PRONEXUS : Consolidated Financial Results for the Fiscal Year Ended March 31, 2021

Translation

May 14, 2021

	Consolidated Financial Results
	for the Fiscal Year Ended March 31, 2021
Company name:	PRONEXUS Inc.
Listing:	First Section of the Tokyo Stock Exchange
Stock code:	7893
URL:	https://www.pronexus.co.jp
Representative:	Takeshi Ueno, President and Representative Director
Inquiries:	Jun Takamatsu, Executive Officer, General Manager, President's Office
TEL:	[phone] (from overseas)

Scheduled date of ordinary general meeting of shareholders:	June 28, 2021
Scheduled date to commence dividend payments:	June 14, 2021
Scheduled date to file Securities Report:	June 29, 2021
Preparation of supplementary material on earnings:	Yes
Holding of earnings performance review:	Yes (We plan to upload a video
	recording of the earnings performance
	review)

(Millions of yen with fractional amounts rounded, unless otherwise noted)

1. Consolidated performance for the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)

(1) Consolidated operating results				(Percentages indicate year-on-year changes.)
	Revenue		Operating profit	Profit before tax	Profit
Fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
March 31, 2021	24,997			2.3	2,130	(18.1)	2,503	(8.3)	1,696	(8.5)
March 31, 2020	24,446			5.6	2,600	5.4	2,729	0.5	1,853	0.9
	Profit attributable to	Total comprehensive	Basic earnings per	Diluted earnings per
	owners of parent	income		share		share
Fiscal year ended	Millions of yen		%	Millions of yen	%		Yen		Yen
March 31, 2021	1,691			(8.4)	2,119	14.9		62.87		-
March 31, 2020	1,846			0.6	1,844	15.3		68.53		-
	Return on equity	Ratio of profit before	Ratio of operating
	attributable to owners
	tax to total assets	profit to revenue
	of parent
Fiscal year ended				%		%		%
March 31, 2021				7.4		7.2		8.5
March 31, 2020				8.3		8.4		10.6

Reference: Share of profit (loss) of investments accounted for using equity method

For the fiscal year ended March 31, 2021: 80 million yen

For the fiscal year ended March 31, 2020: 73 million yen

(2) Consolidated financial position

			Equity	Ratio of equity	Equity
			attributable to	attributable to
	Total assets	Total equity	attributable to
	owners of parent	owners of parent
			owners of parent
			to total assets	per share
As of	Millions of yen	Millions of yen	Millions of yen	%	Yen
March 31, 2021	36,337	23,452	23,423	64.5	877.73
March 31, 2020	33,049	22,506	22,451	67.9	834.02

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Period-end cash and
	operating activities	investing activities	financing activities	cash equivalents
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2021	3,917	(1,339)	(1,660)	12,845
March 31, 2020	4,172	(1,716)	(2,436)	11,911

2. Cash dividends

			Annual dividends
	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March	-	15.00	-	15.00	30.00
31, 2020
Fiscal year ended March	-	17.00	-	16.00	33.00
31, 2021
Fiscal year ending	-	16.00	-	16.00	32.00
March 31, 2022
(Forecast)
			Ratio of dividends
	Total cash	Dividend payout	to equity
	dividends	ratio	attributable to
	(Total)	(Consolidated)	owners of parent
			(Consolidated)
	Millions of yen	%	%
Fiscal year ended March	808	43.8	3.7
31, 2020
Fiscal year ended March	885	52.5	3.9
31, 2021
Fiscal year ending		56.2
March 31, 2022
(Forecast)

Note: The second quarter-end dividends for the fiscal year ended March 31, 2021 are 17.00 yen, the total combining the ordinary dividends of 15.00 yen with the 90th anniversary commemorative dividends of 2.00 yen.

3. Consolidated earnings forecasts for the fiscal year 2021 (from April 1, 2021 to March 31, 2022)

(Percentages indicate year-on-year changes.)

