GMO Pepabo : Consolidated Financial Results for the Fiscal Year Ended December 31, 2021

Consolidated Financial Results

for the Fiscal Year Ended December 31, 2021

[Japanese GAAP]

February 7, 2022

Company name: GMO Pepabo, Inc.

Stock exchange listing: Tokyo Stock Exchange

Code number: 3633

URL: https://pepabo.com/

Representative: Kentaro Sato, CEO and President

Contact: Yoshito Igashima, CFO and Board Director

Phone: [phone]

Scheduled date of Annual General Meeting of Shareholders: March 19, 2022

Scheduled date of commencing dividend payments: March 22, 2022

Scheduled date of filing annual securities report: March 22, 2022

Availability of supplementary briefing material on annual financial results: Available

Schedule of annual financial results briefing session: Scheduled (for institutional investors and analysts)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2021 (from January 1, 2021 to December 31, 2021)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Fiscal year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
December 31, 2021	11,879	7.9	888	(4.2)	968	(1.6)	715	(13.8)
December 31, 2020	11,014	23.2	927	18.3	983	17.7	829	52.9

(Note) Comprehensive income: Fiscal year ended December 31, 2021: ¥781 million [(9.1)%] Fiscal year ended December 31, 2020: ¥860 million [73.5%]

	Basic earnings	Diluted earnings	Rate of return on	Ordinary profit	Operating profit
	per share	per share	equity	to total assets	to net sales
Fiscal year ended	Yen	Yen	%	%	%
December 31, 2021	135.22	134.47	26.2	11.3	7.5
December 31, 2020	159.07	157.86	39.2	13.5	8.4

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended December 31, 2021: ¥0 million Fiscal year ended December 31, 2020: ¥4 million

(2) Consolidated Financial Position

			Total assets		Net assets		Equity ratio	Net assets per share
			Million yen	Million yen		%	Yen
As of December 31, 2021		8,870	2,953		32.9	549.33
As of December 31, 2020		8,211	2,544		30.6	476.66
(Reference) Equity: As of December 31, 2021: ¥2,938 million
As of December 31, 2020: ¥2,515 million
(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
Fiscal year ended		Million yen		Million yen			Million yen		Million yen
December 31, 2021		669		(278)		(392)		3,620
December 31, 2020		1,253		(5)		(78)		3,622
					1

2. Dividends

		Annual dividends		Total	Payout	Dividends
						dividends	ratio	to net assets
	1st	2nd	3rd	Year-end	Total
	quarter-end	quarter-end	quarter-end	(annual)	(consolidated)	(consolidated)
Fiscal year ended	Yen	Yen	Yen	Yen	Yen	Million yen	%	%
December 31, 2020	0.00	0.00	0.00	81.00	81.00	427	50.9	20.1
December 31, 2021	0.00	0.00	0.00	68.00	68.00	360	50.3	13.3
Fiscal year ending
December 31, 2022	0.00	0.00	0.00	74.00	74.00		50.0
(Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
First half	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
－	－	－	－	－	－	－	－	－
(cumulative)
Full year	11,482	(3.3)	1,143	28.7	1,156	19.5	785	9.7	147.92

(Note) Figures of the forecast for the first half (cumulative) of the fiscal year ending December 31, 2022 are not prepared.

(Note) The Company plans to adopt the Accounting Standard for Revenue Recognition, etc. (hereinafter "Revenue Recognition Standard") from the beginning of the first quarter of the fiscal year ending December 31, 2022. Accordingly, the forecasts are based on the application of the said standard, etc. In accordance with the previous standard, for the fiscal year ending December 31, 2022, Net sales were 13,674 million yen (up 15.1% year-on-year), Operating profit 1,135 million yen (up 27.7% year-on-year), Ordinary profit 1,148 million yen (up 18.6% year-on-year) and Profit attributable to owners of parent 779 million yen (up 8.9% year-on-year).

* Notes:

1. Changes in significant subsidiaries during the fiscal year ended December 31, 2021: No (Changes in specified subsidiaries resulting in changes in scope of consolidation)
   New: None
   Excluded: None
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
4. Total number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury stock): December 31, 2021: 5,468,700 shares
      December 31, 2020: 5,468,700 shares
   2. Total number of treasury stock at the end of the period:

December 31, 2021: 161,721 shares

December 31, 2020: 191,288 shares

3) Average number of shares during the period:

Fiscal year ended December 31, 2021: 5,290,765 shares

Fiscal year ended December 31, 2020: 5,217,364 shares

2

• These financial results are outside the scope of audit by certified public accountants or audit firms
• Explanation of the proper use of financial results forecast and other notes

The statements concerning future performance presented in this document are based on currently available information and certain preconditions which the Company believes to be reasonable at this time and does not constitute a guarantee of the Company to achieve. Actual results may be substantially different from these forecasts presented herein due to various factors.

3