Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy

between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the First Nine-Month Period of

the Fiscal Year Ending March 31, 2022

(under IFRS)

February 7, 2022

Company name:

ARUHI Corporation (the "Company")

Listing:

Tokyo Stock Exchange

Securities code:

7198

URL:

https://www.aruhi-group.co.jp

Representative:

Hiroshi Hamada, Chairman of the Board, Representative Director, President and CEO

Inquiries:

Yasuko Matsumoto, Managing Director, CFO

TEL:

+81-3-6229-0777

Scheduled date to file interim securities report:

February 14, 2022

Scheduled date to commence dividend payments:

－

Preparation of supplementary material on interim financial results:

Yes

Holding of interim financial results presentation meeting:

Yes (for analysts)

(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Consolidated financial results for the first nine-month period of the fiscal year ending March 31, 2022 (from April 1, 2021 to December 31, 2021)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Operating revenue

Income before tax

Net income

Net income attributable

to owners of the parent

Nine-month period ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

December 31, 2021

19,734

(2.8)

5,375

(9.9)

3,698

(8.6)

3,710

(8.3)

December 31, 2020

20,302

3.8

5,962

(3.1)

4,047

(4.2)

4,047

(4.2)

Total comprehensive

Basic earnings per share

Diluted earnings per

income

share

Nine-month period ended

Millions of yen

%

Yen

Yen

December 31, 2021

3,698

(8.6)

104.74

104.02

December 31, 2020

4,047

(4.2)

114.71

113.35

(2) Consolidated financial position

Equity attributable to

Ratio of equity

Total assets

Total equity

attributable to owners of

owners of the parent

the parent to total assets

As of

Millions of yen

Millions of yen

Millions of yen

%

December 31, 2021

155,769

31,330

31,339

20.1

March 31, 2021

164,762

30,093

30,093

18.3

2. Cash dividends

Annual dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

-

25.00

-

30.00

55.00

March 31, 2021

Fiscal year ending

-

30.00

-

March 31, 2022

Fiscal year ending

March 31, 2022

30.00

60.00

(Forecast)

Note:

Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

(Percentages indicate year-on-year changes.)

Net income

Basic earnings per

Operating revenue

Income before tax

Net income

attributable to

share

owners of the parent

Millions

%

Millions

%

Millions

%

Millions

%

Yen

of yen

of yen

of yen

of yen

Fiscal year ending

25,500

△4.9

6,000

△22.5

4,100

△20.8

4,100

△20.8

115.73

March 31, 2022

Notes: 1. Revisions to the earnings forecasts most recently announced: Yes

2. The forecast of the basic earnings per share is calculated based on the weighted-average number of shares during the nine-month period ended December 31, 2021.

* Notes

  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
  2. Changes in accounting policies and changes in accounting estimates
    1. Changes in accounting policies required by IFRS: Yes
    2. Changes in accounting policies due to other reasons: None
    3. Changes in accounting estimates: None

Note:

For details, please see "(5) Notes to condensed interim consolidated financial statements" in "2. Condensed interim

consolidated financial statements and significant notes thereto" in the attached materials.

(3) Number of issued shares (ordinary shares)

a. Total number of issued shares at the end of the period (including treasury shares)

As of December 31, 2021

36,080,600 shares

As of March 31, 2021

36,080,600 shares

b. Number of treasury shares at the end of the period

As of December 31, 2021

771,860 shares

As of March 31, 2021

578,760 shares

c. Weighted-average number of shares during the period (cumulative from the beginning of the fiscal year)

For the nine-month period ended December 31, 2021

35,426,051 shares

For the nine-month period ended December 31, 2020

35,282,954 shares

  • Interim financial results reports are exempt from interim review conducted by certified public accountants or an audit corporation.
  • Proper use of earnings forecasts, and other special matters (Caution concerning forward-looking statements)
    The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize such statements. Actual business and other results may differ substantially from these forecasts due to various factors.

Table of Contents of Appendix

1. Qualitative information regarding results for the first nine-month period ...........................................................

2

(1)

Explanation of operating results.....................................................................................................................

2

(2)

Explanation of financial position ...................................................................................................................

2

(3)

Explanation of consolidated earnings forecasts and other forward-looking statements ................................

3

2. Condensed interim consolidated financial statements and significant notes thereto............................................

