佐藤商事（8065） – [Delayed]Summary of Consolidated Financial Results for the Year Ended March 31, 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 March 31, 2022 (Based on Japanese GAAP) Company name: SATOSHOJI CORPORATION Stock exchange listing: Tokyo Stock code: 8065 URL http://www.satoshoji.co.jp Representative: Inquiries: Representative Director, President General Manager of Financial Dept. 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: Tetsuo Nozawa Yasuhiro Kii June 17, 2022 June 17, 2022 June 20, 2022 No No May 9, 2022TEL 03-5218-5312 Holding of financial results meeting: (1) Consolidated operating results 1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 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 March 31, 2022 Year ended March 31, 2021 Millions of yen 236,162 175,464 % Millions of yen 5,734 – 2,796 (14.9)% Millions of yen 6,263 3,348 105.1 (14.7)% Millions of yen 4,016 2,785 87.0 (13.0) % 44.2 (2.3)Earnings per share Diluted earnings per share Ordinary profit/total assets Operating profit/net sales Profit attributable to owners of parent/equity Yen 189.52 129.65 Yen 184.94 126.79 % 8.2 6.2 % 4.7 2.9 Total assets Net assets Equity ratio Net assets per share Millions of yen 152,090 115,916 Millions of yen 50,933 47,635 % 33.2 40.8 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 (12,554)7,503 Millions of yen (1,510)(685)Millions of yen 14,418 (6,349)Millions of yen 2,875 2,367 % 2.4 1.6 Yen 2,399.63 2,200.84 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 20.00 24.00 29.00 Yen – – – Yen 23.00 34.00 30.00 Yen Millions of yen 43.00 58.00 59.00 923 1,223 % 33.2 30.6 29.8 % 2.0 2.5 Year ended March 31, 2022 Year ended March 31, 2021 (2) Consolidated financial position As of March 31, 2022 As of March 31, 2021 (3) Consolidated cash flows Year ended March 31, 2022 Year ended March 31, 2021 2. Cash dividends Year ended March 31, 2021 Year ended March 31, 2022 Year ending March 31, 2023 (Forecast) 13. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023) Net sales Operating profit Ordinary profit Millions of yen % Millions of yen % Millions of yen % Millions of yen % 130,000 19.3 2,600 8.4 2,800 6.5 2,000 15.7 265,000 12.2 5,500 (4.1)5,900 (5.8)4,200 4.6 Yen 94.38 198.19 Percentages indicate year-on-year changesProfit attributable to owners of parent Earnings per share Six months ending September 30, 2022 Full year 4. Notes (1) Changes in significant subsidiaries during the year ended March 31, 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 Yes 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 March 31, 2022 21,799,050 shares As of March 31, 2021 21,799,050 shares As of March 31, 2022 733,085 shares As of March 31, 2021 312,131 shares Number of treasury shares at the end of the period Average number of shares during the period Year ended March 31, 2022 21,191,361 shares Year ended March 31, 2021 21,484,439 shares 2 As of March 31, 2021 As of March 31, 2022 (Millions of yen) 2,427 48,270 – 14,464 – – 15,978 1,680 (109) 82,711 15,031 (8,911) 6,120 7,725 (6,079) 1,645 8,855 3 840 (638) 202 16,828 180 14,426 64 419 1,377 (75) (15) 16,196 33,204 115,916 2,935 – 9,104 20,628 50,647 253 28,167 6,326 (211) 117,853 15,085 (9,413) 5,671 7,847 (6,317) 1,530 8,860 0 863 (672) 191 16,254 162 15,862 77 633 1,392 (130) (14) 17,820 34,237 152,090 Consolidated financial statements Consolidated balance sheets Assets Current assets Cash and deposits Notes and accounts receivable – trade Notes receivable – trade Electronically recorded monetary claims – operating Accounts receivable – trade Contract assets Merchandise and finished goods 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 Construction in progress Other Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Investments and other assets Investment securities Deferred tax assets Retirement benefit asset Other Allowance for doubtful accounts Allowance for investment loss Total investments and other assets Total non-current assets Total assets 3 As of March 31, 2021 As of March 31, 2022 (Millions of yen) 36,870 8,333 6,730 774 – 1,140 2,661 56,511 8,818 2,399 119 61 370 11,769 68,281 1,321 867 39,234 (262) 41,159 5,782 7 335 4 6,129 338 7 47,635 115,916 50,303 10,432 21,981 1,467 210 1,679 2,020 88,095 9,999 2,509 135 66 349 13,061 101,157 1,321 862 42,072 (740) 43,516 6,325 8 700 – 7,034 374 8 50,933 152,090 Liabilities Current liabilities Accounts payable – trade Electronically recorded obligations – operating Short-term borrowings Income taxes payable Contract liabilities Provision for bonuses Other Total current liabilities Non-current liabilities Long-term borrowings Deferred tax liabilities Retirement benefit liability Provision for retirement benefits for directors (and other officers) 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 Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets 4Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Purchase discounts Share of profit of entities accounted for using equity method Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit Non-operating income Interest income Dividend income Rental income Subsidies for employment