ギフトホールディングス（9279） – Consolidated Financial Results for the Six Months Ended April 30, 2022 [Japanese GAAP]

Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Summary of Consolidated Financial Results for the Six Months Ended April 30, 2022 (Based on Japanese GAAP) Company name: GIFT HOLDINGS INC. June 14, 2022 Stock exchange listing: Tokyo Stock code: 9279 Representative: Inquiries: URL https://www.gift-group.co.jp/ President and Representative Director Managing Director & General Manager, Sho Tagawa Administration Division Scheduled date to file Quarterly Securities Report: Scheduled date to commence dividend payments: Preparation of supplementary material on quarterly financial results: Yes June 14, 2022 July 20, 2022 Norihiko Suehiro TEL 042-860-7182 Holding of quarterly financial results meeting: 1. Consolidated financial results for the six months ended April 30, 2022 (from November 1, 2021 to April 30, 2022) (for institutional investors and analysts) Yes (Amounts less than one million yen are rounded down) (1) Consolidated operating results (cumulative) Net sales Operating profit Percentages indicate year-on-year changes Profit attributable to owners of parent Ordinary profit Six months ended April 30, 2022 Six months ended April 30, 2021 Millions of yen 7,891 6,303 % Millions of yen 773 306 25.2 18.9 % Millions of yen 1,197 553 152.6 4.7 % % Millions of yen 130.0 816 355 107.5 116.3 73.7 Six months ended April 30, 2022 Six months ended April 30, 2021 (2) Consolidated financial position As of April 30, 2022 As of October 31, 2021 2. Cash dividends Earnings per share Diluted earnings per share Yen 82.05 35.74 Yen 81.81 35.59 Total assets Net assets Equity ratio Millions of yen 8,944 8,277 Millions of yen 4,757 4,116 % 53.2 49.7 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Annual dividends per share Year ended October 31, 2021 Year ending October 31, 2022 Year ending October 31, 2022 (Forecast) Yen – – Yen 0.00 12.00 Yen – – Yen 20.00 13.00 Yen 20.00 25.00 3. Forecast of consolidated financial results for the year ending October 31, 2022 (from November 1, 2021 to October 31, 2022) Percentages indicate year-on-year changes Profit attributable to owners of parent Earnings per share Net sales Operating profit Ordinary profit Full year Millions of yen 17,000 % Millions of yen 1,700 26.2 % Millions of yen 2,000 81.6 % Millions of yen 1,280 14.4 % 18.9 Yen 128.59 1 4. Notes (1) Changes in significant subsidiaries during the six months ended April 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation): (2) Application of special accounting methods for preparing quarterly consolidated financial statements: Yes (3) 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 (4) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of April 30, 2022 9,959,545 shares As of October 31, 2021 9,953,967 shares Number of treasury shares at the end of the period As of April 30, 2022 157 shares As of October 31, 2021 157 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) Six months ended April 30, 2022 9,956,202 shares Six months ended April 30, 2021 9,938,377 shares 2 Quarterly consolidated financial statements Consolidated balance sheets As of October 31, 2021 As of April 30, 2022 (Thousands of yen) Assets Current assets Cash and deposits Accounts receivable – trade Merchandise and finished goods 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 Land Other Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Leasehold and guarantee deposits Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 1,871,492 262,090 50,484 49,488 180,348 (127) 2,413,776 3,900,522 (888,499) 3,012,022 141,782 1,472,062 (609,438) 862,623 4,016,429 124,727 10,696 135,423 870,911 841,350 (435) 1,711,827 5,863,680 8,277,456 1,823,332 340,201 95,909 79,338 241,588 (113) 2,580,257 4,196,598 (1,010,608) 3,185,989 141,782 1,711,471 (663,593) 1,047,877 4,375,650 114,333 14,983 129,317 936,468 923,187 (435) 1,859,220 6,364,187 8,944,444 3 As of October 31, 2021 As of April 30, 2022 (Thousands of