グローブライド（7990） – ［Delayed］Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

Disclaimer: This document is an English translation of the original document in Japanese and has been prepared solely for reference purposes. In the event of any discrepancy between this English translation and the original in Japanese, the original shall prevail in all respects. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 [Japanese GAAP] May 13, 2022 Company name: GLOBERIDE, Inc. Stock exchange listing: Tokyo Stock Exchange Code number: 7990 URL: https://www.globeride.co.jp/ Representative: Kazunari Suzuki, Representative Director and President Contact: Hisaki Taniguchi, Director, General Manager, Accounting Department, and General Manager, Corporate Planning Office Phone: +81-42-475-2115 Scheduled date of general shareholders’ meeting: June 29, 2022 Scheduled date of commencing dividend payments: June 8, 2022 Scheduled date of filing securities report: June 29, 2022 Availability of supplementary explanatory materials on annual financial results: Not available Schedule of annual financial results briefing session: Scheduled (for securities analysts and institutional investors) (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, 2022) (1) Consolidated Operating Results (% indicates changes from the previous corresponding period.) Profit attributable to owners of parent Ordinary profit Operating profit Net sales Fiscal year ended March 31, 2022 March 31, 2021 (Note) Comprehensive income: Fiscal year ended March 31, 2022: ¥10,886 million [104.8%] Fiscal year ended March 31, 2021: ¥5,315 million [–%] % Million yen 12,349 7,405 % Million yen 12,997 7,145 Million yen 120,684 100,304 81.9 131.6 66.7 104.9 20.3 13.6 % Million yen 9,567 4,797 % 99.4 327.2 Basic earnings per share Diluted earnings per share Return on equity Ratio of ordinary profit to total assets Ratio of operating profit to net sales Fiscal year ended March 31, 2022 March 31, 2021 (Reference) Equity in earnings of affiliated companies: Yen 416.62 208.88 Yen – – % 29.6 19.1 % 15.4 9.2 % 10.2 7.4 Fiscal year ended March 31, 2022: ¥- million Fiscal year ended March 31, 2021: ¥- million (Note) The Company conducted a stock split at a ratio of 2 shares per common share on October 1, 2021. Basic earnings per share is calculated on the assumption that the stock split was conducted at the beginning of the previous consolidated fiscal year. (2) Consolidated Financial Position Total assets Net assets Equity ratio As of March 31, 2022 As of March 31, 2021 (Reference) Equity: As of March 31, 2022: ¥37,309 million As of March 31, 2021: ¥27,439 million Million yen 90,682 77,730 Million yen 37,478 27,577 Net assets per share Yen 1,624.71 1,194.76 % 41.1 35.3 (3) Consolidated Cash Flows Fiscal year ended March 31, 2022 March 31, 2021 2. Dividends (Note) The Company conducted a stock split at a ratio of 2 shares per common share on October 1, 2021. Net assets per share is calculated on the assumption that the stock split was conducted at the beginning of the previous consolidated fiscal year. Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Million yen 6,956 15,842 Million yen (6,847) (3,376) Million yen (2,470) (8,356) Cash and cash equivalents at year-end Million yen 7,149 9,157 1st quarter-end Annual dividends 3rd quarter-end 2nd quarter-end Year-end Total dividends (annual) Payout ratio (consolidated) Total Ratio of dividends to net assets (consolidated) % Yen Yen Yen Yen Yen Million yen % – – – 40.00 70.00 30.00 40.00 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ending March 31, 2023 (Forecast) The Company conducted a stock split at a ratio of 2 shares per common share on October 1, 2021. The amount of year-end dividend per share reflects the impact of the stock split, but the amount of total annual dividend is not presented for the fiscal year ended March 31, 2022. 30.00 30.00 30.00 60.00 1,148 16.8 16.2 12.0 803 – – – – 3.2 3.5 The year -end dividend per share and the total annual dividend without reflecting the impact of the stock split are 60 yen and 100 yen, respectively for the fiscal year ended March 31, 2022. 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March Net sales Operating profit Ordinary profit (% indicates changes from the previous corresponding period.) Profit attributable to owners of parent Basic earnings per share Million yen 71,000 129,000 % Million yen 8,400 11,900 9.7 6.9 % Million yen 8,400 11,900 (0.0) (3.6) % Million yen 6,250 8,500 (3.3) (8.4) % (4.9) (11.2) Yen 272.17 370.15 31, 2023) First half Full year * Notes: (1) Changes in significant subsidiaries during the fiscal year under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation) Newly included: – Excluded: – (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (3) Total number of issued and outstanding shares (common shares) 1) Total number of issued and outstanding shares at the end of the year (including treasury shares): March 31, 2022: March 31, 2021: March 31, 2022: March 31, 2021: 2) Total number of treasury shares at the end of