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 Fiscal Year Ended December 31, 2023
(Based on Japanese GAAP)
February 14, 2024
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 next ordinary general meeting of shareholders: March 25, 2024
Scheduled date for filing annual securities report:

March 25, 2024

Scheduled date for commencing dividend payments:

March 26, 2024

Preparation of supplementary materials on financial results:

Yes

Holding of financial results briefing session:

Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen, unless otherwise noted)
1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(1) Consolidated Operating Results (Cumulative)(Percentage figures represent year-on-year changes)
Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

millions of yen%

millions of yen

4,480

17.4

914

30.2

911

31.5

506

21.3

3,816

13.0

702

34.6

693

33.2

417

19.4

Fiscal year ended
December 31, 2023
Fiscal year ended
December 31, 2022

% millions of yen% millions of yen%(Note) Comprehensive income: Fiscal year ended December 31, 2023: 506 million yen (21.3%)
Fiscal year ended December 31, 2022: 417 million yen (19.4%)
Basic earnings pershareYen

Diluted earnings
per share
Yen

24.39
21.03

Fiscal year ended
December 31, 2023
Fiscal year ended
December 31, 2022

Reference: Equity gains (losses) of affiliated companies(2)

Return on equity

Return on assets%%

Operating profit
ratio%

－28.8

26.3

20.4

－27.8

23.5

18.4

Fiscal year ended December 31, 2023: － million yen
Fiscal year ended December 31, 2022: － million yen

Consolidated Financial Position
Total assets

Fiscal year ended
December 31, 2023
Fiscal year ended
December 31, 2022
Reference: Total shareholders’ equity

Net assets

Equity ratio

Net assets per share

millions of yen

millions of yen%

Yen

3,662

1,853

50.5

89.35

3,261

1,662

51.0

79.59

Fiscal year ended December 31, 2023:
Fiscal year ended December 31, 2022:

1,850 million yen
1,662 million yen

(3)Consolidated Cash FlowsNet cash provided by(used in) operating
activities
millions of yen
Fiscal year ended
947
December 31, 2023
Fiscal year ended796
December 31, 2022

Net cash provided by(used in) investing
activities
millions of yen

Net cash provided by
Cash and cash equivalents(used in) financing
at end of period
activities
millions of yen
millions of yen(1,246)

(354)

1,412

(258)

(114)

2,065

2. Cash Dividends
End of 1stquarter
Yen
Fiscal year ended
December 31, 2022
Fiscal year ended
December 31, 2023
Fiscal year ending
December 2024
(forecast)

Annual dividends per share
End of 2nd End of 3rd Fiscal yearquarter
quarterendYen
Yen
YenTotal

Net assets toTotal dividends Payout ratio dividend
ratio(Total)(Consolidated) (Consolidated)

Yen millions of yen%

%

－

0.00

－

7.00

7.00

146

33.3

9.5

－

3.50

－

6.00

9.50

196

39.0

11.2

－

5.50

－

5.50

11.00

34.1

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2024
(from January 1, 2024 to December 31, 2024)(Percentage figures represent year-on-year changes)
Net sales

Full year

Operating profit

Profit attributable toowners of parent

Ordinary profit

millions of yen%millions of yen%millions of yen

5,00011.6

1,006

10.0

1,003% millions of yen
10.1668

Profit pershare%

Yen

32.0

32.29

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

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

(3)

Number of issued shares (common shares)(i)
Total number of issued shares at end of period (including treasury shares)
Fiscal year ended
Fiscal year ended
21,054,400 shares
December 31, 2023:
December 31, 2022:(ii)
Number of treasury shares at end of period
Fiscal year ended
Fiscal year ended
341,193 shares
December 31, 2023:
December 31, 2022:(iii) Average number of shares during the period (cumulative from the beginning of the fiscal year)
Fiscal year ended
Fiscal year ended20,771,900 shares
December 31, 2023:
December 31, 2022:

21,054,400 shares

160,793 shares

19,980,709 shares(Reference) Overview of non-consolidated results
1. Non-consolidated Financial Results for the Fiscal Year Ending December 31, 2023
(from January 1, 2023 to December 31, 2023)(1) Non-Consolidated Operating Results(Percentage figures represent year-on-year changes)
Net sales

Fiscal year ended
December 31, 2023
Fiscal year ended
December 31, 2022

Operating profit

Ordinary profit

Profitmillions ofyen%millions of yen%millions of yen%millions of yen%

3,879

14.0

927

19.6

925

19.7

510

2.6

3,402

29.4

775

39.4

773

38.3

497

27.9

Basic earnings per share Diluted earnings per share
Fiscal year ended
December 31, 2023
Fiscal year ended
December 31, 2022
(2)

Yen

Yen

24.59

－

25.07

－

Non-Consolidated Financial Position
Total assets

Net assets

Equity ratio

millions of yen
millions of yen
Fiscal year ended
3,352
1,986
December 31, 2023
Fiscal year ended
2,934
1,792
December 31, 2022
Reference: Total shareholders’ equity
Fiscal year ended December 31, 2023: 1,984 million yen
Fiscal year ended December 31, 2022: 1,792 million yen

Net assets per share%

Yen

59.2

95.79

61.1

85.78

2. Forecast of Non-Consolidated Financial Results for the Fiscal Year Ending December 31, 2024
(from January 1, 2024 to December 31, 2024)(Percentage figures represent year-on-year changes)
Net sales
Full year

millions of yen%
4,364 12.5

Operating profit
millions of yen
1,000%
7.6

Ordinary profit
millions of yen
1,000%
8.0

Basic earnings pershare
millions of yen%Yen666 30.2
32.17
Profit* 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.
(How to obtain supplementary materials on financial results and the details of the financial results briefing session)
The Company will hold a briefing session for securities analysts and institutional investors on February 19, 2024 (Monday).
The appearance and content of the briefing (video) will be posted on the Company’s website along with the briefing materials usedon the day promptly after the briefing session is held.

