ＲＰＡホールディングス（6572） – [Updated]Summary of Financial Results 2022

Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Consolidated Financial Results for the Year Ended February 28, 2022 April 14, 2022 Tokyo Stock Exchange 6572 https://rpa-holdings.com/ Tomomichi Takahashi, Representative Director Satoshi Matsui, Director +81-3-5157-6388 Company name: RPA Holdings, Inc. Listing: Stock code: URL: Representative: Inquiries: TEL: Scheduled date of the ordinary general meeting of shareholders: Scheduled date of the commencement of dividend payment: Scheduled date of the submission of annual securities report: Preparation of supplementary materials on financial results: Holding of financial results meeting: May 27, 2022 – May 27, 2022 Yes Yes (financial results meeting available via video streaming) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022) (1) Consolidated operating results (Percentages indicate year-on-year changes.) Net sales EBITDA* Operating profit Ordinary profit Fiscal year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen February 28, 2022 February 28, 2021 16,796 49.9 11,206 11.3 1,076 (20.1) 1,346 32.7 331 (37.8) 532 13.0 276 (47.0) 521 36.6 (1,210) – 21 21.1 Profit attributable to owners of parent % % Millions of yen Return on equity Operating margin Note: Comprehensive income: Fiscal year ended February 28, 2022 ¥(1,215) million Fiscal year ended February 28, 2021 ¥21 million [–%] [21.1%] Basic earnings per share Diluted earnings per share Yen Yen (19.74) 0.36 – 0.33 Fiscal year ended February 28, 2022 February 28, 2021 Ratio of ordinary profit to total assets % (9.8) 0.2 % 1.5 2.9 (Reference) Share of profit (loss) of entities accounted for using equity method: * EBITDA (Ordinary profit + Depreciation + Amortization of goodwill + Interest expenses) Fiscal year ended February 28, 2022 ¥(5) million Fiscal year ended February 28, 2021 ¥– million (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share As of February 28, 2022 February 28, 2021 Millions of yen Millions of yen 17,720 18,538 11,645 13,142 % 65.6 70.9 Yen 190.66 224.19 (Reference) Equity capital: As of February 28, 2022 As of February 28, 2021 ¥11,628 million ¥13,136 million % 2.0 4.8 – 1 – (3) Consolidated cash flows Fiscal year ended February 28, 2022 February 28, 2021 2. Cash dividends Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 Fiscal year ending February 28, 2023 (Forecast) Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 Fiscal year ending February 28, 2023 (Forecast) 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 Millions of yen Millions of yen Millions of yen 607 1,579 (973) (553) 60 (15) 13,101 13,405 First quarter-end Second quarter-end Third quarter-end Yen Yen Yen Fiscal year-end Total Yen Yen Annual dividends 0.00 0.00 – 0.00 0.00 – Total annual dividends Payout ratio (consolidated) Dividends on net assets (consolidated) Millions of yen % % – – – – – 0.00 0.00 – – – – – – – – – Note: In its Articles of Incorporation, the Company has designated the last day of its second quarter and the last day of its fiscal year as dividend record dates, but it has not yet formulated a forecast of the dividends to which said record dates will apply. 3. Consolidated earnings forecasts for the fiscal year ending February 28, 2023 (from March 1, 2022 to February 28, 2023) Net sales EBITDA Operating profit Ordinary profit Millions of yen % Millions of yen % Millions of yen % Millions of yen % (Percentages indicate year-on-year changes.) Profit attributable to owners of parent Millions of yen % Basic earnings per share Yen 9,000 3.0 550 (15.9) 100 (61.8) 65 (74.1) (50) – (0.82) 19,350 15.2 1,090 1.3 500 50.9 420 51.7 160 – 2.62 Note: EBITDA (Ordinary profit + Depreciation + Amortization of goodwill + Interest expenses) Six months ending August 31, 2022 Fiscal year ending February 28, 2023 – 2 – * Notes (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None (2) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes due to revision to accounting standards, etc.: None (ii) Changes in accounting policies due to other reasons: None None (iii) Changes in accounting estimates: None (iv) Restatement: (3) Number of issued shares (common shares) (i) Number of issued shares as of the end of the period (including treasury shares) (ii) Number of treasury shares as of the end of the period As of February 28, 2022 As of February 28, 2021 As of February 28, 2022 As of February 28, 2021 (iii) Average number of shares outstanding during the period For the fiscal year ended February 28, 2022 For the fiscal year ended February 28, 2021 Reference: Summary of non-consolidated financial results 61,930,000 shares 58,596,500 shares 940,300 shares – shares 61,299,416 shares 58,500,319 shares 1. Non-consolidated financial results for the fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022) (1) Non-consolidated