Ricksoft : ［Delayed］Summary of Consolidated Financial Results for the Fiscal Year Ended February 2022 (Japanese GAAP)

Summary of Consolidated Financial Results for the Fiscal Year Ended February 2022

(Japanese GAAP)

April 14, 2022

Securities code:	4429
Representative:	Hiroshi Ohnuki, CEO
Contact for inquiries:	Mari Kato, Board Member	Tel: [phone]
Scheduled date for start of －
dividend payment:

Listing exchange: Tokyo Stock Exchange URL:https://www.ricksoft.jp/

Name of listed company: Ricksoft Co., Ltd.

Scheduled date for next regular general meeting of shareholders:

Scheduled date for submission of periodic securities report:

May 26, 2022

May 26, 2022

Supplementary materials on financial results: YesFinancial results briefing session:

Yes (for institutional investors and analysts)

(Amounts are rounded down to the nearest million yen)

1. Consolidated results for fiscal year ended February 2022 (from March 1, 2021 to February 28, 2022)

(1) Consolidated operating results (% figures show the rate of increase (decrease) compared with the previous fiscal year)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Fiscal year ended Feb. 2022 Fiscal year ended Feb. 2021	million yen 4,308 4,431	% (2.8) 43.5	million yen 437 601	% (27.3) 49.6	million yen 450 601	% (25.1) 49.3	million yen 326 445	% (26.7) 54.3

(Note) Comprehensive income

Fiscal year ended Feb. 2022

331 million yen (-25.5 %)Fiscal year ended Feb. 2021

444 million yen (54.1%)

Basic earnings per share	Diluted earnings per share	Return on equity	Return on assets	Operating profit ratio
Fiscal year ended Feb. 2022 Fiscal year ended Feb. 2021	yen 74.54 103.57	yen 72.94 99.05	% 15.7 26.7	% 14.8 23.6	% 10.2 13.6

(Reference) Equity gains (losses) of affiliated companies

Fiscal year ended Feb. 2022

- million yenFiscal year ended Feb. 2021

- million yen

(2) Consolidated financial position

Total assets	Net assets	Equity-to-asset ratio	Net assets per share
Fiscal year ended Feb. 2022 Fiscal year ended Feb. 2021	million yen 2,932 3,168	million yen 2,255 1,900	% 76.9 60.0	yen 507.15 436.55

(Reference) Equity

Fiscal year ended Feb. 2022

(3) Consolidated cash flows

2,255 million yen

Fiscal year ended Feb. 2021

1,900 million yen

Net cash provided by (used in) operating activities	Net cash provided by (used in) investing activities	Net cash provided by (used in) financing activities	Cash and cash equivalents at end of period
Fiscal year ended Feb. 2022 Fiscal year ended Feb. 2021	million yen 161 477	million yen (46) (8)	million yen 22 18	million yen 2,088 1,944

2. Dividends

Annual dividends	Total dividends (Total)	Payout ratio (Consolidated)	Net assets to dividend ratio (Consolidated)
End of first quarter	End of second quarter	End of third quarter	Year-end	Total
Fiscal year ended Feb. 2021 Fiscal year ended Feb. 2022	yen - -	yen 0.00 0.00	yen - -	yen 0.00 0.00	yen 0.00 0.00	million yen - -	% - -	% - -
Fiscal year ending Feb. 2023 (forecast)	-	0.00	-	0.00	0.00	-

3. Consolidated earnings forecast for fiscal year ending February 2023 (from March 1, 2022 to February 28, 2023)

(% figures show the rate of increase (decrease) compared with the previous fiscal year)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Basic earnings per share
Full fiscal year	million yen 5,001	% 16.1	million yen 451	% 3.1	million yen 451	% 0.2	million yen 308	% (5.6)	yen 69.15

*Explanatory notes

(1) Changes in significant subsidiaries during fiscal year

: No

(Changes in specified subsidiaries resulting in change in scope of consolidation) Newly included - companies (Company name)

Excluded - companies (Company name)

(2) Changes in accounting policies, changes in accounting estimates, and restatement

1) Changes in accounting policies due to amendment of accounting standards, etc. : No

2)	Changes in accounting policies other than 1)	: No
3)	Changes in accounting estimates	: No
4)	Restatement	: No

(3) Number of shares issued and outstanding (common shares)

• 1) Number of shares issued and outstanding (including treasury shares) at end of fiscal year

• 2) Number of treasury shares at end of fiscal year

• 3) Average number of shares during fiscal year

  Fiscal year ended Feb. 2022	4,446,900 shares	Fiscal year ended Feb. 2021	4,354,500 shares
  Fiscal year ended Feb. 2022	132 shares	Fiscal year ended Feb. 2021	68 shares
  Fiscal year ended Feb. 2022	4,385,820 shares	Fiscal year ended Feb. 2021	4,303,618 shares

  *This summary of financial results is not subject to audit procedures by a public accountant or audit corporation. *Explanation regarding appropriate use of earnings forecasts, and other notes

  (Notes on forward-looking statements)

  The financial outlook and other forward-looking statements contained in this document are based on information currently available to and certain assumptions that are thought to be reasonable by the Company. Accordingly, such statements should not be construed as a guarantee of achieving the results by the Company. Actual financial results and the like may differ materially due to various factors. For the conditions forming the assumptions on which financial forecasts are based and notes on financial forecasts, etc., please refer to the explanations on the forecast information described in "1. Overview of Operating Results, Etc.; (4) Future Outlook" on page 4.