4

(1)

Condensed interim consolidated statement of financial position ...................................................................

4

(2)

Condensed interim consolidated statement of net income and condensed interim consolidated statement

of comprehensive income ..............................................................................................................................

5

(3)

Condensed interim consolidated statement of changes in equity...................................................................

8

(4)

Condensed interim consolidated statement of cash flows..............................................................................

9

(5)

Notes to condensed interim consolidated financial statements ....................................................................

10

(Note on assumption of going concern) ......................................................................................................

10

(Changes in accounting policies) ................................................................................................................

10

(Segment information) ................................................................................................................................

10

- 1 -

1. Qualitative information regarding results for the first nine-month period

  1. Explanation of operating results

    1. In the nine-month period ended December 31, 2021, the business environment affecting the residential housing related industry, to which the Company belongs, has been gradually heading toward normalization against the backdrop of promotion of vaccination against the novel coronavirus disease (hereinafter COVID-
    2. and lifting of the state of emergency, but the situation remains unpredictable. While the number of new housing starts gradually recovered and approaching the level prior to the spread of COVID-19, procurement of building materials was unstable due to a lumber crisis and soaring crude oil prices, and shortages and delays in housing fixtures and appliances have continued, which had some impact on handovers of homes. While the number of contracts signed for preowned condominiums and preowned houses began to recover from a weak trend going into the third quarter, there was also a shortage of residential real estate due to active property purchases by purchase and resale business operators, and an impact on housing demand due to the ongoing rise in housing prices. In light of recent changes in lifestyles such as the widespread adoption of teleworking, the trend toward seeking a more comfortable living environment continues, and there are expectations that willingness to buy homes will proceed at a comparatively solid level. Nevertheless, due to concerns such as the reduction of economic and social activities due to the re-expansion and protracted nature of COVID-19, the delay in recovery cannot be dispelled, and the situation remains unpredictable.
      Given this situation, the number of loan originations (including refinancing) for the Company in the nine- month period ended December 31, 2021 decreased by 14.3% year on year; however, we have strived to re- accelerate growth of housing loan business and continued community-based marketing whereby reaching large real estate companies in cooperation with franchise stores and providing thorough and responsive support to franchise stores through regional branches. At the same time, the buying and reselling business for residential real estate operated by ARUHI Real Estate Technologies Corporation has been performing well. In addition, the Company has strived to strengthen products and services that satisfy customers in all steps related to relocation based on the Mid-term Strategic Plan 2021 such as the launch of "TownU" (a web service that proposes "most livable towns" that match each person's lifestyle and values using AI technology) and has made proactive efforts to improve corporate value.
      As a result, operating revenue for the nine-month period ended December 31, 2021 was ¥19,734 million, a decrease of 2.8% year on year. This was due to strong recurring revenue, with loan management and collection operations increasing 14.9% and insurance-related operations increasing 26.5%, despite loan execution operations decreasing 10.9% year on year and financing operations decreasing 6.1% year on year. Despite efforts to restrain fixed costs, due to an increase in strategic expenses for medium- to long-term growth such as advertising expenses, staff recruitment and investment for use of technology, income before tax decreased 9.9% year on year to ¥5,375 million. Net income decreased 8.6% year on year to ¥3,698 million, and net income attributable to owners of the parent decreased 8.3% year on year to ¥3,710 million.
      As the Company operates within the single segment of housing loan related business, a description by segment is omitted.
  3. Explanation of financial position (Assets)

  4. As of December 31, 2021, assets were ¥155,769 million, a decrease of ¥8,992 million compared with March 31, 2021. This was primarily due to cash and cash equivalents decreasing ¥4,168 million, and operating loans receivable decreasing ¥7,625 million.
    (Liabilities)
    As of December 31, 2021, liabilities were ¥124,438 million, a decrease of ¥10,229 million compared with March 31, 2021. This was primarily due to borrowings decreasing ¥8,068 million and deposits received decreasing ¥3,220 million.
    (Equity)
    As of December 31, 2021, equity was ¥31,330 million, an increase of ¥1,237 million compared with March 31, 2021. This was primarily due to the recording of net income of ¥3,698 million, despite dividends of surplus of ¥2,124 million.
    • 2 -

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Aruhi Corporation published this content on 07 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 February 2022 06:47:09 UTC.