the year: 24,000,000 shares 24,000,000 shares 1,036,139 shares 1,033,830 shares 3) Average number of shares during the year: Year ended March 31, 2022: Year ended March 31, 2021: 22,965,051 shares 22,968,039 shares (Note) The Company conducted a stock split at a ratio of 2 shares per common share on October 1, 2021. The total number of issued and outstanding shares at the end of the year, total number of treasury shares at the end of the year, and average number of shares during the year are calculated on the assumption that the stock split was conducted at the beginning of the previous consolidated fiscal year. (Reference) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, (1) Non-consolidated Operating Results Net sales (% indicates changes from the previous corresponding period.) Operating profit Ordinary profit Net income Million yen 56,806 48,039 % Million yen 4,233 2,061 18.2 11.3 105.4 – 6,364 100.3 3,177 229.0 % Million yen % Million yen % 4,822 209.6 1,557 122.6 2022) Year ended March 31, 2022 March 31, 2021 Basic earnings per share Diluted earnings per share Year ended March 31, 2022 March 31, 2021 (Note) The Company conducted a stock split at a ratio of 2 shares per common share on October 1, 2021. Basic Yen 209.98 67.82 Yen – – earnings per share is calculated on the assumption that the stock split was conducted at the beginning of the previous consolidated fiscal year. (2) Non-consolidated Financial Position Total assets Net assets Equity ratio As of March 31, 2022 As of March 31, 2021 (Reference) Equity: As of March 31, 2022: ¥23,117 million As of March 31, 2021: ¥19,714 million (Note) The Company conducted a stock split at a ratio of 2 shares per common share on October 1, 2021. Net assets Million yen 59,976 55,952 Million yen 23,117 19,714 Net assets per share Yen 1,006.69 858.42 % 38.5 35.2 per share is calculated on the assumption that the stock split was conducted at the beginning of the previous consolidated fiscal year. * These consolidated financial results are outside the scope of audit by certified public accountants or an audit firm. * Explanation of the proper use of financial results forecast and other notes The financial results forecast and other forward-looking statements herein are based on information that is currently available to the Company and certain assumptions that are deemed reasonable by the Company, and are not intended to guarantee the achievement. Actual business results may differ significantly due to various factors. For the conditions serving for the premise of the financial results forecast and the cautionary notes concerning the use of the financial results forecast, please refer to “(4) Future Outlook” in “1. Overview of Operating Results, etc.” on page 3 of the Attachments. Table of Contents – Attachments 1. Overview of Operating Results, etc. ………………………………………………………………………………………. 2 (1) Overview of Operating Results for the Fiscal Year under Review ………………………………………….. 2 (2) Overview of Financial Position for the Fiscal Year under Review …………………………………………. 2 (3) Overview of Cash Flows for the Fiscal Year under Review …………………………………………………… 3 (4) Future Outlook ……………………………………………………………………………………………………………….. 3 2. Management Policy …………………………………………………………………………………………………………….. 3 (1) Basic Policy for Corporate Management ……………………………………………………………………………. 3 (2) Target Management Indicators ………………………………………………………………………………………….. 3 (3) Medium- to Long-term Corporate Management Strategy ……………………………………………………… 4 3. Basic Policy on Selection of Accounting Standards …………………………………………………………………. 5 4. Consolidated Financial Statements and Principal Notes …………………………………………………………… 6 (1) Consolidated Balance Sheets ……………………………………………………………………………………………. 6 (2) Consolidated Statements of Income and Comprehensive Income ………………………………………….. 8 (3) Consolidated Statements of Changes in Equity …………………………………………………………………. 10 (4) Consolidated Statements of Cash Flows …………………………………………………………………………… 14 (5) Notes to Consolidated Financial Statements ……………………………………………………………………… 16 (Notes on going concern assumption) ………………………………………………………………………….. 16 (Changes in accounting policies ) ………………………………………………………………………………….. 16 (Segment information, etc.) ………………………………………………………………………………………… 17 (Per share information) ………………………………………………………………………………………………. 