コムチュア（3844） – （Delayed）Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022

January 31, 2022 Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022 (Nine Months Ended December 31, 2021) Listing: Tokyo Stock Exchange, First Section URL: https://www.comture.com/en/ir/index.html [Japanese GAAP] Company name: COMTURE CORPORATION Stock code: 3844 Representative: Koichi Mukai, Chairman Contact: Scheduled date of filing of Quarterly Report: Scheduled date of payment of dividend: Preparation of supplementary materials for quarterly financial results: Yes Holding of quarterly financial results meeting: Osamu Noma, Member of the board, Executive Vice President Tel: +(81)3-5745-9700 February 4, 2022 February 28, 2022 Yes (for institutional investors and analysts) (All amounts are rounded down to the nearest million yen) 1. Consolidated Financial Results for the Third Quarter Ended December 31, 2021 (April 1, 2021 – December 31, 2021) (1) Consolidated operating results Nine months ended Dec. 31, 2021 Nine months ended Dec. 31, 2020 Note: Comprehensive income (million yen): Net sales Operating profit (Percentages represent year-on-year changes) Profit attributable to owners of parent Ordinary profit Million yen 18,239 15,275 % Million yen 3,053 2,230 19.4 (1.5) % Million yen 3,052 2,269 36.9 9.9 % Million yen 1,925 1,519 34.5 11.5 % 26.7 9.2 Nine months ended Dec. 31, 2021: 1,924 (up 25.6%) Nine months ended Dec. 31, 2020: 1,532 (up 9.9%) Nine months ended Dec. 31, 2021 Nine months ended Dec. 31, 2020 *Diluted net income per share is not presented because there were no potential shares with dilutive effects. Net income per share Diluted net income per share Yen – – Yen 60.41 47.68 (2) Consolidated financial position Total assets Net assets Million yen 17,561 16,483 Million yen 13,522 12,353 Shareholders’ equity ratio % 77.0 74.9 As of Dec. 31, 2021: 13,522 As of Mar. 31, 2021: 12,353 As of Dec. 31, 2021 As of Mar. 31, 2021 Reference: Shareholders’ equity (million yen): 2. Dividends Dividend per share 1Q-end 2Q-end 3Q-end Year-end Total Fiscal year ended Mar. 31, 2021 Fiscal year ending Mar. 31, 2022 Fiscal year ending Mar. 31, 2022 (forecast) Note: Revisions to the most recently announced dividend forecast: Yes 3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 – March 31, 2022) Yen 31.00 37.00 Yen 7.75 11.25 Yen 7.75 8.25 Yen 7.75 9.25 Yen 7.75 8.25 Net sales Operating profit Ordinary profit (Percentages represent year-on-year changes) Profit attributable to owners of parent Net income per share Full year Note: Revisions to the most recently announced consolidated earnings forecasts: None 15.5 20.6 19.0 % Million yen 3,800 % Million yen 3,800 Million yen 24,100 % Million yen 2,400 % 15.2 Yen 75.30 * Notes (1) Changes in significant subsidiaries during the period (changes in scope of consolidation): None Newly added: – Excluded: – (2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes (3) Changes in accounting policies and accounting-based estimates, and restatements 1) Changes in accounting policies due to revisions in accounting standards, others: Yes 2) Changes in accounting policies other than 1) above: 3) Changes in accounting-based estimates: 4) Restatements: (4) Number of outstanding shares (common stock) None None None 1) Number of shares outstanding at the end of the period (including treasury shares) As of Dec. 31, 2021: 32,241,600 shares As of Mar. 31, 2021: 32,241,600 shares 2) Number of treasury shares at the end of the period 3) Average number of shares outstanding during the period As of Dec. 31, 2021: 365,150 shares As of Mar. 31, 2021: 369,020 shares Nine months ended Dec. 31, 2021: 31,874,262 shares Nine months ended Dec. 31, 2020: 31,873,323 shares * The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms. * Explanation of appropriate use of earnings forecasts, and other special items Forecasts of future performance in this report are based on assumptions judged to be valid and information available to the Company’s management at the time the materials were prepared. Actual results may differ significantly from these forecasts for a number of reasons. Please refer to “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 5 for forecast assumptions and notes of caution for usage. COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22 Contents of Attachments 1. Qualitative Information on Quarterly Consolidated Financial Performance (1) Explanation of Results of Operations (2) Explanation of Financial Position (3) Explanation of Consolidated Forecast and Other Forward-looking Statements 2. Quarterly Consolidated Financial Statements and Notes (1) Quarterly Consolidated Balance Sheet (2) Quarterly Consolidated Statements of Income and Comprehensive Income (3) Notes to Quarterly Consolidated Financial Statements Going Concern Assumption Significant Changes in Shareholders’ Equity Changes in Accounting Policies Segment and Other Information Additional Information Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements 10 2 2 4 5 6 6 8 10 10 10 10 10 10 1 1. Qualitative Information on Quarterly Consolidated Financial Performance (1) Explanation of Results of Operations COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22 Companies and governments need to implement strategic innovations that utilize digital technologies, such as by creating new businesses and services and new ways for people to do their jobs. The growth of IT investments is expected to gain momentum in the digital transformation (DX) sector. The COMTURE Group regards these trends as an opportunity for long -term growth. We are dedicated to giving customers support for their DX activities as well as altering COMTURE itself, a process we call the COMTURE Transformation (CX). Our