Bewith : Consolidated Financial Results for the Nine Months Ended February 28, 2022

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Consolidated Financial Results for the Nine Months Ended February 28, 2022

[Japanese GAAP]

April 13, 2022

Company name: Bewith, Inc.

Stock exchange listing: Tokyo Stock Exchange Securities code: 9216

URL:https://www.bewith.net/

Representative: Koichi Morimoto, President and CEO

Contact: Kenji Ijima, Executive Vice President and Member of the Board Phone: +81-3-6631-6005

Scheduled date of filing quarterly securities report: April 13, 2022 Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on quarterly financial results: Available Schedule of quarterly financial results briefing session: Not scheduled

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Nine Months Ended February 28, 2022 (June 1, 2021 - February 28, 2022)

(1) Consolidated Operating Results (Cumulative) (% indicates changes from the previous corresponding period.)

(Note) Comprehensive income: Nine months ended February 28, 2022: ¥1,439 million [-%]

Nine months ended February 28, 2021: ¥ - million [-%]

(Notes) 1. As quarterly consolidated financial statements were not created for the nine months ended February 28, 2021, figures for that period and year-on-year percentage changes for the nine months ended February 28, 2022 are not indicated.

• 2. Although there are dilutive shares, diluted earnings per share are not indicated as the Company's shares were not listed as of February 28, 2022 and the average share price during the period could not be determined.

• 3. The Company carried out a 200-for-1 stock split for its common share on October 22, 2021. The basic earnings per share are calculated on the assumption that the said stock split was conducted at the beginning of the fiscal year ending May 31, 2022.

(2) Consolidated Financial Position

(Reference) Equity: As of February 28, 2022: ¥5,078 million

As of May 31, 2021: ¥4,209 million

2. Dividends

(Notes) 1. Revision to the forecast for dividends announced most recently: None

• 2. The Company carried out a 200-for-1 stock split for its common share on October 22, 2021. The figures for fiscal year ended May 31, 2021 are the actual amounts of dividends before the said stock split. The amount of dividend after taking into account the said stock split is ¥44.50.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending May 31, 2022 (June 1, 2021 - May 31, 2022)

(% indicates changes from the previous corresponding period.)

* Notes:

• (1) Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation):Newly included: - (

  ), Excluded: - (

  )

• (2) Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: None

• (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement

  • 1) Changes in accounting policies due to the revision of accounting standards and other regulations: Yes

  • 2) Changes in accounting policies other than 1) above: None

  • 3) Changes in accounting estimates: None

  • 4) Retrospective restatement: None

• (4) Total number of issued shares (common shares)

  • 1) Total number of issued shares at the end of the period (including treasury shares):

As of February 28, 2022:

As of May 31, 2021:

12,800,000 shares 12,800,000 shares

• 2) Total number of treasury shares at the end of the period:

As of February 28, 2022:

As of May 31, 2021:

- shares - shares

3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year):Nine months ended February 28, 2022:

Nine months ended February 28, 2021:

12,800,000 shares - shares

(Notes) 1. As the Company did not create quarterly consolidated financial statements for the nine months ended

February 28, 2021, the average number of shares outstanding during the period for that period is not indicated.

2. The Company carried out a 200-for-1 stock split for its common share on October 22, 2021. The total number of issued shares at the end of the period is calculated on the assumption that the said stock split was conducted at the beginning of the fiscal year ended May 31, 2021.

* These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.

* Explanation of the proper use of financial results forecast and other notes

The forward-looking statements contained in this document, including financial results forecasts, are based on the information currently available to the Company and certain assumptions considered reasonable. Actual financial results, etc. may differ significantly from them due to wide-ranging factors. For the assumptions that form the basis for financial results forecasts, etc., please refer to "Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the Attachments.

