Consolidated Financial Statements for the Three Months Ended March 31, 2022 (IFRS)
These financial statements have been prepared for reference only.

Link and Motivation Inc.

May 12, 2022

Stock exchange listing: Tokyo, Prime Market
Code number: 2170

http://www.lmi.ne.jp/english
Representative: Ozasa Yoshihisa, Chairman and Representative Director
Contact: Yokoyama Hiroaki, Corporate Officer andManager of System Design Office
Phone: +81-3-6853-8111
Filing of Quarterly Report (Shihanki Hokokusho) (scheduled):
May 12, 2022
Start of distribution of dividends (scheduled):
June 24, 2022
Supplementary documents for quarterly results:
No
Quarterly results briefing:No(Amounts are rounded down to the nearest million.)

1. Consolidated Results for the Three Months Ended March 31, 2022
(January 1, 2022 - March 31, 2022)(1) Revenues and Income

Revenues(¥ million)
Three months ended
March 31, 2022
Three months ended
March 31, 2021

(Percentages represent change compared with the same quarter of the previous year.)
IncomeOperatingNet
ChangebeforeChangeChangeChangeincomeincome(%)
income taxes
(%)
(%)
(%)
(¥ million)(¥ million)(¥ million)

7,947

0.0

800

28.3

723

27.3

361

28.9

7,947

—

623

—

568

—

280

(29.4)

Change(%)

Basic earnings
per share (¥)

Net income
attributable toowners of theparent(¥ million)

Change(%)

Comprehensive
income(¥ million)

Dilutedearnings per
share (¥)

Three months ended
March 31, 2022
318
29.5
317
18.1
2.85
2.85
Three months ended
March 31, 2021
245
(32.7)
268(736.6)2.34
2.34
Note: As of the fiscal year ended December 31, 2021, the domestic temp staff business of Link Agent Inc. (formerly Link Staffing Inc.)
has been classified as discontinued operations. As a result, profits from discontinued operations are presented separately fromcontinuing operations in the condensed consolidated statements of operations. Accordingly, revenues, operating income andincome before taxes present the amounts for continuing operations. Because amounts for the three months ended March 31, 2021
have been restated in the same manner for presentation, rates of increase or decrease from the same period of the previous fiscal
year are not presented for these items.

(2) Financial Position

As of March 31, 2022
As of December 31, 2021

Total assets(¥ million)

Total equity(¥ million)

28,55530,062

8,768
8,648

2. Dividends
1st Qtr.
1.80
1.90

2nd Qtr.
1.80

Equity attributableto owners of theparent(¥ million)
7,570
7,493

Ratio of equity
attributable to ownersof the parent to total
assets (%)
26.5
24.9

Dividends per share
3rd Qtr.
Year-end
1.90
1.90

Total
7.40

1.90

7.60

2021
2022
2022 (est.)
1.90
1.90
Note: Revisions since the most recently announced dividend forecast: No

3. Forecast of Consolidated Results for 2022 (January 1, 2022 - December 31, 2022)(Percentages represent change compared with the previous fiscal year.)
Net income
Basic
OperatingNet
Revenues
attributable toearnings
incomeincomeowners of the parent
per share(¥ million)(%) (¥ million) (%) (¥ million)(%)(¥ million)(%)(¥)
Full-year
35,000
7.2
4,000
93.6
2,200
115.6
2,050
123.1
19.48
Note: Revisions since the most recently announced forecast of results: No

