Serio : (Numerical and Other Corrections) Partial Corrections to Summary of Consolidated Financial Results for the Fiscal Year Ended May 31, 2021

	August 23, 2021
Company name:	SERIO HOLDINGS CO., LTD.
Representative:	Hisashi Wakahama, President and CEO
Securities code:	6567 (Tokyo Stock Exchange, Mothers)
Inquiries:	Koji Gotani, Director, General Manager,
	Management Division
	TEL: [phone]

(Numerical and Other Corrections) Announcement of Partial Corrections to Summary of

Consolidated Financial Results for the Fiscal Year Ended May 31, 2021

SERIO Holdings Co., Ltd. has made the following partial corrections to the Summary of Consolidated Financial Results for the Fiscal Year Ended May 31, 2021 [Japanese GAAP], which were announced on July 14, 2021. Sections that have been corrected are underlined.

In addition, SERIO Holdings has made the corrections to the numerical data shown below.

1. Reason for corrections

After the announcement of the Summary of Consolidated Financial Results for the Fiscal Year Ended May 31, 2021 [Japanese GAAP], SERIO Holdings found that some of the items in "Cash flows from operating activities" were included in "Cash flows from investing activities" in the Cash Flows section, and has corrected these items.

2. Explanation of corrections [Summary Information]

(3) Consolidated cash flows

Before corrections

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents at
	operating activities	investing activities	financing activities	end of period
	Million yen	Million yen	Million yen	Million yen
Fiscal year ended May 31, 2021	585	(265)	44	1,897
Fiscal year ended May 31, 2020	258	(295)	307	1,531

After corrections

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents at
	operating activities	investing activities	financing activities	end of period
	Million yen	Million yen	Million yen	Million yen
Fiscal year ended May 31, 2021	483	(163)	44	1,897
Fiscal year ended May 31, 2020	258	(295)	307	1,531

1

On page 5 of the attachments

1. Overview of Results of Operations

(3) Cash Flows

Before corrections

Cash flows from operating activities

Net cash provided by operating activities increased 126.6%year on year to 585million yen. Positive factors include profit before income taxes of 342 million yen, depreciation of 97 million yen, an increase of 77 million yen in accrued expenses, and a decrease of 17 million yen in trade receivables.

Cash flows from investing activities

Net cash used in investing activities was 265million yen, compared with net cash used of 295 million yen in the previous fiscal year. Negative factors include purchase of property, plant and equipment of 453 million yen and payments of guarantee deposits of 29 million yen. Positive factors include subsidies received of 311 million yen.

After corrections

Cash flows from operating activities

Net cash provided by operating activities increased 87.1% year on year to 483million yen. Positive factors include profit before income taxes of 342 million yen, depreciation of 97 million yen, an increase of 77 million yen in accrued expenses, and a decrease of 17 million yen in trade receivables.

Cash flows from investing activities

Net cash used in investing activities was 163million yen, compared with net cash used of 295 million yen in the previous fiscal year. Negative factors include purchase of property, plant and equipment of 453 million yen and payments of guarantee deposits of 29 million yen. Positive factors include subsidies received of 311 million yen.

