BML : Consolidated Earnings Report for Fisical 2020

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Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. This summary does not constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on these statements. Should there be any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.

May 13, 2021

CONSOLIDATED EARNINGS REPORT FOR FISCAL 2020

	[Japanese GAAP]
Company Name:	BML, Inc.
Stock Listing:	Tokyo Stock Exchange
Stock Code:	4694
URL:	http://www.bml.co.jp/
Representative:	Kensuke Kondo, President and Representative Director
Contact:	Norihisa Takebe, Executive Officer
	Tel: [phone]

Scheduled Date for the General Meeting of Shareholders:	June 29, 2021
Scheduled Date for Filing of Annual Securities Report:	June 29, 2021
Scheduled Date for Payment of Dividends:	June 30, 2021
Creation of Supplementary Explanatory Materials:	Yes
Holding of Explanatory Meeting:	Yes

1. Results for Fiscal 2020 (April 1, 2020-March 31, 2021)			(Rounded down to nearest million yen)
(1) Consolidated business results								(% indicates year-on-year changes)
	Net sales			Operating income		Ordinary income		Profit attributable to
						owners of parent
	¥ million		%	¥ million		%		¥ million		%			¥ million		%
FY2020	138,571		14.8	19,936		104.2			20,803		103.7			13,711		115.1
FY2019	120,732		3.1	9,763		(6.6)			10,211		(6.1)			6,375		(4.1)
(Note) Comprehensive income: FY2020	¥14,638 million / 120.5%			FY2019 ¥6,639 million / 1.2%
	Profit attributable		Profit attributable							Ordinary income to		Operating income
	to owners of parent		to owners of parent		Return on equity
				total assets				to sales ratio
	per share		per share (diluted)
	Yen			Yen		%					%				%
FY2020	337.44			337.09					16.7			16.3				14.4
FY2019	151.27			151.07					8.3					8.8				8.1
(Reference) Equity in earnings (losses) of affiliates: FY2020 ¥- million	FY2019 ¥- million

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(2) Consolidated financial position

	Total assets		Net assets	Equity ratio	Net assets per share
	¥ million		¥ million	%	Yen
As of March 31, 2021	139,174		93,123	63.5	2,174.27
As of March 31, 2020	116,273		80,422	65.4	1,873.36
(Reference) Equity capital: As of March 31, 2021	¥88,377 million	As of March 31, 2020 ¥76,099 million

(3) Consolidated cash flow position

			Operating activities	Investing activities		Financial activities		End-of-year cash and
					cash equivalents
			¥ million	¥ million		¥ million			¥ million
FY2020			19,574		(4,584)		(3,382)			59,853
FY2019			12,771		(5,213)		(8,784)			48,246
2. Dividends
				Dividends per share				Total		Dividend	Dividend on
			First	Second		Third	Year-end		Full year		amount	payout ratio		net asset
					(Full year)	(Consolidated)	(Consolidated)
		quarter-end	quarter-end	quarter-end
			Yen	Yen		Yen	Yen			Yen		¥ million		%	%
FY2019			-	20.00		-	25.00			45.00	1,867		29.7	2.4
FY2020			-	20.00		-	50.00			70.00	2,845		20.7	3.5
FY2021			-	35.00		-	35.00			70.00				22.4
(forecast)

3. Consolidated Cumulative Earnings Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021-March 31, 2022)

										Profit
	Net sales		Operating income	Ordinary income	Profit attributable to	attributable to
		owners of parent	owners of parent
										per share
	¥ million		%	¥ million	%	¥ million	%	¥ million	%	Yen
Full year	142,300		2.7	19,200	(3.7)	20,100	(3.4)	12,700	(7.4)	312.45

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• Notes

1. Changes in major subsidiaries during the period (changes in specified subsidiaries due to changes in the scope of consolidation): None

Increases: -

Decreases: -

1. Changes in accounting policies, accounting estimates, and restatements

1. Changes in accounting policies in conjunction with revisions to accounting standards: None
2. Other changes: None
3. Changes in accounting estimates: None
4. Restatements: None

1. Number of outstanding stocks (common stock)

a. Number of outstanding stocks at the end of the fiscal year (treasury stocks included)

	As of March 31, 2021	44,014,726	As of March 31, 2020	44,014,726
b. Number of treasury stocks at the end of period
	As of March 31, 2021	3,367,662	As of March 31, 2020	3,393,015
c. Average number of shares during the period
	FY2020	40,634,125	FY2019	42,147,235

