Orchestra : Consolidated Financial Results for the Fiscal Year Ended December 31, 2021

Consolidated Financial Results for the Fiscal Year Ended December 31, 2021

		[Japanese GAAP]
		February 14, 2022
Company name: Orchestra Holdings Inc.	Listing: Tokyo Stock Exchange, First Section
Stock code:	6533	URL: https://orchestra-hd.co.jp/
Representative:	Yoshiro Nakamura, President and Representative Director
Contact:	Naomi Iyogi, Director and CFO
	Tel: [phone]

Scheduled date of Annual General Meeting of Shareholders:	March 29, 2022
Scheduled date of payment of dividend:	March 30, 2022
Scheduled date of filing of Annual Securities Report:	March 30, 2022
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:	Yes (for analysts and institutional investors)

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for 2021 (January 1 to December 31, 2021)

(1) Consolidated results of operations				(Percentages represent year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Million yen	%	Million yen	%	Million yen	%	Million yen		%
2021	16,640	40.7	1,262	84.0	1,286	88.3	757		73.8
2020	11,825	26.6	686	30.0	683	27.8	435		58.5

Note: Comprehensive income (millions of yen)				2021: 933 (up 81.2%)	2020: 514 (up 90.3%)
	Basic earnings per		Diluted earnings		Return on equity	Ordinary profit on	Operating profit to
	share			per share		total assets			net sales
		Yen					Yen					%				%		%
2021		77.33						77.10					24.7				16.9		7.6
2020		47.29						44.39					27.4				16.2		5.8
Reference: Equity in earnings of affiliates (millions of yen)	2021: -						2020: -
(2) Consolidated financial position
	Total assets				Net assets						Equity ratio			Net assets per share
		Million yen			Million yen							%					Yen
As of Dec. 31, 2021		10,560					4,945								40.9				440.50
As of Dec. 31, 2020		4,689					1,885								38.9				186.23
Reference: Shareholders' equity (millions of yen)	As of Dec. 31, 2021: 4,315	As of Dec. 31, 2020: 1,823
(3) Consolidated cash flows
	Cash flows from		Cash flows from			Cash flows from		Cash and cash equivalents
	operating activities		investing activities		financing activities		at end of period
		Million yen			Million yen					Million yen					Million yen
2021		1,113					(32)						2,461				4,958
2020		660					(62)						127				1,413
2. Dividends
		Dividends per share						Total		Payout ratio		Dividend on
																	equity
	1Q-end	2Q-end			3Q-end		Year-end	Total			dividends		(consolidated)
							(consolidated)
	Yen	Yen			Yen		Yen	Yen			Million yen			%	%
2020	-	0.00				-		7.00	7.00				68			14.8	4.2
2021	-	0.00				-		8.00	8.00				78			10.3	2.6
2022 (forecast)	-	0.00				-		9.00	9.00							9.3

3. Consolidated Forecast for 2022 (January 1 to December 31, 2022)

(Percentages represent year-on-year changes)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings per
		owners of parent	share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
First half	-		-	-	-	-	-	-	-	-
Full year	10,000		-	1,670	32.3	1,680	30.6	950	25.5	96.98

Note: The Company plans to adopt "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc. from the beginning of the first quarter of the fiscal year ending December 31, 2022, and the forecasts are based on the application of the standard. The application of this standard has a significant impact on Net sales, and it is not appropriate to compare it with the actual figures for the fiscal year ended December 2021. Accordingly, the year-on-year changes in Net sales are not indicated.

In accordance with the previous standard, for the fiscal year ending December 31, 2022, Net sales were 21,000 million yen (up 26.2% year-on-year).

Consolidated forecast for the first half of 2022 has not been disclosed.

* Notes

(1) Changes in significant subsidiaries during the period (change in scope of consolidation): Yes

Newly added: 2 Name: PAM, INC., R-Stone.co.,ltd.

