Kinjiro : Consolidated Financial Results for the Year Ended December 31, 2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Year Ended December 31, 2021

[Japanese GAAP]

Company name: Kinjiro Co.,Ltd.	February 09, 2022
Stock exchange listing: Tokyo
Code number: 4013
URL: https://www.kinjiro-e.com
Representative: Minoru Kamura	President
Contact: Shinichi Tanaka	Executive Officer
Phone: [phone]

Scheduled date of Annual General Meeting of Shareholders: March 25, 2022

Scheduled date of commencing dividend payments: March 28, 2022

Scheduled date of filing annual securities report: March 28, 2022

Availability of supplementary briefing material on annual financial results: Yes

Schedule of annual financial results briefing session: Yes

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

1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2021 (January 01, 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		3,324		(3.2)	261		(53.5)	244	(52.2)	162	(50.5)
December 31, 2020		3,432		7.7	562		22.4	511	11.2	329	(0.8)

(Note) Comprehensive income:	Fiscal year ended December 31, 2021:
	Fiscal year ended December 31, 2020:

¥	166 million	[	(49.5) %]
¥	328 million	[	(0.9) %]

	Basic earnings per	Diluted earnings per	Rate of return on	Ordinary profit to	Operating profit to
	share	share	equity	total assets ratio	net sales ratio
Fiscal year ended	Yen	Yen	%	%	%
December 31, 2021	15.94	-	1.7	2.4	7.9
December 31, 2020	40.48	-	5.7	7.6	16.4

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

(2) Consolidated Financial Position

• million
• million

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Million yen		Million yen	%	Yen
December 31, 2021	9,778		8,854	90.5	894.14
December 31, 2020	10,984		9,896	90.1	949.76
(Reference) Equity: As of	December 31, 2021:	¥	8,854 million
As of	December 31, 2020:	¥	9,896 million
(3) Consolidated Cash Flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end
	operating activities	investing activities	financing activities
	of period
Fiscal year ended	Million yen		Million yen	Million yen	Million yen
December 31, 2021	179		(587)	(1,212)	7,528
December 31, 2020	686		(96)	7,935	9,153

2. Dividends

			Annual dividends				Payout	Dividends
					Total	to net
									ratio
		1st	2nd		3rd		Year-end	Total	dividends	assets
				(consolidated)
		quarter-end	quarter-end	quarter-end			(consolidated)
Fiscal year ended		Yen	Yen		Yen		Yen	Yen	Million yen	%	%
December 31, 2020		-	0.00		-		20.00	20.00	208	63.3	3.6
December 31, 2021		-	0.00		-		17.00	17.00	168	106.7	1.8
Fiscal year ending
December 31, 2022		-	0.00		-		17.00	17.00		84.2
(Forecast)
(Note) Breakdown of the year-end dividend for the fiscal year ended December 31, 2021 :
Commemorative dividend	10.00 yen
Special dividend		10.00	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2022 (January 01, 2022 to December 31, 2022) (% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable	Basic earnings per
		to owners of parent	share
Six months ended June 30,	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
1,800		5.2	82	(54.3)	82	(54.5)	55	(53.7)	5.55
2022
Full year	3,800		14.3	300	14.6	300	22.9	200	22.8	20.20

* Notes:
(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in
scope of consolidation):	No
New	-	(Company name:	)
Exclusion:	-	(Company name:	)

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 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
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

	December 31, 2021:	10,420,000	shares
	December 31, 2020:	10,420,000	shares
2)	Total number of treasury shares at the end of the period:
	December 31, 2021:	517,500	shares
	December 31, 2020:	- shares
3)	Average number of shares during the period:
	Fiscal Year ended December 31, 2021:		10,221,892	shares
	Fiscal Year ended December 31, 2020:		8,136,256	shares

