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 Six Months Ended November 30, 2021
(Based on Japanese GAAP)
January 12, 2022
Company name:
E･J Holdings Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

2153
President

URL

https://www.ej-hds.co.jp
Yuji Kotani

Inquiries:
Director
Scheduled date to file Quarterly Securities Report:

Masanori Hamano
January 14, 2022

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL

086(252)7520(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended November 30, 2021 (from June 1, 2021 to November 30, 2021)(1) Consolidated operating results (cumulative)
Net sales
Six months ended November 30, 2021
Six months ended November 30, 2020

Millions of yen
8,4937,742

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%–(752)–(642)–(521)–
21.5(1,034)–(884)–(670)–

Earnings per share

Diluted earnings per share

Yen(32.72)(48.12)Six months ended November 30, 2021
Six months ended November 30, 2020

Yen––(2) Consolidated financial position
Total assets
As of November 30, 2021
As of May 31, 2021

Net assets

Millions of yen
35,13337,513Equity ratio

Millions of yen
24,28725,497

%
69.1
68.0

2. Cash dividends
Annual dividends per share

Year ended May 31, 2021
Year ending May 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
35.00

Yen
35.00

–

40.00

40.00

Year ending May 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending May 31, 2022 (from June 1, 2021 to May 31, 2022)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
35,000–3,900–
4,100–
2,800–
175.71

14. Notes(1) Changes in significant subsidiaries during the six months ended November 30, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) 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:

YesNo

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

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of November 30, 2021

16,078,920 shares As of May 31, 2021

16,078,920 shares

Number of treasury shares at the end of the period
As of November 30, 2021

134,624 shares As of May 31, 2021

158,502 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended November 30, 2021

15,928,239 shares Six months ended November 30, 2020

213,940,044 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of May 31, 2021

As of November 30, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

18,975
3,748

10,949–Notes and accounts receivable - trade, and contract assets
Inventories–
3,2193,500
7,730

541
(4)

1,457(5)26,48023,632

2,416
2,315

2,378
2,323

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net

522

586

5,254

5,288

987
260

925
273

Total intangible assets

1,248

1,198

Investments and other assets
Investment securities

2,693

2,721

Bad debts
Investment property, net

0441

0437

Deferred tax assets
Retirement benefit asset

357
80

756
110

Other
Allowance for doubtful accounts

1,082(125)

1,110(124)

Total investments and other assets

4,529

5,013

11,032

11,50037,51335,133

Total property, plant and equipment
Intangible assets
Goodwill
Other

Total non-current assets
Total assets3

(Millions of yen)
As of May 31, 2021

As of November 30, 2021

Liabilities
Current liabilities
Accounts payable - operating

834

592

–
50

1,300
50

Current portion of long-term borrowings
Income taxes payable

305
1,120

244
321

Advances received on service contracts in progress
Contract liabilities

4,034
––
4,595

33
232

–
224

Other

4,111

2,371

Total current liabilities

10,721

9,700

Long-term borrowings
Deferred tax liabilities

572
53465
36

Retirement benefit liability
Provision for share awards for directors (and other357

304

5259

Short-term borrowings
Current portion of bonds payable

Provision for bonuses for directors (and other officers)
Provision for loss on order received

Non-current liabilities

officers)
Provision for Employee Stock Ownership Plan Trust
Long-term accounts payable - other
Provision for loss on guarantees
Other2125

197
13188
1126

54

1,294

1,145

12,015

10,845

Share capital
Capital surplus

2,803
4,387

2,803
4,387

Retained earnings
Treasury shares

17,593(84)

16,407(71)

Total shareholders' equity

24,70023,526

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

510495

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(0)
280

0258

Total accumulated other comprehensive income

790

754

Non-controlling interests
Total net assets
Total liabilities and net assets

47625,497

24,28737,51335,133

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

November 30, 2020

November 30, 2021

Net sales
Cost of sales

7,742
5,334

8,493
5,717

Gross profit

2,408

2,776

Selling, general and administrative expenses

3,443

3,528

Operating loss

(1,034)(752)

Interest income
Dividend income

217821

Share of profit of entities accounted for using equity methodRental income from real estate

120
1550
16

Non-operating income

Other5250

Total non-operating income

208147

Interest expenses
Rental expenses on real estate

310211

Guarantee commission
Provision of allowance for doubtful accounts

74

50

Share issuance costs
Settlement package

15––
10Other

178

Total non-operating expenses

5837

Non-operating expenses

Ordinary loss

(884)

(642)

Extraordinary losses
Loss on retirement of non-current assets

121

Loss on sale of investment securities

4–

Total extraordinary losses
Loss before income taxes

17

1(901)(644)

Income taxes - current

199

242

Income taxes - deferred(429)(366)

Total income taxes

(230)

(123)

Loss(670)(521)

Loss attributable to owners of parent

(670)

(521)

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Loss
Other comprehensive income

Six months ended

Six months ended

November 30, 2020

November 30, 2021
(670)

(521)

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

59
(0)

(14)
(0)

Remeasurements of defined benefit plans, net of tax

(9)

(21)

49

(36)

Comprehensive income

Total other comprehensive income

(621)

(557)

Comprehensive income attributable toComprehensive income attributable to owners of parent

(621)

(557)

(0)

(0)

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Loss before income taxes

Six months ended

Six months ended

November 30, 2020

November 30, 2021
(901)

(644)

229
62

215
62

Increase (decrease) in provision for bonuses for directors (andother officers)–(33)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on order received

300(8)

(1)
(75)

(1)
(52)

Increase (decrease) in provision for share awards for directors(and other officers)

918

Increase (decrease) in Provision for Management Board
Incentive Plan Trust-NCL

45

Interest and dividend income
Interest expenses

(20)
3(29)
2

Share of loss (profit) of entities accounted for using equity
method

(120)

(50)

Decrease (increase) in trade receivables
Decrease (increase) in trade receivables and contract assets

531
––
248

Decrease (increase) in inventories
Increase (decrease) in advances received on service contracts(3,736)(4,510)

313

––

561

(472)
(485)

(1,055)(680)

Other, net(1,044)(1,314)

Subtotal(5,699)(7,267)

27

33

(4)
(488)

(1)
(1,143)(6,163)(8,378)Depreciation
Amortization of goodwill

Increase (decrease) in provision for loss on guarantees
Increase (decrease) in retirement benefit liability

in progress
Increase (decrease) in contract liabilities
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits

(55)

(30)

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

104(312)150(168)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

0(50)

0(45)

Purchase of investment securities
Proceeds from sale of investment securities

(0)
12(0)
–

Proceeds from redemption of investment securities
Other, net

6(18)

1(2)

Net cash provided by (used in) investing activities

(314)

(95)

7

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Six months ended

Six months ended

November 30, 2020

November 30, 2021
700

1,300

Proceeds from long-term borrowings
Repayments of long-term borrowings

60
(290)

–
(168)

Proceeds from disposal of treasury shares
Proceeds from issuance of shares

766
1,606

––Dividends paid
Proceeds from share issuance to non-controlling shareholders(344)
7(558)–

Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(1)

(4)

2,504

568

(0)

(0)

Net increase (decrease) in cash and cash equivalents(3,973)(7,905)

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion of13,356

17,888

256

–

9,639

9,983

subsidiaries in consolidation
Cash and cash equivalents at end of period8