OUTSOURCING : Summary of Financial Results 2021

Disclaimer: This document is a partial translation of the Japanese original and does not constitute any guarantee, and the Company will not compensate for any loss or damage resulting from actions taken based on this document. If there is any discrepancy between the Japanese original and this document, the Japanese original prevails.

Summary of Financial Statements for the Fiscal Year Ended December 31, 2021 [IFRS]

(Consolidated）

February 18, 2022

Company name:

OUTSOURCING Inc.

Stock exchange listing: Tokyo 1st Section

Securities code:

2427

URL https://www.outsourcing.co.jp/en/

Representative:

Haruhiko Doi, Chairman and CEO

Contact:

Masashi Umehara, Managing Executive Officer and Head of Corporate Management Division

TEL [phone]

Scheduled date of the general shareholders' meeting:

March 29, 2022

Scheduled date to commence dividend payments:

March 30, 2022

Annual statements filing date (as planned):

March 30, 2022

Supplemental material created for annual results:

Yes

Briefing held for annual results:

Yes (for analysts and institutional investors)

(Figures less than one million yen are rounded)

1. Consolidated Financial Results for Fiscal Year 2021 (From January 1, 2021 to December 31, 2021)

a. Consolidated Financial Results

(% indicates change

from the previous fiscal year)

Profit attributable to

Total comprehensive

Revenue

Operating profit

Profit before tax

Profit for the year

owners of the

income

Company

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Million yen

%

FY2021

569,325

55.9

24,186

82.1

12,003

55.1

2,204

(17.3)

832

(56.5)

7,578

99.9

FY2020

365,135

1.2

13,282

(3.7)

7,741

(35.3)

2,667

(67.0)

1,910

(73.9)

3,791

(50.7)

Basic earnings

Diluted earnings

Ratio of profit to equity

Ratio of profit before tax

Ratio of operating profit

attributable to owners of

per share

per share

to total assets

to revenue

the Company

Yen

Yen

%

%

%

FY2021

6.60

6.60

1.3

3.7

4.2

FY2020

15.17

15.17

3.2

2.9

3.6

(Reference) Equity in earnings (or losses) of affiliates:

FY2021:

97 million yen

FY2020: 73 million yen

(Notes)

As the provisional accounting process related to business combination was finalized in FY2021 Q3 and Q4, 2021, the consolidated financial

statements for FY2020 were retrospectively adjusted.

b. Consolidated Financial Positions

Equity attributable

Ratio of equity attributable

Equity attributable

Total assets

Total equity

to owners of the Company

to owners of the Company

to owners of the Company

to total assets

per share

Million yen

Million yen

Million yen

%

Yen

FY2021

350,934

72,464

65,957

18.8

523.77

FY2020

302,901

66,446

60,448

20.0

480.09

(Notes)

As the provisional accounting process related to business combination was finalized in FY2021 Q3 and Q4, 2021, the consolidated financial

statements for FY2020 were retrospectively adjusted.

c. Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash equivalents

operating activities

investing activities

financing activities

at the end of year

Million yen

Million yen

Million yen

Million yen

FY2021

28,872

(38,373)

(25,985)

48,334

FY2020

22,498

(8,720)

26,905

81,720

2. Dividends

Annual cash dividends per share

Ratio of total amount of

Total

Payout ratio

dividends to equity attributable

Q1

Q2

Q3

Year-end

Annual

dividends

(consolidated)

to owners of the Company

(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

FY2020

－

0.00

－

10.00

10.00

1,259

65.0

2.1

FY2021

－

0.00

－

31.00

31.00

3,904

469.7

6.2

FY2022 (Forecast)

－

0.00

－

45.00

45.00

30.6

(% indicates change from the previous fiscal year)

3. Forecast of Consolidated Financial Results for Fiscal Year 2022 (From January 1, 2022 to December 31, 2022)

						(% indicates change from the	corresponding period of	the previous	fiscal year)
										Profit attributable to	Basic earnings
	Revenue		Operating profit	Profit before tax	Profit for the year	owners of the
			per share
										Company
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Million yen		%		Yen
Half-year	323,000		22.1	10,500	(9.7)	9,300	(14.9)	5,600	(13.7)	5,200		(8.2)		41.30
Full-year	695,000		22.1	32,000	32.3	29,600	146.6	19,300	775.5	18,500		－		146.93

(Notes)

1. Significant changes in subsidiaries during this period (changes in subsidiaries that cause changes in the scope of consolidation): No
2. Changes in accounting policies and accounting estimates
3. 1. Changes in accounting policies required by IFRS: Yes
   2. Changes in accounting policies other than IFRS requirements: Yes
   3. Changes in accounting estimates: No

