Translation
Notice: This document has been translated from the Japanese original for reference purposes. In the event of any discrepancy
between this translated document and the Japanese original, the latter shall prevail.

Summary of Consolidated Financial Results
for the First Two Quarters of the Fiscal Year Ending March 2023
(Based on Japanese GAAP)
November 10, 2022
Company name: Confidence Inc.

Listing exchange: Tokyo Stock Exchange

Securities code: 7374

URL: https://confidence-inc.jp

Representative: Nobuyuki Takushi, President
Inquiries:Koji Nagai, Director and General Manager, Administration DivisionScheduled date for filing quarterly securities report:

Phone: +81-3-5312-7700

November 10, 2022

Scheduled date for commencing dividend payments: December 5, 2022
Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefing session:

Yes(Amounts are rounded down to the nearest million yen, unless otherwise noted)
1. Consolidated Financial Results for the First Two Quarters(April 1, 2022 to September 30, 2022) of the Fiscal Year Ending March 31, 2023
(1) Consolidated Operating Results (Cumulative)(Percentage figures represent year-on-year changes)
Profit attributable toRevenue
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%First two quarters ended
2,544 21.5
501 41.5
500 44.1
339 45.2
September 30, 2022
First two quarters ended
2,094–354–
347–
233
–
September 30, 2021
(Note) Comprehensive income
First two quarters ended September 30, 2022: 339 million yen [45.2%]
First two quarters ended September 30, 2021: 233 million yen [– %]Basic earnings per shareDiluted earnings pershareYenYen
First two quarters ended
74.04
71.76
September 30, 2022
First two quarters ended
52.79
50.27
September 30, 2021
(Note) Diluted earnings per share for the first two quarters ended September 30, 2022 is calculated by using the average share pricefor the period from the initial listing date to the end of the said quarters, deeming it to be the period-average share price, as
the Company was listed on the Tokyo Stock Exchange Mothers market on June 28, 2021.
(2) Consolidated Financial Position
Total assets
As of September 30, 2022As of March 31, 2022
(end of previous fiscal year)(Reference) Total shareholders’ equity
As of September 30, 2022:
As of March 31, 2022:

Net assets

Equity ratio

Millions of yen
2,557

Millions of yen
1,815%
70.7

2,437

1,655

67.6

1,806 million yen
1,648 million yen

2. Cash Dividends
Annual dividends per share
End of 1st quarter End of 2nd quarter End of 3rd quarter
Yen
Yen
Fiscal year ended March 2022–
0.00
Fiscal year ending March 2023–
20.00
Fiscal year ending March 2023
(Forecast)(Note) Revisions to the most recently announced dividend forecast: No

Fiscal year-end

Total

Yen–Yen
40.00

Yen
40.00

–25.0045.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)(Percentage figures indicate year-on-year changes)
Profit attributable to Basic earnings perRevenue
Operating profit
Ordinary profit
owners of parent
shareMillionsofyen%Millionsofyen%
YenMillions of yen% Millions of yen%848 14.9
585 10.3
127.91
Full year
5,200 17.5
850 14.0(Note) Revisions to the most recently announced earnings forecast: No* Notes(1) Changes in significant subsidiaries during the quarter (changes in specified subsidiaries resulting in change in scope ofconsolidation): No(2) Application of accounting treatments specific to the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
1) Changes in accounting policies due to revisions to accounting standards and other regulations:No2) Changes in accounting policies other than those in 1) above:No3) Changes in accounting estimates:

No4) Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2022
4,585,800 shares As of March 31, 2022
2) Number of treasury shares at the end of the period
As of September 30, 2022
- shares As of March 31, 2022
3) Average number of shares during the period (cumulative from the beginning of the fiscal year)
First two quarters ended
First two quarters ended4,581,115 shares
September 30, 2022
September 30, 2021

4,580,400 shares- shares
4,425,301 shares* This summary of financial results is not subject to quarterly review procedures by a public accountant or audit corporation.
* Explanation regarding appropriate use of earnings forecasts, and other notes
The earnings outlook and other forward-looking statements contained in this document are based on information currently available
to and certain assumptions that are thought to be reasonable by the Company. Accordingly, such statements should not beconstrued as a guarantee of achieving the results by the Company. Actual financial results and the like may differ materially due tovarious factors.

Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
Second quarter ofcurrent fiscal year
(As of September 30, 2022)

Previous fiscal year
(As of March 31, 2022)
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

1,724,844
515,231

1,838,912
516,906

Accounts receivable - other
Other589
27,597984
26,9102,268,262

2,383,714

34,293(18,645)

45,797(2,204)

15,64843,592

26,151(17,383)

39,623(18,243)

Tools, furniture and fixtures, net

8,767

21,380Total property, plant and equipment

24,41564,972

11,78913,180145

137

11,935

13,31749,00883,31943,27951,367618

457

132,946

95,104

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Tools, furniture and fixtures
Accumulated depreciation

Intangible assets
SoftwareTrademark right
Total intangible assets
Investments and other assets
Deferred tax assets
Guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets

1

169,297

173,394

2,437,559

2,557,108

Previous fiscal year
(As of March 31, 2022)(Thousands of yen)
Second quarter ofcurrent fiscal year
(As of September 30, 2022)

Liabilities
Current liabilities
Current portion of long-term borrowings
Accounts payable - other

