Financial Statements and Related Announcement::Full Yearly Results

Consolidated Financial Report for the Fiscal Year

Ended October 31, 2021 (Japanese GAAP)

			December 15, 2021
Company name:	PARK24 Co., Ltd.	Stock listing: TSE1
Code number:	4666	URL	: https://www.park24.co.jp/en
Representative:	Koichi Nishikawa, President
Inquiries:	Kenichi Sasaki, Director, Senior Executive Corporate Officer
		TEL	: [phone]
Scheduled day of annual shareholders' meeting		: January 27, 2021
Scheduled day of commencing dividend payment		: -
Scheduled day of submission of a financial report		: January 28, 2021
Preparation of supplementary financial data		: Yes
Information meeting for financial results to be held		: Yes, only in Japanese (For institutional
			investors and analysts)

(Figures are rounded down to the nearest one million yen)

1. Consolidated business results for the fiscal year ended October 31, 2021 (November 1, 2020 - October 31, 2021)

(1) Consolidated Operating Results			(Figures in percentages denote the year-on-year change)
	Net sales		Operating profit	Recurring profit		Profit attributable to
			owners of parent
Fiscal year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
October 31, 2021	251,102	-6.6	-8,039	-	-11,619	-	-11,658	-
October 31, 2020	268,904	-15.3	-14,698	-	-15,168	-	-46,652	-

(Note) Comprehensive income: Fiscal year ended October 31, 2021: -14,685 million yen −%
	Fiscal year ended October 31, 2020: -45,560 million yen −%
	Net income per	Net income per		Ratio of	Ratio of
	share	Return on equity	recurring profit to	operating profit
	share
	after dilution		total assets	to net sales
Fiscal year ended	Yen	Yen	%	%	%
October 31, 2021	-75.45	-	-49.2	-3.8	-3.2
October 31, 2020	-302.00	-	-76.9	-5.2	-5.5

(Reference) Equity in net income of affiliates: Fiscal year ended October 31, 2021: -173 million yen Fiscal year ended October 31, 2020: -297 million yen

(Note) Net income per share after dilution is not shown in the above table, because net income per share was negative although there are residual shares.

(2) Consolidated Financial Position

		Total assets	Net assets	Equity ratio	Net asset per share
		Million yen	Million yen	%	Yen
As of October 31, 2021		319,628	16,432	5.1	105.93
As of October 31, 2020		295,775	31,146	10.5	200.55
(Reference) Shareholders' equity:	As of October 31, 2021: 16,369 million yen
		As of October 31, 2020: 30,982 million yen
(3) Consolidated cash flows
		Cash flows from	Cash flows from	Cash flows from	Cash and cash
		equivalents at end of
		operating activities	investment activities	financing activities
		fiscal year
Fiscal year ended		Million yen	Million yen	Million yen	Million yen
October 31, 2021		34,818	-12,349	13,167	91,795
October 31, 2020		39,400	-21,819	12,886	55,269

2. Dividend status

		Dividend per share			Total	Payout	Ratio of
							ratio	dividends to
							dividends	net assets
							(consolidat
	1Q	2Q	3Q		4Q	A n n u a l	(annual)	(consolidat
								ed)	ed)
Fiscal year ended	Yen	Yen	Yen		Yen	Yen	Million yen	%	%
October 31, 2020	-	0.00	-		0.00	0.00	-	-	-
October 31, 2021	-	0.00	-		0.00	0.00	-	-	-
Fiscal year ending	-	0.00	-		0.00	0.00		-
October 31, 2022(Forecasts)

3. Consolidated Forecasts for the Fiscal Year ending October 31, 2022 (November 1, 2021 - October 31, 2022)

(The percentages indicate the rates of increase or decrease compared with the same period of the previous year)

							Profit attributable	Net income
	Net sales		Operating profit		Recurring profit		to owners of
					per share
							parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Interim	137,000	12.4	5,000	-	2,500	-	0	-	0
Full year	283,000	12.7	13,500	-	8,500	-	2,500	-	16.18