1. Number of shares issued and outstanding (common stock)
2. 1. Number of shares issued and outstanding at the end of year (including treasury stock)
   2. Number of treasury stock at the end of year
   3. Average number of shares issued and outstanding

FY2021

FY2021

FY2021

125,926,800	FY2020	125,909,300
490	FY2020	490
125,919,933	FY2020	125,877,205

(Reference) Overview of Non-Consolidated Financial Results

Non-Consolidated Financial Results for Fiscal Year 2021 (From January 1, 2021 to December 31, 2021) 1. Non-Consolidated Financial Results

	Net	sales				Operating profit				Ordinary	profit			Profit for	the year
	Million yen	%			Million yen		%			Million yen		%	Million yen		%
FY2021		48,489	16.6			(3,093)		－				3,447		40.6		2,798		6.3
FY2020		41,599	(6.5)			(3,292)		－				2,452		(40.1)		2,634		(26.3)
	Earnings per share		Diluted earnings per share
			Yen				Yen
FY2021			22.22				－
FY2020			20.92				20.92
2. Non-Consolidated Financial Positions
	Total	assets				Net assets				Equity	ratio			Net assets	per share
		Million yen		Million yen					%					Yen
FY2021			178,093				58,247					32.7					462.54
FY2020			163,493				56,361					34.5					447.63
(Reference) Owner's equity:	FY2021:	58,247 million yen	FY2020:	56,361 million yen

Non-Consolidated Financial Results for the Fiscal Year Ended December 31, 2021 and 2020>

In the fiscal year ended December 2021, as the serious environment in business sentiment caused by COVID-19 has been recovering, net sales increased from the previous year, due to a recovery trend in major clients such as leading manufacturers. As a result, each operating profit increased compared to the previous fiscal year.

(Notes)

• This summary of financial statements is not subject to audit procedures by certified public accountants or an auditing firm.
• Statement regarding the proper use of financial forecasts and other special remarks

(Caution concerning forward-looking statements)

The forward-looking statements including financial forecasts in this summary are based on the information currently available to the Company and on assumptions believed to be reasonable by the management of the Company. These statements do not guarantee future performance of the Company, and various factors may cause the actual results to differ significantly from the forecasts.

Table of Contents for Appendix

Consolidated Financial Statements	2
(1)	Consolidated Statement of Financial Position	2
(2)	Consolidated Statement of Profit or Loss	4
(3)	Consolidated Statement of Cash Flows	5
(4)	Notes to Consolidated Financial Statements	7
	[Segment Information]	7

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Consolidated Financial Statements

(1) Consolidated Statement of Financial Position

			(Millions of yen)
	As of December 31, 2020		As of December 31, 2021
Assets
Current assets
Cash and cash equivalents	81,720	48,334
Trade and other receivables	55,905	88,061
Inventories	1,743	2,658
Other financial assets	11,076	14,652
Other current assets	9,845		13,493
Total current assets	160,289	167,198
Non-current assets
Property, plant, and equipment	9,732	11,611
Right-of-use assets	17,491	21,362
Goodwill	60,886	86,262
Intangible assets	24,634	35,481
Investments accounted for using equity method	2,231	221
Other financial assets	18,781	21,508
Other non-current assets	3,747	1,849
Deferred tax assets	5,111		5,442
Total non-current assets	142,613		183,736
Total assets	302,901	350,934

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			(Millions of yen)
	As of December 31, 2020		As of December 31, 2021
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables	41,365	62,398
Bonds and borrowings	68,050	88,396
Lease liabilities	16,791	20,395
Other financial liabilities	4,607	9,383
Income taxes payable	4,258	4,654
Other current liabilities	16,899		27,286
Total current liabilities	151,970	212,512
Non-current liabilities
Bonds and borrowings	43,213	15,645
Lease liabilities	20,556	27,157
Other financial liabilities	5,845	8,321
Retirement benefit liability	5,403	3,309
Provisions	1,113	1,212
Other non-current liabilities	581	735
Deferred tax liabilities	7,775		9,579
Total non-current liabilities	84,486		65,959
Total liabilities	236,456	278,471
Equity
Share capital	25,214	25,230
Capital surplus	26,647	26,663
Treasury shares	(0)	(0)
Other capital surplus	(13,456)	(12,887)
Other components of equity	(1,187)	4,018
Retained earnings	23,229		22,934
Total equity attributable to owners of the Company	60,448	65,957
Non-controlling interests	5,998		6,507
Total equity	66,446		72,464
Total liabilities and equity	302,901	350,934

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