Consolidated Financial Results for the Six Months Ended September 30, 2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Six Months Ended September 30, 2021

[Japanese GAAP]

Company name: VALOR HOLDINGS CO.,LTD.	November 11, 2021
Stock exchange listing: Tokyo,Nagoya
Code number: 9956
URL: https://valorholdings.co.jp/
Representative: Masami Tashiro	President and Representative Director
Contact: Akira Shinohana	Executive Director

Phone: [phone]

Scheduled date of filing quarterly securities report: November 15, 2021

Scheduled date of commencing dividend payments: December 06, 2021

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (April 01, 2021 to September 30, 2021)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Operating revenues	Operating profit	Ordinary profit	Profit attributable to
	owners of parent
Six months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
September 30, 2021	365,934	-	12,458	-	14,044	-	6,104	-
September 30, 2020	367,523	9.1	16,326	120.2	17,500	114.2	8,794	131.7

(Note) Comprehensive income:	Six months ended September 30, 2021:
	Six months ended September 30, 2020:

¥	7,185 million	[	-%]
¥	14,624 million	[	313.0%]

	Basic earnings	Diluted earnings per
	per share	share
Six months ended	Yen	Yen
September 30, 2021	113.69	113.64
September 30, 2020	163.79	163.75

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio
As of	Million yen		Million yen	%
September 30, 2021	404,216		160,521	36.4
March 31, 2021	404,458		155,190	35.3
(Reference) Equity: As of	September 30, 2021:	¥	146,949 million
As of	March 31, 2021:	¥	142,862 million

1

2. Dividends

				Annual dividends
	1st	2nd	3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
	Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2021	-		25.00	-		29.00	54.00
Fiscal year ending March 31, 2022	-		26.00
Fiscal year ending March 31, 2022				-		30.00	56.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

Operating revenues

Operating profit

Ordinary profit

Profit attributable

Basic earnings per

to owners of parent

share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

732,000

-

23,000

(10.3)

25,000

(12.0)

12,000

(4.7)

223.47

(Note) Revision to the financial results forecast announced most recently:

No

* Notes:

(1) Changes in significant subsidiaries during the six months ended September 30, 2021

(changes in specified subsidiaries resulting in changes in scope of consolidation):

No

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:

No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

September 30, 2021:	53,987,499	shares
March 31, 2021:	53,987,499	shares
2) Total number of treasury shares at the end of the period:
September 30, 2021:	285,861	shares
March 31, 2021:	291,212	shares

3) Average number of shares during the period:
Six months ended September 30, 2021:	53,698,661	shares
Six months ended September 30, 2020:	53,695,170	shares

2

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Million yen)
			As of March 31,2021	As of September 30,2021
Assets
	Current assets
		Cash and deposits	29,924	22,284
		Notes and accounts receivable - trade	13,717	-
		Notes and accounts receivable - trade, and contract	-	14,419
		assets
		Merchandise and finished goods	52,878	55,904
		Raw materials and supplies	1,149	1,214
		Other	14,537	15,483
		Allowance for doubtful accounts	(7)	(8)
		Total current assets	112,199	109,298
	Non-current assets
		Property, plant and equipment
		Buildings and structures, net	139,460	141,851
		Land	52,096	52,162
		Other, net	26,616	27,152
		Total property, plant and equipment	218,173	221,166
		Intangible assets
		Goodwill	1,496	1,581
		Other	14,496	15,186
		Total intangible assets	15,993	16,767
		Investments and other assets
		Guarantee deposits	32,350	32,888
		Other	26,134	24,509
		Allowance for doubtful accounts	(392)	(413)
		Total investments and other assets	58,092	56,983
		Total non-current assets	292,259	294,917
	Total assets	404,458	404,216

3

				(Million yen)
			As of March 31,2021	As of September 30,2021
Liabilities
	Current liabilities
		Notes and accounts payable - trade	59,423	58,923
		Short-term borrowings	42,457	41,625
		Commercial papers	10,000	15,000
		Current portion of bonds payable	10,010	5
		Income taxes payable	7,848	4,354
		Provision for bonuses	3,634	3,447
		Provisions	2,287	548
		Asset retirement obligations	30	98
		Other	29,793	28,527
		Total current liabilities	165,484	152,530
	Non-current liabilities
		Bonds payable	-	10,000
		Long-term borrowings	44,520	41,245
		Provisions	673	603
		Retirement benefit liability	5,804	5,956
		Asset retirement obligations	13,342	13,840
		Other	19,442	19,518
		Total non-current liabilities	83,783	91,164
	Total liabilities	249,267	243,694
Net assets
	Shareholders' equity
		Share capital	13,609	13,609
		Capital surplus	20,049	20,060
		Retained earnings	108,998	113,518
		Treasury shares	(561)	(548)
		Total shareholders' equity	142,095	146,640
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	880	448
		securities
		Deferred gains or losses on hedges	-	0
		Foreign currency translation adjustment	140	95
		Remeasurements of defined benefit plans	(254)	(236)
		Total accumulated other comprehensive income	766	308
	Share acquisition rights	134	121
	Non-controlling interests	12,194	13,450
	Total net assets	155,190	160,521
Total liabilities and net assets	404,458	404,216

4

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

			(Million yen)
		For the six months	For the six months
		ended September 30,2020	ended September 30,2021
Net sales	355,534	353,780
Cost of sales	261,256	260,275
Gross profit	94,278	93,504
Operating revenue	11,988	12,153
Operating gross profit	106,267	105,658
Selling, general and administrative expenses	89,940	93,200
Operating profit	16,326	12,458
Non-operating income
	Interest income	66	66
	Dividend income	86	90
	Administrative service fee income	808	807
	Rental income	435	320
	Share of profit of entities accounted for using equity	25	51
	method
	Other	774	1,098
	Total non-operating income	2,196	2,434
Non-operating expenses
	Interest expenses	435	402
	Rental costs on real estate	372	241
	Other	214	204
	Total non-operating expenses	1,023	848
Ordinary profit	17,500	14,044
Extraordinary income
	Gain on sale of non-current assets	41	67
	Gain on bargain purchase	17	0
	Penalty income	146	31
	Subsidy income	164	379
	Other	151	90
	Total extraordinary income	521	569
Extraordinary losses
	Loss on sale of non-current assets	20	2
	Loss on retirement of non-current assets	82	69
	Impairment losses	231	462
	Loss on tax purpose reduction entry of non-current	-	354
	assets
	Loss on voluntarily close	702	-
	Other	118	112
	Total extraordinary losses	1,155	1,000
Profit before income taxes	16,866	13,613
Income taxes - current	6,552	4,425
Income taxes - deferred	(487)	1,498
Total income taxes	6,064	5,923
Profit	10,801	7,689
Profit attributable to non-controlling interests	2,006	1,584
Profit attributable to owners of parent	8,794	6,104

5