Consolidated Financial Statements for the Three Months Ended March 31, 2023 (IFRS)
These financial statements have been prepared for reference only.

May 12, 2023

Link and Motivation Inc.
Stock exchange listing: Tokyo, Prime
Markethttp://www.lmi.ne.jp/english
Code number: 2170
Representative: Ozasa Yoshihisa, Chairman and Representative Director
Contact: Yokoyama Hiroaki, Corporate Officer and Manager of Group Design Office
Phone: +81-3-6853-8111
Filing of Quarterly Report (Shihanki Hokokusho) (scheduled):
May 12, 2023
Start of distribution of dividends (scheduled):
June 23, 2023
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, 2023
(January 1, 2023 - March 31, 2023)(1) Revenues and Income

Revenues(¥ million)
Three months ended
March 31, 2023
Three months ended
March 31, 2022

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

8,008

0.8

865

8.1

848

17.4

507

(2.4)

7,947

0.0

800

28.3

723

27.3

520

—

Net income
attributable toowners of theparent(¥ million)

Change(%)

Comprehensive
income(¥ million)

Change(%)

Basic earnings
per share (¥)

Dilutedearnings per
share (¥)

Three months ended
March 31, 2023
422
(11.4)
650
36.6
3.79
3.77
Three months ended
March 31, 2022
476
—
476
—
4.27
4.27
Note: The Group has adopted IAS 12 Income Taxes (May 2021 amendment) as of the first quarter of the fiscal year ending December
31, 2023, and figures are retrospectively restated to reflect this change in accounting policy. The percentage change from thesame period of the previous year in the amounts of net income, net income attributable to owners of the parent, andcomprehensive income are not presented because retrospective adjustments were made in accordance with this change inaccounting policy.

(2) Financial Position

Equity attributable
Ratio of equity
to owners of theattributable to owners
parentof the parent to total(¥ million)
assets (%)
As of March 31, 2023
30,053
12,1409,563
31.8
As of December 31, 2022
28,908
11,243
9,057
31.3
Note: The Group has adopted IAS 12 Income Taxes (May 2021 amendment) as of the first quarter of the fiscal year ending December
31, 2023, and figures are retrospectively restated to reflect this change in accounting policy.
Total assets(¥ million)

Total equity(¥ million)

2. Dividends
1st Qtr.
1.90
2.80

2nd Qtr.
1.90

Dividends per share
3rd Qtr.
Year-end
1.90
2.00

Total
7.70

2.80

11.20

2022
2023
2023 (est.)
2.80
2.80
Note: Revisions since the most recently announced dividend forecast: No

3. Forecast of Consolidated Results for 2023 (January 1, 2023 - December 31, 2023)(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
35,300
7.7
4,670
28.7
2,900
37.7
2,630
35.4
23.57
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: Yes*(b) Changes in accounting policies other than (a) above: No(c) Changes in accounting estimates: No* Please refer to “(5) Notes to Condensed Consolidated Financial Statements” on page 16 for details.
(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, 2023: 113,068,000; Year ended December 31, 2022: 113,068,000(b) Number of treasury shares at the end of the period:
Three months ended March 31, 2023: 1,506,468; Year ended December 31, 2022: 1,506,468(c) Average number of shares outstanding (cumulative with earlier quarters):
Three months ended March 31, 2023: 111,561,532; Three months ended March 31, 2022: 111,561,557* 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 Group 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 ............................................................................ 4(1) Overview of Results of Operations for the Three Months Ended March 31, 2023 ................................ 4(2) Overview of Financial Position for the Three Months Ended March 31, 2023....................................... 9(3) Overview of Cash Flow for the Three Months Ended March 31, 2023 ................................................... 9(4) Forecast ......................................................................................................................................................... 9
2. Condensed Consolidated Financial Statements and Main Notes ................................................................. 10(1) Condensed Consolidated Statements of Financial Position .................................................................. 10(2) Condensed Consolidated Statements of Operations and Comprehensive Income ............................... 12(3) Condensed Consolidated Statements of Changes in Equity ................................................................... 14(4) Condensed Consolidated Statements of Cash Flow................................................................................. 15(5) Notes to Condensed Consolidated Financial Statements ....................................................................... 16
Change in Accounting Policies ..............................................................................................................16
Significant Accounting Policies .............................................................................................................16
Notes Regarding Significant Accounting Estimates and Judgements ............................................ 16
Notes Regarding Assumption of Going Concern .............................................................................. 16
Significant Subsequent Events ............................................................................................................ 16-3-