operating results (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Millions of yen % Millions of yen % Millions of yen Profit % Millions of yen % 1,587 1,642 (3.4) (14.4) 655 689 (5.0) (30.0) 679 738 (7.9) (21.1) (1,464) 304 – (51.6) Fiscal year ended February 28, 2022 February 28, 2021 Fiscal year ended February 28, 2022 February 28, 2021 Basic earnings per share Diluted earnings per share Yen (23.88) 5.21 Yen – 4.74 – 3 – (2) Non-consolidated financial position Total assets Net assets Equity ratio Net assets per share As of February 28, 2022 February 28, 2021 Millions of yen Millions of yen 15,336 16,708 11,633 13,395 % 75.8 80.1 Yen 190.66 228.52 (Reference) Equity capital: * Financial results reports are exempt from audit conducted by certified public accountants or an As of February 28, 2022 As of February 28, 2021 ¥11,628 million ¥13,390 million audit corporation. * Proper use of earnings forecasts and other special items The forward-looking statements contained in these materials, including the earnings forecasts, are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual financial results may differ significantly from the forecasts for various reasons. – 4 – RPA Holdings, Inc. (6572) (Thousands of yen) As of February 28, 2021 As of February 28, 2022 13,405,199 1,492,547 9,652 129,217 141,996 15,178,613 56,624 (4,496) 52,128 116,199 (33,572) 82,627 134,755 1,177,588 653,453 53,140 72 1,884,255 821,751 234,721 284,883 1,341,356 3,360,366 18,538,980 12,623,491 1,771,357 12,016 201,412 788,375 15,396,652 56,624 (9,401) 47,222 126,937 (55,181) 71,756 118,978 570,397 659,772 68,951 72 1,299,193 392,241 227,645 286,220 906,107 2,324,280 17,720,933 Consolidated Financial Statements (1) Consolidated balance sheet Assets Current assets Cash and deposits Notes and accounts receivable – trade Work in process Prepaid expenses Other Total current assets Non-current assets Property, plant and equipment Buildings Accumulated depreciation Buildings, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Total property, plant and equipment Intangible assets Goodwill Software Software in progress Other Total intangible assets Investments and other assets Investment securities Leasehold deposits Deferred tax assets Total investments and other assets Total non-current assets Total assets – 5 – (Thousands of yen) As of February 28, 2021 As of February 28, 2022 RPA Holdings, Inc. (6572) Liabilities Current liabilities Accounts payable – trade Short-term borrowings Current portion of bonds payable Current portion of long-term borrowings Accounts payable – other Income taxes payable Provision for bonuses Provision for variable compensation Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets 1,000,655 1,000,000 244,000 289,029 154,829 288,564 83,268 72,585 560,596 3,693,527 676,000 1,027,339 1,703,339 5,396,866 5,888,936 6,025,055 1,222,858 – 13,136,851 5,263 – 13,142,114 18,538,980 1,342,354 1,500,000 324,000 287,196 193,701 185,388 68,218 – 681,957 4,582,815 752,000 740,143 1,492,143 6,074,958 5,900,441 6,036,560 12,840 (321,260) 11,628,582 5,263 12,129 11,645,974 17,720,933 – 6 – (2) Consolidated statement of income and comprehensive income Consolidated statement of income (Thousands of yen) Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 RPA Holdings, Inc. (6572) Net sales Cost of sales Gross profit Selling, general and administrative expenses Remuneration for directors (and other officers) Salaries and allowances Outsourcing expenses Provision for bonuses Provision of allowance for doubtful accounts Amortization of goodwill Other Total selling, general and administrative expenses Operating profit Non-operating income Interest and dividend income Insurance claim income Foreign exchange gains Gain on investments in investment partnerships Consumption taxes refund Other Total non-operating income Non-operating expenses Interest expenses Foreign exchange losses Commission expenses Loss on investments in investment partnerships Share of loss of entities accounted for using equity method Bond issuance costs Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of businesses Total extraordinary income Extraordinary losses Impairment losses Loss on valuation of investment securities Total extraordinary losses Profit (loss) before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit (loss) Loss attributable to non-controlling interests Profit (loss) attributable to owners of parent – 7 – 11,206,457 7,591,163 3,615,293 144,420 799,719 393,636 81,531 (1,094) 381,554 1,283,122 3,082,889 532,403 129 7,152 – 3,114 5,537 8,041 23,975 20,440 527 257 – – 4,198 9,022 34,446 521,932 – – 167,542 – 167,542 354,389 411,494 (78,134) 333,359 21,030 – 21,030 16,796,392 13,099,801 3,696,590 130,600 813,124 577,708 67,120 – 405,383 1,371,416 3,365,353 331,236 2,332 – 840 – – 647 3,821 