Reference Documents for the General Meeting of Shareholders
Financial Statements, etc. Related to the Last Business Year of the Successor Company Succeeding
to the Company’s BusinessBusiness Report(April 1, 2020 - March 31, 2021)

1. Overview of the Company(1)

Business Progress and Results
In the fiscal year under review, the company conducted sales activities mainly of LED lighting
rental services and product sales (air-conditioning equipment), aiming to establish stable revenue
bases by collaborating with KYUSHU LEASING SERVICE CO., LTD.
The company also started rental sales of “environmental equipment for virus inactivation anddisinfection” in February, 2021.
As a result, the company posted net sales of 581,994 thousand yen (down 22.4% year on year),ordinary profit of 59,114 thousand yen (down 4.0% year on year), and profit of 43,517 thousandyen (down 4.0%).
The main factor of the decrease in net sales is the discontinuation of the construction work
contracting business except for that of electrical work from the second half of this fiscal year.
In the sound-proof panel business (rental and sales), the company sold the panels of Kanto Yardand Kansai Yard, both of which had significantly low operating rates (amount of sales: 46,005
thousand yen) to dispose of unprofitable products.

(2)

Capital Investments
In the fiscal year under review, the company acquired the following four properties of low
pressure solar systems in the solar business of the environment department at the end of September,
2020.
(In thousands of yen)Power output

Number of blocks

Land price

Equipment price

Shintomi-cho

400kw

105,000

140,000

Sueyoshi-cho

240kw

63,00070,000Takanabe-cho

200kw

53,00065,000

Kawaminami-cho

440kw

117,000

145,000

Total

1,280kw

3218,000

420,000

This investment is expected to generate net sales of more than approx. 60,000 thousand yen andoperating profit of approx. 15,000 thousand yen.
(3)

Capital Raising
The capital raised by the company in this fiscal year is as follows.
1. Procurement of LED rental assets
139,673 thousand yen
2. Capital related to acquisition of low pressure solar systems
420,000 thousand yen
With respect to the procurement of LED rental assets in 1., the company has accepted aninstallment sales agreement from KYUSHU LEASING SERVICE CO., LTD.
The low pressure solar systems in 2. have been acquired from KYUSHU LEASING SERVICECO., LTD. through leases that transfer ownership the properties.
As a result, the company has outstanding accounts payable - installment purchase fromKYUSHU LEASING SERVICE CO., LTD. of 747,140 thousand yen and long-term lease liabilitiesof 877,787 thousand yen.

-1-(4)

Issues to Be Addressed
While operating activities are limited due to the COVID-19 pandemic, the company aims tomake the most of strength as a group of KYUSHU LEASING SERVICE CO., LTD. and secure
profits in a stable manner by further enhancing and proactively operating the rental business.

(5)

Trends in Assets and Income(In thousands of yen, unless otherwise specified.)
The 20th fiscal year
The 21st fiscal
The 22nd fiscal
Item
ended
year ended
year ended
March 31, 2019
March 31, 2020
March 31, 2021
Net sales
684,922750,021581,994
Ordinary profit
58,42361,597
59,114
Profit1,264
45,31543,517
Basic earnings per share (yen)790
28,321
27,198
Total assets
1,373,413
1,529,432
1,958,066
Net assets
151,251
196,566
240,084
Net assets per share (yen)94,531
122,853
150,052
Note: Basic earnings per share is calculated based on the number of shares issued andoutstanding at the end of the period (1,600 shares).

(6)

Principal Business
The company engages in LED lighting rental and sales business, business of selling othermechanical products, electrical work contracting business, electric power sales business using highand low pressure solar systems, and other affairs.

(7)

Business Locations
Headquarters: 4-4-21 Hakata Ekimae, Hakata-ku, Fukuoka, Japan(8)

Employees
Number of employees
8Year-on-year increase/decrease
Decrease of one employee-2-2. Status of Shares of the Company
Status of shares(1) Total number of shares authorized to be issued

6,400 shares(2) Total number of shares outstanding

1,600 shares(3) Number of shareholders at the end of the year

2 persons(4) Shareholders
Number of shares
heldVoting rights

KYUSHU LEASING SERVICE CO., LTD.

1,440 shares

90%

Oishi Planning Co., Ltd.

160 shares

10%

Shareholder name

3. Company Officers
Status of Directors and Corporate Audit & Supervisory Board Members
Position

Name

Area of responsibility or main profession

Representative
Director

Kazunari Abe

Business management ingeneral

Director

Takashi Minoda

In charge of construction

DirectorShigeru Nakano

KYUSHU LEASINGSERVICE CO., LTD.

Director and Senior
Managing Executive Officer

Director

Takashi Ishihara

KYUSHU LEASINGSERVICE CO., LTD..

Director and Managing
Executive Officer

DirectorTakeo Kurose

KYUSHU LEASINGSERVICE CO., LTD.

Director and Managing
Executive Officer

Director

Kohei Nonaka

KYUSHU LEASINGSERVICE CO., LTD.

Director and Senior
Executive Officer

DirectorKenji Oishi

Oishi Planning Co., Ltd.

Representative Director

Audit & Supervisory
Board Member

Koichi Abe

KYUSHU LEASINGSERVICE CO., LTD.