1. Overview of Results of Operations and Other Information

Forward-looking statements in the following text are based on judgments as of March 31, 2023, 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.
(1) Overview of Results of Operations for the Three Months Ended March 31, 2023
The Group supports the transformation of numerous organizations and individuals using “Motivation Engineering,”
which is the Group’s core technology, incorporating academic results in business administration, social systems theory,
behavioral economics, psychology and other disciplines, under its mission: “Through Motivation Engineering, we provide
opportunities to transform organizations and individuals and create a more meaningful society.” During the three months
ended March 31, 2023, the Japanese economy showed a gradual recovery trend as movement restrictions imposed toprevent the spread of COVID-19 were eased. However, the economic outlook remains unclear due to price increases inJapan and the risk of stagnation in the global economy due to interest rate hikes in various countries. Under these
economic conditions, the Group perceives a growing need for companies to promote human capital management in order todeal with change.
In this economic environment, the Group’s revenues for the first quarter of 2023 were ¥8,008 million (a 0.8%
increase compared with the same period of the previous year), gross profit was ¥4,153 million (a 3.3% increase),
operating income was ¥865 million (an 8.1% increase) and net income attributable to owners of the parent was ¥422
million (an 11.4% decrease). The Group has adopted IAS 12 Income Taxes (May 2021 amendment) as of the first quarterof the fiscal year ending December 31, 2023. This amendment has been applied retrospectively. As a result, net income
attributable to owners of the parent increased by ¥158 million in the first quarter of the previous fiscal year and by ¥2
million in the first quarter of 2023. Net income attributable to owners of the parent for the first quarter of 2023 would
have been ¥419 million before the retrospective application (a 32.0% increase compared with the same period of theprevious year before the retrospective application).
The segment and business classifications of the Group are as shown below, and an overview of the first quarter of2023 by segment and business follows.

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.

-4-

Organizational Development Division
The Organizational Development Division defines companies that use employee motivation as the engine ofcorporate growth as “Motivation Companies,” and provides support for the creation of many such “Motivation
Companies.” In concrete terms, it offers corporate customers services that provide support for increasing engagementwith 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 2023 were ¥2,868 million (a 12.2% increase), and segment
income was ¥2,002 million (a 9.2% increase). An overview of operating results by business for the first quarter of 2023
is as follows.
Consulting & Cloud BusinessTo turn corporations into “Motivation Companies,” the Consulting & Cloud 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 2023 were ¥2,557 million (an 11.9% increase) and gross profit was¥1,898 million (an 11.4% increase). Results by product in the Consulting & Cloud business were as follows.
Table 1. Revenues by ProductProduct (¥ million)(Figures in brackets are gross profit)

Three months ended
March 31, 2022

Three months ended
March 31, 2023

2,284
[1,704]

2,557[1,898]

11.9%
11.4%

1,498

1,518

1.3%

786

1,038

32.1%

Consulting & Cloud Business
Consulting
Cloud

YoY change(%)

In the first quarter of 2023, revenues and gross profit increased substantially compared with the same period of theprevious year, driven by growth of the Motivation Cloud series.
Monthly fee revenue increased substantially compared with the same period of 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 ofdeliveries and monthly fee revenue were as follows.
Table 2. Number of Deliveries and Monthly Fee Revenue for the Motivation Cloud Series at Quarter-End
2022
2023
March

Number ofdeliveries
Monthly fee
revenue(¥ thousand)

June

September

December

March

745

768

820

831

846

256,155

284,692

306,934

328,505

339,179

Since its founding in 2000, the Group has not only diagnosed the engagement status of companies and employees but
has also supported their transformation. The Motivation Cloud series is a group of cloud-based services in the field of
HR Tech (human resources combined with technology) for improving employee engagement. The Group migrated theorganization diagnosis service it has offered since its founding to the cloud and started providing the Motivation Cloud
service in July 2016. Motivation Cloud is currently ranked number one in share of sales by vendor in the employee
engagement market (the fifth consecutive year: fiscal 2017 to fiscal 2021 forecast) in ITR Market View: Human
Resources Management Market 2022, a market research report published by ITR Corporation.

