Gift : Consolidated Financial Results for the Six Months Ended April 30, 2022

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 Six Months Ended April 30, 2022 (Based on Japanese GAAP)

June 14, 2022

Company name:

GIFT HOLDINGS INC.

Stock exchange listing:

Tokyo

Stock code:

9279

URL

https://www.gift-group.co.jp/

Representative:

President and Representative Director

Sho Tagawa

Inquiries:

Managing Director & General Manager,

Norihiko Suehiro

TEL

042-860-7182

Administration Division

Scheduled date to file Quarterly Securities Report:

June 14, 2022

Scheduled date to commence dividend payments:

July 20, 2022

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended April 30, 2022 (from November 1, 2021 to April 30, 2022)

(1) Consolidated operating results (cumulative)

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

%

Six months ended April 30, 2022

7,891

25.2

773

152.6

1,197

116.3

816

130.0

Six months ended April 30, 2021

6,303

18.9

306

4.7

553

73.7

355

107.5

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended April 30, 2022

82.05

81.81

Six months ended April 30, 2021

35.74

35.59

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of April 30, 2022

8,944

4,757

53.2

As of October 31, 2021

8,277

4,116

49.7

2. Cash dividends

Annual dividends per share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended October 31, 2021

-

0.00

-

20.00

20.00

Year ending October 31, 2022

-

12.00

Year ending October 31, 2022 (Forecast)

-

13.00

25.00

3. Forecast of consolidated financial results for the year ending October 31, 2022 (from November 1, 2021 to October 31, 2022)

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	17,000	26.2	1,700		81.6	2,000		14.4	1,280	18.9	128.59

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4. Notes
(1)	Changes in significant subsidiaries during the six months ended April 30, 2022	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	Yes
(3)	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
(4)	Number of issued shares (common shares)
	Total number of issued shares at the end of the period (including treasury shares)
		As of April 30, 2022	9,959,545	shares	As of October 31, 2021		9,953,967	shares
	Number of treasury shares at the end of the period
		As of April 30, 2022	157	shares	As of October 31, 2021		157	shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Six months ended April 30, 2022	9,956,202	shares	Six months ended April 30, 2021	9,938,377	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Thousands of yen)
	As of October 31, 2021	As of April 30, 2022
Assets
Current assets
Cash and deposits	1,871,492	1,823,332
Accounts receivable - trade	262,090	340,201
Merchandise and finished goods	50,484	95,909
Raw materials and supplies	49,488	79,338
Other	180,348	241,588
Allowance for doubtful accounts	(127)	(113)
Total current assets	2,413,776	2,580,257
Non-current assets
Property, plant and equipment
Buildings and structures	3,900,522	4,196,598
Accumulated depreciation	(888,499)	(1,010,608)
Buildings and structures, net	3,012,022	3,185,989
Land	141,782	141,782
Other	1,472,062	1,711,471
Accumulated depreciation	(609,438)	(663,593)
Other, net	862,623	1,047,877
Total property, plant and equipment	4,016,429	4,375,650
Intangible assets
Goodwill	124,727	114,333
Other	10,696	14,983
Total intangible assets	135,423	129,317
Investments and other assets
Leasehold and guarantee deposits	870,911	936,468
Other	841,350	923,187
Allowance for doubtful accounts	(435)	(435)
Total investments and other assets	1,711,827	1,859,220
Total non-current assets	5,863,680	6,364,187
Total assets	8,277,456	8,944,444

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		(Thousands of yen)
	As of October 31, 2021	As of April 30, 2022
Liabilities
Current liabilities
Accounts payable - trade	389,490	487,039
Short-term borrowings	－	88,705
Current portion of long-term borrowings	534,834	527,588
Income taxes payable	445,611	429,038
Provision for bonuses	103,435	102,613
Provision for point card certificates	5,965	－
Other	1,060,401	930,955
Total current liabilities	2,539,738	2,565,939
Non-current liabilities
Long-term borrowings	1,274,648	1,246,421
Asset retirement obligations	341,636	371,886
Other	5,045	2,390
Total non-current liabilities	1,621,329	1,620,698
Total liabilities	4,161,068	4,186,638
Net assets
Shareholders' equity
Share capital	790,287	793,117
Capital surplus	1,042,415	1,045,244
Retained earnings	2,281,161	2,887,625
Treasury shares	(324)	(324)
Total shareholders' equity	4,113,540	4,725,662
Accumulated other comprehensive income
Foreign currency translation adjustment	2,847	32,144
Total accumulated other comprehensive income	2,847	32,144
Total net assets	4,116,387	4,757,806
Total liabilities and net assets	8,277,456	8,944,444

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

		(Thousands of yen)
	Six months ended	Six months ended
	April 30, 2021	April 30, 2022
Net sales	6,303,304	7,891,138
Cost of sales	1,784,260	2,343,739
Gross profit	4,519,044	5,547,398
Selling, general and administrative expenses	4,213,033	4,774,335
Operating profit	306,011	773,063
Non-operating income
Interest income	4,011	4,643
Foreign exchange gains	0	946
Commission income	9,919	818
Subsidy income	151,732	410,899
Compensation income	80,000	－
Other	4,985	10,388
Total non-operating income	250,649	427,695
Non-operating expenses
Interest expenses	2,239	1,943
Other	810	1,294
Total non-operating expenses	3,049	3,237
Ordinary profit	553,611	1,197,520
Extraordinary income
Gain on sale of non-current assets	－	1,100
Insurance claim income	－	16,774
Other	－	628
Total extraordinary income	－	18,502
Extraordinary losses
Loss on retirement of non-current assets	714	15,466
Impairment losses	－	2,586
Total extraordinary losses	714	18,052
Profit before income taxes	552,897	1,197,970
Income taxes	197,654	381,035
Profit	355,242	816,935
Profit attributable to owners of parent	355,242	816,935

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