WingArc1st : Consolidated Financial Results for the Fiscal Year Ended February 28, 2022(under IFRS)

Note:This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the Fiscal Year Ended February 28, 2022

(under IFRS)

April 13, 2022

Company name:	WingArc1st Inc.
Listing:	Tokyo Stock Exchange
Securities code:	4432
URL:	https://www.wingarc.com/en/
Representative:	Jun Tanaka, President, Executive Officer and CEO
Inquiries:	Taisuke Fujimoto, Director, Executive Officer and CFO
TEL:	[phone]

Scheduled date of annual general meeting of shareholders:	May 25, 2022
Scheduled date to commence dividend payments:	May 11, 2022
Scheduled date to file annual securities report:	May 26, 2022
Preparation of supplementary material on financial results:	Yes
Holding of financial results presentation meeting:	Yes (for institutional investors and
analysts)
(Amounts are rounded down to the nearest million yen.)

1. Consolidated financial results for the fiscal year ended February 28, 2022

(from March 1, 2021 to February 28, 2022)

(1) Consolidated operating results

(Percentages indicate year-on-year changes.)

Revenue	Operating profit	Profit before income taxes	Profit
Fiscal year ended February 28, 2022 February 28, 2021	Millions of yen 19,833 18,285	% 8.5 (2.1)	Millions of yen 5,986 3,207	% 86.7 (43.6)	Millions of yen 5,910 3,153	% 87.4 (42.9)	Millions of yen 4,353 2,452	% 77.5 (39.8)

Profit attributable to equity holders of the parent	Total comprehensive income	Basic earnings per share	Diluted earnings per share
Fiscal year ended February 28, 2022 February 28, 2021	Millions of yen 4,352 2,452	% 77.5 (39.8)	Millions of yen 4,532 2,774	% 63.3 (34.7)	Yen 132.30 79.45	Yen 126.48 79.45

Return on equity attributable to equity holders of the parent	Ratio of profit before income tax to total assets	Ratio of operating profit to revenue
Fiscal year ended February 28, 2022 February 28, 2021	% 15.5 10.0	% 10.3 5.5	% 30.2 17.5

Ratio of operating profit

(Reference) Share of profit (loss) of investments accounted for using equity method

February 28, 2022 ¥- million

February 28, 2021 ¥- million

Notes: 1. The Company's shares were unlisted as of February 28, 2021, and although stock acquisition rights exist, vesting is conditional on listing, and therefore stock acquisition rights are not included in the calculation of the diluted earnings per share for the fiscal year ended February 28, 2021.

2. Effective the fiscal year ended February 28, 2022, the Company has adopted a share-based remuneration system which utilizes an officer remuneration BIP trust, and shares of the Company held by the trust are included in treasury shares. In line with this, for the calculation of basic earnings per share and diluted earnings per share, the number of the Company's own shares held by the trust was included in the number of treasury shares, which are excluded from the calculation for the weighted average number of ordinary shares outstanding during the period.

(Reference)Fiscal year ended

February 28, 2022 February 28, 2021

EBITDA

Millions of yen

7,260 4,444

Adjusted EBITDAAdjusted profit attributable to equity holders of the parent

%	Millions of yen	%
63.4	7,314	11.1	4,392	6.7
(36.2)	6,583	(7.6)	4,115	(2.0)

% Millions of yen

Note:The Company uses EBITDA, adjusted EBITDA and adjusted profit attributable to equity holders of the parent as important management indicators. For information about each indicator, refer to "(Notes when referring to summary information)" below.

(2) Consolidated financial position

Total assets	Total equity	Equity attributable to equity holders of the parent	Ratio of equity attributable to equity holders of the parent	Equity attributable to equity holders of the parent per share
As of February 28, 2022 February 28, 2021	Millions of yen 58,919 55,909	Millions of yen 30,619 25,677	Millions of yen 30,543 25,676	% 51.8 45.9	Yen 901.71 836.43

(3) Consolidated cash flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of the period
Fiscal year ended February 28, 2022 February 28, 2021	Millions of yen 6,439 4,952	Millions of yen (532) (134)	Millions of yen (2,084) (4,646)	Millions of yen 9,016 5,170

2. Cash dividends

Dividends per share
First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Annual total
Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022	Yen 0.00 0.00	Yen 0.00 20.60	Yen 0.00 0.00	Yen 24.00 22.00	Yen 24.00 42.60
Fiscal year ending February 28, 2023 (Forecast)	0.00	21.30	0.00	21.30	42.60

Total cash dividends (annual)	Payout ratio (consolidated)	Ratio of dividends to equity attributable to equity holders of the parent (consolidated)
Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022	Millions of yen 736 1,443	% 30.0 33.2	% 3.0 4.7
Fiscal year ending February 28, 2023 (Forecast)	42.2

to equity attributable

3. Consolidated earnings forecasts for the fiscal year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)

(Percentages indicate year-on-year changes.)

