Summary of Business Results for the Second Quarter Ended September 30, 2020
[Japan GAAP] (Consolidated)
November 12, 2020
Company
Estore Corporation
Listed on the TSE
Stock Code4304
URL: https://Estore.co.jp
Representative
Kenichi Ishimura, Representative Director
Contact
Atsushi Mori, Corporate Officer, General Manager of Administration Dept.
T E L: +81-3-3595-1106
Expected date of filing of quarterly report: November 13, 2020 Expected starting date of dividend payment: Preparation of quarterly supplementary financial document: None
Quarterly results briefing: None
（Rounded down to million yen）

1. Consolidated business results for the six months ended September 2020 (April 1, 2020 through September 30, 2020)(1) Consolidated results of operations(% change from the previous corresponding period)
Net sales
Six months ended Sept. 2020
Six months ended Sept. 2019

Million yen
4,989
2,365

Operating income
%
111.0
-1.0

Million yen
376
232

%
61.6
-16.3

Net income attributable toowners of parent

Ordinary income
Million yen
549
294

%
86.4
-19.3

Million yen
316
217

%
45.2
-17.3

(Note) Comprehensive income:Year ended September 2020: 321 million yen (47.5%)
Year ended September 2019: 217 million yen (-17.5%)

Net income
per share
Yen
66.22
45.60

Six months ended Sept. 2020
Six months ended Sept. 2019

Diluted net income per
share
Yen
55.04
37.89

(2) Consolidated financial position
Total assets
Million yen
7,516
7,375

As of Sept. 2020
As of Mar. 2020

Shareholders’equity ratio

Net assets
Million yen
1,929
1,746

%
25.7
23.7

(Reference) Shareholders’ equity:
As of September 2020: 1,929 million yen
As of March 2020: 1,746 million yen

2. Dividends
End of 1Q

Annual dividend
End of 3Q
Yen
Yen
0.00
0.00
-

End of 2Q
Yen-

Year ended Mar. 2020
Year ending Mar. 2021
Year ending Mar. 2021 (forecast)Year-end

Total

Yen
29.00

Yen
29.00

29.00

29.00

(Note) Revisions to dividend forecast for the current quarter: None

3．Forecast of consolidated business results for the fiscal year ending March 2021
(April 1, 2020 through March 31, 2021)(% change from the previous corresponding period)
Net sales
Million yen

Year ending Mar. 2021

9,645

Operating income%

Million yen

98.7(Note) Revisions to business forecast for the current quarter: None%

398

Ordinary income
Million yen

-16.6

%

459

-12.7

Net income attributableto owners of parent
Million yen
%

230

-37.4

*Notes(1) Application of accounting procedures specific to preparation of the quarterly financial statements: None
(2) Adoption of special accounting methods for preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatement①Changes in accounting policies associated with revision of accounting standards:②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: None: None: None: None(4) Shares outstanding (common stock)①Number of shares outstanding at the end of period (treasury stock included)
As of September 2020
5,161,298 shares
As of March 2020
5,161,298 shares②Treasury stock at the end of period
As of September 2020
387,634 shares
As of March 2020
387,579 shares③Average number of stock during period (quarterly cumulative period)
Six months ended September 2020
4,773,690 shares
Six months ended September 2019
4,773,973 shares*Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants or
auditing firms.
*Explanation regarding appropriate use of business forecasts and other special instructions
Forecasts regarding future performance in this material are based on information currently available to the Company
and certain assumptions that the Company deems to be reasonable at the time this report was prepared. The Company
does not make promises about the achievements. Actual results may differ significantly from the forecasts due tovarious factors.

