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 Six Months Ended November 30, 2021 (Based on Japanese GAAP) January 12, 2022 E･J Holdings Inc. Company name: Stock exchange listing: Tokyo Stock code: Representative: 2153 President Inquiries: Scheduled date to file Quarterly Securities Report: Director URL https://www.ej-hds.co.jp Scheduled date to commence dividend payments: Preparation of supplementary material on quarterly financial results: No – Yuji Kotani Masanori Hamano January 14, 2022 TEL 086(252)7520 Holding of quarterly financial results meeting: 1. Consolidated financial results for the six months ended November 30, 2021 (from June 1, 2021 to November 30, 2021) No (Amounts less than one million yen are rounded down)(1) Consolidated operating results (cumulative) Net sales Operating profit Percentages indicate year-on-year changesProfit attributable to owners of parent Ordinary profit Six months ended November 30, 2021 Six months ended November 30, 2020 Millions of yen 8,493 7,742 % Millions of yen (752) (1,034) – 21.5 % Millions of yen (642)(884)– – % Millions of yen (521) – (670) – % – – Six months ended November 30, 2021 Six months ended November 30, 2020 (2) Consolidated financial position As of November 30, 2021 As of May 31, 2021 2. Cash dividends Earnings per share Diluted earnings per share Yen (32.72)(48.12)Yen – – Total assets Net assets Equity ratio Millions of yen 35,133 37,513 Millions of yen 24,287 25,497 % 69.1 68.0 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Annual dividends per share Year ended May 31, 2021 Year ending May 31, 2022 Year ending May 31, 2022 (Forecast) Yen – – Yen 0.00 0.00 Yen – – Yen 35.00 40.00 Yen 35.00 40.00 3. Forecast of consolidated financial results for the year ending May 31, 2022 (from June 1, 2021 to May 31, 2022) Net sales Operating profit Ordinary profit Percentages indicate year-on-year changesProfit attributable to owners of parent Earnings per share Full year Millions of yen 35,000 % Millions of yen 3,900 – % Millions of yen 4,100 – % Millions of yen 2,800 – % – Yen 175.71 14. Notes (1) Changes in significant subsidiaries during the six months ended November 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation): (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: Changes in accounting policies due to other reasons: Changes in accounting estimates: Restatement of prior period financial statements: (4) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) No Yes No No No As of November 30, 2021 16,078,920 shares As of May 31, 2021 16,078,920 shares Number of treasury shares at the end of the period As of November 30, 2021 134,624 shares As of May 31, 2021 158,502 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) Six months ended November 30, 2021 15,928,239 shares Six months ended November 30, 2020 13,940,044 shares 2 As of May 31, 2021 As of November 30, 2021 (Millions of yen) Quarterly consolidated financial statements Consolidated balance sheets Assets Current assets Cash and deposits Notes and accounts receivable – trade Notes and accounts receivable – trade, and contract assets Inventories 18,975 3,748 – 3,219 541 (4) 26,480 2,416 2,315 522 5,254 987 260 1,248 2,693 0 441 357 80 1,082 (125) 4,529 11,032 37,513 10,949 – 3,500 7,730 1,457 (5) 23,632 2,378 2,323 586 5,288 925 273 1,198 2,721 0 437 756 110 1,110 (124) 5,013 11,500 35,133 Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures, net Land Other, net Total property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Investment securities Bad debts Investment property, net Deferred tax assets Retirement benefit asset Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 3 As of May 31, 2021 As of November 30, 2021 (Millions of yen) 834 – 50 305 1,120 4,034 – 33 232 4,111 10,721 572 53 357 52 21 197 13 26 1,294 12,015 2,803 4,387 17,593 (84) 24,700 510 (0) 280 790 7 25,497 37,513 592 1,300 50 244 321 – 4,595 – 224 2,371 9,700 465 36 304 59 25 188 11 54 1,145 10,845 2,803 4,387 16,407 (71) 23,526 495 0 258 754 6 24,287 35,133 Liabilities Current liabilities Accounts payable – operating Short-term borrowings Current portion of bonds payable Current portion