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.

[Delayed]Consolidated Financial Results
for the Year Ended December 31, 2022
(Based on Japanese GAAP)
February 13, 2023
Company name:AMITA HOLDINGS Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
2195
Representative:
Inquiries:

URL

https://www.amita-hd.co.jp/

Chairman and Chief Executive Officer
Chief Financial Officer

Eisuke Kumano
Shinichi Karakama

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

March 23, 2023
March 23, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

March 24, 2023
Yes

Holding of financial results meeting:

Yes

TEL

03-5296-9371(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended December 31, 2022 (from January 1, 2022 to December 31, 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 December 31, 2022
4,824
–
609
8.9
715
13.7
531
(16.1)
Year ended December 31, 2021
5,157
11.9
560
93.3
629 115.3
632
62.8
Note: Comprehensive income

Year ended December 31, 2022

¥563 million[(12.8)%]Year ended December 31, 2021

¥646 million[68.0%]

Earnings per share

Year ended December 31, 2022
Year ended December 31, 2021

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
30.22
30.8
15.5
12.6
–
55.9
14.4
10.9

Diluted earnings per
share

Yen
30.29
36.08

Reference: Share of loss (profit) of entities accounted for using equity method
Year ended December 31, 2022
Year ended December 31, 2021

¥108 million¥76 million

Notes: 1. The Company carried out a 5-for-1 stock split of its common shares as of January 1, 2022 and a 3-for-1 stock split of its commonshares as of October 1, 2022. Under the assumption that such stock splits were implemented at the beginning of the previous fiscal year,
the Company calculates “earnings per share” and “diluted earnings per share.”
2. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant
ASBJ regulations from the beginning of the fiscal year under review, and the figures for the year ended December 31, 2022 are thoseafter applying the accounting standard and relevant ASBJ regulations. Because this will have a significant impact on net sales, the yearon-year percentage change in net sales is not shown.
(2) Consolidated financial position
Total assets
As of December 31, 2022
As of December 31, 2021
Reference: Equity

Millions of yen
4,824
4,427
As of December 31, 2022

Net assets
Millions of yen
2,001
1,455

Equity ratio

Net assets per share
%
41.4
32.9

Yen
113.6982.97¥1,995 million

As of December 31, 2021
¥1,455 million
Notes: 1. The Company carried out a 5-for-1 stock split of its common shares as of January 1, 2022 and a 3-for-1 stock split of its commonshares as of October 1, 2022. Under the assumption that such stock splits were implemented at the beginning of the previous fiscal year,
the Company calculates “net assets per share.”2. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant
ASBJ regulations from the beginning of the fiscal year under review, and the figures as of December 31, 2022 are those after applying
the accounting standard and relevant ASBJ regulations.
(3) Consolidated cash flows

Year ended December 31, 2022
Year ended December 31, 2021

Cash flows fromoperating activities
Millions of yen
585
873

Cash flows frominvesting activities
Millions of yen
(69)
(73)

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
(142)
1,779
(649)
1,390

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

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

–
–

30.00
3.00

30.00
3.00

35
52

5.5
9.9

3.1
3.1

–

0.00

–

4.00

4.00

Year ended December 31, 2021
Year ended December 31, 2022
Year ending December 31, 2023
(Forecast)

11.3

Note: The Company carried out a 5-for-1 stock split of its common shares as of January 1, 2022 and a 3-for-1 stock split of its common shares asof October 1, 2022. Regarding the year ended December 31, 2021, the Company states the actual dividend amount before such stock splits.
Dividends per share for the year ended December 31, 2021 would amount to ¥2.00 per share with the effect of the stock splits as of January
1, 2022 and October 1, 2022.
Reference: Annual dividends without the effect of the stock splits

Year ended December 31, 2022
Forecast for the year ending December 31, 2023

¥45.00¥60.003. Forecast of consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 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
5,283
9.5
774
27.0
887
24.0
620
16.6
35.37
4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 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:
Yes
No
No

Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
Restatement of prior period financial statements:
Note: For details, please refer to “3. Consolidated financial statements and primary notes, (5) Notes to consolidated financial statements,(Changes in accounting policies)” on page 14 of the attached document.
(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022

17,551,360 shares As of December 31, 2021

17,541,360 shares

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

3,890 shares As of December 31, 2021

3,765 shares

Average number of shares during the period
Year ended December 31, 2022
17,538,334 shares Year ended December 31, 2021
17,538,153 shares
Note: The Company carried out a 5-for-1 stock split of its common shares as of January 1, 2022 and a 3-for-1 stock split of its common shares asof October 1, 2022. Under the assumption that such stock splits were implemented at the beginning of the previous fiscal year, theCompany calculates “total number of issued shares at the end of the period,” “number of treasury shares at the end of the period,” and“average number of shares during the period.”Reference: Overview of non-consolidated financial results
Non-consolidated financial results for the year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)(1) Non-consolidated operating results
Percentages represent year-on-year changes
Operating revenue
Year ended December 31, 2022
Year ended December 31, 2021

Millions of yen
760
665

%
14.4
23.9

Operating profit
Millions of yen%
17 (47.3)
32 223.9

Ordinary profit
Millions of yen
2
22

Profit%(87.9)–

Millions of yen
(16)
692

%
–
–

Diluted earnings per
share
Yen
Yen
Year ended December 31, 2022
(0.92)(0.91)
Year ended December 31, 2021
39.48–
Note: The Company carried out a 5-for-1 stock split of its common shares as of January 1, 2022 and a 3-for-1 stock split of its common shares asof October 1, 2022. Under the assumption that such stock splits were implemented at the beginning of the previous fiscal year, theCompany calculates “earnings per share” and “diluted earnings per share.”Earnings per share(2) Non-consolidated financial position
Total assets
As of December 31, 2022
As of December 31, 2021
Reference: Equity

