NPC Incorporated : Announcement on the Differences between Business Forecasts and Results for FY2021

October 12, 2021

To all persons concerned:

NPC Incorporated

1-7-15Higashi-ueno,Taito-ku

Tokyo 110-0015, Japan

Masafumi Ito, President & CEO

Contact: Kazuo Hirosawa, Senior Managing Director

TEL[phone] (TSE 6255)

ANNOUNCEMENT ON THE DIFFERENCES BETWEEN BUSINESS FORECASTS AND RESULTS FOR FY2021

NPC Incorporated ("the Company") hereby notifies the differences between the consolidated and non-consolidated business forecasts announced on April 12, 2021, and the results for the full fiscal year 2021.

Description

1. Differences between business forecasts and results for the FY 2021

Differences between consolidated business forecasts and results for the FY2021 ended August 31, 2021 (September 1, 2020 through August 31, 2021)

									(Million yen)
					Operating	Ordinary		Net income	Net income
			Sales			attributable to
				income	income		per share (yen)
						owners of the parent
	Previous forecasts (A)	5,539	515	492	328	15.01
	Results (B)	5,217	691	670	411	18.76
	Amount of increase/decrease (B-A)	(322)	176	178	83	-
	Change (%)	(5.8)	34.2	36.2	25.3	-
	[Reference] Full year FY2020	7,938	879	884	749	34.10
Differences between non-consolidated business forecasts and results for the FY2021 ended August 31, 2021
(September 1, 2020 through August 31, 2021)
									(Million yen)
			Sales		Operating	Ordinary		Net income	Net income
				income	income		per share (yen)
	Previous forecasts (A)		5,468		500	477		322	14.71
	Results (B)		5,134		661	644		395	18.04
	Amount of increase/decrease (B-A)		(334)		161	167		73	-
	Change (%)		(6.1)		32.2	35.0		22.7	-
	[Reference] Full year FY2020		7,877		815	804		684	31.17

[REASONS FOR THE DIFFERENCES]

In the machinery business, sales booking of some projects shifted to the next fiscal year because of a change in schedule made by an overseas customer, etc. Therefore, the sales were lower than the forecast. Operating

income and ordinary income exceeded the forecast due to cost reduction of on-site work, etc. and decrease in selling, general and administrative expenses such as salaries, research and development expenses, and travel and transportation expenses. Net income attributable to owners of the parent surpassed the forecast despite booking of federal tax and dues and reversal of deferred tax assets. The reasons for the difference between non-consolidated business forecasts and results are the same as those for difference between consolidated business forecasts and results.

END