Non-Consolidated Financial Results
for the Six Months Ended October 31, 2022
[Japanese GAAP]
December 9, 2022
Company name: Asukanet Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 2438
URL: https://www.asukanet.co.jp
Representative: Yuji Matsuo, Representative Director & President
Contact: Kenya Kono, Senior Managing Director & CFO
Phone: +81-82-850-1200
Scheduled date of filing quarterly securities report: December 14, 2022
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Scheduled (for institutional investors and analysts)(Amounts of less than one million yen are rounded down.)
1. Non-Consolidated Financial Results for the Six Months Ended October 31, 2022
(May 1, 2022 to October 31, 2022)(1) Non-Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Six months ended
October 31, 2022
October 31, 2021

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen

%

3,160
2,930

7.8
13.4

137
113

21.1
-

150
117

28.1
-

103
80

29.4
-

Basic earnings
per share

Diluted earnings per
share

Six months ended
Yen
Yen
October 31, 2022
6.20
October 31, 2021
4.76
(Note) Diluted earnings per share is not presented as there were no potential shares.
(2) Non-Consolidated Financial Position
Total assets

Net assets

Million yen

6,638
As of October 31, 2022
6,896
As of April 30, 2022
(Reference) Equity: As of October 31, 2022: ¥5,824 million
As of April 30, 2022: ¥6,020 million

Equity ratio

Million yen

%

5,824
6,020

87.7
87.3

2. Dividends
1stquarter-end

2ndquarter-end

Yen

Yen

Annual dividends
3rdYear-endquarter-end

Fiscal year ended April 30, 2022
0.00
Fiscal year ending April 30, 2023
0.00
Fiscal year ending April 30, 2023
(Forecast)(Note) Revision to the forecast for dividends announced most recently: No

Total

Yen

Yen

Yen

-

7.00

7.00

-

8.00

8.00

3. Non-Consolidated Financial Results Forecast for the Fiscal Year Ending April 30, 2023
(May 1, 2022 to April 30, 2023)(% indicates changes from the previous corresponding period.)
Basic earnings
Net sales
Operating income
Ordinary income
Profitper share%

Million yen%

Yen

Full year
6,890
8.8
450
2.3
490
8.2
(Note) Revision to the financial results forecast announced most recently: No

Million yen%

Million yen%

Million yen

348

4.6

20.68

* Notes:(1) Accounting policies adopted specially for the preparation of quarterly financial statements: Yes(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
October 31, 2022: 17,464,000 shares
April 30, 2022: 17,464,000 shares2) Total number of treasury shares at the end of the period:
October 31, 2022: 842,257 shares
April 30, 2022: 657,657 shares
3) Average number of shares during the period:
Six months ended October 31, 2022: 16,721,532 shares
Six months ended October 31, 2021: 16,852,391 shares* These quarterly financial results are outside the scope of quarterly review procedures by a certified public
accountant or an audit corporation.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently
available to the Company and certain assumptions that the Company believes are reasonable, and actual results
may differ significantly from these forecasts due to a wide range of factors.