-5-

The Group is forecasting ¥430,000 thousand in fee revenue from the Motivation Cloud series for the month ofDecember 2023 (a year-on-year increase of 30.9%). Monthly fee revenue for March 2023 was ¥339,179 thousand (a32.4% increase).
The Group will promote introductions of Motivation Cloud at major companies and lateral deployment at their groupcompanies. In addition, for Stretch Cloud, a human resource development cloud service, we plan to expand in the humanresource development market, which exceeds ¥500 billion. By executing these growth strategies, the Group will achieve
further growth.
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 integrated reports for shareholders and investors, web-based media such as investor relations (IR) sites, andvisual media such as videos that explain products and webcasts of shareholders’ meetings, the business creates physicaland virtual forums for shareholders’ meetings and other events.
In this business, revenues for the first quarter of 2023 were ¥375 million (a 7.1% increase) and gross profit was ¥139
million (an 18.9% decrease).
In the first quarter, revenues increased compared with the same period of the previous year as production of
integrated reports expanded. Gross profit decreased substantially compared with the same period of the previous year due
to an increase in production-related personnel expenses.
Needs for disclosure of information on non-financial capital, particularly human capital information, are increasing
further with the requirement to disclose human capital information in securities reports. The business will respond tothese needs as well as generate synergies with the Consulting & Cloud business by disclosing the results of its diagnosis
and transformation initiatives.

-6-

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 2023 were ¥1,573 million (a 14.2% decrease) and segment
income was ¥670 million (a 17.6% decrease). An overview of operating results by business for the first quarter of 2023
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.
In this business, revenues for the first quarter of 2023 were ¥1,402 million (a 16.5% decrease) and gross profit was¥600 million (a 19.0% decrease).
In the first quarter, revenues and gross profit decreased substantially compared withthe same period of the previous year due to relocation and closure of schools in BtoC services, and because the repeat
rate became an issue in BtoB services (reskilling support for employees).
In BtoC services, the business continued to carry out structural reforms. Specifically, in response to the significant
changes in lifestyles due to COVID-19, and the shift of learning needs from in-person to online, the business is porting
all courses and support for its BtoC services online. In addition, the repeat customer rate has become an issue for BtoB
services as some solutions remain centered on one-off, on-site support. Going forward, we will provide programs thathave a high level of continuation and that are not one-off solutions to the HR departments of companies rather than justas on-site support, while enhancing collaboration with the Organizational Development 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
from elementary 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 lifestyle changes caused by the COVID19 pandemic.
In this business, revenues for the first quarter of 2023 were ¥170 million (a 10.5% increase) and gross profit was ¥69
million (a 2.5% decrease).
Revenues increased substantially in the first quarter due to improvement in the continuation rate after completion ofjunior high school entrance exams. Gross profit decreased slightly as an increase in personnel expenses was reflected incost of sales.
This business will continue to increase the number of new enrollees by providing learning opportunities to a wide
range of students through online classes.
Matching Division
The Matching Division provides opportunities to connect organizations and individuals under the concept of“engagement matching.” In concrete terms, it applies “Motivation Engineering,” the core technology of the Group, to theplacement of non-Japanese assistant language teachers (ALTs) to schools and human resources to other businesses. It
creates matches with a high retention rate by going beyond the skill requirements of companies and local governments
for matching with the characteristics of each individual based on the Group’s proprietary data.

