BML : Consolidated Earnings Report for the First Quarter of Fiscal 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.

August 11, 2021

CONSOLIDATED EARNINGS REPORT
FOR THE FIRST QUARTER OF 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, Managing Executive Officer
	Tel: [phone]
Scheduled Date for Filing of Quarterly Report:	August 13, 2021
Scheduled Date for Payment of Dividends:	-
Creation of Supplementary Explanatory Materials:	None
Holding of Explanatory Meeting:		None

(Rounded down to nearest million yen)

1. Results for the First Quarter of Fiscal 2021 (April 1, 2021-June 30, 2021)

(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	%
1Q of FY2021	47,092	80.4	14,052	-	14,870	-	9,937	-
1Q of FY2020	26,109	(15.3)	(108)	-	17	(99.5)	111	(94.8)

(Note) Comprehensive income: 1Q of FY2021	¥10,096 million / -%	1Q of FY2020 ¥(149) million / -%
		Profit attributable to		Profit attributable to
		owners of parent per share		owners of parent per share (diluted)
			Yen		Yen
	1Q of FY2021		244.47		244.27
	1Q of FY2020		2.74		2.74

1

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

¥ million

¥ million

%

As of June 30, 2021

146,323

101,035

65.8

As of March 31, 2021

139,174

93,123

63.5

(Reference) Equity capital: As of June 30, 2021 ¥96,229 million

As of March 31, 2021

¥88,377 million

2. Dividends

Dividends per share

First quarter-

Second quarter-

Third quarter-

Year-end

Full year

end

end

end

Yen

Yen

Yen

Yen

Yen

FY2020

―

20.00

―

50.00

70.00

FY2021

―

FY2021

35.00

―

35.00

70.00

(forecast)

(Note) Revision of dividend projection from recently announced figures: None

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

						(%	indicates	year-on-year changes)
										Profit
							Profit attributable	attributable
	Net Sales	Operating income	Ordinary income	to owners of
	to owners of parent
										parent per
										share
	¥ million	%	¥ million	%	¥ million	%	¥ million		%	Yen
Full year	154,000	11.1	32,000	60.5	33,100	59.1	20,900		52.4	514.07

(Note) Revision from recently projected results: Yes

2

* Notes

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

Increases: -

Decreases: -

1. Adoption of specific accounting methods in preparing quarterly financial statements: None
2. Changes in accounting policies and changes or revisions in accounting estimates

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 period (treasury stocks included)

	As of June 30, 2021	44,014,726	As of March 31, 2021	44,014,726
b. Number of treasury stocks at the end of the period
	As of June 30, 2021	3,367,662	As of March 31, 2021	3,367,662
c. Average number of shares during the period
	1Q ended June 30, 2021	40,647,064	1Q ended June 30, 2020	40,623,492

• The quarterly financial results are not subject to quarterly review 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 "(3) Consolidated earnings forecasts and others" under "1. Qualitative information on operating results for quarter under review" on page 5 of this earnings report concerning financial forecasts such as the assumptions used for financial forecasts, factors that could cause these assumptions to change, and cautionary notes.

3

1. Qualitative information on operating results for quarter under review

1. Operating results

In the first quarter of the consolidated fiscal year under review, the Japanese economy continued to face the profound impact of the COVID-19 pandemic, and the outlook remained uncertain as the government declared a state of emergency during which people were requested to refrain from going out and certain businesses were asked to close temporarily, thereby imposing restrictions on personal consumption and corporate activities.

Under these circumstances, the contract clinical testing business was confronted with a lackluster trend in the number of patients due to COVID-19 but also saw an expanding market amidst growth in demand for novel coronavirus-related testing. Still, the business environment remained challenging as operating activity restriction and competition with peer companies continued.

