Escrit : Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2022

[Japanese GAAP]

May 13, 2022

Company name: ESCRIT INC.

Stock exchange listing: Tokyo Stock Exchange

Code number: 2196

URL: http://www.escrit.jp/

Representative: Morihiro Shibutani, Representative Director, CEO

Contact: Itaru Kichise, Director, CFO

Phone: [phone]

Annual general meeting of shareholders: June 22, 2022

Scheduled date of filing quarterly securities report: June 22, 2022

Scheduled date of commencing dividend payments: ―

Availability of supplementary explanatory materials on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Scheduled (for institutional investors and analysts)

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

1. Consolidated Financial Results for the fiscal year ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit		Ordinary profit		Profit attributable to
					owners of parent
	Fiscal year ended	Million yen		%	Million yen		%	Million yen		%	Million yen		%
	March 31, 2022	22,242		71.9	(1,376)		-	(458)		-	477		-
	March 31, 2021	12,941		(58.8)	(6,401)		-	(6,684)		-	(5,416)		-

(Note) Comprehensive income: Fiscal year ended March 31, 2022: ¥460 million [-%] Fiscal year ended March 31, 2021: ¥(5,422) million [-%]

	Basic earnings	Diluted earnings	Return on	Ordinary profit	Operating profit
	per share	per share	equity	to total assets	to net sales
Fiscal year ended	Yen	Yen	%	%	%
March 31, 2022	18.70	18.70	8.3	(1.8)	(6.2)
March 31, 2021	(419.99)	-	(83.1)	(27.1)	(49.5)

(Note) Although potential dilutive shares existed, diluted earnings per share for the fiscal year ended March 31, 2021 are not stated herein because a net loss per share was recorded.

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen

%

Yen

As of March 31, 2022

24,584

5,928

24.1

208.32

As of March 31, 2021

26,142

5,565

21.3

189.69

(Reference) Equity: As of March 31, 2022: ¥5,926 million

As of March 31, 2021: ¥5,562 million

(3) Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents

operating activities

investing activities

financing activities

at year-end

Fiscal year ended

Million yen

Million yen

Million yen

Million yen

March 31, 2022

(247)

132

(486)

5,929

March 31, 2021

(4,493)

(400)

7,487

6,527

2. Dividends

		Annual dividends			Total	Payout		Dividends
								to net
	1st	2nd	3rd				dividends	ratio
					assets
	quarter-	quarter-	quarter-	Year-end	Total		paid	(consolida
			(consolida
	end	end	End				(annual)	ted)
					ted)
	Yen	Yen	Yen	Yen	Yen		Million yen	%	%
Fiscal year ended	-	0.00	-	0.00	0.00		-	-		-
March 31, 2021
Fiscal year ended	-	0.00	-	0.00	0.00		-	-		-
March 31, 2022
Fiscal year ending
March 31, 2023	-	0.00	-	0.00	0.00			-
(Forecast)

(Note) Dividends noted above are on common shares. As for the status of dividends for Class Shares (unlisted) with different rights from those of common shares of the Company, see "(Reference) Dividends Payable for Class Shares" below.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable	Basic earnings
		to owners of parent	per share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	25,741		15.7	500	-	500	-	300	(37.2)	5.55

* Notes:

(1) Changes in significant subsidiaries during the period under review: Yes (Changes in specified subsidiaries resulting in changes in scope of consolidation):

Newly included: ―, Excluded: One (1) (ESCRIT Management Partners KK)

(Note) On April 1, 2021, the Company conducted an absorption-type merger, in which the Company was the surviving company while ESCRIT Management Partners KK was the absorbed company.

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: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
3. Total number of issued and outstanding shares (common shares)
4. 1. Total number of issued and outstanding shares at the end of the period (including treasury shares):

March 31, 2022:	13,786,500 shares
March 31, 2021:	13,786,500 shares
2) Total number of treasury shares at the end of the period:
March 31, 2022:	277,965 shares
March 31, 2021:	277,932 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2022:	13,508,552 shares
Fiscal year ended March 31, 2021:	12,897,061 shares

(Reference)

1. Non-consolidated Financial Results for the fiscal year ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Non-consolidated Operating Results	(% indicates changes from the previous corresponding period.)
			Net sales	Operating profit	Ordinary profit		Profit attributable to
				owners of parent
	Fiscal year ended		Million yen		%	Million yen	%		Million yen		%	Million yen		%
	March 31, 2022	18,627		130.9	(1,088)	-	(185)		-	664		-
	March 31, 2021	8,066		(68.2)	(5,928)	-	(6,214)		-	(5,466)		-
			Basic earnings per	Diluted earnings per
			share	share
	Fiscal year ended				Yen		Yen
	March 31, 2022			32.51		32.09
	March 31, 2021			(423.86)		-

(Note) Although potential dilutive shares existed, diluted earnings per share for the fiscal year ended March 31, 2021 are not stated herein because a net loss per share was recorded.

(2) Non-consolidated Financial Position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
As of March 31, 2022	22,018	5,445	24.7	172.55
As of March 31, 2021	21,289	4,895	23.0	140.14

(Reference) Equity: As of March 31, 2022: ¥5,444 million As of March 31, 2021: ¥4,893 million

• These consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.

• Explanation of the proper use of financial results forecast and other notes (Notes on forward-looking statements)
  Earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and certain assumptions deemed reasonable, and do not represent a commitment from the Company that they will be achieved. Actual results may differ significantly from the forecasts due to various factors. For the conditions underlying the earnings forecast and notes on the use of the earnings forecast, please refer to "1. Overview of Operating Results, etc. (4) Future Outlook" on page 3 of the Attachments.
  (Access to supplementary explanatory materials on financial results)
  Supplementary explanatory materials on financial results were posted on the Company's website on May 13, 2022.

Dividends Payable for Class Shares

The breakdown of dividend per share for the class shares with different rights from those of the Company's common share is as follows:

			Annual dividends
	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
Class A shares	Yen	Yen	Yen	Yen	Yen
Fiscal year ended	-	-	-	-	-
March 31, 2021
Fiscal year ending	-	37,500.00	-	37,500.00	75,000.00
March 31, 2022
Fiscal year ending
March 31, 2023	-	37,500.00	-	37,500.00	75,000.00
(Forecast)

(Note) Class A shares hereinabove were issued on March 31, 2021.

Breakdown of Dividends Paid Out of Capital Surplus

Of the class A shares for the fiscal year ended March 31, 2022, the breakdown of dividends paid out of capital surplus is as follows:

Base date	2nd quarter-end	Year-end	Total
	Yen	Yen	Yen
Dividend per share	37,500	-	37,500
Total dividends	112,500 thousand	-	112,500 thousand

(Note) Rate of decrease in net assets: 0.015 (rounded up to the third decimal place)