-7-

In this segment, segment revenues for the first quarter of 2023 were ¥3,816 million (a 1.1% decrease) and segment
income was ¥1,702 million (a 3.4% increase). An overview of operating results by business for the first quarter of 2023
is as follows.
ALT Placement Business
The ALT Placement business dispatches non-Japanese assistant language teachers (ALTs) to elementary, junior highand 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 with customers and acompany’s track record, the Group has established the predominant number-one share among private companies.
In this business, revenues for the first quarter of 2023 were ¥2,951 million (a 7.6% decrease) and gross profit was¥856 million (a 13.2% decrease).
In the first quarter, due to price adjustments by the business as a result of the expansion of social insurance coveragefor ALTs that took effect in October 2022, some local governments did not place bids because the price exceeded their
expectations. As a result, both revenues and gross profit decreased compared with the same period of the previous year.
The Group will continue to aim for the stable growth of the ALT Placement business by meeting the increasingly
diverse needs of local governments.
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. Mainly, it provides mid-career referrals that match working adults looking tochange jobs with companies, and conducts new graduate recruiting and referrals that connect university students looking
for employment with company orientation meetings and interviews.
In this business, revenues for the first quarter of 2023 were ¥872 million (a 30.6% increase) and gross profit was¥852 million (a 28.7% increase).
In the first quarter, OpenWork Inc., which has a particularly high growth rate, continued to steadily accumulate
registered users and data on employee online reviews and evaluation scores. The direct recruiting service (OpenWork
Recruiting) saw an increase in the number of website visits through natural searches, and stronger marketing efforts led
to an increase in the number of new online resume registrations. The cumulative number of online resume registrations(working adults and students) has grown to approximately 820,000. In addition, as a result of efforts in the previous
fiscal year to revitalize existing customers and increase the number of job listings, recruiting by employers and registeredagencies increased, and revenues from this service were ¥396 million.
This business will continue to expand synergy with the Organizational Development Division, and will ramp up
support for “matching with a high retention rate” by considering not only the skills of individuals but also the type of job
seekers.
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 on an organizational
level for growing venture companies that aim to list their stock. The two main criteria for selection of investees are (1)sympathy with the idea of “creation of Motivation Companies” and (2) aim to list stock. Gains on sales and other results
generated from venture incubation are recorded in other components of equity on the condensed consolidated statementsof financial position, or under other income or other expenses on the consolidated statements of operations.

-8-(2) Overview of Financial Position for the Three Months Ended March 31, 2023
Total assets as of March 31, 2023 were ¥30,053 million, an increase of ¥1,145 million from the end of the previous
year. This was mainly due to a ¥949 million increase in cash and cash equivalents.
Total liabilities as of March 31, 2023 were ¥17,912 million, an increase of ¥247 million from the end of the previous
year. This was mainly due to factors including decreases of ¥523 million in trade and other payables and ¥258 million inincome tax payable, and an increase of ¥945 million in interest-bearing and other financial liabilities.
Total equity as of March 31, 2023 was ¥12,140 million, an increase of ¥897 million from the end of the previous
year. This was mainly due to factors including a ¥169 million increase in capital surplus associated with a change inownership interest in subsidiaries and a ¥391 million increase in non-controlling interests.
(3) Overview of Cash Flow for the Three Months Ended March 31, 2023
Cash and cash equivalents (“cash”) as of March 31, 2023 were ¥7,061 million, an increase of ¥949 million during theperiod.
Cash flow during the three months ended March 31, 2023 was as follows.
Cash Flow from Operating Activities
Net cash provided by operating activities was ¥70 million (compared with net cash used of ¥41 million in the same
period of the previous year). The principal factors decreasing cash were a ¥420 million increase in trade and otherreceivables compared with the same period of the previous year, while the principal factors increasing cash included a¥125 million increase in income before income taxes, a ¥114 million increase in loss on impairment, and a ¥200 million
increase in trade and other payables.
Cash Flow from Investing Activities
Net cash used in investing activities was ¥46 million (compared with net cash provided of ¥748 million in the same
period of the previous year). Principal factors increasing cash included a ¥229 million decrease in payments foracquisition of intangible assets and an increase in cash due to the non-recurrence of payments for asset retirement
obligations in the same period of the previous year, while the principal factors decreasing cash included the nonrecurrence of proceeds from business transfer that occurred in the same period of the previous year and a decrease of¥832 million in proceeds from refund of security deposits and guarantees compared with the same period of the previous
year.
Cash Flow from Financing Activities
Net cash provided by financing activities was ¥924 million (compared with net cash used of ¥377 million in the same
period of the previous year). The principal factor decreasing cash was the non-recurrence of proceeds from long-term
financial liabilities that occurred in the same period of the previous year, while the principal factors increasing cash
included a ¥1,500 million net increase in short-term financial liabilities, a decrease of ¥706 million in repayment of longterm financial liabilities, and an increase of ¥452 million in proceeds from payments from non-controlling interests.
(4) Forecast
Despite the continued decline in profit in the Career School business and the ALT Placement business comparedwith the same period of the previous fiscal year, operating income increased from the previous year with the growth of
the highly profitable Consulting & Cloud business and Personnel Placement business. For the fiscal year ending
December 31, 2023, the Group has forecast revenues of ¥35,300 million (a 7.7% year-on-year increase), operating
income of ¥4,670 million (a 28.7% increase), and net income attributable to owners of the parent of ¥2,630 million (a35.4% increase).
The Group will continue to advance a growth strategy centered on the Organizational Development Division while
responding appropriately to changes in the external environment. Specifically, as human capital management and related
information disclosure become more active, the Group will focus on stimulating needs for human capital management aswell as disclosure, and will provide support through cross-selling of services for diagnosis, transformation anddisclosure. In addition, the Group will achieve further growth in the Individual Development Division and Matching
Division by expanding synergy with the Organizational Development Division.

