クリーク・アンド・リバー社（4763） – [Delayed]Summary of Consolidated Financial Results for the Year Ended February 28, 2022 (Based on Japanese GAAP)

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 Year Ended February 28, 2022 (Based on Japanese GAAP) April 7, 2022 Company name: CREEK & RIVER Co., Ltd. Stock exchange listing: Tokyo Stock code: 4763 URL https://www.cri.co.jp/ Representative: Inquiries: President and Representative Director Director Yukihiro Ikawa Jun Kurosaki TEL 03-4550-0011 Scheduled date of ordinary general meeting of shareholders: Scheduled date to file Securities Report: Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: May 26, 2022 May 27, 2022 May 27, 2022 Yes Yes Holding of financial results meeting: (1) Consolidated operating results 1. Consolidated financial results for the year ended February 28, 2022 (from March 1, 2021 to February 28, 2022) (Amounts less than one million yen are rounded down)Net sales Operating profit Ordinary profit Percentages indicate year-on-year changesProfit attributable to owners of parent Year ended February 28, 2022 Year ended February 28, 2021 Millions of yen 41,799 37,314 % Millions of yen 3,411 2,447 12.0 13.3 % Millions of yen 3,419 2,485 39.4 17.4 % Millions of yen 2,224 1,647 37.6 18.1 % 35.0 21.2 Earnings per share Diluted earnings per share Ordinary profit/total assets Operating profit/net sales Profit attributable to owners of parent/equity Yen 99.77 74.25 Yen 99.20 74.20 % 20.0 17.9 % 18.0 14.5 Total assets Net assets Equity ratio Net assets per share Millions of yen 19,930 18,087 Millions of yen 12,238 10,318 % 60.5 56.2 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Millions of yen 2,521 1,956 Millions of yen (1,185)(430)Millions of yen (705)62 Millions of yen 8,294 7,498 % 8.2 6.6 Yen 540.83 455.87 Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Total cash dividends (Total) Dividend payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Yen – – – Yen 0.00 0.00 0.00 Yen – – – Yen 16.00 20.00 23.00 Yen Millions of yen 16.00 20.00 23.00 363 454 % 21.5 20.0 20.5 % 3.9 4.1 Year ended February 28, 2022 Year ended February 28, 2021 (2) Consolidated financial position As of February 28, 2022 As of February 28, 2021 (3) Consolidated cash flows Year ended February 28, 2022 Year ended February 28, 2021 2. Cash dividends Year ended February 28, 2021 Year ended February 28, 2022 Year ending February 28, 2023 (Forecast) 13. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023) Net sales Operating profit Ordinary profit Percentages indicate year-on-year changesProfit attributable to owners of parent Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Six months ending August 31, 2022 Full year 23,000 44,000 9.3 5.3 2,500 15.9 2,500 15.0 1,600 13.8 4,000 17.2 4,000 17.0 2,500 12.4 Yen 71.78 112.15 (1) Changes in significant subsidiaries during the year ended February 28, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation): (2) 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: No No No No No (3) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of February 28, 2022 23,009,000 shares As of February 28, 2021 23,009,000 shares As of February 28, 2022 717,700 shares As of February 28, 2021 717,667 shares Number of treasury shares at the end of the period Average number of shares during the period Year ended February 28, 2022 22,291,314 shares Year ended February 28, 2021 22,191,521 shares 4. Notes 2 As of February 28, 2021 As of February 28, 2022 (Thousands of yen) Consolidated financial statements Consolidated balance sheets Assets Current assets Cash and deposits Notes and accounts receivable – trade Merchandise Finished goods Work in process Supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Land Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Leased assets Accumulated depreciation Leased assets, net Total property, plant and equipment Intangible assets Goodwill Software Other Total intangible assets Investments and other assets Investment securities Investments in capital Leasehold and guarantee deposits Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 314,124,550 15,531,586 8,315,320 5,043,213 5,255 332 184,548 1,631 614,336 (40,088) 590,624 (153,424) 437,199 8,616 (6,900) 1,715 2,207 681,277 (433,185) 248,092 14,617 (12,167) 2,450 691,664 159,301 427,845 43,502 630,648 742,370 510 898,765 422,580 581,981 (5,944) 2,640,263 3,962,576 18,087,126 