Millions of yen
2,449
2,586

As of December 31, 2022

Net assets
Millions of yen
1,016
1,050

Equity ratio

Net assets per share
%
41.3
40.6

Yen
57.59
59.88

¥1,010 million

As of December 31, 2021
¥1,050 million
Note: The Company carried out a 5-for-1 stock split of its common shares as of January 1, 2022 and a 3-for-1 stock split of its common shares asof October 1, 2022. Under the assumption that such stock splits were implemented at the beginning of the previous fiscal year, theCompany calculates “net assets per share.”Notes:
1. Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
2. Explanation on proper use of earnings forecast, and other special matters
Earnings forecast and other forward-looking statements in this material are based on data currently available to the Company and certain
assumptions that the Company believes are reasonable. The Company gives no assurance that the Company will achieve such forecasts. In
addition, actual results may differ significantly from these forecasts due to various factors. For details of the assumptions used in the earnings
forecast and a cautionary note regarding their appropriate use, please refer to “1. Overview of operating results and others, (4) Businessoutlook” on page 3 of the attached document.
(Obtaining supplementary materials on financial results)
The Company plans to hold a financial results meeting for institutional investors and analysts on Friday, February 24, 2023.
The Company also plans to post financial results presentation materials for the meeting on its website promptly after the holding.

AMITA HOLDINGS Co., Ltd. (2195)

Table of Contents
Index
1. Overview of operating results and others.................................................................................................. 2(1) Overview of operating results during the fiscal year under review .................................................... 2(2) Overview of financial position during the fiscal year under review ................................................... 3(3) Overview of cash flows for the fiscal year under review ................................................................... 3(4) Business outlook................................................................................................................................. 3
2. Basic approach to the selection of accounting standards .......................................................................... 5
3. Consolidated financial statements and primary notes ............................................................................... 6(1) Consolidated balance sheets ............................................................................................................... 6(2) Consolidated statements of income and consolidated statements of comprehensive income ............ 8
Consolidated statements of income .................................................................................................... 8
Consolidated statements of comprehensive income ........................................................................... 9(3) Consolidated statements of changes in equity .................................................................................. 10(4) Consolidated statements of cash flows ............................................................................................. 12(5) Notes to consolidated financial statements ....................................................................................... 14(Notes on going concern assumption) .............................................................................................. 14(Changes in accounting policies) ...................................................................................................... 14(Additional information) .................................................................................................................. 14(Consolidated balance sheet relationships) ....................................................................................... 14(Segment information)...................................................................................................................... 15(Per share information) ..................................................................................................................... 15(Significant subsequent events) ........................................................................................................ 16-1-

AMITA HOLDINGS Co., Ltd. (2195)

1. Overview of operating results and others(1) Overview of operating results during the fiscal year under review
During the fiscal year under review, the outlook for the Japanese economy remained uncertain due to various
factors, including the impact associated with COVID-19, the prolonged Russian invasion of Ukraine,increasing instability in the global supply chain such as shortages of raw materials and soaring resource prices,and widely fluctuating exchange rates.
Under this economic situation, the AMITA Group (the “Group”) developed and launched the Social Systems
Design Business to provide integrated assistance to businesses and municipalities in achieving greater
corporate and community sustainability under the theme “Redesigning industries and communities” as a“designing a future company” that aims to achieve a sustainable society.
In the area of redesigning industry, we offer total support, from conception to construction and implementation,in proposing initiatives, such as decarbonization, the circular economy, and nature capital, from the perspectiveof total optimization, centered on the “Cyano Project,” which supports the creation and business transformationof recycling-oriented businesses. Driven by expanding needs for recycling-oriented sustainable management,
we received new orders from 38 companies in FY2022 (24 companies in FY2021). In addition, although thevolume of the domestic closed-loop resource-recycling service declined slightly from last year due to adecrease in manufacturing volume by domestic manufacturers and other factors, the profit margin has been on
an upward trend, growing year on year due to improvements in the production process. While raw material
procurement risks are becoming more apparent, the need for recycled resources is steadily expanding. In
particular, closed-loop resource-recycling of silicon slurry waste liquids has been performing well in responseto the increase in the volume of waste due to increased production by domestic semiconductor manufacturers.
In the environmental certification assessment service, the number of clients, especially for FSC® CoC
certification, has been steadily increasing (approximately 123% compared to last year), and we expect that theneeds for certification acquisition will continue to expand as the momentum toward nature positivity grows,
including an increase in the number of companies complying with TNFD. In addition, the Malaysian businessrecorded the largest ever volume of shipments of recycled resources and Ni recycled resources handled, driven
by the economic recovery in the country from the spread of COVID-19 and other factors. In addition, the Japan
Circular Economy Partnership (J-CEP), for which we serve as the representative organizer, has grown by 16
member companies to 44 since its establishment in 2021. By taking advantage of the MEGURU STATION®
described below, we are fostering momentum for the circular economy by demonstrating recycling throughout
the supply chain and are discussing the introduction of services, such as selling by weight.
In the area of redesigning communities, we are continuing to demonstrate the realization of a recyclingoriented society based on the MEGURU STATION®, a mutual aid and support community-type resource
collection station. At the end of the fiscal year, we opened two stations under the Comprehensive Partnership
Agreement with the Town of Tachiarai, Fukuoka Prefecture, and two stations under the Business Partnership
Agreement with the City of Kobe, Hyogo Prefecture, to develop services that contribute to resolving the four
major regional issues (declining birthrate and aging population, population decrease, shrinking employment,
and increasing social security costs). In addition, we are quantifying and visualizing the effects of introducing
the system in municipalities by estimating “the effect of participating in MEGURU STATION® to prevent
long-term care and the reduction of social security expenses” through joint research with Chiba University.
Another equity-method affiliate, Codo Advisory, Inc., provides support services for the development andassessment of transition strategies toward decarbonization management, as well as educational workshops on
climate change. In the six months since our establishment in March 2022, we have supported 10 companies,
mainly listed companies in Japan and overseas.
As a result of the above, net sales for the fiscal year under review were ¥4,824,795 thousand (down ¥332,993
thousand from the previous fiscal year) due to the application of the “Accounting Standard for Revenue
Recognition,” etc. while the Cyano Project expanded its offerings. Operating profit was ¥609,728 thousand (up8.9% or ¥49,705 thousand from the previous fiscal year) due to the increase in net sales, excluding the impactof the application of the “Accounting Standard for Revenue Recognition” and other factors. Ordinary profit
was ¥715,537 thousand (up 13.7% or ¥86,076 thousand from the previous fiscal year) due to an increase inoperating profit and an increase in equity in earnings of affiliates related to the Malaysian business, including a
tax deduction under the green investment taxation system in that country. Profit attributable to owners of theparent was ¥531,242 thousand (down 16.1% or ¥101,594 thousand from the previous fiscal year) due to a
reduction in tax expenses resulting from the merger of subsidiaries in the previous fiscal year.