Consolidated Financial Statements

Consolidated Balance Sheets

				(Thousand yen)
			As of December 31,2020	As of December 31,2021
Assets
	Current assets
		Cash and deposits	9,234,228	7,627,459
		Notes and accounts receivable - trade	587,143	588,330
		Inventories	67,688	48,517
		Other	56,484	108,216
		Allowance for doubtful accounts	-	(3)
		Total current assets	9,945,545	8,372,520
	Non-current assets
		Property, plant and equipment
		Buildings and structures	124,971	231,538
		Accumulated depreciation	(108,502)	(115,895)
		Buildings and structures, net	16,468	115,642
		Machinery, equipment and vehicles	21,443	21,443
		Accumulated depreciation	(13,399)	(16,078)
		Machinery, equipment and vehicles, net	8,043	5,364
		Tools, furniture and fixtures	475,617	632,830
		Accumulated depreciation	(292,396)	(361,012)
		Tools, furniture and fixtures, net	183,221	271,817
		Land	165,005	250,055
		Total property, plant and equipment	372,739	642,880
		Intangible assets
		Software	118,970	403,039
		Software in progress	261,938	71,845
		Other	1,856	10,519
		Total intangible assets	382,766	485,404
		Investments and other assets
		Investment securities	1,713	-
		Deferred tax assets	65,013	54,964
		Leasehold and guarantee deposits	180,344	184,423
		Other	37,410	39,490
		Allowance for doubtful accounts	(1,220)	(1,220)
		Total investments and other assets	283,262	277,658
		Total non-current assets	1,038,768	1,405,943
	Total assets	10,984,313	9,778,464

				(Thousand yen)
			As of December 31,2020	As of December 31,2021
Liabilities
	Current liabilities
		Notes and accounts payable - trade	71,397	65,442
		Short-term borrowings	-	40,000
		Current portion of long-term borrowings	44,592	44,608
		Accounts payable - other	98,996	127,749
		Income taxes payable	181,915	36,397
		Unearned revenue	224,721	212,855
		Other	183,340	165,201
		Total current liabilities	804,964	692,254
	Non-current liabilities
		Long-term borrowings	94,451	49,843
		Provision for retirement benefits for directors (and	50,976	44,186
		other officers)
		Retirement benefit liability	120,408	120,679
		Asset retirement obligations	17,036	17,274
		Total non-current liabilities	282,872	231,983
	Total liabilities	1,087,836	924,238
Net assets
	Shareholders' equity
		Share capital	4,099,300	4,099,300
		Capital surplus	4,056,450	4,056,450
		Retained earnings	1,738,240	1,692,758
		Treasury shares	-	(999,946)
		Total shareholders' equity	9,893,990	8,848,561
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	(34)	-
		securities
		Foreign currency translation adjustment	2,521	5,664
		Total accumulated other comprehensive income	2,486	5,664
	Total net assets	9,896,477	8,854,226
Total liabilities and net assets	10,984,313	9,778,464

Consolidated Statements of Income and Comprehensive Income

Consolidated Statements of Income

		(Thousand yen)
	For the fiscal year	For the fiscal year
	ended December 31,2020	ended December 31,2021
Net sales	3,432,574	3,324,414
Cost of sales	1,162,942	1,294,885
Gross profit	2,269,632	2,029,529
Selling, general and administrative expenses	1,707,344	1,767,799
Operating profit	562,287	261,729
Non-operating income
Interest income	92	125
Subsidy income	-	595
Surrender value of insurance policies	4,782	2,045
Other	69	142
Total non-operating income	4,944	2,909
Non-operating expenses
Interest expenses	328	265
Share issuance costs	40,563	-
Going public expenses	12,133	-
Foreign exchange losses	2,397	4,876
Commission expenses	-	14,522
Other	429	786
Total non-operating expenses	55,852	20,450
Ordinary profit	511,379	244,187
Profit before income taxes	511,379	244,187
Income taxes - current	182,071	71,188
Income taxes - deferred	(8)	10,080
Total income taxes	182,063	81,269
Profit	329,315	162,918
Profit attributable to owners of parent	329,315	162,918