Notes(1) Changes in Significant Subsidiaries during the Period (Changes in Specified Subsidiaries Due to Change in Scopeof Consolidation): No(2) Changes in Accounting Policies and Changes in Accounting Estimates(a) Changes in accounting policies required by IFRS: No(b) Changes in accounting policies other than (a) above: No(c) Changes in accounting estimates: No(3) Number of Shares Issued and Outstanding (Common Stock)(a) Number of shares at the end of the period (including treasury stock)Three months ended March 31, 2022: 113,068,000; Year ended December 31, 2021: 113,068,000(b) Number of treasury shares at the end of the period:
Three months ended March 31, 2022: 1,506,443; Year ended December 31, 2021: 1,506,443(c) Average number of shares outstanding (cumulative with earlier quarters):
Three months ended March 31, 2022: 111,561,557; Three months ended March 31, 2021: 104,922,204* These Financial Statements Are Not Subject to Review by a Certified Public Accountant or Auditing Firm
* Explanation of the Proper Use of Performance Forecasts and Other Special Instructions
Consolidated forecasts and other statements regarding the future contained in this document are based on information
currently available to the Company and certain reasonable assumptions. Actual performance may differ substantially
due to numerous factors.

Contents of Attachments
1. Overview of Results of Operations and Other Information ............................................................................ 2(1) Overview of Results of Operations for the Three Months Ended March 31, 2022 ................................. 2(2) Overview of Financial Position for the Three Months Ended March 31, 2022 ....................................... 7(3) Overview of Cash Flow for the Three Months Ended March 31, 2022 ................................................... 7(4) Forecast ......................................................................................................................................................... 7
2. Condensed Consolidated Financial Statements and Main Notes ................................................................... 9(1) Condensed Consolidated Statements of Financial Position ..................................................................... 9(2) Condensed Consolidated Statements of Operations and Comprehensive Income .............................. 11(3) Condensed Consolidated Statements of Changes in Equity ................................................................... 13(4) Condensed Consolidated Statements of Cash Flow ................................................................................. 14(5) Notes to Condensed Consolidated Financial Statements ....................................................................... 15
Significant Accounting Policies ........................................................................................................... 15
Notes Regarding Significant Accounting Estimates and Judgements ............................................. 15
Notes Regarding Assumption of Going Concern ............................................................................... 15
Significant Subsequent Events ............................................................................................................ 15

1

1. Overview of Results of Operations and Other Information

Forward-looking statements in the following text are based on judgments as of March 31, 2022, the last day of theconsolidated accounting period under review. Because the Link and Motivation Group (the “Group”) transferred the domestic
temp staff business operated by its subsidiary Link Agent Inc. (formerly Link Staffing Inc.) to iDA K.K. as of January 1, 2022,
these operations are classified as discontinued. Therefore, the amount from continuing operations is shown for revenues, grossprofit and operating income, and the total from continuing and discontinued operations is shown for net income attributable toowners of the parent. In addition, for comparisons with the same period of the previous year, figures for the same period of theprevious year have been restated according to the classification after the transfer.
(1) Overview of Results of Operations for the Three Months Ended March 31, 2022
The Group supports the transformation of numerous companies and individuals using “Motivation Engineering,” whichis the Group’s core technology, backed by psychology, behavioral economics, social systems theory and other disciplines,
under its corporate philosophy: “Through Motivation Engineering, we provide opportunities to transform organizations andindividuals and create a more meaningful society.” The outlook for the Japanese economy remained unclear during the threemonths ended March 31, 2022 (the “first quarter of 2022”) due to the impact of a resurgence of COVID-19 caused by a
new variant. On the other hand, even under these economic conditions, the Group perceives rising needs for improving
employee engagement (mutual understanding, empathy and commitment between companies and employees) due to changes
in work style and for enhancing the skills of individuals due to rapid Digital Transformation (“DX”).
In this economic environment, the Group’s revenues for the first quarter of 2022 were ¥7,947 million (a 0.0% change
compared with the same period of the previous year), gross profit was ¥4,019 million (a 5.3% increase), operating income
was ¥800 million (a 28.3% increase) and net income attributable to owners of the parent was ¥318 million (a 29.5%
increase).
The segment and business classifications of the Group are as shown below, and an overview of the first quarter of2022 by segment and business follows.
As of the first quarter of 2022, business classifications and business names have changed. Figures for the same periodof the previous year have been restated for purposes of comparison.
Link and
Motivation Group

Organizational
Development Division

Consulting &Cloud Business
Link and Motivation Inc.

