Relia : Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2021 (Based on Japanese GAAP)

Relia, Inc.

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.

Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2021 (Based on Japanese GAAP)

February 04, 2022

Company name: Relia, Inc.

Stock exchange listing: Tokyo

Code number: 4708

URL: https://www.relia-group.com/

Representative: TAKASHI AMINO, President

Contact: KENICHIRO IWAMOTO, General Manager

Phone: [phone]

Scheduled date of filing quarterly securities report: February 10, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

							(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 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
Nine months ended	Million yen		%		Million yen	%		Million yen	%		Million yen		%
December 31, 2021		86,798		(6.9)		5,068	(19.2)		5,024	(21.8)			3,423		(21.8)
December 31, 2020		93,223		(0.5)		6,275	(16.3)		6,427	(12.8)			4,378		(8.4)
(Note) Comprehensive income:	Nine months ended December 31, 2021:	¥		3,992 million	[	(2.3) %]
		Nine months ended December 31, 2020:	¥		4,084 million	[	(8.1) %]
		Basic earnings	Diluted earnings per
		per share				share
Nine months ended				Yen				Yen
December 31, 2021				52.04				-
December 31, 2020				65.05				-
(2) Consolidated Financial Position
		Total assets			Net assets	Capital adequacy ratio		Net assets per share
As of			Million yen			Million yen				%					Yen
December 31, 2021		61,081			44,029				72.1					679.01
March 31, 2021		67,127			45,275				67.4					677.52
(Reference) Equity: As of	December 31, 2021:	¥	44,025 million
As of	March 31, 2021:			¥	45,272 million

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Relia, Inc.

2. Dividends

				Annual dividends
	1st	2nd	3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
	Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2021	-		19.00	-		23.00	42.00
Fiscal year ending March 31, 2022	-		21.00	-
Fiscal year ending March 31, 2022						21.00	42.00
(Forecast)
(Note) Revision to the forecast for dividends announced most recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 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
			Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year			120,000		(6.0)	8,400	(13.2)	8,400	(14.4)	5,600	(27.8)	83.81
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the nine months ended December 31, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New	-	(Company name:								)
Exclusion:	-	(Company name:								)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	Yes

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: Yes
   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:	64,838,033	shares
March 31, 2021:	66,820,721	shares
2) Total number of treasury shares at the end of the period:
December 31, 2021:	-	shares
March 31, 2021:	88	shares

3) Average number of shares during the period:
Nine months ended December 31, 2021:	65,782,096	shares
Nine months ended December 31, 2020:	67,305,423	shares

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Relia, Inc.

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Million yen)
			As of March 31,2021	As of December 31,2021
Assets
	Current assets
		Cash and deposits	25,658	23,831
		Notes and accounts receivable - trade	21,888	17,441
		Contract assets	-	2,338
		Work in process	1,352	-
		Supplies	65	64
		Other	2,050	2,289
		Allowance for doubtful accounts	(325)	(242)
		Total current assets	50,690	45,724
	Non-current assets
		Property, plant and equipment	6,233	6,039
		Intangible assets
		Goodwill	2,132	2,002
		Other	879	1,154
		Total intangible assets	3,011	3,156
		Investments and other assets	7,191	6,161
		Total non-current assets	16,437	15,357
	Total assets	67,127	61,081
Liabilities
	Current liabilities
		Accounts payable - trade	2,923	2,372
		Accounts payable - other	8,519	7,845
		Lease obligations	536	566
		Income taxes payable	1,421	202
		Provision for bonuses	1,164	595
		Provision for bonuses for directors (and other	29	28
		officers)
		Other	4,198	2,318
		Total current liabilities	18,793	13,928
	Non-current liabilities
		Lease obligations	608	536
		Retirement benefit liability	567	638
		Asset retirement obligations	1,879	1,892
		Other	3	56
		Total non-current liabilities	3,058	3,124
	Total liabilities	21,852	17,052

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Relia, Inc.

				(Million yen)
			As of March 31,2021	As of December 31,2021
Net assets
	Shareholders' equity
		Share capital	998	998
		Capital surplus	1,112	1,112
		Retained earnings	41,968	40,153
		Treasury shares	(0)	-
		Total shareholders' equity	44,079	42,264
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	1	1
		securities
		Deferred gains or losses on hedges	-	(55)
		Foreign currency translation adjustment	1,272	1,894
		Remeasurements of defined benefit plans	(81)	(78)
		Total accumulated other comprehensive income	1,192	1,761
	Non-controlling interests	2	3
	Total net assets	45,275	44,029
Total liabilities and net assets	67,127	61,081

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Relia, Inc.

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

			(Million yen)
		For the nine months	For the nine months
		ended December 31,2020	ended December 31,2021
Net sales	93,223	86,798
Cost of sales	78,536	73,426
Gross profit	14,686	13,372
Selling, general and administrative expenses	8,411	8,303
Operating profit	6,275	5,068
Non-operating income
	Interest income	15	7
	Dividend income	4	2
	Commission income	13	10
	Share of profit of entities accounted for using equity	27	32
	method
	Gain on investments in investment partnerships	-	17
	Surrender value of insurance policies	104	-
	Other	75	14
	Total non-operating income	241	85
Non-operating expenses
	Interest expenses	59	51
	Foreign exchange losses	11	60
	Other	17	18
	Total non-operating expenses	88	130
Ordinary profit	6,427	5,024
Extraordinary income
	Gain on sale of investment securities	96	-
	Compensation income	19	-
	Subsidy bounty income	192	27
	Total extraordinary income	308	27
Extraordinary losses
	Loss on temporary closure and other	7	-
	Total extraordinary losses	7	-
Profit before income taxes	6,729	5,051
Income taxes	2,351	1,627
Profit	4,377	3,423
Profit (loss) attributable to non-controlling interests	(0)	0
Profit attributable to owners of parent	4,378	3,423

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