Consolidated Financial Results for the Six Months Ended September 30, 2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

	Consolidated Financial Results
	for the Six Months Ended September 30, 2021
	[Japanese GAAP]
	November 05, 2021
Company name:	Qol Holdings Co., Ltd.
Stock exchange listing:	Tokyo
Code number:	3034
URL:	https://www.qolhd.co.jp/eng/
Representative:	Takashi Nakamura, President and Representative Director
Contact:	Yutaka Togashi, Director
Phone:	[phone]

Scheduled date of filing quarterly securities report:			November 12, 2021
Scheduled date of commencing dividend payments:			December 01, 2021
Availability of supplementary briefing material on quarterly financial results:	Yes
Schedule of quarterly financial results briefing session:			Yes
						(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (April 01, 2021 to September 30, 2021)
(1) Consolidated Operating Results				(% indicates changes from the previous corresponding period.)
	Net sales			Operating profit	Ordinary profit	Profit attributable to
			owners of parent
Six months ended	Million yen		%		Million yen	%	Million yen	%	Million yen		%
September 30, 2021	81,814		3.4		4,177	100.8	4,274	102.7	2,455		289.4
September 30, 2020	79,090		(2.7)		2,080	(39.4)	2,109	(41.7)	630		(65.6)

(Note) Comprehensive income:	Six months ended September 30, 2021:
	Six months ended September 30, 2020:

¥	2,443 million	[	307.5%]
¥	599 million	[	(68.6) %]

	Basic earnings		Diluted earnings per
	per share		share
Six months ended		Yen	Yen
September 30, 2021		66.98	-
September 30, 2020		16.75	-

(Reference)

							As of	¥	6,493 million
EBITDA							September 30, 2021:
(Operating profit + Depreciation + Amortization of goodwill)				As of	¥	4,377 million
							September 30, 2020:
							As of	¥	4,024 million
Net income before Amortization of goodwill				September 30, 2021:
(Profit attributable to owners of parent + Amortization of goodwill)			As of	¥	2,159 million
							September 30, 2020:
							As of	¥	109.78
EPS before Amortization of goodwill				September 30, 2021:
(Profit before Amortization of goodwill /Average number of shares during the period)	As of	¥	57.34
							September 30, 2020:
(2) Consolidated Financial Position
		Total assets		Net assets	Capital adequacy ratio
As of		Million yen			Million yen	%
September 30, 2021		97,565			41,066	42.1
March 31, 2021		100,571			41,834	40.9
(Reference) Equity:	As of September 30, 2021:	¥	41,026 million
	As of March 31, 2021:	¥	41,162 million

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2. Dividends

			Annual dividends
	1st	2nd	3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
	Yen	Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2021	-	14.00	-		14.00	28.00
Fiscal year ending March 31, 2022	-	14.00
Fiscal year ending March 31, 2022			-		14.00	28.00
(Forecast)
(Note) Revision to the forecast for dividends announced most recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

175,000

8.1

10,000

35.8

10,000

35.1

5,000

48.6

136.39

(Note) Revision to the financial results forecast announced most recently:

No

* Notes:

(1) Changes in significant subsidiaries during the six months ended September 30, 2021

(changes in specified subsidiaries resulting in changes in scope of consolidation):

No

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:

No

(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement

1)

Changes in accounting policies due to the revision of accounting standards:

Yes

2)

Changes in accounting policies other than 1) above:

No

3)

Changes in accounting estimates:

No

4)

Retrospective restatement:

No

(4) Total number of issued shares (common shares)

1)

Total number of issued shares at the end of the period (including treasury shares):

September 30, 2021:

38,902,785

shares

March 31, 2021:

38,902,785

shares

2)

Total number of treasury shares at the end of the period:

September 30, 2021:

2,182,509

shares

March 31, 2021:

2,291,509

shares

3) Average number of shares during the period:

Six months ended September 30, 2021:

36,660,834

shares

Six months ended September 30, 2020:

37,655,426

shares

(Note) Treasury stock includes shares owned by the exclusive trust account of the Company's Employee Stock Ownership Association.

