Strike : ［Delayed］Financial Results and Future Measures Cumulative Q3 of Year Ending September 30, 2021

Financial Results and Future Measures

First Nine Months of the Fiscal Year Ending September 30, 2021

(Cumulative Q3 FY09/21)

Strike Co., Ltd.

(First Section, Tokyo Stock Exchange: 6196)

June 30, 2021

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Contents

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Operating Performance in Cumulative Q3 FY09/21 ... P. 3

Net sales rose 12.4% YoY to ¥5,597 million as we steadily closed deals on large M&A projects. Meanwhile, ordinary profit declined 4.3% YoY to ¥2,038 million due primarily to workforce expansion.

Forecast for FY09/21* ... P. 8

We project net sales of ¥8,368 million and ordinary profit of ¥3,083 million. *FY09/21 is a 13-monthaccounting period due to a change in fiscal year-end.

Market Trends ... P. 19

We expect expansion in the M&A market, mainly in the category of business succession.

Medium- to Long-Term Management Policy ... P. 24

In addition to expanding M&A associated with business succession, we aim to fulfill rising needs associated with other types of M&A. Over the long term, we strive to become the M&A broker with the highest number of deals closed.

Company Overview ... P. 27

We are a group of professionals, chiefly certified public accountants, with "Realizing people's aspirations through M&A" as our corporate credo.

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Operating Performance in Cumulative Q3 FY09/21

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Cumulative Q3 FY09/21 Operating Performance

In cumulative Q3 FY09/21, we closed 99 deals (+2 deals YoY). Net sales rose to a record high of ¥5,597 million (+12.4% YoY) for the period due in part to a rise in sales generated per deal closed. Ordinary profit dropped to ¥2,038 million (-4.3% YoY) due primarily to increases in personnel expenses, operating expenses, and temporary expenditures associated with the relocation of our headquarters.

Net Sales and Number of Deals Closed

Millions of yen	Net sales (left)		Deals
	Number of deals closed (right)
7,000	110
	97	99
			100
6,000				90
5,000	68		5,597	80
	4,979		70
4,000				60
3,000	3,413			50
				40
2,000				30
1,000				20
				10
0				0
	Cumulative Q3	Cumulative Q3	Cumulative Q3
	FY08/19	FY08/20	FY09/21

Ordinary Profit

Millions of yen

3,500
3,000
2,500
2,000		2,130	2,038
1,500
1,000	1,200
500
0
	Cumulative Q3	Cumulative Q3	Cumulative Q3
	FY08/19	FY08/20	FY09/21

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Year-on-Year Comparison

Cost of sales rose 21.9% YoY to ¥2,073 million, and the cost-to-sales ratio increased as personnel expenses grew. SG&A expenses expanded 29.8% YoY to ¥1,489 million due to increases in advertising expenses and rent expenses on land and buildings, as well as recruiting expenses* (impact of +¥46 million on SG&A expenses), depreciation* and amortization of leasehold deposits* (+¥41 million), and temporary expenses associated with the relocation of our headquarters* (approximately +¥30 million).

*Denotes items included under "Other"
				Millions of yen
	Cumulative Q3 FY08/20	Cumulative Q3 FY09/21
		% of net		% of net	YoY
		sales		sales
Net sales	4,979	100.0%	5,597	100.0%	+12.4%
Cost of sales	1,701	34.2%	2,073	37.0%	+21.9%
Gross profit	3,277	65.8%	3,524	63.0%	+7.5%
SG&A expenses	1,147	23.1%	1,489	26.6%	+29.8%
Operating profit	2,130	42.8%	2,035	36.4%	-4.5%
Non-operating income	0	0.0%	3	0.1%	+853.7%
Ordinary profit	2,130	42.8%	2,038	36.4%	-4.3%
Extraordinary income	225	4.5%	-	-	-
Extraordinary losses	36	0.7%	-	-	-
Profit before income taxes	2,319	46.6%	2,038	36.4%	-12.1%
Income taxes	753	15.1%	666	11.9%	-11.5%
Profit	1,565	31.4%	1,371	24.5%	-12.4%

Breakdown of cost of sales

2,000	1,701	2,073
1,500
	1,374			Personnel expenses
1,000	1,096
			Introduction fees
500					Other
494	575
0	110	122

Cumulative Q3 Cumulative Q3

FY08/20 FY09/21

Breakdown of SG&A expenses

1,500	1,147	1,489
				Personnel expenses
	630
1,000					Advertising expenses
587	105
500	59	182			Rent expenses on land
				and buildings
140	570

359			Other
0

Cumulative Q3 Cumulative Q3

FY08/20 FY09/21

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