Sugi : Notification on Revision of Consolidated Earnings Forecast

December 28, 2021

To Whom It May Concern:

Company: SUGI Holdings Co., Ltd.

Representative: Katsunori Sugiura, Representative Director and President

(Code number: 7649, First Section of TSE / Nagoya Stock Exchange) Inquiries: Makoto Kasai, General Manager, Business Planning Department （Phone: [phone]）

Notification on Revision of Consolidated Earnings Forecast

In light of recent trends in our business performance, we have revised the full-year of the fiscal year ending February 28,2022, announced on June 29,2021.

• Revision of Consolidated Earnings Forecast for the Fiscal Year Ending February 28, 2022 (March 1, 2021 to February 28, 2022)

				Profit
	Net sales	Operating	Ordinary	attributable to	Earnings Per
	income	income	owners of	Share
				parent
Previous forecast (A)	million yen	million yen	million yen	million yen	Yen
650,300	34,300	35,500	22,000	355.91
Revised forecast (B)	625,000	31,000	32,000	18,300	296.05
Changed Amount (B-A)	△25,300	△3,300	△3,500	△3,700
Changed Ratio (%)	△3.9	△9.6	△9.9	△16.8
(Reference)					Yen
Previous results
602,850	34,041	35,333	21,120	341.68
(FY ended February 28, 2021)

Note: Due to change in the method of presentation in the first quarter of the fiscal year ending February 28, 2022, the figures for net sales and operating income in the consolidated financial results for the fiscal year ended February 28, 2021 have been reclassified to reflect the change.

● Reasons for the revision

In this fiscal year, the Company has been working on various measures to strengthen our sales force, such as reinforcing stores with dispensing and expanding the food sales floor to meet the changing needs of the market. However, net sales and profits fell short of the initially announced forecast due to decline in demand for products to combat the new coronavirus and nesting demand, which had grown significantly in the previous fiscal year, as well as a prolonged decline in demand for cosmetics and OTC drugs due to the regular use of masks and increased hygiene awareness.

As for the future, there are many uncertainties such as occurrence of new variant, and recovery is expected to be difficult for in the full fiscal year, for these reason the Company had made a downward revision for earnings forecast.

*The above earnings forecasts are based on current available information. Actual results may differ from forecasted figures above due to various factors.