アウトソシン（2427） – Notice Regarding Amendment of Annual Securities Reports and Financial Results for Past Fiscal Years

[Translation] To Whom It May Concern January 14, 2022 Company Name: OUTSOURCING Inc. Representative: Haruhiko Doi (First Section of TSE, Securities Code: 2427) Contact: Chairman and CEO Kazuhiko Suzuki Executive Vice President and Executive General Manager in charge of Business Management Division Phone: +81-3-3286-4888 (main) Notice Regarding Amendment of Annual Securities Reports and Financial Results for Past Fiscal Years The Company hereby announces that it will submit an amendment of the following Annual Securities Reports submitted in past fiscal years to the Kanto Finance Bureau, and it will also amend the following Financial Results disclosed in past fiscal years. The affected amounts from these amendments are as described in the separate attachment. We sincerely apologize for the great concern and inconvenience caused to our shareholders, investors, and other stakeholders. Particulars 1. Background and reason for amendment In the process of preparing for the listing of the Company’s consolidated subsidiary OUTSOURCING TECHNOLOGY Inc., it was discovered that there was suspicion that its subsidiary, enable Inc. (hereinafter “enable”), had engaged in inappropriate accounting. Therefore, the Company established an outside investigation committee that includes outside lawyers and certified public accountants to proceed with conducting the investigation. As a result of receiving the investigation report from the Investigation Committee on December 28, 2021, in addition to omission of recording impairment losses for property, plant and equipment of enable and the overstatement of work-in-process, etc., it was discovered that the Company and consolidated subsidiaries belonging to the Domestic Engineering Outsourcing Business, Domestic Manufacturing Outsourcing Business, Domestic Service Operations Outsourcing Business, and Overseas Manufacturing and Service Operations Outsourcing Business had overstated revenue and understated expenses. Therefore, the Company has decided to amend the relevant parts of the consolidated financial statements and non-consolidated financial statements included in the Annual Securities Reports as well as quarterly financial statements, etc. submitted in past fiscal years. In addition, when making the amendments, those unrelated to this inappropriate accounting case in past fiscal years (those that were not reflected in consolidated financial statements, etc. from the standpoint of materiality, and the affected amounts for profit before tax were roughly (160) million yen for the full year ended December 2019, and roughly (440) million yen for the full year ended December 2020) will also be amended. 2. Annual and Quarterly Securities Reports for which amended reports are being submitted 1 [Translation] (1) Annual securities report ・23rd fiscal year (from January 1, 2019 to December 31, 2019) ・24th fiscal year (from January 1, 2020 to December 31, 2020) (2) Quarterly securities report ・The first quarter of the 24th fiscal year (from January 1, 2020 to March 31, 2020) ・The second quarter of the 24th fiscal year (from April 1, 2020 to June 30, 2020) ・The third quarter of the 24th fiscal year (from July 1, 2020 to September 30, 2020) ・The first quarter of the 25th fiscal year (from January 1, 2021 to March 31, 2021) ・The second quarter of the 25th fiscal year (from April 1, 2021 to June 30, 2021) 3. Financial Results and Quarterly Financial Results being amended (1) Financial results (2) Quarterly financial results ・Financial Results for the Fiscal Year Ended December 31, 2020 [IFRS] (Consolidated) ・Financial Results for the First Quarter Ended March 31, 2021 [IFRS] (Consolidated) ・Financial Results for the Second Quarter Ended June 30, 2021 [IFRS] (Consolidated) 4. Future outlook There are no changes to the consolidated earnings forecast for the fiscal year ending December 2021, disclosed on February 15, 2021. (Disclaimer with respect to earnings and other forecasts) The forward-looking statements including earnings forecast contained in this document are based on information currently available to the Company, and certain assumptions that the Company believes are reasonable. Accordingly, the Company can give no assurance that such statements will prove to be correct. Actual results may differ from the results anticipated in these forward-looking statements due to a variety of factors. 2 [Translation] (Attachment) Impact of amendments on financial results of past fiscal years The affected amounts of these amendments on consolidated financial results of past fiscal years are as follows. (1) Annual securities reports / financial results Fiscal year Items (Unit: millions of JPY) Before amendment After amendment Affected amount 23rd (FY12/19) full-year (375) (1,544) (1,362) (898) (897) (422) (1,147) (1,576) (1,004) (1,352) (1,387) (1,386) (2,156) (2,597) * The cumulative affected amount of inappropriate accounting recognized before the fiscal year ended December 31, 2018 Revenue Operating profit Profit before tax Profit Profit attributable to owners of the Company Total assets Total equity Revenue Operating profit Profit before tax Profit Profit attributable to owners of the Company Total assets Total equity 360,874 13,957 12,116 8,197 7,439 238,757 63,846 365,135 13,333 7,791 2,701 1,938 300,717 65,603 361,249 15,501 13,478 9,095 8,336 239,179 64,993 366,711 14,337 9,143 4,088 3,324 302,873 68,200 24th (FY12/20) full-year will be reflected collectively in the fiscal year ended December 31, 2019. * The amendment to the amounts at the time of submission of the annual securities report, and retrospective adjustments due to finalization of provisional accounting treatment for business combinations that occurred after the filing have not been (2) Quarterly securities reports / quarterly financial results Fiscal year Items (Unit: millions of JPY) Before amendment After amendment Affected amount included. 24th (FY12/20) first quarter 24th (FY12/20) second quarter 24th (FY12/20) third quarter Revenue Operating profit Profit before tax Profit Profit attributable to owners of the Company Total assets Total equity Revenue Operating profit Profit before tax Profit Profit attributable to owners of the Company Total assets Total equity Revenue Operating profit Profit before tax Profit Profit attributable to owners of the Company Total assets Total equity 3 89,542 2,549 1,530 1,049 899 231,886 58,879 172,628 3,305 2,046 798 664 234,445 60,110 262,583 8,364 5,764 3,112 2,819 240,821 63,637 89,606 3,503 2,434 1,519 1,370 231,636 58,161 172,540 4,496 3,193 1,489 1,354 234,273 59,676 262,414 9,417 6,773 3,650 3,357 240,494 63,034 64 954 904 470 471 (250) (718) (88) 1,191 1,147 691 690 (172) (434) (169) 1,053 1,009 538 538 (327) (603) [Translation] Fiscal year Items Before amendment After amendment Affected amount 25th (FY12/21) first quarter (95) 367 669 615 615 (1,850) (1,973) (73) 413 715 652 652 (1,793) (1,974) * The amendment to the amounts at the time of submission of the quarterly securities report, and retrospective adjustments Revenue Operating profit Profit before tax Profit Profit attributable to owners of the Company Total assets Total equity Revenue Operating profit Profit before tax Profit Profit attributable to owners of the Company Total assets Total equity 123,801 5,573 6,133 3,738 3,382 331,055 72,390 264,639 12,407 11,705 7,124 6,284 347,407 76,133 123,896 5,206 5,464 3,123 2,767 332,905 74,363 264,712 11,994 10,990 6,472 5,632 349,200 78,107 25th (FY12/21) second quarter due to finalization of provisional accounting treatment for business combinations that occurred after the filing have not been included. 4