Unite and Grow : 〔Delayed〕Summary of Consolidated Financial Results for the Nine Months Ended September 30, 2021 (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 Nine Months Ended September 30, 2021

(Based on Japanese GAAP)

November 12, 2021

Company name:

Unite and Grow Inc.

Stock exchange listing:

Tokyo

Stock code:

4486

URL

http://www.ug-inc.net/

Representative:

President and CEO

Kiichiro Suda

Inquiries:

Director and General Manager of

Mieko Oka

TEL [phone]

Administration Division

Scheduled date to file Quarterly Securities Report:

November 12, 2021

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended September 30, 2021 (from January 1, 2021 to September 30, 2021)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Nine months ended September 30, 2021

1,509

20.8

241

50.7

241

50.8

167

52.6

Nine months ended September 30, 2020

1,249

5.3

160

0.9

160

2.2

109

(1.8)

Earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended September 30, 2021

45.51

42.32

Nine months ended September 30, 2020

30.15

27.86

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of September 30, 2021

1,956

1,345

68.8

As of December 31, 2020

1,770

1,189

67.2

2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended December 31, 2020	-	0.00	-	6.00	6.00
Year ending December 31, 2021	-	0.00	-
Year ending December 31, 2021 (Forecast)				8.00	8.00

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
Full year	2,074	19.7	249	15.2	249	15.0	173		8.7	47.46

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4. Notes

(1) Changes in significant subsidiaries during the nine months ended September 30, 2021

	(changes in specified subsidiaries resulting in the change in scope of consolidation):	No
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	No
(3)	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:	No
	Changes in accounting policies due to other reasons:	No
	Changes in accounting estimates:	No
	Restatement of prior period financial statements:	No
(4)	Number of issued shares (common shares)
	Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2021	3,698,400	shares	As of December 31, 2020	3,648,200	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	26	shares	As of December 31, 2020	26	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended September 30, 2021	3,675,306	shares	Nine months ended September 30, 2020	3,635,436	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2020	As of September 30, 2021
Assets
Current assets
Cash and deposits	1,566,522	1,753,180
Accounts receivable - trade	13,598	11,178
Other	17,966	22,718
Total current assets	1,598,087	1,787,077
Non-current assets
Property, plant and equipment
Buildings, net	74,520	70,915
Other, net	19,361	16,753
Total property, plant and equipment	93,881	87,669
Intangible assets
Software	19,040	22,329
Other	0	-
Total intangible assets	19,040	22,329
Investments and other assets
Deferred tax assets	8,889	8,197
Other	50,828	50,828
Total investments and other assets	59,718	59,026
Total non-current assets	172,640	169,025
Total assets	1,770,727	1,956,102

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			(Thousands of yen)
		As of December 31, 2020	As of September 30, 2021
Liabilities
Current liabilities
Accounts payable - trade	7,920	7,199
Current portion of long-term borrowings	7,316	-
Accounts payable - other	131,017	44,112
Income taxes payable	42,718	53,028
Advances received	303,426	424,474
Other	67,260	61,254
Total current liabilities	559,659	590,070
Non-current liabilities
Asset retirement obligations	12,205	12,229
Other	9,081	8,025
Total non-current liabilities	21,287	20,255
Total liabilities	580,946	610,325
Net assets
Shareholders' equity
Share capital	305,037	310,347
Capital surplus	284,182	289,492
Retained earnings	600,616	745,992
Treasury shares	(55)	(55)
Total shareholders' equity	1,189,780	1,345,777
Total net assets	1,189,780	1,345,777
Total liabilities and net assets	1,770,727	1,956,102

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Nine months ended	Nine months ended
		September 30, 2020	September 30, 2021
Net sales	1,249,304	1,509,390
Cost of sales	676,862	785,980
Gross profit	572,442	723,409
Selling, general and administrative expenses	412,208	481,946
Operating profit	160,233	241,463
Non-operating income
Interest income	17	14
Other	2	44
Total non-operating income	19	59
Non-operating expenses
Interest expenses	209	128
Share issuance costs	9	39
Other	-	0
Total non-operating expenses	219	168
Ordinary profit	160,033	241,355
Profit before income taxes	160,033	241,355
Income taxes - current	44,641	73,398
Income taxes - deferred	5,795	691
Total income taxes	50,437	74,089
Profit	109,596	167,265
Profit attributable to owners of parent	109,596	167,265

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