Orchestra : Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2022

Consolidated Financial Results

for the Second Quarter of the Fiscal Year Ending December 31, 2022

(Six Months Ended June 30, 2022)

		[Japanese GAAP]
		August 12, 2022
Company name: Orchestra Holdings Inc.	Listing: Tokyo Stock Exchange
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 filing of Quarterly Report:	August 12, 2022
Scheduled date of payment of dividend:	-

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 the First Six Months of 2022 (January 1 to June 30, 2022)

(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	%
Six months ended Jun. 30, 2022	4,935		-	851	24.9	879	27.1	489	11.9
Six months ended Jun. 30, 2021	7,577		36.5	681	126.2	692	131.1	436	144.3

Note: Comprehensive income (millions of yen)

Six months ended Jun. 30, 2022:	596	(up 32.8%)
Six months ended Jun. 30, 2021:	449	(up 151.3%)

	Basic earnings per	Diluted earnings per share
	share
	Yen	Yen
Six months ended Jun. 30, 2022	49.93	48.91
Six months ended Jun. 30, 2021	44.63	44.49

Note: The Company has adopted "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first quarter of the fiscal year ending December 31, 2022, and the figures for the six months ended Jun. 30, 2022 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 figures for the six months ended Jun. 30, 2021. Accordingly, the year-on-year changes are not indicated.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of Jun. 30, 2022	10,247	5,263	45.7
As of Dec. 31, 2021	10,560	4,945	40.9

Reference: Shareholders' equity (millions of yen) As of Jun. 30, 2022: 4,679 As of Dec. 31, 2021: 4,315

2. Dividends

			Dividends per share
	1Q-end	2Q-end	3Q-end		Year-end	Total
	Yen	Yen	Yen		Yen	Yen
2021	-	0.00	-		8.00	8.00
2022	-	0.00
2022 (forecast)			-		9.00	9.00

Note: Revisions to the most recently announced dividend forecast: None

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
Full year	10,000		-	1,670	32.3	1,680		30.6	950	25.5	96.98
Note: Revisions to the most recently announced consolidated forecast: None

Note: The Company has adopted "Accounting Standard for Revenue Recognition" ( ASBJ Statement No. 29, March 31, 2020), etc. from the beginning 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).

* Notes

(1) Changes in significant subsidiaries during the period (change in scope of consolidation): None

Newly added: - Excluded: -

1. Application of special accounting methods for presenting quarterly consolidated financial statements: None
2. Changes in accounting policies and accounting-based estimates, and restatements
3. 1. Changes in accounting policies due to revisions in accounting standards, others: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting-based estimates: None
   4. Restatements: None
4. Number of shares issued (common stock)
5. 1. Number of shares issued at the end of the period (including treasury shares)

As of Jun. 30, 2022:	9,797,200 shares	As of Dec. 31, 2021:	9,796,000 shares
2) Number of treasury shares at the end of the period
As of Jun. 30, 2022:	97 shares	As of Dec. 31, 2021:	97 shares
3) Average number of shares during the period
Six months ended Jun. 30, 2022:	9,796,506 shares	Six months ended Jun. 30, 2021:	9,790,851 shares

• The current financial report is not subject to quarterly review 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 the Second Quarter of 2022

Quarterly Consolidated Financial Statements and Notes

(1) Quarterly Consolidated Balance Sheet

			(Thousands of yen)
		2021	Second quarter of 2022
		(As of Dec. 31, 2021)	(As of Jun. 30, 2022)
Assets
Current assets
Cash and deposits	4,958,380	3,648,651
Notes and accounts receivable-trade, and contract	-	2,751,246
assets
Notes and accounts receivable-trade	2,528,114	-
Work in process	26,445	13,885
Deposits paid	185,049	235,468
Other	158,625	177,696
Total current assets	7,856,615	6,826,948
Non-current assets
Property, plant and equipment	619,624	632,646
Intangible assets
Goodwill	1,139,962	1,649,102
Other	8,412	12,084
Total intangible assets	1,148,375	1,661,187
Investments and other assets
Investment securities	583,687	760,489
Other	352,675	366,398
Total investments and other assets	936,362	1,126,888
Total non-current assets	2,704,362	3,420,723
Total assets		10,560,977	10,247,672

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Orchestra Holdings Inc. (6533) Financial Results for the Second Quarter of 2022

			(Thousands of yen)
		2021	Second quarter of 2022
		(As of Dec. 31, 2021)	(As of Jun. 30, 2022)
Liabilities
Current liabilities
Accounts payable-trade	1,876,559	2,059,628
Short-term borrowings	-	36,000
Current portion of long-term borrowings	309,239	296,504
Income taxes payable	1,149,647	346,112
Accrued consumption taxes	279,957	131,430
Provision for bonuses	58,986	27,803
Other	586,403	696,539
Total current liabilities	4,260,793	3,594,017
Non-current liabilities
Long-term borrowings	1,224,915	1,171,181
Other	129,413	219,115
Total non-current liabilities	1,354,328	1,390,296
Total liabilities	5,615,122	4,984,314
Net assets
Shareholders' equity
Share capital	194,637	195,497
Capital surplus	1,790,404	1,674,334
Retained earnings	2,115,627	2,526,370
Treasury shares	(102)	(102)
Total shareholders' equity	4,100,567	4,396,099
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	214,892	284,784
Foreign currency translation adjustment	(332)	(1,530)
Total accumulated other comprehensive income	214,560	283,253
Share acquisition rights	154,486	154,001
Non-controlling interests	476,240	430,003
Total net assets	4,945,855	5,263,357
Total liabilities and net assets	10,560,977	10,247,672

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Orchestra Holdings Inc. (6533) Financial Results for the Second Quarter of 2022

1. Quarterly Consolidated Statements of Income and Comprehensive Income (Quarterly Consolidated Statement of Income)
   (For the Six-month Period)

			(Thousands of yen)
		First six months of 2021	First six months of 2022
		(Jan. 1 - Jun. 30, 2021)	(Jan. 1 - Jun. 30, 2022)
Net sales	7,577,671	4,935,225
Cost of sales	5,783,108	2,454,095
Gross profit	1,794,562	2,481,129
Selling, general and administrative expenses	1,112,718	1,629,384
Operating profit	681,844	851,744
Non-operating income
Interest and dividend income	14	260
Subsidy income	6,736	16,538
Gain on adjustment of account payable	4,455	-
Rental income from real estate	-	17,692
Other	1,594	2,586
Total non-operating income	12,800	37,078
Non-operating expenses
Interest expenses	1,310	1,916
Commission expenses	908	3,684
Depreciation	-	3,416
Total non-operating expenses	2,219	9,018
Ordinary profit	692,425	879,804
Profit before income taxes	692,425	879,804
Income taxes-current	241,908	320,731
Income taxes-deferred	6,445	30,684
Total income taxes	248,354	351,416
Profit	444,070	528,388
Profit attributable to non-controlling interests	7,151	39,279
Profit attributable to owners of parent	436,919	489,109

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