4. Overview of Business Results(1) Overview of Business Results for these Two Quarters of the Fiscal Year
Asukanet operates three business areas, each with different positioning and characteristics. They are (1) the funeral business,
which adds digital processing and remote output services for photos of the deceased to a funeral business that is largely unaffectedby economic trends, (2) the photo book business, which provides ideas for new photo output methods that allow users to create
complete photo collections beginning from just a single book, and (3) the aerial display business, which is utilizing unique,recently-developed technologies aiming to create a new market and achieve dreams.
Following is an overview of the business results for each segment. The result figures for each segment include internal intersegment sales.
(Funeral business)
In this business, although funerals continue to be reduced in size as a result of the coronavirus pandemic, there was a recovery
in the holding of funerals themselves. Revenue from our primary business area – processing photos of the deceased – resulted
in greater growth. In addition to the steady acquisition of new contracts through our sales activities, this was a result of theincreasing number of funerals held nationwide. As a result, there was a steady increase in sales of supplies such as ink, paper,and frames. There were also strong sales of systems for printing photos of the deceased and devices for outdoor displays. At thesame time, in order to increase the number of new contracts in our “tsunagoo” DX service for the funeral industry, we worked
to improve system stability and convenience, while also reinforcing our sales operations.
In terms of income, personnel expenses were higher as a result of actively increasing personnel, primarily in the Image
Processing Division which was previously inadequately staffed. In addition, there was an increase in recruitment costs,
transportation costs, and other expenses. However there was a large contribution from the increase in sales, resulting in an
increase in segment income.
As a result, Q2 sales were 1,443,666 thousand yen (112.8% year-on-year), and Q2 segment income was 312,020 thousandyen (104.1% year-on-year).
(Photo book business)
This business operates AsukaBook for the professional photography market, and MyBook for the general consumer market.
We are also engaged in OEM supply of photo albums and photo prints based on photos that were taken with smartphones.
In the professional photographers market, although our primary product of wedding photo albums continues to be severely
affected by the coronavirus pandemic, weddings incorporating measures to prevent coronavirus infections were held, and themarket trended towards recovery. Therefore, there was steady growth in sales of photo albums for studios, and sales were higher
than the same period in the previous fiscal year. We were highly active in this area. In addition to the “8th Life-Size PhotoAwards” to commemorate the 20th anniversary of our AsukaBook brand of photo albums for professional photographers, we
also held the “Pet Life-Size Photo Awards” and “Album Design Awards”.
The general domestic consumer market continues to face difficult conditions of reduced opportunities and demand for photo
albums resulting from the effects of voluntary restrictions on activities such as overseas traveling and events, as well as wearing
masks, due to the coronavirus pandemic. The same trends can be seen in “My Book” and OEM supply as well, and this resulted
in lower sales than the same period of the previous fiscal year. Despite the difficult conditions, we conducted variety ofpromotions and campaigns, and also released “My Book New Year Greeting” as a new service.
In terms of profit and loss, although there were an increase in the cost of raw materials and utility expenses, we saw an increase
in segment income resulting from our success in controlling general expenses, and especially from an increase the operating rateof our factory.
As a result, sales were 1,668,521 thousand yen (104.6% year-on-year), and segment income was 282,940 thousand yen(114.2% year-on-year).

(Aerial display business)
This business is aiming to create a market through new image and video expressions utilizing aerial imaging technologies.
We are developing, manufacturing, and selling both glass and plastic “ASKA3D plates” that utilize our original technologies toproject images in mid-air.
In the area of marketing, we are carrying out sales centered on our Marketing Division in Japan, and centered on our agents
overseas. In Japan, we have been steadily extending our record, including continued verification testing, a display at an art
museum, and use at memorial events. Overseas, although sales activities were greatly limited in China market due to the effectsof the Zero-COVID policy, sales activities are returning to normal in the North America, Europe, and Middle East regions. In
addition to providing support to agents in each region for participating in exhibitions, we also coordinated with our agents toprovide new proposals for elevator modules and automotive applications. In particular in the Middle East, there is strong demand
for large-size glass ASKA3D plates for signage applications, and we focused on capturing orders for these projects.
In the areas of production and development, we are working to stabilize production, increase supply, and reduce costs for bothglass and plastic plates by outsourcing production operations. We are carrying out stable production of 1 m2 glass ASKA3D
plates and developing 310 mm plastic ASKA3D plate products. At our technical development center, we are focusing inparticular on development of bonding technologies, aiming to establish manufacturing technologies for medium-size ASKA3D
plates.
In terms of sales, the results were down slightly from the same period of the previous fiscal year due to delays in important
projects – primarily overseas – as a result of limits on sales activities due to the coronavirus pandemic.
In terms of profit and loss, although there was an increase in advertising expenses due to the larger number of exhibitions,segment loss was smaller than the same period in the previous fiscal year as a result of controlling R&D costs by focusing R&D
on key areas.
As a result, sales were 51,157 thousand yen (89.6% year-on-year), and segment loss was 161,274 thousand yen (compared toa loss of 170,851 thousand yen in the same period of the previous fiscal year).
As results of the above, sales were 3,160,445 thousand yen (107.8% compared to the same period of the previous fiscal year),ordinary income was 150,177 thousand yen (128.1% compared to the same period of the previous fiscal year) and net income
was 103,723 thousand yen (129.4% compared to the same period of the previous fiscal year).