2

On page 13 of the attachments

3. Consolidated Financial Statements and Notes

(4) Consolidated Statement of Cash Flows

Before corrections

			(Thousands of yen)
		FY5/20	FY5/21
		(Jun. 1, 2019 - May 31, 2020)	(Jun. 1, 2020 - May 31, 2021)
Cash flows from operating activities
Profit before income taxes	167,799	342,701
Depreciation	78,898	97,302
Amortization of long-term prepaid expenses	2,925	3,026
Loss on tax purpose reduction entry of non-current assets	798,934	304,933
Subsidy income	(798,934)	(304,933)
Increase (decrease) in allowance for doubtful accounts	(173)	68
Interest and dividend income	(15)	(15)
Interest expenses	7,708	8,653
Decrease (increase) in trade receivables	(85,530)	17,150
Decrease (increase) in prepaid expenses	(17,643)	(25,164)
Decrease (increase) in other assets	(38,827)	(18,179)
Increase (decrease) in trade payables	(1,739)	5,018
Increase (decrease) in advances received	47,377	98,998
Increase (decrease) in accounts payable-other	(10,903)	28,878
Increase (decrease) in accrued expenses	77,022	77,065
Increase (decrease) in accrued consumption taxes	(25,160)	65,299
Other, net	83,893	2,127
Subtotal	285,631	702,930
Interest received	15	15
Interest paid	(7,583)	(8,860)
Income taxes paid	(19,503)	(108,228)
Net cash provided by (used in) operating activities	258,560	585,856
Cash flows from investing activities
Purchase of property, plant and equipment	(984,557)	(453,795)
Subsidies received	753,979	311,323
Payments of construction assistance fund receivables	(30,000)	-
Proceeds from collection of construction assistance fund	4,947	6,747
receivables
Purchase of intangible assets	(8,877)	(789)
Proceeds from refund of guarantee deposits	791	6,836
Payments of guarantee deposits	(17,123)	(29,393)
Other, net	(14,402)	(106,125)
Net cash provided by (used in) investing activities	(295,242)	(265,197)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	134,100	(134,100)
Proceeds from long-term borrowings	240,179	279,250
Repayments of long-term borrowings	(45,873)	(68,506)
Dividends paid	(8,861)	(18,988)
Repayments of lease obligations	(12,122)	(12,712)
Net cash provided by (used in) financing activities	307,422	44,943
Net increase (decrease) in cash and cash equivalents	270,739	365,602
Cash and cash equivalents at beginning of period	1,261,081	1,531,821
Cash and cash equivalents at end of period	1,531,821	1,897,424
		3

After corrections

			(Thousands of yen)
		FY5/20	FY5/21
		(Jun. 1, 2019 - May 31, 2020)	(Jun. 1, 2020 - May 31, 2021)
Cash flows from operating activities
Profit before income taxes	167,799	342,701
Depreciation	78,898	97,302
Amortization of long-term prepaid expenses	2,925	3,026
Loss on tax purpose reduction entry of non-current assets	798,934	304,933
Subsidy income	(798,934)	(304,933)
Increase (decrease) in allowance for doubtful accounts	(173)	68
Interest and dividend income	(15)	(15)
Interest expenses	7,708	8,653
Decrease (increase) in trade receivables	(85,530)	17,150
Decrease (increase) in prepaid expenses	(17,643)	(127,214)
Decrease (increase) in other assets	(38,827)	(18,179)
Increase (decrease) in trade payables	(1,739)	5,018
Increase (decrease) in advances received	47,377	98,998
Increase (decrease) in accounts payable-other	(10,903)	28,878
Increase (decrease) in accrued expenses	77,022	77,065
Increase (decrease) in accrued consumption taxes	(25,160)	65,299
Other, net	83,893	2,127
Subtotal	285,631	600,880
Interest received	15	15
Interest paid	(7,583)	(8,860)
Income taxes paid	(19,503)	(108,228)
Net cash provided by (used in) operating activities	258,560	483,806
Cash flows from investing activities
Purchase of property, plant and equipment	(984,557)	(453,795)
Subsidies received	753,979	311,323
Payments of construction assistance fund receivables	(30,000)	-
Proceeds from collection of construction assistance fund	4,947	6,747
receivables
Purchase of intangible assets	(8,877)	(789)
Proceeds from refund of guarantee deposits	791	6,836
Payments of guarantee deposits	(17,123)	(29,393)
Other, net	(14,402)	(4,075)
Net cash provided by (used in) investing activities	(295,242)	(163,147)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	134,100	(134,100)
Proceeds from long-term borrowings	240,179	279,250
Repayments of long-term borrowings	(45,873)	(68,506)
Dividends paid	(8,861)	(18,988)
Repayments of lease obligations	(12,122)	(12,712)
Net cash provided by (used in) financing activities	307,422	44,943
Net increase (decrease) in cash and cash equivalents	270,739	365,602
Cash and cash equivalents at beginning of period	1,261,081	1,531,821
Cash and cash equivalents at end of period		1,531,821	1,897,424