strategy for the next 10 years, called the COMTURE NEXT 10 Strategy, is to play a key role in the business model reforms of our customers. This includes DX assistance that incorporates our own templates and solutions for the provision of added value, an activity centered on building stronger ties with global vendors. COMTURE was one of the first companies to build systems based on Lotus Notes, SAP and other platforms. We increased the number of platforms we handle to match changes in the business climate. Today, we build systems based on AWS, Microsoft, Salesforce, ServiceNow, Pega and other cloud platforms. Services also encompass data analytics using SAS and other tools, the use of robotic process automation (RPA) tools for the efficiency and automation of business processes, and more DX-related solutions. By adding to conventional stand-alone platforms the ability to supply multi-faceted platforms, we can meet the increasingly complex needs of our customers by assembling the best possible solutions. To provide these solutions, we are encouraging our people to acquire even more advanced vendor certifications and improve skills at creat ing proposals for customers. Another priority is providing services with even more added value involving consulting and other fields. We are using formats that combine online and face-to-face interaction for efficient sales activities and the presentation of proposals to prospective customers. Daily business reports utilize a sales force automation (SFA) system to facilitate the timely sharing of information with many people, including management. The goal is to utilize the collective knowledge of our group even more in order to raise our proposals to a higher level and strengthen sales activities. Launching new businesses faster in growing market sectors is another priority. We have started a project that covers all COMTURE businesses for the purpose of cre ating ideas based on customers’ needs and then using these ideas for new businesses that can contribute to our next stage of growth. Market conditions are favorable for receiving new orders and our highest priority is recruiting and retaining the engineers we require to handle these orders and maintain strong performance. Improving salaries and other benefits for employees is the most important point for recruiting and retaining engineers. One step was an average salary increase of 10% in the current fiscal year. We have also been increasing engagement with our workforce, such as by utilizing small groups and other forms of unrestricted R&D activities and by establishing more ties between management and employees. We are making progress with recruiting talented new college graduates and people who have experience at other companies. We are now reinforcing recruiting activities by strengthening collaborations with recruiting agents. In addition, we are utilizing strategic forms of collaboration with partner companies to be the first to receive information about engineers we can hire who will become productive immediately. Activities involving engineers also include support for training programs in growing market sectors. Overall, there are numerous activities under way to recruit and retain engineers. Looking ahead to how people will do their jobs after the pandemic ends, we are creating new working styles by increasing the use of digital technologies for internal systems, offering employees the option of a hybrid format that combines telework and on-site work, shortening and staggering working times, and using internet communication tools for internal and external lines of communication. Due to numerous measures that reflect changes in the business climate, we achieved the twelfth consecutive year of sales growth in the first nine months on an effective sales basis (see note). The result was record -high gross profit in the first nine months for the tenth consecutive year. 2 COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22 Note: COMTURE started applying Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) in the fiscal year ended March 31, 2021, which is earlier than required. Sales comparisons use the assumption that this standard had been u sed in prior fiscal years too. In the Cloud Solutions Business, sales and the gross profit increased because of higher demand for several services. Sources of growth include the use of collaborations with Microsoft and Salesforce.com to build customer information systems, the shift of internal data systems to the cloud, primarily at large companies in the manufacturing and service sectors, and consulting and other services involving the digitalization of business processes. In the Digital Solutions Business, sales and the gross profit increased. One reason is growth of the data analysis business, which includes anti-money laundering for financial institutions, and other activities. Growth of the data management business, such as building and maintaining infrastructures for collecting and storing large amount of data for retail companies, was another reason for the increases in sales and earnings. In the Business Solutions Business, sales and the gross profit increased along with the growth in demand for many services. There was growth of the SAP business, including the use of SAP’s S/4HANA ERP system, increasing demand for the development of IT systems for human resources, increasing demand for the use of COMTURE products for connections to the Japanese Banks’ Payment Clearing Network, and other areas of growth. In the Platform, Operation Services Business, sales and the gross profit increased. Demand is increasing for the construction of Amazon Web Services (AWS) and other cloud environments and services for the shift of operations to the cloud. There is also growth of the business for operating cloud environments and increasing demand for the outsourcing and security support of IT system operations. In the Digital Learning Business, sales and gross profit increased because of growth of the DX education business for cloud service certifications of Microsoft, Salesforce, ServiceNow and other companies as well as the growth of sales at a subsidiary newly consolidated in this fiscal year. First nine months of FY3/21 First nine months of FY3/22 (Millions of yen) Change Change (%) Cloud Solutions Business Digital Solutions Business Business Solutions Business Platform, Operation Services Business Digital Learning Business Net sales Gross profit Net sales Gross profit Net sales Gross profit Net sales Gross profit Net sales Gross profit Activities of the business categories are as follows. 