368
Other	58,471	52,653
Total non-current liabilities	173,271	167,022
Total liabilities	1,391,550	1,286,686
Net assets
Shareholders' equity
Capital stock	1,193,528	1,193,528
Capital surplus	1,103,528	1,103,817
Retained earnings	4,922,166	5,416,836
Treasury shares	(942)	(1,721,812)
Total shareholders' equity	7,218,281	5,992,370
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	7,523	4,661
Foreign currency translation adjustment	(8,987)	16,533
Total accumulated other comprehensive income	(1,463)	21,194
Total net assets	7,216,818	6,013,565
Total liabilities and net assets	8,608,368	7,300,251

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