Mani : Summary of Consolidated Financial Results for FY2022 2Q

Summary of Consolidated Financial Results for the Six Months Ended February 28, 2022

(Based on Japanese GAAP)

April 7, 2022

Company name: MANI, INC.

Stock exchange listing: Tokyo

7730 URLhttp://www.mani.co.jpPresident & Representative Executive Officer Executive Vice President & Executive OfficerTEL 028-667-1811

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended February 28, 2022 (from September 1, 2021 to February 28, 2022)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes)

Note: The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the first quarter of the current consolidated fiscal year. All figures for the second quarter of the fiscal year ending August 31, 2022 reflect the application of this accounting standard.

(2) Consolidated financial position

As of February 28, 2022

As of August 31, 2021

¥41,007 million ¥39,202 millionNote: The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the first quarter of the current consolidated fiscal year. All figures for the second quarter of the fiscal year ending August 31, 2022 reflect the application of this accounting standard.

2. Cash dividends

Revisions to the forecasts of dividends most recently announced: None

3. Forecast of consolidated financial results for the year ending August 31, 2022 (from September 1, 2021 to August 31, 2022)

(Percentages indicate year-on-year changes)

Note: Revisions to earnings forecasts most recently announced: None

Note: The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the first quarter of the current consolidated fiscal year. Figures for the forecast of consolidated financial results that are stated above reflect the application of this accounting standard.

※ Notes

(1) Changes in significant subsidiaries during the six months ended February 28, 2022

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 retrospective restatements of prior period financial statements

  ① Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
  ②Changes in accounting policies due to other reasons:	No
  ③Changes in accounting estimates:	No
  ④Restatement of prior period financial statements:	No

  Note: Please refer to p.10 "Changes in accounting policies" of the Attached Materials Index for further details.

(4) Number of issued shares (common shares)

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

②Number of treasury shares at the end of the period

③Average number of shares during the period (cumulative from the beginning of the fiscal year)

* Quarterly financial reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.

* Proper use of earnings forecasts, and other special matters

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. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ substantially due to various factors.

• ○ Attached Materials Index

  1. Qualitative information regarding earnings on quarterly results ................................................................................................... 2

  (1) Explanation of operating results .............................................................................................................................................. 2

  (2) Explanation of financial position ............................................................................................................................................. 3

  (3) Explanation of consolidated earnings forecasts and other forward-looking statements ........................................................... 3

  2. Quarterly consolidated financial statements .................................................................................................................................. 4

  (1) Quarterly consolidated balance sheet ....................................................................................................................................... 4

  (2) Quarterly consolidated income statements and quarterly consolidated comprehensive income statements ............................. 6

Quarterly consolidated income statements ......................................................................................................................... 6

Quarterly consolidated comprehensive income statements ................................................................................................ 7

(3) Consolidated statements of cash flows .................................................................................................................................... 8

(4) Notes to quarterly consolidated financial statements ............................................................................................................. 10

(Notes on premise of going concern) ................................................................................................................................... 10

(Notes on significant changes in the amount of shareholders' equity) ................................................................................ 10

(Changes in accounting policies) ......................................................................................................................................... 10

(Segment information, etc.) ................................................................................................................................................. 11

(Significant subsequent events of going concern) ............................................................................................................... 11

1. Qualitative information regarding earnings on quarterly results

(1) Explanation of operating results

During the second quarter of the fiscal year ending August 31, 2022, the global economic recovery slowed down due to the spreading of infections caused by the Omicron variant. Furthermore, the current outlook remains uncertain due to downside concerns over the economy brought about by geopolitical risks and supply chain disruptions caused by the Russia-Ukraine conflict.

