ゴールドウイン（8111） – 〔Delayed〕Consolidated Financial Results for the Year Ended March 31,2022 (Based on Japanese GAAP)

Notice: This document has been translated from 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. May 13, 2022 Consolidated Financial Results for the Year Ended March 31, 2022 (Based on Japanese GAAP) GOLDWIN INC. Tokyo 8111 https://www.goldwin.co.jp Takao Watanabe, President and Representative Director Michio Shirasaki, Managing Director, Director -Finance Dept. +81-3-3481-7203 Company name: Stock exchange listing: Securities code: URL: Representative: Inquiries: TEL: Scheduled date of ordinary general meeting of shareholders: Scheduled date to commence dividend payments: Scheduled date to file Securities Report: Preparation of supplementary material on financial results: Holding of financial results meeting: June 23, 2022 June 9, 2022 June 23, 2022 Yes Yes (for institutional investors and analysts) (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) (1) Consolidated operating results (Percentages indicate year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Year ended March 31, 2022 March 31, 2021 Millions of yen % Millions of yen % Millions of yen % Millions of yen 98,235 90,479 8.6 (7.6) 16,501 14,838 11.2 (15.1) 20,285 15,984 26.9 (2.4) 14,350 10,734 Note: Comprehensive income Year ended March 31, 2022: Year ended March 31, 2021: ¥15,365 million ¥11,469 million [34.0%] [20.1%] Earnings per share Diluted earnings per share Profit attributable to owners of parent/equity Ordinary profit/total assets Operating profit/net sales Year ended March 31, 2022 March 31, 2021 Yen 316.30 236.64 Yen – – % 24.7 21.6 % 21.3 18.4 Reference: Share of profit (loss) of entities accounted for using equity method Year ended March 31, 2022: Year ended March 31, 2021: ¥3,669 million ¥1,238 million % 33.7 (0.3) % 16.8 16.4 (2) Consolidated financial position As of March 31, 2022 March 31, 2021 Reference: Equity Total assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen 99,085 91,376 63,411 52,916 % 63.9 57.8 Yen 1,398.56 1,164.16 As of March 31, 2022 As of March 31, 2021 ¥63,278 million ¥52,802 million (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Year ended March 31, 2022 March 31, 2021 Millions of yen Millions of yen Millions of yen Millions of yen 18,049 7,401 (1,567) (3,261) (11,853) (162) 25,036 20,287 2. Cash dividends Year ended March 31, 2021 Year ended March 31, 2022 Year ending March 31, 2023 (Forecast) 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 Yen Yen Yen Millions of yen % – – – 15.00 20.00 25.00 – – – 55.00 70.00 65.00 85.00 3,288 3,980 65.00 90.00 29.6 26.9 25.5 % 6.4 6.3 Note: Year-end dividend of ¥55 for the fiscal year ended March 31, 2021 includes commemorative dividend for 70th anniversary of foundation of ¥10 3. 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 (Percentages indicate year-on-year changes) Profit attributable to owners of parent Earnings per share Six months ending September 30, 2022 Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 42,400 11.0 3,000 (9.1) 3,800 (0.9) 2,660 1.1 58.63 Full year 106,000 7.9 17,000 3.0 21,400 5.5 16,000 11.5 352.65 * 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): No (2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements (i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes (ii) Changes in accounting policies due to other reasons: No (iii) Changes in accounting estimates: No (iv) Restatement of prior period financial statements: No (3) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) (ii) Number of treasury shares at the end of the period As of March 31, 2022 As of March 31, 2021 As of March 31, 2022 As of March 31, 2021 (iii) Average number of shares during the period Year ended March 31, 2022 Year ended March 31, 2021 47,448,172 shares 47,448,172 shares 2,202,276 shares 2,091,698 shares 45,370,540 shares 45,360,759 shares [Reference] Overview of non-consolidated financial results 1. Non-consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) (1) Non-consolidated operating results (Percentages indicate year-on-year changes) Net sales Operating profit Ordinary profit Profit Year ended March 31, 2022 March 31, 2021 Millions of yen % Millions of yen % Millions of yen % Millions of yen % 85,838 79,583 7.9 (4.1) 14,029 12,587 11.5 (9.2) 17,484 14,589 19.8 (6.9) 11,951 10,259 16.5 39.2 Year ended March 31, 2022 March 31, 2021 Earnings per share Diluted earnings per share Yen 263.41 226.17 Yen – – (2) Non-consolidated financial position As of March 31, 2022 March 31, 2021 Reference: Equity Total assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen 74,543 70,388 42,065 