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AMITA HOLDINGS Co., Ltd. (2195)
The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and others
were applied from the beginning of the fiscal year under review. For this reason, we do not report thepercentage change in net sales from the fiscal year ended December 31, 2021. For details, please refer to “3.
Consolidated financial statements and primary notes, (5) Notes to consolidated financial statements, (Changes
in accounting policies).”Statement by segment is omitted because the Group constitutes a single segment of the Social Systems Design
Business.
(2) Overview of financial position during the fiscal year under review
As of the end of the fiscal year under review, current assets increased by ¥423,174 thousand mainly due toincreases in cash and deposits, and non-current assets decreased by ¥26,206 thousand due to depreciation andother items. As a result, total assets increased by ¥396,968 thousand from the end of the previous fiscal year to¥4,824,280 thousand.
With regard to liabilities, current liabilities decreased by ¥43,005 thousand mainly due to the decrease in notes
and accounts payable, trade, etc., and non-current liabilities decreased by ¥106,052 thousand mainly due to therepayment of long-term borrowings. As a result, liabilities decreased by ¥149,057 thousand from the end of theprevious fiscal year to ¥2,823,230 thousand.
Net assets increased by ¥546,026 thousand from the end of the previous fiscal year to ¥2,001,050 thousand due
to recording of profit.
(3) Overview of cash flows for the fiscal year under review
As of the end of the fiscal year under review, cash and cash equivalents (the “fund”) increased by ¥389,077
thousand from the end of the previous fiscal year to ¥1,779,633 thousand.
(Cash flows from operating activities)
The fund provided by operating activities amounted to ¥585,083 thousand (net outflow of fund by ¥288,140
thousand YoY). This was due to profit before income taxes of ¥712,138 thousand, depreciation of ¥139,734
thousand, and share of profit of entities accounted for using equity method of ¥108,901 thousand.
(Cash flows from investing activities)
The fund used in investing activities amounted to ¥69,841 thousand (net outflow of fund by ¥4,127 thousand
YoY). This decrease was mainly due to purchase of property, plant and equipment of ¥80,507 thousand.
(Cash flows from financing activities)
The fund used in financing activities amounted to ¥142,166 thousand (net inflow of fund by ¥507,355
thousand YoY). This was mainly due to repayment of long-term loans payable of ¥150,000 thousand.
(4) Business outlook
Although production and consumption activities are expected to pick up moderately due to the impact of
COVID-19, the outlook for the Japanese economy is expected to remain uncertain due to various effects
associated with the prolonged Russian invasion of Ukraine, continuing instability in the global supply chain
such as shortages of raw materials and soaring energy and resource prices, the effects of a slowdown in the
global economy, particularly in the United States, Europe and China, and the need to keep in mind the risk ofnatural disasters. On the other hand, the trends of decarbonization and the circular economy, both in Japan andabroad, and for investors, companies, and municipalities to focus on ESG have continued with the addition of asecurity perspective although there has been a temporary pause due to soaring resource prices, and the need to
improve “sustainability” by promoting the circular economy is expected to accelerate in the future.
Under the circumstances of “designing a future company,” the Group will continue to develop and deploy
products to establish a “Social Systems Design Business” to improve the sustainability and relationships ofsociety under the theme “Redesigning industries and communities.” In November 2022, we announced ourbusiness vision for the year 2030 in the form of the “Ecosystem Society Concept 2030” (hereinafter referred toas “the Concept”). To achieve the Concept, we are actively promoting the spin-off of a subsidiary (for details,-3-

