アウトソシン（2427） – Summary of Financial Results for the third quarter 2021

FY2021 Q3 FY2020 Q3 (Notes) FY2021 Q3 FY2020 (Notes) 2. Dividends Disclaimer: This document is a partial translation of the Japanese original and does not constitute any guarantee, and the Company will not compensate for any loss or damage resulting from actions taken based on this document. If there is any discrepancy between the Japanese original and this document, the Japanese original prevails. Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending December 31, 2021 [IFRS] (Consolidated） Company name: Securities code: Representative: Contact: OUTSOURCING Inc. 2427 Haruhiko Doi, Chairman and CEO Kazuhiko Suzuki, Executive Vice President and Executive General Manager in Charge of Business Management Division TEL +81-3-3286-4888 Stock exchange listing: Tokyo 1st Section URL https://www.outsourcing.co.jp/en/ January 14, 2022 Quarterly statements filing date (as planned): Scheduled date to commence dividend payments: Supplemental material created for quarterly results: Briefing held for quarterly results: January 14, 2022 – Yes Yes 1. Consolidated Financial Results for the Third Quarter of Fiscal Year 2021 (From January 1, 2021 to September 30, 2021) a. Consolidated Financial Results (Cumulative) (% indicates change from the corresponding quarter of the previous year) (Figures less than one million yen are rounded) Revenue Operating profit Profit before tax Profit for the period Profit attributable to owners of the Company Total comprehensive income Million yen % Million yen % Million yen % Million yen % Million yen % Million yen % FY2021 Q3 412,068 57.0 17,889 91.6 12,192 82.2 5,675 58.3 4,533 37.7 9,210 314.7 FY2020 Q3 262,414 (1.9) 9,336 (6.6) 6,692 (3.0) 3,585 (6.7) 3,293 (1.0) 2,221 118.4 Basic earnings per share Diluted earnings per share Yen 36.00 26.16 Yen 36.00 26.16 As the provisional accounting process related to business combinations was finalized in FY2020 Q4, the condensed consolidated financial statements for FY2020 Q3 were retrospectively adjusted. b. Consolidated Financial Positions Total assets Total equity Equity attributable to owners of the Company Ratio of equity attributable to owners of the Company to total assets Equity attributable to owners of the Company per share Million yen Million yen Million yen 350,767 300,862 73,189 65,596 67,753 60,468 % 19.3 20.1 As the provisional accounting process related to business combinations was finalized in FY2021 Q3, the consolidated financial statements for FY2020 were retrospectively adjusted. Q1 Q2 Q3 Year-end Annual Annual cash dividends per share Yen － － Correction of dividend forecast from the most recent dividend forecast: No FY2020 FY2021 FY2021 (Forecast) (Notes) 3. Forecast of Consolidated Financial Results for Fiscal Year 2021 (From January 1, 2021 to December 31, 2021) Yen 10.00 31.00 Yen 0.00 0.00 Yen － － (Notes) Revenue Operating profit Profit before tax Profit for the year (% indicates change from the corresponding period of the previous fiscal year) Profit attributable to owners of the Company Basic earnings per share Million yen % Million yen % Million yen % Million yen % Million yen % Full-year 528,000 175.0 25,100 Correction of financial forecast from the most recent financial forecast: No 21,400 44.6 88.4 14,200 427.0 12,800 562.9 Yen 101.66 Yen 538.03 480.25 Yen 10.00 31.00 (Notes) (1) Significant changes in subsidiaries during this period (changes in specified subsidiaries that cause changes in the scope of consolidation): No (2) Changes in accounting policies and accounting estimates (a) Changes in accounting policies required by IFRS: No (b) Changes in accounting policies other than (a): Yes (c) Changes in accounting estimates: No (3) Number of issued shares (common stock) (a) Number of issued shares at the end of period (including treasury stock) FY2021 Q3 125,926,800 FY2020 125,909,300 (b) Number of treasury stock at the end of period FY2021 Q3 490 FY2020 490 (c) Average number of issued shares (cumulative up through the period) FY2021 Q3 125,917,784 FY2020 Q3 125,866,593 (Notes) * This summary of quarterly financial statements is not subject to quarterly review by certified public accountants or an auditing firm. * Statement regarding the proper use of financial forecasts and other special remarks (Caution concerning forward-looking statements) The forward-looking statements including financial forecasts in this summary are based on the information currently available to the Company and on assumptions believed to be reasonable by the Company management. These statements do not guarantee future performance of the Company, and various factors may cause the actual results to differ significantly from the forecasts. Table of Contents for Appendix Condensed Consolidated Financial Statements (1) Condensed Consolidated Statement of Financial Position (2) Condensed Consolidated Statement of Profit or Loss (3) Notes to Condensed Consolidated Financial Statements [Segment Information] 2 2 4 5 5 1 Condensed Consolidated Financial Statements (1) Condensed Consolidated Statement of Financial Position (Millions of yen) As of December 31, 2020 As of September 30, 2021 Assets Current assets Cash and cash equivalents Trade and other receivables Inventories Other financial assets Other current assets Total current assets Non-current assets Property, plant, and equipment Right-of-use assets Goodwill Other financial assets Other non-current assets Deferred tax assets Total non-current assets Total assets Intangible assets Investments accounted for using equity method 81,720 55,610 1,743 11,076 9,845 159,994 9,732 17,491 62,556 21,082 2,231 18,797 3,747 5,233 140,869 300,862 52,002 87,250 2,556 13,717 13,819 169,343 11,301 21,389 98,351 20,211 281 20,988 3,337 5,567 181,424 350,767 2 (Millions of yen) As of