2. Condensed Consolidated Financial Statements and Main Notes-9-(1) Condensed Consolidated Statements of Financial Position(Millions of yen, rounded down to the nearest million)

As ofDecember 31, 2022

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- 10 -

As ofMarch 31, 2023

6,112
3,299
183
12
1,025
10,633

7,061
3,271
204
0
1,060
11,598

599
3,308
9,347
2,417
1,947
572
81
18,27528,908

633
3,376
9,347
2,295
2,137
584
80
18,45430,053

(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- 11 -

As ofDecember 31, 2022

As ofMarch 31, 2023

1,858
1,461
5,064
905
712
8
1,725
11,737

1,335
1,431
6,334
948
454
78
1,674
12,257

2,332
2,824
318
328
124
5,927
17,664

2,007
2,835
331
359
120
5,654
17,912

1,380
4,464
(320)
5,385
(1,851)
9,057
2,185
11,24328,908

1,380
4,633
(320)
5,378
(1,508)9,563
2,577
12,14030,053

(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 from discontinued operations
Net income(Attributable to)
Owners of the parent
Non-controlling interests
Total

Three months ended
March 31, 2022

Three months ended
March 31, 2023

7,947
3,928
4,019
3,199
15
35
800
2
79
723
253
469

8,008
3,854
4,153
3,237
89
140
865
1
17
848
341
507

50
520

—

507

476
43
520

422
85
507
(Yen)

Earnings per share attributable to owners of the parent
Basic earnings per share
Continuing operations
Discontinued operations
Basic earnings (per share
Diluted earnings per share
Continuing operations
Discontinued operations
Diluted earnings per share- 12 -

3.82
0.45
4.27

—

3.79

3.82
0.45
4.27

—

3.79
3.77
3.77

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

Three months ended
March 31, 2022

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, 2023

520

507

(42)
(42)

142
142

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

(2)
(2)
(44)
476

(0)
(0)
142
650

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

432
43
476

564
85
650

- 13 -

(3) Condensed Consolidated Statements of Changes in Equity
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
Cumulative effect ofchange in accounting
policyBalance at beginning of
period reflecting change inaccounting policy
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

1,154

8,648

—

(219)

—

(219)

4,187
476

(1,853)
—

7,274
476

1,154
43

8,429
520

—

—

(44)

(44)

—

(44)

—

—

476

(44)

432

43

476

—

—

—

(211)

—

(211)

—

(211)

—

—

—

—

14

14

—

14

—
1,380

—
3,879

—
(320)

(211)
4,452

14
(1,882)

(197)
7,509

—
1,198

(197)
8,707

Share
capitalCapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

1,380

3,879

(320)

4,406

(1,853)

—

—

—

(219)

1,380
—

3,879
—

(320)
—

—

—

—

Three months ended March 31, 2023

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

Equity attributable to owners of the parent

January 1, 2023
Net income
Other comprehensive
incomeTotal comprehensive
incomeChange in ownershipinterest in subsidiaries
Dividends fromsurplus
Exercise of stockacquisition rights
Share-based paymenttransactions
Transfer from othercomponents of equity
to retained earning
Total transactions withthe owners
March 31, 2023