20 (Significant subsequent events) …………………………………………………………………………………… 20 1 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Fiscal Year under Review During the fiscal year under review, the state of emergency and the quasi state of emergency were declared following the spread of the novel coronavirus infection (COVID-19). Accordingly, the Japanese economy continued to be influenced by the virus infection status. Situations overseas also remained uncertain in general because cases again began surging in many regions although economic activities resumed with vaccination progress. Under these economic situations, in the outdoor, sports and leisure industry, in which the Group operates, fishing, golfing and other sports and leisure have garnered greater support as a form of activity that fits with the coming era, resulted in favorable market landscape. Meanwhile, COVID-19 pandemic and global supply chain confusion have forced the Company to experience delay in product supply and temporary adjustment in production. Under the circumstances, however, the Company has endeavored to minimize the impact through production plan review and other activities. As a result, for the fiscal year under review, net sales were 120,684 million yen (up 20.3% year on year). As for profit, thanks to the effect of increased sales, operating profit was 12,349 million yen (up 66.7% year on year), ordinary profit was 12,997 million yen (up 81.9% year on year) and profit attributable to owners of parent was 9,567 million yen (up 99.4% year on year). Business results by segment are shown as follows. Net sales of each segment include inter-segment sales and transfers. 1) Japan 2) Americas 3) Europe In Japan, while fishing and golfing markets have been resilient even with the pandemic from last year, products supply was slow due to production delay and logistics confusion. Against this backdrop, the Group brought products into the market responding to a variety of needs, resulting net sales of 82,544 million yen (up 14.5% year on year) and segment profit of 8,812 million yen (up 48.2% year on year). In the Americas, new products for local needs have sold well as consumer spending recovered thanks to the relaxation of pandemic restrictions, resulted in net sales of 10,129 million yen (up 26.3% year on year). Meanwhile, global logistics crunch and rising cost reduced profits. Revenue growth, however, offset such negative factors, bringing in segment profit of 194 million yen (up 15.5% year on year). In Europe, outdoor sports and leisure markets have been strong due to economic recovery along with the relaxed pandemic restrictions. Under such circumstances, the Company launched new products attuned to local needs that were well received, and recorded net sales of 13,553 million yen (up 28.0% year on year) and segment profit of 1,071 million yen (up 81.1% year on year). 4) Asia and Oceania In the Asia and Oceania region, the market has been resilient in general although the market conditions were different depending on the infectious status in individual countries. Under such circumstances, net sales were 42,770 million yen (up 36.7% year on year) and segment profit was 5,003 million yen (up 83.2% year on year) due to the launch of new products adapted to the market and greater marketing efforts. (2) Overview of Financial Position for the Fiscal Year under Review Total assets at the end of the fiscal year under review increased 12,952 million yen from the end of the previous fiscal year to 90,682 million yen. This is primarily due to an increase in inventories because of sale expansion and another increase in property, plant and equipment resulted from capital investment. Total liabilities increased 3,052 million yen from the end of the previous fiscal year to 53,204 million yen. This is primarily due to an increase in trade payables. Total net assets increased 9,900 million yen from the end of the previous year to 37,478 million yen. This is 2 primarily due to the recording of profit attributable to owners of parent. (3) Overview of Cash Flows for the Fiscal Year under Review Cash and cash equivalents at the end of the fiscal year under review decreased 2,008 million yen from the end of the previous fiscal year to 7,149 million yen (9,157 million yen at the end of the previous fiscal year). (Cash Flows from Operating Activities) Net cash provided by operating activities was 6,956 million yen (an inflow of 15,842 million yen for the previous fiscal year). This is due to the recording of profit before income taxes and an increase in inventories. (Cash Flows from Investing Activities) Net cash used in investing activities was 6,847 million yen (an outflow of 3,376 million yen for the previous fiscal year). This is due to capital investment mainly in land purchase, production facilities and molds for new products. (Cash Flows from Financing Activities) Net cash used in financing activities was 2,470 million yen (an outflow of 8,356 million yen for the previous fiscal year). This is mainly due to debt repayment and dividend payment. (4) Future Outlook Not only the pandemic crisis in Japan and overseas, but also the war in Ukraine has aroused concerns about economic slowdown. In addition, the market environment of the outdoor, sports and leisure industry, in which the Group operates, is expected to remain unpredictable. Nonetheless, the Group will continue to adhere to “aggressive management,” and strive as one for further progress to establish a business foundation that enables sustained growth. Meanwhile, raw material price hike and yen depreciation in the global market are expected to drive up the purchasing cost. As for the financial results forecast for the next fiscal year, the Group expects to record consolidated net sales of 129,000 million yen (up 6.9% year on year), consolidated operating profit of 11,900 million yen (down 3.6% year on year), consolidated ordinary profit of 11,900 million yen (down 8.4% year on year) and profit attributable to owners of parent of 8,500 million yen (down 11.2% year on year). 