AMITA HOLDINGS Co., Ltd. (2195)
please refer to “3. Consolidated financial statements and primary notes, (5) Notes to consolidated financial
statements, (Significant subsequent events)”) and the establishment of a new subsidiary (AMIDAOCORPORATION), as well as strategic partnerships with companies in different industries, including NTT
Communications and Sumitomo Mitsui Trust Bank, Limited, in order to enhance organizational mobility,
quality of services, and value creation capabilities. In 2023, the final year of the three-year “Market Creation
Challenge Period” that started in 2021, we will continue to focus on the development and deployment ofservices that support sustainable corporate management and regional operations. We will also promote strategic
partnerships with companies and expand collaboration with citizens, municipalities, universities, andgovernment agencies through co-creation-type consortiums, such as J-CEP. We hope to realize the “Phase 2:
Business Expansion” starting in 2024 and beyond that to realize the Concept.
In the area of redesigning industry, we will strengthen our support for strategies to transition to sustainablecorporate management (i.e., the Transition Strategy Business). Specifically, through the “Cyano Project,”which supports the creation of recycling-oriented businesses and business transformation (i.e., transition
strategies) to enhance the sustainability of corporate management, we will develop integrated support througheach solution from policy formulation to systemization, including offensive ESG management consulting andenvironmental BPO (AMITA Smart Eco, circular materials business, and defensive ESG management
consulting). In doing so, we will work with Codo Advisory, Inc., which provides strategic support fortransitioning to decarbonization management, existing and new strategic partnerships, and J-CEP to enhancethe value of our offerings. For environmental certification assessment services, which are in a growth phase,
we will strengthen our organizational structure to meet growing needs. In Malaysia and other overseas markets,in addition to stabilizing and promoting the recycling business at our own plants, we will also develop markets
with a view to providing businesses that are being developed and deployed in Japan, such as the creation of arecycling-oriented society.
The domestic closed-loop resource-recycling service will be upgraded from a recycling business that
manufactures substitutes for natural resources to a circular materials business that provides comprehensive
solutions for sustainable procurement and resource utilization. Specifically, we will enhance our agility inbusiness innovation through the development and functional enhancement of new circulating resources andtechnologies, such as coal substitute fuels that contribute to CO2 reduction, as well as proactive alliances withpartner companies. We will also make new capital investments in the recycling of waste silicon slurry, which isin a growth phase, to increase our manufacturing capacity by 1.5 times from 2024 onward.
In redesigning communities, the Group will focus on building and demonstrating service prototypes andestablishing business models. Specifically, we have completed the development of a model for “MEGURUSTATION ®,” which we have been developing as a core service, and plan to develop it into a business modelthat will enable us to integrate and solve local, corporate and social issues by reducing environmental costs,
implementing mutual assistance mechanisms, utilizing consumption trends and resource information, andconducting hypothesis testing in multiple regions, including Tachiarai Town in Fukuoka Prefecture and Kobe
City in Hyogo Prefecture. In doing so, it is necessary to visualize the traceability and user contributions toprove the safety of resources, so we will collaborate with AMIDAO CORPORATION, which designs anddevelops the token economy using web3-related technologies (= ecosystem co-creation business).
Furthermore, as a management foundation to support the “Social Systems Design Business,” we will continue
to work on building a framework for the amplification of quality management resources, including the
restructuring of our corporate culture (improvement of the operation of new target management methods, thechallenge of a 32-hour work week, strengthening human resource development, etc.) and measures tostrengthen relationships with stakeholders and increase social recognition, etc.
Regarding the consolidated results for the year ending December 31, 2023, as a result, the Group forecasts net
sales of ¥5,283 million (up 9.5% or ¥458 million YoY), operating profit of ¥774 million (up 27.0% or ¥164
million YoY), ordinary profit of ¥887 million (up 24.0% or ¥171 million YoY), and profit attributable toowners of parent of ¥620 million (up 16.8% or ¥89 million). The impact of COVID-19 will be insignificant.
The Group will pursue these measures above and proactively engage in creating a “Ecosystem Society” intandem with other sustainability-oriented companies and municipalities.

-4-

AMITA HOLDINGS Co., Ltd. (2195)

2. Basic approach to the selection of accounting standards
The Group applies Japanese accounting standards for ensuring the comparability with other Japanese companies inthe same industry.

-5-

AMITA HOLDINGS Co., Ltd. (2195)

3. Consolidated financial statements and primary notes(1) Consolidated balance sheets(Thousands of yen)
As of December 31, 2021

As of December 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

1,390,556
703,114

1,779,633
744,972

Merchandise and finished goods
Work in process

34,754
27,63532,98918,498Raw materials and supplies
Other

4,289
186,172

10,844
182,759

Allowance for doubtful accounts

(70)

(70)