*Notes
(1) Changes in important subsidiaries during the term		:No
New: -- company (	)	Eliminated: -- company (	)
(2) Changes in accounting policies and changes or restatement of accounting estimates
1)	Changes in accounting policies caused by revision of accounting standards	:No
2)	Changes in accounting policies other than 1)		:No
3)	Changes in accounting estimates		:No
4)	Restatement				:No

(3) Number of shares issued (common stock)
1) Number of shares issued at the	As of October 31,	155,048,369	As of October 31,	155,016,369
end of the period (including
2021	Shares	2020	Shares
treasury stock)
2) Number of treasury stock at the	As of October 31,	528,313	As of October 31,	528,203
end of the period	2021	Shares	2020	Shares
3) Average number of shares	Fiscal year ended	154,512,122	Fiscal year ended	154,478,994
during the term (consolidated
October 31, 2021	Shares	October 31, 2020	Shares
cumulative period)

* This financial summary falls outside the scope of audit procedures of certified public accountant or audit corporation

* Explanations and other special notes concerning the appropriate use of business performance forecasts

The consolidated business performance forecasts given in this document are based on assumptions, prospects, and future business plans, currently available on the date this document was published. Actual results may differ from these forecasts for a variety of reasons. For other matters relating to the forecasts, please refer to "1. Qualitative Data, Financial Statements and Other Information".

Accompanying Materials - Contents

1. Qualitative Data, Financial Statements and Other Information …………………………………………………………… 2
2. 1. Qualitative data on the consolidated financial results …………………………………………………………………… 2
   2. Overview of financial position during the fiscal year under review……………………………………………………… 3
   3. Overview of cash flow during the fiscal year under review……………………………………………………………… 4
   4. Outlook for the future…………………………………………………………………………………………………………5
   5. Business risks related to COVID-19………………………………………………………………………………………… 5
3. Status of the PARK24 Group…………………………………………………………………………………………………… 6
4. Management Policy……………………………………………………………………………………………………………… 7
5. 1. Basic management policy…………………………………………………………………………………………………… 7
   2. Targeted management indices……………………………………………………………………………………………… 7
   3. Business environment and medium-term business strategies…………………………………………………………… 7
   4. Business and financial issues to be addressed on priority……………………………………………………………… 8
6. Basic concept of the selection of accounting standards………………………………………………………………… 10
7. Consolidated Financial Statements and Notes………………………………………………………………………………11
8. 1. Consolidated balance sheet ………………………………………………………………………………………………11
   2. Consolidated statements of profit and loss, and comprehensive income………………………………………………13 Consolidated statements of profit and loss………………………………………………………………………………13 Consolidated statement of comprehensive income……………………………………………………………………14
   3. Consolidated Statements of Shareholders' Equity………………………………………………………………………15
   4. Consolidated statement of cash flows………………………………………………………………………………………17
   5. Notes to Consolidated Financial Statements………………………………………………………………………………19 (Note on going concern assumptions)…………………………………………………………………………………………19 (Material matters as base in preparation of consolidated financial statements)…………………………………………19 (Additional Information)…………………………………………………………………………………………………………21 (Notes to consolidated balance sheet)…………………………………………………………………………………………22 (Notes to Consolidated statements of profit and loss)………………………………………………………………………23 (Notes to statement of consolidated cash flow)………………………………………………………………………………24 (Deferred tax accounting)………………………………………………………………………………………………………24 (Segment information)…………………………………………………………………………………………………………25 (Per share information)…………………………………………………………………………………………………………28 (Significant subsequent events)…………………………………………………………………………………………………29

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1. Qualitative Data, Financial Statements and Other Information

