Needs Well : Financial Results for the Third Quarter of Fiscal Year 2021

Tokyo Stock Exchange 1st Section: Securities Code 3992

Needs Well Inc.

Financial Results

for the Third Quarter of Fiscal Year 2021

(October 1, 2020 - June 30, 2021)

August 5, 2021

1. 2021/9 3Q Financial report summary

2. 2021/9 Results forecast

3. Growth strategy

4. Reference

FY2021/9 3Q Financial Results

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1.1) Financial highlights①

Overcame the impact of COVID-19 by rapidly developing the competency of new-graduate employees and acquiring high-value-added projects, achieved significantly higher profits year on year

Results and dividend forecasts were revised upward in June 2021

10 FY2021/9

Steady progress toward increasing profit for consecutive fiscal years

[Total] (October 1, 2020 ~ June 30, 2021)

• Sales increased 4.5% YoY, gross profit increased 13.3% YoY
• Ordinary profit increased 28.9% YoY, net profit increased 32.4% YoY

[Third quarter] (April 1, 2021 ~ June 30, 2021)

• Sales increased 13.8% YoY, gross profit increased 23.6% YoY
• Ordinary profit increased 89.0% YoY, net profit increased 93.6% YoY

FY2021/9 3Q Financial Results

3

1.1) Financial highlights②
	5000	+4.5%	1400	+13.3%
-Year		1200
	YoY	YoY
4000	4,262	1000	1,076
-on
	4,078	800	950
comparisonyear Total			+29.0%	+28.9%	+32.4%
		600	YoY	YoY		YoY
			400	434	437
			200	337	339	231	306
	0		0

	Net sales	Gross profit	Operating profit	Ordinary profit	Net profit
■ Total by FY2020/9 3Q (2019/10/1-2020/6/30)	■ ■ ■ ■ ■ : Total by FY2021/9 3Q (2020/10/1-2021/6/30) Unit: million JPY

	1600		500
	1600	+13.8%
comparisonyear-on-Year quarterThird	1500	450
YoY	400
1400	1,443	350
	1400	300
	1300		250
	1200	1,268	200
	150
	1100		100
		50
	1000 0		0
		Net sales
	■ FY2020/9 3Q (2020/4/1-2020/6/30)

	+23.6%
	YoY
	366
297	+82.9%	+89.0%	+93.6%
	YoY	YoY	YoY
	127	135	100
	69	71
	51

Gross profit Operating profit Ordinary profit Net profit

■ ■ ■ ■ ■ : FY2021/9 3Q (2021/4/1-2021/6/30) Unit: million JPY

FY2021/9 3Q Financial Results

4

１．２) Tokyo Stock Exchange's market restructuring

In consideration of the Tokyo Stock Exchange's market restructuring

in April 2022, Needs Well will enact medium- and long-term

measures in seeking to satisfy the criteria to list on the Prime Market

• Although Needs Well does not currently satisfy the criteria for market capitalization of tradable shares in the Prime Market, the Company plans to release a "Plan for Compliance with Listing Criteria" upon consultation with the
  Board of Directors and apply transitional measures to transition to the Prime Market

Status of compliance with criteria for

transition to Prime Market	Increase market capitalization by
As of July 2021	improving corporate value
Number of tradable shares	Compliant	① Performance (achieving the
Market capitalization of	Non-compliant
Medium-Term Management Plan)
tradable shares		② IR/PR
Ratio of tradable shares	Compliant	③ Capital policy
		④ Sustainability
Trading value	Compliant

FY2021/9 3Q Financial Results

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