34,896 % 56.4 49.6 Yen 929.71 769.37 As of March 31, 2022: As of March 31, 2021: ¥42,065 million ¥34,896 million 2. Forecast of non-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 (Percentages indicate year-on-year changes) Earnings per share Six months ending September 30, 2022 Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 38,800 17.1 2,550 (0.9) 4,000 (2.4) 2,800 (12.8) 61.71 Full year 98,000 14.2 15,800 12.6 19,500 11.5 14,200 18.8 312.98 * Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation. * Proper use of financial forecasts, and other special matters Descriptions of the above financial forecasts and other data are based on information currently available to the Company and certain assumptions that we consider to be reasonable. Actual financial results may differ significantly from the forecasts for various reasons. Please refer to “1. Overview of operating results, etc., (4) Future outlook” on page 4 of the attached materials for the suppositions that form the assumptions for the financial forecasts and cautions regarding the use of the financial forecasts. Attached Material Index 1. Overview of Operating Results, etc. …………………………………………………………………………………………… 2 (1) Overview of operating results of the fiscal year under review ………………………………………………….. 2 (2) Status of the financial situation of the fiscal year under review ………………………………………………… 3 (3) Overview of cash flow of the fiscal year under review ……………………………………………………………. 3 (4) Future outlook …………………………………………………………………………………………………………………… 4 2. Basic Approach to the Selection of Accounting Standards …………………………………………………………….. 5 3. Consolidated Financial Statements and Significant Notes Thereto …………………………………………………. 6 (1) Consolidated balance sheet …………………………………………………………………………………………………. 6 (2) Consolidated statement of income and consolidated statement of comprehensive income …………… 8 (Consolidated statement of income) ……………………………………………………………………………………… 8 (Consolidated statement of comprehensive income) ……………………………………………………………….. 9 (3) Consolidated statement of changes in equity ……………………………………………………………………….. 10 (4) Consolidated statement of cash slows …………………………………………………………………………………. 12 (5) Notes regarding consolidated financial statements ……………………………………………………………….. 13 (Notes regarding assumptions of going concern) ………………………………………………………………….. 13 (Changes in accounting policies) ………………………………………………………………………………………… 13 (Segment information, etc.) ……………………………………………………………………………………………….. 14 (Per share information) ……………………………………………………………………………………………………… 15 (Significant subsequent events) ………………………………………………………………………………………….. 16 4. Other ……………………………………………………………………………………………………………………………………. 17 – 1 – 1. Overview of Operating Results, etc. (1) Overview of operating results of the fiscal year under review During the fiscal year ended March 31, 2022, the future outlook of the Japanese economy remained uncertain, with slow movement toward recovery due to the normalization of stay-home given the prolonged effects of the novel coronavirus disease (COVID-19), such as the Tokyo 2020 Olympic and Paralympic Games being held without spectators. In the sports apparel industry, to which our Group belongs, there were some signs of a slight upturn compared to the fiscal year ended March 31, 2021, such as the absence of simultaneous closures in urban areas such as the Tokyo metropolitan area and the Kansai region, and the arrival of record cold weather from late November last year, which led to strong industry-wide sales of warm-keeping winter apparel with excellent thermal insulation properties, such as down and fleece clothing. In this environment, the Group promoted an actual demand-oriented business that shares the values of the brand not only with directly-managed stores but also with wholesale outlets such as large sports mass merchandisers, which led to further promotion of the brand value of our products, especially THE NORTH FACE, to a wide range of customers. In addition to our mainstay men’s lineup, we also enjoyed strong sales at suburban stores mainly targeting families, which led to kids’ and ladies’ lineups, as well as a significant improvement in customer convenience by strengthening the link between directly managed stores and e-commerce sales. We have further promoted collaboration with directly-managed stores by opening the NORTH FACE MOUNTAIN EC site, an EC site focusing on technical products for mountaineering, last October. Despite the uncertainties described above, the EC net sales ratio, which was set as a KPI in the Medium-term Management Plan, exceeded the first-year targets at 13.4% and self-managed net sales at 61% in the fiscal year under