December 31, 2020 As of September 30, 2021 Liabilities and equity Liabilities Current liabilities Trade and other payables Bonds and borrowings Lease liabilities Other financial liabilities Income taxes payable Other current liabilities Total current liabilities Non-current liabilities Bonds and borrowings Lease liabilities Other financial liabilities Retirement benefit liability Provisions Other non-current liabilities Deferred tax liabilities Total non-current liabilities Total liabilities Equity Share capital Capital surplus Treasury shares Other capital surplus Other components of equity Retained earnings Total equity attributable to owners of the Company Non-controlling interests Total equity Total liabilities and equity 41,365 68,050 16,791 4,607 4,258 16,899 151,970 43,213 20,556 5,845 5,403 1,113 581 6,586 83,296 235,266 25,214 26,647 (0) (13,456) (1,187) 23,249 60,468 5,128 65,596 300,862 60,714 55,896 20,044 6,978 2,939 25,668 172,238 61,845 26,560 4,456 5,014 1,165 629 5,671 105,340 277,578 25,230 26,663 (0) (12,886) 1,948 26,798 67,753 5,436 73,189 350,767 3 (2) Condensed Consolidated Statement of Profit or Loss Revenue Cost of sales Gross profit Selling, general and administrative expenses Finance costs Share of profit (loss) of investments accounted for using equity Other operating income Other operating expenses Operating profit Finance income method Profit before tax Income tax expense Profit for the period Profit attributable to: Owners of the Company Non-controlling interests Profit for the period Earnings per share Basic earnings per share (Yen) Diluted earnings per share (Yen) For the First Nine Months of Fiscal Year 2020 (From January 1, 2020 to September 30, 2020) (Millions of yen) For the First Nine Months of Fiscal Year 2021 (From January 1, 2021 to September 30, 2021) 262,414 (212,268) 50,146 (43,898) 3,547 (459) 9,336 62 (2,736) 29 6,692 (3,107) 3,585 3,293 292 3,585 26.16 26.16 412,068 (335,391) 76,678 (62,885) 5,536 (1,440) 17,889 1,055 (6,851) 99 12,192 (6,517) 5,675 4,533 1,142 5,675 36.00 36.00 4 (3) Notes to Condensed Consolidated Financial Statements [Segment Information] Segment Revenues and Results Revenues and results by reportable segment are as noted below. Segment profit figures are based on operating profits. [For the First Nine Months of Fiscal Year 2020 (From January 1, 2020 to September 30, 2020)] Domestic Engineering Outsourcing Business Domestic Manufacturing Outsourcing Business Reportable segment Domestic Service Operations Outsourcing Business Overseas Engineering Outsourcing Business Overseas Manufacturing and Service Operations Outsourcing Business Other Business (Note 1) Total Total Adjustments (Note 2) Consolidated Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen 75,928 44,966 17,976 28,270 95,113 262,253 161 262,414 － 262,414 1,932 690 210 75 1,106 4,013 1,017 5,030 (5,030) － Total 77,861 45,656 18,186 28,345 96,219 266,267 1,177 267,444 (5,030) 262,414 (71,933) (41,654) (16,207) (28,128) (94,353) (252,275) (915) (253,190) 113 (253,078) 5,927 4,002 1,979 217 1,865 13,992 262 14,254 (4,917) 9,336 － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － 62 (2,736) 29 6,692 (Note 1) The category “other business” is an operating segment not included in reportable segments that is engaged in administrative outsourcing service business and the like at subsidiaries of the Company. (Note 2) The adjustment of segment profit of ¥(4,917) million includes acquisition-related costs related to business combinations of ¥(73) million, corporate expenses of ¥(4,828) million, profits or losses not allocated to any specific operating segment, and elimination of intersegment transactions. Intersegment revenues are based on prevailing market prices. (Note 3) [For the First Nine Months of Fiscal Year 2021 (From January 1, 2021 to September 30, 2021)] Revenue Revenue from external customers Intersegment revenue (Note 3) Cost of sales and other income (expenses) Segment profit (Operating profit) (Reconciling items) Finance income Finance costs Share of profit (loss) of investments accounted for using equity method Profit before tax Reportable segment Domestic Engineering Outsourcing Business Domestic Manufacturing Outsourcing Business Domestic Service Operations Outsourcing Business Overseas Engineering Outsourcing Business Overseas Manufacturing and Service Operations Outsourcing Business Millions of yen Other Business (Note 1) Total Total Adjustments (Note 2) Consolidated Revenue Revenue from external customers Intersegment revenue (Note 3) Total Cost of sales and other income (expenses) Segment profit (Operating profit) (Reconciling items) Finance income Finance costs Share of profit (loss) of investments accounted for using equity method Profit before tax Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen 89,413 72,579 21,466 100,510 128,059 412,027 42 412,068 － 412,068 2,323 2,100 178 767 1,282 6,649 1,243 7,892 (7,892) － 91,737 74,678 21,643 101,277 129,341 418,676 1,285 419,961 (7,892) 412,068 (84,612) (69,417) (18,126) (97,269) (125,149) (394,573) (1,157) (395,730) 1,551 (394,179) 7,124 5,262 3,517 4,007 4,192 24,102 128 24,231 (6,342) 17,889 － － － － － － － － － － － － － － － － 5 － － － － － － － － － － － － － － － － － － － － 1,055 (6,851) 99 12,192 (Note 1) The category “other business” is an operating segment not included in reportable segments that is engaged in administrative outsourcing service business and the like at subsidiaries of the Company. (Note 2) The adjustment of segment profit of ¥(6,342) million includes acquisition-related costs related to business combinations of ¥(926) million, corporate expenses of ¥(5,396) million, profits or losses not allocated to any specific operating segment, and elimination of intersegment transactions. Intersegment revenues are based on prevailing market prices. (Note 3) 6