2. Management Policy (1) Basic Policy for Corporate Management The Group builds on the slogan of “Feel the earth,” and contributes to people around the world who love nature and sports as “A Lifetime Sports Company” that offers quality time in life through sports everywhere on the earth. (2) Target Management Indicators Having attained the consolidated operating profit and dividend per share targets set in the mid-term business plan which was announced last year two years ahead of the schedule, the Group formulated the “New Mid-term Business Plan 2025 (FY2022-FY2025),” and set targets to be achieved by the final year (FY2025) as follows: Targets FY2025 (April 1, 2022 to March 31, 2026) ¥150.0 billion ¥14.5 billion ¥90 Reference FY2021 (April 1, 2021 to March 31, 2022) ¥120.7 billion ¥12.3 billion ¥50* Change from FY2021 24% increase 17% increase ¥40 increase* Consolidated net sales Consolidated operating profit Dividend per share (annual) * Dividend per share reflects the impact of the stock split. 3 (3) Medium- to Long-term Corporate Management Strategy After going through the harsh business environment such as the financial crisis in 2008 and the Great East Japan Earthquake in 2011, the Group shifted its pivot from defense to offense in FY2012 and has since strived to expand sales, based on the belief that downsizing will get the Group nowhere in the future. In FY2021, when the resurgence of COVID-19 because of variants took a tremendous toll on the whole world, the Company experienced delay in supply of certain products due to temporary adjustment in some factories and global logistics crunch. Meanwhile, the outdoor, sports and leisure industry, in which the Group operates, have enjoyed favorable market landscape since fishing, golfing and other sports and leisure have garnered greater support as a form of activity that fits with the coming era. Amid the situation, the Group strived to create and popularize lifetime sports (sports that enrich life). As a result of these efforts, the Company increased its sales for ten consecutive fiscal years, reported record high profits and raised dividends for 11 consecutive fiscal years. While the effects of the COVID-19 pandemic and the war in Ukraine are still ongoing, the market environment is expected to remain unpredictable, as exemplified in part by unpredictable global economy as well as the problems of the declining birthrate and aging population and a decrease in the total population in Japan. However, based on the efforts and results so far, the Group will continue to adhere to “aggressive management,” and strive as one for further progress to establish a management foundation that enables sustained growth. (Overview of Strategy by Business) [Fishing business] The fishing business is the Company’s mainstay business. The Company leads the fishing industry globally. Under the fishing brand of “DAIWA”, the fishing business develops innovative “DAIWA TECHNOLOGY” and offers products derived from the technology, creates future lifestyles where fishing and the earth are felt in daily life, and nurtures a sustainable environment, in order to help people feel the best moments, “Feel Alive.” With the “DAIWA” brand, the fishing business leads the global fishing market. [Golf business] The golf business aims to improve the brand value by promoting sophisticated and unique brands. The main brands of the golf business include “ONOFF”, which proposes stylish and superior golf for adults, “FOURTEEN”, which offers the best 14 golf clubs for every golfer, and “RODDIO”, which captivates all golfers that pursue their own only one. [Sports business] The sports business aims to improve the brand value by optimizing each brand and developing products and services that adapted to the Japanese market. The main brands of the sports business include “Prince”, which proposes racket sports life on and off the court with the integrity formed in the course of its history and innovative technology that even changes users’ play styles, “Corratec”, which proposes the joy of running and winning, and “FOCUS”, which is the core brand name of our cycle sports business. Furthermore, the Company has set out the initiatives that are key to management strategy as follows: 1) Pursue market superiority The Company will build a unique business foundation that can respond to market demands, aiming at increasing the planning/development capabilities for creating new excitement in life and the capabilities for offering high-quality, high-value products, and further improving the brand awareness, brand trust and brand satisfaction. 2) Invigorate the Japanese market and make it healthy The Company will strive for invigorating the Japanese market and making it healthy by focusing on developing attractive markets and retailers, enhancing follow-up services, innovating the logistics function, and making fans that bears the next generation. 