review. In addition, by creating attractive products that are chosen by customers, building a stable supply chain, and establishing a sales structure in cooperation with wholesale outlets, we broke the previous record set in the pre-COVID-19 fiscal year ended March 31, 2020 for the first time in two years in terms of net sales, reaching ¥98,235 million (up 8.6% from the previous year). Operating profit was ¥16,501 million (up 11.2% from the previous year), the second highest ever following the fiscal year ended March 31, 2020. This was due to an increase in the ratio of self-managed sales. The Company’s initial forecast anticipated an increase in selling, general and administrative (SG&A) expenses, mainly due to advertising expenses. However, due to the COVID-19 pandemic, many events that attracted customers were cancelled, and the Company emphasized return on investment by utilizing tools such as social media, resulting in a decrease in advertising expenses, which was a factor in the increase of profit. Ordinary profit was ¥20,285 million (up 26.9% from the previous year), mainly due to the strong performance of YOUNGONE OUTDOOR Corporation, an equity-method affiliate in South Korea. Profit attributable to owners of parent also reached ¥14,350 million (up 33.7% from the previous year) thanks to the success of the above efforts, and both ordinary profit and profit attributable to owners of parent reached new record highs. The fiscal year under review was the first year of our Five-Year Medium-term Management Plan, which concludes in the fiscal year ending March 31, 2026, and we have been working towards the goal set forth in this Plan, to “balance the two sustainability goals in our business and the environment.” In particular, the ratio of products using materials with reduced environmental impact was 36.0% as of the end of the fiscal year under review, far exceeding the first-year target of 30.0%. We have also utilized our expertise as a sports apparel manufacturer to promote environmental conservation activities and physical and mental development activities for children, who are the future leaders of our society. Efforts for this include signing comprehensive cooperation agreements with Shari Town in Hokkaido, Hakone Town in Kanagawa Prefecture, and other local governments. Furthermore, with the merger of our wholly-owned subsidiary CANTERBURY OF NEW ZEALAND JAPAN INC., and the establishment of the corporate venture capital GOLDWIN PLAY EARTH FUND, the Company has not only shown determination to strengthen its own business, but also to integrate and streamline its management resources, as well as to solve social issues through open innovation. In this way, the Group intends to steadily move forward in the future with policies that are based on our long-term – 2 – vision, PLAY EARTH 2030, as well as promote initiatives to address environmental challenges and structural reforms in preparation for challenges in new areas of business. (2) Status of the financial situation of the fiscal year under review Assets, liabilities and net assets at the end of the fiscal year under review and their factors are as follows. (Assets) (Liabilities) (Net assets) Total assets at the end of the fiscal year under review amounted to ¥99,085 million, up ¥7,708 million from the end of the previous fiscal year. The main factors were a ¥4,870 million increase in cash and deposits, a ¥2,451 million increase in investment securities, and a ¥1,750 million increase in notes and accounts receivable – trade, despite a ¥1,881 million decrease in merchandise and finished goods. Total liabilities at the end of the fiscal year under review amounted to ¥35,673 million, down ¥2,785 million from the end of the previous fiscal year. The main factors were a ¥2,092 million increase in electronically recorded obligations – operating, and a ¥1,360 million increase in notes and accounts payable – trade, offset by a ¥5,557 million decrease in borrowings. Total net asset at the end of the fiscal year under review amounted to ¥63,411 million, up ¥10,494 million from the end of the previous fiscal year. The main factor was a ¥10,751 million increase in retained earnings. (3) Overview of cash flow of the fiscal year under review Cash and cash equivalents at the end of the fiscal year under review amounted to ¥25,036 million, up ¥4,748 million from the end of the previous fiscal year. The status of each cash flow and their factors are as follows. (Cash flow from operating activities) Cash flow gained as a result of operating activities amounted to ¥18,049 million (up ¥10,647 million in revenue from the previous fiscal year). The main factors