Highlights of Consolidated Results for the 2nd Quarter of Fiscal Year ending March 31, 2022

This document is a summary translation of the Japanese language original version. In the event of any discrepancy, errors and/or omissions, the Japanese language version shall prevail.

November 8, 2021

Highlights of Consolidated Results for the First Half and the Second Quarter of Fiscal Year ending March 31, 2022

			Millions of yen (except for per share amounts)
		Six months ended Sept. 30, 2020		Six months ended Sept. 30, 2021	Change	%
Revenue		Y	290,062		Y	350,517		20.8
Business segment profit			31,985			49,401		54.4	%
Operating profit			32,518			51,178		57.4	%
Profit before income taxes			32,643			51,576		58.0	%
Profit for the period			24,726			37,114		50.1	%
Profit for the period attributable to owners of the parent company			24,697			36,812		49.1	%
Comprehensive income for the period			32,519			37,736		16.0	%
Basic earnings per share for the period (yen)			95.04			141.61
Diluted earnings per share for the period (yen)			94.75			141.19
Dividends per common share (yen)			27.00			30.00

(Note) Business segment profit is calculated by subtracting cost of sales and selling, general and administrative expenses from revenue.

			As of Mar. 31, 2021			As of Sept. 30, 2021
Total assets		Y	743,896		Y	757,891
Total equity			499,707			528,871
Equity attributable to owners of the parent company			483,050			511,961
Equity attributable to owners of the parent company ratio			64.9	%		67.6	%
Equity attributable to owners of the parent company per share (yen)			1,858.28			1,969.35

Highlights of Consolidated Forecast for Fiscal Year ending March 31, 2022

			Millions of yen (except for per share amounts)
						[Forecast]
		Year ended Mar. 31, 2021		Year ended Mar. 31, 2022	Change
Revenue		Y	631,812		Y	695,000		10.0	%
Business segment profit			78,076			78,000		-0.1 %
Operating profit			42,731			78,000		82.5	%
Profit before income taxes			42,944			78,000		81.6	%
Profit for the period			24,659			53,000		114.9	%
Profit for the period attributable to owners of the parent company			24,520			53,000		116.1 %
Basic earnings per share for the period (yen)			94.36			203.88
Dividends per common share (yen)			60.00			60.00

(Note) Business segment profit is calculated by subtracting cost of sales and selling, general and administrative expenses from revenue.

Notes:

1. The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS).
2. Amounts less than 1 million yen have been rounded down.
3. Operating results for the six months ended Sept. 30, 2021 are based on the following currency exchange rates: Actual average rates for the six months ended Sept. 30, 2021: US$=110.18 yen, EURO=130.97 yen Forecasts for the year ending Mar. 31, 2022 are based on the following currency exchange rates:
   Assumed average rates for the year ending Mar. 31, 2022: US$=109.48 yen, EURO=128.59 yen
4. Number of shares outstanding (including treasury stock): 262,220 thousands as of Mar. 31, 2021, 262,220 thousands as of Sept. 30, 2021
   Number of treasury stock outstanding: 2,276 thousands as of Mar. 31, 2021, 2,255 thousands as of Sept. 30, 2021 Number of weighted average shares:
   259,851 thousands during the six months ended Sept 30, 2020, 259,954 thousands during the six months ended Sept 30, 2021
5. Changes in Accounting Policies: Amendment to IFRS 16 Leases
   The Brother Group early applied the practical expedient in paragraph 46A from the first quarter of the year ending March 31,2021. Furthermore, with the renewal of Section 46B (b), the Brother Group applied the renewed standards from the first quarter of
   the year ending March 31,2022.
6. Impact of COVID-19
   Regarding the impact of COVID-19, it is impossible to predict when it will end and how it will affect future cash-flow. Although the global
   GDP forecast is on a recovery trend, the degree of recovery will vary depending on the country/region. Due to these diffrences and other reasons, the uncertainty over the Group's future business activities continues.
   The Group has made estimates and judgements involving estimations that the current situation will affect its consolidated financial performance for the year ending Mar. 31, 2022. The Group's consolidated financial statements for the year ending Mar. 31, 2022 and onwards (particularly, impairment losses of property, plant and equipment, right-of-use assets, intangible assets, including goodwill, and investment property) may be significantly affected depending on the actual outcome.

