Halows : Non-consolidated Financial Results for the Nine Months Ended November 30, 2021

Non-consolidated Financial Results

for the Nine Months Ended November 30, 2021

[Japanese GAAP]

December 27, 2021

Company name: Halows Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Code number: 2742

URL: https://www.halows.com/en/

Representative: Toshiyuki Sato, President and Chief Executive Officer

Contact: Hidenori Hanaoka, Senior Managing Director and General Manager of Administrative Groups

Phone: [phone]

Scheduled date of filing quarterly securities report: January 12, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on quarterly financial results: Not available

Schedule of quarterly financial results briefing session: Not scheduled

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

1. Non-consolidated Financial Results for the Nine Months Ended November 30, 2021 (March 1, 2021 - November 30, 2021)

(1) Non-consolidated Operating Results (cumulative) (% indicates changes from the previous corresponding period.)

		Operating income*	Operating profit	Ordinary profit	Profit
Nine months ended		Million yen	%	Million yen	%		Million yen	%	Million yen	%
November 30, 2021	121,252	6.6	6,087	11.3		6,093	11.6	4,134	9.9
November 30, 2020	113,712	14.3	5,470	51.6		5,458	51.2	3,761	54.6
		Basic earnings	Diluted earnings
		per share	per share
Nine months ended			Yen		Yen
November 30, 2021			193.59		193.11
November 30, 2020			190.08		189.57

* Operating income is the sum of net sales and operating revenue.

(2) Non-consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of November 30, 2021	84,456	47,597	56.2
As of February 28, 2021	90,845	44,217	48.5

(Reference) Equity: As of November 30, 2021: ¥47,481 million As of February 28, 2021: ¥44,087 million

2. Dividends

			Annual dividends per share
		1st quarter-end	2nd quarter-end		3rd quarter-end		Year-end	Total
		Yen	Yen		Yen		Yen	Yen
Fiscal year ended		-	16.00		-		18.00	34.00
February 28, 2021
Fiscal year ending		-	18.00		-
February 28, 2022
Fiscal year ending
February 28, 2022							18.00	36.00
(Forecast)

(Note 1) Revision to the forecast for dividends announced most recently: None

(Note 2) The year-end dividend of 18 yen for the fiscal year ended February 28, 2021 includes a commemorative dividend of 2 yen for achieving operating income of 150 billion yen.

3. Non-consolidated Financial Results Forecasts for the Fiscal Year Ending February 28, 2022 (March 1, 2021 - February 28, 2022)

(% indicates changes from the previous corresponding period.)

	Operating income	Operating profit	Ordinary profit	Profit		Basic earnings
		per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	156,800	3.2	7,330	(3.6)	7,300	(3.7)	4,920	(10.5)	230.36

(Note) Revision to the financial results forecasts announced most recently: None

* Notes:

1. Accounting methods adopted particularly for the preparation of quarterly non-consolidated financial statements: Yes
   (Note) For details, please see "2. Quarterly Non-consolidated Financial Statements and Principal Notes (3) Notes to Quarterly Non-consolidated Financial Statements (Accounting methods adopted particularly for the preparation of quarterly non-consolidated financial statements)" on page 6 of the attached documents (available in Japanese only).
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: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
4. Total number of issued and outstanding shares (common shares)
5. 1. Total number of issued and outstanding shares at the end of the period (including treasury shares):

As of November 30, 2021:	21,423,900 shares
As of February 28, 2021:	21,423,900 shares
2) Total number of treasury shares at the end of the period:
As of November 30, 2021:	62,317 shares
As of February 28, 2021:	74,617 shares

3) Average number of shares during the period (cumulative from the beginning of the fiscal year):

Nine months ended November 30, 2021:	21,357,423 shares
Nine months ended November 30, 2020:	19,790,027 shares

• These quarterly non-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 forecasts and other notes
• • The financial results forecasts and other forward-looking statements contained in this document are based on the information available to the Company and certain assumptions deemed to be reasonable as of the date of publication of this document, and actual results may differ significantly due to various factors. For the assumptions that the financial results forecasts are based on and cautionary notes on the use of the forecasts, please see "1. Qualitative Information on Quarterly Financial Results (3) Explanation of Non-consolidated Financial Results Forecasts and Other Forward-looking Information" on page 2 of the attached documents (available in Japanese only).

2. Quarterly Non-consolidated Financial Statements and Principal Notes

(1) Quarterly Non-consolidated Balance Sheets

			(Million yen)
		As of February 28, 2021	As of November 30, 2021
Assets
Current assets
Cash and deposits		21,568	12,342
Accounts receivable - trade	544	739
Merchandise		3,185	3,527
Supplies	4	4
Other		2,567	2,307
Allowance for doubtful accounts	(3)	(3)
Total current assets		27,866	18,918
Non-current assets
Property, plant and equipment
Buildings and structures	49,567	53,042
Accumulated depreciation		(19,922)	(21,333)
Buildings and structures, net	29,645	31,708
Land		17,247	18,108
Other	12,359	12,678
Accumulated depreciation		(7,458)	(8,003)
Other, net	4,901	4,674
Total property, plant and equipment		51,795	54,491
Intangible assets
Other		389	323
Total intangible assets	389	323
Investments and other assets
Leasehold and guarantee deposits	2,743	2,751
Construction assistance fund receivables		1,478	1,391
Long-term prepaid expenses	4,833	4,835
Other		1,739	1,742
Total investments and other assets	10,794	10,721
Total non-current assets		62,978	65,537
Total assets		90,845	84,456

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			(Million yen)
		As of February 28, 2021	As of November 30, 2021
Liabilities
Current liabilities
Accounts payable - trade		14,868	8,833
Current portion of long-term borrowings	3,622	3,334
Lease obligations		612	525
Accounts payable - other	2,077	1,049
Accrued expenses		1,403	1,849
Advances received	1,694	2,028
Income taxes payable		1,663	832
Provision for point card certificates	570	621
Other		1,266	1,211
Total current liabilities	27,779	20,285
Non-current liabilities

Long-term borrowings

Lease obligations

Provision for retirement benefits

Asset retirement obligations

Deposits for construction assistance fund receivables

Long-term leasehold and guarantee deposits received

Long-term unearned revenue

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

11,718	9,266
935		830
704	741
1,408		1,486
953	1,014
1,872		2,015
928	909
328		308
18,849	16,572
46,628		36,858

Share capital	5,430	5,430
Capital surplus		5,374	5,379
Retained earnings	33,415	36,781
Treasury shares		(133)	(111)
Total shareholders' equity	44,086	47,480
Valuation and translation adjustments
Valuation difference on available-for-sale securities	0	0
Total valuation and translation adjustments		0	0
Share acquisition rights	129	116
Total net assets		44,217	47,597
Total liabilities and net assets		90,845	84,456

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