9,204,599 5,434,336 24,903 17,469 192,036 4,663 698,184 (44,607) 621,028 (203,973) 417,055 1,000 (999) 0 2,211 704,095 (482,067) 222,027 3,000 (1,150) 1,850 643,143 157,102 421,023 139,352 717,478 911,557 333,510 889,045 425,359 577,773 (99,324) 3,037,921 4,398,544 19,930,130 As of February 28, 2021 As of February 28, 2022 (Thousands of yen) Liabilities Current liabilities Trade accounts payable Short-term borrowings Current portion of long-term borrowings Income taxes payable Accrued consumption taxes Accrued expenses Provision for bonuses Guarantee implementation reserve Other Total current liabilities Non-current liabilities Long-term borrowings Retirement benefit liability Provision for share awards 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 Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets 6,636,145 6,639,445 2,230,143 1,008,230 195,140 382,724 724,322 808,127 340,753 19,045 927,656 711,518 247,555 169,761 3,512 1,132,347 7,768,493 1,177,194 2,250,451 7,136,504 (476,011) 10,088,139 87,245 (13,423) 73,822 5,750 150,921 10,318,633 18,087,126 2,533,852 850,121 114,784 537,365 593,945 638,106 417,809 19,247 934,212 645,768 78,726 217,686 109,915 1,052,095 7,691,541 1,177,194 2,250,451 9,008,755 (476,070) 11,960,332 61,494 34,007 95,501 800 181,955 12,238,589 19,930,130 4Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income (Thousands of yen) Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 37,314,134 23,975,968 13,338,166 10,890,546 2,447,620 41,799,798 26,393,301 15,406,497 11,994,968 3,411,529 Net sales Cost of sales Gross profit Operating profit Selling, general and administrative expenses Non-operating income Interest income Dividend income Surrender value of insurance policies Subsidy income Share of profit of entities accounted for using equity method Miscellaneous income Other Total non-operating income Non-operating expenses Interest expenses Foreign exchange losses Loss on cancellation of insurance policies Provision of allowance for doubtful accounts Share of loss of entities accounted for using equity method Miscellaneous losses Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Gain on sale of shares of subsidiaries Gain on reversal of share acquisition rights Gain on bargain purchase Gain on termination of retirement benefit plan Total extraordinary income Extraordinary losses Loss on retirement of non-current assets Loss on valuation of investment securities Loss on valuation of shares of subsidiaries and associates Office transfer expense Settlement package Loss due to new corona virus infection Impairment losses Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit (loss) attributable to non-controlling interests Profit attributable to owners of parent 5 11,013 2,485,437 28,693 3,419,258 3,991 7,517 1,473 13,439 7,262 8,593 6,554 48,830 5,308 3,158 – – – 1,642 904 – – – – – – – 1,071 38,999 3,499 20,598 4,188 33,409 19,381 121,149 2,364,287 800,009 (80,226) 719,783 1,644,504 (3,112) 1,647,616 5,129 7,238 821 10,837 – 8,332 4,063 36,423 5,302 1,496 5,031 1,873 8,940 4,896 1,153 581 15,038 1,000 5,750 552 17,913 40,836 23,804 – – – – 10,227 77,258 111,291 3,348,803 1,112,267 6,701 1,118,969 2,229,834 5,725 2,224,108 Consolidated statements of comprehensive income Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests (Thousands of yen) Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 1,644,504 3,917 (6,917) (3,000) 1,641,504 1,644,616 (3,112) 2,229,834 (25,751) 47,431 21,679 2,251,513 2,245,788 5,725 6Changes during period Dividends of surplus Profit attributable to owners of parent Issuance of new shares – exercise of share acquisition rights Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Consolidated statements of changes in equity Fiscal year ended February 28, 2021 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Thousands of yen) Total shareholders’ equity Balance at beginning of period 1,035,594 1,875,135 5,816,375 (536,787) 8,190,318 (327,487) 1,647,616 141,600 141,600 233,716 (201,107) 261,883 Total changes during period Balance at end of period 141,600 1,177,194 375,316 2,250,451 1,320,128 7,136,504 60,775 (476,011) 1,897,820 10,088,139 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 83,328 (6,505) 76,822 11,250 122,166 8,400,558 Changes during period Dividends of surplus Profit attributable to owners of parent Issuance of new shares – exercise of share acquisition