E J : 「Delayed」Summary of Consolidated Financial Results for the Year Ended May 31,2022(Based on 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 Year Ended May 31, 2022
			(Based on Japanese GAAP)
																			July 12, 2022
Company name:	E･J Holdings Inc.
Stock exchange listing:	Tokyo
Stock code:	2153	URL https://www.ej-hds.co.jp
Representative:	President						Yuji Kotani
Inquiries:	Director						Masanori Hamano	TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	August 26, 2022
Scheduled date to file Securities Report:		August 29, 2022
Scheduled date to commence dividend payments:		August 29, 2022
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:						Yes	(for institutional investors and analysts)
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended May 31, 2022 (from June 1, 2021 to May 31, 2022)
(1) Consolidated operating results												Percentages indicate year-on-year changes
			Net sales		Operating profit	Ordinary profit	Profit attributable to
				owners of parent
			Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen		%
Year ended May 31, 2022		36,668		-	4,491		-		4,706	-	3,121		-
Year ended May 31, 2021		34,334		13.0	3,857		29.2		4,054	26.6	2,784		37.2
			Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
				share			owners of				assets			sales
									parent/equity
				Yen		Yen				%					%				%
Year ended May 31, 2022		197.46			-				11.8					12.3				12.3
Year ended May 31, 2021		187.47			-				12.2					11.8				11.2
(2) Consolidated financial position
			Total assets		Net assets		Equity ratio	Net assets per share
			Millions of yen	Millions of yen					%					Yen
As of May 31, 2022			39,240					27,544					70.2			1,763.46
As of May 31, 2021			37,513					25,497					68.0			1,601.13
(3) Consolidated cash flows
			Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended May 31, 2022					956					(505)					(1,315)					17,023
Year ended May 31, 2021		3,397					(752)					1,631					17,888
2. Cash dividends
						Annual dividends per share					Total cash	Dividend payout	Ratio of dividends
															to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen		Yen	Yen				Yen	Yen	Millions of yen	%			%
Year ended May 31, 2021		-		0.00	-				35.00	35.00		562	18.7			2.3
Year ended May 31, 2022		-		0.00	-				43.00	43.00		691	21.8			2.6
Year ending May 31, 2023		-			0.00	-				50.00	50.00			24.7
(Forecast)

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3. Forecast of consolidated financial results for the year ending May 31, 2023 (from June 1, 2022 to May 31, 2023)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Full year

37,000

100.9

4,600

102.4

4,800

102.0

3,200

102.5

202.43

4. Notes

(1) Changes in significant subsidiaries during the year ended May 31, 2022

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) 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:

Yes

Changes in accounting policies due to other reasons:

No

Changes in accounting estimates:

No

Restatement of prior period financial statements:

No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of May 31, 2022

16,078,920 shares

As of May 31, 2021

16,078,920 shares

Number of treasury shares at the end of the period

As of May 31, 2022

463,740 shares

As of May 31, 2021

158,502 shares

Average number of shares during the period

Year ended May 31, 2022

15,808,324 shares

Year ended May 31, 2021

14,854,106 shares

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of May 31, 2021	As of May 31, 2022
Assets
Current assets
Cash and deposits	18,975	18,090
Notes and accounts receivable - trade	3,748	-
Accounts receivable - trade	-	4,317
Contract assets	-	924
Inventories	3,219	3,613
Advance payments to suppliers	69	104
Prepaid expenses	267	298
Other	204	340
Allowance for doubtful accounts	(4)	(6)
Total current assets	26,480	27,683
Non-current assets
Property, plant and equipment
Buildings and structures	5,387	5,466
Accumulated depreciation	(2,971)	(3,093)
Buildings and structures, net	2,416	2,372
Machinery, equipment and vehicles	269	266
Accumulated depreciation	(216)	(221)
Machinery, equipment and vehicles, net	53	44
Tools, furniture and fixtures	1,897	2,054
Accumulated depreciation	(1,441)	(1,558)
Tools, furniture and fixtures, net	456	495
Leased assets	20	51
Accumulated depreciation	(9)	(10)
Leased assets, net	11	40
Land	2,315	2,335
Construction in progress	1	5
Total property, plant and equipment	5,254	5,294
Intangible assets
Goodwill	987	862
Other	260	323
Total intangible assets	1,248	1,186
Investments and other assets
Investment securities	2,693	2,946
Bad debts	0	0
Investment property	778	781
Accumulated depreciation	(337)	(346)
Investment property, net	441	435
Deferred tax assets	357	504
Retirement benefit asset	80	83
Other	1,082	1,217
Allowance for doubtful accounts	(125)	(112)
Total investments and other assets	4,529	5,075
Total non-current assets	11,032	11,556
Total assets		37,513	39,240

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			(Millions of yen)
		As of May 31, 2021	As of May 31, 2022
Liabilities
Current liabilities
Accounts payable - operating	834	1,090
Current portion of bonds payable	50	-
Current portion of long-term borrowings	305	213
Accounts payable - other	1,067	1,294
Accrued expenses	2,127	2,265
Income taxes payable	1,120	1,111
Accrued consumption taxes	769	454
Advances received on service contracts in progress	4,034	-
Contract liabilities	-	3,692
Provision for bonuses for directors (and other officers)	33	26
Provision for loss on orders received	232	264
Other	146	134
Total current liabilities	10,721	10,549
Non-current liabilities
Long-term borrowings	572	358
Lease liabilities	8	34
Deferred tax liabilities	53	55
Retirement benefit liability	357	384
Provision for share awards for directors (and other	52	78
officers)
Provision for Employee Stock Ownership Plan Trust	21	31
Long-term accounts payable - other	197	176
Provision for loss on guarantees	13	10
Guarantee deposits received	18	18
Total non-current liabilities	1,294	1,146
Total liabilities	12,015	11,696
Net assets
Shareholders' equity
Share capital	2,803	2,803
Capital surplus	4,387	4,379
Retained earnings	17,593	20,050
Treasury shares	(84)	(467)
Total shareholders' equity	24,700	26,765
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	510	612
Foreign currency translation adjustment	(0)	(0)
Remeasurements of defined benefit plans	280	160
Total accumulated other comprehensive income	790	771
Non-controlling interests	7	7
Total net assets	25,497	27,544
Total liabilities and net assets		37,513	39,240

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		May 31, 2021	May 31, 2022
Net sales
Completed service contracts	34,334	36,668
Cost of sales
Cost of completed service contracts	22,933	24,465
Gross profit	11,401	12,202
Selling, general and administrative expenses
Remuneration for directors (and other officers)	749	729
Salaries and allowances	2,451	2,573
Bonuses	1,130	1,162
Retirement benefit expenses	81	84
Provision for share awards for directors (and other officers)	22	38
Provision for share-based remuneration for employee	9	12
Legal welfare expenses	667	698
Travel and transportation expenses	131	146
Rent expenses	393	434
Provision of allowance for doubtful accounts	0	-
Depreciation	179	131
Amortization of goodwill	125	125
Other	1,602	1,573
Total selling, general and administrative expenses	7,543	7,711
Operating profit	3,857	4,491
Non-operating income
Interest income	9	14
Dividend income	33	39
Share of profit of entities accounted for using equity method	160	122
Rental income from real estate	31	32
Consulting fee income	9	6
Other	44	69
Total non-operating income	289	283
Non-operating expenses
Interest expenses	11	11
Rental expenses on real estate	23	22
Guarantee commission	12	9
Foreign exchange losses	14	-
Share issuance costs	17	-
Settlement payments	-	10
Other	12	14
Total non-operating expenses	91	68
Ordinary profit		4,054	4,706

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