(2) Overview of the Financial Status
1,Assets, liabilities, and net assets(Assets)
Current assets at the end of this second quarter decreased by 257,906 thousand yen from the end of the previous fiscal year toreach 6,638,328 thousand yen. Despite an increase in products of 84,403 thousand yen and an increase in products in progress of
33,536 thousand yen, this decrease was primarily due to a decrease in cash and savings of 397,605 thousand yen.
(Liabilities)
Liabilities at the end of this second quarter decreased by 61,405 thousand yen from the end of the previous fiscal year to reach
814,043 thousand yen. This was primarily due to a decrease in income taxes payable of 70,200 thousand yen.
(Net assets)
Net assets at the end of this second quarter decreased by 196,500 thousand yen from the end of the previous fiscal year to reach
5,824,285 thousand yen. This was primarily due to an increase in treasury stock of 189,465 thousand yen.
2, Overview of cash flows in this fiscal year
The balance of cash and cash equivalents (hereafter referred to as “cash”) at the end of this second quarter declined by 397,605
thousand yen from the end of the previous fiscal year to reach 1,596,572 thousand yen.
(Cash flows from operating activities）
Net cash gained as a result of operating activities during the consolidated first two quarters was 82,660 thousand yen (compared
to a gain of 320,279 thousand yen in the same period of the previous fiscal year). Despite an increase in inventory of 117,545
thousand yen, this increase was primarily due to net income of 150,177 thousand yen and depreciation of 201,089 thousand yen.
(Cash flows from investing activities）
Net cash expended as a result of investing activities during the consolidated first two quarters was 171,575 thousand yen(compared to a gain of 55,771 thousand yen in the same period of the previous fiscal year). This was primarily due to payment of
140,497 thousand yen for acquisition of tangible fixed assets and payment of 30,149 thousand yen for acquisition of intangible
assets.
(Cash flows from financing activities）
Net cash expended as a result of financing activities during the consolidated first two quarters was 314,519 thousand yen(compared to an expenditure of 118,306 thousand yen in the same period of the previous fiscal year). This was primarily due topayment of 117,379 thousand yen in dividends and payment of 196,421 thousand yen in treasury stock.

(3) Future Outlook
There are no changes to the future outlook for the fiscal year ending April 2023 that were announced on June 10, 2022.

5．Financial Statements for the Fiscal Year
(1) Balance sheet
Previous fiscal year
(Ended April 30, 2022)
Asset
Current assets
Cash and deposits
Accounts receivable-trade
Merchandise and products
Work in progress
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets(Units: 1,000s yen)
Current 2nd quarter(ended Oct. 31, 2022)

1,999,178
836,041
304,090
169,02284,426
43,589(2,810)1,601,572
846,043
388,494
202,559
84,03150,076(3,219)3,433,537

3,169,558

906,630
522,592
844,060

898,419
503,401
844,060

Fixed assets
Tangible fixed assets
Building (net)
Machinery and equipment (net)Land
Others (net)183,767

196,477

Total tangible fixed assets

2,457,050

2,442,359

Intangible fixed assets
Investments and other assets
Investment securities
Others

208,440

224,709587,437
209,768

590,686
211,015

797,206

801,701

3,462,698

3,468,769

6,896,235

6,638,328

182,892
197,458
131,400
161,620

156,778
209,195
61,200180,500

Others191,216

196,226

Total current liabilities

864,587

803,900

5,351
5,510

5,351
4,791

10,862

10,143

875,449

814,043

490,300
619,556
5,196,424(298,392)

490,300
624,486
5,182,504(487,857)

6,007,889

5,809,433

Valuation difference on available-for-sale securities

12,896

14,851

Total valuation and translation adjustments

12,896

14,8516,020,785

5,824,285

6,896,235

6,638,328

Total investments and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-other
Income taxes payable
Provision for bonuses

Fixed liabilities
Provision for retirement benefits
OthersTotal fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Total retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments

Total net assets
Total liabilities and net assets

(2) Profit and loss statement for two quarters

Net Sales
Cost of goods sales(unit:1000s yen)First two quarters of the previous First two quarters of the current
fiscal year
fiscal year
(May 1, 2021 – Oct. 31, 2021)(May 1, 2022 – Oct. 31, 2022)
2,930,849
3,160,445
1,559,284
1,714,196