Individual
Development Division

Matching Division

Career School Business

ALT Placement Business

Link Academy Inc.

Link Interac Inc.

Link Global Solution Inc.

Link Japan Careers Inc.

Link Event Produce Inc.

IR Support Business

Cram School Business

Personnel Placement
Business

Link Corporate
Communications Inc.

Motivation Academia Inc.

Link Agent Inc.
Link-i Inc.
OpenWork Inc.

Note: Link Staffing Inc. changed its corporate name to Link Agent Inc. on April 1, 2022.
2

Organizational Development Division
The Organizational Development Division offers corporate customers services that provide support for building andstrengthening relationships with a company’s stakeholders (employees, job applicants, customers, shareholders) using“Motivation Engineering,” which is the core technology of the Group.
In this segment, segment revenues for the first quarter of 2022 were ¥2,555 million (a 2.8% increase), and segment
income was ¥1,833 million (a 3.1% increase). An overview of operating results by business for the first quarter of 2022 is
as follows.
Consulting & Cloud Business
The Consulting & Cloud business acts under the concept of creating numerous “Motivation Companies” in which
employee motivation is the growth engine of an organization. As its method of providing services, the business diagnoses
employee engagement based on its original diagnostic framework and offers one-stop solutions for innovations related toorganizations and personnel, including hiring, training, systems and culture. The business is also rolling out the
Motivation Cloud series of cloud-based services that allow customer companies to manage employee engagement
themselves.
In this business, revenues for the first quarter of 2022 were ¥2,284 million (a 5.1% increase) and gross profit was¥1,704 million (a 3.3% increase). Results by product in the Consulting & Cloud business were as follows.
Table 1. Revenues by ProductProduct (¥ million)[Gross profit in brackets]
Consulting & Cloud Business

Three months ended
March 31, 2021
2,173
[1,650]1,511
662Consulting
Cloud

Three months ended
March 31, 2022
2,284
[1,704]
1,498
786

YoY change
(%)
5.1
3.3
(0.9)
18.7

In the first quarter of 2022, revenues and gross profit both increased compared with the same period of the previous
fiscal year as the Cloud business grew by steadily capturing needs for improving employee engagement, mainly at major
companies. Today, with greater demands for employee productivity, needs for improving employee engagement anddevelopment of human resources are rising more and more. These needs are expected to be long-term, and the Group,
which has supported the organizational transformation of numerous companies since its establishment in 2000, is taking
advantage of this major opportunity. The business will continue to promote introduction of its products, particularly atmajor companies, to achieve increased sales per customer and further growth.
Monthly fee revenue increased substantially compared with the previous year for the Motivation Cloud series of
products, which are part of the Cloud category and are priority services for the Group. The number of deliveries andmonthly fee revenue were as follows.
Table 2. Number of Deliveries and Monthly Fee Revenue for the Motivation Cloud Series at Quarter-End
2021

2022

March

June

September

December

March

Number ofdeliveries

747

743

772

738

745

Monthly fee
revenue(¥ thousand)

206,485

218,928

235,859

240,545

256,155

Since its founding in 2000, Link and Motivation has not only diagnosed the engagement status of companies andemployees but has also supported organizational transformation at many companies. The Motivation Cloud series is agroup of cloud-based services in the field of HR Tech (human resources combined with technology) for improving
employee engagement. The Company migrated the organization diagnosis service it has offered since its founding to thecloud and started providing the Motivation Cloud service in July 2016. The service is currently ranked number one in3