adjustment Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expenses Loss on sale of trade receivables Rental expenses Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Subsidy income Other Total extraordinary income Extraordinary losses Loss on retirement of non-current assets Loss on sale of non-current assets Impairment losses Loss on sale of investment securities Loss on valuation of investment securities Loss on valuation of shares of subsidiaries Provision of allowance for investment loss Other Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent 53,348 6,263 175,464 161,092 14,372 11,576 2,796 5 289 149 43 3 180 16 98 787 136 2 56 38 234 343 567 10 24 945 2 0 164 – 65 18 – 6 258 4,036 1,257 (7) 1,250 2,786 0 2,785 236,162 216,456 19,705 13,971 5,734 6 384 152 67 35 7 31 129 813 166 3 65 49 284 20 3 8 – 8 6 0 – – 7 7 294 20 335 5,948 2,085 (154) 1,930 4,017 1 4,016 Consolidated statements of comprehensive income (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Profit Other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Share of other comprehensive income of entities accounted for using equity method Remeasurements of defined benefit plans, net of tax Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests 2,786 2,342 6 144 20 – 2,514 5,300 5,299 1 4,017 550 1 359 (2) (4) 905 4,922 4,920 1 6Consolidated statements of changes in equity Fiscal year ended March 31, 2021 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Millions of yen) Total shareholders’ equity Balance at beginning of period 1,321 868 37,372 (272) – 1,321 Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Other Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (923) 2,785 1,861 39,234 Total (0) 9 9 (262) 39,290 (923) 2,785 (0) 8 – 1,869 41,159 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements accumulated of defined benefit other plans comprehensive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 3,427 0 191 (3) 3,615 296 5 43,207 Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Other Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 2,354 2,354 5,782 6 6 7 7 7 4 2,514 2,514 6,129 42 42 338 1 1 7 (923) 2,785 (0) 8 – 2,557 4,427 47,635 (1) (1) 867 144 144 335 7 Fiscal year ended March 31, 2022 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Millions of yen) Total shareholders’ equity Balance at beginning of period 1,321 867 39,234 (262) 41,159 1,321 867 39,208 (262) Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements accumulated of defined benefit other plans comprehensive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 5,782 335 4 6,129 338 7 47,635 Restated balance 5,782 335 4 6,129 338 7 47,608 (26) (1,002) 4,016 (148) 2,864 42,072 Total – 1,321 Cumulative effects of changes in accounting policies Restated balance Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Change in scope of consolidation Other Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Change in scope of consolidation Other Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 542 542 6,325 7 7 1 1 8 (4) (4) 862 8364 364 700 (4) (4) – 904 904 7,034 35 35 374 (499) 21 (477) (740) (26) 41,133 (1,002) 4,016 (499) 17 (148) – 2,382 43,516 (26) (1,002) 4,016 (499) 17 (148) – 942 3,324 50,933 1 1 8 Consolidated statements of cash flows (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Cash flows from operating activities Profit before income taxes Depreciation Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for retirement benefits for directors (and other officers) Decrease (increase) in retirement benefit asset Increase (decrease) in retirement benefit liability Interest and dividend income Interest expenses Share of loss (profit) of entities accounted for using equity method Subsidy income Loss (gain) on sale of investment securities Loss (gain) on sale and retirement of property, plant and equipment Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Other, net Subtotal Interest and dividends received Subsidies received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sale of investment securities Purchase of shares of subsidiaries and associates Proceeds from sale of shares of subsidiaries and associates Purchase of shares of subsidiaries Loan advances Proceeds from collection of loans receivable Other, net 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 Purchase of treasury shares Dividends paid Other, net Net cash provided by (used in) financing activities 9 4,036 1,051 (78) (11) (269) 8 (295) 136 (3) (10) (567) (340) (2,255) 3,236 2,860 853 8,350 306 10 (138) (1,026) 7,503 (1,566) 446 (39) (118) 682 – – – (265) 40 134 (685) (3,559) 1,200 (2,982) (0) (920) (86) (6,349) 5,948 1,023 156 4 (214) 15 (391) 166 (35) – 285 2 (16,661) (11,844) 14,894 (4,721) (11,369) 402 – (161) (1,425) (12,554) (366) 6 (51) (48) 112 (219) 230 (1,186) (187) 125 75 (1,510) 14,584 4,900 (3,556) (499) (1,004) (5) 14,418 (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 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 (decrease) in cash and cash equivalents resulting from change in scope of consolidation Cash and cash equivalents at end of period (16) 450 1,906 10 2,367 63 416 2,367 91 2,875 10