寿スピリッツ（2222） – [Delayed] Summary of Consolidated Financial Results for the Year Ended March 31, 2022

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: Kotobuki Spirits Co., Ltd. Stock exchange listing: Tokyo Stock code: 2222 URL https://www.kotobukispirits.co.jp/ May 13, 2022Representative: Inquiries: PRESIDENT Managing Director, Corporate Planning Seigo Kawagoe Shinji Matsumoto TEL 0859-22-7477 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: June 24, 2022 June 27, 2022 June 27, 2022 Yes Holding of financial results meeting: (1) Consolidated operating results Yes (for analysts and institutional investors) (Amounts less than one million yen are rounded down)1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) 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 32,191 23,204 % Millions of yen 1,402 (2,890) 38.7 (48.6)% Millions of yen 2,921 – (321)– % Millions of yen 1,915 – (569)– % – – Earnings per share Diluted earnings per share Ordinary profit/total assets Operating profit/net sales Profit attributable to owners of parent/equity Yen 61.56 (18.30)Yen – – % 9.7 (2.8) % 11.1 (1.2)Total assets Net assets Equity ratio Net assets per share Millions of yen 27,470 25,052 Millions of yen 20,356 19,341 % 74.1 77.2 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 4,293 82 Millions of yen (526)(605)Millions of yen (1,176)(462)Millions of yen 9,912 7,309 % 4.4 (12.5)Yen 654.15 621.53 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 30.00 30.00 30.00 Yen Millions of yen 30.00 30.00 30.00 933 933 % – 48.7 27.5 % 4.6 4.7 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 Profit Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen 19,180 60.4 1,850 – 1,870 – 1,220 42,000 30.5 5,160 267.8 5,200 78.0 3,400 77.5 % – Yen 39.20 109.26 Percentages indicate year-on-year changesSix 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 31,121,520 shares As of March 31, 2021 31,121,520 shares As of March 31, 2022 2,208 shares As of March 31, 2021 2,164 shares Number of treasury shares at the end of the period Average number of shares during the period Year ended March 31, 2022 31,119,322 shares Year ended March 31, 2021 31,119,517 shares 2 As of March 31, 2021 As of March 31, 2022 (Thousands of yen) 7,309,405 2,889,677 861,540 61,368 580,020 913,470 (667) 12,614,813 11,729,258 (7,461,133) 4,268,125 7,194,065 (4,783,250) 2,410,815 1,940,171 (1,591,046) 349,125 2,887,139 12,216 (1,629) 10,587 2,312 151,437 151,437 133,354 1,380,170 859,913 (15,507) 2,357,930 12,437,470 25,052,283 9,912,584 3,767,856 1,416,694 37,905 540,832 128,925 (299) 15,804,497 11,786,527 (7,779,720) 4,006,807 7,249,984 (5,218,460) 2,031,524 1,979,682 (1,683,438) 296,244 2,855,362 12,216 (4,072) 8,144 9,471 142,219 142,219 141,986 1,360,753 818,676 (5,250) 2,316,165 11,665,936 27,470,433 Consolidated financial statements Consolidated balance sheets Assets Current assets Cash and deposits Notes and accounts receivable – trade Merchandise and finished goods Work in process Raw materials and 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 Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Land Leased assets Accumulated depreciation Leased assets, net Construction in progress Intangible assets Other Total intangible assets Investments and other assets Investment securities Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 3Total property, plant and equipment 9,928,103 9,207,552 As of March 31, 2021 As of March 31, 2022 (Thousands of yen) Liabilities Current liabilities Notes and accounts payable – trade Current portion of long-term borrowings Accounts payable – other Income taxes payable Provision for bonuses Provision for point card certificates Other Total current liabilities Non-current liabilities Long-term borrowings Retirement benefit liability Asset retirement obligations Deferred tax liabilities 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 Remeasurements of defined benefit plans Total accumulated other comprehensive income Total net assets Total liabilities and net assets 838,006 239,880 668,485 99,040 697,316 8,675 525,578 3,076,980 725,860 1,711,820 55,809 8,328 131,737 2,633,554 5,710,534 1,217,800 1,323,161 16,841,423 (3,852) 19,378,532 (20) (23,868) (12,895) (36,783) 19,341,749 25,052,283 922,666 239,880 952,012 908,371 767,274 – 830,216 4,620,419 485,980 1,815,031 56,385 8,328 127,589 2,493,313 7,113,732 1,217,800 1,323,161 17,799,692 (4,158) 20,336,495 5,980 (6,118) 20,344 20,206 20,356,701 27,470,433 4Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income (Thousands of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 23,204,841 11,564,509 11,640,332 14,530,518 (2,890,186) 33 4,003 339 47,224 2,409,841 118,636 2,580,076 753 1,087 3,634 6,207 11,681 (321,791) 7,937 7,937 6 45,333 115,001 160,340 (474,194) 182,404 (86,970) 95,434 (569,628) (569,628) 32,191,705 14,568,923 17,622,782 16,219,979 1,402,803 77 4,197 487 52,825 1,425,956 50,058 1,533,600 1,168 1,034 3,027 9,733 14,962 2,921,441 383 383 2,795 10,899 30,282 43,976 2,877,848 962,586 (409) 962,177 1,915,671 1,915,671 Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit (loss) Non-operating income Interest income Dividend income Purchase discounts Rental income from land and buildings Subsidy income Other Total non-operating income Non-operating expenses Interest expenses Sales