share of sales by vendor in the employee engagement market for the fourth consecutive year (fiscal 2017 to fiscal 2020
forecast) in ITR Market View: Human Resources Management Market 2021, a market research report published by ITR
Corporation.
During the first quarter of 2022, the Group succeeded in stepping up introductions at major companies and monthly
fee revenue increased substantially compared with the same period of the previous year as more than 60% of suchrevenue came from major companies. The Group has forecast ¥320 million in fee revenues from the Motivation Cloud
series for the month of December 2022 (a year-on-year increase of 33.0%), and total monthly fee revenue for March 2022
was ¥256,155 thousand, making steady progress.
This business will continue to ramp up new customer development, mainly at major companies. It expects to increase
monthly fee revenue with the launch of a new service, which is a cloud-based version of a human resource development
service it already provides, in the second half of fiscal 2022. Implementation of these growth strategies will accelerate therollout of the Cloud series and drive the employee engagement market.
IR Support Business
The IR Support business provides one-stop support for corporate branding through various media and events centeredon the field of investor relations for the “creation of Motivation Companies” at corporations. In addition to printed media
such as annual reports for shareholders, web-based media such as investor relations (IR) sites, and visual media such asvideos that explain products and webcasts of shareholders’ meetings, the business creates physical and virtual forums forshareholders’ meetings and other events.
In this business, revenues for the first quarter of 2022 were ¥350 million (a 10.3% decrease) and gross profit was¥171 million (a 3.4% decrease). This business has only one product.
In the first quarter of 2022, both revenues and gross profit decreased compared with the same period of the previous
year due to a delay in the timing of delivery of a large-scale project.
However, attention to non-financial capital has risen in recent years, with increasing needs for its disclosure,particularly for human capital. This business will take advantage of this trend to generate synergies with the Consulting &Cloud business by disclosing the results of its diagnosis and transformation initiatives, with a focus on human capital.
Individual Development Division
The Individual Development Division supports the creation of “i-Companies,” which it defines as individuals who
independently and autonomously develop their own careers and lives. Specifically, it applies “Motivation Engineering,”
which is the core technology of the Group, to businesses in areas including career schools and cram schools, to provide
one-stop services to customers from elementary school students to working adults. These services range from helping to
set goals to understanding individual issues and formulating and implementing study plans.
In this segment, segment revenues for the first quarter of 2022 were ¥1,833 million (a 0.1% increase) and segment
income was ¥813 million (a 24.7% increase). An overview of operating results by business for the first quarter of 2022 is
as follows.
Career School Business
The Career School business provides one-stop services for individual career advancement, targeting mainly university
students and working adults, under the five service brands of “Aviva” personal computer schools, “Daiei” qualification
schools, and “Rosetta Stone Learning Center,” “Rosetta Stone Premium Club” and “Hummingbird” foreign language
schools. Previously, the business mainly conducted classroom lectures, but currently provides support of continuing
learning by offering both in-school and online services.
In this business, revenues for the first quarter of 2022 were ¥1,678 million (a 0.3% decrease) and gross profit was¥741 million (a 26.9% increase). Results by product in the Career School business were as follows.
Table 3. Revenues by ProductProduct (¥ million)[Gross profit in brackets]
Career School BusinessIT

Three months ended
March 31, 2021

Three months ended
March 31, 2022

YoY change
(%)

1,684
[584]
935

1,678
[741]
944

(0.3)
26.9
1.0

4

Qualifications
English conversation

593
155

587
146

(1.0)
(5.8)

