ASKUL : 【Delayed】Revision of Full-Year Earnings Forecast and Dividend Forecast

Disclaimer

This is an English translation of the captioned release. This translation is prepared and provided for the purpose of the reader's convenience. All readers are recommended to refer to the original version in Japanese of the release for complete information.

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March 16, 2021

To whom it may concern,

Company Name RepresentativeASKUL Corporation Akira Yoshioka

President and Chief Executive Officer (Code No. 2678, Tokyo Stock Exchange First Section)

Contact

Tsuguhiro Tamai

Director and Chief Financial Officer Phone: [phone]

Revision of Full-Year Earnings Forecast and Dividend Forecast

ASKUL Corporation (hereinafter referred to as the "Company") hereby announces that it revised the full-year consolidated earnings forecast for the fiscal year ending May 20, 2021, and year-end dividend forecast announced on December 15, 2020, as described below, taking into consideration the recent trends in its business performance.

1. Revision of Earnings Forecast

(1) Revision of consolidated earnings forecast for fiscal year ending May 20, 2021 (from May 21, 2020, to May 20, 2021)

(millions of yen)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Earnings per share (yen)
Previously released forecast (A)	410,000	10,800	10,600	当期純利益 6,000	117.47
Revised forecast (B)	416,000	13,000	12,900	7,000	136.92
Change (B-A)	6,0060	2,200	2,300	1,000
Percentage change (%)	1.51%3,	20.3%	21.7%	16.7%
Reference: Results for the previous full year (fiscal year ended May 20, 2020)	000 400,376	8,821	8,656	5,652	110.78

(2) Main reasons for revising earning1s2f,orecast

Concerning the consolidated bus9in0e0ss performance for fiscal year ending May 20, 2021, net sales, gross profit margin, and logistics cost ratio of the B-to-B business have been steady compared with the plan continuing in the third quarter. W7h,0ile the situation surrounding the novel coronavirus remains uncertain, the Company revised upwa0r0d the consolidated earnings forecast for the fiscal year ending May 20, 2021, on expectation that the profitability through the third quarter would continue to be maintained in the fourth quarter. The Company is expecting a spending of 600 to 700 million yen in the fourth quarter for growth from the next fiscal year onwards.

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Disclaimer

This is an English translation of the captioned release. This translation is prepared and provided for the purpose of the reader's convenience. All readers are recommended to refer to the original version in Japanese of the release for complete information.

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2. Revision of Dividend Forecast

(1) Revision of dividend forecast for fiscal year ending May 20, 2021

Annual dividend per share
End of second quarter	Year-end	Total
Previous forecast (July 15, 2020)	¥19	¥38
Revised forecast (fiscal year ending May 20, 2021)	¥25	¥44
Results for the current fiscal year (fiscal year ending May 20, 2021)	¥19
Results for the previous fiscal year (fiscal year ending May 20, 2020)	¥19	¥19	¥38

(2) Main reasons for revising dividend forecast

ASKUL's policy is to allocate earnings based on the comprehensive assessment of various factors, striking a good balance between two goals-namely, "securing sufficient internal reserves for financing capital expenditures to increase the corporate value over a mid- to long-term period" and "pursuing a dividend policy as a means to deliver appropriate returns to meet the expectations of shareholders"- while ensuring strong cash flows and sound financial position. The Company revised upward the year-end dividend forecast for the fiscal year ending May 20, 2021, to 25 yen per share along with the upward revision of the consolidated earnings forecast for the same period.

*The earnings forecast and dividend forecast described above are based on the information the Company has obtained to date and actual results may differ materially from these forecasts due to a variety of factors in the future.

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