Under such circumstances, our Group started the first year of our medium-term management plan towards the next phase of growth with our passion and commitment "The Best Quality In The World, To The World." We are engaged in realizing our corporate philosophy by reforming the business model through globalization of sales, production and development functions with the aim of further growth. Furthermore, while we are establishing the mass production system for NiTi rotary file, which is the key product in our medium-term management plan, we have been developing our new product, vitreous forceps, which is a product that will be on the market for the first time from the second half of the current fiscal year. In addition, at our consolidated subsidiary in Germany, the acquisition of land for the construction of the new head office factory has been completed, and the plan is steadily proceeding toward completion in the next fiscal year.

Operating results for the second quarter of the fiscal year ending August 31, 2022 are stated below.

Net sales were ¥9,651 million (up 16.2% year on year), due to sales expansion in Asia, particularly China, and demand recovery mainly in Europe. Despite the cost of sales ratio deteriorated as a result of dead stock disposal, operating income was ¥3,079 million (up 15.6% year on year) due to an increase in net sales. Ordinary income was ¥3,390 million (up 23.7% year on year) due to an increase in foreign exchange gains from the second quarter of the previous fiscal year. Although gains on sales of investment securities recorded in the previous fiscal year are gone, profit attributable to owners of parent was ¥2,333 million (up 15.8% year on year) due to an increase in ordinary income.

The following is an overview of financial results by segment. Segment sales figures are those from external customers.

(Surgical products)

The segment's sales were ¥2,780 million (up 22.4% year on year), due to strong sales in China and Japan. Segment's income (operating income) was ¥973 million (up 30.6% year on year), mainly due to an increase in net sales.

(Eyeless Needle products)

The segment's sales were ¥2,857 million (up 17.1% year on year), due to strong sales in China and Europe. Though there was an increase in net sales an, segment's income (operating income) was ¥782 million (down 0.1% year on year), mainly due to the impact of dead stock disposal.

(Dental products)

The segment's sales were ¥4,013 million (up 11.8% year on year), due to strong sales of dia-burs and reamer files in India and other Asian countries. Segment's income (operating income) was ¥1,324 million (up 16.5% year on year), mainly due to an increase in net sales.

• (2) Explanation of financial position i). Financial position

  Total assets as of February 28, 2022 stood at ¥44,330 million, an increase of ¥1,637 million from August 31, 2021. This was primarily due to an increase in land, cash and deposits.

  Total liabilities as of February 28, 2022 stood at ¥3,323 million, a decrease of ¥167 million from August 31, 2021. This was primarily due to a decrease in income taxes payable.

  Total net assets as of February 28, 2022 stood at ¥41,007 million, an increase of ¥1,804 million from August 31, 2021. This was primarily due to an increase in foreign currency translation adjustments and a recording of profit attributable to owners of parent, despite the payment of dividends.

  ii). Cash flows

  As of February 28, 2022, cash and cash equivalents (hereinafter referred to as "net cash") amounted to ¥18,205 million, an increase of ¥148 million from August 31, 2021.

  The cash flows for the first half of August 31, 2022, and factors contributing to those amounts are as follows.

  (Cash flows from operating activities)

  Net cash provided by operating activities are ¥3,008 million (down 0.3% year on year). This was primarily due to an increase in income taxes paid, despite there was an increase in net cash due to a recording of income before income taxes.

  (Cash flows from investing activities)

  Net cash used in investing activities was ¥2,011 million (up 268.9% year on year). This was primarily due to an increase in payments for time deposits and purchase of property, plant and equipment.

  (Cash flows from financing activities)

  Net cash used in financing activities was ¥1,219 million (up 9.8% year on year). This was primarily due to an increase in cash dividends paid.

• (3) Explanation of consolidated earnings forecasts and other forward-looking statements

Results for the second quarter of the fiscal year ending August 31, 2022 are as stated in "(1) Explanation of operating result." The consolidated earnings forecast for the full fiscal year remains unchanged from the figures announced in the "Summary of Consolidated Financial Results for the Fiscal Year Ended August 31, 2021" on October 8, 2021. However, we will closely monitor the infectious spread of COVID-19 both domestically and overseas, as well as the Russia-Ukraine conflict.

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