Full-time Audit &Supervisory Board Member

4. Significant Subsequent Events Concerning the Compapny’s Status
Not applicable-3-Non-Consolidated Balance Sheet(As of March 31, 2021)(In yen)Description

AmountDescription(Assets)
Current assets
Cash and deposits

Amount(Liabilities)
1,219,543,958

Current liabilities

172,083,518

88,745,941

Accounts payable-trade73,601,072

Notes receivable-trade

6,655,012

Accrued expenses

2,944,816

Accounts receivable-trade47,797,093

Income taxes payable

8,480,400

Investments in leases

855,317,753

Other current liabilities

3,719,653

Installment receivables

61,341,584

Merchandise

5,448,036

Long-term accounts payable installment purchase747,140,824

Prepaid expenses

3,240,200

Long-term lease liabilities

877,787,899

Other current assets

75,125,524

Provision for retirement benefits

Allowance for doubtful
accounts(7,464,762)

Total liabilities

Non-current liabilities

1,629,235,723

4,307,000
1,717,981,664

Non-current assets

738,522,265(Net assets)

Property, plant and equipment

733,001,239

Share capital

80,000,000

Buildings

709,170

Retained earnings

160,084,559

Facilities attached to buildings

30,213

Other retained earnings

160,084,559

Machinery and equipment

388,962

Tools, furniture and fixtures

82,828Land

19,178,933

Leased assets

712,611,133

Intangible assets

569,026

Telephone subscription right

153,600

Software415,426

Investments and other assets

4,952,000

Shares of subsidiaries andassociates

4,950,000

Investments in capital

1,000

Guarantee deposits

1,000

Total assets

1,958,066,223-4-

Retained earnings brought forward

160,084,559

Total net assets

240,084,559

Total liabilities and net assets

1,958,066,223

Non-Consolidated Statement of Income(April 1, 2020 - March 31, 2021)(In yen)Description

AmountNet sales
Lease sales

229,281,323

Rental sales

41,489,936

Installment sales

3,345,148

Net sales of goods

118,485,295

Maintenance sales

4,372,272

Construction sales

29,527,200

Electric power sales

138,960,211

Other sales

11,248,377

SPC sales

5,284,839
581,994,601

Cost of sales
Cost of lease sales

150,208,412

Cost of rental sales

32,753,649

Cost of goods sold

97,435,192

Cost of maintenance sales

1,793,675

Cost of construction sales

27,274,350

Cost of electric power sales

80,253,671

Other cost of sales

326,000

Capital costs

51,873,724
441,918,673

Gross profit

140,075,928

Selling, general and administrative expenses

81,410,680

Operating profit

58,665,248

Non-operating income
Interest income

845

Miscellaneous income

510,358
511,203

Non-operating expenses
Miscellaneous losses

61,54161,541

Ordinary profit

59,114,910

Profit before income taxes

59,114,910

Income taxes-current

15,597,100

Profit43,517,810-5-Statement of Changes in Equity(April 1, 2020 – March 31, 2021)(In yen)Shareholder’s equity
Retained earnings
Share capital
Balance as of April 1,2020
Changes in items
during period

80,000,000

ProfitTotal changes in items
during period
Balance as of March
31, 2021

80,000,000

Retained earnings
brought forward

Shareholders'equity

Net assets

116,566,749

116,566,749

196,566,749

196,566,749

43,517,810

43,517,810

43,517,810

43,517,810

43,517,810

43,517,810

43,517,810

43,517,810

160,084,559

160,084,559

240,084,559

240,084,559-6-Notes to the Non-Consolidated Financial Statements(April 1, 2020 – March 31, 2021)

I. These financial statemsnts were prepared based on the accounting guidance for SMEs.
II. Notes on Significant Accounting Policies
1. Depreciation method of non-current assets
Property, plant and
Declining-balance method pursuant to the Corporation Tax Act; provided,
however, that buildings obtained on April 1, 1998 or later (excludingequipment
facilities attached to buildings), facilities attached to buildings obtained on
April 1, 2016 or later and structures shall be depreciated by the straight-line
method.
Intangible assets
Straight-line method pursuant to the Corporation Tax Act
Leased assets
Straight-line method over the lease term
III. Notes on Balance Sheet
1. Estimated uncollectible amount directly reduced from
distressed receivables
2. Breakdown of lease investment assets
Amount of claim
Equivalent to interest income
Net

1,991,316 yen

1,133,380,090 yen(278,062,337) yen
855,317,753 yen

Ⅳ. Notes on Statement of Changes in Equity
1. Number of outstanding shares at the end of the year underreview-7-

1,600 shares

Audit Report
In regard to the directors’ performance of their duties for the 22th fiscal year from April 1, 2020 to March
31, 2021, I have prepared this Audit Report and reports as follows.
1.

Method and Contents of Audit
I communicated with Directors and employees to collect information and create an auditing
environment. I also attended the Board of Directors meeting and other important meetings, received
reports on their execution of business. I requested explanation as necessary, viewed important written
approval and other documents and surveyed the status of businesses and properties at the headquarters.
Using the methods above, I examined the business report and the supplementary schedules thereto for
the fiscal year.

2.

I also surveyed accounting books and their related documents, and examined the accounting
documents for the fiscal year (balance sheet, statement of income and statement of changes in equity)and supplementary schedules thereto.
Audit Results(1)
Results of audit of business report, etc.

(2)

(i)

I find that the business report and the supplementary schedules thereto accurately presentthe status of the company in accordance with laws, regulations, and the articles ofincorporation.

(ii)

I do not find any misconduct nor any material fact constituting a violation of any law,regulation, or the articles of incorporation in relation to the directors’ performance of
their duties.

Results of audit of accounting documents and supplementary schedules thereto
I find that the accounting documents and supplementary schedules thereto properly represent
the company’s properties and profit (loss) in terms of all important aspects.

May 10, 2021
K.L.I. CO., LTD
Koichi AbeAudit & Supervisory Board Member [Seal]-8-