Table of Contents - Attachments

1. Qualitative Information on Quarterly Financial Results ......................................................................... 2

(1) Explanation of Operating Results ........................................................................................................ 2

(2) Explanation of Financial Position ....................................................................................................... 3

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ..... 3

2. Quarterly Consolidated Financial Statements and Principal Notes ......................................................... 4

(1) Quarterly Consolidated Balance Sheets .............................................................................................. 4

(2) Quarterly Consolidated Statements of Income and Comprehensive Income ...................................... 6

(3) Notes to Quarterly Consolidated Financial Statements ....................................................................... 8

(Notes on going concern assumption) ............................................................................................ 8

(Notes in case of significant changes in shareholders' equity) ....................................................... 8

(Changes in accounting policies) ...................................................................................................... 8

(Significant subsequent events) ...................................................................................................... 9

1. Qualitative Information on Quarterly Financial Results

(1) Explanation of Operating Results

The Japanese economy during the nine months ended February 28, 2022 saw a slowdown in the pace of economic expansion, as the sharp rise in cases of a new variant of COVID-19 in January 2022 led to priority measures to prevent the spread of the virus and a corresponding downturn in people's movements. In addition, amid growing upward pressures on commodity prices and interest rates driven by tightened supply and demand and other factors, geopolitical risks also heightened due to tensions over the situation in Ukraine, and the future outlook remained uncertain.

In the contact center and business process outsourcing (BPO) industry to which the Company belongs, market size is growing steadily due to increases in multiple needs, such as the digitalization of business operations, rebuilding of operational systems, expansion of work-from-home operations, and the reinforcement of BCP measures, against a backdrop of social changes during the COVID-19 pandemic, including changes in work styles in companies, consumer behavior, and lifestyle patterns.

Under such business conditions, in its Medium-Term Management Plan 2022 - Rolling Plan 2021, which covers the period until the fiscal year ending May 31, 2023, the Group has established a vision of "a company that continues to grow healthily from roots to buds" and declared its aim of achieving growth from both its existing business (the roots) of "contact centers and BPO services" and its new businesses (the buds) of "development and sale of the Cloud PBX*, Omnia LINK, and other systems." To achieve this vision, we established five initiatives, namely (1) ongoing value enhancement of its businesses (roots), (2) development of next-generation business (buds), (3) strengthening of business foundations, (4) diversity and inclusion, and (5) promotion of ESG-oriented management, and continued to engage in those initiatives.

* PBX: Private Branch eXchanger

In the nine months ended February 28, 2022, operations began at multiple newly contracted contact centers and BPO services, and net sales progressed steadily.

In the Group's businesses, the nurturing of on-site managers, such as supervisors, who are responsible for the design and construction of contracted operations, is essential. To this end, from January 2022, we launched a New Operations Construction Training Program to train supervisors and other on-site managers who have no previous experience in the design and construction of contracted operations. The program is scheduled to take place for ten sessions until May 2022, and 120 supervisors and other on-site managers are expected to complete the training nationwide.

In our work-from-home contact center service, Bewith Digital Work Place, in addition to a hybrid working format that combines working in the office and work-from-home, we are working to increase the number of completely remote operators who work entirely from home. In anticipation of this development, we have already introduced paperless operations in processes such as recruitment and labor management, and in the nine months ended February 28, 2022, we launched a Remote Worker Certification Scheme designed to further accelerate and advance this initiative. The Remote Worker Certification Scheme teaches home-based operators the knowledge and skills required to work from home, in areas such as security and compliance, IT/PC/network, and call quality. Candidates who pass a certification test at the end of the course are then certified as "Remote Workers." Through this initiative, we will strive to ensure quality of operations in a work-from-home environment and to provide employees with peace of mind.

Through these kinds of initiatives, in the nine months ended February 28, 2022, the number of operation booths reached 5,971 in 15 locations nationwide, and the number of licenses for the use of Omnia LINK in contact centers and BPO services reached 2,726, for a share of 73.7% (Omnia LINK's share of PBXes used in contact centers and BPO services). The number of Omnia LINK licenses sold as systems solutions services reached 992, the percentage of licenses with options such as voice recognition reached 48.8%, and annual recurring revenue (ARR: calculated by multiplying monthly recurring revenue by 12 months) reached ¥230 million.

As a result of the above, net sales was ¥24,051,589 thousand, operating profit was ¥2,082,646 thousand,

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