Halows : Non-consolidated Financial Resultsfor the Fiscal Year Ended February 28, 2022

Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2022

[Japanese GAAP]

April 12, 2022

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 general shareholders' meeting: May 26, 2022 Scheduled date of commencing dividend payments: May 27, 2022 Scheduled date of filing securities report: May 27, 2022

Availability of supplementary explanatory materials on annual financial results: Available

Schedule of annual financial results briefing session: Scheduled (for institutional investors and analysts)

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

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

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

Operating income*	Operating profit	Ordinary profit	Profit
Fiscal year ended February 28, 2022 February 28, 2021	Million yen % 163,374 7.5 151,943 12.8	Million yen % 8,688 14.3 7,604 43.7	Million yen % 8,713 14.9 7,582 42.7	Million yen % 5,932 7.9 5,498 55.1

Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
Fiscal year ended February 28, 2022 February 28, 2021	Yen 277.77 276.84	Yen 277.08 276.08	% 12.7 14.0	% 9.8 9.0	% 5.5 5.1

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

(Reference) Equity in earnings of affiliated companies: Fiscal year ended February 28, 2022: ¥－ million Fiscal year ended February 28, 2021: ¥－ million

(2) Non-consolidated Financial Position

Total assets	Net assets	Equity ratio	Net assets per share
As of February 28, 2022 As of February 28, 2021	Million yen 87,266 90,845	Million yen 49,400 44,217	% 56.5 48.5	Yen 2,306.90 2,065.07

(Reference) Equity: As of February 28, 2022: ¥49,279 million

As of February 28, 2021: ¥44,087 million

(3) Non-consolidated Cash Flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
Fiscal year ended February 28, 2022 February 28, 2021	Million yen 3,280 11,589	Million yen (7,819) (7,560)	Million yen (4,047) 4,684	Million yen 14,663 23,249

*Notes:

• (1) Changes in accounting policies, changes in accounting estimates and retrospective restatement

  • 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

• (2) Total number of issued and outstanding shares (common shares)

  • 1) Total number of issued and outstanding shares at the end of the year (including treasury shares):

    As of February 28, 2022: 21,423,900

    As of February 28, 2021: 21,423,900

  • 2) Total number of treasury shares at the end of the year:

    As of February 28, 2022: 62,317 As of February 28, 2021: 74,617

  • 3) Average number of shares during the year:

Year ended February 28, 2022: 21,358,449 Year ended February 28, 2021: 19,861,828

*These non-consolidated financial results are outside the scope of audit 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 "Future Outlook" on page 3 of the attached documents.

• - The Company plans to hold a financial results briefing session for institutional investors and analysts on April 14, 2022. Materials for the session will be posted on the Company's website immediately after the session.