Gross profit

1,371,564

1,446,248

Selling, general, and administrative expenses

1,258,030

1,308,770

113,533

137,478

291
600
155
1,208
1,007
400

1,159
600
173
8,884
733
1,736

3,662

13,286―587

Operating income
Non-operating income
Interest received
Dividends received
Commissions received
Exchange gain
Gain on forfeiture of unclaimed dividends
OthersTotal non-operating income
Non-operating expenses
Acquisition cost for treasury stocks
Total non-operating expenses―

587

117,196

150,177

708
48

―
0

756

0

Net income before taxes

116,439

150,177

Income taxes

36,29146,453

Net income

80,148103,723

Ordinary income
Extraordinary losses
Loss on sales of fixed assets
Loss on retirement of fixed assets
Total extraordinary losses

(3) Statement of cash flows(unit:1000s yen)First two quarters of the previous First two quarters of the current
fiscal year
fiscal year
(May 1, 2021 – Oct. 31, 2021)(May 1, 2022 – Oct. 31, 2022)
Cash flows resulting from operating activities
Net income before taxes
Depreciation expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Interest and dividends received
Foreign exchange losses (gains)
Loss on sales of fixed asset
Loss on disposal of fixed assets
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventory assets
Increase (decrease) in accounts payable-trade
Increase (decrease) in accrued consumption taxes
Others

116,439
228,718
(102)
8,090
(891)
(1,422)708
48

150,177
201,089
408
18,880(1,759)(5,829)―0

7,746(10,002)(67,755)(5,946)(7,851)
4,012(117,545)(26,114)(27,762)
13,026

Subtotal

281,794

194,568

Interest and dividends received
Income taxes paid

1,098
37,387

1,099(113,007)

Cash flows due to operating activities

320,279

82,660Cash flows due to investing activities
Expenditure from time deposit
Income from withdrawal of time deposits
Purchase of tangible fixed assets
Sales of tangible fixed assets
Purchase of intangible fixed assets
Purchase of investment securities
Proceeds of loans
Collection of loans receivable
Others(5,000)405,000(270,345)
667(41,328)(27,492)(882)
147(4,994)(5,000)5,000(140,497)―(30,149)――
147(1,076)

Cash flows due to investing activities

55,771(171,575)(118,306)――(117,379)(196,421)(718)(118,306)(314,519)

Cash flows due to financing activities
Cash dividends paid
Purchase of treasury stock
OthersCash flows due to financing activities
Effect of exchange rate on cash and cash equivalents

1,422

5,829

Net increase (decrease) in cash and cash equivalents

259,166(397,605)

Balance of cash and cash equivalents at beginning of year

1,410,088

1,994,178

Balance of cash and cash equivalents at end of year

1,669,255

1,596,572

[Segment information]
Cumulative first quarter of the current fiscal year (May 1, 2021 – Oct. 31, 2021)
Information related to the amounts of sales, income, and loss for each reporting segment(Units: 1,000s yen)
Reporting segment
Adjustments

Amountrecorded in
profit and loss
statement

2,930,849―

2,930,849

54

54

(54)

―

1,594,424

57,1232,930,903(54)

2,930,849

247,799(170,851)

376,723(263,189)

113,533

Funeral businessPhoto bookbusiness

Aerialdisplay business

1,279,355

1,594,424

57,069――1,279,355
299,775

Total

Sales
Sales to outside
customers
Inter-segment internalsales and transfers
Total
Segment income (loss)

Cumulative first quarter of the current fiscal year (May 1, 2022 – Oct. 31, 2022)
Information related to the amounts of sales, income, and loss for each reporting segment(Units: 1,000s yen)
Reporting segment
Adjustments

Amountrecorded in
profit and loss
statement

3,160,445―

3,160,445

―

2,900

(2,900)―1,668,521

51,157

3,163,346(2,900)3,160,445

282,940(161,274)

433,687(296,209)

137,478

Funeral businessPhoto bookbusiness

Aerialdisplay business

1,443,666

1,665,621

51,157―2,900

1,443,666
312,020

Total

Sales
Sales to outside
customers
Inter-segment internalsales and transfers
Total
Segment income (loss)

This is the summarized translation of released report for your reference.
Please refer to the original Japanese financial document.