6,838 1,744 2,095 590 4,392 1,001 3,704 910 1,208 325 875 392 391 132 277 121 388 93 1,029 321 14.7% 29.0% 23.0% 28.8% 6.8% 13.8% 11.7% 11.4% 575.0% 9,023.0% Business Category Activities Cloud Solutions Business Digital Solutions Business Providing system solutions and other activities using collaborations with Microsoft, Salesforce.com, ServiceNow, Pega and other global platformers. Providing data analysis solutions using SAS, Informatica and other big data/AI tools, support for the automation of business processes using UiPath, Automation Anywhere and other robotic process automation tools. 5,962 1,352 1,703 458 4,114 880 3,315 817 179 3 3 Business Solutions Business Platform, Operation Services Business Digital Learning Business COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22 Construction, operation, modernization and consulting concerning accounting, personnel, fintech and other core IT systems using collaborations with SAP and other ERP package vendors System and network environment designs, construction and operation using collaborations with cloud platformers (Amazon Web Service, Google Cloud Platform, etc.) and hardware vendors (Hewlett Packard Enterprise, Dell, Cisco, etc.); remote surveillance of IT systems at the COMTURE Group’s service center; help desk operations. Education services using e-learning and other platforms to upgrade the IT skills of a company’s employees and enable employees to acquire platform vendor certifications. In the first nine months of the fiscal year, the COMTURE Group performed as follows. First nine months of FY3/21 First nine months of FY3/22 (Millions of yen) Change Change (%) 18,239 4,572 3,053 3,052 1,925 2,963 1,060 823 783 405 19.4% 30.2% 36.9% 34.5% 26.7% Net sales Gross profit Operating profit Ordinary profit Profit attributable to owners of parent 15,275 3,511 2,230 2,269 1,519 Sales increased as more resources were shifted to DX-related businesses and sales activities backed by stronger relationships with platformers and tool vendors and for other reasons. The Digital Learning Business subsidiary also contributed to sales growth. As a result, sales increased 19.4% from one year earlier as COMTURE posted the twelfth consecutive year of effective sales growth in the first nine months of a fiscal year. Gross profit increased 30.2%. One reason was a 6.3% increase in sales per employee. This was attributable to upgrading proposal skills, improvements in productivity and the quality of services, the expansion of consulting activities, the shift of resources to growing market sectors, and other reasons. Gross profit increased significantly even though there was a big increase in labor cost to improve employees’ job satisfaction and an increase in outsourcing expenses due to the growth of business operations. Operating profit increased 36.9% despite an increase in up-front investments for growth, such as for recruiting and training employees to earn certifications, and an increase in goodwill amortization. Earnings were higher mainly because of a decline in commuting, meeting and other expenses because of working style reforms, including the use of teleworking and internet conferences. Profit attributable to owners of parent increased 26.7% to an all-time high for the first nine months. The shareholders’ equity ratio, which is an indicator of financial soundness, was 77.0%. These figures demonstrate our ability to maintain high levels of both financial soundness and prof itability. (2) Explanation of Financial Position Total assets were 17,561 million yen at the end of the third quarter, 1,077 million yen more than the end of the previous fiscal year. Notes and accounts receivable-trade decreased 582 million yen as payments for these receivables were collected, investment securities decreased 170 million yen because of valuation loss due to decline in actual value and other factors, and goodwill decreased 136 million yen because of amortization. Cash and deposits increased 1,924 million yen mainly due to an increase in profit before income taxes. Liabilities decreased 90 million yen to 4,039 million yen. Income taxes payable increased 389 million yen due to an increase in profit before income taxes, and accrued expenses and other current liabilities increased 172 million yen and 103 million yen, respectively, as the end of the third quarter was a bank holiday. Provision for bonuses decreased 426 million yen because of the payment of bonuses, and short-term and long-term borrowings decreased 370 million yen because of repayments. 