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Consolidated Statement of Financial Position

				Millions of yen
				As of			As of
				Mar. 31,			Sept. 30,
				2021			2021
Assets
Current assets				Y	173,360
Cash and cash equivalents	Y	191,002
Trade and other receivables		93,055			100,738
Other financial assets		8,391			7,103
Inventories		120,186			140,643
Other current assets		16,070			19,761
Subtotal		428,705			441,606
Non-current assets classified as held for sale		45			-
Total current assets		428,751			441,606
Non-current assets					107,853
Property, plant and equipment		107,742
Right-of-use assets		20,835			19,877
Investment property		8,248			8,043
Goodwill and intangible assets		118,196			115,409
Investments accounted for using		1,772			1,797
the equity method
				38,184
Other financial assets		36,042
Deferred tax assets		14,842			17,363
Other non-current assets		7,464			7,755
Total non-current assets		315,145			316,284
Total assets	Y	743,896		Y	757,891
Equity and liabilities
Liabilities
Current liabilities				Y	61,392
Trade and other payables	Y	54,589
Bonds and borrowings		19,167			19,080
Other financial liabilities		9,887			9,127
Income taxes payable		6,779			11,301
Provisions		4,015			3,587
Contract liabilities		5,636			5,276
Other current liabilities		51,412			47,787
Total current liabilities		151,489			157,554
Non-current liabilities					19,665
Bonds and borrowings		38,290
Other financial liabilities		23,295			19,955
Retirement benefits liabilities		19,316			19,376
Provisions		2,848			2,901
Deferred tax liabilities		6,394			7,228
Contract liabilities		1,506			1,282
Other non-current liabilities		1,047			1,054
Total non-current liabilities		92,700			71,465
Total liabilities		244,189			229,020
Equity					19,209
Capital stock		19,209
Capital surplus		17,652			17,738
Retained earnings		509,662			537,234
Treasury stock		(2,477)			(2,433)
Other components of equity		(60,998)			(59,787)
Equity attributable to owners of the		483,050			511,961
parent company
				16,909
Non-controlling interests		16,657
Total equity		499,707			528,871
Total equity and liabilities	Y	743,896		Y	757,891

2

Consolidated Statement of Income

Millions of yen

		Six months ended		Six months ended
		Sept. 30,			Sept. 30,
			2020			2021
Revenue		Y	290,062		Y	350,517
Cost of sales			(160,446)			(195,179)
Gross profit			129,616			155,337
Selling, general and administrative expenses			(97,630)			(105,936)
Other income			2,606			3,294
Other expenses			(2,073)			(1,517)
Operating profit			32,518			51,178
Finance income			1,383			1,127
Finance expenses			(1,391)			(834)
Share of profit/(loss) of investments accounted for using			131			104
the equity method
Profit before income taxes			32,643			51,576
Income tax expenses			(7,917)			(14,461)
Profit for the period			24,726			37,114
Profit for the period attributable to:
Owners of the parent company			24,697			36,812
Non-controlling interests			28			302
Profit for the period		Y	24,726		Y	37,114

Earnings per share:		Yen			Yen
Basic earnings per share	Y	95.04		Y	141.61
Diluted earnings per share		94.75			141.19

3

Consolidated Statement of Income

Millions of yen

		Three months ended		Three months ended
		Sept. 30,			Sept. 30,
			2020			2021
Revenue		Y	156,876		Y	176,504
Cost of sales			(83,398)			(98,923)
Gross profit			73,477			77,580
Selling, general and administrative expenses			(50,114)			(54,348)
Other income			1,715			2,601
Other expenses			(1,823)			(1,116)
Operating profit			23,255			24,717
Finance income			762			706
Finance expenses			(919)			(624)
Share of profit/(loss) of investments accounted for using			83			42
the equity method
Profit before income taxes			23,181			24,841
Income tax expenses			(5,085)			(6,497)
Profit for the period			18,095			18,343
Profit for the period attributable to:
Owners of the parent company			18,079			18,193
Non-controlling interests			15			149
Profit for the period		Y	18,095		Y	18,343

Earnings per share:		Yen			Yen
Basic earnings per share	Y	69.58		Y	69.99
Diluted earnings per share		69.36			69.77

4

Consolidated Statement of Comprehensive Income

Millions of yen

		Six months ended		Six months ended
		Sept. 30,			Sept. 30,
			2020			2021
Profit for the period		Y	24,726		Y	37,114

Other comprehensive income, net of income tax

Items that will not be reclassified subsequently to profit or loss

Gains/(Losses) on investments in equity instruments designated as FVTOCI

Total of items that will not be reclassified subsequently to profit or loss

Items that may be reclassified subsequently to profit or loss

Exchange differences on translating foreign operations

Total of items that may be reclassified subsequently to profit or loss

Other comprehensive income for the period, net of income tax

Comprehensive income for the period

Comprehensive income for the period attributable to:

2,858(600)

2,858(600)

4,935	1,223
4,935		1,223
7,793		622
32,519	37,736

Owners of the parent company		32,402			37,370
Non-controlling interests		117			366
Comprehensive income for the period	Y	32,519		Y	37,736

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