discounts Depreciation Other Total non-operating expenses Ordinary profit (loss) Extraordinary income Gain on sale of non-current assets Total extraordinary income Extraordinary losses Loss on sale of non-current assets Loss on retirement of non-current assets Impairment losses Total extraordinary losses Profit (loss) before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit (loss) Profit (loss) attributable to owners of parent 5Consolidated statements of comprehensive income Profit (loss) Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment 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 (Thousands of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (569,628) 3,201 (8,711) (1,654) (7,164) (576,792) (576,792) 1,915,671 6,000 17,750 33,239 56,989 1,972,660 1,972,660 6Consolidated statements of changes in equity Fiscal year ended March 31, 2021 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Thousands of yen) Total shareholders’ equity Balance at beginning of period 1,217,800 1,323,161 18,655,835 (2,376) 21,194,420 (1,244,784) (569,628) (1,244,784) (569,628) (1,476) (1,476) Total changes during period – – Balance at end of period 1,217,800 1,323,161 (1,814,412) 16,841,423 (1,476) (3,852) (1,815,888) 19,378,532 Valuation difference on available-for-sale securities Accumulated other comprehensive income Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Total net assets Balance at beginning of period (3,221) (15,157) (11,241) (29,619) 21,164,801 Changes during period Dividends of surplus Loss attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity Changes during period Dividends of surplus Loss attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (1,244,784) (569,628) (1,476) (7,164) (1,823,052) 19,341,749 3,201 3,201 (20) (8,711) (8,711) (23,868) (1,654) (1,654) (12,895) (7,164) (7,164) (36,783) 7 Fiscal year ended March 31, 2022 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Thousands of yen) Total shareholders’ equity Balance at beginning of period 1,217,800 1,323,161 16,841,423 (3,852) 19,378,532 1,217,800 1,323,161 16,817,601 (3,852) 19,354,710 (23,822) (23,822) (933,580) 1,915,671 (933,580) 1,915,671 (306) (306) Total changes during period – – 982,091 Balance at end of period 1,217,800 1,323,161 17,799,692 (306) (4,158) 981,785 20,336,495 Valuation difference on available-for-sale securities Accumulated other comprehensive income Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Total net assets Balance at beginning of period (20) (23,868) (12,895) (36,783) 19,341,749 (20) (23,868) (12,895) (36,783) 19,317,927 Cumulative effects of changes in accounting policies Restated balance Changes during period Dividends of surplus Loss attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity Cumulative effects of changes in accounting policies Restated balance Changes during period Dividends of surplus Loss attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (23,822) (933,580) 1,915,671 (306) 56,989 1,038,774 20,356,701 6,000 6,000 5,980 17,750 17,750 (6,118) 33,239 33,239 20,344 56,989 56,989 20,206 8 Consolidated statements of cash flows Cash flows from operating activities Profit (loss) before income taxes Depreciation Impairment losses Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in retirement benefit liability Interest and dividend income Interest expenses Increase (decrease) in provision for point card certificates Loss (gain) on sale of non-current assets Loss on retirement of non-current assets Subsidy income Decrease (increase) in trade receivables Decrease (increase) in inventories Decrease (increase) in other current assets Increase (decrease) in trade payables Increase (decrease) in other current liabilities Increase (decrease) in other non-current liabilities Increase (decrease) in accrued consumption taxes Interest and dividends received Other, net Subtotal Interest paid Subsidies received 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 Proceeds from divestments Payments for investments in capital Payments of leasehold and guarantee deposits Proceeds from refund of leasehold and guarantee deposits Net cash provided by (used in) investing Net cash provided by (used in) investing activities (Thousands of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (474,194) 1,420,044 115,001 4,160 90,958 75,575 (4,036) 753 623 (7,931) 45,333 (2,409,841) (124,562) 577,405 (291,012) 202,570 (122,710) 532 (147,122) 1,957 (1,046,497) 4,036 (681) 2,281,864 (1,155,821) 82,901 (588,280) 27,233 (75,082) 50 – (17,092) 122,903 (74,820) (605,088) 2,877,848 1,220,356 30,282 (10,643) 69,958 153,644 (4,274) 1,168 (8,675) 2,412 10,899 (1,425,956) (872,726) (489,770) 361,932 84,425 399,625 (1,706) 221,730 (22,186) 2,598,343 4,274 (1,168) 1,545,227 146,785 4,293,461 (432,916) 15,499 (40,447) 54 (10) (25,321) 22,104 (65,834) (526,871) 9 Cash flows from financing activities Proceeds from long-term borrowings Repayments of long-term borrowings Repayments of finance lease liabilities Purchase of treasury shares Dividends paid 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 (Thousands of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 1,000,000 (214,277) (2,364) (1,476) (1,244,784) (462,901) 3,331 (981,757) 8,291,162 7,309,405 – (239,880) (2,443) (306) (933,580) (1,176,209) 12,798 2,603,179 7,309,405 9,912,584 10