Announcement of Record of Extraordinary Losses (Loss on Valuation of Investment Securities)

SHIFT Inc. announced today that it has recorded loss on valuation of investment securities as extraordinary losses in the six months ended February 28th, 2023 (from September 1st, 2022 to February 28th, 2023).

1. Overview of Extraordinary Losses (Loss on Valuation of Investment Securities)
Net asset value of certain investment securities that SHIFT owns has considerably decreased compared to acquisition cost, as a result of the valuation of net asset value based on the latest performances and business plan as of February 2023. Therefore, SHIFT recorded extraordinary losses (loss on valuation of investment securities) in the six months ended February 28th, 2023.

2. Amount of Loss on Valuation of Investment Securities
1,573 million yen

3. Financial Impact on Consolidated Performance
In the six months ended February 28th, 2023, net sales grew by 35.1% year on year, to \40,343 million and operating profit grew by 32.8% year on year, to 5,082 million. In addition, since SHIFT has recorded loss on valuation of investment securities as extraordinary losses by 1,573 million, its profit attributable to owners of parent decreased by 17.9% to 2,185 million.
For further details, please refer to “Consolidated Financial Results for the Six Months Ended February 28, 2023 [Japanese GAAP].”