AIT : 〔Delayed〕Consolidated Financial Results for the Fiscal Year Ended February 28,2022

April 13, 2022

Consolidated Financial Results for the Fiscal Year Ended February 28, 2022

[Japanese GAAP]

(March 1, 2021 - February 28, 2022)

(1) Consolidated results of operations

(Percentages represent year-on-year changes)Operating revenueOperating profitOrdinary profitProfit attributable to owners of parent

Million yen

%

Fiscal year ended Feb. 28, 2022 Fiscal year ended Feb. 28, 2021 Note: Comprehensive income

59,931 45,797

30.9 1.8

Million yen 3,581 2,304

Million yen 3,821 2,545

% 50.1 30.7

Million yen 2,367 1,732

Reference: Equity in earnings of affiliates Fiscal year ended Feb. 28, 2022: 198 million yen Fiscal year ended Feb. 28, 2021: 166 million yen

Note: AIT acquired 199,800 treasury shares by November 6, 2020 upon resolution of the Board of Directors on July 13, 2020.

The net income per share for the fiscal year ended February 28, 2022 is calculated using an average number of shares during the period of 23,493,647.

(2) Consolidated financial position

As of Feb. 28, 2022: 13,931 million yenAs of Feb. 28, 2021:

12,022 million yen

(3) Consolidated cash flows

Notes: 1. Breakdown of the year-end dividend for the fiscal year ended February 28, 2021

Ordinary dividend: ¥18.00; Commemorative dividend to celebrate 25th founding anniversary: ¥2.00 2. Breakdown of the year-end dividend for the fiscal year ended February 28, 2022

Ordinary dividend: ¥29.00; Commemorative dividend to celebrate 15th listing anniversary: ¥7.00

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2023 (March 1, 2022 - February 28, 2023)

(Percentages represent year-on-year changes)Operating revenueOperating profitOrdinary profitProfit attributable to owners of parent

Net income per share

* 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) 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:

• 3) Changes in accounting-based estimates:

• 4) Restatements:

None None None

(3) Number of outstanding shares (common stock)

• 1) Number of shares outstanding at the end of the period (including treasury shares)As of Feb. 28, 2022: 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 Feb. 28, 2022:

419,975 shares As of Feb. 28, 2021:

419,912 shares

3) Average number of shares during the period

Fiscal year ended Feb. 28, 2022: 23,493,647 sharesFiscal year ended Feb. 28, 2021:

23,600,359 shares

Reference: Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (March 1, 2021 - February 28, 2022)

(1) Non-consolidated results of operations

(Percentages represent year-on-year changes)Operating revenueOperating profit

Ordinary profit

ProfitFiscal year ended Feb. 28, 2022

Fiscal year ended Feb. 28, 2021

Million yen 34,292 24,282

% 41.2 10.6

Million yen 2,491 1,329

% 87.4 56.6

% 68.6 20.9

% 70.9 18.4

As of Feb. 28, 2022: 10,620 million yen

As of Feb. 28, 2021: 9,603 million yen

2. Non-consolidated Forecast for the Fiscal Year Ending February 28, 2023 (March 1, 2022 - February 28, 2023)

(Percentages represent year-on-year changes)

Operating revenueThe current financial report is not subject to audit 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. Overview of Results of Operations, (4) Outlook" on page 4 of the attachments regarding preconditions or other related matters for forecasts shown above.

Financial results meeting and supplementary information

AIT has canceled this year's financial results meeting for institutional investor and analysts for the safety of participants in order to prevent the spread of COVID-19. AIT plans to post materials that would have been used for this year's financial results meeting on its website.

Change in units for monetary figures

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

Contents of Attachments

1. Overview of Results of Operations 2

(1) Results of Operations 2

(2) Financial Position 3

(3) Cash Flows 3

(4) Outlook 4

(5) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years 5

2. Basic Approach to the Selection of Accounting Standards 5

3. Consolidated Financial Statements and Notes 6

(1) Consolidated Balance Sheet 6

(2) Consolidated Statements of Income and Comprehensive Income 8

(3) Consolidated Statement of Changes in Equity 10

(4) Consolidated Statement of Cash Flows 12

(5) Notes to Consolidated Financial Statements 14

Going Concern Assumption 14

Changes in the Scope of Consolidation or Application of the Equity Method 14

Segment and Other Information 14

Per Share Information 17

Subsequent Events 17

1. Overview of Results of Operations

(1) Results of Operations

During the fiscal year ended February 28, 2022, there was a slow recovery of the Japanese economy despite many challenges due to the pandemic. However, the outlook for the economy remains uncertain. The business climate for the AIT Group remained challenging because of sluggish consumer spending during the pandemic, the increasing speed of inflation, and shortages of shipping containers and space on containerships and other cargo ships.