of long-term borrowings Income taxes payable Advances received on service contracts in progress Contract liabilities Provision for bonuses for directors (and other officers) Provision for loss on order received Other Total current liabilities Non-current liabilities Long-term borrowings Deferred tax liabilities Retirement benefit liability Provision for share awards for directors (and other officers) Provision for Employee Stock Ownership Plan Trust Long-term accounts payable – other Provision for loss on guarantees Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets 4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative) Consolidated statements of income (cumulative) (Millions of yen) Six months ended November 30, 2020 Six months ended November 30, 2021 Share of profit of entities accounted for using equity method Rental income from real estate Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating loss Non-operating income Interest income Dividend income Other Total non-operating income Non-operating expenses Interest expenses Rental expenses on real estate Guarantee commission Provision of allowance for doubtful accounts Share issuance costs Settlement package Other Total non-operating expenses Ordinary loss Extraordinary losses Loss on retirement of non-current assets Loss on sale of investment securities Total extraordinary losses Loss before income taxes Income taxes – current Income taxes – deferred Total income taxes Loss Loss attributable to owners of parent 7,742 5,334 2,408 3,443 (1,034) 2 17 120 15 52 208 3 10 7 4 15 – 17 58 12 4 17 (901) 199 (429) (230) (670) (670) 8,493 5,717 2,776 3,528 (752) 147 8 21 50 16 50 2 11 5 0 – 10 8 37 1 – 1 (644) 242 (366) (123) (521) (521) (884) (642) 5Consolidated statements of comprehensive income (cumulative) (Millions of yen) Six months ended November 30, 2020 Six months ended November 30, 2021 Loss Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests (670) 59 (0) (9) 49 (621) (621) (0) (521) (14) (0) (21) (36) (557) (557) (0) 6Consolidated statements of cash flows (Millions of yen) Six months ended November 30, 2020 Six months ended November 30, 2021 (901) 229 62 (1) (75) – 3 0 9 4 (20) 3 (120) 531 – (3,736) 313 – (472) (485) (1,044) (5,699) 27 (4) (488) (6,163) (55) 104 (312) 0 (50) (0) 12 6 (18) (314) (644) 215 62 (33) 0 (8) (1) (52) 18 5 (29) 2 (50) – 248 (4,510) – 561 (1,055) (680) (1,314) (7,267) 33 (1) (1,143) (8,378) (30) 150 (168) 0 (45) (0) – 1 (2) (95) Cash flows from operating activities Loss before income taxes Depreciation Amortization of goodwill Increase (decrease) in provision for bonuses for directors (and other officers) Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for loss on order received Increase (decrease) in provision for loss on guarantees Increase (decrease) in retirement benefit liability Increase (decrease) in provision for share awards for directors (and other officers) Increase (decrease) in Provision for Management Board Incentive Plan Trust-NCL Interest and dividend income Interest expenses Share of loss (profit) of entities accounted for using equity method Decrease (increase) in trade receivables Decrease (increase) in trade receivables and contract assets Decrease (increase) in inventories Increase (decrease) in advances received on service contracts in progress Increase (decrease) in contract liabilities Increase (decrease) in trade payables Increase (decrease) in accrued consumption taxes Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sale of investment securities Proceeds from redemption of investment securities Other, net Net cash provided by (used in) investing activities 7 (Millions of yen) Six months ended November 30, 2020 Six months ended November 30, 2021 Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from disposal of treasury shares Proceeds from issuance of shares Dividends paid Proceeds from share issuance to non-controlling shareholders Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation Cash and cash equivalents at end of period 700 60 (290) 766 1,606 (344) 7 (1) 2,504 (0) (3,973) 13,356 256 9,639 1,300 – (168) – – (558) – (4) 568 (0) (7,905) 17,888 – 9,983 8