4

July 14, 2021

Summary of Consolidated Financial Results for the Fiscal Year Ended May 31, 2021

		[Japanese GAAP]
Company name:	SERIO HOLDINGS CO., LTD.	Listing: Tokyo Stock Exchange, Mothers
Securities code:	6567	URL: https://www.serio-holdings.co.jp/
Representative:	Hisashi Wakahama, President and CEO
Contact:	Koji Gotani, Director, General Manager,
	Management Division and Human Resources & General Affairs Division Tel: [phone]
Scheduled date of Annual General Meeting of Shareholders:	August 27, 2021
Scheduled date of payment of dividend:	August 30, 2021
Scheduled date of filing of Annual Securities Report:	August 27, 2021
Preparation of supplementary materials for financial results:	Yes
Holding of financial results meeting:	Yes (for institutional investors and analysts)

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended May 31, 2021 (June 1, 2020 - May 31, 2021)

(1) Consolidated results of operations										(Percentages represent year-on-year changes)
	Net sales			Operating profit		Ordinary profit		Profit attributable to
						owners of parent
	Million yen		%		Million yen			%	Million yen	%	Million yen	%
Fiscal year ended May 31, 2021		8,218		18.3		337		147.1		344		105.5			223	121.3
Fiscal year ended May 31, 2020		6,948		11.0		136		115.0		167		152.2			101	146.6
Note: Comprehensive income	Fiscal year ended May 31, 2021:	223 million yen	(up 121.3%)
		Fiscal year ended May 31, 2020:	101 million yen	(up 146.6%)
	Earnings per share	Diluted earnings		Return on equity	Ordinary profit on	Operating profit to
		per share		total assets		net sales
		Yen			Yen					%				%			%
Fiscal year ended May 31, 2021		35.34		-					12.2				8.2			4.1
Fiscal year ended May 31, 2020		15.97		-					6.0				4.7			2.0
Reference: Equity in earnings of affiliates	Fiscal year ended May 31, 2021: -		Fiscal year ended May 31, 2020: -

Notes: 1. SERIO Holdings conducted a two-for-one common stock split on October 1, 2020. Earnings per share are calculated as if this stock split had taken place at the beginning of the previous fiscal year.

1. 2. Diluted earnings per share are not shown because there were no dilutive common stock equivalents.

2. Consolidated financial position

	Total assets		Net assets		Equity ratio	Net assets per share
	Million yen		Million yen		%	Yen
As of May 31, 2021	4,495		1,931		43.0	305.21
As of May 31, 2020	3,906		1,727		44.2	272.87
Reference: Shareholders' equity	As of May 31, 2021:	1,931 million yen	As of May 31, 2020: 1,727 million yen

Note: SERIO Holdings conducted a two-for-one common stock split on October 1, 2020. Net assets per share are calculated as if this stock split had taken place at the beginning of the previous fiscal year.

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at end of period
	Million yen	Million yen	Million yen	Million yen
Fiscal year ended May 31, 2021	483	(163)	44	1,897
Fiscal year ended May 31, 2020	258	(295)	307	1,531

2. Dividends

		Dividend per share			Total	Dividend		Dividend on
							payout ratio		net assets
	1Q-end	2Q-end	3Q-end	Year-end	Total		dividends
		(consolidated)	(consolidated)
	Yen	Yen	Yen	Yen	Yen		Million yen	%	%
Fiscal year ended May 31, 2020	-	0.00	-	6.00	6.00	18	18.8	1.1
Fiscal year ended May 31, 2021	-	0.00	-	7.00	7.00	44	19.8	2.3
Fiscal year ending May 31, 2022	-	0.00	-	7.00	7.00			25.2
(forecast)

Note: SERIO Holdings conducted a two-for-one common stock split on October 1, 2020. The dividend per share for the fiscal year ended May 31, 2020 is the amount paid before the common stock split on October 1, 2020. The dividend per share for the fiscal year ended May 31, 2021 is the amount paid after the common stock split.

3. Consolidated Forecast for the Fiscal Year Ending May 31, 2022 (June 1, 2021 - May 31, 2022)

(Percentages represent year-on-year changes)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per
		owners of parent	share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	9,000		9.5	275	(18.5)	270	(21.7)	175	(21.5)	27.73