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 Result
for the Six Months Ended June 30, 2023
(Based on Japanese GAAP)
August 14, 2023
Company name: WILLs Inc.

Listing exchange: Tokyo Stock Exchange

Securities code: 4482

URL: https://www.wills-net.co.jp/Representative: Mitsuo Sugimoto, President and CEO
Inquiries:

Yasuyuki Hasumoto, Senior Managing Director and CFO

Phone: +81-3-6435-8151

Scheduled date for first quarter report:

August 14, 2023

Scheduled date for commencing dividend payments:

September 13, 2023

Preparation of supplementary materials on financial results:

Yes

Holding of financial results briefing session:

Yes(Amounts are rounded down to the nearest million yen, unless otherwise noted)
1. Consolidated Financial Results for the six months ended June 30,2023 (from January 1, 2023 to June 30, 2023)(1) Consolidated Operating Results (Cumulative)(Percentage figures represent year-on-year changes)
Net sales

Operating profit

millions of yen%millions of yen

2,054

18.1

496

30.7

496

31.5

337

38.6

1,740

6.5

379

29.0

377

29.0

243

22.6

Six months ended
June 30, 2023
June 30, 2022

% millions of yen(Note) Comprehensive income: Six months ended June 30, 2023: 337 million yen
Six months ended June 30, 2022: 243 million yen
Basic earnings pershare
Yen

Diluted earnings
per shareYen

16.22－12.29

11.68

Six months ended
June 30, 2023
June 30, 2022
(2)

Profit attributable toowners of parent

Ordinary profit% millions of yen38.6%
26.6%

Consolidated Financial Position
Total assets

As ofJune 30,2023
December 31, 2022
Reference: Total shareholders’ equity

Net assets

Equity ratio

millions of yen

millions of yen%

3,436

1,754

51.0

3,261

1,662

51.0

As of June 30, 2023:
As of December 31, 2022:- 1 -1,754 million yen
1,662 million yen%

2. Cash Dividends
1st quarter
Yen－－

Annual dividends per share
2nd quarter3rd quarter
4th quarter
YenYen
Yen
0.00
－
7.00
3.50

Fiscal year ended December 31, 2022
Fiscal year ended December 31, 2023
Fiscal year ending December 2023
(forecast)(Note) Revisions to the forecast of dividends most recently announced: None－TotalYen
7.00

3.50

7.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2023
(from January 1, 2023 to December 31, 2023)(Percentage figures represent year-on-year changes)
Net sales

Operating profit

millions of yen% millions of yen
Fiscal year ending
4,049
6.1
750
December 2023
(Note) Revisions to the forecast most recently announced: NoneProfit attributable toowners of parent

Ordinary profit%

millions of yen

6.8745% millions of yen
7.5497

Profit pershare%

Yen

19.2

23.83

*Explanatory notes(1) Changes in significant subsidiaries during the fiscal year (changes in specified subsidiaries resulting in change in scope ofconsolidation): None
(2)

Application of Special Accounting for Preparing Quarterly Consolidated Financial Statements: Yes(3)

Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements(i)
Changes in accounting policies due to amendment of accounting standards, etc.: Yes(ii) Changes in accounting policies other than those in (i) above:None(iii) Changes in accounting estimates:None(iv) Restatements:
None

(4)

Number of issued shares (common shares)(i)
Total number of issued shares at end of period (including treasury shares)
As of June 30, 2023:
21,054,400 shares
As of December 31, 2022:(ii)
Number of treasury shares at end of period
As of June 30, 2023:
341,193 shares
As of December 31, 2022:(iii) Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended
Six months ended
20,831,566 shares
June 30, 2023:
June 30, 2022:

21,054,400 shares
160,793 shares
19,896,386 shares* This summary of financial results is not subject to audit procedures by a public accountant or audit corporation.
* Explanation regarding appropriate use of earnings forecasts, and other notes(Notes on forward-looking statements)
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
be construed as a guarantee of achieving the results by the Company. Actual business performance and other results may differ
materially due to various factors. For the conditions forming the assumptions on which earnings forecasts are based andexplanatory notes for use of earnings forecasts, etc.