Table of Contents of the Appendix
1. Qualitative Information on Quarterly Financial Results……………………………………………………………………………. 2(1) Results of Operations……………………………………………………………………………………………………….. 2(2) Financial Position…………………………………………………………………………………………………………… 4(3) Consolidated Earnings Forecasts and Other Forward-Looking Information……………………………………………….. 4
2. Quarterly Consolidated Financial Statements and Major Notes……………………………………………………………………. 5(1) Quarterly Consolidated Balance Sheets…………………………………………………………………………………….. 5(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income………………………………... 7
Quarterly Consolidated Statement of Income
Second Quarter………………………………………………….………………………………………………………. 7
Quarterly Consolidated Statements of Comprehensive Income
Second Quarter………………………………………………………………………………………………………….. 8(3) Quarterly Consolidated Statement of Cash Flows…………………………………………………………………………... 9(4) Notes to Quarterly Consolidated Financial Statements…………………………………………………………………….. 10(Notes on Going Concern Assumption) ………………………………………………………………………………….. 10(Notes on Substantial Changes in the Amount of Shareholders' Equity)…………………………………………………. 10(Segment information) ……………………………………………………………………………………………………. 10- 1 -1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
For the six months ended September 30, 2020, net sales were 4,989,856 thousand yen (up 111.0% YoY), operating income of
376,067 thousand yen (up 61.6% YoY), ordinaru income of 549,640 thousand yen (up 86.4% YoY), and net income attributableto owners of parent of 316,133 thousand yen (up 45.2% YoY). The reason for the more than double-fold increase in net sales isdue in part to the contribution from M&A, but it is also important factor that existing businesses themselves are growing at
double-digit rates. As a result, operating income rose by 61.6%. Profits also increased due to M&A, absorbing amortization of
goodwill. Meanwhile, net sales reached 51.7% of the full-year target, almost in line with the plan, and operating income has
already reached 94.3%.
The domestic B2C-EC market, which we are targeting, continues to grow at a high rate, but the e-commerce ratio is still low. In
addition, client companies are expected to continue to promote digital transformation (DX) in response to structural population
decline and deflation. We expect this market to continue to grow over the medium to long term. In particular, building andstrengthening own e-commerce site (as opposed to low-cost, high-volume) is at the center of DX transformation, and the growthof our group, which focuses on this support business area, is based on our ability to accurately grasp these market needs.
In addition, during the fiscal year under review, we were able to capture the extraordinary changes in social needs stemmingfrom the COVID-19 crisis, and the impact of these changes had a positive effect on the whole. By sector, the negative impact on
the performance of client companies contributed to a slight headwind in the Promotions Business. However, in the Systems
Business and Payments Business, the Company is fully covering this by capturing corporate DX investment and rising consumer
spending.
The following are the results of the three major sectors.
<Systems Business Sector>
Sales in the Systems Business doubled to 1,889,415 thousand yen (up 101.5% YoY). Although there is a contribution from
M&A, existing businesses are also steadily growing by accurately grasping the increasing DX investment demand by customers.
The Systems Business covers SaaS type EC systems (service name: shopserve) and PaaS type EC systems (service name: Sell
Side Solution). In addition to helping customers build their e-commerce businesses initially, their ongoing use, maintenance, andadditional development will make this a highly stocked sector, which is expected to grow with the growth of the e-commercemarket, but before that the business is a stable revenue base.
In addition, from this period, the settlement agency service has been carved out of the system business and recorded as thesettlement business.
<Settlement Business Sector>
Sales in the Settlement Business were 1,169,989 thousand yen (up 38.4% YoY). This is the result of our ability to accurately
grasp the increasing stay-at-home demand and to significantly increase sales at client companies.
The profit structure of the Settlement Business is linked to the EC sales of client companies, and the structure is that growth isaccompanied linearly by growth in the EC market.
<Promotions Business Sector>
Sales in the Promotions Business more than tripled to 1,914,507 thousand yen (up 228.6% YoY) Contributions from M&A amid
the headwinds caused by COVID-19 have generally been favorable, albeit slightly weaker, compared to the plan.
The Promotions Business supports the attraction of customers and the production of websites, and this business itself is ahighly recurring business. In addition, this business directly leads to an increase in e-commerce sales by client companies, which
will also contribute to earnings in the Settlement Business.
Looking ahead to the third and fourth quarters, client companies' DX investment appears to be rising further, and we expect thatthe stay-at-home trend has established EC consumption habits, which will continue to provide a tailwind.

