サーバーワークス（4434） – [Delayed]Consolidated Financial Results for the Year Ended February 28, 2022

Note:ThisdocumentisatranslationofapartoftheoriginalJapaneseversionandprovidedforreferencepurposesonly.IntheeventofanydiscrepancybetweentheJapaneseoriginalandthisEnglishtranslation,theJapaneseoriginalshallprevail.Consolidated Financial Resultsfor the Year Ended February 28, 2022[Japanese GAAP]April 14, 2022Company name: Serverworks Co.,Ltd.Stock exchange listing: TokyoCode number: 4434URL: https://www.serverworks.co.jp/Representative: Ryo OishiContact: Hiroyuki OshioPhone: 03（5579）8029Scheduled date of Annual General Meeting of Shareholders: May 27, 2022Scheduled date of commencing dividend payments: ーScheduled date of filing annual securities report: May 27, 2022Availability of supplementary briefing material on annual financial results: YesSchedule of annual financial results briefing session: YesDirectorRepresentative Director, President(Amounts of less than one million yen are rounded down)1. Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (March 01, 2021 to February 28, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)Fiscal year endedFebruary 28, 2022February 28, 2021(Note) Comprehensive income:Net salesOperating profitOrdinary profitMillion yen10,920-%–Fiscal year ended February 28, 2022:Fiscal year ended February 28, 2021:Million yen638-%–¥¥%Million yen-653–95 million- millionProfit attributable toowners of parentMillion yen442–%]-%][[%–Basic earnings pershareDiluted earnings pershareRate of return onequityOrdinary profit tototal assets ratioOperating profit tonet sales ratioFiscal year endedFebruary 28, 2022February 28, 2021(Reference) Equity in earnings (losses) of affiliated companies:Yen57.74-Yen55.82-%4.9-Fiscal year ended February 28, 2022:Fiscal year ended February 28, 2021:%5.6-¥¥(2) Consolidated Financial PositionTotal assetsNet assetsCapital adequacy ratioNet assets per shareAs ofFebruary 28, 2022February 28, 2021(Reference) Equity: As of February 28, 2022:As of February 28, 2021:Million yen11,673-Million yen9,088-¥¥9,035 million- million%77.4-(3) Consolidated Cash FlowsCash flows fromoperating activitiesCash flows frominvesting activitiesCash flows fromfinancing activitiesFiscal year endedFebruary 28, 2022February 28, 2021Million yen337-Million yen(1,067)-Million yen101-Cash and cashequivalents at the endof periodMillion yen6,798-%5.8-6 million- millionYen1,176.20-　2. DividendsFiscal year endedFebruary 28, 2021February 28, 2022Fiscal year endingFebruary 28, 2023(Forecast)Annual dividends1stquarter-endYen2ndquarter-endYen3rdquarter-endYenYear-endTotal—0.000.000.00Yen0.000.00Yen0.000.000.000.00—TotaldividendsMillion yen–%—Payoutratio(consolidated)Dividendsto netassets(consolidated)3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2023 (March 01, 2022 to February 28, 2023)Net salesOperating profit(% indicates changes from the previous corresponding period.)Basic earnings perProfit attributable toshareowners of parentOrdinary profitFull yearMillion yen13,485% Million yen42923.5% Million yen453(32.8)% Million yen373(30.5)%(15.6)Yen48.74* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): NoNewExclusion:–(Company name:(Company name:%–))(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement1) Changes in accounting policies due to the revision of accounting standards: No2) Changes in accounting policies other than 1) above: No3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)1) Total number of issued shares at the end of the period (including treasury shares):February 28, 2022:February 28, 2021:7,681,948 shares7,588,044 shares2) Total number of treasury shares at the end of the period:February 28, 2022:February 28, 2021:372 shares340 shares3) Average number of shares during the period:Fiscal Year ended February 28, 2022:Fiscal Year ended February 28, 2021:7,661,424 shares7,232,317 shares　Consolidated Financial StatementsConsolidated Balance SheetsAssetsCurrent assetsCash and depositsNotes and accounts receivable – tradeWork in processAdvance payments to suppliersAllowance for doubtful accountsOtherTotal current assetsNon-current assetsProperty, plant and equipmentBuildingsAccumulated depreciationBuildings, netTools, furniture and fixturesAccumulated depreciationTools, furniture and fixtures, netTotal property, plant and equipmentIntangible assetsTrademark rightSoftwareSoftware in progressOtherTotal intangible assetsInvestments and other assetsInvestment securitiesShares of subsidiaries and associatesOtherTotal investments and other assetsTotal non-current assetsTotal assets(Thousand yen)As of February 28,20226,798,1911,607,30082,344828,486(1,717)95,1579,409,76286,688(32,515)54,17325,340(15,719)9,62163,7943,20894,95417,04475115,2831,921,33386,64376,2642,084,2412,263,31811,673,081　LiabilitiesCurrent liabilitiesAccounts payable – tradeAdvances receivedProvision for bonusesIncome taxes payableProvision for loss on order receivedOtherTotal current liabilitiesNon-current liabilitiesAsset retirement obligationsDeferred