were a ¥20,131 million profit before income taxes and an increase of ¥3,447 million in trade payables, which offset the payment of ¥6,728 million in income taxes – current. (Cash flow from investment activities) Cash flow used as a result of investment activities amounted to ¥1,567 million (down ¥1,694 million in expenses from the previous fiscal year). This was mainly due to expenses of ¥1,722 million for the acquisition of non-current assets. (Cash flow from financing activities) Cash flow used as a result of financing activities amounted to ¥11,853 million (up ¥11,691 million in expenses from the previous fiscal year). This was mainly due to a net decrease of ¥5,557 million in borrowings, ¥3,520 million paid for dividends, and ¥2,140 million paid for the acquisition of treasury shares. – 3 – (Reference) Trends in cash flow indicators Equity ratio (%) Equity ratio based on fair value (%) Debt repayment period (years) Fiscal year ended March 31, 2018 Fiscal year ended March 31, 2019 Fiscal year ended March 31, 2020 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 51.0 470.3 0.5 56.8 331.4 0.3 49.6 205.5 1.1 72.5 57.8 351.4 1.3 57.1 63.9 283.6 0.2 223.8 Interest coverage ratio (times) 105.4 148.8 Equity ratio: Equity/total assets Equity ratio based on fair value: Market capitalization/total assets Debt repayment period: Interest-bearing debt/cash flow Interest coverage ratio: Cash flow/interest payments (Notes) 1. All indicators are calculated based on consolidated financial figures. 2. Market capitalization is calculated based on the number of issued shares excluding treasury shares. 3. For cash flow, cash flow from operating activities is used. 4. Interest-bearing debt covers short-term loans payable, long-term loans payable (including current portion) and bonds payable (including current portion) on which interest is paid out of the liabilities recorded on the consolidated balance sheet. For interest payments, the amount of interest paid as recorded in the consolidated statements of cash flows is used. (4) Future outlook The Group has formulated a Medium-term Management Plan that looks five years into the future and has set targets of ¥125,000 million in net sales and ¥21,000 million in operating profit for the fiscal year ending March 31, 2026, the final year of the Plan. In the first fiscal year, sales fell short of the initial forecast amid a challenging external environment, but maintained the solid sales from the latter half of the third quarter onward into the fourth quarter, and sales reached a new record high. In addition, the figures exceeded initial forecasts in operating profit and other lower levels of profit. In this context, in the second year of the Medium-term Management Plan that was formulated in May last year, we will continue to develop infrastructure such as core systems and distribution systems to build a logistics system that can handle the expansion of EC sales. The Company also intends to promote initiatives to reduce environmental impact as we did in the first fiscal year. Although the prices of raw materials as well as costs in logistics, labor and others have been rising compared to the time when the Medium-term Management Plan was formulated, we will continue to promote systematic production, mainly of staple products, and will also consider reviewing the prices of some products. With regard to the investment plan, although the external environment is changing drastically, we are committed to executing investments in growth areas. For financial results of the fiscal year ending March 31, 2023, net sales are forecast to be ¥106,000 million, an increase of 7.9% from the previous fiscal year. We aim to achieve a record-high performance in terms of both net sales and each profit while offsetting increases in depreciation and labor costs associated with investments for growth, with operating profit to increase by 3.0% year-on-year to ¥17,000 million, ordinary profit by 5.5% year-on-year to ¥21,400 million given the expected increase in share of profit of entities accounted for using equity method, and profit attributable to owners of parent to increase by 11.5% year-on-year to ¥16,000 million. For dividends in the fiscal year ending March 31, 2023, we plan to increase the dividend per share by ¥5, to ¥90 (interim dividend: ¥25 and year-end dividend: ¥65) from the dividend per share in the fiscal year ended March 31, 2022, marking the 12th consecutive year of dividend increase. If the spread of COVID-19 becomes more serious, it could have an impact on our financial results. However, since it is difficult to foresee future trends at this point, we do not anticipate any