In the first quarter of 2022, DX support for individuals at companies grew a substantial 106% compared with thesame period of the previous year amid rising needs for employees to strengthen their skills for DX. With the additional
promotion of online courses, gross profit increased significantly and the business achieved efficient management.
Going forward, the business will continue helping to generate results for students by providing value in virtual space
without depending solely on business bases and achieve greater growth in the DX market, which is expected to further
expand, by utilizing the IT skill support know-how and customer assets cultivated by the Organizational Development
Division and the Matching Division.
Cram School Business
Unlike typical cram schools, the Cram School business operates under the business concept of producing numerous“i-Companies” in addition to improving the academic ability of its students. Its services consist of operating “Motivation
Academia” cram schools for junior high and high school students to provide a place where students can not only prepare
for school entrance exams but also develop skills to play a role in society. The business also operates “SS-1,” anindividualized instruction school for students preparing for junior high school entrance exams. The Cram School business
utilizes its assets in programming education and English conversation education to provide a place for students fromelementary school straight through to high school to develop skills that will be of use in society. Like the Career School
business, it now offers both in-school and online services in response to Japan’s state of emergency and new lifestyles.
In this business, revenues for the first quarter of 2022 were ¥154 million (a 4.3% increase) and gross profit was ¥71
million (a 5.1% increase). This business has only one product.
Both revenues and gross profit increased in the first quarter of 2022 as the number of enrollees increased due torecovery in new enrollments.
In addition to continuing to provide stable services to increase the number of new enrollees through further
improvements to the quality of its online classes and one-on-one meetings, this business aims to achieve one-stop services
unattainable by conventional cram schools, ranging from elementary to high school students.
Matching Division
The Matching Division provides services under the concept of “engagement matching,” which applies “Motivation
Engineering,” the core technology of the Group, to its personnel placement businesses. It creates matches with a highretention rate, consisting of affinities between organizations with hiring needs and individuals who want to advance theircareers by matching not only the technical skill requirements of companies but also the respective characteristics ofindividuals and companies based on the Group’s proprietary data.
In this segment, segment revenues for the first quarter of 2022 were ¥3,858 million (a 1.2% increase) and segment
income was ¥1,647 million (a 6.1% increase). An overview of operating results by business for the first quarter of 2022 is
as follows.
ALT Placement Business
The ALT Placement business dispatches foreign assistant language teachers (ALTs) of foreign languages toelementary, junior high and high schools throughout Japan and provides English-language instruction services on contract.
In this business, where barriers to entry are extremely high due to the importance placed on relationships of trust withcustomers and a company’s track record, the Group has established the predominant number-one share among privatecompanies. The business is also capturing needs for employment of foreigners through its business that provides one-stop
foreigner recruiting, training and labor support to companies seeking to hire them.
In this business, revenues for the first quarter of 2022 were ¥3,194 million (a 3.4% decrease) and gross profit was¥987 million (a 6.5% decrease). This business has only one product.
Both revenues and gross profit for the first quarter of 2022 decreased compared with the same period of the previous
year due to the impact of temporary school closures as a result of the COVID-19 pandemic.
There was a steady increase in the number of schools using “Teachers Cloud,” a cloud-based service launched inJune 2021 to improve the efficiency of teachers’ preparation for English classes, their English ability and their teachingskills. As of March 31, 2022, nearly 5,000 schools were using the product, which is more than 15% of all public
5

elementary, junior high and high schools in Japan, and the business plans to provide it to 14,000 schools, or about 45%,
by 2024. The Group will continue to broaden the infrastructure for Teachers Cloud in classrooms and expand the market
share of the ALT Placement business.
Personnel Placement Business
The Personnel Placement business provides the human resources an organization needs to grow in the form of areferral service for human resources. The main businesses include new graduate recruiting and referral that connects
university students looking for employment with company orientation meetings and interviews, and mid-career referralthat matches working adults looking to change jobs with companies.
In this business, revenues for the first quarter of 2022 were ¥667 million (a 29.7% increase) and gross profit was¥662 million (a 31.8% increase).
During the first quarter of 2022, OpenWork Inc., which has a particularly high growth rate, continued to steadily
accumulate registered users and data on employee online reviews and evaluation scores despite the COVID-19 pandemic.
Amid the increasing activity in the market for people changing jobs, revenues from OpenWork’s direct hiring service
have grown substantially, increasing about 80% compared with the previous year. By continuing to utilize the customer
base of the Organizational Development Division, to add to its stockpile of resumes of job seekers, and to improve its
matching rate, this business will ramp up “engagement matching” that achieves true mutual understanding and affinity
between organizations and individuals.
Venture Incubation
In addition to its divisions, the Group conducts venture incubation. In venture incubation, the Group provides its
know-how in organizational and personnel consulting in addition to funding, as well as support for growing venturecompanies on an organizational level with the aim of listing their stock. The two main criteria for selection of investees
are (1) sympathy with creating a “Motivation Company” and (2) aim to list stock. Gains on sales and other results
generated from venture incubation are recorded as other components of equity on the condensed consolidated statementsof financial position.

