EGuarantee : Consolidated Financial Results for the Nine Months Ended December 31, 2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

[Japanese GAAP]

Company name: eGuarantee,Inc.	January 28, 2022
Stock exchange listing: Tokyo
Code number: 8771
URL: https://www.eguarantee.co.jp/
Representative: Masanori Eto	President and Chief Executive Officer
Contact: Nozomu Murai	Director, General Manager of Corporate Administration Dept.

Phone: [phone]

Scheduled date of filing quarterly securities report: February 10, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 01, 2021 to December 31, 2021)

(1) Consolidated Operating Results						(% indicates changes from the previous corresponding period.)
		Net sales			Operating profit	Ordinary profit		Profit attributable to
					owners of parent
Nine months ended	Million yen		%		Million yen	%	Million yen	%		Million yen	%
December 31, 2021		5,864		10.7		2,819	23.2		2,811	22.2			1,840	23.1
December 31, 2020		5,297		20.0		2,287	14.8		2,300	14.2			1,495	(15.6)
(Note) Comprehensive income:	Nine months ended December 31, 2021:	¥		1,977 million	[	27.8%]
		Nine months ended December 31, 2020:	¥		1,547 million	[	(16.0) %]
		Basic earnings	Diluted earnings per
		per share				share
Nine months ended				Yen			Yen
December 31, 2021				39.61			38.35
December 31, 2020				33.93			31.81
(2) Consolidated Financial Position
		Total assets			Net assets	Capital adequacy ratio		Net assets per share
As of			Million yen			Million yen				%				Yen
December 31, 2021		23,589			18,801				74.0				373.70
March 31, 2021		22,570			17,186				70.3				347.19
(Reference) Equity: As of	December 31, 2021:	¥	17,466 million
As of	March 31, 2021:			¥	15,876 million

2. Dividends

					Annual dividends
		1st	2nd		3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
		Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2021		-		0.00	-		22.00	22.00
Fiscal year ending March 31, 2022		-		0.00	-
Fiscal year ending March 31, 2022							22.00	22.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No
(Note) Breakdown of the 3rd quarter dividend for the fiscal year ending March 31, 2022 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

			Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
				owners of parent	per share
			Million yen		%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year			8,500		18.1	3,720	20.4	3,750		20.6	2,400	19.8	52.48
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the nine months ended December 31, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New	-	(Company name:									)
Exclusion:	-	(Company name:									)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	Yes

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2021:	46,742,200	shares
March 31, 2021:	45,729,800	shares
2) Total number of treasury shares at the end of the period:
December 31, 2021:	1,434	shares
March 31, 2021:	1,414	shares

3) Average number of shares during the period:
Nine months ended December 31, 2021:	46,462,899	shares
Nine months ended December 31, 2020:	44,072,310	shares

(5) Guarantee liabilities for guarantee services against sales credit

Guarantee liabilities for guarantee services against sales credit 546.9 billion yen

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

			(Thousand yen)
		As of March 31,2021	As of December 31,2021
Assets
	Current assets
	Cash and deposits	16,056,248	15,551,324
	Accounts receivable - trade	65,437	70,960
	Securities	-	1,200,000
	Prepaid expenses	793,539	1,123,124
	Accounts receivable - other	63,981	46,650
	Other	106,609	123,219
	Total current assets	17,085,816	18,115,278
	Non-current assets
	Property, plant and equipment	1,385,945	1,384,754
	Intangible assets	111,178	120,878
	Investments and other assets
	Investment securities	3,426,737	3,426,737
	Deferred tax assets	233,829	233,829
	Other	326,964	307,759
	Total investments and other assets	3,987,531	3,968,326
	Total non-current assets	5,484,655	5,473,958
	Total assets	22,570,471	23,589,237
Liabilities
	Current liabilities
	Accounts payable - trade	9,932	18,367
	Income taxes payable	934,750	348,165
	Advances received	3,664,750	3,579,664
	Provision for settlement	342,711	422,199
	Provision for bonuses	150,000	83,760
	Deposits received	31,943	53,441
	Other	135,021	166,907
	Total current liabilities	5,269,109	4,672,506
	Non-current liabilities
	Long-term accounts payable - other	115,282	115,282
	Total non-current liabilities	115,282	115,282
	Total liabilities	5,384,392	4,787,788
Net assets
	Shareholders' equity
	Share capital	3,097,652	3,475,726
	Capital surplus	2,507,652	2,885,726
	Retained earnings	10,272,144	11,106,372
	Treasury shares	(824)	(877)
	Total shareholders' equity	15,876,626	17,466,948
	Share acquisition rights	147,996	140,603
	Non-controlling interests	1,161,456	1,193,896
	Total net assets	17,186,079	18,801,448
Total liabilities and net assets	22,570,471	23,589,237

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

			(Thousand yen)
		For the nine months	For the nine months
		ended December 31,2020	ended December 31,2021
Net sales	5,297,173	5,864,137
Cost of sales	1,344,538	1,272,188
Gross profit	3,952,634	4,591,948
Selling, general and administrative expenses	1,664,696	1,772,838
Operating profit	2,287,938	2,819,110
Non-operating income
	Interest income	14,739	9,460
	Other	2,796	1,314
	Total non-operating income	17,535	10,774
Non-operating expenses
	Share of loss of entities accounted for using equity	4,832	18,020
	method
	Other	-	31
	Total non-operating expenses	4,832	18,051
Ordinary profit	2,300,641	2,811,833
Extraordinary losses
	Loss on retirement of non-current assets	100	385
	Loss on valuation of investment securities	49,999	-
	Total extraordinary losses	50,100	385
Profit before income taxes	2,250,541	2,811,447
Income taxes	703,447	833,964
Profit	1,547,093	1,977,482
Profit attributable to non-controlling interests	51,913	137,231
Profit attributable to owners of parent	1,495,179	1,840,251

Quarterly Consolidated Statements of Comprehensive Income (For the nine months)

			(Thousand yen)
		For the nine months	For the nine months
		ended December 31,2020	ended December 31,2021
Profit	1,547,093	1,977,482
Comprehensive income	1,547,093	1,977,482
Comprehensive income attributable to
	Comprehensive income attributable to owners of	1,495,179	1,840,251
	parent
	Comprehensive income attributable to non-controlling	51,913	137,231
	interests