  (Concerning the change in the disclosure time of "Matters Related to Business Plans and Growth Potential")

  We stated in the "Material related to Business Plans and Growth Potential" disclosed on November 22, 2021, that the updated content would be disclosed at the full-year financial results briefing. However, we have changed the timing of the disclosure to May 2022.

Table of Contents of the Attachment

1. Overview of Operating Results, Etc.........................................................................................................................................2

(1) Overview of Operating Results for the Fiscal Year Under Review....................................................................................2

(2) Overview of Financial Position for the Fiscal Year Under Review....................................................................................3

(3) Overview of Cash Flows for the Fiscal Year Under Review..............................................................................................3

(4) Future Outlook ................................................................................................................................................................ 4

• 2. Basic Policy Regarding Selection of Accounting Standards ...................................................................................................... 4

• 3. Consolidated Financial Statements and Significant Notes Thereto ......................................................................................... 5

  • (1) Consolidated Balance Sheet ............................................................................................................................................ 5

  • (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ........................................ 7

  • (3) Consolidated Statement of Changes in Equity ................................................................................................................. 9

  • (4) Consolidated Statement of Cash Flows ......................................................................................................................... 10

  • (5) Notes to Consolidated Financial Statements ................................................................................................................. 11

    (Notes on Going Concern Assumption) ......................................................................................................................... 11

    (Segment Information, Etc.) .......................................................................................................................................... 11

    (Per Share Information) ................................................................................................................................................ 13

    (Significant Subsequent Events) .................................................................................................................................... 13

1. Overview of Operating Results, Etc.

(1) Overview of Operating Results for the Fiscal Year Under Review

In the fiscal year ended February 2022, the Japanese economy saw supply constraints, including shortage of semiconductors which became apparent in fall 2020 and after and shortage of parts due to the spread of COVID-19 infection in Southeast Asia in summer 2021, in addition to the halting of economic and social activities due to restrictions on people's activities and other self-restraint in line with the declaration of a state of emergency and such. As these hampered exports and consumer spending, the economic recovery remained moderate until September 2021. That said, however, after the state of emergency and such were lifted in all prefectures in October, the level of economic and social activities allowed has been raised in stages and the economy is showing signs of recovery. Looking at the financial results of listed companies for the April-December period of 2021, profit increased year on year in both manufacturing and non-manufacturing. Concerning the world economy, real GDP growth rate for the October-December quarter of 2021 increased 6.9% quarter on quarter in the U.S. with significant contribution of inventory investment, surpassing the market forecast. On the other hand, in China, partly due to the restrained economic activities caused by stagnant real estate investment and restrictions on people's activities based on the zero-COVID policy, real GDP growth rate for the fourth quarter of 2021 stood at 4.0%, indicating slower growth compared with the third quarter, although the growth rate for 2021 was up 8.1% from the previous year. Also in the Euro area, because of the slowdown in consumption caused by the spread of COVID-19 and energy price hikes, as well as the delay in recovery of automobile production due to limited supplies in addition to other factors, real GDP growth rate was lower than the market forecast, standing at 0.3% quarter on quarter. There remains a downside risk in the economy resulting from the surge in the number of COVID-19 cases due to emergence of a new Omicron variant going forward as well.

Furthermore, excessive adjustment of asset prices in line with the rise in the U.S. long-term interest rates, slowdown of the Chinese economy due to an increase of non-performing loans and the impact of Russia's invasion of Ukraine on the world economy also present risks. Therefore, it is necessary to continue to carefully watch the effects of fluctuations in financial and capital markets and such.

In the information services sector to which the Ricksoft Group belongs, the trend to promote DX (digital transformation) to improve corporate value and competitiveness has continued. Also combined with the establishment of the Digital Agency by the government, demand for IT investment utilizing advanced technologies such as IoT, cloud, RPA (Robotic Process Automation) and FinTech has continued to remain strong. DX has advanced rapidly under the COVID-19 pandemic, and new movements and behavioral changes such as remote work, contactless, cloud, mobility, AI/ML, and cybersecurity have taken hold in companies. In response to these changes, companies are more likely to work on further transformation to establish new business models and competitive advantages.