21,378 – 993 19,648 5,255 7,632 3,376 58,284 276,773 40,000 40,000 649,847 601,105 1,250,953 (934,179) 282,436 (1,337) 281,099 (1,215,279) (5,261) (1,210,018) Consolidated statement of comprehensive income (Thousands of yen) Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 RPA Holdings, Inc. (6572) (1,215,279) (1,215,279) (1,210,018) (5,261) 21,030 21,030 21,030 – Profit (loss) Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests – 8 – RPA Holdings, Inc. (6572) (3) Consolidated statement of changes in equity Fiscal year ended February 28, 2021 (Thousands of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Balance at beginning of period 5,881,796 6,017,915 1,201,828 – – – Changes during period Issuance of new shares – exercise of share acquisition rights Profit (loss) attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity 7,140 7,140 21,030 Total changes during period 7,140 7,140 21,030 Balance at end of period 5,888,936 6,025,055 1,222,858 Shareholders’ equity Total shareholders’ equity Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 13,101,540 5,263 – 13,106,803 Changes during period Issuance of new shares – exercise of share acquisition rights Profit (loss) attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity 14,280 21,030 – Total changes during period 35,310 Balance at end of period 13,136,851 5,263 – – – – – 14,280 21,030 – – 35,310 13,142,114 – 9 – RPA Holdings, Inc. (6572) Fiscal year ended February 28, 2022 (Thousands of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Balance at beginning of period 5,888,936 6,025,055 1,222,858 – Changes during period Issuance of new shares – exercise of share acquisition rights Profit (loss) attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity 11,505 11,505 (1,210,018) (321,260) Total changes during period 11,505 11,505 (1,210,018) (321,260) Balance at end of period 5,900,441 6,036,560 12,840 (321,260) Shareholders’ equity Total shareholders’ equity Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 13,136,851 5,263 – 13,142,114 23,010 (1,210,018) (321,260) Changes during period Issuance of new shares – exercise of share acquisition rights Profit (loss) attributable to owners of parent 23,010 (1,210,018) Purchase of treasury shares (321,260) Net changes in items other than shareholders’ equity 12,129 12,129 Total changes during period (1,508,268) 12,129 (1,496,139) Balance at end of period 11,628,582 5,263 12,129 11,645,974 – – – 10 – (4) Consolidated statement of cash flows (Thousands of yen) Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 RPA Holdings, Inc. (6572) Cash flows from operating activities Profit (loss) before income taxes Depreciation Amortization of goodwill Impairment losses Loss (gain) on valuation of investment securities Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in variable compensation Interest and dividend income Interest expenses Bond issuance costs Foreign exchange losses (gains) Share of loss (profit) of entities accounted for using equity method Loss (gain) on investments in investment partnerships Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in accounts payable – other Other, net Subtotal Interest received Interest paid Income taxes paid Income taxes refund Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sale of investment securities Purchase of shares of subsidiaries resulting in change in scope of consolidation Purchase of shares of subsidiaries and associates Proceeds from sale of shares of subsidiaries and associates Payments of leasehold deposits Proceeds from refund of leasehold deposits Net cash provided by (used in) investing activities 354,389 422,245 381,554 167,542 – (1,094) 15,989 (60,537) (129) 20,440 4,198 272 – (3,114) (156,490) (9,018) 158,271 (76,346) 495,618 1,713,790 129 (20,525) (371,073) 257,484 1,579,805 (139,542) (280,593) (30,000) – (203,090) – 10,000 (1,280) 90,805 (553,701) (934,179) 372,503 405,383 649,847 601,105 – (15,050) (72,585) (2,332) 21,378 7,632 (840) 5,255 19,648 (278,809) (2,363) 319,799 35,366 18,957 1,150,717 2,332 (20,667) (620,303) 95,789 607,868 (10,738) (417,421) (924,399) 801,904 (348,039) (74,500) – (1,688) 1,514 (973,370) – 11 – RPA Holdings, Inc. (6572) (Thousands of yen) Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 – 215,801 (200,000) 210,000 (252,882) – 14,280 – (2,272) (15,073) (272) 1,010,758 12,394,441 13,405,199 500,000 392,367 (244,000) – (289,029) 490 23,010 (321,967) – 60,871 954 (303,675) 13,405,199 13,101,523 Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from issuance of bonds Redemption of bonds Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from share issuance to non-controlling shareholders Proceeds from issuance of shares Purchase of treasury shares Other, net 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 Cash and cash equivalents at end of period – 12 –