4 3) Capture overseas markets The Company will strengthen global marketing that integrates production with sale, promote the global four-bloc strategy, and strive for providing products/services suitable for individual market characteristics. 4) Sustainability initiatives The Company will contribute to “realizing a sustainable society where people and nature coexist” by driving carbon-free business management aimed at carbon neutrality, conserving abundant forests and the water, developing sustainable products/services, providing opportunities to learn the environment through programs to feel nature, and promoting work environment where employees enjoy job satisfaction and play active roles. 3. Basic Policy on Selection of Accounting Standards Some of the accounting standards used to describe the financial position and operating results of the Group differ between Japanese GAAP and IFRS. The Company currently regards Japanese GAAP as appropriate. Therefore, the Company intends to prepare its consolidated financial statements using Japanese GAAP for the time being. 5 4. Consolidated Financial Statements and Principal Notes (1) Consolidated Balance Sheets As of March 31, 2021 As of March 31, 2022 (Million yen) Assets Current assets Cash and deposits Notes and 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 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 Other Total intangible assets Investments and other assets Investment securities Deferred tax assets Retirement benefit asset Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 9,600 10,712 249 20,626 3,091 3,413 3,036 (440) 50,291 12,650 (7,884) 4,766 12,252 (7,949) 4,302 3,799 1,170 15,952 (13,989) 1,962 16,001 1,509 1,509 5,512 2,209 2 2,267 (62) 9,928 27,438 77,730 8,165 11,140 377 26,217 4,997 4,848 3,773 (392) 59,126 14,189 (8,287) 5,901 13,413 (8,469) 4,943 5,348 1,622 17,137 (14,823) 2,313 20,129 1,597 1,597 4,952 2,517 32 2,366 (39) 9,829 31,556 90,682 6 As of March 31, 2021 As of March 31, 2022 (Million yen) Liabilities Current liabilities Notes and accounts payable – trade Electronically recorded obligations – operating Short-term borrowings Accounts payable – other Income taxes payable Provision for sales rebates Provision for sales returns Provision for point card certificates Provision for bonuses Provision for bonuses for directors (and other officers) Other Total current liabilities Non-current liabilities Long-term borrowings Deferred tax liabilities for land revaluation Retirement benefit liability 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 Revaluation reserve for land 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 6,954 6,470 12,800 3,184 1,282 119 109 614 767 23 1,915 34,242 8,785 889 5,677 556 15,909 50,152 4,184 – 21,791 (881) 25,093 2,699 30 1,977 (2,296) (65) 2,345 138 27,577 77,730 6,235 8,816 15,688 3,933 2,218 – – – 873 27 3,202 40,996 5,017 889 5,513 787 12,207 53,204 4,184 0 30,379 (889) 33,675 2,318 48 1,977 (727) 17 3,634 168 37,478 90,682 7 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 (Million yen) Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Rental income from real estate Foreign exchange gains Royalty income Settlement received Subsidy income Other Total non-operating income Non-operating expenses Interest expenses Sales discounts Commitment fees Loss on retirement of non-current assets Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Total extraordinary income Extraordinary losses Loss on sale of non-current assets Loss on sale of investment securities Loss on valuation of investment securities Impairment losses Extraordinary loss due to closing and other Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit (loss) attributable to non-controlling interests Profit attributable to owners of parent 8 100,304 63,726 36,578 29,172 7,405 22 83 39 47 46 2 264 334 841 297 479 121 108 94 1,101 7,145 14 94 109 240 5 102 427 32 809 6,446 1,943 (292) 1,650 4,795 (1) 4,797 120,684 74,971 45,712 33,363 12,349 28 87 6 430 75 – – 411 1,039 207 – 6 114 63 391 12,997 8 1 10 6 1 – 0 – 8 13,000 3,566 (145) 3,420 9,579 11 9,567 Consolidated Statements of Comprehensive Income 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 Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 (Million yen) 4,795 963 8 (312) (140) 519 5,315 5,315 (0) 9,579 (381) 18 1,586 82 1,307 10,886 10,856 29 9 (3) Consolidated Statements of Changes in Equity Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021) Share capital Capital surplus Treasury shares Shareholders’ equity Retained earnings (Million yen) Total shareholders’ equity Balance at beginning of period 4,184 0 17,747 (876) 21,055 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 ownership interest of parent due to transactions with non-controlling interests Transfer from retained earnings to capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period – 4,184 (7) 7 (0) – (746) 4,797 (7) 4,043 21,791 (5) (5) (881) – (746) 4,797 (5) – (7) – 4,037 25,093 10 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 1,735 21 1,977 (1,982) 74 1,827 963 963 2,699 8 8 30 – – 1,977 (313) (313) (2,296) (140) (140) (65) 517 517 2,345 Non-controlling interests Total net assets 139 23,023 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 ownership interest of parent due to transactions with non-controlling interests Transfer from retained earnings to capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning 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 ownership interest of parent due to transactions with non-controlling interests Transfer from retained earnings to capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (1) (1) 138 – (746) 4,797 (5) – (7) – 516 4,554 27,577 11 Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) Share capital Capital surplus Treasury shares Shareholders’ equity Retained earnings 4,184 – 21,791 (881) 25,093 (Million yen) Total shareholders’ equity Balance at beginning 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 ownership interest of parent due to transactions with non-controlling interests Transfer from retained earnings to capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period – 4,184 0 0 0 (60) (918) 9,567 8,649 30,379 (7) 0 (7) (889) (60) (918) 9,567 (7) 1 – – 8,642 33,675 12 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 2,699 30 1,977 (2,296) (65) 2,345 (381) (381) 2,318 18 18 48 – – 1,977 1,568 1,568 (727) 82 82 17 1,288 1,288 3,634 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 ownership interest of parent due to transactions with non-controlling interests Transfer from retained earnings to capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning 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 ownership interest of parent due to transactions with non-controlling interests Transfer from retained earnings to capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Non-controlling interests Total net assets 138 27,577 (60) (918) 9,567 (7) 1 – – 1,318 9,960 37,478 13 29 29 168 (4) Consolidated Statements of Cash Flows For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 (Million yen) Cash flows from operating activities Profit before income taxes Depreciation Impairment losses Increase (decrease) in provision for point card certificates Increase (decrease) in provision for sales returns Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for sales rebates Increase (decrease) in provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Increase (decrease) in retirement benefit liability Interest and dividend income Interest expenses Foreign exchange losses (gains) Loss (gain) on sale of property, plant and equipment Loss on retirement of property, plant and equipment Decrease (increase) in trade receivables Decrease (increase) in inventories Decrease (increase) in other current assets Increase (decrease) in trade payables Increase (decrease) in accounts payable – other Increase (decrease) in other current liabilities Increase (decrease) in guarantee deposits received Other non-operating expenses (income) Loss (gain) on sale of investment securities Loss (gain) on valuation of investment securities Other, net Subtotal Interest and dividends received Interest paid Income taxes refund Income taxes paid Other proceeds Net cash provided by (used in) operating activities 6,446 2,742 427 62 (82) 214 (3) 75 9 (207) (105) 297 (55) 226 108 2,531 2,209 286 1,374 22 326 (36) (39) (89) 102 26 16,868 105 (293) 194 (1,072) 39 15,842 13,000 2,997 0 – – (97) – 103 4 (107) (116) 207 (111) (2) 114 (17) (7,754) (652) 1,219 634 176 21 (6) (0) – 61 9,674 116 (218) – (2,622) 6 6,956 14 For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 (Million yen) Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of securities Proceeds from sale and redemption of securities 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 Loan advances Proceeds from collection of loans receivable Purchase of shares of subsidiaries Other, net Net cash provided by (used in) investing activities Cash flows from financing activities Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Purchase of treasury shares Proceeds from sale of treasury shares Dividends paid Dividends paid to non-controlling interests 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 (409) 97 (6,000) 6,000 (2,939) 514 (849) (5) 281 (2) 3 (7) (61) (3,376) 84,532 (90,060) 3,390 (5,356) (5) – (746) (0) (109) (8,356) 154 4,264 4,893 9,157 (580) 33 (6,600) 6,600 (5,663) 46 (495) (5) 33 (2) 31 – (245) (6,847) 47,111 (43,606) – (4,793) (7) 1 (917) – (257) (2,470) 353 (2,008) 9,157 7,149 15 (5) Notes to Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Changes in accounting policies) [Application of the Accounting Standard for Revenue Recognition, etc.] The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020; hereinafter “Revenue Recognition Standard”) and other standards from the beginning of the fiscal year under review. The Company recognizes revenue when control of a promised