The AIT Group enlarged its lineup of logistics services during the fiscal year, going beyond ocean shipments to provide cargo transport combining air and sea, sea and overseas land, and many other types of services. By adding new customers and strengthening relationships with current customers, these activities contributed to growth in the volume of cargo and earnings. There were also many sales activities with the goal of receiving even more orders for services associated with imports and exports, such as customs clearance, delivery, inspections, needle detection and processing. During the fiscal year, the volume of household products, home appliances and other consumer products increased because of the growth of consumption linked with reluctance to go out during the pandemic. There was also a small recovery in the volume of apparel shipments.

There were shortages of shipping containers and capacity for cargo on ships throughout the fiscal year and sea freight rates increased. In this business climate, the AIT Group was able to increase revenue and earnings by continuously negotiating with shipping companies while providing customers with consistent and reliable international cargo transportation services. In addition, the AIT Group continued to review and hold down selling, general and administrative expenses in order to increase earnings.

Operating revenue increased 30.9% year-on-year to 59,931 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 55.4% to 3,581 million yen, ordinary profit was up 50.1% to 3,821 million yen and profit attributable to owners of parent increased 36.6% to 2,367 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 fiscal year ended February 28, 2022 and excluded from consolidation. In the China reportable segment, Nisshin International Trading Co.,Ltd. is currently being liquidated.

1) Japan

Economic activity was restricted by declarations of a state of emergency during the fiscal year and there was a big negative impact on consumer spending. As a result, economic growth began to slow down.

Although market conditions in Japan were difficult, consumer spending associated with staying home for safety during the pandemic continued to climb. There were sales activities to receive more orders for integrated freight transport service and measures to enlarge the lineup of international cargo transportation services. To further improve services for customers, activities involving the digital transformation were another priority in Japan during the fiscal year.

Due to these activities, the number of containers handled in the sea freight sector increased 2.7% from one year earlier to 267,155 TEU for imports and the total for imports and exports increased 2.3% to 280,585 TEU. Customs clearance orders were higher than one year earlier, increasing 4.0% to 145,931 as orders at subsidiaries began to recover. Furthermore, in addition to the growth in the volume of shipments, high freight rates made a big contribution to operating revenue and the gross profit. We are constantly reexamining selling, general and administrative expenses and using the digital transformation to operate more efficiently in order to cut costs for more earnings growth.

As a result, operating revenue increased 36.0% from one year earlier to 50,268 million yen. Segment profit increased 93.1% to 3,102 million yen mainly because of a big increase in the gross profit and measures to hold down 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. However, 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 9.2% from one year earlier to 8,353 million yen and segment profit decreased 37.1% to 390 million yen because of higher expenses caused partly by the temporary reduction of legal welfare expenses in China during the previous fiscal year and by adjustments used for the preparation of the consolidated financial statements.

3) Other

Although revenue declined at the Myanmar subsidiary because of the pandemic and civil unrest, the volume of cargo and revenue remained steady at the subsidiary in Taiwan. Revenue at the subsidiary in Vietnam recovered rapidly after the pandemic lockdown ended. As a result, operating revenue increased 10.5% from one year earlier to 1,309 million yen and segment profit increased 13.5% to 88 million yen.

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

(2) Financial Position

Assets

Total assets increased 1,885 million yen from the end of the previous fiscal year to 23,516 million yen at the end of the fiscal year under review.

Current assets increased 2,382 million yen to 19,235 million yen. This was mainly due to increases in cash and deposits of 2,000 million yen, advances paid of 253 million yen and notes and accounts receivable-trade of 250 million yen.

Non-current assets decreased 496 million yen to 4,280 million yen. This was mainly due to decreases in customer-related assets of 263 million yen, goodwill of 108 million yen and deferred tax assets of 65 million yen.

Liabilities

Total liabilities decreased 16 million yen to 9,382 million yen.

Current liabilities increased 111 million yen to 7,875 million yen. This was mainly due to increases in accounts payable-trade of 759 million yen, income taxes payable of 237 million yen and provision for bonuses of 57 million yen, which was partially offset by a decrease in current portion of long-term borrowings of 1,000 million yen.

Non-current liabilities decreased 127 million yen to 1,507 million yen. This was mainly due to a decrease in deferred tax liabilities of 117 million yen.

Net assets

Net assets increased 1,902 million yen to 14,134 million yen. This was mainly due to a booking of profit attributable to owners of parent of 2,367 million yen, dividends distributed from retained earnings of 986 million yen and a 529 million yen increase in foreign currency translation adjustment.

(3) Cash Flows

Cash and cash equivalents (hereinafter "net cash") at the end of the fiscal year under review were 12,419 million yen, up 2,367 million yen over the end of the previous fiscal year.

The cash flow components and the main reasons for changes are as described below.

Cash flows from operating activities

Net cash provided by operating activities was 3,772 million yen, an increase of 2,251 million yen from the

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