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 August 31, 2022
(Based on Japanese GAAP)
Company name:JNS HOLDINGS INC.
Stock exchange listing: Tokyo
Stock code:3627
URL https://www.jns.inc/
Representative:
President & Representative Director
Senior Managing Director, Member of theInquiries:
Board
Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

October 14, 2022

Masashi Ikeda
Takashi Nakano

TEL(03)6838-8800

October 14, 2022
–Yes
Yes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended August 31, 2022 (from March 1, 2022 to August 31, 2022)(1) Consolidated operating results (cumulative)
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%
Six months ended August 31, 2022
3,795 (19.8)(48)–53 (47.1)
15 (97.2)
Six months ended August 31, 2021
4,732
18.1
202
20.4
100 (10.6)
562 258.7
Earnings per share

Diluted earnings per share

Yen
1.34
47.02

Six months ended August 31, 2022
Six months ended August 31, 2021

Yen
1.29
44.71

(2) Consolidated financial position
Total assets
As of August 31, 2022
As of February 28, 2022

Net assets

Millions of yen
7,879
8,786

Equity ratio

Millions of yen
5,553
5,593

Net assets per share%
69.9
63.2

Yen
479.84465.64

2. Cash dividends
Annual dividends per share

Year ended February 28, 2022
Year ending February 28, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
10.00

Yen
10.00

–

5.00

5.00

Year ending February 28, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)
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
9,600
0.5
210 (59.4)
300 (30.6)
200 (43.4)
16.91

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:NoYes(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:
Yes
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
No
Restatement of prior period financial statements:
No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of August 31, 2022

12,144,500 shares As of February 28, 2022

12,140,400 shares

Number of treasury shares at the end of the period
As of August 31, 2022

660,105 shares As of February 28, 2022

210,105 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2022

11,824,770 shares Six months ended August 31, 2021

2

11,967,584 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2022

AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade
Notes and accounts receivable - trade, and contract assets
MerchandiseWork in process
Raw materials
Advance payments to suppliers
Other
Allowance for doubtful accounts
Total current assets

As of August 31, 2022

4,982,263
1,134,617–
104,507
132,460
240,012291,341
305,941(5,146)

3,697,953–
978,680
127,497
215,545
416,018
331,081
314,961(4,390)7,185,998

6,077,347

Non-current assets
Property, plant and equipment
Buildings, net

149,931140,057

Vehicles, net
furniture and fixtures, net
Construction in progress

3,592
90,0681,433

2,934
93,4691,433

Total property, plant and equipment

245,025

237,895

Intangible assets
Software
Software in progress
Goodwill
Other

153,736
69,95037,5906,441

200,767
178,383
20,241
7,957

Total intangible assets

267,718

407,349

741,078
1,295
152,951
198,166
31,010(37,131)

831,726281
131,366
200,960
29,913(37,131)1,087,371

1,157,116

1,600,115

1,802,361

8,786,113

7,879,709

Investments and other assets
Investment securities
Investments in capital of subsidiaries and associates
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets3

(Thousands of yen)
As of February 28, 2022
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Advances received
Contract liabilities
Provision for bonuses
Provision for product warranties
Other

As of August 31, 2022

370,447
89,539413,526
245,230
100,228–
259,854427
473,068

238,515–
393,864
70,913–
168,311129,948
427
277,523

Total current liabilities

1,952,322

1,279,503

Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Asset retirement obligations

1,191,212
7,952
35,014

993,684
10,59535,191

Other

6,602

7,098

1,240,781

1,046,569

Total liabilities

3,193,103

2,326,072

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

2,391,423
1,500,413
1,650,907(115,366)

2,392,665
1,501,656
1,547,395(297,166)

Total non-current liabilities

5,427,378

5,144,551

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

Total shareholders' equity

49,348
5,899
72,630124,655
32,203
209,302

Total accumulated other comprehensive income

127,877

366,162

Share acquisition rights
Total net assets
Total liabilities and net assets

437,75442,924

5,593,010

5,553,637

8,786,113

7,879,709

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)Consolidated statements of income (cumulative)(Thousands of yen)Six months ended
August 31, 2021

Six months ended
August 31, 2022

Net sales
Cost of sales

4,732,376
2,952,566

3,795,042
2,348,005

Gross profit

1,779,809

1,447,036

Selling, general and administrative expenses

1,576,909

1,495,865

Operating profit (loss)

202,900(48,828)

Non-operating income
Interest income
Foreign exchange gains
Other415
12,463
2,572

1,422
102,457
5,675

15,451

109,555

6,223
106,540

4,964
1,014

4,963

1,551

Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Other117,727

7,530

Ordinary profit

Total non-operating expenses

100,624

53,196Extraordinary income
Gain on sale of shares of subsidiaries and associates
Gain on change in equity

651,005
2,796––

Total extraordinary income

653,801–

Extraordinary losses
Impairment losses
Office relocation expenses

27,671
9,185––

Total extraordinary losses

36,857–

Profit before income taxes

717,568

53,196

Income taxes

154,882

37,405

Profit562,685

15,790Profit attributable to owners of parent

562,685

15,7905

Consolidated statements of comprehensive income (cumulative)(Thousands of yen)Six months ended
August 31, 2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of entities accounted
for using equity method

Six months ended
August 31, 2022

562,685

15,790(54,346)(3,505)40,74275,30726,304
136,672(158)–(17,268)

238,284

Comprehensive income

545,417254,074

Comprehensive income attributable toComprehensive income attributable to owners of parent

545,417254,074

Total other comprehensive income

6Consolidated statements of cash flows(Thousands of yen)Six months ended
August 31, 2021

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on sale of shares of subsidiaries and associates
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received
Decrease (increase) in advance payments to suppliers

Six months ended
August 31, 2022

717,568
345,373
17,34953,196
118,029
17,349106,540

1,014(651,005)
27,671
510(43,469)(207,019)(240,410)
448,070
131,730(348,616)––(755)(129,905)
155,937(279,708)(131,932)
68,083(39,739)

Other, net

113,864(182,357)

Subtotal

418,157(350,788)Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund

610(7,293)(38,727)
42,686

1,906(4,469)(271,874)
5,306

Net cash provided by (used in) operating activities

415,432(619,919)(70,280)(156,883)(100,000)(694,937)
2,332,800(142)(8,271)(204,263)(10,000)–––

Net cash provided by (used in) investing activities

1,310,555(222,535)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Purchase of treasury shares
Repayments of lease obligations
Dividends paid–
1,800,000(254,526)
8,416
–
(337)
(23,441)(89,539)–(217,190)
4(181,800)(445)(118,467)

Net cash provided by (used in) financing activities

1,530,111(607,439)

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sale of shares of subsidiaries and associates
Other, net

Effect of exchange rate change on cash and cash equivalents

47,014

165,583

Net increase (decrease) in cash and cash equivalents

3,303,113(1,284,310)

Cash and cash equivalents at beginning of period

2,050,141

4,982,263

Cash and cash equivalents at end of period

5,353,255

3,697,953

7