Escrit : Consolidated Financial Results for the Six Months Ended September 30, 2021

Consolidated Financial Results

for the Six Months Ended September 30, 2021

[Japanese GAAP]

November 12, 2021

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]

Scheduled date of filing quarterly securities report: November 12, 2021

Scheduled date of commencing dividend payments: ―

Availability of supplementary explanatory materials on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Not scheduled

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

1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (April 1, 2021 - September 30,

2021)
(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
		Net sales	Operating profit		Ordinary profit		Profit attributable to
				owners of parent
	Six months ended	Million yen	%	Million yen		%	Million yen		%	Million yen		%
	September 30, 2021	9,980	189.5	(1,092)		-	(920)		-	158		-
	September 30, 2020	3,447	(79.0)	(3,781)		-	(3,888)		-	(3,244)		-

(Note) Comprehensive income: Six months ended September 30, 2021: ¥152 million [-%] Six months ended September 30, 2020: ¥(3,243) million [-%]

	Basic earnings	Diluted earnings
	per share	per share
Six months ended	Yen	Yen
September 30, 2021	3.37	3.37
September 30, 2020	(264.06)	-

(Note) Although potential dilutive shares existed, diluted earnings per share for the six months ended September 30, 2020 are not stated herein because a net loss per share was recorded.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of September 30, 2021	24,621	5,734	23.3
As of March 31, 2021	26,142	5,565	21.3

(Reference) Equity: As of September 30, 2021: ¥5,731 million As of March 31, 2021: ¥5,562 million

2. Dividends

				Annual dividends
		1st quarter-end	2nd quarter-end		3rd quarter-end	Year-end	Total
		Yen	Yen		Yen	Yen	Yen
Fiscal year ended		-	0.00		-	0.00	0.00
March 31, 2021
Fiscal year ending		-	0.00
March 31, 2022
Fiscal year ending
March 31, 2022					-	0.00	0.00
(Forecast)

(Note) Revision to the forecast for dividends announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(% indicates changes from the previous corresponding period.)

								Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
			per share
								parent
	Million yen		%	Million yen	%	Million yen	%	Million yen		%	Yen
Full year	22,406		73.1	(1,174)	-	(1,006)	-	100		-	(9.25)

(Note) Revision to the financial results forecast announced most recently: Yes

* 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. Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 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

Notes on changes in accounting policies

(4) Total number of issued and outstanding shares (common shares)

1)	Total number of issued and outstanding shares at the end of the period (including treasury shares):
	September 30, 2021:	13,786,500 shares
	March 31, 2021:	13,786,500 shares
2)	Total number of treasury shares at the end of the period:
	September 30, 2021:	277,932 shares
	March 31, 2021:	277,932 shares
3) Average number of shares during the period:
	Six months ended September 30, 2021:	13,508,568 shares
	Six months ended September 30, 2020:	12,288,896 shares

• These quarterly 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.
  (Access to supplementary explanatory materials on financial results)
  Supplementary explanatory materials on financial results were posted on the Company's website on November 12, 2021.

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
March 31, 2022
Fiscal year ending
March 31, 2022						-	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 second quarter of the fiscal year ending March 31, 2022, the breakdown of dividends paid out of capital surplus is as follows:

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

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

2. Quarterly Consolidated Financial Statements and Principal Notes

(1) Quarterly Consolidated Balance Sheets

(Thousand yen)

As of March 31, 2021

As of September 30, 2021

Assets

Current assets

Cash and deposits

Notes and accounts receivable - trade

Notes and accounts receivable - trade, and contract assets

Accounts receivable from completed construction contracts

Real estate for sale

Merchandise and finished goods

Raw materials and supplies

Costs on construction contracts in progress Other

Allowance for doubtful accounts

Total current assets

Non-current assets

Property, plant and equipment

6,723,607		4,940,653
135,353		-
-		346,150
724,319	10,986
420,645		367,699
269,122	274,590
62,267		69,534
57,958	522,182
962,038		807,806
(38,829)	(40,020)
9,316,483		7,299,584

Buildings and structures, net	7,186,774	6,746,681
Other		1,931,312	1,786,646
Total property, plant and equipment	9,118,087	8,533,327
Intangible assets		79,451	90,541
Investments and other assets
Leasehold and guarantee deposits		3,639,927	3,605,311
Deferred tax assets	3,673,003	4,788,633
Other		344,847	333,498
Allowance for doubtful accounts	(28,999)	(29,807)
Total investments and other assets		7,628,780	8,697,636
Total non-current assets	16,826,319	17,321,504
Total assets		26,142,802	24,621,089

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