[Translation]
Note: This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
(Under Japanese GAAP)May 12, 2021
Company Name Kakuyasu Group Co., Ltd.
Listing
Tokyo Stock Exchange
Ticker Code7686
URL
https://www.kakuyasu-group.co.jp/
Representative Junichi Satou, Representative Director and President
Inquiries
Yoshiyuki Maegaichi, DirectorTelephone+81-3-5959-3088
Scheduled date of annual general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report：
Preparation of supplementary material on financial results:

June 25, 2021
June 11, 2021
June 28, 2021
Yes
Yes(For institutional investors andsecurities analysts)

Holding of financial results briefing:(JPY amounts are rounded down to million, unless otherwise noted.)
1. Consolidated financial results for the fiscal year ended March 31, 2021（From April 1,2020 to March 31, 2021）（Percentages indicate year-on-year changes.)(1) Consolidated operating results (cumulative)
Sales

Operating profit

Profit attributable to ownersof parent

Ordinary profit

Fiscal year ended

JPY million％

JPY million％

JPY million％

JPY million

March 31, 2021

80,226△26.1△2,602－△1,728－△1,601－March 31, 2020

108,562

△0.1

1,259

△29.2

1,259

△30.3

513

△31.2

Note: Comprehensive income For the fiscal year ended March 31, 2021:
For the fiscal year ended March 31, 2020:
Basic earnings
per share

Diluted earnings
per share¥ △1,611 Million¥328 Million[－％][△53.2％]

Ratio of ordinary profit
to total assets

Return on equity％

Ratio of operating
profit to net sales

Fiscal year ended

JPYJPY％％％

March 31, 2021

△206.89－

△50.0

△6.2

△3.2

March 31, 2020

69.86

67.47

10.4

4.4

1.2

Reference:

Note:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended
March 31, 2021
JPY－
For the fiscal year ended
March 31, 2020
JPY－

millionmillionRegarding diluted net income per share for the fiscal year ending March 31, 2020, the Company's shares were listed on the Second
Section of the Tokyo Stock Exchange on December 23, 2019, and the Company's shares were listed on the Second Section of theTokyo Stock Exchange on December 23, 2019. The average stock price up to the end of the fiscal year is considered the averagestock price during the period. In addition, diluted net income per share for the fiscal year ending March 31, 2021 is not stated as it
is a net loss per share, although there are diluted shares.

(2) Consolidated financial position
Total assets
As ofMarch 31, 2021
March 31, 2020
Reference: Equity

Net assets

Equity-to-asset ratio

Net assets per share

JPY million

JPY million％JPY

26,994

3,212

11.9

413.13

5,162

18.1

671.0228,472As of March 31, 2021:
As of March 31, 2020:

JPY 3,212 million
JPY 5,162 million- 1 -(3) Consolidated cash flows
Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents
at end of period

Fiscal year ended

JPY million

JPY million

JPY million

JPY million

March 31, 2021

△1,634△1,385

2,055

2,525

March 31, 2020

1,945△1,195899

3,489

2. Cash dividends
Annual dividends per shareFirst quarterSecond
endquarter-end
Fiscal year
ended March 31,2020
Fiscal year
ending March31, 2021
Fiscal year
endingMarch 31, 2022
(Forecast)
Note:

Third
quarter-end

Fiscalyear-end

Total

Total cash
dividends(Total)Payout ratio(Consolidated)

Ratio ofdividends tonet assets(Consolidated)

JPY

JPY

JPY

JPY

JPY

JPY million

%%

－

24.90

－

24.90

49.80

371

71.3

7.6－

24.90

－

24.90

49.80

386－

9.2－

24.90

－

24.90

49.80

－

The dividend payout ratio for the fiscal year ending March 2021 is not stated because a net loss was recorded.

（From April 1,2021 to March
3. Consolidated financial results for the fiscal year ending March 31, 2022（Forecast）
31, 2022）（Percentages indicate year-on-year changes.）
Sales

Fiscal year ending
September 30, 2021
Fiscal year ending
March 31, 2022

Operating profit

JPY million％

48,80325.3

104,079

29.7

JPY million

Profit attributable toowners of parent

Ordinary profit

Earnings
per share％

JPY million％

JPY million％

JPY△657-△642-△421-△54.1352-41-

106-

13.63

※ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation)：Yes
New：4companies (Sanno Co., Ltd. Kakuyasu Co., Ltd. Dangami Co., Ltd. Meiwa Bussan Co., Ltd.)
Excluded：1company (KY Management Co., Ltd.)(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations：No(ii) Changes in accounting policies due to other reasons：No(iii) Changes in accounting estimates：No(iv) Restatement: No(3) Number of issued shares (common shares)(i)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2021

7,777,200

shares

As of March 31, 2020

7,693,400

shares

As of March 31, 2021－

shares

As of March 31, 2020－

shares(ii) Number of treasury shares at the end of the period- 2 -(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscalyear)
Fiscal year ended March 31, 2021

7,740,782

sharesFiscal year ended March 31, 2020

7,344,644

shares※ Financial results reports are exempt from audit conducted by certified public accountants or an auditcorporation.
※ Proper use of earnings forecasts, and other special matters
Statements regarding the future, such as business performance forecasts, contained in this material are basedon information currently available to the Company and certain assumptions that the Company deems to bereasonable, and are based on the Company's commitment to achieving them. It's not a thing. In addition, actual
results may differ significantly due to various factors.

