WITZ : Summary of Consolidated Financial Results for the Six 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.

[Delayed]Summary of Consolidated Financial Results

for the Six Months Ended February 28, 2022

(Based on Japanese GAAP)

April 14, 2022

Company name: WITZ Corporation

Stock exchange listing: Tokyo

Stock code: 4440 URLhttps://www.witz-inc.co.jp/

Representative: Inquiries:

Shuji Wakita
Scheduled date to file Quarterly Securities Report:	April 14, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes (for analysts)

President Hiroyuki Hattori Executive Director

TEL [phone]

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the Six Months ended February 28, 2022 (from September 1, 2021 to February 28, 2022)

(1) Consolidated operating results (cumulative) Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Six months ended February 28, 2022 Six months ended February 28, 2021	Millions of yen 1,078 991	% 8.8 (6.4)	Millions of yen 130 102	% 27.6 (26.4)	Millions of yen 137 106	% 29.2 (24.7)	Millions of yen 82 74	% 10.4 (18.0)

Earnings per share	Diluted earnings per share
Six months ended February 28, 2022 Six months ended February 28, 2021	Yen 19.71 18.26	Yen 19.66 17.87

(2) Consolidated financial position

Total assets	Net assets	Equity ratio
As of February 28, 2022 As of August 31, 2021	Millions of yen 2,720 2,651	Millions of yen 2,200 2,123	% 80.0 79.2

2. Cash dividends

Annual dividends per share
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended August 31, 2021 Year ending August 31, 2022	Yen - -	Yen 0.00 0.00	Yen -	Yen 6.00	Yen 6.00
Year ending August 31, 2022 (Forecast)	-	8.00	8.00

3. Forecast of consolidated financial results for the year ending August 31, 2022(from September 1, 2021 to August 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 2,430	% 10.5	Millions of yen 285	% 2.9	Millions of yen 300	% 2.0	Millions of yen 207	% 0.7	yen 49.90

3. Notes

• (1) Changes in significant subsidiaries during the Six 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: Yes

• (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
(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
Number of treasury shares at the end of the period
Average number of shares during the period (cumulative from the beginning of the fiscal year)
2

As of February 28, 2022 4,169,000 shares

As of August 31, 2021 4,160,400 shares

As of February 28, 2022 126 shares

As of August 31, 2021 126 shares

Six months ended February 28, 2022 4,162,477 shares

Six months ended February 28, 2021 4,070,576 shares

Quarterly Consolidated financial statements Consolidated balance sheets

(Thousands of yen)
As of August 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 Work in process Other	2,046,548 166,559 - 103,051 39,989	2,031,017 - 199,375 96,149 57,026
Total current assets	2,356,149	2,383,569
Non-current assets Property, plant and equipment Intangible assets Investments and other assets Insurance funds Other	26,924 8,323 138,417 121,464	27,517 18,755 144,169 146,595
Total investments and other assets	259,882	290,764
Total non-current assets	295,131	337,037
Total assets	2,651,280	2,720,606
Liabilities Current liabilities Accounts payable - trade Current portion of long-term borrowings Income taxes payable Provision for bonuses Provision for product warranties Other	26,578 632 55,064 109,343 1,190 98,178	40,447 128 58,915 85,190 1,198 92,036
Total current liabilities	290,986	277,917
Non-current liabilities Retirement benefit liability Long-term accounts payable - other Other	142,828 91,495 2,668	147,924 91,495 2,668
Total non-current liabilities	236,991	242,087
Total liabilities	527,978	520,005
Net assets Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares	606,925 541,414 951,760 (325)	611,176 545,665 1,018,911 (325)
Total shareholders' equity	2,099,775	2,175,428
Non-controlling interests	23,526	25,172
Total net assets	2,123,302	2,200,601
Total liabilities and net assets	2,651,280	2,720,606

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

(cumulative)

Consolidated statements of income (cumulative)

(Thousands of yen)
Six months ended February 28, 2021	Six months ended February 28, 2022
Net sales Cost of sales	991,383 646,490	1,078,846 642,099
Gross profit	344,892	436,747
Selling, general and administrative expenses	242,323	305,885
Operating profit	102,569	130,862
Non-operating income Surrender value of insurance policies Commission income Commission for insurance office work Subsidy income Other	1,946 41 521 1,720 58	4,038 26 532 1,355 1,139
Total non-operating income	4,287	7,093
Non-operating expenses Interest expenses Foreign exchange losses Other	9 81 5	11 - 0
Total non-operating expenses	96	12
Ordinary profit	106,760	137,943
Extraordinary income Gain on receipt of donated non-current assets	4,073	539
Total extraordinary income	4,073	539
Extraordinary losses Loss on valuation of investment securities Loss on retirement of non-current assets	- -	2,920 68
Total extraordinary losses	-	2,988
Profit before income taxes	110,834	135,493
Income taxes	35,521	51,462
Profit	75,312	84,031
Profit attributable to non-controlling interests	993	1,973
Profit attributable to owners of parent	74,318	82,057

Consolidated statements of comprehensive income (cumulative)

(Thousands of yen)
Six months ended February 28, 2021	Six months ended February 28, 2022
Profit	75,312	84,031
Comprehensive income	75,312	84,031
Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests	74,318 993	82,057 1,973