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 14, 2022

Company name:JNS HOLDINGS INC.
Stock exchange listing: Tokyo
Stock code:
Representative:

3627
URL https://www.jns.inc/
President & Representative Director

Inquiries:

Senior Managing Director, Member of the
Board

Masashi Ikeda
Takashi Nakano

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

May 27, 2022
May 30, 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

(03)6838-8800(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

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 to
Net 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
9,550
12.4
516 115.8
433
99.4
353
11.9
Year ended February 28, 2021
8,499
(21.4)
239(72.7)
217 (74.5)
315(44.3)
Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
28.28
6.6
5.5
5.4
25.65
6.3
2.8
2.8

Diluted earnings per
share

Yen
29.54
27.07

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
(3) Consolidated cash flows

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

Net assets

Equity ratio

Millions of yen
8,786
6,876

Millions of yen
5,593
5,232

Cash flows fromoperating activities
Millions of yen
775
(386)

Cash flows frominvesting activities
Millions of yen
981(1,811)

Net assets per share
%
63.2
75.6

Yen
465.64440.85

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
1,085
4,982
(193)
2,050

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)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

0.00
0.00

–
–

2.00
10.00

2.00
10.00

23
119

7.4
33.9

0.5
2.2

–

0.00

–

5.00

5.00

1

33.2

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 to
Net 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
260 (49.7)
250 (42.2)
180 (49.1)
15.08
4. 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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(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

12,140,400 shares As of February 28, 2021

11,793,800 shares

Number of treasury shares at the end of the period
As of February 28, 2022

210,105 shares As of February 28, 2021

105 shares

Average number of shares during the period
Year ended February 28, 2022

11,966,900 shares Year ended February 28, 2021

2

11,670,640 shares

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

As of February 28, 2022

AssetsCurrent assets
Cash and deposits

2,050,141

4,982,263

1,038,573
25,822

1,134,617
104,507

Work in process
Raw materials

35,636
217,487

132,460
240,012Advance payments to suppliers
Other

192,648439,755

291,341
305,941

Allowance for doubtful accounts(4,904)(5,146)

3,995,160

7,185,998

Property, plant and equipment
Buildings, net

133,856

149,931

Vehicles, net
furniture and fixtures, net

4,386
64,677

3,592
90,068Notes and accounts receivable - trade
Merchandise

Total current assets
Non-current assets

Construction in progress

1,544

1,433

204,464

245,025

Software
Software in progress

178,014
256,078

153,736
69,950Goodwill
Other72,2894,719

37,5906,441

Total intangible assets

511,102

267,718

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

77,924

741,078

1,702,948
1,212

–
1,295

Deferred tax assets
Guarantee deposits

151,696
238,870

152,951
198,166

Other
Allowance for doubtful accounts

30,073(37,131)31,010(37,131)

Total investments and other assets

2,165,595

1,087,371

2,881,162

1,600,115

6,876,322

8,786,113

Shares of subsidiaries and associates
Investments in capital of subsidiaries and associates

Total non-current assets
Total assets3

(Thousands of yen)
As of February 28, 2021

As of February 28, 2022

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings

350,252
200,000

370,447
89,539Current portion of long-term borrowings
Income taxes payable

149,742
48,142

413,526
245,230

Advances received
Provision for bonuses

127,297
204,846

100,228
259,854

Provision for product warranties
Other

427
376,396427
473,068

Total current liabilities

1,457,104

1,952,322

Non-current liabilities
Long-term borrowings

130,854

1,191,212

Deferred tax liabilities
Asset retirement obligations

14,81333,445

7,952
35,014

Other

7,329

6,602

Total non-current liabilities

186,443

1,240,781

1,643,547

3,193,103

Share capital
Capital surplus

2,378,899
1,487,890

2,391,423
1,500,413

Retained earnings
Treasury shares

1,287,666(76)

1,650,907(115,366)

Total shareholders' equity

5,154,380

5,427,378

41,48649,348Deferred gains or losses on hedges
Foreign currency translation adjustment

2,377
1,061

5,899
72,630Total accumulated other comprehensive income

44,925

127,877

33,46937,754

5,232,775

5,593,010

6,876,322

8,786,113

Total liabilities
Net assets
Shareholders' equity

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

Share acquisition rights
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)

Fiscal year ended

Fiscal year ended

February 28, 2021

February 28, 2022

Net sales
Cost of sales

8,499,614
5,942,948

9,550,536
6,185,075

Gross profit

2,556,666

3,365,461

Selling, general and administrative expenses

2,317,254

2,848,856

239,412516,604

40,153––41,072

Operating profit
Non-operating income
Subsidy income
Foreign exchange gains
Other

7,024

6,426

Total non-operating income

47,17747,499Interest expenses
Foreign exchange losses

12,076
15,795

12,142–

Share of loss of entities accounted for using equity method
Other38,312
3,235

107,558
11,261Non-operating expenses

Total non-operating expenses

69,419130,962

217,170

433,141––

2,999
636,850

Gain on change in equity
Gain on reversal of share acquisition rights

9,924
2,367

2,796
–

Total extraordinary income

12,292642,646

Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates

Extraordinary losses
Impairment losses

10,71747,609––395,546
9,185

10,717452,341

Profit before income taxes

218,745

623,446

Income taxes - current
Income taxes - deferred

56,285(153,595)

301,973(32,025)

Total income taxes(97,309)269,948

Profit316,055

353,498

Loss on valuation of investment securities
Office relocation expenses
Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5

78

–

315,976

353,498

Consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended
February 28, 2021

Fiscal year ended
February 28, 2022

Profit316,055

353,498

Other comprehensive income
Valuation difference on available-for-sale securities(23,062)

