Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility forthis translation or for direct, indirect, or any other forms of damages arising from this translation.

November 10, 2022

Non-consolidated Financial Results
for the Fiscal Year Ended September 30, 2022
(Under Japanese GAAP)
Company name: Needs Well Inc.
Listing:
Tokyo Stock Exchange
Securities code:3992
URL:
https://www.needswell.com/
Representative:
Kozo Funatsu, President and CEOInquiries:
Chinami Arai, Executive Officer
Telephone:+81-3-6265-6763
Scheduled date of annual general meeting of shareholders:
Scheduled date of commencing dividend payments:
Scheduled date of filing annual securities report:
Preparation of supplementary material on financial results:
Holding of financial results briefing:

December 23, 2022
December 26, 2022
December 23, 2022
Yes
Yes (for institutional investors, analysts, andthe media)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Financial results for the fiscal year ended September 30, 2022 (from October 1, 2021 to September 30,2022)(1) Operating results(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ended

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

September 30, 2022

6,730

17.0

690

19.0

724

24.5

499

18.5

September 30, 2021

5,752

7.2

580

17.7

582

13.2

421

21.0

Diluted earnings
per share

Profit per share
Fiscal year ended

Return on equity

Ordinary profit tototal assets

Operating profit to
net sales ratio

Yen

Yen%%

September 30, 2022

49.86

49.82

14.1

16.2

10.3

September 30, 2021

46.64

45.99

14.7

15.8

10.1

Reference: Equity in earnings (losses)of affiliates

For the fiscal year ended September 30, 2022:
For the fiscal year ended September 30, 2021:%¥-1 million¥– million(2) Financial position
Total assets
As ofNet assets

Equity ratio

Net assets per share

Millions of yen

September 30, 2022

4,608

3,570

77.5

361.99September 30, 2021

4,360

3,498

80.2

344.60

Reference:Equity
As of September 30, 2022:
As of September 30, 2021:¥3,570 million¥3,498 million%

Yen

Millions of yen

(3) Cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Ending balance of cash
and cash equivalents

Millions of yen

Millions of yen

Millions of yen

Millions of yen

September 30, 2022

437-260

-433

2,491

September 30, 2021

331

-81

838

2,748

Fiscal year ended

2. Dividends
Annual dividends per shareFirstSecondThird
Fiscalquarter-end quarter-end quarter-end year-end
Fiscal year endedYen

Yen

Yen

Yen

Total
Yen

Total
dividends(total)

Payout ratio

Dividends tonet assets ratio

Millionsof yen%%

September 30, 2021
–
0.00
–
23.00
23.00
233
49.3
September 30, 2022
–
0.00
–
20.00
20.00
197
40.1
Fiscal year ending
September 30, 2023
–
0.00
–
23.00
23.00
39.0
(Forecast)
Note: Breakdown of year-end dividends for the fiscal year ended September 30, 2021: Regular dividend: 18.00 yen
Commemorative dividend: 5.00 yen

7.6
5.7

3. Financial results forecast for the fiscal year ending September 30, 2023 (October 1, 2022 to September30, 2023)(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Ordinary profit

ProfitProfit per share

Millionsof yen%Millionsof yen%Millionsof yen%

Millionsof yen%Second quarter(cumulative)

3,764

15.7

412

13.9

426

13.9

294

13.4

29.83

Full year

8,100

20.4

810

17.3

842

16.2

581

16.4

58.94

Yen

Note: The Company has transitioned to consolidated accounting from the fiscal year ending September 30, 2023 (October 1, 2022to September 30, 2023). Please refer to the “Notice of Consolidated Financial Results Forecast with Commencement ofConsolidated Accounting” announced on the same day for information on the consolidated financial results forecast for thefiscal year ending September 30, 2023.

* Notes(1) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(2) Number of issued shares (ordinary shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2022

10,168,400 shares

As of September 30, 2021

10,153,200 shares(ii) Number of treasury shares at the end of the period
As of September 30, 2022

306,176 shares

As of September 30, 2021

232 shares(iii) Average number of shares during the period
Fiscal year ended September 30, 2022

