Gift : Consolidated Financial Results for the Nine Months Ended July 31, 2021

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Nine Months Ended July 31, 2021 (Based on Japanese GAAP)

September 14, 2021

Company name:

GIFT INC.

Stock exchange listing:

Tokyo

Stock code:

9279

URL

http://www.gift-group.co.jp/

Representative:

President and Representative Director

Sho Tagawa

Inquiries:

Managing Director & General Manager,

Norihiko Suehiro

TEL

042-860-7182

Administration Division

Scheduled date to file Quarterly Securities Report:

September 14, 2021

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended July 31, 2021 (from November 1, 2020 to July 31, 2021)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Nine months ended July 31, 2021

9,759

22.4

660

116.2

1,260

249.5

862

373.3

Nine months ended July 31, 2020

7,972

19.8

305

(61.5)

360

(55.1)

182

(63.1)

Earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended July 31, 2021

86.77

86.41

Nine months ended July 31, 2020

18.38

18.27

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of July 31, 2021

8,107

3,898

48.1

As of October 31, 2020

6,872

3,107

45.2

2. Cash dividends

Annual dividends per share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended October 31, 2020

-

0.00

-

10.00

10.00

Year ending October 31, 2021

-

0.00

Year ending October 31, 2021 (Forecast)

-

15.00

15.00

3. Forecast of consolidated financial results for the year ending October 31, 2021 (from November 1, 2020 to October 31, 2021)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	13,730	25.0	930	101.6	1,480	189.1	790	601.2	79.37

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4. Notes
(1)	Changes in significant subsidiaries during the Nine months ended July 31, 2021	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	Yes
(3)	Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
	Changes in accounting policies due to revisions to accounting standards and other regulations:	No
	Changes in accounting policies due to other reasons:			No
	Changes in accounting estimates:				No
	Restatement of prior period financial statements:				No
(4)	Number of issued shares (common shares)
	Total number of issued shares at the end of the period (including treasury shares)
		As of July 31, 2021	9,953,967	shares	As of October 31, 2020		9,930,362	shares
	Number of treasury shares at the end of the period
		As of July 31, 2021	124	shares	As of October 31, 2020		62	shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Nine months ended July 31, 2021	9,942,399	shares	Nine months ended July 31, 2020	9,914,449	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of October 31, 2020	As of July 31, 2021
Assets
Current assets
Cash and deposits	1,791,976	1,926,540
Accounts receivable - trade	232,455	234,803
Merchandise and finished goods	50,358	53,272
Raw materials and supplies	39,489	44,672
Other	139,238	165,935
Allowance for doubtful accounts	△409	△408
Total current assets	2,253,109	2,424,816
Non-current assets
Property, plant and equipment
Buildings and structures	2,869,600	3,639,457
Accumulated depreciation	△676,375	△834,356
Buildings and structures, net	2,193,224	2,805,100
Land	149,501	149,501
Other	1,205,528	1,514,159
Accumulated depreciation	△522,625	△633,226
Other, net	682,902	880,933
Total property, plant and equipment	3,025,629	3,835,536
Intangible assets
Goodwill	145,515	207,101
Other	24,123	16,099
Total intangible assets	169,638	223,201
Investments and other assets
Leasehold and guarantee deposits	733,594	832,336
Other	690,571	792,221
Allowance for doubtful accounts	△435	△435
Total investments and other assets	1,423,731	1,624,121
Total non-current assets	4,618,998	5,682,859
Total assets		6,872,108	8,107,675

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			(Thousands of yen)
		As of October 31, 2020	As of July 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	298,396	361,329
Short-term borrowings	754,861	688,090
Current portion of long-term borrowings	547,192	561,736
Income taxes payable	67,141	381,864
Provision for bonuses	68,166	59,705
Provision for point card certificates	－	5,034
Asset retirement obligations	1,251	－
Other	665,513	795,818
Total current liabilities	2,402,521	2,853,578
Non-current liabilities
Long-term borrowings	1,093,332	1,036,756
Asset retirement obligations	241,030	299,585
Other	27,332	18,861
Total non-current liabilities	1,361,696	1,355,203
Total liabilities	3,764,217	4,208,782
Net assets
Shareholders' equity
Share capital	786,345	790,287
Capital surplus	1,038,473	1,042,415
Retained earnings	1,304,314	2,067,637
Treasury shares	△88	△229
Total shareholders' equity	3,129,044	3,900,110
Accumulated other comprehensive income
Foreign currency translation adjustment	△21,154	△1,216
Total accumulated other comprehensive income	△21,154	△1,216
Total net assets	3,107,890	3,898,893
Total liabilities and net assets		6,872,108	8,107,675

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

		(Thousands of yen)
	Nine months ended	Nine months ended
	July 31, 2020	July 31, 2021
Net sales	7,972,451	9,759,794
Cost of sales	2,352,750	2,696,561
Gross profit	5,619,700	7,063,233
Selling, general and administrative expenses	5,314,436	6,403,170
Operating profit	305,263	660,063

Non-operating income

Interest income

Commission income

Foreign exchange gains

Subsidy income

Compensation income

Other

Total non-operating income

Non-operating expenses

Interest expenses

Prepayment fee

Other

Total non-operating expenses

Ordinary profit

Extraordinary income

Gain on liquidation of subsidiaries Gain on insurance claims

Other

Total extraordinary income

Extraordinary losses

Loss on retirement of non-current assets Loss on sales of non-current assets Loss on temporary closing of stores Other

6,308	6,219
13,875	18,846
－	1,654
33,906	455,969
－	80,000
4,315	41,958
58,405	604,649
1,785	3,545
1,150	－
40	680
2,976	4,226
360,693	1,260,486
10,771	－
9,331	－
1,829	－
21,932	－
4,982	7,081
17,576	－
6,374	－
255	－

Total extraordinary losses	29,188	7,081
Profit before income taxes	353,438	1,253,404
Income taxes	171,161	390,731
Profit	182,276	862,673
Profit attributable to owners of parent	182,276	862,673

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