6

(2) Overview of Financial Position for the Three Months Ended March 31, 2022
Total assets as of March 31, 2022 were ¥28,555 million, a decrease of ¥1,507 million from the end of the previous
year. This was mainly due to factors including decreases of ¥633 million in right-of-use assets and ¥829 million in othernon-current financial assets associated with the relocation of the Tokyo integrated office.
Total liabilities as of March 31, 2022 were ¥19,786 million, a decrease of ¥1,627 million from the end of the previous
year. This was mainly due to factors including a ¥709 million decrease in trade and other payables associated with adecrease in outstanding payments for corporate insurance and other factors, and decreases of ¥301 million in income tax
payable and ¥326 million in other current liabilities.
Total equity as of March 31, 2022 was ¥8,768 million, an increase of ¥120 million from the end of the previous year.
Principal factors included a ¥106 million increase in retained earnings due to posting net income attributable to owners of
the parent, partially offset by the payment of dividends from surplus.
(3) Overview of Cash Flow for the Three Months Ended March 31, 2022
Cash and cash equivalents (“cash”) as of March 31, 2022 were ¥5,247 million, an increase of ¥329 million during theperiod.
Cash flow during the three months ended March 31, 2022 was as follows.
Cash Flow from Operating Activities
Net cash used in operating activities was ¥41 million (in the same period of the previous year, net cash provided byoperating activities was ¥482 million). The principal factor increasing cash was a ¥492 million decrease in trade and otherreceivables compared with the same period of the previous year, while the principal factors decreasing cash included a¥407 million decrease in depreciation and amortization, a ¥299 million decrease in trade and other payables, and a ¥229
million increase in income taxes paid compared with the same period of the previous year.
Cash Flow from Investing Activities
Net cash provided by investing activities was ¥748 million (in the same period of the previous year, net cash used ininvesting activities was ¥382 million). Principal factors increasing cash included ¥441 million in proceeds from business
transfer and an increase of ¥836 million in proceeds from refund of security deposits and guarantees compared with thesame period of the previous year.
Cash Flow from Financing Activities
Net cash used in financing activities was ¥377 million, an increase of ¥282 million compared with the same period of
the previous year. The principal factor increasing cash was an increase of ¥1,294 million in proceeds from long-term
financial liabilities, while the principal factors decreasing cash included a ¥1,200 million net decrease in short-term
financial liabilities and a ¥554 million increase in repayment of long-term financial liabilities.
(4) Forecast
Through structural reforms of both businesses and costs consisting of the transfer of the domestic temp staff businessand office relocations in the previous fiscal year, the Group substantially increased operating income in the first quarter of2022 and has evolved into a robust management structure. For the fiscal year ending December 31, 2022, the Company
forecasts ¥35,000 million in revenues (an increase of 7.2% year on year); ¥4,000 million in operating income (an increaseof 93.6%) and ¥2,050 million in net income attributable to owners of the parent (an increase of 123.1%). As shown by the
management results for the first quarter of 2022, the Company is making steady progress.
Due to the announcement in 2020 by the Securities and Exchange Commission (SEC) of the United States that listedcompanies will be required to report on human capital, attention to human capital is rising worldwide. In March 2022, theGroup became the first in Asia to obtain certification under ISO 30414 guidelines for human capital reporting, anddisclosed its organizational and personnel strategies.
The Company believes that management of human capital, including improving employee engagement, is essential
for companies to be able to achieve sustainable growth amid the drastic changes in conditions for organizations andindividuals. Based on this approach, the Group has achieved numerous corporate transformations based on its core7

“Motivation Engineering” technology since its founding in 2000 as a pioneer in organizational and personnel consulting.
Monthly fee revenue for the Motivation Cloud series, which supports organizational diagnosis and transformation, for themonth of December 2022 is forecast to be ¥320 million, and progress toward this target has been steady. The Group willcontinue to accelerate growth going forward through support for diagnosis, transformation and disclosure.