1. Qualitative data on the consolidated financial results

During the consolidated fiscal year ended October 31, 2021, the Japanese economy was strongly affected by the spread and prolongation of the COVID-19 pandemic ("COVID19"), and the situation continued to be uncertain, with falling corporate earnings and weakening employment situation. On the other hand, the state of emergency and the "quasi-emergency" state, which had been intermittently issued and applied mainly in major prefectures and cities since January 2021, were lifted at the end of September, and the number of COVID-19 infected cases has remained at a low level, so the normalization of economic activities is expected in the future. Overseas, although lockdowns and restrictions on activities were re-imposed in some countries, business sentiment is improving against the backdrop of widespread vaccination, and an overall recovery is expected in the future.

In this environment, the PARK24 GROUP companies (the "Group") are making efforts to minimize risks to its businesses caused by COVID-19 based on three policies to "protect customer safety," "protect employee safety" and "fulfill our mission as a transportation infrastructure company." The Group is taking steps to improve earnings in its businesses by promoting business restructuring while supplying and developing services that meet the current demand situation.

In terms of financial results, the Group' s businesses were significantly affected in both Japan and abroad by the repeated spread of COVID-19 since the beginning of the consolidated fiscal year under review and the resulting restrictions on the movement of people, but in the latter half of the fourth quarter of the consolidated fiscal year under review, the utilization of services began to recover in all businesses.

As a result, in the consolidated fiscal year under review, the Group posted net sales of 251,102 million yen (-6.6% year on year), an operating loss of 8,039 million yen (operating loss of 14,698 million yen in the previous fiscal year), and a recurring loss of 11,619 million yen (recurring loss of 15,168 million yen in the previous fiscal year), and loss attributable to owners of parent stood at 11,658 million yen (loss attributable to owners of parent of 46,652 million yen in the previous fiscal year).

Results by business segment are as follows:

Parking Business Japan

Since the beginning of the consolidated fiscal year under review, the spread of COVID-19 has led to a decrease in traffic volume, and since January 2021, parking facilities occupancy has remained at a low level due to the impact of the intermittent declaration of the state of emergency and the quasi-emergency state throughout Japan, which has restrained the movement of people. On the other hand, after the lifting of the state of emergency and the quasi- emergency state at the end of September, the movement of people gradually recovered and the occupancy of parking facilities also began to improve.

Under these circumstances, the Group strived to make its business more lean by, at existing parking facilities, continuing to implement operational measures to match current supply and demand, while at the same time responding to unprofitable facilities in COVID-19 by reducing or exempting rents based on the cooperation of land and facility owners, and at new parking facilities by carefully selecting and developing parking facilities that can be profitable even in the current demand environment.

As a result, the numbers of Times PARKING sites and parking spaces managed at the end of the fiscal year under review were 17,879 (-5.5% from the end of the previous fiscal year), and 562,077 (-5.1% from the end of the previous fiscal year). The total number of parking sites and parking spaces managed, including monthly parking and facility management services was 19,362 (-4.9% from the end of the previous fiscal year), and 725,697 (-2.7% from the end of the previous fiscal year). Net sales in this segment (including intersegment sales) were 150,446 million yen (-3.1% year on year), and operating profit was 21,364 million yen (+39.9% year on year).

Parking Business Overseas

Parking Business Overseas was also significantly affected by the spread of COVID-19 in countries where it operated, but has been on a recovery trend since July 2021. Looking at the situation in the major countries in which the Group operates, in Australia, lockdowns and restrictions on activities were implemented sporadically by state and area from the beginning of the fiscal year under review, and although parking facilities occupancy temporarily showed signs of a moderate recovery, in late June, lockdowns and restrictions on activities were implemented in multiple

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areas, and parking facilities occupancy was again restrained. In the UK, lockdowns and restrictions on activities were issued in each region from the beginning of the fiscal year under review, but parking facilities occupancy has been gradually recovering since the restrictions were almost fully lifted in July. On the other hand, in Asian countries, many regions implemented stricter regulations in May due to the spread of COVID-19, and parking facilities occupancy temporarily declined, but has since been recovering, although to various degrees in each region.