yen) Liabilities Current liabilities Accounts payable – trade Short-term borrowings Current portion of long-term borrowings Income taxes payable Provision for bonuses Provision for point card certificates Other Total current liabilities Non-current liabilities Long-term borrowings Asset retirement obligations 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 Foreign currency translation adjustment Total accumulated other comprehensive income Total net assets Total liabilities and net assets 389,490 － 534,834 445,611 103,435 5,965 1,060,401 2,539,738 1,274,648 341,636 5,045 1,621,329 4,161,068 790,287 1,042,415 2,281,161 (324) 4,113,540 2,847 2,847 4,116,387 8,277,456 487,039 88,705 527,588 429,038 102,613 － 930,955 2,565,939 1,246,421 371,886 2,390 1,620,698 4,186,638 793,117 1,045,244 2,887,625 (324) 4,725,662 32,144 32,144 4,757,806 8,944,444 4 Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative) Consolidated statements of income (cumulative) (Thousands of yen) Six months ended April 30, 2021 Six months ended April 30, 2022 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Foreign exchange gains Commission income Subsidy income Compensation income Other Total non-operating income Non-operating expenses Interest expenses Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Insurance claim income Other Total extraordinary income Extraordinary losses Loss on retirement of non-current assets Impairment losses Total extraordinary losses Profit before income taxes Income taxes Profit Profit attributable to owners of parent 6,303,304 1,784,260 4,519,044 4,213,033 306,011 4,011 0 9,919 151,732 80,000 4,985 250,649 2,239 810 3,049 553,611 － － － － 714 － 714 552,897 197,654 355,242 355,242 7,891,138 2,343,739 5,547,398 4,774,335 773,063 4,643 946 818 410,899 － 10,388 427,695 1,943 1,294 3,237 1,197,520 1,100 16,774 628 18,502 15,466 2,586 18,052 1,197,970 381,035 816,935 816,935 5 Consolidated statements of comprehensive income (cumulative) (Thousands of yen) Six months ended April 30, 2021 Six months ended April 30, 2022 Profit Other comprehensive income Foreign currency translation adjustment Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent 355,242 (380) (380) 354,861 354,861 816,935 29,296 29,296 846,231 846,231 6 Consolidated statements of cash flows (Thousands of yen) Six months ended April 30, 2021 Six months ended April 30, 2022 552,897 187,748 － 10,393 4,253 16 (4,011) 2,239 (151,732) (80,000) － － 714 (14,370) (11,794) 7,683 11,620 109,321 624,980 279 (2,219) (37,024) 149,332 80,000 － 815,348 (797,892) － (96,625) (26,983) (11,986) (933,487) (22,811) 368,500 (295,668) 1,876 (98,888) (141) (47,132) (489) (165,760) 1,791,976 1,626,216 1,197,970 224,870 2,586 10,393 － (13) (4,643) 1,943 (410,899) － (16,774) (1,100) 15,466 (77,935) (75,100) 95,877 (822) (92,756) 869,063 1,953 (1,957) (380,792) 457,263 － 16,774 962,304 (753,735) 1,100 (62,788) － (75,113) (890,537) 88,705 250,000 (288,705) 163 (198,463) － (148,300) 28,373 (48,160) 1,871,492 1,823,332 Cash flows from operating activities Profit before income taxes Depreciation Impairment losses Amortization of goodwill Increase (decrease) in provision for point card certificates Increase (decrease) in allowance for doubtful accounts Interest and dividend income Interest expenses Subsidy income Compensation income Insurance claim income Loss (gain) on sale of non-current assets Loss on retirement of non-current assets Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in provision for bonuses Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Proceeds from subsidy income Proceeds from compensation Proceeds from insurance income 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 Payments of leasehold and guarantee deposits Purchase of shares of subsidiaries resulting in change in scope of consolidation 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 Proceeds from issuance of shares resulting from exercise of share acquisition rights Dividends paid 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 7