10,011,046 sharesFiscal year ended September 30, 2021

9,028,786 shares* Financial results reports are exempt from review by certified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Notes on forward-looking statements)
Financial results forecasts and other forward-looking statements provided in these materials are based on
information available to the Company and certain other assumptions deemed reasonable as of the date of
publication of this document, and do not represent any guarantee that the Company will achieve these results.
Actual financial results and other aspects of business performance may differ significantly from these forecasts
owing to various factors.
Please refer to “1. Overview of operating results, etc. (4) Future outlook” on page 4 of the attached materials of
the Japanese version of this document for conditions forming the basis for financial results forecasts, notes
regarding the use of financial results forecasts, and other information.
Information on financial results briefing to be held for institutional investors, analysts, and the media
The Company will hold a financial results briefing for institutional investors, analysts, and the media as
described below.
Date and time:
From 14:00 to 15:00 on Tuesday, November 15, 2022
Format:Zoom Webinars
Contents:
Performance report, growth strategy, Medium-Term Management Plan, Q&A
sessionApplication method: Please apply via “Minna no Setsumeikai” (everyone’s briefing), a website run by
Minsetsu, Inc.
https://app.msetsu.com/stocks/3992/briefings

5. Financial statements and major notes(1) Balance sheet(Unit: thousands of yen)Previous fiscal year
(September 30, 2021)
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Accounts receivable - trade and contract assets
Work in process
Raw materials
Supplies
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Furniture and fixtures
Accumulated depreciation
Furniture and fixtures, net
Total property, plant and equipment
Intangible assets
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Deferred tax assets
Leasehold and guarantee deposits
Insurance funds
Other
Total investments and other assets
Total non-current assets
Total assets

1

Current fiscal year
(September 30, 2022)

2,868,659
938,699–
10,2891,742
447
25,662
2,440-5,634
3,842,307

2,609,360–
1,163,387–
1,742–
72,2594,349-6,9803,844,118

36,845-4,91931,926
19,406-15,799
3,606
35,53236,440-7,30629,134
20,541-14,948
5,593
34,72782,3202,128
242
84,691

81,1163,676
231
85,024

114,920–
118,698
83,68776,546
3,663
397,515
517,740
4,360,047

236,405
107,524
136,486
83,72776,546
3,663
644,354764,105
4,608,224

(Unit: thousands of yen)Previous fiscal year
(September 30, 2021)

Current fiscal year
(September 30, 2022)

Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - other

143,008
149,206

213,989
150,191

Income taxes payable
Accrued consumption taxes

124,585
91,906

180,895
90,256

424
––
2,827

41,839302,483

44,222
343,503

7,850

12,300861,304

1,038,186––

861,304

1,038,186

Advances received
Contract liabilities
Deposits received
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Total current liabilities
Non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital

907,517908,171

Capital surplus
Legal capital surplus

763,917764,571

Total capital surplus

763,917764,571783

783

1,806,285

2,071,920

1,807,068

2,072,703

Retained earnings
Legal retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

2-177-200,175

3,478,327

3,545,270

20,416

24,767

20,416

24,7673,498,743

3,570,038

4,360,047

4,608,224

(2) Statement of income(Unit: thousands of yen)
Current fiscal year
(from October 1, 2021 toSeptember 30, 2022)

Previous fiscal year
(from October 1, 2020 toSeptember 30, 2021)
Net sales
Sales of information service

5,638,046

6,553,276

Net sales of goods, etc.

114,307

176,890

5,752,353

6,730,166

Cost of sales of information service
Cost of sales of goods, etc.

4,250,570
87,626

5,034,167
133,022

Total cost of sales

4,338,196

5,167,190

1,414,157

1,562,976

Remuneration for directors (and other officers)
Salaries and allowances

103,424
215,483

105,850
232,291

Employees’ bonuses
Provision for bonuses

30,23024,22529,23429,312

Provision for bonuses for directors (and other officers)
Welfare expenses

7,850
71,60912,30074,957

Rent expenses on land and buildings
Depreciation

70,63020,43969,70021,279Commission expenses
Hiring expenses

97,45929,218103,058
24,405

Provision of allowance for doubtful accounts
Bad debt expenses

1,491
–

1,346
3,238

Other

161,720

165,212

Total selling, general and administrative expenses

833,782

872,185

580,374

690,790

Total net sales
Cost of sales

Gross profit
Selling, general and administrative expenses

Operating profit
Non-operating income
Interest income

2430

Dividend income
Subsidy income

3,468
7,639

6,217
25,971

Surrender value of insurance policies
Miscellaneous income

1,003
490

291
3,033

Total non-operating income12,626

35,543

10,375–497
599

Non-operating expenses
Share issuance costs
Commission for purchase of treasury shares
Miscellaneous losses

247

420

10,622

1,517

Ordinary profit

582,378

724,817

Profit before income taxes

582,378

724,817

Income taxes – current
Income taxes – deferred

181,729-20,455

245,372-19,708

Total income taxes

161,274

225,664

Profit421,104

499,152

Total non-operating expenses3(3) Statement of changes in equity
Previous fiscal year (from October 1, 2020 to September 30, 2021)(Unit: thousands of yen)
Shareholders’ equity
Capital surplus