Total equity
attributableto owners of
the parent

Noncontrollinginterests

Total
equity

9,057
422

2,185
85

11,243
507

142

142

—

142

422

142

564

85

650

—

—

—

161

305

467

—

—

(223)

—

(223)

—

(223)

—

8

—

—

(8)

—

—

—

—

—

—

—

2

2

—

2

—

—

—

(205)

205

—

—

—

—
1,380

169
4,633

—
(320)

(428)
5,378

200
(1,508)

(58)
9,563

305
2,577

247
12,140SharecapitalCapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

1,380
—

4,464
—

(320)
—

5,385
422

(1,851)
—

—

—

—

—

—

—

—

—

161

—

- 14 -

(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 tax refund
Income taxes paid
Net cash provided by (used in) 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 acquisition of investment securities
Proceeds from sale of investment securities
Payments for security deposits and guarantees
Proceeds from refund of security deposits and guarantees
Payments for asset retirement obligations
Other
Net cash provided by (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
Proceeds from exercise of stock acquisition rights
Payments of cash dividends
Repayment of lease liabilities
Proceeds from payments from non-controlling interests
Payments for acquisition of treasury shares
Net cash provided by (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- 15 -

Three months ended
March 31, 2022

Three months ended
March 31, 2023

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

848
—
403
136
—
16
27
(21)
(545)
(89)
776
0
(18)
0
(687)
70

(4)
(342)
441
—
—
(7)
892
(238)
8
748

(21)
(112)
—
(79)
112
(15)
59
—
10
(46)

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

1,300
—
(354)
16
(223)
(266)
452
(0)
924
0
949
6,112
7,061

(5) Notes to Condensed Consolidated Financial Statements(Change in Accounting Policies)
The Group has adopted the following standard as of the first quarter of 2023.
IFRS
Summary of New Establishment or Amendment
IAS 12

Income Taxes (May 2021
amendment)

Clarifies deferred tax accounting for leases and decommissioning
obligations

This amendment clarifies that entities should recognize deferred tax liabilities and deferred tax assets on certaintransactions (e.g., leases and decommissioning obligations) that give rise to equal amounts of taxable and deductible
temporary differences on initial recognition.
This amendment is applied retrospectively to the condensed quarterly consolidated financial statements and theconsolidated financial statements for the same quarter of the previous fiscal year and for the previous fiscal year.
As a result, in the consolidated statements of financial position for the previous fiscal year, deferred tax assets
decreased by ¥44 million, deferred tax liabilities increased by ¥58 million and retained earnings decreased by ¥102
million compared with the amounts before the retrospective application. In the condensed quarterly consolidated
financial statements for the three months ended March 31, 2023, deferred tax liabilities decreased by ¥2 million andretained earnings increased by ¥2 million. In the condensed consolidated statements of operations, income taxes
decreased by ¥18 million and profit from continuing operations increased by ¥18 million. In addition, profit fromdiscontinued operations increased by ¥140 million and net income increased by ¥158 million. In the condensed quarterly
consolidated statements of operations for the three months ended March 31, 2023, income taxes decreased by ¥2 million
and net income increased by ¥2 million.
Basic earnings per share from continuing operations and diluted earnings per share from continuing operations forthe three months ended March 31, 2022 each increased by ¥0.16. Basic earnings per share from discontinued operations
and diluted earnings per share from discontinued operations each increased by ¥1.26, and basic earnings per share anddiluted earnings per share each increased by ¥1.42. Basic earnings per share and diluted earnings for the three months
ended March 31, 2023 each increased by ¥0.02.
Because the cumulative effect was reflected in equity at the beginning of the three months ended March 31, 2022, thebeginning balance of retained earnings in the condensed consolidated statements of changes in equity after retrospective
application decreased by ¥219 million.
(Significant Accounting Policies)
The significant accounting policies applied in these condensed consolidated financial statements the same as those
applied in the consolidated financial statements for the previous fiscal year except for those noted in “Change in
Accounting Policies” above.
Income taxes expense for the three months ended March 31, 2023 was calculated using the estimated average annual
effective tax rate.
(Notes Regarding Significant Accounting Estimates and Judgements)
In preparing the consolidated financial statements, management makes judgments, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. 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.
(Notes Regarding Assumption of Going Concern)
None applicable(Significant Subsequent Events)
None applicable- 16 -