Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended February 28, 2022
(Based on Japanese GAAP)
April 12, 2022
Company name:

MORESCO Corporation

Stock exchange listing: Tokyo
Stock code:
5018
Representative:
Inquiries:

URL

https://www.moresco.co.jp/

Representative Director, President
Director,Senior Executive Offcer

Motohisa MorozumiHirofumi Fujimoto

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

May 27, 2022
May 27, 2022

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

May 30, 2022
Yes

Holding of financial results meeting:

Yes

TEL

078-303-9220(for institutional investors and analysts)(Amounts are rounded off to the nearest million yen)

1. Consolidated financial results for the year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended February 28, 2022
27,300
11.5
1,434
70.3
2,011
95.3
1,808 249.1
Year ended February 28, 2021
24,479(9.6)
842(34.1)
1,030(34.3)
518(33.3)
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen%%%–
10.7
7.1
5.3
–
3.3
3.7
3.4

Diluted earnings pershare

Earnings per share
Yen
192.76
54.09

Year ended February 28, 2022
Year ended February 28, 2021
(2) Consolidated financial position

Total assets
As of February 28, 2022
As of February 28, 2021

Net assets

Equity ratio

Millions of yen
29,00827,707

Millions of yen
20,551
18,163

Cash flows fromoperating activities
Millions of yen
2,333
2,088

Cash flows frominvesting activities
Millions of yen
603
(660)

Net assets per share%
61.9
57.4

Yen
1,914.94
1,695.81(3) Consolidated cash flows

Year ended February 28, 2022
Year ended February 28, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(2,937)3,654(1,019)3,675

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended February 28, 2021
Year ended February 28, 2022
Year ending February 28, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYenYenYenYen

Yen

Millions of yen%%––

15.00
20.00

–
–

25.00
20.00

40.00
40.00

378
375

74.0
20.8

2.4
2.2

–

20.00

–

20.00

40.00

1

28.9

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)
Net sales
Full year

Millions of yen
30,500Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
11.7
1,850
29.0
2,200
9.4
1,300 (28.1)
138.594. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 2022

9,696,500 shares As of February 28, 2021

9,696,500 shares

316,570 shares As of February 28, 2021

321,070 shares

Number of treasury shares at the end of the period
As of February 28, 2022
Average number of shares during the period
Year ended February 28, 2022

9,378,512 shares Year ended February 28, 2021

29,573,806 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of February 28, 2021

As of February 28, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

4,108
6,643

4,001
6,844

Merchandise and finished goods
Raw materials and supplies

2,524
1,718

2,935
2,391

Other
Allowance for doubtful accounts

338
(27)

461
(25)

15,304

16,607

6,919(3,367)

6,867(3,327)

Buildings and structures, net

3,552

3,540

Machinery, equipment and vehicles
Accumulated depreciation

9,832(8,028)10,513(8,478)

1,804

2,035

2,422
189

1,954
189

(133)

(134)

56

55

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress

155

294

2,961
(2,431)

3,004(2,579)

529

425

8,518

8,304

Goodwill
Leased assets

347
3219
1

Other

442

412

Total intangible assets

792

633

Investment securities
Investments in capital

339
1,656

367
1,915

Deferred tax assets
Retirement benefit asset

31841

29976

OtherAllowance for doubtful accounts

226(0)

179(0)

Total investments and other assets

3,093

3,465

12,403

12,401

27,70729,008Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of February 28, 2021

As of February 28, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

3,975

4,308

Short-term borrowings
Lease obligations

2,544
26560
36

Income taxes payable
Provision for bonuses

109441

427
529

Other

1,026

1,401

Total current liabilities

8,121

7,260

Long-term borrowings
Lease obligations

775
18350
22

Retirement benefit liability
Other494
136

531
293

Total non-current liabilities

1,424

1,197

9,545

8,457

Shareholders' equity
Share capital

2,118

2,118

Capital surplus
Retained earnings

1,976
12,132

1,976
13,517

Treasury shares

(390)

(384)

15,836

17,227

Valuation difference on available-for-sale securities
Foreign currency translation adjustment27(117)38505

Remeasurements of defined benefit plans

152

191

Non-current liabilities

Total liabilities
Net assetsTotal shareholders' equity
Accumulated other comprehensive income

