Gift : Consolidated Financial Results for the twelve Months Ended October 31, 2021

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 October 31, 2021

(Based on Japanese GAAP)

December 15, 2021

Company name:

GIFT 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 [phone]

Administration Division

Scheduled date of ordinary general meeting of shareholders:

January 27, 2021

Scheduled date to file Securities Report:

January 28, 2021

Scheduled date to commence dividend payments:

January 28, 2021

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 October 31, 2021 (from November 1, 2020 to October 31, 2021)

(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 October 31, 2021

13,474

22.7

936

102.9

1,748

241.4

1,076

855.3

Year ended October 31, 2020

10,982

21.3

461

(54.2)

512

(50.0)

112

(78.5)

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 October 31, 2021

108.21

107.80

29.8

23.1

6.9

Year ended October 31, 2020

11.36

11.29

3.6

8.1

4.2

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of October 31, 2021

8,277

4,116

49.7

413.55

As of October 31, 2020

6,872

3,107

45.2

312.97

(3) Consolidated cash flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents at end of

operating activities

investing activities

financing activities

period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended October 31, 2021

2,402

(1,707)

(639)

1,871

Year ended October 31, 2020

409

(1,564)

1,089

1,791

2. Cash dividends

Annual dividends per share

Dividend

Ratio of

Total cash

dividends to

payout ratio

1st quarter-

2nd quarter-

3rd quarter-

Fiscal year-

dividends

(Consolidate

net assets

Total

(Total)

(Consolidate

end

end

end

end

d)

d)

Yen

Yen

Yen

Yen

Yen

Millions of

%

%

yen

Year ended October 31, 2020

-

0.00

-

10.00

10.00

99

88.0

3.2

Year ended October 31,

-

0.00

-

20.00

20.00

199

18.5

5.5

2021

Year ending October 31, 2021

-

12.00

－

13.00

25.00

19.4

(Forecast)

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

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
Six months ending	8,070	28.0	830	171.2	960	73.4		610	71.7	61.28
April 30, 2021
Full year	17,000	26.2	1,700	81.6	2,000	14.4		1,280	18.9	128.59
4. Notes
(1) Changes in significant subsidiaries during the year ended October 31, 2021			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:	No
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 October 31, 2021	9,953,967	shares	As of October 31, 2020	9,930,362	shares
Number of treasury shares at the end of the period
	As of October 31, 2021	157	shares	As of October 31, 2020	62	shares
Average number of shares during the period
	Year ended October 31, 2021	9,945,281	shares	Year ended October 31, 2020	9,918,164	Shares

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Consolidated financial statements

Consolidated balance sheets

		(Thousands of yen)
	As of October 31, 2020	As of October 31, 2021
Assets
Current assets
Cash and deposits	1,791,976	1,871,492
Accounts receivable - trade	232,455	262,090
Merchandise and finished goods	50,358	50,484
Raw materials and supplies	39,489	49,488
Other	139,238	180,348
Allowance for doubtful accounts	(409)	(127)
Total current assets	2,253,109	2,413,776
Non-current assets
Property, plant and equipment
Buildings and structures	2,869,600	3,900,522
Accumulated depreciation	(676,375)	(888,499)
Buildings and structures, net	2,193,224	3,012,022
Machinery, equipment and vehicles	669,760	889,598
Accumulated depreciation	(201,982)	(274,058)
Machinery, equipment and vehicles, net	467,778	615,540
Tools, furniture and fixtures	469,217	551,185
Accumulated depreciation	(309,621)	(319,525)
Tools, furniture and fixtures, net	159,595	231,660
Land	149,501	141,782
Other	66,550	31,278
Accumulated depreciation	(11,021)	(15,855)
Other, net	55,528	15,422
Total property, plant and equipment	3,025,629	4,016,429
Intangible assets
Goodwill	145,515	124,727
Other	24,123	10,696
Total intangible assets	169,638	135,423
Investments and other assets
Long-term loans receivable	306,674	406,342
Deferred tax assets	203,280	239,630
Leasehold and guarantee deposits	733,594	870,911
Other	180,615	195,378
Allowance for doubtful accounts	(435)	(435)
Total investments and other assets	1,423,731	1,711,827
Total non-current assets	4,618,998	5,863,680
Total assets	6,872,108	8,277,456

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		(Thousands of yen)
	As of October 31, 2020	As of October 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	298,396	389,490
Short-term borrowings	754,861	－
Current portion of long-term borrowings	547,192	534,834
Accounts payable - other	270,115	522,692
Income taxes payable	67,141	445,611
Provision for bonuses	68,166	103,435
Provision for point card certificates	－	5,965
Asset retirement obligations	1,251	－
Other	395,397	537,708
Total current liabilities	2,402,521	2,539,738
Non-current liabilities
Long-term borrowings	1,093,332	1,274,648
Deferred tax liabilities	20,197	－
Asset retirement obligations	241,030	341,636
Other	7,135	5,045
Total non-current liabilities	1,361,696	1,621,329
Total liabilities	3,764,217	4,161,068
Net assets
Shareholders' equity
Share capital	786,345	790,287
Capital surplus	1,038,473	1,042,415
Retained earnings	1,304,314	2,281,161
Treasury shares	(88)	(324)
Total shareholders' equity	3,129,044	4,113,540
Accumulated other comprehensive income
Foreign currency translation adjustment	(21,154)	2,847
Total accumulated other comprehensive income	(21,154)	2,847
Total net assets	3,107,890	4,116,387
Total liabilities and net assets	6,872,108	8,277,456

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

		(Thousands of yen)
	Fiscal year ended	Fiscal year ended
	October 31, 2020	October 31, 2021
Net sales	10,982,335	13,474,995
Cost of sales	3,212,572	3,762,743
Gross profit	7,769,762	9,712,252
Selling, general and administrative expenses	7,308,497	8,776,134
Operating profit	461,265	936,117
Non-operating income
Interest income	9,165	8,593
Commission income	19,805	25,543
Foreign exchange gains	665	341
Subsidy income	36,050	659,972
Compensation income	－	80,000
Other	4,116	42,684
Total non-operating income	69,803	817,136
Non-operating expenses
Interest expenses	2,729	4,307
Prepayment fee	1,150	－
Market change expenses	12,749	－
Other	2,421	692
Total non-operating expenses	19,050	4,999
Ordinary profit	512,017	1,748,254
Extraordinary income
Gain on sale of non-current assets	1,194	189
Gain on liquidation of subsidiaries	10,771	－
Gain on insurance claims	9,331	－
Other	1,829	－
Total extraordinary income	23,126	189
Extraordinary losses
Impairment losses	173,104	105,696
Amortization of goodwill	－	74,687
Loss on retirement of non-current assets	9,802	22,607
Loss on sale of non-current assets	20,775	－
Loss on temporary closing of stores	6,374	－
Other	255	－
Total extraordinary losses	210,311	202,991
Profit before income taxes	324,833	1,545,451
Income taxes - current	233,240	525,799
Income taxes - deferred	(21,067)	(56,546)
Total income taxes	212,172	469,253
Profit	112,660	1,076,198
Profit attributable to owners of parent	112,660	1,076,198

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