Financial Results
for the Fiscal Year Ended June 30, 2024
[Japanese GAAP](Non-consolidated)
August 14, 2024
Company name: WELLNET CORPORATION
Stock exchange listing: Tokyo Stock Exchange, Sapporo Securities Exchange
Code number: 2428
URL: https://www.wellnet.co.jp
Representative: Kazuhiro Miyazawa, President and Representative Director
Contact: Tatsuya Igarashi, Executive Officer, General Manager of Administrative Division
Phone: +81-11-350-7770
Scheduled date of annual general meeting of shareholders: September 25, 2024
Scheduled date of commencing dividend payments: September 26, 2024
Scheduled date of filing securities report: September 26, 2024
Availability of supplementary briefing material on financial results: Available
Schedule of financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Financial Results for the Fiscal Year Ended June 30, 2024 (July 1, 2023 to June 30, 2024)(1) Operating Results(% indicates changes from the previous corresponding period.)
Fiscal year ended
June 30, 2024
June 30, 2023

Net sales
Million yen
10,132
9,424

Fiscal year ended
June 30, 2024
June 30, 2023

Basic earnings per
share
Yen
44.29
33.68

(Reference)

%
7.5
5.3

Operating profit
Million yen
%
30.1
1,222
27.7
939

Diluted earnings
per share
Yen
43.95
33.44

Ordinary profit
Million yen
%
30.8
1,223
24.0
935

Return on equity
%
10.1
8.4

ProfitMillion yen
836
635

Ordinary profit tototal assets
%
4.7
3.9

%
31.7
19.4

Operating profit to
net sales
%
12.1
10.0

Equity in earnings/loss of affiliates: Fiscal year ended June 30, 2024: ¥– million
Fiscal year ended June 30, 2023: ¥– million(2) Financial Position

As of June 30, 2024
As of June 30, 2023

(Reference)

Equity:Total assets
Million yen
27,141
24,892As of June 30, 2024:
As of June 30, 2023:

Net assets
Million yen
8,378
7,826

Equity ratio
%
30.5
31.1

Net assets per shareYen
437.87410.38¥8,276 million¥7,745 million(3) Status of Cash Flows
Cash flows fromoperating activities
Fiscal year ended
June 30, 2024
June 30, 2023

Million yen
2,644
1,114

Cash flows frominvesting activities
Million yen
333
268

Cash flows fromfinancing activities
Million yen
(392)
(360)

Cash and cash
equivalents at the endof yearMillion yen
16,657
14,0702. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Fiscal year ended
June 30, 2023
Fiscal year ended
June 30, 2024
Fiscal year ending
June 30, 2025 (Forecast)Year-end

Total
dividends

Total

Payoutratio

Dividendtonet assets

Yen

Yen

Yen

Yen

Yen

Million
yen

%

%

–

0.00

–

16.84

16.84

317

50.0

4.1

–

0.00

–

22.15

22.15

418

50.0

5.1

–

0.00

–

26.46

26.46

50.0

3. Financial Results Forecast for the Fiscal Year Ending June 30, 2025 (July 1, 2024 to June 30, 2025)(% indicates changes from the previous corresponding period.)
Net sales

Full year

Ordinary profit

Basic earnings per
share

ProfitMillion yen%

Million yen%

Million yen%

Yen

12,000

18.4

1,500

22.6

1,000

19.5

52.91

* Notes:(1) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(2) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
As of June 30, 2024: 19,400,000 shares
As of June 30, 2023: 19,400,000 shares2) Total number of treasury shares at the end of the period:
As of June 30, 2024: 498,316 shares
As of June 30, 2023: 525,475 shares
3) Average number of shares during the period:
Fiscal year ended June 30, 2024: 18,891,592 sharesFiscal year ended June 30, 2023: 18,866,323 shares* These financial results are outside the scope of audit procedures by a certified public accountant or an audit corporation.
* Explanation of the proper use of financial results forecast and other notes
The forward-looking statements, including earnings forecasts, contained in this document are based on information
available to the Company at the time of the announcement of this document and on certain assumptions judged to bereasonable. Actual business performance and other results may differ from the forecasts due to various factors. Pleaserefer to the section of “2. Management Policy, E. Performance forecast and shareholder returns” on page 5 on theattached material of the financial results for the suppositions that form the assumptions for the financial results forecast
and cautions concerning the use of the financial results forecast.

Table of Contents
1. Overview of Business Results, etc. ......................................................................................................................... 2(1) Overview of Business Results ............................................................................................................................ 2(2) Overview of Financial Position .......................................................................................................................... 2(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Years ...................................... 3
2. Management Policy ................................................................................................................................................ 4
3. Basic Principle on the Selection of Accounting Standards ..................................................................................... 6
4. Financial Statements and Significant Notes ........................................................................................................... 7(1) Balance Sheet ..................................................................................................................................................... 7(2) Statement of Income........................................................................................................................................... 9(3) Statement of Changes in Equity ........................................................................................................................11(4) Statement of Cash Flows .................................................................................................................................. 13(5) Notes to Financial Statements .......................................................................................................................... 14(Notes on going concern assumption) ......................................................................................................... 14(Additional information) ............................................................................................................................. 14(Notes to balance sheet) .............................................................................................................................. 14(Notes to statement of income) ................................................................................................................... 15(Notes to statement of changes in equity) ................................................................................................... 15(Notes to statement of cash flows) .............................................................................................................. 19(Notes on segment information, etc.) .......................................................................................................... 19(Per share information) ............................................................................................................................... 21(Significant subsequent events) .................................................................................................................. 22
5. Others.................................................................................................................................................................... 23(1) Changes to Directors ........................................................................................................................................ 23(2) Others ............................................................................................................................................................... 23