good or service is transferred to a customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. Accordingly, the Company has reduced a portion of the amount recognized as net sales and sales discount recorded as non-operating expenses in the past, from net sales as considerations to be paid to customers from the fiscal year under review. The Company applies the Revenue Recognition Standard, etc. in accordance with the transitional treatment provided for in the proviso to Paragraph 84 of the Revenue Recognition Standard. The cumulative impact of retrospectively applying the new accounting policies to prior periods is adjusted to retained earnings at the beginning of the fiscal year under review, with the new accounting policies applied from the beginning balance. However, the Company applies the method provided for in Paragraph 86 of the Revenue Recognition Standard, and does not apply the new accounting policies retrospectively to contracts for which substantially all revenue amounts had been recognized prior to the beginning of the fiscal year under review in accordance with the previous treatment. In addition, applying the method stipulated in proviso (1) of Paragraph 86 of the Revenue Recognition Standard, contract modifications that occurred prior to the beginning of the fiscal year under review were accounted for based on the terms of the contract after reflecting all contract modifications, with the cumulative impact adjusted to retained earnings at the beginning of the fiscal year under review. Furthermore, “provision for sales rebates,” “provision for sales returns,” and “provision for point card certificates” which were presented under “current liabilities” in the consolidated balance sheet of the previous fiscal year, have been included under “other” from the fiscal year under review. However, in accordance with the transitional treatment set forth in Paragraph 89-2 of the Revenue Recognition Standard, figures for the previous fiscal year have not been reclassified based on the new presentation method. As a result of this change, compared with the figures before the application of the Revenue Recognition Standard, etc., “other” of current assets increased by 165 million yen and “other” of current liabilities increased by 147 million yen in the consolidated balance sheet for the fiscal year under review. In the consolidated statement of income for the fiscal year under review, net sales decreased by 506 million yen, cost of sales increased by 11 million yen, operating profit decreased by 518 million yen, and ordinary profit and profit before income taxes increased by 78 million yen, respectively. by 78 million yen. In the consolidated statement of cash flows for the fiscal year under review, profit before income taxes increased 16 The cumulative impact of this change has been reflected on net assets at the beginning of the fiscal year under review. As a result, the beginning balance of retained earnings decreased by 60 million yen in the consolidated statement of changes in equity. The impact on per share information is described in the corresponding section. [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; hereinafter “Fair Value Measurement Standard”) and other standards from the beginning of the fiscal year under review, and will prospectively apply the new accounting policies stipulated by the Fair Value Measurement Standard, etc. in accordance with the transitional treatment provided in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). This does not affect the consolidated financial statements. (Segment information, etc.) [Segment information] 1. Overview of reportable segments Reportable segments of the Group are components of the Group for which separate financial information is available and are subject to periodic review by the Board of Directors for the purpose of determining allocation of management resources and evaluating business performance. The Group primarily produces and sells fishing goods, golf goods and racket sports goods. The Company and its consolidated subsidiaries are responsible for business in Japan, while each independent local arm is responsible for each region overseas, formulating comprehensive regional strategies as to what products to handle, and operating business activities in the region. Therefore, the Group is composed of regional segments based on the production and sale system, and has the four reportable segments of Japan, Americas, Europe and Asia and Oceania. on actual market pricing. 2. Method of calculating net sales, profit (loss), assets, liabilities and other components by reportable segment Profits from reportable segments are figures based on operating profit. Intersegment sales and transfers are based As disclosed in changes in accounting policies, the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and other standards from the beginning of the fiscal year under review, and changed the accounting method for revenue recognition. As a result of this change, compared with the previous method, net sales increased by 80 million yen for Japan, and decreased by 152 million yen, 201 million yen, and 232 million yen for Americas, Europe, and Asia and Oceania, respectively, and segment profit increased by 68 million yen for Japan, and decreased by 152 million yen, 201 million yen, and 232 million yen for Americas, Europe, and Asia and Oceania, respectively. 