BML : Consolidated Earnings Report for Fisical 2021

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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, 2022

CONSOLIDATED EARNINGS REPORT FOR FISCAL 2021

	[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, Director and Managing Executive Officer
	Tel: [phone]

Scheduled Date for the General Meeting of Shareholders:	June 29, 2022
Scheduled Date for Filing of Annual Securities Report:	June 29, 2022
Scheduled Date for Payment of Dividends:	June 30, 2022
Creation of Supplementary Explanatory Materials:	Yes
Holding of Explanatory Meeting:	Yes

1. Results for Fiscal 2021 (April 1, 2021-March 31, 2022)		(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	%
FY2021	186,067		34.3	48,889		145.2		51,077		145.5		33,741	146.1
FY2020	138,571		14.8	19,936		104.2		20,803		103.7		13,711	115.1
(Note) Comprehensive income: FY2021	¥34,689 million / 137.0%		FY2020 ¥14,638 million / 120.5%
		Profit attributable		Profit attributable					Ordinary income to		Operating income
		to owners of parent	to owners of parent	Return on equity
		per share		per share (diluted)					total assets			to sales ratio
		Yen			Yen	%				%			%
FY2021		833.24			832.62				33.0		32.1			26.3
FY2020		337.44			337.09				16.7		16.3			14.4
(Reference) Equity in earnings (losses) of affiliates: FY2021 ¥- million		FY2020 ¥- 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, 2022	179,200		121,684	64.8	2,909.29
As of March 31, 2021	139,174		93,123	63.5	2,174.27
(Reference) Equity capital: As of March 31, 2022	¥116,163 million	As of March 31, 2021 ¥88,377 million

(3) Consolidated cash flow position

			Operating activities	Investing activities		Financial activities		End-of-year cash and
					cash equivalents
			¥ million	¥ million		¥ million			¥ million
FY2021			45,603		(7,297)		(9,828)			88,360
FY2020			19,574		(4,584)		(3,382)			59,853
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		%	%
FY2020			-	20.00		-	50.00			70.00	2,845		20.7	3.5
FY2021			-	35.00		-	85.00			120.00	4,817		14.4	4.7
FY2022			-	40.00		-	40.00			80.00				28.5
(forecast)

3. Consolidated Cumulative Earnings Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022-March 31, 2023)

									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	146,000	(21.5)	16,500	(66.3)	17,000	(66.7)	11,000	(67.4)	280.87

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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: Yes
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 shares included)

	As of March 31, 2022	43,514,726	As of March 31, 2021	44,014,726
b. Number of treasury shares at the end of period
	As of March 31, 2022	3,586,202	As of March 31, 2021	3,367,662
c. Average number of shares during the period
	FY2021	40,494,591	FY2020	40,634,125

Reference: Non-Consolidated Results of Operations

1. Non-Consolidated Business Results for Fiscal 2021 (April 1, 2021 - March 31, 2022)

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		%
	FY2021	148,886	34.6		35,467		167.2		38,589	158.8		27,228		157.8
	FY2020	110,583	16.4		13,276		138.7		14,913	115.5		10,562		113.2
		Profit attributable to owners of			Profit attributable to owners of
		parent per share			parent per share (diluted)
				Yen								Yen
	FY2021				672.41							671.91
	FY2020				259.95							259.68
	(2) Non-consolidated financial position
				Total assets		Net assets			Equity ratio		Net assets per share
				¥ million		¥ million				%				Yen
	As of March 31, 2022			138,366			89,796			64.9			2,248.06
	As of March 31, 2021			108,981			68,585			62.9			1,686.26
(Reference) Equity capital: As of March 31, 2022 ¥89,761 million		As of March 31, 2021 ¥68,541 million

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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

Looking at the Japanese economy in the consolidated fiscal year under review, weakness persisted in some sectors, although signs of recovery were observed on the back of progress in COVID-19 vaccinations and the effects of various policy measures. With a resurgence of COVID-19 cases due to the emergence of variants, the outlook remains uncertain.

Under these circumstances, the contract clinical testing business remained in a challenging environment given the lackluster trend in the number of patients due to the spread of COVID-19 while competition among companies continued. The market, however, is expanding, reflecting growth in demand for COVID-19-related testing.

In this business environment, both net sales and profit for the fiscal year under review increased significantly. Net sales for the consolidated fiscal year under review were ¥186,067 million, an increase of 34.3% year on year, and operating income was ¥48,889 million, an increase of 145.2% year on year. Ordinary income increased by 145.5% year on year to ¥51,077 million, and profit attributable to owners of parent increased by 146.1% year on year to ¥33,741 million.

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. Regarding testing related to COVID-19, orders for PCR testing increased with the rise in the number of new COVID-19 cases. Meanwhile, operations in contract screening testing and genomic analysis for identification of variants were launched. Although it is difficult to predict how the infection situation will develop, the Group will work on reinforcing its testing system related to COVID-19 in order to be able to respond to various changes in the situation. As a result, net sales in the clinical testing business increased by 36.2% year on year.

In the food hygiene business, net sales increased by 5.1% year on year, reflecting a recent recovery notably in the areas of food consulting and norovirus testing. Still, the business environment remains severe in view of such possible impact of COVID-19 as the emergence of new variants, which could lead to postponement or cancellation of store inspection or other consequences.

As a result of the above, net sales in the testing business overall increased by 35.2%.

In the medical informatics business, despite restrictions on sales activities targeting new clients, sales improved by 14.3% year on year thanks to an increase in the number of requests for online certification checks and solid maintenance sales attributable to the greater number of facilities at which systems are installed. We released the cloud-based electronic patient chart system in April 2022.

In other businesses, the dispensing pharmacy business was affected by a revision of medical service fees (reduction in drug prices), but net sales recorded an increase of 3.7% year on year, reflecting a rebound in the number of outpatient visits from last year's decline caused by the spread of COVID-19.

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