2,346,453

2,769,627

432,483

391,446

Machinery, equipment and vehicles, net
Land360,730
792,290

320,266
752,187

Construction in progress
Other, net–
48,225

17,32565,717

1,633,730

1,546,942

Intangible assets
Investments and other assets

25,90036,966

Investment securities
Deferred tax assets

167,124
115,214281,722
35,136

Other

138,888

153,885

Total investments and other assets

421,227

470,7432,080,858

2,054,652

4,427,311

4,824,280

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

Total property, plant and equipment

Total non-current assets
Total assets-6-

AMITA HOLDINGS Co., Ltd. (2195)(Thousands of yen)
As of December 31, 2021

As of December 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade353,579

293,290

Current portion of long-term borrowings
Lease liabilities

150,000
22,121

170,000
16,267

Accounts payable - other
Income taxes payable

193,409
29,158170,395
101,504

Provision for bonuses
Advances received

98,388164,289

76,848151,151

Deposits received
Other

211,798
89,266211,958
77,590Total current liabilities

1,312,011

1,269,005

Non-current liabilities
Long-term borrowings

1,200,000

1,082,562

Lease liabilities
Retirement benefit liability

27,470330,986

21,450349,349

Asset retirement obligations
Other

101,639180

100,681180

Total non-current liabilities

1,660,276

1,554,224

2,972,287

2,823,230

Shareholders’ equity
Share capital

474,920

480,680

Capital surplus
Retained earnings

244,683
728,972

250,443
1,225,139

(375)

(482)

1,448,200

1,955,781

Foreign currency translation adjustment

6,823

39,219Total accumulated other comprehensive income

6,823

39,219Total liabilities
Net assets

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets

-7-

–

6,049

1,455,024

2,001,050

4,427,311

4,824,280

AMITA HOLDINGS Co., Ltd. (2195)(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
December 31, 2021

Fiscal year ended
December 31, 2022

Net sales
Cost of sales

5,157,789
3,156,286

4,824,795
2,687,253

Gross profit

2,001,502

2,137,542

Selling, general and administrative expenses

1,441,479

1,527,814

560,023

609,728108

112

76,868108,901

Operating profit
Non-operating income
Interest income
Share of profit of entities accounted for using equity
methodForeign exchange gains

–

5,825

Other

25,052

13,666

Total non-operating income

102,028

128,505

Interest expenses
Share acquisition rights issuance costs

23,497–

16,5402,640

Foreign exchange losses
Other

4,987
4,105

–
3,515

Non-operating expenses

32,58922,696

Ordinary profit

Total non-operating expenses

629,461

715,537

Extraordinary income
Gain on sale of non-current assets

22,273

2,821

Other

1,500

–

Total extraordinary income

23,773

2,821

–

725

51,657
15,838–5,495

Extraordinary losses
Loss on valuation of shares of subsidiaries andassociates
Impairment losses
Loss on sale and retirement of non-current assets
Total extraordinary losses

67,496

6,220

585,738

712,138

Income taxes - current

23,967

100,818

Income taxes - deferred(71,065)

80,078

Total income taxes(47,097)

180,896

Profit632,836531,242

Profit attributable to owners of parent

632,836531,242

Profit before income taxes-8-

AMITA HOLDINGS Co., Ltd. (2195)
Consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended
December 31, 2021
ProfitOther comprehensive income
Foreign currency translation adjustment

Fiscal year ended
December 31, 2022

632,836531,242

1,061

2,548

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

12,17029,847

Total other comprehensive income

13,231

32,395646,068

563,637

646,068

563,637

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent-9-

AMITA HOLDINGS Co., Ltd. (2195)(3) Consolidated statements of changes in equity
Fiscal year ended December 31, 2021
(Thousands of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

474,920244,683

Retainedearnings
96,135

Treasury shares
(245)

Total
shareholders’equity815,493

Changes during period
Profit attributable to owners ofparent632,836

Purchase of treasury shares

632,836
(130)

(130)

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

Balance at beginning of period––

632,836(130)

632,706

474,920244,683

728,972(375)

1,448,200

Accumulated other comprehensive
incomeTotal
Total net assets
Foreign currency
accumulatedtranslationotheradjustment
comprehensive
income(6,407)(6,407)809,085

Changes during period
Profit attributable to owners ofparent632,836

Purchase of treasury shares
Net changes in items otherthan shareholders’ equity(130)
13,231

13,231

13,231

Total changes during period

13,231

13,231645,938

Balance at end of period

6,823

6,823

1,455,024- 10 -AMITA HOLDINGS Co., Ltd. (2195)
Fiscal year ended December 31, 2022
(Thousands of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

474,920244,683

5,760

5,760

Retainedearnings
728,972

Treasury shares
(375)

Total
shareholders’equity1,448,200

Changes during period
Issuance of new shares exercise of share acquisitionrights11,520

Dividends of surplus(35,075)(35,075)

Profit attributable to owners ofparent531,242531,242

Purchase of treasury shares

(106)

(106)

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

Balance at beginning of period

5,760

5,760

496,166(106)

507,581

480,680

250,443

1,225,139(482)

1,955,781

Accumulated other comprehensive
incomeTotal
Share acquisition
Foreign currency
accumulated
rightstranslationotheradjustment
comprehensive
income
6,823
6,823
–

Total net assets

1,455,024

Changes during period
Issuance of new shares exercise of share acquisitionrights11,520

Dividends of surplus(35,075)

Profit attributable to owners ofparent531,242

Purchase of treasury shares
Net changes in items otherthan shareholders’ equity(106)
32,39532,395

6,049

38,445

Total changes during period

32,39532,395

6,049

546,026

Balance at end of period

39,21939,2196,049

2,001,050- 11 -AMITA HOLDINGS Co., Ltd. (2195)(4) Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
December 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Loss on valuation of shares of subsidiaries andassociates
Loss (gain) on sale and retirement of non-current assets
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Share acquisition rights issuance costs
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received
Increase (decrease) in deposits received
Other, net

Fiscal year ended
December 31, 2022

585,738
143,833
51,657712,138
139,734––

725(6,434)(1,106)
21,869(108)
23,497(4,214)