90,00043,68567,50044,297

Accrued expenses
Income taxes payable

258,920
118,577

265,824
159,783

Accrued consumption taxes
Deposits received

131,543
16,144

93,621
18,587

Refund liabilities
Provision for bonuses

276
100,504271
91,853

Total current liabilities

759,652

741,738

Non-current liabilities
Long-term borrowings

22,500-Total non-current liabilities

22,500-782,152

741,738

Share capital
Capital surplus

497,384
389,378498,734
390,728

Retained earnings

761,274

917,221

1,648,036

1,806,683

7,371

8,686

1,655,407

1,815,370

2,437,559

2,557,108

Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity
Share acquisition rights
Total net assetsTotal liabilities and net assets2(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Statements of Income(Cumulative)(Thousands of yen)First two quarters ofprevious fiscal year
(April 1, 2021 –September 30, 2021)
2,094,988

First two quarters ofcurrent fiscal year
(April 1, 2022 –September 30, 2022)
2,544,586

Cost of sales

1,376,304

1,641,310

Gross profit

718,684

903,276

Revenue

Selling, general and administrative expenses

364,556

402,230

Operating profit

354,127

501,045

Non-operating income
Interest income

48

Gain on sale of goods

2-

Total non-operating income

68Interest expenses
Commission expenses

962-

488
206

Share issuance costs

6,008

-

Total non-operating expenses

6,970

695

347,163

500,358

Gain on reversal of share acquisition rights-

759

Total extraordinary income-759

Loss on retirement of non-current assets
Office relocation expenses

-

2,873
7,687

Total extraordinary losses-

10,560

Profit before income taxes

347,163490,557

Income taxes - current

103,174

145,665

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Income taxes - deferred

10,3995,728

Total income taxes

113,574

151,394

Profit233,589

339,163--

233,589

339,163

Profit attributable to non-controlling interests
Profit attributable to owners of parent

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Quarterly Consolidated Statements of Comprehensive Income(Cumulative)(Thousands of yen)First two quarters ofprevious fiscal year
(April 1, 2021 –September 30, 2021)
233,589

ProfitOther comprehensive income
Total other comprehensive income
Comprehensive income

First two quarters ofcurrent fiscal year(April 1, 2022 –September 30, 2022)
339,163--233,589

339,163

233,589

339,163--

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests4(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)First two quarters ofprevious fiscal year
(April 1, 2021 –September 30, 2021)

First two quarters ofcurrent fiscal year
(April 1, 2022 –September 30, 2022)

Cash flows from operating activities
Profit before income taxes
Depreciation

347,163
4,061490,557
15,618

(4)
-(8)
2,873

6,008
-

2,074

-

(759)
7,687

Decrease (increase) in trade receivables
Decrease (increase) in accounts receivable - other

18,055(334)(1,675)(394)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses(4,699)
5,865

(185)
6,926

Increase (decrease) in deposits received
Increase (decrease) in provision for bonuses

2,589(26,987)

2,443(8,651)

Increase (decrease) in accrued consumption taxes
Other, net(66,729)
4,572(37,922)
6,432

SubtotalInterest and dividend income
Loss on retirement of non-current assets
Share issuance costs
Share-based payment expenses
Gain on reversal of share acquisition rights
Relocation expenses

289,558

485,016

Interest and dividends received
Interest paid

4(969)

8(488)

Payments of relocation expenses
Income taxes paid

(159,381)(7,687)(105,499)

Net cash provided by (used in) operating activities

129,211

371,350

Cash flows from investing activities
Purchase of property, plant and equipment(3,972)(55,726)

Purchase of intangible assets
Proceeds from refund of guarantee deposits(5,361)-(2,501)
38,742-(1,050)(11,230)(9,333)(31,765)

463,559-

Payments of guarantee deposits
Payments for asset retirement obligations
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of shares
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Repayments of long-term borrowings
Dividends paid

-2,700(45,000)-(45,000)(183,216)

Net cash provided by (used in) financing activities

418,559(225,516)

Net increase (decrease) in cash and cash equivalents

538,437

114,068

940,324

1,724,844

1,478,761

1,838,912

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period5(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.

(Notes in Case of Significant Changes in the Amounts of Shareholder’s Equity)
Not applicable.
(Segment Information, Etc.)[Segment information]
I. First two quarters of the previous fiscal year (April 1, 2021 – September 30, 2021)
Information on revenue and profit or loss by reportable segment(Thousands of yen)Amount recordedin quarterly
Adjustments
statements of(Note 1)
income(Note 2)

Reportable segment
HR SolutionbusinessMediabusiness

Total

Revenue
Sales to outside customers

2,059,202

35,7852,094,988-

2,094,988-----

2,059,202

35,7852,094,988-

2,094,988

538,895

7,307

546,203(192,075)

354,127

Inter-segment sales ortransfers
Total
Segment profit(Notes) 1. Adjustments of segment profit (-192,075 thousand yen) include corporate expenses of 192,075 thousand yen thatare not allocated to each reportable segment.
2. Segment profit has been adjusted with the operating profit in the Quarterly Consolidated Statements of Income.
II. First two quarters of the current fiscal year (April 1, 2022 – September 30, 2022)
Information on revenue and profit or loss by reportable segment
Reportable segment
HR Solution
businessMediabusiness

Total(Thousands of yen)Amount recordedin quarterly
Adjustments
statements of(Note 1)
income(Note 2)

Revenue
Sales to outside customers
Inter-segment sales ortransfers
TotalSegment profit

2,500,187

44,3992,544,586-

2,544,586

10,531-

10,531(10,531)-2,510,718

44,3992,555,118(10,531)2,544,586

730,996

6,410

737,407(236,361)

501,045(Notes) 1. Adjustments of segment profit or loss (-236,361 thousand yen) include corporate expenses of 236,361 thousand
yen that are not allocated to each reportable segment.
2. Segment profit or loss has been adjusted with the operating profit in the Quarterly Consolidated Statements ofIncome.
(Significant Subsequent Events)
Not applicable.

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