Unite and Grow : Summary of Consolidated Financial Results for the Three Months Ended March 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 Three Months Ended March 31, 2021 (Based on Japanese GAAP)

May 14, 2021

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 to file Quarterly Securities Report:

May 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 three months ended March 31, 2021 (from January 1, 2021 to March 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

%

Three months ended March 31, 2021

488

18.4

70

11.5

70

11.6

49

19.7

Three months ended March 31, 2020

412

-

63

-

63

-

41

-

Earnings per share

Diluted earnings per share

Yen

Yen

Three months ended March 31, 2021

13.57

12.56

Three months ended March 31, 2020

11.40

10.52

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of March 31, 2021

1,719

1,223

71.2

As of December 31, 2020

1,770

1,189

67.2

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 December 31, 2020	-	0.00	-	6.00	6.00
Year ending December 31, 2021	-
Year ending December 31, 2021 (Forecast)		0.00	-	8.00	8.00

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 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	2,074	19.7	249	15.2	249	15.0	173		8.7	47.46

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4. Notes
(1)	Changes in significant subsidiaries during the three months ended March 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:	No
(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 March 31, 2021	3,677,000 shares	As of December 31, 2020		3,648,200 shares
	Number of treasury shares at the end of the period
		As of March 31, 2021	26 shares	As of December 31, 2020		26 shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Three months ended March 31, 2021	3,652,334 shares	Three months ended March 31, 2020	3,631,000 shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	1,566,522	1,511,691
Accounts receivable - trade	13,598	15,347
Other	17,966	15,722
Total current assets	1,598,087	1,542,761
Non-current assets
Property, plant and equipment
Buildings, net	74,520	73,591
Other, net	19,361	18,812
Total property, plant and equipment	93,881	92,403
Intangible assets
Software	19,040	26,744
Other	0	-
Total intangible assets	19,040	26,744
Investments and other assets
Deferred tax assets	8,889	6,595
Other	50,828	50,828
Total investments and other assets	59,718	57,423
Total non-current assets	172,640	176,572
Total assets		1,770,727	1,719,334

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			(Thousands of yen)
		As of December 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	7,920	9,705
Current portion of long-term borrowings	7,316	4,565
Accounts payable - other	131,017	53,027
Income taxes payable	42,718	26,034
Advances received	303,426	323,433
Other	67,260	57,852
Total current liabilities	559,659	474,618
Non-current liabilities
Asset retirement obligations	12,205	12,213
Other	9,081	9,079
Total non-current liabilities	21,287	21,293
Total liabilities	580,946	495,911
Net assets
Shareholders' equity
Share capital	305,037	308,027
Capital surplus	284,182	287,172
Retained earnings	600,616	628,277
Treasury shares	(55)	(55)
Total shareholders' equity	1,189,780	1,223,422
Total net assets	1,189,780	1,223,422
Total liabilities and net assets		1,770,727	1,719,334

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Three months ended	Three months ended
		March 31, 2020	March 31, 2021
Net sales	412,359	488,243
Cost of sales	212,759	254,100
Gross profit	199,600	234,142
Selling, general and administrative expenses	136,206	163,436
Operating profit	63,393	70,705
Non-operating income
Interest income	4	6
Other	0	12
Total non-operating income	4	18
Non-operating expenses
Interest expenses	75	51
Share issuance costs	-	19
Other	-	0
Total non-operating expenses	75	71
Ordinary profit	63,321	70,652
Profit before income taxes	63,321	70,652
Income taxes - current	17,816	18,808
Income taxes - deferred	4,118	2,294
Total income taxes	21,935	21,102
Profit	41,386	49,550
Profit attributable to owners of parent		41,386	49,550

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