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, 2023
(Based on Japanese GAAP)
April 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 of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:
Holding of financial results meeting:Masashi Ikeda
Satoru Fujishiro
TEL (03)6838-8800
May 24, 2023
May 25, 2023
May 25, 2023
Yes
Yes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended February 28, 2023 (from March 1, 2022 to February 28, 2023)(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, 2023
8,659
(9.3)
180
(65.0)
386(10.8)
262(25.6)
Year ended February 28, 2022
9,550
12.4
516 115.8
433
99.4
353
11.9

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
21.81
4.7
4.6
2.1
28.28
6.6
5.5
5.4

Diluted earnings per
share

Yen
22.45
29.54

Year ended February 28, 2023
Year ended February 28, 2022
(2) Consolidated financial position

Total assets
As of February 28, 2023
As of February 28, 2022

Net assets

Equity ratio

Millions of yen
8,021
8,786

Millions of yen
5,593
5,593

Cash flows fromoperating activities
Millions of yen
(699)
775

Cash flows frominvesting activities
Millions of yen
(601)
981

Net assets per share
%
69.1
63.2

Yen
474.68465.64(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
(783)
2,983
1,085
4,982

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended February 28, 2022
Year ended February 28, 2023
Year ending February 29, 2024
(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

–
–

10.00
5.00

10.00
5.00

119
58

33.9
22.3

2.2
1.1

–

0.00

–

6.00

6.00

1

19.5

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 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
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
4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2023
(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:
Yes
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
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, 2023

12,339,500 shares As of February 28, 2022

12,140,400 shares

Number of treasury shares at the end of the period
As of February 28, 2023

660,105 shares As of February 28, 2022

210,105 shares

11,707,241 shares Year ended February 28, 2022

11,966,900 shares

Average number of shares during the period
Year ended February 28, 2023

2

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

As of February 28, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Contract assets
Merchandise and finished goods
Work in process
Raw materials
Short-term loans receivable from subsidiaries andassociates
Advance payments to suppliers
Other
Allowance for doubtful accounts

4,982,263
1,134,617–
121,943
132,460
240,0122,983,960
1,282,284
423,605
317,461
246,024
354,499–

100,000

291,341
288,504(5,146)

98,507354,646–

Total current assets

7,185,998

6,160,990

149,931
3,592
90,068
1,433

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

245,025

210,272

153,736
69,95037,590211,522329,524
2,891

Non-current assets
Property, plant and equipment
Buildings, net
Vehicles, net
furniture and fixtures, net
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Software in progress
Goodwill
Other
Total intangible assets
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 assets

3

6,441

7,573

267,718

551,511741,078
1,295
152,951
198,166
31,010(37,131)717,300–
182,156
207,90928,882(37,131)1,087,371

1,099,116

1,600,115

1,860,900

8,786,113

8,021,890

(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 February 28, 2023

370,447

357,787

89,539413,526
245,230
100,228–
259,854427
473,068–
399,016
5,866–
128,840
215,515
40,637435,505

Total current liabilities

1,952,322

1,583,169

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

1,191,212
7,952
35,014
6,602

792,196
10,95535,368
6,236

Total non-current liabilities

1,240,781

844,755

Total liabilities

3,193,103

2,427,924

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

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

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

5,427,378

5,412,304

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
72,630

10,250(22,173)
143,538

Total accumulated other comprehensive income

127,877

131,615

Share acquisition rights
Total net assets
Total liabilities and net assets

437,75450,0455,593,010

5,593,965

8,786,113

8,021,890

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
February 28, 2022

Fiscal year ended
February 28, 2023

Net sales

9,550,536

8,659,226

Cost of sales

6,185,075

5,565,684

Gross profit

3,365,461

3,093,542

Selling, general and administrative expenses

2,848,856

2,912,963

Operating profit

516,604

180,578

Non-operating income
Foreign exchange gains
Other

41,072
6,426

207,300
12,18647,499219,486

12,142
118,820

9,273
4,300

Total non-operating income
Non-operating expenses
Interest expenses
Other

130,962

13,573

Ordinary profit

Total non-operating expenses

433,141

386,491

Extraordinary income
Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates
Gain on change in equity
Gain on reversal of share acquisition rights

2,999
636,850
2,796
–

–
–
–
313

642,646313

47,609395,546
9,185

17,368–35,382–37,364

Total extraordinary income
Extraordinary losses
Impairment losses
Loss on valuation of investment securities
Office relocation expenses
Settlement money paid

452,341

90,115

Profit before income taxes

Total extraordinary losses

623,446

296,689

Income taxes - current
Income taxes - deferred

301,973(32,025)

53,948(20,133)