(Remarks) Supplementary Material is available on our website. https://www.qolhd.co.jp/eng/ir/library/supplementarymaterial.html

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Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Million yen)
			As of March 31,2021	As of September 30,2021
Assets
	Current assets
		Cash and deposits	19,648	16,431
		Notes and accounts receivable - trade	18,231	-
		Notes and accounts receivable - trade, and contract	-	17,670
		assets
		Merchandise and finished goods	4,606	5,701
		Work in process	127	156
		Supplies	120	124
		Other	2,766	2,452
		Allowance for doubtful accounts	(2)	(3)
		Total current assets	45,499	42,532
	Non-current assets
		Property, plant and equipment
		Buildings and structures, net	6,380	6,481
		Tools, furniture and fixtures, net	1,280	1,344
		Land	4,762	4,855
		Other, net	307	196
		Total property, plant and equipment	12,730	12,877
		Intangible assets
		Goodwill	34,071	33,695
		Software	508	618
		Other	358	280
		Total intangible assets	34,938	34,594
		Investments and other assets
		Investment securities	183	165
		Leasehold and guarantee deposits	3,783	3,764
		Deferred tax assets	1,904	1,936
		Other	1,535	1,700
		Allowance for doubtful accounts	(12)	(12)
		Total investments and other assets	7,393	7,554
		Total non-current assets	55,062	55,025
	Deferred assets
		Bond issuance costs	9	7
		Total deferred assets	9	7
	Total assets	100,571	97,565

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				(Million yen)
			As of March 31,2021	As of September 30,2021
Liabilities
	Current liabilities
		Accounts payable - trade	19,822	18,037
		Short-term borrowings	200	-
		Current portion of bonds payable	1,108	1,008
		Current portion of long-term borrowings	10,261	9,978
		Income taxes payable	1,693	2,080
		Provision for bonuses	2,281	2,488
		Other	3,343	2,987
		Total current liabilities	38,709	36,580
	Non-current liabilities
		Bonds payable	1,416	962
		Long-term borrowings	16,736	16,858
		Deferred tax liabilities	302	302
		Provision for retirement benefits for directors	30	27
		Retirement benefit liability	650	649
		Asset retirement obligations	809	834
		Other	81	283
		Total non-current liabilities	20,026	19,918
	Total liabilities	58,736	56,498
Net assets
	Shareholders' equity
		Share capital	5,786	5,786
		Capital surplus	13,490	11,276
		Retained earnings	25,364	27,292
		Treasury shares	(3,360)	(3,198)
		Total shareholders' equity	41,280	41,156
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	(118)	(129)
		securities
		Total accumulated other comprehensive income	(118)	(129)
	Non-controlling interests	672	39
	Total net assets	41,834	41,066
Total liabilities and net assets	100,571	97,565

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

				(Million yen)
			For the six months	For the six months
			ended September 30,2020	ended September 30,2021
Net sales	79,090	81,814
Cost of sales	70,008	70,957
Gross profit	9,082	10,857
Selling, general and administrative expenses	7,001	6,679
Operating profit	2,080	4,177
Non-operating income
	Rental income from buildings		15	17
	Commission income	27	42
	Surrender value of insurance policies		-	3
	Subsidy income	4	9
	Guarantee commission received		25	29
	Other	56	81
	Total non-operating income		129	184
Non-operating expenses
	Interest expenses		55	52
	Other	45	35
	Total non-operating expenses		100	87
Ordinary profit	2,109	4,274
Extraordinary income
	Gain on sale of non-current assets	4	1
	Gain on sale of investment securities		204	0
	Gain on reversal of provision for withdraw loss from		-	71
	employees' pension fund
	Total extraordinary income		209	73
Extraordinary losses
	Loss on retirement of non-current assets		35	18
	Loss on sale of non-current assets	0	0
	Impairment losses		396	-
	Loss on valuation of shares of subsidiaries	-	49
	Total extraordinary losses		432	67
Profit before income taxes	1,886	4,280
Income taxes	1,179	1,825
Profit	706	2,454
Profit (loss) attributable to non-controlling interests	76	(0)
Profit attributable to owners of parent	630	2,455

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