Excluded: -

1. Changes in accounting policies and accounting-based estimates, and restatements
2. 1. Changes in accounting policies due to revisions in accounting standards, others: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting-based estimates: None
   4. Restatements: None
3. Number of shares issued (common stock)
4. 1. Number of shares issued at the end of the period (including treasury shares)

As of Dec. 31, 2021:	9,796,000 shares	As of Dec. 31, 2020:	9,789,600 shares
2) Number of treasury shares at the end of the period
As of Dec. 31, 2021:	97 shares	As of Dec. 31, 2020:	97 shares
3) Average number of shares during the period
2021:	9,792,556 shares	2020:	9,210,763 shares

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for 2021 (January 1 to December 31, 2021)

(1) Non-consolidated results of operations				(Percentages represent year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit
	Million yen		%	Million yen		%	Million yen		%	Million yen		%
2021	1,313		112.4	471		-		467		-	2,067		-
2020	618		40.1	(11)		-		(28)		-	(72)		-
	Basic earnings per share	Diluted earnings per
	share
			Yen			Yen
2021			211.14			210.53
2020			(7.83)			-
(2) Non-consolidated financial position
	Total assets	Net assets		Equity ratio		Net assets per share
	Million yen	Million yen				%			Yen
As of Dec. 31, 2021			4,046			2,664				62.1			272.03
As of Dec. 31, 2020			3,563			537				14.4			54.94
Reference: Shareholders' equity (millions of yen)	As of Dec. 31, 2021: 2,511	As of Dec. 31, 2020: 512

Reason for difference from previous year's non-consolidated financial results

Orchestra Holdings is a pure holding company, and its main business is to provide administrative services to its subsidiaries. However, the non-consolidated financial results for 2021 is different from 2020 due to sales of part of shares of consolidated subsidiary Sharing Innovations Inc. in 2021 and the recording of a gain on sales of shares of subsidiaries and associates. As Sharing Innovations has remained a consolidated subsidiary of Orchestra Holdings after the sale, the gain on sales of shares of subsidiaries and associates was offset and eliminated in the consolidated statement of income, and does not have a significant impact on the consolidated results of operations.

• The current financial report is not subject to audit by certified public accountants or auditing firms.
• Cautionary statement with respect to forward-looking statements, and other special items
  Forecasts of future performance in this document are based on assumption judged to be valid and information currently available to the Company's management, but are not promises by the Company regarding future performance . Actual results may differ materially from the forecasts for a number of reasons.

Orchestra Holdings Inc. (6533) Financial Results for 2021

Consolidated Financial Statements and Notes

(1) Consolidated Balance Sheet

			(Thousands of yen)
		2020	2021
		(As of Dec. 31, 2020)	(As of Dec. 31, 2021)
Assets
Current assets
Cash and deposits	1,413,863	4,958,380
Notes and accounts receivable-trade	1,674,888	2,528,114
Work in process	19,477	26,445
Deposits paid	145,511	185,049
Other	111,696	158,625
Total current assets	3,365,438	7,856,615
Non-current assets
Property, plant and equipment
Buildings, net	64,007	209,589
Land	-	387,971
Other, net	23,179	22,063
Total property, plant and equipment	87,187	619,624
Intangible assets
Goodwill	596,312	1,139,962
Other	11,860	8,412
Total intangible assets	608,172	1,148,375
Investments and other assets
Investment securities	382,574	583,687
Deferred tax assets	37,760	93,479
Other	207,956	259,195
Total investments and other assets	628,291	936,362
Total non-current assets	1,323,651	2,704,362
Total assets		4,689,089	10,560,977

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Orchestra Holdings Inc. (6533) Financial Results for 2021

			(Thousands of yen)
		2020	2021
		(As of Dec. 31, 2020)	(As of Dec. 31, 2021)
Liabilities
Current liabilities
Accounts payable-trade	1,272,728	1,876,559
Short-term borrowings	28,000	-
Current portion of long-term borrowings	233,360	309,239
Income taxes payable	196,291	1,149,647
Accrued consumption taxes	134,992	279,957
Provision for bonuses	34,124	58,986
Other	339,576	586,403
Total current liabilities	2,239,073	4,260,793
Non-current liabilities
Long-term borrowings	529,800	1,224,915
Other	35,068	129,413
Total non-current liabilities	564,868	1,354,328
Total liabilities	2,803,941	5,615,122
Net assets
Shareholders' equity
Share capital	194,578	194,637
Capital surplus	121,832	1,790,404
Retained earnings	1,426,921	2,115,627
Treasury shares	(102)	(102)
Total shareholders' equity	1,743,231	4,100,567
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	79,441	214,892
Foreign currency translation adjustment	382	(332)
Total accumulated other comprehensive income	79,824	214,560
Share acquisition rights	26,803	154,486
Non-controlling interests	35,289	476,240
Total net assets	1,885,148	4,945,855
Total liabilities and net assets		4,689,089	10,560,977

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