4 COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22 Net assets increased 1,168 million yen to 13,522 million yen mainly because of profit attributable to owners of parent of 1,925 million yen and dividend payments of 772 million yen. (3) Explanation of Consolidated Forecast and Other Forward-looking Statements There are no revisions to the full-year consolidated earnings forecast for the fiscal year ending March 31, 2022 that was announced in the “Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022 (Japanese GAAP)” on July 30, 2021. The above forecasts are based on judgments made in accordance with information available to management at the time this report was prepared. Actual results may differ from these forecasts for a number of reasons. 5 2. Quarterly Consolidated Financial Statements and Notes (1) Quarterly Consolidated Balance Sheet COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22 FY3/21 (As of Mar. 31, 2021) 3Q of FY3/22 (As of Dec. 31, 2021) (Millions of yen) Notes and accounts receivable-trade Assets Current assets Cash and deposits Work in process Other Total current assets Non-current assets Property, plant and equipment Tools, furniture and fixtures, net Total property, plant and equipment Buildings, net Vehicles, net Other, net Intangible assets Goodwill Software Other Total intangible assets Investments and other assets Investment securities Guarantee deposits Deferred tax assets Other Total investments and other assets Total non-current assets Total assets 8,251 4,186 88 262 12,788 483 263 7 1 755 935 9 2 947 804 642 482 62 1,991 3,694 16,483 10,175 3,603 193 277 14,250 447 216 5 – 669 798 8 2 810 633 641 483 72 1,831 3,310 17,561 6 COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22 FY3/21 (As of Mar. 31, 2021) 3Q of FY3/22 (As of Dec. 31, 2021) (Millions of yen) Current portion of long-term borrowings Accrued expenses Income taxes payable Provision for bonuses Provision for bonuses for directors (and other officers) Liabilities Current liabilities Accounts payable-trade Short-term borrowings Other Total current liabilities Non-current liabilities Retirement benefit liability Asset retirement obligations 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 Total accumulated other comprehensive income Total net assets Total liabilities and net assets 3,613 1,038 500 70 384 274 676 20 647 132 244 139 516 4,129 1,022 3,617 7,812 (109) 12,342 11 11 12,353 16,483 1,118 200 – 556 664 250 20 750 3,561 114 244 118 477 4,039 1,022 3,631 8,965 (107) 13,511 10 10 13,522 17,561 7 COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income (For the Nine-month Period) First nine months of FY3/21 (Apr. 1, 2020 – Dec. 31, 2020) First nine months of FY3/22 (Apr. 1, 2021 – Dec. 31, 2021) (Millions of yen) Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit Non-operating income Interest income Dividend income Gain on cancellation of insurance policies Gain on sales of investment securities Gain on redemption of investment securities Other Total non-operating income Non-operating expenses Interest expenses Other Total non-operating expenses Ordinary profit Extraordinary income Loss on valuation of investment securities Gain on sale of investment securities Total extraordinary income Extraordinary losses Loss on retirement of non-current assets Loss on valuation of investment securities Total extraordinary losses Profit before income taxes Income taxes Profit Profit attributable to owners of parent 15,275 11,763 3,511 1,281 2,230 48 56 3 0 1 1 1 0 9 7 – – 3 – 3 17 2,269 2,265 746 1,519 1,519 18,239 13,666 4,572 1,518 3,053 5 0 – – – 12 17 1 12 4 18 5 5 0 3,052 147 147 2,910 985 1,925 1,925 8 COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22 Quarterly Consolidated Statement of Comprehensive Income (For the Nine-month Period) Profit Other comprehensive income Valuation difference on available-for-sale securities Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent First nine months of FY3/21 (Apr. 1, 2020 – Dec. 31, 2020) First nine months of FY3/22 (Apr. 1, 2021 – Dec. 31, 2021) (Millions of yen) 1,519 13 13 1,532 1,532 1,925 0 0 1,924 1,924 9 COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22 (3) Notes to Quarterly Consolidated Financial Statements Going Concern Assumption Not applicable. Significant Changes in Shareholders’ Equity Not applicable. Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements Calculation of tax expense The tax expenses were calculated by first estimating the effective tax rate after the application of tax effect accounting with respect to profit before income taxes for the fiscal year in which the quarter under review falls, and multiplying that rate by the quarterly profit before income taxes for the quarter under review. Changes in Accounting Policies COMTURE has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019) and other standards from the beginning of the first quarter of the current fiscal year, and has applied the new accounting policies set forth by the Accounting Standard for Fair Value Measurement, etc. prospectively in accordance with the transitional treatment prescribed in Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No.10, July 4, 2019). There is no effect of the application of these standards on the quarterly consolidated financial statements. Segment and Other Information Segment Information I First nine months of FY3/21 (Apr. 1, 2020 – Dec. 31, 2020) No segment-related information is provided because COMTURE has only a single business segment. II First nine months of FY3/22 (Apr. 1, 2021 – Dec. 31, 2021) No segment-related information is provided because COMTURE has only a single business segment . Additional Information Amounts in the financial statements, presented in thousands of yen in prior periods, are presented in millions of yen beginning with the current first quarter. To simplify prior-year comparisons, figures for the previous fiscal year and the first nine months of the previous fiscal year have been changed to millions of yen. This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation. 10