17 For the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) 3. Information on net sales, profit (loss), assets, liabilities and other components, and information on disaggregation of revenue, by reportable segment For the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021) Japan Americas Europe Reportable segment Asia and Oceania (Million yen) Net sales Net sales to outside customers Inter-segment net sales or transfers Total Segment profit Segment assets Other components Depreciation Increase in property, plant and equipment and intangible assets Net sales Revenue from contracts with customers Other revenue Net sales to outside customers Inter-segment net sales or transfers Total Segment profit Segment assets Other components Depreciation Increase in property, plant and equipment and intangible assets 65,296 6,793 72,090 5,947 55,878 1,336 2,340 Japan 75,125 – 75,125 7,419 82,544 8,812 62,118 1,307 3,699 Total 100,304 21,692 121,997 9,438 86,017 2,450 4,049 – 120,684 28,314 148,998 15,081 101,977 2,713 6,008 16,407 14,887 31,295 2,730 19,894 966 1,641 – 21,894 20,876 42,770 5,003 26,722 1,290 2,091 10,590 0 10,590 591 7,115 119 54 Europe 13,553 – 13,553 0 13,553 1,071 8,704 94 203 Reportable segment (Million yen) Asia and Oceania Total 21,894 120,684 8,009 11 8,021 168 3,130 28 13 Americas 10,110 – 10,110 18 10,129 194 4,431 21 13 18 4. Difference between total amount of reportable segments and amounts recorded in consolidated financial statements, and content thereof (matters related to difference adjustment) Net sales Previous fiscal year Current fiscal year Profit Previous fiscal year Current fiscal year Reportable segment total Inter-segment elimination Net sales in the consolidated financial statements Reportable segment total Inter-segment elimination and company-wide expenses (Note) Operating profit in the consolidated financial statements Reportable segment total Elimination of inter-segment assets Company-wide assets (Note) Total assets in the consolidated financial statements 121,997 (21,692) 100,304 9,438 (2,032) 7,405 86,017 (20,509) 12,221 77,730 (Note) Company-wide expenses are mainly general and administrative expenses that are not attributable to reportable segments. Asset Previous fiscal year Current fiscal year (Million yen) (Million yen) 148,998 (28,314) 120,684 15,081 (2,732) 12,349 101,977 (22,803) 11,509 90,682 (Million yen) (Note) Company-wide assets are mainly assets related to the administration division of the headquarters that are not attributable to reportable segments. Other items Reportable segment total Adjustment Previous fiscal year Current fiscal year Previous fiscal year Current fiscal year Depreciation 2,450 2,713 4,049 6,008 4,235 6,409 224 185 224 400 (Million yen) Amounts in consolidated financial statements Previous fiscal year Current fiscal year 2,674 2,938 Increase in property, plant and equipment and intangible assets 19 (Per share information) Net assets per share Basic earnings per share For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 ¥1,194.76 ¥208.88 ¥1,624.71 ¥416.62 (Notes) 1. Diluted earnings per share are not presented because there are not potentially dilutive shares. 2. The Company conducted a stock split at a ratio of 2 shares per common share on October 1, 2021. Net assets per share and basic earnings per share are calculated on the assumption that the stock split was conducted at the beginning of the previous consolidated fiscal year. 3. As disclosed in changes in accounting policies, the Company has applied the Revenue Recognition Standard, etc. from the beginning of the fiscal year under review. As a result, net assets per share and basic earnings per share increased by 0.81 yen and 3.44 yen, respectively in the fiscal year under review compared with the period before the application of the Revenue Recognition Standard, etc. 4. Basis for calculating basic earnings per share is as follows: For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 Item Basic earnings per share Profit attributable to owners of parent (Million yen) Amount not attributable to common shareholders (Million yen) Profit attributable to owners of parent relating to common shares (Million yen) Average number of common shares outstanding during the period (Shares) Total net assets (Million yen) Net assets at year-end relating to common shares (Million yen) Number of common shares at year-end used to calculate net assets per share (Shares) (Significant subsequent events) Not applicable. 4,797 9,567 – – 4,797 9,567 22,968,039 22,965,051 27,577 27,439 37,478 37,309 22,966,170 22,963,861 3. Basis for calculating net assets per share is as follows: Item As of March 31, 2021 As of March 31, 2022 20