7,861

Deferred gains or losses on hedges
Foreign currency translation adjustment

1,881
3,689

3,522
70,784

Share of other comprehensive income of entities accounted
for using equity method

(784)

(158)

(18,274)

82,010297,780

435,508

297,701

435,50878–

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended February 28, 2021

(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

2,376,544

1,440,163

2,355

2,355

Total shareholders'equityTreasury shares

1,006,140(21)

4,822,827

Changes during period
Issuance of new shares

4,710

Dividends of surplus(34,450)(34,450)

Profit attributable to owners ofparent315,976

315,976

Purchase of treasury shares

(54)

(54)

Change in scope of consolidation–

Change in ownership interest ofparent due to transactions with noncontrolling interests

45,37145,371

Net changes in items other thanshareholders' equity–

Total changes during period
Balance at end of period

2,355

47,726

281,526(54)

331,553

2,378,899

1,487,890

1,287,666(76)

5,154,380

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges64,548495

Foreigncurrencytranslation
adjustment(1,844)

Total
accumulated
othercomprehensive
income63,200Share
acquisitionrights

Noncontrollinginterests

Total net assets

17,32945,252

4,948,609

Changes during period
Issuance of new shares

4,710

Dividends of surplus(34,450)

Profit attributable to owners ofparent315,976

Purchase of treasury shares(54)

Change in scope of consolidation–

Change in ownership interest ofparent due to transactions with noncontrolling interests
Net changes in items other thanshareholders' equity

45,371(23,062)

1,881

2,905

(18,274)

16,140(45,252)(47,387)

Total changes during period(23,062)

1,881

2,905

(18,274)

16,140(45,252)

284,165

Balance at end of period

41,486

2,377

1,061

44,92533,469–5,232,775

7

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

Capital surplus

Retained earnings

2,378,899

1,487,890

12,523

12,523

Treasury shares

1,287,666

Total shareholders'equity(76)

5,154,380

Changes during period
Issuance of new shares

25,047

Dividends of surplus(23,587)(23,587)

Profit attributable to owners ofparent353,498

353,498

Purchase of treasury shares(115,290)

Change in scope of consolidation(115,290)

33,32933,329Change in ownership interest ofparent due to transactions with noncontrolling interests
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

12,523

12,523363,241(115,290)

272,998

2,391,423

1,500,413

1,650,907(115,366)

5,427,378

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
income41,486

2,377

1,061

44,925

Shareacquisitionrights33,469Noncontrollinginterests

Total net assets–

5,232,775

Changes during period
Issuance of new shares

25,047

Dividends of surplus(23,587)

Profit attributable to owners ofparent353,498

Purchase of treasury shares(115,290)

Change in scope of consolidation

33,329Change in ownership interest ofparent due to transactions with noncontrolling interests
Net changes in items other thanshareholders' equity

7,861

3,522

71,56882,952

4,285

Total changes during period

7,861

3,522

71,56882,952

4,285–

360,235

Balance at end of period

49,348

5,899

72,630127,877

37,754–

5,593,010

8

87,237

Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
February 28, 2021

Fiscal year ended
February 28, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation

218,745
204,592

623,446
443,495

Impairment losses
Amortization of goodwill

10,717
34,69847,60934,698

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

(570)
3,128

241
55,007

Increase (decrease) in provision for product warranties
Loss (gain) on sale of investment securities

(372)
–

–
(2,999)Loss (gain) on sale of shares of subsidiaries and associates
Loss (gain) on valuation of investment securities––(636,850)
395,546

Share of loss (profit) of entities accounted for using equity
method38,312

107,558

Gain on reversal of share acquisition rights
Loss (gain) on change in equity(2,367)(9,924)–(2,796)

Decrease (increase) in trade receivables
Decrease (increase) in inventories

190,339
191,050(96,044)(200,451)

Increase (decrease) in trade payables
Increase (decrease) in advances received(456,891)(1,053,828)

20,194(27,068)

Decrease (increase) in advance payments to suppliers
Other, net

605,167(97,631)(98,693)
165,720

Subtotal(124,835)

828,615Interest and dividends received
Interest paid

2,266
(11,482)

1,310(13,045)

Income taxes paid
Income taxes refund(265,407)
13,449(84,668)
43,391

Net cash provided by (used in) operating activities(386,009)

775,604

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sale of shares of subsidiaries and associates
Payments for investments in capital of subsidiaries and(39,935)(74,604)(356,593)(10,113)(224,754)(400,000)–(1,425,297)

3,000(694,937)–

2,332,800

associates
Proceeds from liquidation of subsidiaries and associates(2,000)(2,000)27,354–

Proceeds from collection of loans receivable
Payments of guarantee deposits

615(5,875)––

Proceeds from refund of guarantee deposits
Other, net

85–

43,541(1,865)(1,811,760)

981,180

Net cash provided by (used in) investing activities

9(Thousands of yen)
Fiscal year ended
February 28, 2021

Fiscal year ended
February 28, 2022

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

50,012100,000(111,994)
1,800,000

Repayments of long-term borrowings
Proceeds from issuance of shares(310,658)
4,710(475,858)
12,449Purchase of treasury shares
Repayments of lease obligations(54)(2,937)(115,290)(626)

Dividends paid

(34,256)(23,441)

Net cash provided by (used in) financing activities(193,184)

1,085,239

Effect of exchange rate change on cash and cash equivalents(17,924)

90,098Net increase (decrease) in cash and cash equivalents(2,408,879)

2,932,122

Cash and cash equivalents at beginning of period

4,459,020

2,050,141

Cash and cash equivalents at end of period

2,050,141

4,982,263

10