tax liabilitiesTotal non-current liabilitiesTotal liabilitiesNet assetsShareholders’ equityShare capitalCapital surplusRetained earningsTreasury sharesTotal shareholders’ equityAccumulated other comprehensive incomeValuation difference on available-for-salesecuritiesTotal accumulated other comprehensive incomeNon-controlling interestsTotal net assetsTotal liabilities and net assets(Thousand yen)As of February 28,20221,274,414605,40669,467161,35019,814259,4152,389,86714,310180,084194,3942,584,2613,218,0693,208,7952,065,262(1,994)8,490,132544,952544,95253,7359,088,81911,673,081　Consolidated Statements of Income and Comprehensive IncomeConsolidated Statements of Income(Thousand yen)For the fiscal yearended February 28,2022Net salesCost of salesGross profitSelling, general and administrative expensesOperating profitNon-operating incomeDividend incomeShare of profit of entities accounted for using equitymethodCommission incomeLoss on investments in investment partnershipsOtherTotal non-operating incomeNon-operating expensesInterest expensesForeign exchange lossesOtherTotal non-operating expensesOrdinary profitExtraordinary lossesSpecial executive bonusesOtherTotal extraordinary lossesProfit before income taxesIncome taxes – currentIncome taxes – deferredTotal income taxesProfitLoss attributable to non-controlling interestsProfit attributable to owners of parent10,920,8319,174,4981,746,3331,107,620638,7127,7726,07539,7042,71356,2651,90921,44714,9533,15241,463653,51410,00012810,128643,386226,169(4,596)221,572421,813(20,539)442,353　Consolidated Statements of Comprehensive IncomeProfitOther comprehensive incomeValuation difference on available-for-sale securitiesTotal other comprehensive incomeComprehensive incomeComprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests(Thousand yen)For the fiscal yearended February 28,2022421,813(326,089)(326,089)95,724116,264(20,539)　Consolidated Statements of Changes in Net AssetsFor the fiscal year ended February 28,2022Share capitalCapital surplusRetained earningsTreasury sharesShareholders’ equity3,201,9733,191,9731,592,212(1,866)7,984,29216,09616,09672530,696442,353(Thousand yen)Total shareholders’equity32,19372530,696442,353(128)(128)16,09616,822473,049(128)505,8403,218,0693,208,7952,065,262(1,994)8,490,132Accumulated other comprehensiveincomeValuation differenceon available-for-salesecuritiesTotal accumulatedother comprehensiveincomeNon-controllinginterestsTotal net assets871,041871,041-8,855,33332,19372530,696442,353(128)(326,089)(326,089)53,735(272,353)(326,089)(326,089)544,952544,95253,73553,735233,4869,088,819Balance at beginningof periodChanges duringperiodIssuance of newsharesCapital increase ofconsolidatedsubsidiariesChange in scope ofequity methodProfit attributable toowners of parentPurchase of treasurysharesNet changes initems other thanshareholders’ equityTotal changesduring periodBalance at end ofperiodBalance at beginningof periodChanges duringperiodIssuance of newsharesCapital increase ofconsolidatedsubsidiariesChange in scope ofequity methodProfit attributable toowners of parentPurchase of treasurysharesNet changes initems other thanshareholders’ equityTotal changesduring periodBalance at end ofperiod　Consolidated Statements of Cash FlowsCash flows from operating activitiesProfit before income taxesDepreciationShare-based payment expensesIncrease (decrease) in allowance for doubtful accountsIncrease (decrease) in provision for bonusesIncrease (decrease) in provision for loss on orderreceivedInterest and dividend incomeInterest expensesForeign exchange losses (gains)Share of loss (profit) of entities accounted for usingequity methodLoss (gain) on change in equityLoss (gain) on investments in investment partnershipsDecrease (increase) in trade receivablesDecrease (increase) in inventoriesDecrease (increase) in advance payments to suppliersIncrease (decrease) in trade payablesIncrease (decrease) in accounts payable – otherIncrease (decrease) in advances receivedOther, netSubtotalInterest and dividends receivedInterest paidIncome taxes paidNet cash provided by (used in) operating activitiesCash flows from investing activitiesPurchase of property, plant and equipmentPurchase of intangible assetsPurchase of investment securitiesOther, netNet cash provided by (used in) investing activitiesCash flows from financing activitiesProceeds from issuance of sharesProceeds from share issuance to non-controllingshareholdersPurchase of treasury sharesNet cash provided by (used in) financing activitiesEffect of exchange rate change on cash and cashequivalentsNet increase (decrease) in cash and cash equivalentsCash and cash equivalents at beginning of periodCash and cash equivalents at end of period(Thousand yen)For the fiscal yearended February 28,2022643,38663,635499(431)12,29818,000(7,839)1,909(375)(6,075)12821,447(410,374)(41,603)(556,164)428,04499,879293,457(6,340)553,4817,839(1,909)(221,463)337,948(933)(56,148)(1,009,977)(245)(1,067,305)26,17475,000(128)101,046375(627,934)7,426,1266,798,191