- 2 -(Quarterly Sales and Profits)

Operating income(million yen)
Ordinary income(million yen
Net sales (million yen)

Operating/Ordinary Income(million yen)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

3Q

4Q

Net sales(million yen)

FY3/21

FY3/20(Amount of commercial distribution per store)

Commercial amount(million yen)

1Q

2Q

3Q

4Q

1Q

FY3/202Q
FY3/21- 3 -Commercial amount(million yen)(2) Financial Position① Assets, Liabilities and Net Assets
Total assets at the end of the second quarter amounted to 7,516,717 thousand yen.
The financial position at the end of the second quarter of the current fiscal year is as follows.
AssetsTotal assets at the end of the second quarter amounted to 7,516,717 thousand yen, an increase of 140,888 thousand yen fromthe end of the previous fiscal year. This was mainly due to an increase of 76,464 thousand yen in cash and deposits and anincrease of 103,720 thousand yen in shares of subsidiaries and affiliates.
Liabilities
The balance of liabilities at the end of the second quarter of the current fiscal year decreased by 41,989 thousand yen from theend of the previous fiscal year to 5,587,228 thousand yen. This was mainly due to an increase in deposits received of 152,673
thousand yen and a decrease in accounts payable-trade of 183,139 thousand yen.
Net assets
The balance of net assets at the end of the second quarter increased by 182,878 thousand yen from the end of the previous
fiscal year to 1,929,488 thousand yen. This was due to the recording of 316,133 thousand yen as net income attributable toowners of parent, despite the payment of 138,437 thousand yen in dividends for the fiscal year ended March 2020. As a result, theequity ratio was 25.7% (up 2.0 percentage points from the end of the previous fiscal year).
② Cash FlowsThe balance of cash and cash equivalents (hereinafter referred to as "cash") at the end of the second quarter increased by 75,565
thousand yen from the end of the previous fiscal year to 3,364,314 thousand yen (up 2.3% from the end of the previous fiscal year).
Cash flows for the second quarter of the current fiscal year were as follows:
Cash flows from operating activities
Net cash provided by operating activities was 342,623 thousand yen (92,792 thousand yen of increase in the same period of
the previous fiscal year). The major factors behind the increase were income before income taxes and minority interests of 419,017
thousand yen and an increase in deposits received of 152,673 thousand yen.
Cash flows from investing activities
Net cash used in investing activities was 29,779 thousand yen (23,218 thousand yen of increase in the same period of theprevious fiscal year). The major factor behind the increase was proceeds from collection of lease deposits of 56,969 thousand
yen, and the major factor behind the decrease was payment of 97,984 thousand yen for lease deposits.
Cash flows from financing activities
Net cash used in financing activities was 237,051 thousand yen (138,073 thousand yen of decrease in the same period of theprevious fiscal year). The major factors behind the decrease were dividends paid of 138,320 thousand yen and repayments ofcurrent portion of long-term debt of 65,004 thousand yen.
(3) Consolidated Earnings Forecasts and Other Forward-Looking Information
We made no changes to the forecasts for the fiscal year ending March 2021 announced in "Notice of Revisions toConsolidated Earnings Forecast Due to Changes in Accounting Practices, etc." on August 12, 2020.

- 4 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets(Thousand yen)Previous fiscal year
(March 31, 2020)
AssetsCurrent assets
Cash and deposits
Accounts receivable
Work in process
Supplies
Crypto assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Tools, furniture, and fixtures, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Customer-related assets
Other
Total intangible assets
Investments and other assets
Investment securities
Gain on sales of stock of affiliates
Lease deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets- 5 -Current Second Quarter(September 30, 2020)

3,288,953
1,287,962
110,256
15,706
11,015257,506-1,175
4,970,225

3,365,417
1,159,375
100,042
15,992
18,778372,320-1,1355,030,791

106,552
156,123
262,675

105,660
156,798
262,459

609,793557,000
130,903
1,297,697

581,398
529,150
124,229
1,234,777

198,690
202,363374,615
85,079-15,518
845,230
2,405,603
7,375,828

200,608
306,083
415,630
81,884-15,518
988,689
2,485,926
7,516,717

(Thousand yen)Previous fiscal year
(March 31, 2020)
Liabilities
Current liabilities
Accounts payable
Current portion of long-term loans payable
Accounts payable
Income taxes payable
Deposits received
Asset retirement obligations
Other
Total current liabilities
Long-term liabilities
Bond with stock acquisition rightAsset retirement obligations
Long-term loan payable
Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Retained earnings
Treasury stock
Total shareholders' equity
Other accumulated comprehensive income
Valuation difference on securities
Total other accumulated comprehensive income
Total net assets
Total liabilities and net assets- 6 -Current Second Quarter(September 30, 2020)