Adjusted profit

Revenue

Millions of yen

%

Operating profit	Adjusted EBITDA	attributable to equity
holders of the parent
Millions of yen	Millions of yen

%

%Millions of yen

%

Fiscal year ending

February 28, 2023

21,000

5.9

4,750

(20.6)

6,000

(18.0)

3,450

(21.5)

* Notes

• (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): Yes

  Newly included: 1 company (Name) traevo Inc.

• (2) Changes in accounting policies and changes in accounting estimates

  • (i) Changes in accounting policies required by IFRS: None

  • (ii) Changes in accounting policies due to other reasons: None

(iii) Changes in accounting estimates:

None

(3) Number of issued shares (ordinary shares)a. Total number of issued shares at the end of the period (including treasury shares)

As of February 28, 2022	34,372,370 shares
As of February 28, 2021	31,198,000 shares

b. Number of treasury shares at the end of the period

As of February 28, 2022	500,000 shares
As of February 28, 2021	500,000 shares

c. Average number of shares outstanding during the period

For the fiscal year ended February 28, 2022	32,898,706 shares
For the fiscal year ended February 28, 2021	30,862,384 shares

(Reference) Summary of Non-consolidated Financial Results (under IFRS)

Non-consolidated financial results for the fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)

(1) Non-consolidated operating results

(Percentages indicate year-on-year changes.)

Net sales	Operating profit	Ordinary profit	Profit
Fiscal year ended February 28, 2022 February 28, 2021	Millions of yen 19,141 17,669	% 8.3 (2.3)	Millions of yen 3,538 2,480	% 42.7 (23.6)	Millions of yen 3,504 2,426	% 44.4 (20.3)	Millions of yen 2,154 261	% 724.5 (85.8)

Basic earnings per share	Diluted earnings per share
Fiscal year ended February 28, 2022 February 28, 2021	Yen 65.49 8.47	Yen 62.61 -

(2) Non-consolidated financial position

Total assets	Net assets	Equity-to-asset ratio	Net assets per share
As of February 28, 2022 February 28, 2021	Millions of yen 43,745 43,064	Millions of yen 17,432 14,854	% 39.8 34.3	Yen 514.11 473.71

(Reference) Equity	February 28, 2022	¥17,414 million
February 28, 2021	¥14,778 million

In the fiscal year ended February 28, 2021, the Company reviewed (cancelled) a portion of the rental contract for the Company head office and recorded loss on retirement of non-current assets and loss on cancellation of rental contracts of the head office, which resulted in a difference between the actual results of the previous fiscal year and the actual results of the current fiscal year.

* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

*Proper use of earnings forecasts, and other special items

(Caution concerning forward-looking statements)

The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual business and other results may differ substantially due to various factors.

(Method of accessing supplementary material on financial results and contents of financial results presentation meeting)

The Company will hold a live online presentation meeting for institutional investors and analysts on Wednesday, April 13, 2022. The material on financial results to be used on the day will be posted on the Company's website.

(Notes when referring to summary information)

• 1. EBITDA = Operating profit + Depreciation and amortization expenses

• 2. From the fiscal year ended February 29, 2020, due to the adoption of IFRS 16, the right of use related to office leases is recognized as a right-of-use asset, and depreciation related to this asset is also recorded. However, in the calculation of EBITDA, depreciation related to this right-of-use asset is excluded from "Depreciation and amortization expenses."

• 3. Adjusted EBITDA = EBITDA + One-time expenses

• 4. Adjusted profit attributable to equity holders of the parent = Profit attributable to equity holders of the parent + One-time expenses - Tax effect adjustment

• 5. EBITDA, Adjusted EBITDA and Adjusted profit attributable to equity holders of the parent are not measures prescribed by IFRS, but rather are financial measures that the Group believes are useful for investors to evaluate the Group's performance.

• 6. EBITDA, Adjusted EBITDA and Adjusted profit attributable to equity holders of the parent should not be considered as alternative measures to other measures presented in accordance with IFRS, as they exclude some of the items that affect quarterly profit and have significant limitations as a means of analysis. EBITDA, Adjusted EBITDA, and Adjusted profit attributable to equity holders of the parent for the Group may not be comparable to the measures used by other companies in the industry due to different calculation methods from those used for the same or similar measures. As a result, their usefulness may be reduced.