In connection with this growing need for greater business flexibility and efficiency, it is expected that next-generation infrastructure and software development innovations will become IT trends and that there will be an increase in demand for infrastructure with speed and scalable flexibility for real-time data collection and cloud utilization.

Under these circumstances, the Ricksoft Group has been reshaping and communicating the possibilities of finished goods and services to solve problems and concerns caused by changes in customer needs and corporate awareness. The use of these by customers has been robust.

• • Began providing a service that allows for use of tools centering on Atlassian products provided by Ricksoft in a secure environment by integrating "Flexible InterConnect," a next-generation Internet connection service provided by NTT Communications Corporation and "RickCloud," a full-managed service provided by Ricksoft (July 2021)

• • Released "Cadre," an application that collects and visualizes data accumulated in Jira Software and Confluence with Tableau (September 2021)

• • Released "Pochitto DX," which realizes easy streamlining of operations, as the first installment of "D-Accel," a platform providing DX solutions (September 2021)

• • Certified as Gold Partner in the "Transformation Partners" category in the partner program of Scaled Agile, Inc. (June 2021)

• • Ricksoft, Inc., a subsidiary, was upgraded to Gold Partner in the "Marketplace Partner Program" of Atlassian (August 2021) and then to Platinum Partner (February 2022)

• • Concluded a basic agreement for business partnership with TDC SOFT Inc. for business development related to "Scaled Agile

Framework," a framework that leads the world in the business agility field (May 2021)

• • Concluded a basic agreement on the joint development of low-code tools for agile management with BlueMeme Inc. (October 2021)

In addition, by promoting DX and implementation of work-style reform also within the company, we have promoted in-house restructuring to adapt to the situations with an aim to further increase productivity, cut costs, etc. In recognition of this initiative, in October 2021, we were certified as a "DX Certified Business Operator" based on the DX certification program established by the Ministry of Economy, Trade and Industry. Going forward, our officers and employees will continue to make a unified effort to promote DX as well as to cultivate existing customers and increase orders by gaining new customers.

As a result, for the fiscal year under review, the Company recorded net sales of 4,308,223 thousand yen (down 2.8%), operating profit of 437,485 thousand yen (down 27.3%), ordinary profit of 450,242 thousand yen (down 25.1%), and profit attributable to owners of parent of 326,934 thousand yen (down 26.7%), all on a year-on-year basis.

Description of segment information is omitted as the Company has a single business segment of tool solution business.

(2) Overview of Financial Position for the Fiscal Year Under Review

(Assets)

Total assets at the end of the fiscal year under review decreased by 236,689 thousand yen from the end of the previous fiscal year to 2,932,229 thousand yen (down 7.5% year on year). This was mainly attributable to cash and deposits increasing by 144,888 thousand yen while accounts receivable - trade decreasing by 407,476 thousand yen.

(Liabilities)

Liabilities at the end of the fiscal year under review decreased by 590,940 thousand yen from the end of the previous fiscal year to 677,034 thousand yen (down 46.6% year on year). This was mainly attributable to accounts payable - trade decreasing by 407,825 thousand yen and income taxes payable decreasing by 86,491 thousand yen.

(Net assets)

Net assets at the end of the fiscal year under review increased by 354,250 thousand yen from the end of the previous fiscal year to 2,255,194 thousand yen (up 18.6% year on year). This was mainly attributable to retained earnings increasing by 326,934 thousand yen due to recording of profit attributable to owners of parent.

(3) Overview of Cash Flows for the Fiscal Year Under Review

Cash and cash equivalents at the end of the fiscal year under review increased by 144,888 thousand yen from the end of the previous fiscal year to 2,088,910 thousand yen (up 7.5% year on year). The status of cash flows and their contributing factors are as follows.

(Cash flows from operating activities)

Cash flows from operating activities in the fiscal year under review amounted to net cash provided by operating activities of 161,142 thousand yen (down 66.3% year on year). This was mainly attributable to a decrease in trade payables of 409,047 thousand yen, decrease in accrued consumption taxes of 85,576 thousand yen and income taxes paid of 201,431 thousand yen despite profit before income taxes of 450,242 thousand yen and a decrease in trade receivables of 410,202 thousand yen.

(Cash flows from investing activities)

Cash flows from investing activities in the fiscal year under review amounted to net cash used in investing activities of 46,793 thousand yen (up 459.7% year on year). This was mainly due to purchase of property, plant and equipment of 51,131 thousand yen, etc.

(Cash flows from financing activities)

Cash flows from financing activities in the fiscal year under review amounted to net cash provided by financing activities of 22,743 thousand yen (up 21.9% year on year). This was mainly attributable to proceeds from issuance of shares resulting from exercise of share acquisition rights of 22,869 thousand yen, etc.