4,049(21,540)
18,363(112)
16,540(13,391)(76,868)(108,901)–(11,629)(2,845)26,507(12,526)
31,7508,428

2,640(41,857)
4,347(60,289)(13,137)
157(50,905)

Subtotal

777,549

588,559

Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund

28,644(20,968)–
87,99848,373(17,230)(34,619)–

Net cash provided by (used in) operating activities

873,224

585,083

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from cancellation of insurance funds
Other, net(68,465)
6,073(4,977)–716(7,316)(80,507)
58,383(21,855)(25,000)
7,059(7,922)

Net cash provided by (used in) investing activities(73,969)(69,841)(400,000)–(150,000)–
52,562(150,000)–

11,490––(99,522)3,440(33,841)(25,817)(649,522)(142,166)

Cash flows from financing activities
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Proceeds from issuance of share acquisition rights
Dividends paid
Other, net
Net cash provided by (used in) financing activities- 12 -AMITA HOLDINGS Co., Ltd. (2195)(Thousands of yen)

Effect of exchange rate change on cash and cash
equivalents

Fiscal year ended

Fiscal year ended

December 31, 2021

December 31, 2022
5,073

16,002

Net increase (decrease) in cash and cash equivalents

154,806

389,077

Cash and cash equivalents at beginning of period

1,235,749

1,390,556

Cash and cash equivalents at end of period

1,390,556

1,779,633- 13 -AMITA HOLDINGS Co., Ltd. (2195)(5) Notes to consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Changes in accounting policies)(Application of Accounting Standards for Revenue Recognition and Its Implementation Guidance)
Effective from the beginning of the fiscal year under review, the Company adopted the Accounting Standards
for Revenue Recognition (ASBJ Statement No. 29 of March 31, 2020. Hereafter referred to as “Revenue
Recognition Accounting Standard.”) and other standards to recognize revenue in the amount expected to bereceived in exchange for promised goods or services when control of those goods or services passes to thecustomer. As a result, the Company and its consolidated subsidiaries have changed the method of recognizing
as revenue the amount of compensation or commission to which the Company and its consolidated subsidiaries
expect to be entitled in exchange for arranging or acting as agent or intermediary when the Company and its
consolidated subsidiaries do not have control over the waste, whereas previously, when the waste subject torecycling operations (direct delivery transaction) were valuable materials, revenue was recognized at the total
consideration received from the source.
The application of the Accounting Standard for Revenue Recognition and its implementation guidance issubject to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for
Revenue Recognition. The cumulative effect of the retrospective application, assuming the new accounting
policy had been applied to periods prior to the start of the fiscal year ended December 31, 2022, was added toor subtracted from the opening balance of retained earnings of the fiscal year ended December 31, 2022, andthus the new accounting policy was applied from such opening balance without affecting the opening balance.
As a result, net sales and cost of sales decreased by ¥505,770 thousand in the fiscal year under review, butthere is no impact on operating profit, ordinary profit, and profit before income taxes and minority interests.
In accordance with the transitional treatment stipulated in Paragraph 89-3 of the Accounting Standard for
Revenue Recognition, the notes to “Revenue Recognition” for the previous fiscal year are not described.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019) and relevant ASBJ regulations from the beginning of the fiscal year ended December 31, 2022,
and it has applied the new accounting policy provided for by the Accounting Standard for Fair Value
Measurement, etc. prospectively in accordance with the transitional measures provided for in paragraph 19 of
the Accounting Standard For Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for
Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). This has no impact on the consolidated
financial statements.
(Additional information)(Accounting estimates relating to the effect of COVID-19)
Based on the information available at the point of preparing consolidated financial statements, the Groupjudges that the spread of COVID-19 will not significantly impact the accounting estimates for the impairment
of non-current assets and recoverability of deferred tax assets as of the end of the fiscal year under review.
However, COVID-19 may significantly impact the consolidated financial statements on and after the next
fiscal year after the Group reviews its judgment taking into account the changes in future situations.
(Consolidated balance sheet relationships)
Notes and accounts receivable - trade, arising from contracts with customers are as follows.

- 14 -AMITA HOLDINGS Co., Ltd. (2195)(Thousands of yen)
Fiscal year ended
December 31, 2022
Notes receivable - trade

29,736

Accounts receivable - trade715,236(Segment information)
The statement is omitted because the Group constitutes a single segment, or the Social Systems Design
Business.
(Per share information)(Yen)
Fiscal year ended
December 31, 2021

Fiscal year ended
December 31, 2022

Net assets per share

82.97

113.69Earnings per share

36.08

30.29

–

30.22

Diluted earnings per share

Notes: 1. The Company carried out a 5-for-1 stock split of its common shares as of January 1, 2022 and carried out a 3-for-1
stock split of its common shares as of October 1, 2022. Accordingly, under the assumption that such stock split was
implemented at the beginning of the previous fiscal year, the Company calculates “net assets per share,” “earnings per
share” and “diluted earnings per share.”
2. The statement of diluted earnings per share for the previous fiscal year is omitted because there is no potential share.
3. The basis for calculating earnings per share and diluted earnings per share is as follows:
Fiscal year ended
December 31, 2021

Fiscal year ended
December 31, 2022

Earnings per share
Profit attributable to owners ofparent (Thousands of yen)

632,836531,242

Amount not attributable tocommon shareholders (Thousandsof yen)––Profit attributable to owners ofparent relating to common shares(Thousands of yen)

632,836531,242

Average number of commonshares during the period (Shares)

17,538,153

17,538,334

Adjustment of profit attributableto owners of parent (Thousands of
yen)

–

–

Increase in common shares(Shares)–

39,249(Of which, share acquisition rights(Shares))–(39,249)

Diluted earnings per share

Summary of potential shares notincluded in the calculation of––diluted earnings per share due tothe absence of dilutive effects
Note:
The statement of diluted earnings per share for the previous fiscal year is omitted because there is no potential share.

