Needs Well : Financial Results for the Third Quarter of Fiscal Year 2022

Tokyo Stock Exchange Prime Market: Securities Code 3992

Needs Well Inc.

Financial Results

for the Third Quarter of Fiscal Year 2022

(October 1, 2021 - June 30, 2022)

August 5, 2022

1. 2022/9 3Q Financial report summary
2. 2022/9 Results forecast
3. Growth strategy
4. Reference

1.1) Financial highlights 1

Significant increase in both net sales and profit year on year, showing a strong trend of expansion

• Expanded sales channels and reinforced the customer base through active capital and business alliances and business alliances
• Expansion in telecommunications and new orders for installation of large-sized VDIs contributed to sales growth
• The Solutions Business gave momentum to our growth, driven by a paperless work environment, telework, and the revised Preservation of Electronic Records Act

Net sales 4,972 million JPY	YoY +16.7%
Ordinary profit 560 million JPY	YoY +28.2 %	Ordinary profit margin
11.3 %
	388 million JPY	YoY +26.7%	Net profit ratio
Net profit	7.8 %

Financial Results for the Third Quarter of Fiscal Year 2022

3

1.1) Financial highlights 2

Quarterly net sales and ordinary profit in FY2022/9 hit record highs in 1Q, 2Q, and 3Q

Both net sales and ordinary profit are progressing faster than forecasts

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

[Net sales by quarter]

Unit: million JPY

						Total					Total

[Ordinary profit by quarter]

700 Unit: million JPY

Total

Total

138 698

	Total	Total	5,752	1,727	6,700
	5,517
Total	5,364		(forecast)	(forecast)

600

Total Total

582

(forecast) (forecast)

5,140			1,490
	1,420	1,285
1,401
			1,718
1,268	1,373	1,268	1,443
		1,391	1,470	1,690
1,253	1,382
1,217	1,341	1,418	1,348	1,562

Total 505 514

500 467

400 123 134 175

300	88	104	71

200 133 155 174

100

121 110 92

0

145

135

170

130

186

193

181

FY2018/9	FY2019/9	FY2020/9	FY2021/9	FY2022/9
1Q		2Q	3Q	4Q

FY2018/9	FY2019/9	FY2020/9	FY2021/9	FY2022/9
		1Q			2Q		3Q			4Q

Financial Results for the Third Quarter of Fiscal Year 2022

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1.1) Financial highlights 3

Medium-Term Management Plan Targets for FY2023/9

Net sales: 10.0 billion JPY Ordinary profit: 1.0 billion JPY

Present

situation

Now>

While existing businesses are steadily expanding, we are facing issues in the pace of concluding M&A contracts

Breakdown of performance targets of the Medium-Term Management Plan (FY2023/9)

Existing businesses:			M&A:	Net sales
7.7 billion JPY			2.3 billion JPY	Total:
							10.0 billion JPY
					Amount
FY2022 (forecast) Existing businesses: 6.7 billion JPY + M&A: 0 billion JPY
		remaining:
					3.3 billion JPY
FY2021 (results) Existing businesses: 5.7 billion JPY + M&A: 0	billion JPY
FY2020 (results) Existing businesses: 5.3 billion JPY + M&A:	0 billion JPY

Measures

& revisions

Expand the weight of existing businesses by revising the breakdown of sales targets for existing businesses and M&A.

1. Cover delays in M&A by increased sales from capital and business alliances / business alliances
2. Continue to explore M&A projects that have the potential for synergies. Now working on evaluating the value of several projects
3. If a large amount of additional funding is required, consider bank loans instead of fund-raising through the issuance of new shares

Financial Results for the Third Quarter of Fiscal Year 2022

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