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 Three Months Ended May 31, 2023
(Based on Japanese GAAP)
July 14, 2023
Company name:JNS HOLDINGS INC.
Stock exchange listing: Tokyo
Stock code:3627
URL https://www.jns.inc/
Representative:
President & Representative Director
Inquiries:
Corporate Planning Department Director
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:Masashi Ikeda
Satoru Fujishiro
July 14, 2023
–YesNoTEL(03)6838-8800(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended May 31, 2023 (from March 1, 2023 to May 31, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profitOrdinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Three months ended May 31, 2023
1,816
(3.7)
(140)
–(94)
–(71)
–
Three months ended May 31, 2022
1,887
32.9(41)–
2–(14)–
Earnings per share

Diluted earnings per share

Yen(6.08)(1.21)

Three months ended May 31, 2023
Three months ended May 31, 2022

Yen––(2) Consolidated financial position
Total assets
As of May 31, 2023
As of February 28, 2023

Net assets

Millions of yen
7,637
8,021

Equity ratio

Millions of yen
5,558
5,593

Net assets per share%
72.1
69.1

Yen
471.01474.68

2. Cash dividends
Annual dividends per share

Year ended February 28, 2023
Year ending February 29, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen–
–

Yen
0.00

Yen–

Yen
5.00

Yen
5.00

0.00

–

6.00

6.00

Year ending February 29, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 29, 2024 (from March 1, 2023 to February 29, 2024)
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
Six months ending
4,230
11.5––
20 (62.4)15(5.0)1.28
August 31, 2023
Full year
10,200
17.8
––
500
29.4
360
36.9
30.82

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4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2023
(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:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo
No
No

(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of May 31, 2023

12,346,000 shares As of February 28, 2023

12,339,500 shares

Number of treasury shares at the end of the period
As of May 31, 2023

660,105 shares As of February 28, 2023

660,105 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2023

11,684,906 shares Three months ended May 31, 2022

2

11,930,881 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2023

As of May 31, 2023

AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade, and contract assets
Merchandise and finished goods
Work in process
Raw materials
Short-term loans receivable from subsidiaries andassociates
Advance payments to suppliers
Other2,983,960
1,705,890
317,461
246,024
354,499

3,062,021
1,062,448
244,055
299,361
267,061

100,000–

98,507354,646

167,741
419,499

Total current assets

6,160,990

5,522,189

128,712
1,732
78,393
1,433

152,1152,152
77,598
1,433

Non-current assets
Property, plant and equipment
Buildings, net
Vehicles, netfurniture and fixtures, net
Construction in progress

210,272

233,299

Intangible assets
Software
Software in progress
Goodwill
Other

Total property, plant and equipment

211,522329,524
2,891
7,573

345,992
373,936–
8,195

Total intangible assets

551,511728,124

717,300–
182,156
207,90928,882(37,131)

792,003
118
181,221
189,289
28,575(37,131)1,099,116

1,154,077

1,860,900

2,115,502

8,021,890

7,637,692

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, 2023
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for product warranties
Other

As of May 31, 2023

357,787

228,061

399,016
5,866
128,840
215,515
40,637435,505

389,964
2,334
179,346
61,83520,994451,114

Total current liabilities

1,583,169

1,333,651Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Asset retirement obligations
Other792,196
10,95535,3686,236

703,080
1,658
35,458
5,443

Total non-current liabilities

844,755

745,640

Total liabilities

2,427,924

2,079,291

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

2,403,000
1,511,991
1,794,478(297,166)

2,403,345
1,512,335
1,664,727(297,166)

5,412,304

5,283,241

Total shareholders' equity
Accumulated other comprehensive incomeValuation difference on available-for-sale securities

10,25075,852

Deferred gains or losses on hedges
Foreign currency translation adjustment(22,173)
143,538

3,119
142,003

Total accumulated other comprehensive income

131,615

220,975

50,045–53,763419

5,593,965

5,558,400

8,021,890

7,637,692

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Three months ended
May 31, 2022

Three months ended
May 31, 2023

Net sales
Cost of sales

1,887,092
1,210,847

1,816,785
1,231,627

Gross profit

676,245585,157

Selling, general and administrative expenses

718,210725,268

Operating loss(41,965)(140,111)

Non-operating income
Foreign exchange gains
Other

45,223
2,427

44,831
4,075

47,651

48,906

2,589
505
255

1,855
–
1,225

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

3,350

3,080

2,335

(94,284)

Profit (loss) before income taxes

2,335(94,284)

Income taxes

16,811(21,669)

Loss(14,476)(72,615)–(1,516)(14,476)(71,099)

Ordinary profit (loss)

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

5Consolidated statements of comprehensive income (cumulative)(Thousands of yen)Three months ended
May 31, 2022
Loss
Other comprehensive income

Three months ended
May 31, 2023

(14,476)(72,615)

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

26,49015,56288,50165,602
25,292(1,534)

Total other comprehensive income

130,553

89,359116,077

16,744116,077

18,260–(1,516)Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6