- 15 -AMITA HOLDINGS Co., Ltd. (2195)(Significant subsequent events)(Establishment of subsidiary)
At a meeting of the Board of Directors held on November 25, 2022, the Company resolved to establish a
subsidiary as follows, and the subsidiary was established on January 5, 2023.
1. Purpose of Establishment of Subsidiary
The year 2022 is also known as the first year of web3, and the web3 movement, known as the “Decentralized
Internet,” is accelerating both domestically and internationally. In the past, information was collected anddisseminated via web platforms, but with web3, it has become possible to use blockchain technology tomanage data between users, provide content between individuals, sell digital data, and transfer money, without
the need for an administrator to be present. Currently, there is a movement in Japan to take advantage of thesecharacteristics to issue their own tokens and form their own economic sphere or community (token economy).
We believe that the creation of an eco-system society is necessary to achieve our Group’s mission of “asustainable society: a society in which natural capital and relational capital increases as development
progresses. “In an eco-system society, it is necessary to simultaneously solve social issues and foster a sense ofownership and community, and we believe that the application of web3-related technologies will be effective.
The new subsidiary, AMIDAO CORPORATION, will design and develop a token economy that contributes tothe above by applying web3-related technologies.
In addition, creative human resources who share the same values and vision, as well as digital human resourcesin areas such as infrastructure and application development, are indispensable to respond to changes in thebusiness environment that are accelerating and becoming more complex and to build an eco-system society.
The new subsidiary, AMIDAO CORPORATION, will serve as a mechanism for gathering and co-creating
high-quality human resources and management resources, and will create a place for independent anddecentralized co-creation for each project.
2. Outline of the subsidiary to be established(1) Name

AMIDAO CORPORATION (English: AMIDAO CORPORATION)(2) Location

535 Akinono-cho, Oshikoji-agaru-Karasuma-dori, Nakagyo-ku, Kyoto,(3) Title and name ofrepresentative

Eisuke Kumano, Chairman and CEO (Co-Ecosystem Organizer)
Atsushi Hayashi, Director and CDO (Co-DAO Optimizer)
Kenichi Okada, Director
・Designing and developing business models, apps, and tools that contribute to establishing(4) Business profile

an ecosystem society
・Facilitating and promoting a scheme that uses carbon-credit tokens to achieve zero
emission and carbon neutrality in office buildings and commercial complexes(5) Capital stock¥10 million(6) Date of establishment

January 5, 2023

(7) Total number of issued
shares1,000 shares(8) Shareholding ratio withmajor shareholders(9) Fiscal year

AMITA HOLDINGS Co., Ltd. 100%.
From January 1 to the end of December
Capitalrelationships(10) Relationship between
the parties, etc.

Personal
relations
Businessrelations

Established as a wholly owned subsidiary of the Company
Directors of the Company serve concurrently
A business consignment agreement has been concluded between the
Company and the said company for the purpose of consigning business
management operations of the said company.

- 16 -AMITA HOLDINGS Co., Ltd. (2195)(Change of trade name of a consolidated subsidiary and establishment of a subsidiary through a simplified
incorporation-type company split)
At a meeting of the Board of Directors held on November 10, 2022, the Company resolved to change the tradename of AMITA CORPORATION, a wholly owned subsidiary of the Company, to “AMITA CIRCULARCORPORATION” effective January 1, 2023, to transfer part of the business of AMITA CORPORATION to a
newly established company by means of a company split (simple incorporation-type company split), and to
make the newly established company a wholly owned subsidiary of the Company, and completed theseprocedures.
1. Change of trade name of subsidiary(1) Outline of subsidiary(1) Name

AMITA CORPORATION(2) Location

3-6-7, Kanda kajicho, Chiyoda-ku, Tokyo(3) Title and name of representative

Takahide Suetsugu, Representative Director(4) Business profile(5) Capital stock

Promote the achievement of a sustainable society by developing a Social Systems
Design Business that provides comprehensive support from vision formulation to
implementation support to improve the sustainability of companies andmunicipalities.
¥100 million(6) Date of establishment

April 1, 1977

(7) Shareholding ratio with major
shareholders

AMITA HOLDINGS Co., Ltd. 100%.