1,016,490
130,008
110,775
148,013
1,855,400
277,6413,538,329

833,351
130,008
136,640
164,0122,008,073
79,890253,917
3,605,894

999,600
57,284
862,848
171,156
2,090,888
5,629,218

999,600
56,816
797,844
127,073
1,981,334
5,587,228

523,328
1,548,009-324,444
1,746,893

523,328
1,725,705-324,519
1,924,514

-283
-283
1,746,610
7,375,828

4,974
4,974
1,929,488
7,516,717

(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income
Quarterly Consolidated Statement of Income
Second Quarter(Thousand yen)Previous Second Quarter(April 1, 2019 to
September 30, 2019)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Gain on sale of investment securities
Equity in income of affiliates
Valuation gain of crypto asset
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of leases
Foreign exchange loss
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary loss
Impairment loss
Total extraordinary loss
Income before income taxes
Income taxes
Income taxes-deferred
Total income tax
Net income
Net income attributable to owners of noncontrolling shareholders
Net income attributable to owners of parent- 7 -Current Second Quarter(April 1, 2020 to
September 30, 2020)

2,365,255
1,625,376
739,879
507,235
232,643

4,989,856
3,826,103
1,163,753
787,685
376,0673
54,793
7,190
534
62,520562,723
108,9247,783
1,245
180,682

146
113
260
294,904

3,709
3,069
228
102
7,109
549,640

294,904
78,282-1,04977,233
217,671-

130,622
130,622419,017
147,853-44,969
102,884
316,133-

217,671

316,133

Quarterly Consolidated Statements of Comprehensive Income
Second Quarter(Thousand yen)Previous Second Quarter(April 1, 2019 to
September 30, 2019)
Net income
Other comprehensive income
Valuation difference on securities
Total other comprehensive income
Comprehensive income
BreakdownComprehensive income attributable toowners of parent
Comprehensive income attributable toowners of non-controlling interests- 8 -Current Second Quarter(April 1, 2020 to
September 30, 2020)

217,671

316,133

252
252
217,924

5,257
5,257
321,391

217,924

321,391--

(3) Quarterly Consolidated Statements of Cash Flows(Thousand yen)Previous Second Quarter(April 1, 2019 to
September 30, 2019)
Cash flows from operating activities
Income before income taxes
Goodwill
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest expenses
Foreign exchange loss (gain)
Loss (gain) on sale of investment securities
Gain on forfeiture of unclaimed dividends
Valuation loss (gain) on crypto assets
Equity loss (gain) of affiliated companies
Decrease (increase) in notes and accounts receivabletrade
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in accounts payable-other
Increase (decrease) in deposits received
Decrease (increase) in other assets
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Purchases of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Proceeds from withdrawal of deposits paid
Payments for lease deposits
Proceeds from collection of lease deposits
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayment of current portion of long-term loans
payableRepayment of lease obligations
Purchase of treasury stock
Dividends paid
Other
Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at beginning of quarter- 9 -Current Second Quarter(April 1, 2020 to
September 30, 2020)

294,904
1,097
29,144-102

419,01744,50999,203
130,622
-39

-3
146
-348
-7,190-54,793
4,475

-5
3,709
228
-62,723-7,783-108,924
138,929

613-187,948-13,280-86,185
3,937-12,706
159,711
3-66,921
92,792

8,108
152,673-207,383
52,246474,4395,209-3,709-133,316
342,623-2,244-973-20,000-23,218-81,118-37,660
68,384
61,630-97,984
56,969-29,779--30,000-65,004-576-144-137,662
310-138,073-146-2,753-75-138,320-898-237,051-228-68,6442,976,494
2,907,849

75,565
3,288,749
3,364,314

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Notes on Substantial Changes in the Amount of Shareholders' Equity)
Not applicable.
(Segment information)
Since our group operate with a single segment, the segment information is omitted.

- 10 -