8

2. Condensed Consolidated Financial Statements and Main Notes(1) Condensed Consolidated Statements of Financial Position(Millions of yen, rounded down to the nearest million)

As ofDecember 31, 2021

ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Other non-current financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

9

As of
March 31, 2022

4,917
3,851
200
9
753
9,732

5,247
3,403
277
0
765
9,693

637
4,149
9,410
2,234
2,744
984
168
20,32930,062

605
3,515
9,410
2,388
1,915
942
82
18,861
28,555

(Millions of yen, rounded down to the nearest million)

LIABILITIES AND EQUITY
LIABILITIESCurrent liabilities
Trade and other payables
Contract liabilities
Interest-bearing and other financial liabilities
Lease liabilities
Income tax payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Interest-bearing and other financial liabilities
Lease liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EQUITY
Equity attributable to owners of the parent
Share capital
Capital surplus
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

10

As of
December 31, 2021

As ofMarch 31, 2022

2,094
1,615
7,161
1,079
716
274
2,075
15,018

1,384
1,695
6,633
1,015
414
34
1,748
12,926

1,716
3,929
359
256
134
6,395
21,413

2,383
3,723
365
256
130
6,860
19,786

1,380
3,879
(320)
4,406
(1,853)
7,493
1,154
8,648
30,062

1,380
3,879
(320)
4,513
(1,882)
7,570
1,198
8,768
28,555

(2) Condensed Consolidated Statements of Operations and Comprehensive Income
Condensed Consolidated Statements of Operations(Millions of yen, rounded down to the nearest million)

Continuing Operations
Revenues
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating income
Financial revenues
Financial expenses
Income before income taxes
Income taxes
Net income
Discontinued Operations
Profit (loss) from discontinued operations
Net income(Attributable to)
Owners of the parent
Non-controlling interests
Total

Three months ended
March 31, 2021

Three months ended
March 31, 2022

7,947
4,128
3,818
3,152
18
60
623
1
56
568
292
275

7,947
3,928
4,019
3,199
15
35
800
2
79
723
271
451

5
280

(90)
361

245
35
280

318
43
361
(Yen)

Earnings per share attributable to owners of the parent
Basic earnings (loss) per share
Continuing operations
Discontinued operations
Basic earnings (loss) per share
Diluted earnings (loss) per share
Continuing operations
Discontinued operations
Diluted earnings (loss) per share

11

2.29
0.05
2.34

3.66
(0.81)
2.85

2.29
0.05
2.34

3.66
(0.81)
2.85

Condensed Consolidated Statements of Comprehensive Income(Millions of yen, rounded down to the nearest million)

Three months ended
March 31, 2021

Net income
Other comprehensive income
Items that will not be reclassified to profit or loss:
Net gain (loss) on revaluation of financial assets
measured at fair value through other comprehensive income
Total of items that will not be reclassified to profit or loss

Three months ended
March 31, 2022

280

361

(15)
(15)

(42)
(42)

Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations
Total of items that may be reclassified to profit or loss
Total other comprehensive income
Total comprehensive income

3
3
(11)
268

(2)
(2)
(44)
317

(Attributable to)
Owners of the parent
Non-controlling interests
Comprehensive income

233
35
268

273
43
317

12

(3) Condensed Consolidated Statements of Changes in Equity
Three months ended March 31, 2021
(Millions of yen, rounded down to the nearest million)

Equity attributable to owners of the parent

January 1, 2021
Net income
Other comprehensive
incomeTotal comprehensive
incomeDividends fromsurplus
Total transactions withthe owners
March 31, 2021

Total equity
attributableto owners of
the parent

Noncontrollinginterests

Total
equity

3,760
245

1,157
35

4,917
280

(11)

(11)

—

(11)