Under these circumstances, especially in the UK, which was severely affected by COVID-19, the Group filed a restructuring plan under Part 26A of the UK Companies Act, 2006 in April. While the early approval of the restructuring plan has become difficult due to the counterproposals made during the hearing process, as stated above, the operation of parking facilities is on a recovery trend, and the Group has been able to make some progress in rebuilding the cost structure through the cancellation of unprofitable parking facilities and changes in contract terms. As a result, the Group decided to withdraw the filing on December 15, 2021. In other countries besides the UK, the Group actively negotiated rent reductions and revisions for unprofitable parking facilities, while at the same time reducing management and maintenance costs and improving efficiency through a review of the operational structure. In addition, as part of the business structure reform, the Group promoted the development of "Localized Times PARKING," a short-term contract parking facility adapted to the circumstances of each country overseas, based on the "small, dispersed, and dominant" features of Times PARKING in Japan.

The Group also established GS PARK24 CO., LTD. ("GS PARK24") as a joint venture in Republic of Korea in 2006 to develop and operate 24-hour unmanned hourly parking facilities as part of developing the Times PARKING business model overseas, thereby contributing to the development of parking infrastructure in Republic of Korea. Believing that it is desirable to aim for growth under a local company from now on, the Group transferred all of its shares in GS PARK24 to GS Retail CO., LTD., a joint venture partner, in September. As of the end of the first nine months of the fiscal year under review, the number of parking sites and parking spaces managed by GS PARK24 were 642 and 86,567.

As a result, the numbers of overseas parking sites and parking spaces managed at the end of the fiscal year under review were 2,213 (-21.9% from the end of the previous fiscal year), and 519,419 (-15.1% from the end of the previous fiscal year). The total numbers of parking sites and parking spaces managed worldwide were 21,575 (-7.0% from the end of the previous fiscal year), and 1,317,116 (-8.7% from the end of the previous fiscal year). Net sales in this segment (including intersegment sales) were 38,498 million yen (-14.8% year on year). Operating loss was 16,595 million yen (operating loss of 14,406 million yen in the previous fiscal year).

*The results of parking business overseas for the consolidated fiscal year under review are the results of overseas consolidated subsidiaries for the period from October 1, 2020 to September 30, 2021.

Mobility Business

With regard to Times CAR (combining Car Sharing and Car Rental services), the state of emergency and the quasi- emergency state were intermittently issued from January to September 2021, but demand for the Times CAR service remained strong. Therefore, sales were on a recovery trend toward the end of the fiscal year under review, with a steady increase in the number of members and firm service utilization.

Under these circumstances, as demand for Times CAR service is especially strong in urban areas, the Group concentrated vehicle deployment in urban areas and increased the number of vehicles to capture demand while increasing the occupancy per vehicle. In addition, the Group opened 105 Times CAR sales offices, mainly in Tokyo, and steadily promoted Times CAR deployment to efficiently operate vehicles.

As a result, the total number of vehicles in Mobility Business as a whole was 52,552 units (+17.2% from the end of the previous fiscal year), and the number of Members was 1,725 thousand (+14.5% from the end of the previous fiscal year). Net sales in this segment (including intersegment sales) were 66,807 million yen (-9.1% year on year), and Operating loss was 41 million yen (operating loss of 2,595 million yen in the previous fiscal year).

(2) Overview of financial position during the fiscal year under review

Total assets at the end of the fiscal year under review amounted to 319,628 million yen, an increase of 23,852 million yen from the end of the previous fiscal year. This is primarily a result of an increase in current assets including Cash and deposits of 37,922 million yen, a decrease in non-current assets including machinery, equipment and vehicles of 15,524 million yen.

Total liabilities increased 38,566 million yen from the end of the previous fiscal year, to 303,195 million yen. This is

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