											Profit attributable	Basic
	Revenue		Operating profit	Profit before tax	Profit		to owners of	earnings
											parent	per share
	Millions of		%	Millions of	%	Millions of	%	Millions of		%	Millions of	%	Yen
	yen		yen	yen	yen		yen
First six months
ending	14,700		2.2	2,400	(9.5)	2,400	(15.0)	1,660		(15.3)	1,660	(15.1)	62.21
September 30,
2021
Fiscal year ending	25,500		2.0	2,200	3.3	2,200	(12.1)	1,520		(10.4)	1,520	(10.1)	56.96
March 31, 2022

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies and changes in accounting estimates
3. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
4. Number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

	As of March 31, 2021		28,716,688 shares
	As of March 31, 2020		30,716,688 shares
b. Number of treasury shares at the end of the period
	As of March 31, 2021		2,031,321 shares
	As of March 31, 2020		3,797,152 shares
c. Average number of shares during the period
	For the fiscal year ended March 31, 2021		26,898,026 shares
	For the fiscal year ended March 31, 2020		26,940,547 shares

[Reference] Overview of non-consolidated performance

1. Non-consolidated performance for the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)

(1) Non-consolidated operating results							(Percentages indicate year-on-year changes.)
		Net sales		Operating profit			Ordinary profit	Profit
Fiscal year ended	Millions of yen		%	Millions of yen		%			Millions of yen		%	Millions of yen	%
March 31, 2021	23,785		1.9	2,110		(4.3)			2,338		(0.8)	1,369	(14.9)
March 31, 2020	23,334		2.5	2,205		5.7			2,357		(0.3)	1,609	(3.6)
		Basic earnings per	Diluted earnings per
		share		share
Fiscal year ended				Yen			Yen
March 31, 2021		50.89			-
March 31, 2020		59.73			-
(2) Non-consolidated financial position
		Total assets		Net assets				Equity ratio		Net assets per share
As of	Millions of yen	Millions of yen				%		Yen
March 31, 2021	27,838	21,465					77.1		804.39
March 31, 2020	26,671	20,913					78.4		776.88
Reference: Equity
As of March 31, 2021:		21,465 million yen
As of March 31, 2020:		20,913 million yen

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters (Caution regarding forward-lookingstatements and others)
  The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to PRONEXUS Inc. (hereinafter the "Company") and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ substantially due to various factors. Please refer to the section of "(4) Future outlook" of "1. Review of operating results and others" on page 5 of [Attached Material] for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof.
  (Means of access to contents of supplementary material on earnings and earnings performance review)
  Regarding the earnings performance review for the fiscal year ended March 31, 2021, to prevent the spread of novel coronavirus disease (COVID-19), and assuming that many people are teleworking, we have decided not to hold the briefing in person, and instead to upload a video recording of the earnings performance review on a later day. We also plan to post the supplementary material on earnings on the Company's website.

[Attached Material]
	Index
1. Review of operating results and others.....................................................................................................	2
(1)	Review of operating results for the fiscal year under review .............................................................	2
(2)	Review of financial position for the fiscal year under review............................................................	4
(3)	Review of cash flows for the fiscal year under review.......................................................................	4
(4)	Future outlook ....................................................................................................................................	5
(5)	Basic policy on profit distribution and dividends for fiscal 2020 and fiscal 2021 .............................	6
2. Basic concept regarding selection of accounting standards ......................................................................	6
3. Consolidated financial statements and significant notes thereto...............................................................	7
(1)	Consolidated statement of financial position......................................................................................	7
(2)	Consolidated statement of profit or loss and consolidated statement of comprehensive income.......	9
	(Consolidated statement of profit or loss) ..........................................................................................	9
	(Consolidated statement of comprehensive income) ........................................................................	10
(3)	Consolidated statement of changes in equity ...................................................................................	11
(4)	Consolidated statement of cash flows ..............................................................................................	13
(5)	Notes to consolidated financial statements.......................................................................................	14
	(Notes on premise of going concern) ...............................................................................................	14
	(Segment information) .....................................................................................................................	14
	(Per share information).....................................................................................................................	14
	(Significant subsequent events) ........................................................................................................	14

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