- 3 -4. Consolidated Financial Statements and major notes(1) Consolidated Balance Sheets（JPY million）
As of March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
Accounts receivable - others
Income taxes refund receivable
OthersAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
GoodwillSoftware
Leased assets
OthersTotal intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Leasehold and guarantee deposits
Long-term prepaid expenses
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 4 -As of March 31, 2021

3,489
6,843
4,290
1,191
4
390
△85
16,123

2,525
4,745
3,610
1,180
629
1,069
△26
13,733

3,376
0
178
2,997
8
161
6,723

3,516
0
209
3,002
2－
6,732

12733
35821,106

1,485
664
203
3
2,357

589
689
2,453
660
249
△124
4,518
12,34828,472

511
833
2,157
528
273
△133
4,171
13,26026,994

（JPY million）
As of March 31, 2020
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses
Asset retirement obligations
OthersTotal current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 5 -As of March 31, 2021

12,569
4,864
186
341
323
13
1,911
20,211

10,079
5,614
164
52
329
16
2,278
18,535

1,983
181
77
－687
168
3,098
23,310

4,166
39
76
101
694
168
5,246
23,781

355
615
4,056
5,027

379638
2,070
3,087

135

125

135
5,162
28,472125
3,212
26,994

(2) Consolidated Statements of Income and Comprehensive Income（Consolidated Statements of Income）（JPY million）
Fiscal year ended
March 31, 2020
Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Commission income
Subsidy income
OthersTotal non-operating income
Non-operating expenses
Interest expenses
OthersTotal non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Impairment losses
OthersTotal extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - refund
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to owners of parent- 6 -Fiscal year ended
March 31, 2021

108,56287,04721,514
20,255
1,259

80,226
63,376
16,85019,452△2,602

910－
21
41

99804
98922

30
1141
1,259

39
949
△1,728161644－381
1383
892433－△54379513513

65980164△1,888
46
△341
7△287
△1,601△1,601

（Consolidated Statements of Comprehensive Income)（JPY million）
Fiscal year ended
March 31, 2020
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income（Comprehensive income attributable to）
Comprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests- 7 -Fiscal year ended
March 31, 2021
513

△1,601△184△184328△9△9△1,611

328△1,611－－

(3) Consolidated Statement of Changes in Equity
Previous consolidated fiscal year (April 1, 2019 to March 31, 2020)（JPY million）
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

Total
shareholders'equity

100359

3,903

4,363

Issuance of new shares

255

255

－

511

Dividends of surplus

－－

△360

△360

Profit (loss) attributable toowners of parent

－

－513

513

Net changes in items otherthan shareholders' equity－－－－

Total changes during period

255

255

152664

Balance at end of period

355

615

4,056

5,027

Accumulated other comprehensive
incomeValuation
Total accumulateddifference on
otheravailable-for-salecomprehensive
securities
incomeTotal net assets

Changes during period

Balance at beginning of period

319

319

4,682

Issuance of new shares－－511

Dividends of surplus

－－

△360

Profit (loss) attributable toowners of parent

－

－

513

Net changes in items otherthan shareholders' equity

△184

△184

△184

Total changes during period△184△184479

135

135

5,162

Changes during period

Balance at end of period- 8 -Current consolidated fiscal year (April 1, 2020 to March 31, 2021)（JPY million）
Shareholders' equity
Capital surplus

Retained earnings

Total
shareholders'equity

355615

4,056

5,027

Issuance of new shares

2323－

46

Dividends of surplus

－－

△384

△384

Profit (loss) attributable toowners of parent－－△1,601△1,601

Net changes in items otherthan shareholders' equity－－－－

Total changes during period

23

23△1,986△1,939Balance at end of period

379

638

2,070

3,087

Accumulated other comprehensive
incomeValuationTotal accumulateddifference on
otheravailable-for-salecomprehensive
securities
incomeTotal net assets

Share capital
Balance at beginning of period
Changes during period

Balance at beginning of period

135

135

5,162

Issuance of new shares－－

46

Dividends of surplus

－－

△384

Profit (loss) attributable toowners of parent－－△1,601

Net changes in items otherthan shareholders' equity△9△9△9Total changes during period△9△9△1,949

Balance at end of period

125

125

3,212

Changes during period- 9 -(4) Consolidated statement of cash flows（JPY million）
Fiscal year ended
March 31, 2020
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Share issuance costs
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Interest and dividend income
Subsidy income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - otherOthers, net
SubtotalInterest and dividends received
Subsidies received
Interest paid
Income taxes refund
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of non-current assets
Proceeds from sale of investment securities
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Payments for asset retirement obligations
Purchase of shares of subsidiaries resulting in change
in scope of consolidationOthers, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Proceeds from issuance of shares
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 10 -Fiscal year ended
March 31, 2021

892
7013381△16－443△44△17－30
1,919△75132△1,157△202392,634
17－
△30
1△677
1,945

△1,888684
5298△365－△62△26△9△804
392,735
889
386△3,368△368△83△1,664
9541△384△486△1,634△1,17928△27△4128△4314486△9△27－△1,390△21△1,195△6△1,385

1,636－
△682
△201
417

394
3,013
△825
△188－

8946△360
899
1,648
1,840
3,489

△384
2,055
△964
3,4892,525