AIT : 〔Delayed〕Consolidated Financial Results for the First Quarter of the Fiscal Year Ending February 28,2022

(Percentages represent year-on-yearchanges)

		July 13, 2021
	Consolidated Financial Results
	for the First Quarter of the Fiscal Year Ending February 28, 2022
	(Three Months Ended May 31, 2021)
		[Japanese GAAP]
Company name:	AIT CORPORATION	Listing: TSE 1st section
Securities code:	9381	URL: http://www.ait-jp.com/
Representative:	Hidekazu Yagura, President and CEO
Contact:	Toshiaki Uchida, Executive Officer, General Manager, Accounting & Finance Dept.
	Tel: [phone]
Scheduled date of filing of Quarterly Report:	July 15, 2021
Scheduled date of payment of dividend:	-
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:	None

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

1. Consolidated Financial Results for the First Quarter (March 1, 2021 - May 31, 2021) of the Fiscal Year Ending February 28, 2022

(1) Consolidated results of operations

	Operating revenue	Operating profit	Ordinary profit	Profit attributable to
	owners of parent
	Million yen	%		Million yen	%	Million yen	%	Million yen	%
Three months ended May 31, 2021	13,515	22.1		741	71.8	821	61.1	517	49.4
Three months ended May 31, 2020	11,073	(1.5)		431	28.7	509	30.5	346	37.4
Note: Comprehensive income	Three	months	ended May 31, 2021: 769 million yen	(up 203.1%)
	Three months ended May 31, 2020: 253 million yen	(down 20.9%)
	Net income per share		Diluted net income per share
		Yen				Yen
Three months ended May 31, 2021		22.01				-
Three months ended May 31, 2020		14.61				-

Note: AIT acquired 199,800 treasury shares upon resolution of the Board of Directors on July 13, 2020. The net income per share for the fiscal year ending February 28, 2022 is calculated using an average number of shares during the period of 23,493,688.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio
	Million yen		Million yen	%
As of May 31, 2021	22,449		12,531	54.8
As of Feb. 28, 2021	21,630		12,231	55.6
Reference: Equity capital	As of May 31, 2021: 12,313 million yen	As of Feb. 28, 2021: 12,022 million yen

2. Dividends

						Dividend per share
		1Q-end			2Q-end		3Q-end	Year-end	Total
			Yen	Yen		Yen	Yen	Yen
Fiscal year ended Feb. 28, 2021	-		18.00	-	20.00	38.00
Fiscal year ending Feb. 28, 2022	-
Fiscal year ending Feb. 28, 2022 (forecast)				20.00		-	20.00	40.00

Notes: 1. Revision to the most recently announced dividend forecast: None

2. Ordinary dividend: ¥18.00; Commemorative dividend to celebrate 25th founding anniversary: ¥2.00

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2022 (March 1, 2021 - February 28, 2022)

(Percentages represent year-on-year changes)

	Operating revenue	Operating profit	Ordinary profit	Profit attributable	Net income per
	to owners of parent	share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
First half	26,200	21.4	1,320	49.4	1,430	36.0	950	32.7	40.44
Full year	53,000	15.7	2,830	22.8	3,050	19.8	2,040	17.8	86.83

Note: Revision to the most recently announced forecast of consolidated results: Yes

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
   Newly added: -
   Excluded: 1, AIT International of America, Inc.
2. Application of special accounting methods for presenting quarterly consolidated financial statements: None
3. Changes in accounting policies and accounting-based estimates, and restatements

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

(4) Number of outstanding shares (common stock)

1) Number of shares outstanding at the end of the period (including treasury shares)

As of May 31, 2021:	23,913,600 shares	As of Feb. 28, 2021:	23,913,600 shares
2) Number of treasury shares at the end of the period
As of May 31, 2021:	419,912 shares	As of Feb. 28, 2021:	419,912 shares
3) Average number of shares during the period
Three months ended May 31, 2021:	23,493,688 shares	Three months ended May 31, 2020:	23,704,160 shares

The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.

Cautionary statement with respect to forecasts of future performance and other special items

Forward-looking statements in these materials are based on certain assumptions judged to be valid and information currently available to AIT. These statements are not promises by AIT regarding future performance. Actual performance may differ significantly from these forecasts for a number of reasons. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Forecast of Consolidated Results and Other Forward-looking Statements" on page 3 of the attachments regarding preconditions or other related matters for forecasts shown above.

Change in units for monetary figures

Monetary figures in the quarterly consolidated financial statements and in other items had been shown in thousands of yen in prior years. Beginning with the first quarter of the fiscal year ending in February 2022, monetary figures are shown in millions of yen. To facilitate comparisons, figures for the previous first quarter and fiscal year have been also revised to millions of yen.

AIT CORPORATION (9381) Financial Results for the First Quarter of FY2/22

Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Forecast of Consolidated Results and Other Forward-looking Statements	3
2. Quarterly Consolidated Financial Statements and Notes	4
(1)	Quarterly Consolidated Balance Sheet	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
(3)	Notes to Quarterly Consolidated Financial Statements	8
	Going Concern Assumption	8
	Significant Changes in Shareholders' Equity	8
	Changes in the Scope of Consolidation or Application of the Equity Method	8
	Additional Information	8
	Segment and Other Information	9

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AIT CORPORATION (9381) Financial Results for the First Quarter of FY2/22

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

During the first quarter of the fiscal year ending February 28, 2022, another wave of COVID-19 infections severely restricted economic and social activities in Japan. The business climate remains extremely challenging and the economic outlook is still unclear.