Total income taxes

269,948

33,814

Profit353,498

262,874

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

5

–

–

353,498

262,874

Consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended
February 28, 2022
ProfitOther comprehensive income

Fiscal year ended
February 28, 2023

353,498

262,874

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

7,861
3,522
70,784(39,097)(28,680)
70,908(158)–

Total other comprehensive income

82,0103,130

435,508

266,004

435,508

266,004––

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, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,378,899

1,487,890

12,523

12,523Retained earnings

Treasury shares

1,287,666(76)

Total shareholders'equity5,154,380

Changes during period
Issuance of new shares

25,047

Dividends of surplus
Profit attributable to owners ofparent(23,587)(23,587)

353,498

353,498

Purchase of treasury shares(115,290)

Change in scope of consolidation

33,329(115,290)
33,329Net 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
Valuationdifference on
Deferred gains oravailable-for-sale losses on hedges

Foreign currency

Total
accumulatedtranslation
adjustment

othercomprehensive

securities
Balance at beginning of period

41,486

Share acquisitionrightsTotal net assets

income
2,377

1,061

44,92533,4695,232,775

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
Net changes in items other than

33,329
7,861

3,522

71,56882,952

4,285

87,237

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

shareholders' equity

7

Fiscal year ended February 28, 2023
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,391,423

1,500,413

11,577

11,577Retained earnings

Treasury shares

1,650,907(115,366)

Total shareholders'equity5,427,378

Changes during period
Issuance of new shares

23,154

Dividends of surplus(119,302)(119,302)

Profit attributable to owners ofparent262,874

262,874

Purchase of treasury shares(181,800)(181,800)

Change in scope of consolidation
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

11,577

11,577

143,571(181,800)(15,073)

2,403,000

1,511,991

1,794,478(297,166)

5,412,304

Accumulated other comprehensive income
Total

Valuationdifference on

Foreign currency
Deferred gains ortranslation
available-for-sale losses on hedges
adjustment
securities
Balance at beginning of period

49,348

5,899

72,630accumulated
otherShare acquisitionrightsTotal net assets

comprehensive
income127,877

37,754

5,593,010

Changes during period
Issuance of new shares

23,154

Dividends of surplus(119,302)

Profit attributable to owners of

262,874

parentPurchase of treasury shares(181,800)

Change in scope of consolidation
Net changes in items other thanshareholders' equity(39,097)(28,073)

Total changes during period(39,097)(28,073)

Balance at end of period

10,250(22,173)

70,9088

3,737

12,291

16,02970,9083,737

12,291

955

143,538

131,61550,0455,593,965

Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
February 28, 2022
Cash flows from operating activities
Profit before income taxes

Fiscal year ended
February 28, 2023

623,446

296,689

Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties
Loss (gain) on sale of investment securities
Loss (gain) on sale of shares of subsidiaries and associates
Loss (gain) on valuation of investment securities
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on change in equity
Relocation expenses
Settlement money paid
Decrease (increase) in trade receivables
Decrease (increase) in trade receivables , and contract assets
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received
Increase (decrease) in contract liabilities
Decrease (increase) in advance payments to suppliers
Other, net

443,495
47,60934,698241
55,007–(2,999)(636,850)
395,546

240,259
17,36834,698(5,146)(44,339)
40,210–––107,558

1,295(2,796)––(96,044)–(200,451)
20,194(27,068)–(98,693)
165,720–
35,38237,364–(571,272)(277,048)(12,660)–
28,612
192,834(277,350)

Subtotal

828,615(263,101)Interest and dividends received
Interest paid
Settlement paid
Income taxes paid
Income taxes refund

1,310(13,045)–(84,668)
43,391

2,762(8,920)(37,364)(393,189)–

Net cash provided by (used in) operating activities

775,604(699,812)(74,604)(224,754)(400,000)
3,000(694,937)
2,332,800–
43,541(3,865)(11,519)(471,784)(18,000)–––(100,000)––

981,180(601,303)

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
Loan advances to subsidiaries and associates
Proceeds from refund of guarantee deposits
Other, net
Net cash provided by (used in) investing activities

9(Thousands of yen)
Fiscal year ended
February 28, 2022
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended
February 28, 2023

(111,994)(89,539)

Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Purchase of treasury shares
Repayments of lease liabilities
Dividends paid

1,800,000(475,858)
12,449(115,290)(626)(23,441)–(413,526)
20,674(181,800)(923)(118,596)

Net cash provided by (used in) financing activities

1,085,239(783,710)

Effect of exchange rate change on cash and cash equivalents

90,09886,524

Net increase (decrease) in cash and cash equivalents

2,932,122(1,998,303)

Cash and cash equivalents at beginning of period

2,050,141

4,982,263

Cash and cash equivalents at end of period

4,982,263

2,983,960

10