WITZ : Summary of Consolidated Financial Results for the Year Ended August 31, 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 Year Ended August 31, 2021

(Based on Japanese GAAP)

																				October 8, 2021
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 [phone]
Scheduled date of ordinary general meeting of shareholders:	November 26, 2021
Scheduled date to file Securities Report:			November 26, 2021
Scheduled date to commence dividend payments:			November 29, 2021
Preparation of supplementary material on financial results:			Yes
Holding of financial results meeting:							Yes	(for analysts)
												(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended August 31, 2021 (from September 1, 2020 to August 31, 2021)
(1) Consolidated operating results													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		%
Year ended August 31, 2021		2,198		(1.1)	276		(11.7)		294	(11.2)			206		(7.1)
Year ended August 31, 2020		2,222		(3.4)	313		38.1		331	8.8				221		(3.8)
			Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
					share			owners of				assets			sales
										parent/equity
				Yen			Yen				%						%				%
Year ended August 31, 2021		50.19		49.51				10.4						11.6				12.6
Year ended August 31, 2020		54.76		53.49				12.5						14.2				14.1
(2) Consolidated financial position
			Total assets			Net assets		Equity ratio	Net assets per share
			Millions of yen	Millions of yen					%						Yen
As of August 31, 2021						2,651					2,123					79.2						504.72
As of August 31, 2020						2,439					1,893					76.7						461.75
(3) Consolidated cash flows
			Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended August 31, 2021					257					(219)					14						1,646
Year ended August 31, 2020					220					(214)					(39)						1,594
2. Cash dividends
							Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
																	to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen			Yen	Yen				Yen	Yen	Millions of yen		%			%
Year ended August 31, 2020		-		0.00	-				6.00	6.00		24		11.0			1.4
Year ended August 31, 2021		-		0.00	-				6.00	6.00		24		12.0			1.2
Year ending August 31, 2022		-			0.00	-				8.00	8.00				16.0
(Forecast)

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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

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

4. Notes

(1) Changes in significant subsidiaries during the year ended August 31, 2021

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) 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:

No

Changes in accounting policies due to other reasons:

Yes

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 August 31, 2021	4,160,400	shares	As of August 31, 2020	4,054,000	shares
Number of treasury shares at the end of the period
	As of August 31, 2021	126	shares	As of August 31, 2020	30	shares
Average number of shares during the period
	Year ended August 31, 2021	4,108,141	shares	Year ended August 31, 2020	4,053,978	shares

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Consolidated financial statements

Consolidated balance sheets

		(Thousands of yen)
	As of August 31, 2020	As of August 31, 2021
Assets
Current assets
Cash and deposits	1,794,855	2,046,548
Notes and accounts receivable - trade	197,135	166,559
Merchandise and finished goods	68	-
Work in process	133,832	103,051
Raw materials and supplies	308	67
Prepaid expenses	32,120	36,631
Other	3,278	3,291
Total current assets	2,161,599	2,356,149
Non-current assets
Property, plant and equipment
Buildings and structures	38,850	37,540
Accumulated depreciation	(17,460)	(19,715)
Buildings and structures, net	21,389	17,825
Other	57,061	43,791
Accumulated depreciation	(48,647)	(34,692)
Other, net	8,413	9,098
Total property, plant and equipment	29,803	26,924
Intangible assets	10,276	8,323
Investments and other assets
Investment securities	5,551	5,551
Deferred tax assets	85,287	91,670
Insurance funds	121,924	138,417
Other	24,722	24,242
Total investments and other assets	237,485	259,882
Total non-current assets	277,565	295,131
Total assets	2,439,164	2,651,280

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		(Thousands of yen)
	As of August 31, 2020	As of August 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	50,554	26,578
Current portion of long-term borrowings	1,008	632
Income taxes payable	68,901	55,064
Accrued consumption taxes	48,342	36,881
Provision for bonuses	102,079	109,343
Provision for product warranties	2,960	1,190
Provision for loss on order received	2,155	-
Other	49,617	61,296
Total current liabilities	325,619	290,986
Non-current liabilities
Long-term borrowings	632	-
Deferred tax liabilities	1,449	2,668
Retirement benefit liability	126,500	142,828
Long-term accounts payable - other	91,495	91,495
Total non-current liabilities	220,077	236,991
Total liabilities	545,697	527,978
Net assets
Shareholders' equity
Share capital	583,789	606,925
Capital surplus	518,278	541,414
Retained earnings	769,914	951,760
Treasury shares	(71)	(325)
Total shareholders' equity	1,871,910	2,099,775
Non-controlling interests	21,556	23,526
Total net assets	1,893,467	2,123,302
Total liabilities and net assets	2,439,164	2,651,280

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

		(Thousands of yen)
	Fiscal year ended	Fiscal year ended
	August 31, 2020	August 31, 2021
Net sales	2,222,802	2,198,912
Cost of sales	1,477,066	1,428,871
Gross profit	745,736	770,040
Selling, general and administrative expenses	432,225	493,100
Operating profit	313,510	276,940
Non-operating income
Surrender value of insurance policies	12,422	2,954
Commission for insurance office work	947	1,053
Commission income	731	128
Consumption taxgain	2,077	-
Subsidy income - subsidy for research and development	23,250	9,508
Subsidy income - other	224	2,890
Other	179	802
Total non-operating income	39,833	17,336
Non-operating expenses
Interest expenses	31	22
Foreign exchange losses	36	96
Market change expenses	22,157	-
Loss on cancellation of insurance policies	27	17
Other	-	0
Total non-operating expenses	22,252	137
Ordinary profit	331,091	294,139
Extraordinary income
Gain on sales of non-current assets	127	-
Gain on receipt of donated non-current assets	-	4,073
Total extraordinary income	127	4,073
Extraordinary losses
Loss on valuation of investment securities	6,530	-
Loss on retirement of non-current assets	-	923
Total extraordinary losses	6,530	923
Profit before income taxes	324,687	297,289
Income taxes - current	104,630	93,880
Income taxes - deferred	(6,805)	(5,164)
Total income taxes	97,825	88,715
Profit	226,861	208,574
Profit attributable to non-controlling interests	4,884	2,404
Profit attributable to owners of parent	221,977	206,169

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