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Reference: Non-Consolidated Results of Operations

1. Non-Consolidated Business Results for Fiscal 2020 (April 1, 2020 - March 31, 2021)

1. Non-consolidatedmanagement performance

(% indicates year-on-year changes)

		Net sales		Operating income	Ordinary income			Profit attributable to
					owners of parent
		¥ million	%		¥ million		%	¥ million	%		¥ million		%
	FY2020	110,583	16.4		13,276		138.7		14,913	115.5		10,562		113.2
	FY2019	95,002	2.9		5,561		(9.7)		6,921	(7.4)		4,955		(6.6)
		Profit attributable to owners of			Profit attributable to owners of
		parent per share			parent per share (diluted)
				Yen								Yen
	FY2020				259.95							259.68
	FY2019				117.57							117.41
	(2) Non-consolidated financial position
				Total assets		Net assets			Equity ratio		Net assets per share
				¥ million		¥ million				%				Yen
	As of March 31, 2021			108,981			68,585			62.9			1,686.26
	As of March 31, 2020			91,790			59,792			65.1			1,470.46
(Reference) Equity capital: As of March 31, 2021 ¥68,541 million		As of March 31, 2020 ¥59,732 million

Notes:

• The earnings report is exempted from auditing by a certified public accountant or an audit firm.
• Disclaimer regarding appropriate use of forecasts and related points of note

Earnings forecasts contained in these materials are based on certain assumptions judged to be reasonable and on the information available when the forecasts were made. However, the Company makes no guarantee that these forecasts will be achieved. Actual results may differ significantly from the forecasts due to a variety of factors. Please refer to "(4) Forecasts" under "1. Overview of Operating Results" (page 7) of this earnings report concerning financial forecasts such as the assumptions used for financial forecasts and factors that could cause these assumptions to change, as well as cautionary notes.

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1. Overview of Operating Results

(1) Overview of operating results in the fiscal period under review

In the consolidated fiscal year under review, the Japanese economy was in a severe situation due to the profound impact of the COVID-19 pandemic, including restrictions imposed on personal consumption and corporate activities by the government declaring a state of emergency during which people were requested to refrain from going out and certain businesses to close temporarily.

In this business environment, net sales for the consolidated fiscal year under review were ¥138,571 million, an increase of 14.8% year on year, and operating income was ¥19,936 million, an increase of 104.2% year on year. Ordinary income increased 103.7% year on year to ¥20,803 million, and profit attributable to owners of parent increased 115.1% year on year to ¥13,711 million. The contract clinical testing business was faced with patients refraining from seeking medical care due to COVID-19 concerns, but since June 2020, the situation has been gradually recovering after the lifting of the state of emergency. Still, the business environment remained challenging as operating activity restriction and competition with peer companies continued.

Conditions by business segment are described below.

In the clinical testing business, the BML Group made efforts in new customer acquisition, and sought to enhance business performance by implementing marketing activities to further cultivate sales of new testing items, unique testing items, priority testing items, and others. With respect to testing for the novel coronavirus (SARS-CoV-2), the Company worked to increase its capacity and enhance its system to respond to a surge in testing demand, and is now capable of conducting over 30,000 tests per day in 10 laboratories nationwide. This has actually led to a significant increase in the quantity of contract tests. As a result, net sales in the clinical testing business increased 16.8% year on year.

The food hygiene business recorded decreases notably in the areas of food consulting and intestinal bacteria testing due in part to customers voluntarily restricting their operations in the face of the COVID-19 pandemic, although signs of recovery are emerging, and as a result, net sales decreased by 12.4% year on year.

As a consequence of the above, net sales in the testing business overall increased 15.6%.

In the medical informatics business, despite restriction on sales activities, a 0.3% increase year on year in net sales was achieved through steady response to replacement demand and firmness of maintenance sales. With respect to the cloud-based electronic patent chart system, release is scheduled for April 2022.

In other businesses, the dispensing pharmacy business was affected by a decrease in outpatient visits due to the COVID-19 pandemic as well as revision of medical service fees (reduction in drug prices), while the SMO* business also saw declining sales, causing net sales overall to decrease by 4.1% year on year.

• Site Management Organization (SMO): An independent organization that contracts with a specific medical institution to support clinical trials specific to that institution.

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