H U : Notice Regarding Recording of Extraordinary Loss (Business Restructuring Expenses)

	May 14, 2021
FOR IMMEDIATE RELEASE
Company name:	H.U. Group Holdings, Inc.
Representative:	Shigekazu Takeuchi, Director,
	President and Group CEO
Securities code:	4544 First Section, Tokyo Stock
Contact:	Exchange
Naoki Kitamura, CFO
Telephone No:	03-5909-3337

Notice Regarding Recording of Extraordinary Loss (Business Restructuring Expenses)

H.U. Group Holdings, Inc. (hereinafter, "the Company") hereby announces that it recorded an extraordinary loss in the consolidated results for fiscal year ended March 31, 2021, as described below.

1. Reason for recording extraordinary loss (business restructuring expenses)

The business environment surrounding the H.U. Group is expected to continue to be difficult, especially in clinical testing market in Japan, reflecting the pressure to reduce laboratory test service costs associated with worsening business conditions of medical institutions and demand for healthcare expenditure reduction, as well as projected growth of healthcare expenditures caused mainly by aging of population and the introduction of advanced medicine. Moreover, appropriate response to recent changes in consumer behavior and patients' self- restraint of seeking medical attention due to the spread of the COVID-19 infections is required. Amid this business environment, the Group has been promoting fixed cost reduction and profitability improvement as part of the key initiatives under its medium-term plan "H.U. 2025 ~Hiyaku (significant growth) & United~." Reasonable costs and losses associated with said initiatives have been estimated and the Company recorded 1,504 million yen as business restructuring expenses under extraordinary loss.

2. Impact on financial results

Please refer to the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (under Japanese GAAP)" released today regarding the effect of recording an extraordinary loss on the Company's financial results.

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