Share capital

Opening balance

Retained earnings

Legal capitalsurplus

Total capitalsurplus415,279

271,679

271,679

492,238

492,238

492,238

Other retained
earnings
Legal retained
Retainedearnings
earnings
brought
forward783

1,521,260

Total retained
earnings

1,522,043

Total
Treasury shares shareholders’equity-177

2,208,824

Changes during period
Issuance of new shares

984,477

Dividends of surplus-136,079-136,079-136,079

Profit421,104

421,104

421,104

Net changes in items
other than shareholders'equityTotal changes during
periodEnding balance492,238

492,238

492,238–

285,025

285,025–

1,269,502

907,517

763,917

763,917783

1,806,285

1,807,068-177

3,478,327

Valuation and translation
adjustments
Valuation
Total valuationdifference onand translation
available-foradjustments
sale securities
Opening balance

22,983

22,983

Total net
assets2,231,808

Changes during period
Issuance of new shares

984,477

Dividends of surplus-136,079

Profit421,104

Net changes in items
other than shareholders'equityTotal changes during
periodEnding balance-2,567-2,567-2,567-2,567-2,567

1,266,935

20,416

20,416

3,498,743

4

Current fiscal year (from October 1, 2021 to September 30, 2022)(Unit: thousands of yen)
Shareholders’ equity
Capital surplus

Share capital

Opening balance

Retained earnings

Legal capitalsurplus

Total capitalsurplus907,517

763,917

763,917

653

653

653

Other retained
earnings
Legal retained
Retainedearnings
earnings
brought
forward783

1,806,285

Total retained
earnings

1,807,068

Total
Treasury shares shareholders’equity-1773,478,327

Changes during period
Issuance of new shares

1,307

Dividends of surplus-233,518-233,518-233,518

Profit499,152

499,152

499,152

Purchase of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodEnding balance-199,998

653

653

653

–

265,634

265,634-199,998

66,943

908,171764,571764,571783

2,071,920

2,072,703-200,175

3,545,270

Valuation and translation
adjustments
Valuation
Total valuationdifference onand translation
available-foradjustments
sale securities
Opening balance-199,998

20,416

20,416

Total net
assets3,498,743

Changes during period
Issuance of new shares

1,307

Dividends of surplus-233,518

Profit499,152

Purchase of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
period

4,351

4,351

4,351

4,351

4,351

71,294Ending balance

24,767

24,7673,570,038-199,9985

(4) Statement of cash flows

Cash flows from operating activities
Profit before income taxes

Previous fiscal year
(from October 1, 2020 to
September 30, 2021)(Unit: thousands of yen)
Current fiscal year
(from October 1, 2021 toSeptember 30, 2022)

582,378

724,817

Depreciation
Amortization of guarantee deposits

25,9181,846

39,980
1,554

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Interest and dividend income

1,491
37,185

1,346
41,020

2,100

4,450

-3,492-6,248

Subsidy income
Surrender value of insurance policies-7,639-1,003-25,971-291

Share issuance costs
Commission for purchase of treasury shares

10,375–497
599-248,736––-224,688

Decrease (increase) in inventories
Decrease (increase) in other current assets

31,396
8,512

10,236-45,371

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

41,162-14,564

70,981-1,649

Increase (decrease) in other current liabilities
Other, net

18,710
247

4,813
71

Subtotal

485,887

596,150

3,492
1,003

6,248
291

Subsidies received
Income taxes paid

14,387-173,355

26,159-191,844

Net cash provided by (used in) operating activities

331,415

437,003

Purchase of investment securities
Purchase of shares of subsidiaries and associates-35,000–-150,213-72,524

Payments into time deposits
Proceeds from withdrawal of time deposits-10,187
10,186-10,188
10,187

Payments into installment savings
Proceeds from withdrawal of installment savings-264,000
264,000-264,000
264,000

Purchase of property, plant and equipment
Purchase of intangible assets-1,181-44,850-3,949-31,858

Decrease (increase) in trade receivables
Decrease (increase) in trade receivables and contract assets

Interest and dividends received
Proceeds from surrender value of insurance policies

Cash flows from investing activities–-2,095-81,032-260,641

Proceeds from issuance of shares
Purchase of treasury shares

968,313–809-200,598

Dividends paid
Proceeds from issuance of share acquisition rights-136,057
5,904-233,551–

Payments of leasehold and guarantee deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities

838,159-433,340

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities

1,088,542-256,978

Opening balance of cash and cash equivalents

1,659,931

2,748,473

Ending balance of cash and cash equivalents

2,748,473

2,491,494

6