Revisions to the Full-Year Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022

November 9, 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 Exchange

Contact: Atsuko Murakami,

Executive Officer and CFO

Telephone No.: [phone]

Notice of Differences between the Consolidated Earnings Forecasts and Results for the First

Six-Months of the Fiscal Year Ending March 31, 2022, and Revisions to the Full-Year

Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022

H.U. Group Holdings, Inc. hereby announces differences between the consolidated earnings forecasts for the first six months of the fiscal year ending March 31, 2022, announced on August 10, 2021, and the results announced today. The Company also hereby announces revisions to its full-year consolidated earnings forecasts.

1. Differences between the consolidated earnings forecasts and results for the first six months of the fiscal year ending March 31, 2022 (April 1, 2021 - September 30, 2021)

															Profit			Earnings
				Net sales				Operating			Ordinary				attributable to
							profit			profit				owners of			per share
				(Million yen)
							(Million yen)			(Million yen)				parent			(Yen)
													(Million yen)
		Previously announced
		forecast (A)	128,000	21,500	21,000	13,500		236.73
		(Announced on August
	10, 2021)
		Result (B)	133,739	26,951	26,745	19,519		342.23
		Change (B - A)	5,739	5,451	5,745	6,019			―
		Change (%)	4.5	25.4	27.4	44.6			―
		(Reference) Results for the
		same period a year ago	98,566		8,146	7,342		5,102		89.52
		(First six months of fiscal year
		ended March 31, 2021)

(Reference)

EBITDA*

(Million yen)

28,000

33,720

5,720

20.4

14,078

2. Revision to the full-year consolidated earnings forecast for the fiscal year ending March 31, 2022 (April 1, 2021

- March 31, 2022)

															Profit			Earnings
				Net sales				Operating			Ordinary				attributable to
							profit			profit				owners of			per share
				(Million yen)
							(Million yen)			(Million yen)				parent			(Yen)
													(Million yen)
		Previously announced
		forecast (A)	249,000	30,000	28,000	17,500		306.87
		(Announced on August
	10, 2021)
		Revised forecast (B)	254,700	35,500	33,700	23,500		411.97
		Change (B - A)	5,700	5,500	5,700	6,000			―
		Change (%)	2.3		18.3	20.4	34.3			―
		(Reference) Results for
		the previous fiscal year	223,016		25,392	25,458		17,468		306.38
		(Fiscal year ended
		March 31, 2021)

(Reference)

EBITDA*

(Million yen)

45,000

50,700

5,700

12.7

37,887

1. • EBITDA = Operating profit + Depreciation + Amortization of goodwill
2. Reasons for differences between the consolidated earnings forecasts and results for the first six months of the fiscal year ending March 31, 2022
   With the rapid rise in infections during the second quarter, the number of commissioned PCR tests and demand for high-sensitivity quantitative antigen test reagents and rapid antigen test kits exceeded the Company's initial assumptions. Testing demand associated with large-scale events also exceeded initial assumptions.
3. 
   Consequently, results surpassed the previously announced forecasts.
4. Reasons for revisions to full-year consolidated earnings forecasts

The Company partially revised its second-half assumptions related to COVID-19 testing and expects further contributions to earnings chiefly from the IVD business during the second half. However, the Company expects that expenses will not be in line with its initial assumptions due to the gradual start-up of the first phase operation of the New Central Laboratory. Accordingly, the second half forecasts are unchanged from those announced on August 10.

In light of the results for the first six months which exceeded the forecasts announced on August 10 and the earnings forecasts for the second half, the Company revised its full-year earnings forecasts as stated at 2.

There is no change to the year-end dividend forecast (63 yen per share) as a result of the latest revisions.

The earnings forecasts above have been prepared based on information available as of the date on which this material was announced. Actual results may differ due to a variety of factors going forward.