JNS : Summary of Consolidated Financial Results for the Year Ended February 28, 2022 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended February 28, 2022

(Based on Japanese GAAP)

Company name: JNS HOLDINGS INC.

Stock exchange listing: Tokyo

Stock code: Representative:

Masashi Ikeda
Takashi Nakano
Scheduled date of ordinary general meeting of shareholders:	May 27, 2022
Scheduled date to file Securities Report:	May 30, 2022
Scheduled date to commence dividend payments:	May 30, 2022
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:

Inquiries:

3627 URLhttps://www.jns.inc/ President & Representative Director Senior Managing Director, Member of the Board

TEL [phone]

Yes (for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)

(1) Consolidated operating results

April 14, 2022

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Year ended February 28, 2022 Year ended February 28, 2021	Millions of yen 9,550 8,499	% 12.4 (21.4)	Millions of yen 516 239	% 115.8 (72.7)	Millions of yen 433 217	% 99.4 (74.5)	Millions of yen 353 315	% 11.9 (44.3)

Earnings per share	Diluted earnings per share	Profit attributable to owners of parent/equity	Ordinary profit/total assets	Operating profit/net sales
Year ended February 28, 2022 Year ended February 28, 2021	Yen 29.54 27.07	Yen 28.28 25.65	% 6.6 6.3	% 5.5 2.8	% 5.4 2.8

(2) Consolidated financial position

Total assets	Net assets	Equity ratio	Net assets per share
As of February 28, 2022 As of February 28, 2021	Millions of yen 8,786 6,876	Millions of yen 5,593 5,232	% 63.2 75.6	Yen 465.64 440.85

(3) Consolidated cash flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
Year ended February 28, 2022 Year ended February 28, 2021	Millions of yen 775 (386)	Millions of yen 981 (1,811)	Millions of yen 1,085 (193)	Millions of yen 4,982 2,050

2. Cash dividends

Annual dividends per share	Total cash dividends (Total)	Dividend payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended February 28, 2021 Year ended February 28, 2022	Yen - -	Yen 0.00 0.00	Yen - -	Yen 2.00 10.00	Yen 2.00 10.00	Millions of yen 23 119	% 7.4 33.9	% 0.5 2.2
Year ending February 28, 2023 (Forecast)	-	0.00	-	5.00	5.00	33.2

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Earnings per share
Full year	Millions of yen 9,600	% 0.5	Millions of yen 260	% (49.7)	Millions of yen 250	% (42.2)	Millions of yen 180	% (49.1)	Yen 15.08

4. Notes

• (1) Changes in significant subsidiaries during the year ended February 28, 2022

  No

  (changes in specified subsidiaries resulting in the change in scope of consolidation):

• (2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations: Changes in accounting policies due to other reasons:

Changes in accounting estimates:

Restatement of prior period financial statements:

No No No No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of February 28, 2022

12,140,400 shares

As of February 28, 2021

11,793,800 shares

Number of treasury shares at the end of the period

As of February 28, 2022

210,105 shares

As of February 28, 2021

105 shares

Average number of shares during the period

Year ended February 28, 2022

11,966,900 shares

Year ended February 28, 2021

11,670,640 shares

Consolidated financial statements Consolidated balance sheets

(Thousands of yen)
As of February 28, 2021	As of February 28, 2022
Assets Current assets Cash and deposits Notes and accounts receivable - trade Merchandise Work in process Raw materials Advance payments to suppliers Other Allowance for doubtful accounts	2,050,141 1,038,573 25,822 35,636 217,487 192,648 439,755 (4,904)	4,982,263 1,134,617 104,507 132,460 240,012 291,341 305,941 (5,146)
Total current assets	3,995,160	7,185,998
Non-current assets Property, plant and equipment Buildings, net Vehicles, net furniture and fixtures, net Construction in progress	133,856 4,386 64,677 1,544	149,931 3,592 90,068 1,433
Total property, plant and equipment	204,464	245,025
Intangible assets Software Software in progress Goodwill Other	178,014 256,078 72,289 4,719	153,736 69,950 37,590 6,441
Total intangible assets	511,102	267,718
Investments and other assets Investment securities Shares of subsidiaries and associates Investments in capital of subsidiaries and associates Deferred tax assets Guarantee deposits Other Allowance for doubtful accounts	77,924 1,702,948 1,212 151,696 238,870 30,073 (37,131)	741,078 - 1,295 152,951 198,166 31,010 (37,131)
Total investments and other assets	2,165,595	1,087,371
Total non-current assets	2,881,162	1,600,115
Total assets	6,876,322	8,786,113
(Thousands of yen)
As of February 28, 2021	As of February 28, 2022
Liabilities Current liabilities Accounts payable - trade Short-term borrowings Current portion of long-term borrowings Income taxes payable Advances received Provision for bonuses Provision for product warranties Other	350,252 200,000 149,742 48,142 127,297 204,846 427 376,396	370,447 89,539 413,526 245,230 100,228 259,854 427 473,068
Total current liabilities	1,457,104	1,952,322
Non-current liabilities Long-term borrowings Deferred tax liabilities Asset retirement obligations Other	130,854 14,813 33,445 7,329	1,191,212 7,952 35,014 6,602
Total non-current liabilities	186,443	1,240,781
Total liabilities	1,643,547	3,193,103
Net assets Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares	2,378,899 1,487,890 1,287,666 (76)	2,391,423 1,500,413 1,650,907 (115,366)
Total shareholders' equity	5,154,380	5,427,378
Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment	41,486 2,377 1,061	49,348 5,899 72,630
Total accumulated other comprehensive income	44,925	127,877
Share acquisition rights	33,469	37,754
Total net assets	5,232,775	5,593,010
Total liabilities and net assets	6,876,322	8,786,113

Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

(Thousands of yen)
Fiscal year ended February 28, 2021	Fiscal year ended February 28, 2022
Net sales Cost of sales	8,499,614 5,942,948	9,550,536 6,185,075
Gross profit	2,556,666	3,365,461
Selling, general and administrative expenses	2,317,254	2,848,856
Operating profit	239,412	516,604
Non-operating income Subsidy income Foreign exchange gains Other	40,153 - 7,024	- 41,072 6,426
Total non-operating income	47,177	47,499
Non-operating expenses Interest expenses Foreign exchange losses Share of loss of entities accounted for using equity method Other	12,076 15,795 38,312 3,235	12,142 - 107,558 11,261
Total non-operating expenses	69,419	130,962
Ordinary profit	217,170	433,141
Extraordinary income Gain on sale of investment securities Gain on sale of shares of subsidiaries and associates Gain on change in equity Gain on reversal of share acquisition rights	- - 9,924 2,367	2,999 636,850 2,796 -
Total extraordinary income	12,292	642,646
Extraordinary losses Impairment losses Loss on valuation of investment securities Office relocation expenses	10,717 - -	47,609 395,546 9,185
Total extraordinary losses	10,717	452,341
Profit before income taxes	218,745	623,446
Income taxes - current Income taxes - deferred	56,285 (153,595)	301,973 (32,025)
Total income taxes	(97,309)	269,948
Profit	316,055	353,498
Profit attributable to non-controlling interests	78	-
Profit attributable to owners of parent	315,976	353,498