Although the new wave of infections did not affect cargo movements, another state of emergency in some areas of Japan has created more concerns about consumer spending. As a result, the business climate for the AIT Group remains uncertain.

During the first quarter, the AIT Group focused on receiving orders for cargo from China and Southeast Asia going to Japan by sea. There were also many sales activities to receive orders for services associated with imports and exports, such as customs clearance, delivery, inspections, needle detection and processing. As in the previous fiscal year, there was a small volume of apparel products because of the COVID-19 crisis. However, the volume of household products, home appliances and other products where demand is increasing as people stay home remained high.

There has been a global shortage of shipping containers since the fall of 2020 due to the COVID-19 pandemic. This has caused a big increase in freight rates on some routes used by the AIT Group. Group companies responded by taking numerous actions for providing stable international cargo transportation services to customers. There is still a shortage of containers and freight rates remain high on some routes. These high rates made a contribution to revenue and earnings growth in the first quarter.

In addition, the AIT Group continued to review and hold down personnel expenses and other components of selling, general and administrative expenses in order to increase earnings.

Operating revenue increased 22.1% year-on-year to 13,515 million yen. Earnings at all levels were much higher than one year earlier mainly because of the significant increase in operating revenue. Operating profit increased 71.8% to 741 million yen, ordinary profit was up 61.1% to 821 million yen and profit attributable to owners of parent increased 49.4% to 517 million yen.

Results by business segment are as follows.

In Other, which is not a reportable segment, U.S. subsidiary AIT International of America, Inc. was liquidated in the first quarter of the current fiscal year and excluded from consolidation.

1) Japan

In the first quarter, another state of emergency severely impacted consumer spending and other economic activity in Japan, further delaying the recovery of the Japanese economy.

Although market conditions were challenging, consumer spending associated with staying home for safety increased. To receive more orders for integrated freight transport services, there were many activities to add new customers and raise the volume of business with existing customers.

Due to these activities, the number of containers handled in the sea freight sector increased 4.8% from one year earlier to 68,918 TEU for imports and the total for imports and exports increased 4.3% to 72,323 TEU. Customs clearance orders were about the same, increasing 1.2% to 36,935.

Freight rates increased significantly on some routes used by the AIT Group and remain high because of the shipping container shortage that started in the fall of 2020. These high rates made a big contribution to operating revenue and the gross profit.

As a result, operating revenue increased 25.3% from one year earlier to 11,440 million yen. Segment profit increased 88.1% to 659 million yen mainly because of a big increase in the gross profit and measures to hold down personnel expenses and expenses for sales activities.

2) China

The consistently low volume of apparel shipments makes it very difficult to receive orders for merchandise inspections, needle detection and other services associated with these shipments. The slow cargo movements in

2

AIT CORPORATION (9381) Financial Results for the First Quarter of FY2/22

February and March 2020 in China caused by the COVID-19 outbreak ended quickly. In the first quarter of the current fiscal year, cargo movements in China were normal and the volume of freight for Japan handled by the AIT Group has recovered in comparison with one year earlier. These favorable trends are creating more opportunities involving cargo shipments to increase revenue in China.

As a result, operating revenue increased 12.0% from one year earlier to 1,858 million yen and segment profit increased 27.5% to 76 million yen.

3) Other

Although operating revenue was stable at subsidiaries in Taiwan and Vietnam, revenue declined at the Myanmar subsidiary because of the pandemic and civil unrest. The performance of this segment was also affected by the liquidation of a U.S. subsidiary. As a result, operating revenue decreased 22.8% to 216 million yen and segment profit decreased 73.7% to 5 million yen.

Note: TEU (twenty-foot equivalent unit) is a unit of cargo capacity based on a standard intermodal container.

1. Explanation of Financial Position Assets

Total assets increased 818 million yen from the end of the previous fiscal year to 22,449 million yen at the end of the period under review.

Current assets increased 894 million yen to 17,748 million yen. This was mainly due to an increase in cash and deposits of 907 million yen.

Non-current assets decreased 76 million yen to 4,701 million yen. This was mainly due to decreases in customer-related assets of 65 million yen and goodwill of 27 million yen.

Liabilities

Total liabilities increased 519 million yen to 9,918 million yen.

Current liabilities increased 545 million yen to 8,309 million yen. This was mainly due to increases in accounts payable-trade of 606 million yen and provision for bonuses of 190 million yen, which were partially offset by a decrease in income taxes payable of 271 million yen.

Non-current liabilities decreased 26 million yen to 1,608 million yen. This was mainly due to a decrease in retirement benefit liability of 14 million yen.

Net assets

Net assets increased 299 million yen to 12,531 million yen. This was mainly due to a booking of profit attributable to owners of parent of 517 million yen, dividends distributed from retained earnings of 469 million yen and a 239 million yen increase in foreign currency translation adjustment.

(3) Explanation of Forecast of Consolidated Results and Other Forward-looking Statements

Based on the current performance trends, the AIT Group has revised the full year forecasts of consolidated results for the fiscal year ending February 28, 2022, which was announced on April 14, 2021. For further details, please refer to the press release "Revision of Consolidated Forecast" (Japanese version only) announced today.

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