- 2 -Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheets(Unit: thousand yen)
As ofDecember 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims - operating
MerchandiseWork in process
Supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Software in progress
Goodwill
Customer-related assets
Other
Total intangible assets
Investments and other assets
Claims provable in bankruptcy, claims provablein rehabilitation and other
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 3 -As ofJune 30, 2023

2,065,368
259,383
11,1981,927
6,191
710
25,494(2,911)
2,367,362

1,994,060
420,602278
1,205
23,9201,084
35,053(2,934)2,473,271

55,61352,253

216,121
188,481
238,728
27,813
399
671,544

226,161
241,501
227,198
26,595369
721,827

2,169

2,169

166,638(2,169)166,638
893,796
3,261,158

189,394(2,169)189,394
963,475
3,436,747

(Unit: thousand yen)
As ofDecember 31, 2022
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - otherIncome taxes payable
Contract liabilities
Provision for point card certificates
Provision for shareholder benefit program
Provision for bonuses
Provision for bonuses for directors
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Total net assets
Total liabilities and net assets- 4 -As ofJune 30, 2023

272,737
276,487
25,192
87,849168,765459,292
103,157
23,32018,01818,68181,797
1,535,298

439,159
254,647
23,52639,372
153,830
533,019
101,433
26,841－－
59,882
1,631,712

60,7702,224
62,994
1,598,293

48,3802,227
50,607
1,682,320

246,900
246,447
1,269,072(99,554)
1,662,865
1,662,865
3,261,158

246,900
246,447
1,460,625(199,545)
1,754,426
1,754,426
3,436,747

(2)Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Unit: thousand yen)
For the six months
ended June 30, 2022

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Subsidy income
Gain on forfeiture of unclaimed dividends
Refunded consumption taxes
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission fee
Loss on investments in partnership
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
Net profit
Profit attributable to owners of parent- 5 -For the six months
ended June 30, 2023

1,740,366
911,351
829,014449,057
379,956

2,054,607
1,055,680
998,926
502,308
496,618

7
14－
－
313
335

9
3
88
3,305
112
3,520

2,306
213
－
219
2,811
377,480

2,456
153
459
867
3,936
496,20261
61
377,419
133,607
243,812
243,81218
18
496,183
158,376
337,807337,807(Quarterly Consolidated Statements of Comprehensive Income)(Unit: thousand yen)
For the six months
ended June 30, 2022

Net profit
Comprehensive incomeComprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests- 6 -For the six months
ended June 30, 2023

243,812
243,812337,807337,807

243,812337,807－－(3)Consolidated Statement of Cash Flows(Unit: thousand yen)
For the six months
ended June 30, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in provision for shareholder
benefit program
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Interest and dividend income
Interest expenses
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Increase (decrease) in accrued consumption taxes
OtherSubtotal
Interest and dividends received
Interest paidIncome taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from sale of investment securities
Purchase of investment securities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for investments in capital
Proceeds from refund of leasehold and guarantee
deposits
Payments of leasehold and guarantee deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Purchase of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of quarter- 7 -For the six months
ended June 30, 2023

377,419
37,986
11,5291,009

496,183
46,238
11,52922(1,216)(1,723)

3,307

3,521

－

(18,018)－(18,681)(7)
2,306
61(158,891)(21,733)
173,613(24,590)
61,991(7,468)(36,394)
418,924
7(2,519)(109,784)
306,628

(9)
2,456
18
(150,299)(17,380)
161,665(48,476)
73,727(11,124)(28,601)
501,0469(2,456)(163,233)
335,365－
20,000－(1,365)(96,724)(12,000)(1,000,000)－(30,000)(507)(99,445)(9,000)－14,932(80,638)(170,729)(360)(1,124,380)(29,273)(14,056)(21,840)(14,056)

9,525－(99,106)(49,102)(182,012)(46,112)
1,642,316
1,596,203(100,141)(146,255)(282,292)(1,071,307)
2,065,368
994,060