impact from this in our forecast of financial results. If it is deemed necessary to revise the forecast of financial results due to future trends in financial results or other factors, we will disclose the revised forecast promptly. – 4 – 2. Basic Approach to the Selection of Accounting Standards For the time being, the Group’s policy is to prepare its consolidated financial statements in accordance with JGAAP, taking into consideration the comparability of the consolidated financial statements between periods and between companies. As for the application of International Financial Reporting Standards (IFRS), the Company’s policy is to respond appropriately to this taking into consideration various circumstances in Japan and overseas. – 5 – 26,406 – 630 10,402 2,797 12,554 326 542 1,841 (13) 55,486 1,718 269 4,691 1,138 823 8,642 912 1,490 635 54 3,093 24,060 45 1,637 2,708 70 1,608 1,920 (188) 31,862 43,598 99,085 3. Consolidated Financial Statements and Significant Notes Thereto (1) Consolidated balance sheet As of March 31, 2021 As of March 31, 2022 (Millions of yen) 21,536 9,281 – – 3,175 14,435 199 518 2,032 (10) 51,168 1,681 101 4,691 1,231 527 8,233 731 1,792 318 70 2,912 21,608 46 1,267 2,696 148 1,449 2,110 (265) 29,061 40,207 91,376 Assets Current assets Cash and deposits Notes and accounts receivable – trade Notes receivable – trade Accounts receivable – trade Electronically recorded monetary claims – operating 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, net Machinery, equipment and vehicles, net Land Leased assets, net Other, net Total property, plant and equipment Intangible assets Software Trademark right Software in progress Other Total intangible assets Investments and other assets Investment securities Long-term loans receivable Retirement benefit asset Guarantee deposits Distressed receivables Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets – 6 – Liabilities Current liabilities Notes and accounts payable – trade Electronically recorded obligations – operating Short-term borrowings Current portion of long-term borrowings Lease liabilities Accounts payable – other Income taxes payable Accrued consumption taxes Accrued expenses Contract liabilities Provision for bonuses Provision for sales returns Other Total current liabilities Non-current liabilities Long-term borrowings Lease liabilities Retirement benefit liability Asset retirement obligations 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 Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets (Millions of yen) As of March 31, 2021 As of March 31, 2022 3,544 10,131 3,600 2,520 566 1,998 3,910 1,645 1,932 – 1,668 51 715 32,285 3,626 1,122 232 56 807 329 6,173 38,459 7,079 264 50,604 (4,138) 53,810 490 27 (457) (1,068) (1,007) 114 52,916 91,376 4,904 12,223 – 1,437 566 2,359 3,112 1,428 1,424 556 1,648 – 725 30,386 2,751 901 217 57 947 412 5,287 35,673 7,079 276 61,356 (5,377) 63,335 480 98 196 (830) (56) 132 63,411 99,085 – 7 – 98,235 46,491 51,743 – 51,743 35,241 16,501 25 59 3,669 241 3,996 83 27 22 78 212 20,285 0 51 – 51 6 180 8 – 7 4 206 20,131 5,938 (221) 5,717 14,413 62 14,350 (2) Consolidated statement of income and consolidated statement of comprehensive income (Consolidated statement of income) (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 90,479 42,470 48,008 17 47,991 33,152 14,838 23 55 1,238 90 1,407 129 22 18 91 261 15,984 0 33 15 49 0 147 26 278 13 9 476 15,557 4,822 (56) 4,766 10,791 56 10,734 Net sales Cost of sales Gross profit Provision for sales returns Gross profit – net Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Share of profit of entities accounted for using equitymethod Other Total non-operating income Non-operating expenses Interest expenses Loss on sale of notes receivable – trade Loss on cancellation of insurance policies Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Gain on transfer of non-current assets Total extraordinary income Extraordinary losses Loss on disposal of non-current assets Impairment losses Loss on store closings Loss on valuation of investment securities Extra retirement payments 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 – 8 – (Consolidated statement of comprehensive income) 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 Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entitiesaccounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controllinginterests 10,791 551 10 (3) 44 74 678 11,469 11,412 56 (Millions of yen) 14,413 (10) 12 264 236 449 951 15,365 15,302 62 – 9 – (3) Consolidated statement of changes in equity Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021) Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity Balance at beginning of period 7,079 1,439 44,157 (4,233) 48,443 Restated balance 7,079 1,439 44,157 (4,233) 48,443 Cumulative effects of changes in accounting policies Changes during period Purchase of treasury shares Disposal of treasury shares Cancellation of treasury shares Dividends of surplus Profit attributable to owners of parent Net changes in items other than shareholders’ equity Total changes during period Balance at end of period – 7,079 (294) (881) (1,175) 264 (1,467) (2,818) 10,734 6,447 50,604 (2,602) 1,815 881 94 (4,138) 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 Non-controlling interests Total net assets Balance at beginning of period (60) 67 (577) (1,114) (1,686) 95 46,852 Restated balance (60) 67 (577) (1,114) (1,686) 95 46,852 (Millions of yen)Total shareholders’ equity (2,602) 53 – (2,818) 10,734 5,366 53,810 (2,602) 53 – (2,818) 10,734 697 6,064 Cumulative effects of changes in accounting policies Changes during period Purchase of treasury shares Disposal of treasury shares Cancellation of treasury shares Dividends of surplus Profit attributable to owners of parent Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 120 120 46 46 678 678 19 19 (457) (1,068) (1,007) 114 52,916 (39) (39) 27 551 551 490 – 10 – Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022) Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity Balance at beginning of period 7,079 264 50,604 (4,138) 53,810 Cumulative effects of changes in accounting policies (79) (79) Restated balance 7,079 264 50,525 (4,138) 53,731 (Millions of yen)Total shareholders’ equity Changes during period Purchase of treasury shares Disposal of treasury shares Cancellation of treasury shares Dividends of surplus Profit attributable to owners of parent Net changes in items other than shareholders’ equity Total changes during period Balance at end of period – 7,079 Cumulative effects of changes in accounting policies Changes during period Purchase of treasury shares Disposal of treasury shares Cancellation of treasury shares Dividends of surplus Profit attributable to owners of parent Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (10) (10) 480 71 71 98 12 12 276 – 11 – (1,544) 305 (1,238) (5,377) (3,520) 14,350 10,830 61,356 (1,544) 317 – (3,520) 14,350 9,604 63,335 (79) (1,544) 317 – (3,520) 14,350 969 10,573 63,411 653 653 196 237 237 (830) 951 951 (56) 18 18 132 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 Non-controlling interests Total net assets Balance at beginning of period 490 27 (457) (1,068) (1,007) 114 52,916 Restated balance 490 27 (457) (1,068) (1,007) 114 52,837 Cash flows from operating activities Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (4) Consolidated statement of cash slows Profit before income taxes Depreciation Share of loss (profit) of entities accounted for using equity method Decrease (increase) in retirement benefit asset Increase (decrease) in retirement benefit liability Impairment losses Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Interest and dividend income Interest expenses Loss (gain) on disposal of non-current assets Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in accounts payable – other Increase (decrease) in accrued consumption taxes Decrease (increase) in prepaid expenses Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of non-current assets Proceeds from sale of non-current assets Purchase of investment securities Proceeds from sale of investment securities Payments of guarantee deposits Proceeds from refund of guarantee deposits 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 Repayments of lease liabilities Purchase of treasury shares Dividends paid Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalentsNet increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period – 12 – 15,557 1,669 (1,238) (427) 28 147 0 21 (78) 129 (0) (604) (368) (3,749) (465) 301 (264) 179 10,838 810 (129) (4,117) 7,401 (249) 342 (3,195) – (1) 88 (164) 14 (96) (3,261) 3,600 4,600 (2,479) (478) (2,602) (2,818) 16 (162) (81) 3,895 16,391 20,287 (Millions of yen) 20,131 1,646 (3,669) (370) (4) 180 (73) (20) (85) 83 0 (1,368) 1,741 3,447 356 (216) 126 378 22,284 2,573 (80) (6,728) 18,049 (102) 121 (1,722) 1 (101) 90 (104) 66 182 (1,567) (3,600) 643 (2,600) (785) (2,140) (3,520) 150 (11,853) 120 4,748 20,287 25,036 (5) Notes regarding consolidated financial statements (Notes regarding assumptions of going concern) Not applicable. (Changes in accounting policies) (Application of Accounting Standard for Revenue Recognition, etc.) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review, and it has recognized revenue at the time the control of promised goods or services is transferred to the customer at the amount expected to be received upon exchange of said goods or services. As a result, the Company recognizes revenue to the extent that it is very probable that a material reversal will not occur, and, beginning in the fiscal year under review, some of the expenses that were previously recorded as cost of sales and selling, general and administrative expenses are reduced from net sales as consideration paid to customers. The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations is subject to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods prior to the beginning of the fiscal year under review was added to or deducted from the opening balance of retained earnings of the fiscal year under review, and thus the new accounting policy was applied from such opening balance. Moreover, “Notes and accounts receivable – trade” under “Current assets” of the consolidated balance sheet as of the end of the previous fiscal year has been included in “Notes receivable – trade” and “Accounts receivable – trade,” from the fiscal year under review, and “Other” under “Current liabilities” has been included in “Contract liabilities” and “Other” from the fiscal year under review. In accordance with the transitional treatment provided for in paragraph 89-2 of the Accounting Standard for Revenue Recognition, figures for the previous fiscal year have not been restated in accordance with the new approach to presentation. As a result of this, compared to before the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations, for the fiscal year under review, net sales decreased by ¥487 million, cost of sales decreased by ¥57 million and selling, general and administrative expenses decreased by ¥409 million, while operating profit, ordinary profit and profit before income taxes each decreased by ¥20 million. In addition, retained earnings as of the beginning of the fiscal year under review decreased by ¥79 million. In accordance with the transitional treatment provided for in paragraph 89-3 of the Accounting Standard for Revenue Recognition, notes to “Revenue recognition related” for the previous fiscal year are not presented. (Application of Accounting Standard for Fair Value Measurement, etc.) The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the fiscal year under review, and it has applied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc. prospectively in accordance with the transitional measures provided for in paragraph 19 of the Accounting Standard For Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). The application of this accounting standard has no impact on the consolidated financial statements. Furthermore, in the notes to “Financial Instruments,” the Company has decided to provide notes on items such as the breakdown of the fair value of financial instruments by level. However, in accordance with the transitional treatment provided in paragraph 7-4 of the “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19, July 4, 2019), the notes are not presented for the previous fiscal year. – 13 – (Segment information, etc.) [Segment information] Previous fiscal year (April 1, 2020 to March 31, 2021) and fiscal year under review (April 1, 2021 to March 31, 2022) This information is omitted because the Group operates a single segment of sporting goods-related business. [Relevant information] Previous fiscal year (April 1, 2020 to March 31, 2021) and fiscal year under review (April 1, 2021 to March 31, 2022) 1. Information for each product and service This information is omitted because sales to external customers in a single product/service category exceed 90% of net sales in the consolidated statements of income. 2. Information for each region (1) Net sales This information is omitted because sales to external customers in Japan exceed 90% of net sales in the consolidated statements of income. (2) Property, plant and equipment This information is omitted because the amount of property, plant and equipment located in Japan exceeds 90% of the amount of property, plant and equipment in the consolidated balance sheet. 