WITZ : Summary of Consolidated Financial Results for the Three Months Ended November 30, 2021 (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 Three Months Ended November 30, 2021

(Based on Japanese GAAP)

January 13, 2022

Company name:

WITZ Corporation

Stock exchange listing:

Tokyo

Stock code:

4440

URL https://www.witz-inc.co.jp/

Representative:

President

Hiroyuki Hattori

Inquiries:

Executive Director

Shuji Wakita

TEL

052-220-1218

Scheduled date to file Quarterly Securities Report:

January 13, 2022

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results: No

Holding of quarterly financial results meeting:

No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the Three Months ended November 30, 2021 (from September 1, 2021 to November 30, 2021)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Three months ended

522

9.9

73

108.8

76

104.9

50

106.4

November 30, 2021

Three months ended

475

(2.7)

35

11.9

37

(16.5)

24

(21.0)

November 30, 2020

Earnings per share

Diluted earnings per share

Yen

Yen

Three months ended

12.03

11.99

November 30, 2021

Three months ended

5.98

5.83

November 30, 2020

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of November 30, 2021

2,705

2,159

78.9

As of August 31, 2021

2,651

2,123

79.2

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 August 31, 2021

-

0.00

-

6.00

6.00

Year ending August 31, 2022

-

Year ending August 31, 2022

0.00

-

8.00

8.00

(Forecast)

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-yearchanges
	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	2,430		10.5	285		2.9	300		2.0	207		0.7	49.90

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3. Notes
(1)	Changes in significant subsidiaries during the three months ended November 30, 2021	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)
		As of November 30, 2021	4,160,400 shares	As of August 31, 2021		4,160,400 shares
	Number of treasury shares at the end of the period
		As of November 30, 2021	126 shares	As of August 31, 2021		126 shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Three months ended November 30, 2021	4,160,274 shares	Three months ended November 30, 2020	4,053,966 shares

2

Quarterly Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of August 31, 2021	As of November 30, 2021
Assets
Current assets
Cash and deposits	2,046,548	2,082,395
Notes and accounts receivable - trade	166,559	－
Notes and accounts receivable - trade, and contract assets	－	176,791
Work in process	103,051	85,016
Other	39,989	49,199
Total current assets	2,356,149	2,393,402
Non-current assets
Property, plant and equipment	26,924	26,459
Intangible assets	8,323	11,729
Investments and other assets
Insurance funds	138,417	142,408
Other	121,464	131,317
Total investments and other assets	259,882	273,726
Total non-current assets	295,131	311,915
Total assets	2,651,280	2,705,318
Liabilities
Current liabilities
Accounts payable - trade	26,578	31,674
Current portion of long-term borrowings	632	380
Income taxes payable	55,064	31,124
Provision for bonuses	109,343	41,357
Provision for product warranties	1,190	1,171
Other	98,178	198,638
Total current liabilities	290,986	304,346
Non-current liabilities
Retirement benefit liability	142,828	147,806
Long-term accounts payable - other	91,495	91,495
Other	2,668	2,668
Total non-current liabilities	236,991	241,969
Total liabilities	527,978	546,315
Net assets
Shareholders' equity
Share capital	606,925	606,925
Capital surplus	541,414	541,414
Retained earnings	951,760	986,897
Treasury shares	(325)	(325)
Total shareholders' equity	2,099,775	2,134,912
Non-controlling interests	23,526	24,090
Total net assets	2,123,302	2,159,002
Total liabilities and net assets		2,651,280	2,705,318

3

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Three months ended	Three months ended
		November 30, 2020	November 30, 2021
Net sales	475,863	522,922
Cost of sales	324,354	316,028
Gross profit	151,509	206,893
Selling, general and administrative expenses	116,077	132,898
Operating profit	35,431	73,995
Non-operating income
Surrender value of insurance policies	357	1,250
Commission for insurance office work	262	269
Commission income	28	13
Subsidy income - other	1,470	1,355
Other	11	51
Total non-operating income	2,129	2,940
Non-operating expenses
Interest expenses	5	1
Foreign exchange losses	0	－
Total non-operating expenses	5	1
Ordinary profit	37,556	76,934
Extraordinary income
Gain on receipt of donated non-current assets	－	539
Total extraordinary income	－	539
Extraordinary losses
Loss on retirement of non-current assets	－	68
Total extraordinary losses	－	68
Profit before income taxes	37,556	77,405
Income taxes	12,828	26,470
Profit	24,727	50,934
Profit attributable to non-controlling interests	482	891
Profit attributable to owners of parent		24,245	50,043

4

Consolidated statements of comprehensive income (cumulative)

		(Thousands of yen)
	Three months ended	Three months ended
	November 30, 2020	November 30, 2021
Profit	24,727	50,934
Comprehensive income	24,727	50,934
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	24,245	50,043
Comprehensive income attributable to non-controlling	482	891
interests

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