(8) Fiscal year end

December 31(2) Reason for trade name change
The trade name is being changed in accordance with “2. Company split of a subsidiary (simplified
incorporation-type company split)” described below, for the purpose of specializing in the manufacture of
circular materials, which contribute to the circular economy, including resource circulation.
(3) New trade nameAMITA CIRCULAR CORPORATION(English: AMITA CIRCULAR CORPORATION)(4) Date of trade name change
January 1, 2023
2. Company split of a subsidiary (simplified incorporation-type company split)(1) Purpose of company split
As a “designing a future company” that contributes to the realization of “a sustainable society: a society inwhich natural capital and relational capital increases as development progresses. “through the provision of “arecycling-based social system,” the Group is engaged in the development and provision of “Social Systems
Design Business” that integrally supports sustainable corporate management and regional operations under thetheme of “Redesigning industries and communities,” utilizing its high-quality network and platform of people,
resources, and information in the sustainability field cultivated over 45 years.
Since the spread of COVID-19, the outlook remains uncertain due to the effects of Russia’s invasion of
Ukraine, increased instability in the global supply chain such as raw material shortages and soaring resource
prices, as well as increased foreign exchange risks.
- 17 -AMITA HOLDINGS Co., Ltd. (2195)
Under these circumstances, we have resolved to split a consolidated subsidiary for the following reasons.
■ AMITA CIRCULAR CORPORATION
We will upgrade from the production of recycled resources, a substitute for natural resources, to the productionof circular materials that have been proven to contribute to the reduction of CO2 emissions and the restorationof ecosystem services the more they are used. In order to increase the speed of this sophistication, we will
create an organization specializing in the circular materials business to enhance the agility of business
innovation, including the development of new circulating resources and circulating technologies and active
alliances with partner companies.
■ AMITA CORPORATIONWith the rapidly growing need for strategies to transition to sustainable corporate and regional management, it
is important to develop services that anticipate social needs and upgrade solution capabilities. By establishing a
new company that specializes in supporting the planning of transition strategies and integration of theimplementation phase, we will enhance our ability to respond to rapid changes in the times and create value on
an ongoing basis. In addition, by increasing our organizational mobility, we will be able to quickly develop ourbusiness in overseas markets, which are more uncertain than in Japan.
(2) Outline of company split(i) Method of company split
This is a simple incorporation-type company split in which AMITA CORPORATION (The corporate name waschanged to AMITA CIRCULAR CORPORATION on January 1, 2023. Hereafter referred to as the “split
company.”) is split and its consulting services, certification business and ICT business (Hereafter referred to as
the “Target Business.”) are transferred to the newly established company.
(ii) Schedule of company split(1) Board of Directors of the Company

November 10, 2022

(2) Board of Directors’ approval of the new company split
plan (split company)

November 10, 2022

(3) Effective date of the corporate split (date ofJanuary 5, 2023
incorporation of the new company)
Note: In accordance with the provisions for a simplified incorporation-type company split stipulated in Article 805 of theCompanies Act, the split will be conducted without obtaining the approval of the general meeting of shareholders regarding
the incorporation-type company split plan at the split company.

(iii) Details of allotment related to the company split
The newly established company will issue 5,000 common shares upon company split, all of which will beallocated to the split company. At the same time, the split company will deliver the shares allocated to it to theCompany, the wholly-owning parent company, as a dividend of surplus.
(iv) Decrease in capital stock, etc. due to company split
There is no reduction in the capital stock of the split company due to the company split.
(v) Rights and obligations to be succeeded to by the newly established company
The newly established company will succeed to the assets, liabilities, and other rights and obligations of the
split company related to the Target Business as of the effective date. Succession to the debt shall be by way ofassumption of indemnified debt.

- 18 -AMITA HOLDINGS Co., Ltd. (2195)(vi) Prospect of debt fulfillment
The Company has determined that there is no problem with the prospects for performance by the newly
established company of the obligations to be incurred as a result of the company split.
(3) Overview of companies involved in the company split(i) Split company
AMITA CORPORATION(Company name changed to AMITA CIRCULAR CORPORATION on January 1,(1) Name

2023)(2) Location

3-6-7, Kanda kajicho, Chiyoda-ku, Tokyo(3) Title and name of representative

Takahide Suetsugu, Representative Director(Representative Director changed to Kenji Tsuchimoto as of January 1, 2023)
Promote the achievement of a sustainable society by developing a Social Systems
Design Business that provides comprehensive support from vision formulation to
implementation support to improve the sustainability of companies and(4) Business profile

municipalities.
(Changed to the Circular Materials business on January 1, 2023)(5) Capital stock¥100 million(6) Date of establishment

April 1, 1977

(7) Shareholding ratio with major
shareholders

AMITA HOLDINGS Co., Ltd. 100%.

(8) Fiscal year end

December 31(ii) Newly established company(1) Name

AMITA CORPORATION(2) Location

3-6-7, Kanda kajicho, Chiyoda-ku, Tokyo(3) Title and name ofrepresentative

Shinichi Tabei, President(4) Business profile

Transition Strategy Business(5) Capital stock¥50 million(6) Date of establishment

January 5, 2023

(7) Total number of issued
shares(8) Shareholding ratio withmajor shareholders(9) Fiscal year end

5,000 shares
AMITA HOLDINGS Co., Ltd. 100%.
December 31
Capitalrelationships(10) Relationship between
the parties, etc.

Established as a wholly owned subsidiary of the Company

Personal
relations

Director of the split company concurrently serves as director of the newly
established split company

Business

A business consignment agreement has been concluded between the Company
and the said company for the purpose of consigning business management

relationsoperations of the said company.

(4) Description of the business of the division to be split off or taken overconsulting services business, certification business and ICT business- 19 -AMITA HOLDINGS Co., Ltd. (2195)(5) Situation after the said reorganization
Please refer to “2. Company split of a subsidiary (simplified incorporation-type company split), (3) Overview
of companies involved in the company split” above for the status after the company split.
(6) Impact on Business Performance
Since all of the companies involved in the company split are wholly owned subsidiaries of the Company, theimpact on our group’s consolidated financial results is negligible.

- 20 -