Consolidated Financial Statements(1)

Consolidated Balance Sheets(Unit: thousand yen)Previous fiscal year
(December 31, 2022)
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims - operating
Accounts receivable - trade
MerchandiseWork in process
Supplies
Prepaid expenses
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Tools, furniture and fixtures, netLand
Total property, plant and equipment
Intangible assets
Telephone subscription right
Trademark right
Software
Software in progress
Goodwill
Customer-related assets
Total intangible assets
Investments and other assets
Investment securities
Distressed receivables
Deferred tax assets
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 1 -Current fiscal year
(December 31, 2023)

2,065,368
5,656
11,198
253,726
1,927
6,191
710
22,602
2,891(2,911)
2,367,362

2,412,497
8,599
11,308294,944
1,622
20,095
1,016
40,6155,281(601)
2,795,380

37,26018,27676
55,61335,487
12,99076
48,554

163
235
404,602
188,481
238,728
27,813
671,544163
176
217,369
122,522215,668
25,377581,279－
2,169
36,916
106,495
23,226(2,169)166,638
893,796
3,261,1586

30,0002,169
86,93889,75630,824(2,169)237,520
867,354
3,662,734

(Unit: thousand yen)Previous fiscal year
(December 31, 2022)
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Contract liabilities
Deposits received
Provision for point card certificates
Provision for shareholder benefit program
Provision for bonuses
Provision for bonuses for directors (and other officers)
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
Share acquisition rights
Total net assets
Total liabilities and net assets- 2 -Current fiscal year
(December 31, 2023)

272,737
276,487
25,192
87,84917,383
168,765
52,456459,292
11,906103,157
23,32018,01818,68151
1,535,298

333,156
266,320
23,28045,42827,387
170,992
75,796
634,758
14,58596,06039,976
20,877
21,190－1,769,809

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

37,4902,230
39,7201,809,530

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

246,900
246,447
1,556,916(199,545)
1,850,7172,486
1,853,203
3,662,734

(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Unit: thousand yen)Previous fiscal year
(from January 1, 2022
to December 31, 2022)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Subsidy income
Subsidy income
Gain on forfeiture of unclaimed dividends
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Settlement payments
Loss on investments in investment partnershipsForeign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net profit
Profit attributable to owners of parent- 3 -Current fiscal year
(from January 1, 2023
to December 31, 2023)

3,816,112
2,095,271
1,720,841
1,018,034
702,806

4,480,592
2,392,895
2,087,697
1,172,936
914,7611425－－392
433

173
247
3,305193
3,767

4,342
3,706
1,420
86
223
10,182
693,057

4,673
－
1,348
－
1,316
7,338
911,189

38,097－38,097654,959
263,923(26,636)
237,287
417,672
417,672

11,893
154,867
166,760
744,429
287,856(50,022)
237,833
506,595
506,595

(Consolidated Statements of Comprehensive Income)(Unit: thousand yen)Previous fiscal year
(from January 1, 2022
to December 31, 2022)

Net profit
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests- 4 -417,672
417,672

Current fiscal year
(from January 1, 2023
to December 31, 2023)
506,595
506,595

417,672

506,595－－

(3)Consolidated Statement of Cash Flows(Unit: thousand yen)Previous fiscal year
(from January 1, 2022
to December 31, 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
Impairment loss
Settlement payments
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 paid
Settlement paid
Income taxes paidNet 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
Proceeds from withdrawal of investments in silent
partnership
Payments for investments in silent partnership
Proceeds from refund of leasehold and guarantee
deposits
Payments of leasehold and guarantee deposits
Other
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

- 5 -Current fiscal year
(from January 1, 2023
to December 31, 2023)

654,959
80,12023,059(4,505)

744,429
94,262
23,059(2,310)(2,343)(7,097)

11,541

16,65518,0182,858

18,681

2,508

(14)
781
38,097
3,706(13,698)
2,051
16,268(1,732)
169,551
10,216(13,490)
1,011,269
14(781)(1,706)(212,757)
796,039(17)
4,673
11,893
154,867－(44,271)(13,905)
56,947(2,221)
175,466
23,340(1,525)
1,239,613
17(4,644)－(287,109)
947,877－
20,000－(8,273)(176,479)(1,000,000)－(30,000)(40,957)(182,527)

－

1,265

－

(9,000)－14,932(81,283)(12,000)(258,036)(360)－(1,246,647)

4,000(26,136)(10,167)(25,192)

55,641－(99,133)(49,323)(99,991)(218,751)－

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- 6 -(114,950)
423,052
1,642,316
2,065,368(354,101)(652,871)
2,065,368
1,412,497