アダストリア（2685） – Notice Concerning Revisions to Consolidated Earnings Forecasts for the Fiscal Year Ended February 2022 and Upward Revision of Dividend Forecast

To Whom It May Concern, March 18, 2022 Company name Adastria Co., Ltd. Representative Michio Fukuda, Chairman of the Board Inquiries (Securities code: 2685, TSE First Section) Itsuo Iwakoshi, Senior Vice President, Head of Corporate Planning Office (TEL:03-5466-2060) yen 84.14 108.34 24.20 28.8 (14.88) Notice Concerning Revisions to Consolidated Earnings Forecasts for the Fiscal Year Ended February 2022 and Upward Revision of Dividend Forecast At a meeting held March 18, 2022, the Adastria Co., Ltd. board of directors resolved to revise consolidated earnings and dividend forecasts for the fiscal year ending February 2022, originally published April 5, 2021, as follows. 1． Revision of Full-year Consolidated Earnings Forecast (March 1, 2021 to February 28, 2022) Net sales Operating profit Ordinary profit Net income per share Previous forecast (A) Revised forecast (B) Change (B-A) million yen million yen million yen 219,000 201,500 (17,500) 6,500 6,500 0 6,500 8,100 1,600 Change (%) (Reference) Previous-year results (FYE February 2021) (Note) The forecasts above are based on information available at the time this report was prepared. Actual results may 183,870 2,981 (693) (8.0) 24.6 28.9 766 0 Net income attributable to owners of the parent million yen 3,800 4,900 1,100 differ from forecasts due to various factors. 2. Reasons for Earnings Forecast Revisions When publishing the original forecasts on April 5, 2021, the company assumed that the impact of COVID-19 would remain for the first half of the fiscal year ending February 2022, but would gradually subside thereafter, with the economy normalizing over the second half of the fiscal year. However, the business environment remained uncertain throughout the year and states of emergency or special measures to prevent the spread of infections were declared for almost the entire first half of the fiscal year. Further, customer traffic to stores declined significantly in the second half of the year due to the spread of COVID-19 infections. Given the circumstances described above, the company expects net sales to underperform the previous forecast. At the same time, however, the company expects operating profit to perform nearly in line with the previous forecast, 2 owing to the role of efficient inventory management, limited discount sales, and control over selling, general, and administrative expenses in securing gross profit margin. The company also expects ordinary profit to exceed the previous forecast due to the receipt of subsidies, recorded as non-operating income. Net income attributable to shareholders of the parent should exceed the previous forecast as a result of the increase in ordinary profit, despite the company’s posting of extraordinary losses, including impairment losses related to stores. 3. Estimated difference between Parent Company (non-consolidated) forecasts and previous year’s results (March 1, 2021 to February 28, 2022) Net sales Operating profit Ordinary profit Net income attributable to owners of the parent Net income per share Previous-year results (A) Current-year forecast (B) Change (B-A) Change (%) million yen million yen million yen million yen 160,940 174,000 13,059 8.1 1,521 5,500 3,978 261.4 2,775 6,600 3,825 137.8 (527) 4,400 4,927 － yen (11.32) 97.28 108.60 － 4. Reasons for the estimated difference between the Parent Company (non-consolidated) forecast and the previous-year’s Even though the impact of the COVID-19 infection remained, the Parent Company (non-consolidated) results in FY2022 are expected to differ from the previous year’s results due to improved store operating conditions compared to the previous year and steady growth in e-commerce sales. 5. Revisions to Dividend Forecasts (Previous forecast) Fiscal year ending February 2022 Revised forecast Current-year results (Previous-year results) End of Q2 Annual Dividend Year-End Total Yen － － 25.00 15.00 Yen 25.00 30.00 － 25.00 6. Reasons for Dividend Forecast Revisions The basic policy of the company is to pay a dividend payout ratio of 30% before amortization of goodwill as a means of returning profits to shareholders. When publishing the original forecasts on April 5, 2021, the company forecast dividends of 50 yen per share for the fiscal year ending February 2022 (consolidated payout ratio of 59.4%). This decision took into account the stability of dividends and the balance between investment and return. In conjunction with the upward revision to the consolidated net income forecast for the full year as stated above, the company has decided to pay a 30 yen per share year-end dividend for the current fiscal year. As a result, the annual dividend will be 55 yen per share (consolidated payout ratio 50%). Yen 50.00 55.00 － 40.00 results 2