OUTSOURCING : Summary of Financial Results for the third quarter 2021

(% indicates change from the corresponding quarter of the previous year)

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 Third Quarter of the Fiscal Year

Ending December 31, 2021 [IFRS] (Consolidated）

		January 14, 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:	Kazuhiko Suzuki, Executive Vice President and Executive General Manager in Charge of Business
	Management Division
	TEL [phone]
Quarterly statements filing date (as planned):	January 14, 2022
Scheduled date to commence dividend payments:	-
Supplemental material created for quarterly results:	Yes
Briefing held for quarterly results:	Yes

(Figures less than one million yen are rounded)

1. Consolidated Financial Results for the Third Quarter of Fiscal Year 2021 (From January 1, 2021 to September 30, 2021) a. Consolidated Financial Results (Cumulative)

																							Profit attributable to		Total comprehensive
					Revenue					Operating profit	Profit before tax	Profit for the period	owners of the
										income
																							Company
					Million yen		%		Million yen		%	Million yen	%	Million yen	%	Million yen		%		Million yen		%
		FY2021 Q3	412,068		57.0		17,889		91.6	12,192	82.2	5,675	58.3	4,533		37.7		9,210		314.7
		FY2020 Q3	262,414		(1.9)		9,336		(6.6)	6,692	(3.0)	3,585	(6.7)	3,293		(1.0)		2,221		118.4
					Basic earnings		Diluted earnings
					per share					per share
								Yen						Yen
	FY2021 Q3						36.00							36.00
	FY2020 Q3						26.16							26.16
	(Notes)	As the provisional accounting process related to business combinations was finalized in FY2020 Q4, the condensed consolidated financial statements
			for FY2020 Q3 were retrospectively adjusted.
		b. Consolidated Financial Positions
																	Equity attributable to		Ratio of equity attributable				Equity attributable to
					Total assets			Total equity			to owners of the Company			owners of the Company
								owners of the Company
																			to total assets					per share
							Million yen					Million yen			Million yen				%						Yen
	FY2021 Q3						350,767						73,189			67,753				19.3						538.03
	FY2020						300,862						65,596			60,468				20.1						480.25
	(Notes)	As the provisional accounting process related to business combinations was finalized in FY2021 Q3, the consolidated financial statements for FY2020
			were retrospectively adjusted.
	2. Dividends
																	Annual cash dividends per share
								Q1						Q2		Q3			Year-end					Annual
												Yen				Yen		Yen			Yen					Yen
	FY2020										－			0.00				－		10.00					10.00
	FY2021										－			0.00				－
	FY2021 (Forecast)																		31.00					31.00
	(Notes)	Correction of dividend forecast from the most recent dividend forecast: No

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

								(% 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
	Full-year		528,000		44.6	25,100	88.4	21,400	175.0	14,200	427.0	12,800		562.9		101.66
(Notes)	Correction of financial forecast from the most recent financial forecast: No

(Notes)

1. Significant changes in subsidiaries during this period (changes in specified 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: No
   2. Changes in accounting policies other than (a): Yes
   3. Changes in accounting estimates: No
4. Number of issued shares (common stock)

(a)	Number of issued shares at the end of period	FY2021 Q3	125,926,800	FY2020	125,909,300
	(including treasury stock)
(b)	Number of treasury stock at the end of period	FY2021 Q3	490	FY2020	490
(c)	Average number of issued shares (cumulative up
FY2021 Q3	125,917,784	FY2020 Q3	125,866,593
	through the period)

(Notes)

• This summary of quarterly financial statements is not subject to quarterly review 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 Company management. 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

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

1

Condensed Consolidated Financial Statements

1. Condensed Consolidated Statement of Financial Position

			(Millions of yen)
	As of December 31, 2020		As of September 30, 2021
Assets
Current assets
Cash and cash equivalents	81,720	52,002
Trade and other receivables	55,610	87,250
Inventories	1,743	2,556
Other financial assets	11,076	13,717
Other current assets	9,845		13,819
Total current assets	159,994	169,343
Non-current assets
Property, plant, and equipment	9,732	11,301
Right-of-use assets	17,491	21,389
Goodwill	62,556	98,351
Intangible assets	21,082	20,211
Investments accounted for using equity method	2,231	281
Other financial assets	18,797	20,988
Other non-current assets	3,747	3,337
Deferred tax assets	5,233		5,567
Total non-current assets	140,869		181,424
Total assets	300,862	350,767

2

			(Millions of yen)
	As of December 31, 2020		As of September 30, 2021
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables	41,365	60,714
Bonds and borrowings	68,050	55,896
Lease liabilities	16,791	20,044
Other financial liabilities	4,607	6,978
Income taxes payable	4,258	2,939
Other current liabilities	16,899		25,668
Total current liabilities	151,970	172,238
Non-current liabilities
Bonds and borrowings	43,213	61,845
Lease liabilities	20,556	26,560
Other financial liabilities	5,845	4,456
Retirement benefit liability	5,403	5,014
Provisions	1,113	1,165
Other non-current liabilities	581	629
Deferred tax liabilities	6,586		5,671
Total non-current liabilities	83,296		105,340
Total liabilities	235,266	277,578
Equity
Share capital	25,214	25,230
Capital surplus	26,647	26,663
Treasury shares	(0)	(0)
Other capital surplus	(13,456)	(12,886)
Other components of equity	(1,187)	1,948
Retained earnings	23,249		26,798
Total equity attributable to owners of the Company	60,468	67,753
Non-controlling interests	5,128		5,436
Total equity	65,596		73,189
Total liabilities and equity	300,862	350,767

3