3. Information for each major customer This information is omitted because there are no sales to external customers that account for 10% or more of the net sales in the consolidated statements of income. [Information on impairment losses on non-current assets for each reportable segment] Previous fiscal year (April 1, 2020 to March 31, 2021) and fiscal year under review (April 1, 2021 to March 31, 2022) This information is omitted because the Group operates a single segment of sporting goods-related business. [Information on amortization of goodwill and unamortized balance for each reportable segment] Previous fiscal year (April 1, 2020 to March 31, 2021) and fiscal year under review (April 1, 2021 to March 31, 2022) This information is omitted because the Group operates a single segment of sporting goods-related business. [Information on gain on negative goodwill for each reportable segment] Previous fiscal year (April 1, 2020 to March 31, 2021) and fiscal year under review (April 1, 2021 to March 31, 2022) – 14 – This information is omitted because the Group operates a single segment of sporting goods-related business. (Per share information) Previous fiscal year (April 1, 2020 to March 31, 2021) Fiscal year under review (April 1, 2021 to March 31, 2022) Net assets per share Earnings per share ¥1,164.16 ¥236.64 ¥1,398.56 ¥316.30 (Notes) 1. Diluted earnings per share is not shown because there are no dilutive shares. 2. The basis for the calculation is as follows. Net assets per share Previous fiscal year (As of March 31, 2021) Fiscal year under review (As of March 31, 2022) Total net assets (Millions of yen) Amount deducted from total net assets (Millions of yen) [Non-controlling interests] Net assets related to common shares at the end of the fiscal year (Millions of yen) Number of shares of common shares used in the calculation of net assets per share at the end of the fiscal year (Thousands of shares) Earnings per share Profit attributable to owners of parent (Millions of yen) Amount not attributable to common shareholders (Millions of yen) Profit attributable to owners of parent related to common shares (Millions of yen) Average number of shares during the period (Thousands of shares) 52,916 114 [114] 52,802 45,356 10,734 – 10,734 45,360 63,411 132 [132] 63,278 45,245 14,350 – 14,350 45,370 Previous fiscal year (April 1, 2020 to March 31, 2021) Fiscal year under review (April 1, 2021 to March 31, 2022) The company’s shares remaining in the trust, which are recorded as treasury shares in shareholders’ equity, are included in the number of treasury shares deducted from the average number of shares during the period for the calculation of earnings per share, and are also included in the number of treasury shares deducted from the total number of issued shares at the end of the period for the calculation of net assets per share. The number of such treasury shares deducted from the average number of shares during the period for the calculation of earnings per share was 2,179,721 shares in the previous fiscal year, and 2,077,632 shares in the fiscal year under review. Meanwhile, the number of such treasury shares deducted from the total number of issued shares at the end of the period for the calculation of net assets per share was 2,091,698 shares in the previous fiscal year, and 2,202,276 shares in the fiscal year under review. – 15 – (Significant subsequent events) At the Board of Directors meeting held on February 8, 2022, the Company resolved to acquire treasury shares in accordance with the provisions of its Articles of Incorporation pursuant to Article 459, paragraph 1 of the Companies Act, and implemented the acquisition as follows. Acquisition of treasury shares (1) Type of shares acquired: Common shares of the Company (2) Acquisition period: April 1, 2022 – April 30, 2022 (contract basis) (3) Total number of shares acquired: 124,600 shares (4) Total acquisition price of shares: ¥772,793,996 (5) Method of acquisition: Purchase on the Tokyo Stock Exchange (Reference) 1. Resolution at the Board of Directors meeting held on February 8, 2022 (1) Type of shares to be acquired: Common shares of the Company (2) Total number of shares to be acquired: 460,000 shares (maximum) (Ratio to the total number of issued shares (excluding treasury shares): approximately 0.98%) (3) Total acquisition price of shares: ¥3,000,000,000 (maximum) (4) Acquisition period: March 1, 2022 – June 30, 2022 2. Cumulative total of treasury shares acquired pursuant to the above Board of Directors resolution (as of April 30, 2022) (1) Total number of shares acquired: 275,800 shares (2) Total acquisition price of shares: ¥1,673,527,986 – 16 – 4. Other Changes in officers (1) Change in representative Not applicable. (2) Changes in officers (scheduled to take effect on June 23, 2022) ・ Candidates for new Directors Director Director Director Michio Shirasaki Hikari Mori Dai Tamesue ・ Retiring Directors Director Masatoshi Suzuki (Note) The candidate for new Director, Dai Tamesue, is an Outside Director as stipulated in Article 2, item (xv) of the Companies Act and will be reported to the Tokyo Stock Exchange as an Independent Director. – 17 –