rights Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 3,917 3,917 87,245 (327,487) 1,647,616 283,200 (201,107) 495,600 (6,917) (3,000) (5,500) 28,755 20,254 (6,917) (13,423) (3,000) 73,822 (5,500) 5,750 28,755 1,918,075 150,921 10,318,633 (327,487) 1,647,616 283,200 (201,107) 495,600 7 Fiscal year ended February 28, 2022 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity Balance at beginning of period 1,177,194 2,250,451 7,136,504 (476,011) 10,088,139 (363,381) 2,224,108 11,524 (Thousands of yen) Total shareholders’ equity (363,381) 2,224,108 (58) 11,524 (58) Total changes during period – – Balance at end of period 1,177,194 2,250,451 1,872,251 9,008,755 (58) (476,070) 1,872,192 11,960,332 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 87,245 (13,423) 73,822 5,750 150,921 10,318,633 (363,381) 2,224,108 (58) 11,524 (25,751) (25,751) 61,494 47,431 47,431 34,007 21,679 21,679 95,501 (4,950) 31,033 47,762 (4,950) 31,033 1,919,955 800 181,955 12,238,589 Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Change in scope of consolidation Net changes in items other than shareholders’ equity Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Change in scope of consolidation Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 8Consolidated statements of cash flows Cash flows from operating activities Profit before income taxes Depreciation Impairment losses Gain on reversal of share acquisition rights Amortization of goodwill Gain on bargain purchase Office transfer expenses Share of loss (profit) of entities accounted for using equity method Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in retirement benefit liability Increase (decrease) in Guarantee implementation reserve Increase (decrease) in provision for share awards Interest and dividend income Interest expenses Foreign exchange losses (gains) Surrender value of insurance policies Loss (gain) on cancellation of insurance policies Loss (gain) on sale of investment securities Gain on sale of non-current assets Loss on retirement of non-current assets Loss (gain) on valuation of investment securities Loss on valuation of shares of subsidiaries and associates Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Decrease (increase) in other assets Increase (decrease) in other liabilities Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities (Thousands of yen) Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 2,364,287 381,380 19,381 – 36,302 – 20,598 (7,262) 23,898 6,023 24,274 2,680 37,772 (11,508) 5,308 (3,152) (1,473) – – – 1,071 38,999 3,499 (96,584) 137,176 82,293 (143,103) (85,743) 2,836,122 11,503 (5,303) (886,300) 1,956,020 3,348,803 331,669 77,258 (5,750) 56,005 (552) – 8,940 6,020 74,549 (169,576) 202 47,925 (12,367) 5,302 – (821) 5,031 (15,038) (581) 23,804 – – (344,293) (41,945) 283,446 63,846 (213,275) 3,528,602 10,983 (5,205) (1,013,162) 2,521,219 9 Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of investment securities Proceeds from sale of investment securities Purchase of shares of subsidiaries resulting in change in scope of consolidation Payments for sale of shares of subsidiaries resulting in change in scope of consolidation Purchase of shares of unconsolidated subsidiaries Payments for investments in capital Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Loan advances Proceeds from collection of loans receivable Payments of leasehold and guarantee deposits Proceeds from refund of leasehold and guarantee deposits Other payments Other proceeds Net cash provided by (used in) investing activities Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from issuance of shares Proceeds from issuance of share acquisition rights Proceeds from sale of treasury shares Purchase of treasury shares Dividends paid Repayments of lease obligations 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 (Thousands of yen) Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 (81,000) 81,000 (30,016) (40,283) – – (89,991) – (66,887) – (233,768) (30,000) 23,959 (12,888) 101,655 (59,183) 6,891 (430,512) 58,488 20,800 (261,481) 283,200 – 490,100 (201,107) (326,540) (605) 62,854 (2,540) 1,585,823 5,912,496 – 7,498,320 (91,000) – (211,627) 21,325 – – (20,774) (333,000) (89,460) 1,211 (416,751) (40,000) 20,816 (10,485) 1,556 (24,556) 6,913 (1,185,833) (150,250) 5,000 (196,306) – 800 – (58) (362,173) (2,741) (705,731) 46,763 676,417 7,498,320 119,862 8,294,599 10