Unite and Grow : 〔Delayed〕Summary of Consolidated Financial Results for the Year Ended December 31,2021（Based on Japanese GAAP）

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 Year Ended December 31, 2021

(Based on Japanese GAAP)

																				February 14, 2022
Company name:	Unite and Grow Inc.
Stock exchange listing:	Tokyo
Stock code:	4486	URL http://www.ug-inc.net/
Representative:	President and CEO			Kiichiro Suda
Inquiries:	Director and General Manager of			Mieko Oka		TEL [phone]
Administration Division
Scheduled date of ordinary general meeting of shareholders:	March 29, 2022
Scheduled date to file Securities Report:			March 29, 2022
Scheduled date to commence dividend payments:			March 30, 2022
Preparation of supplementary material on financial results:			Yes
Holding of financial results meeting:							Yes	(for analysts and institutional investors)
												(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)
(1) Consolidated operating results												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		%
Year ended December 31, 2021		2,075		19.8	289		33.5		294		35.7				198		24.5
Year ended December 31, 2020		1,732		6.7	216		5.5		216		13.4				159		18.9
			Earnings per share		Diluted earnings per	Profit attributable to	Ordinary profit/total	Operating profit/net
					share			owners of			assets				sales
										parent/equity
				Yen			Yen				%					%				%
Year ended December 31, 2021		53.87		50.14				15.4					15.2				13.9
Year ended December 31, 2020		43.79		40.40				14.3					9.6				12.5
(2) Consolidated financial position
			Total assets			Net assets		Equity ratio			Net assets per share
			Millions of yen	Millions of yen					%						Yen
As of December 31, 2021					2,109					1,379					65.4						371.11
As of December 31, 2020					1,770					1,189					67.2						326.13
(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
			Millions of yen	Millions of yen	Millions of yen			Millions of yen
Year ended December 31, 2021					432					(66)					(18)						1,734
Year ended December 31, 2020					235					(38)					(24)						1,386
2. Cash dividends
							Annual dividends per share				Total cash		Dividend payout	Ratio of dividends
																to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total		dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen			Yen	Yen				Yen	Yen	Millions of yen	%			%
Year ended December 31, 2020		-		0.00	-				6.00	6.00			21	13.7			1.8
Year ended December 31, 2021		-		0.00	-				12.00	12.00			44	22.3			3.4
Year ending December 31, 2022		-			0.00	-				14.00	14.00				23.5
(Forecast)

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3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

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	2,368	14.1	307		6.3	307		4.5	224	13.1	60.34

4. Notes

(1) Changes in significant subsidiaries during the year ended December 31, 2021

	(changes in specified subsidiaries resulting in the change in scope of consolidation):	No
(2)	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
(3)	Number of issued shares (common shares)
	Total number of issued shares at the end of the period (including treasury shares)

	As of December 31, 2021	3,717,200	shares	As of December 31, 2020	3,648,200	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	26	shares	As of December 31, 2020	26	shares
Average number of shares during the period
	Year ended December 31, 2021	3,681,944	shares	Year ended December 31, 2020	3,637,448	shares

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CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Assets
Current assets
Cash and deposits	1,566,522	1,914,942
Accounts receivable - trade	13,598	14,472
Supplies	-	561
Other	17,966	16,692
Total current assets	1,598,087	1,946,669
Non-current assets
Property, plant and equipment
Buildings, net	74,520	69,577
Other, net	19,361	16,986
Total property, plant and equipment	93,881	86,564
Intangible assets
Software	19,040	11,689
Other	0	-
Total intangible assets	19,040	11,689
Investments and other assets
Deferred tax assets	8,889	13,715
Other	50,828	50,828
Total investments and other assets	59,718	64,543
Total non-current assets	172,640	162,797
Total assets	1,770,727	2,109,467

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			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	7,920	7,935
Current portion of long-term borrowings	7,316	-
Accounts payable - other	131,017	129,042
Income taxes payable	42,718	79,169
Advances received	303,426	404,308
Other	67,260	89,046
Total current liabilities	559,659	709,503
Non-current liabilities
Asset retirement obligations	12,205	12,237
Other	9,081	8,246
Total non-current liabilities	21,287	20,483
Total liabilities	580,946	729,986
Net assets
Shareholders' equity
Share capital	305,037	311,662
Capital surplus	284,182	290,807
Retained earnings	600,616	777,065
Treasury shares	(55)	(55)
Total shareholders' equity	1,189,780	1,379,480
Total net assets	1,189,780	1,379,480
Total liabilities and net assets	1,770,727	2,109,467

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		December 31, 2020	December 31, 2021
Net sales	1,732,506	2,075,338
Cost of sales	927,574	1,061,144
Gross profit	804,932	1,014,193
Selling, general and administrative expenses	588,201	724,755
Operating profit	216,731	289,438
Non-operating income
Interest income	22	17
Penalty income	-	5,000
Subsidy income	381	-
Other	12	45
Total non-operating income	417	5,062
Non-operating expenses
Interest expenses	266	160
Share issuance costs	12	50
Other	1	0
Total non-operating expenses	280	210
Ordinary profit	216,868	294,289
Extraordinary income
Gain on forgiveness of debts	-	3,060
Total extraordinary income	-	3,060
Extraordinary losses
Loss on retirement of non-current assets	-	8,447
Total extraordinary losses	-	8,447
Profit before income taxes	216,868	288,902
Income taxes - current	57,217	95,390
Income taxes - deferred	378	(4,825)
Total income taxes	57,596	90,564
Profit	159,271	198,338
Profit attributable to owners of parent	159,271	198,338

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