63735

Non-controlling interests

Total accumulated other comprehensive income

2,264

2,589

Total net assets

18,163

20,551

27,70729,008

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
February 28, 2021

Fiscal year ended
February 28, 2022

Net sales

24,47927,300

Cost of sales

16,64018,575Gross profit

7,838

8,725

Selling, general and administrative expenses6,996

7,291

Operating profit

842

1,434

Non-operating income
Interest income

2123

Dividend income
Foreign exchange gains

14–

14247

Share of profit of entities accounted for using equity method
Other

255
63

239
79

Total non-operating income

353

602

Non-operating expenses
Interest expenses

1412

Foreign exchange losses
Loss on retirement of non-current assets

125
10–
5

Other

16

9

Total non-operating expenses

166

26

1,030

2,011

Gain on sale of non-current assets–

833

Total extraordinary income–

833

Impairment losses

119–

Total extraordinary losses

Ordinary profit
Extraordinary income

Extraordinary losses
119–

Profit before income taxes

911

2,844

Income taxes - current

275

653

Income taxes - deferred(35)178

Total income taxes

240

831

Profit670

2,013

Profit attributable to non-controlling interests

153

205

Profit attributable to owners of parent

518

1,808

5

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

February 28, 2021

February 28, 2022
670

2,013

Valuation difference on available-for-sale securitiesForeign currency translation adjustment

13(169)17731

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted

164

41547

12836

Comprehensive income

683

2,848

Comprehensive income attributable toComprehensive income attributable to owners of parent

588

2,480

95368

for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended February 28, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,118

Retained earnings

1,979

Total shareholders'equity

Treasury shares

11,998(157)

15,939Changes during period
Change in ownership interestof parent due to transactions
with non-controlling interests

00

Dividends of surplus

(384)

(384)

Profit attributable to owners ofparent

518

518

Purchase of treasury shares
Disposal of treasury shares

(3)

(244)

(244)

118

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–(3)

134

(233)

(102)

2,118

1,976

12,132(390)15,836

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income15(10)(13)(7)

Non-controllinginterests

Total net assets

2,278

18,209Changes during period
Change in ownership interestof parent due to transactions
with non-controlling interests

0

Dividends of surplus(384)

Profit attributable to owners ofparent

518

Purchase of treasury shares(244)

Disposal of treasury shares

8Net changes in items otherthan shareholders' equity

12(107)165

70(14)

56

Total changes during period

12(107)16570(14)(47)

Balance at end of period27(117)

152

63

2,264

18,163

7

Fiscal year ended February 28, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,118

Retained earnings

1,976

Total shareholders'equity

Treasury shares

12,132(390)

15,836

Changes during period
Dividends of surplus

(422)

(422)

Profit attributable to owners ofparent

1,808

1,808

Disposal of treasury shares

(0)

55

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–(0)

1,386

5

1,391

2,118

1,976

13,517(384)17,227

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income27(117)

152

63

Non-controllinginterests

Total net assets

2,264

18,163

Changes during period
Dividends of surplus(422)

Profit attributable to owners ofparent

1,808

Disposal of treasury shares

5

Net changes in items otherthan shareholders' equity

11622

Total changes during period

11622

39

672

326

2,389

Balance at end of period

38505

191

735

2,589

20,551

39

8672

326

998

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

February 28, 2021

February 28, 2022
911

2,844

1,328

1,210

(255)

(239)

(5)

(842)

Decrease (increase) in net defined benefit asset(benefit asset)
Increase (decrease) in provision for bonuses(224)
1(103)
85

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

4(35)

(3)
(37)

Interest expenses
Decrease (increase) in trade receivables

1443

1275

Decrease (increase) in inventories
Increase (decrease) in trade payables

459
(73)

(900)
191

Depreciation
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on sale of property, plant and equipment

Other, net

173

144

Subtotal

2,342

2,437

Interest and dividends received

112

241

Interest paidIncome taxes paid

(14)
(352)

(12)
(333)

Net cash provided by (used in) operating activities

2,088

2,333(66)101

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(465)
6(934)
1,511

Purchase of intangible assets
Purchase of investment securities

(25)
(52)

(31)
(3)

Other, net

(57)

(40)

Net cash provided by (used in) investing activities

(660)

603

Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings

456
(724)

(1,955)(469)

Purchase of treasury shares
Dividends paid

(244)
(385)

–(424)

Dividends paid to non-controlling interests
Other, net(62)
(60)

(59)
(30)

(1,019)(2,937)

Effect of exchange rate change on cash and cash equivalents

54

(20)

Net increase (decrease) in cash and cash equivalents

463

(21)

Cash and cash equivalents at beginning of period

3,213

3,675

Cash and cash equivalents at end of period

3,675

3,654

Cash flows from investing activities
Net decrease (increase) in time deposits

Cash flows from financing activities

Net cash provided by (used in) financing activities

9