In these conditions, net sales for the first quarter of the fiscal year under review were ¥47,092 million, an increase of 80.4% year on year, and operating income was ¥14,052 million, compared with an operating loss of ¥108 million in the same period of the previous fiscal year. Ordinary income was ¥14,870 million (¥17 million in the same period of the previous fiscal year), and profit attributable to owners of parent was ¥9,937 million (¥111 million in the same period of the previous fiscal year). The large increases the BML Group achieved in both net sales and incomes reflected a solid trend in coronavirus-related testing as well as a rebound from the situation of a year earlier when people had refrained from seeking medical care due to COVID-19 concerns.

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 a solid trend in coronavirus- related testing, net sales in the clinical testing business increased by 86.0% year on year. With respect to coronavirus-related testing, the Group will continue to reinforce its testing system, including genomic analysis, in order to be able to continue responding to various changes in the situation.

In the food hygiene business, the continued impact of the COVID-19 pandemic, such as customers voluntarily restricting their operations, led to a severe situation notably in the areas of food consulting and intestinal bacteria testing. Nonetheless, with some signs of a rebound from previous-year levels, net sales increased by 30.5% year on year.

As a result of the above, net sales in the testing business overall increased 84.4% year on year.

In the medical informatics business, despite restrictions on sales activities, a gradual improvement in the situation led to an increase in net sales by 8.3% year on year. 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 revision of medical service fees (reduction in drug prices), but net sales recorded an increase of 4.4% year on year reflecting a rebound in the number of outpatient visits from last year's decline caused by the spread of COVID-19.

4

(Note) The aforementioned financial results forecasts were prepared based on information available to the Company as of the date on which this document was released. Consequently, actual results may vary with respect to the forecast amounts due to various unforeseen factors.

5

337.44

138,571

19,936

20,803

13,711

312.45

514.07

-

-

Previous forecast (A) (announced on May 13, 2021)

Revised forecast (B)

Change (B-A)

Change (%)

(Reference)

Results for the fiscal year ended March 31, 2021 (full year)

Reasons for revisions to full-yearearnings forecasts

With respect to consolidated earnings forecasts for the fiscal year ending March 31, 2022, it is projected that actual performance will exceed the forecasts announced on May 13, 2021. Therefore, as presented above, we have revised the forecasts in light of the latest situation and based on information available as of the date of publication of this document.

In the first quarter of the consolidated fiscal year under review, demand for coronavirus-relatedtesting was stronger than anticipated. Looking forward, although the effect of state of emergency and other measures as well as progress of vaccination would likely lead to a gradual decline in the number of new COVID-19cases, we expect a certain level of demand for coronavirus-relatedtesting to continue. In light of the foregoing, a revision has been made to the earnings forecast announced on May 13, 2021.

Yen

¥ million

142,300

154,000

11,700

8.2

¥ million

19,200

32,000

12,800

66.7

¥ million

20,100

33,100

13,000

64.7

Net sales

Operating

income

Ordinary

income

Profit attributable to owners of parent

¥ million

12,700

20,900

8,200

64.6

Profit

attributable to owners of parent per share

(2) Financial position

Assets, Liabilities and Net Assets

At the end of the first quarter of the consolidated fiscal year under review, total assets amounted to ¥146,323 million, a ¥7,149 million increase over the end of the previous fiscal year, net assets totaled ¥101,035 million, up ¥7,912 million over the end of the previous fiscal year, and the equity ratio was 65.8 %, a 2.3 percentage point increase over the end of the previous fiscal year.

As for the main items contributing to an increase or decrease, in the assets section, under current assets, cash and deposits increased by ¥2,448 million and notes and accounts receivable-tradeincreased by ¥4,353 million. In the liabilities section, under current liabilities, notes and accounts payable-tradeincreased by ¥1,065 million, and income taxes payable decreased by ¥1,712 million. In net assets, retained earnings increased by ¥7,904 million.

(3) Consolidated earnings forecasts and others Revisions to earnings forecasts

Revisions to full-yearconsolidated earnings forecasts for the fiscal year ending March 2022 (April 1, 2021-March31, 2022)