245

(11)

233

35

268

—

(188)

—

(188)

—

(188)

—
(1,733)

(188)
4,045

—
(1,743)

(188)
3,805

—
1,192

(188)
4,997

Share
capitalCapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

1,380
—

1,855
—

(1,733)
—

3,989
245

(1,731)
—

—

—

—

—

—

—

—

—

—

—
1,380

—
1,855

Three months ended March 31, 2022
(Millions of yen, rounded down to the nearest million)

Equity attributable to owners of the parent

January 1, 2022
Net income
Other comprehensive
incomeTotal comprehensive
incomeDividends fromsurplus
Share-based paymenttransactions
Total transactions withthe owners
March 31, 2022

Total equity
attributableto owners of
the parent

Noncontrollinginterests

Total
equity

7,493
318

1,154
43

8,648
361

(44)

(44)

—

(44)

318

(44)

273

43

317

—

(211)

—

(211)

—

(211)

—

—

—

14

14

—

14

—
3,879

—
(320)

(211)
4,513

14
(1,882)

(197)
7,570

—
1,198

(197)
8,768

Share
capitalCapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

1,380
—

3,879
—

(320)
—

4,406
318

(1,853)
—

—

—

—

—

—

—

—

—

—

—
—
1,380

13

(4) Condensed Consolidated Statements of Cash Flow
(Millions of yen, rounded down to the nearest million)

Cash flow from operating activities
Income before income taxes
Profit before tax from discontinued operations
Depreciation and amortization
Loss on impairment(Profit) loss from business transfer
Financial revenues and financial expenses
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flow from investing activities
Payments for acquisition of property, plant and equipment
Payments for acquisition of intangible assets
Proceeds from business transfer
Payments for security deposits and guarantees
Proceeds from refund of security deposits and guarantees
Payments for asset retirement obligations
Other
Net cash used in investing activities
Cash flow from financing activities
Net increase (decrease) in short-term financial liabilities
Proceeds from long-term financial liabilities
Repayment of long-term financial liabilities
Payments of cash dividends
Repayment of lease liabilities
Net cash used in financing activities
Cash and cash equivalents translation adjustment
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of quarter
Cash and cash equivalents at end of quarter

14

Three months ended
March 31, 2021

Three months ended
March 31, 2022

568
7
853
56
—
55
(44)
(38)
(446)
(14)
996
0
(56)
(458)
482

723
24
445
21
(50)
77
448
(77)
(745)
(141)
725
0
(78)
(687)
(41)

(31)
(187)
—
(142)
55
(96)
20
(382)

(4)
(342)
441
(7)
892
(238)
8
748

1,000
106
(506)
(189)
(504)
(94)
3
8
6,449
6,458

(200)
1,400
(1,061)
(210)
(305)
(377)
(1)
329
4,917
5,247

(5) Notes to Condensed Consolidated Financial Statements(Significant Accounting Policies)
The significant accounting policies applied in these condensed consolidated financial statements are the same as those
applied in the consolidated financial statements for the previous fiscal year.
Income taxes expense for the three months ended March 31, 2022 was calculated using the estimated average annual
effective tax rate.
(Notes Regarding Significant Accounting Estimates and Judgements)
In preparing the condensed consolidated financial statements, management makes judgments, estimates andassumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income andexpenses. The results of accounting estimates may differ from actual results.
The estimates and their underlying assumptions are reviewed on an ongoing basis. The effects of a review ofaccounting estimates are recognized in the accounting period in which the estimates are reviewed as well as in future
periods.
Estimates and estimate-related judgments that have a significant impact on these condensed consolidated financial
statements are the same as those in the condensed consolidated financial statements for the same period of the previous
fiscal year.
In the three months ended March 31, 2022, there was no change to the “Accounting Estimates Related to the COVID19 Pandemic” presented in the Securities Report for the previous fiscal year.

(Notes Regarding Assumption of Going Concern)
None applicable(Significant Subsequent Events)
None applicable15