1

1. Overview of Business Results, etc.
(1) Overview of Business Results
The Japanese economy in the fiscal year under review continued to encounter uncertainties due to changes
in the Bank of Japan’s monetary easing measures, uncertainty about the outlook for a weak yen, and resource
prices amid unstable international affairs and growing distrust in the political situation in Japan.
Under these circumstances, in the Company’s main business domain markets, Digital Transformation (DX)is being actively promoted in a variety of industries and business categories, and IT is playing an increasingly
important role in society.
The Company has also been working on “paperless” and “cashless,” promoting activities such as “Responseto the electronic payment” and “IT Promotion Solution Project for the transportation industry and the MaaSBusiness” as priority measures, and conducting measures considering a lifestyle-based fin-tech platform in thiscontext, and has focused on expanding “Payment Plus Alpha Platform,” including expansion of the use of a DX
tool for membership management, ekaiin.com, and provision of the new service for issuing and storing electronic
invoices, SHIMA-YELL.
For the “Sapporo Living Support Premium Coupons,” we utilize our payment portal site and remittancesystem to provide a complete service in collaboration with companies that provide a range of different features.
As for the “all-in-one cloud service for transportation service providers,” we have begun full-scale deployment,with the launch in June of this year of “Surutto QRtto,” a server-type digital ticket service that uses QR codesfrom Surutto Kansai. Meanwhile, regarding results for the other large-scale development project “electronicmoney,” we are continuing to prepare for the expansion of our services in anticipation of the next generation,such as by responding to mechanisms that enable each company to use its own money. In addition, we haveestablished a community based sales framework (with three locations in Tokyo, Sapporo, and Osaka) capable ofhandling large-scale projects.
As a result of these business activities, for the fiscal year ended June 30, 2024, the Company reported net
sales of ¥10,132 million (up 7.5% year on year), operating profit of ¥1,222 million (up 30.1% year on year),ordinary profit of ¥1,223 million (up 30.8% year on year), and profit of ¥836 million (up 31.7% year on year).
(2) Overview of Financial Position
1) Status of assets, liabilities, and net assets(Assets)
Current assets as of June 30, 2024 stood at ¥21,746 million. This mainly comprises cash and deposits of¥16,657 million, deposits paid of ¥3,641 million and accounts receivable - trade, and contract assets of ¥809
million. Cash and deposits include ¥11,427 million of receiving agency deposits in money collection business,
which will be transferred to operators up to the predetermined date of transfer in the following month. In addition,
there is a balance of ¥552 million offset by a deposit to a trust account related to remittance services, and thisamount corresponds to the amount remitted to business partners on specified dates. Such deposits are temporarily
held by the Company. Meanwhile, non-current assets amounted to ¥5,394 million. This mainly comprises
buildings of ¥2,015 million, land of ¥1,602 million, guarantee deposits of ¥948 million, and software of ¥340
million. As a result, total assets amounted to ¥27,141 million.
(Liabilities)
Current liabilities as of June 30, 2024 stood at ¥16,917 million. This mainly comprises receiving agency
deposits of ¥11,427 million and deposits received of ¥4,250 million. Meanwhile, non-current liabilities amounted
to ¥1,844 million. This mainly comprises long-term borrowings of ¥1,600 million. As a result, total liabilities
amounted to ¥18,767 million.

2

(Net assets)
Net assets as of June 30, 2024 stood at ¥8,378 million. This mainly comprises shareholders’ equity of ¥8,272
million.
(Reference) Net cash and deposits (net balance of cash and deposits after offsetting deposits related to collection
agency business and deposits related to remittance services)(Million yen)
As of June 30, 2023

As of June 30, 2024

(A) Cash and deposits

14,07016,657(B) Receiving agency deposits

10,441

11,427(C) Deposits related to remittanceservices73552(A)-(B)-(C) Cash and deposits, net

3,556

4,677

2) Status of cash flows
Cash and cash equivalents (the “funds”) at the end of the current fiscal year stood at ¥16,657 million.
The status of cash flows at the end of the current fiscal year and their contributing factors are as follows.
(Cash flows from operating activities)
Funds provided in operating activities for the fiscal year ended June 30, 2024 amounted to ¥2,644 million.
The main factors for the increase are profit before income taxes of ¥1,224 million, recording of depreciation of¥314 million and an increase in receiving agency deposits of ¥986 million, while the main factor for the decreaseis an increase in trade receivables of ¥204 million.
(Cash flows from investing activities)
Funds provided in investing activities for the fiscal year ended June 30, 2024 amounted to ¥333 million.
The main factor for the increase is proceeds from refund of leasehold and guarantee deposits of ¥510 million,
while the main factors for the decrease are purchase of investment securities of ¥101 million and purchase ofintangible assets of ¥60 million.
(Cash flows from financing activities)
Funds used in financing activities for the fiscal year ended June 30, 2024 amounted to ¥392 million. The
main factors for the decrease are dividends paid of ¥317 million and repayments of long-term borrowings of ¥75
million.
(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Years
We plan for the dividend payout ratio to be 50% or more and intend to provide a dividend of ¥22.15 pershare for the current fiscal year. In addition, for the next fiscal year the Company forecasts a dividend of ¥26.46
per share due to the likelihood of ongoing improvement in financial results.

3

2. Management Policy
Basic policy and strategy for the fiscal year ended June 30, 2024
The online payment market, the Company’s business domain, is expected to continue achieving acertain level of growth in the future, but we believe that the expansion of electronic payment will lead tothe commoditization of payments themselves, and we are making efforts to expand and improve cloudservices that support DX for businesses as a concrete form of payment plus alpha.
A.

“Smartphone payment service,” Shiharai-Hisho and our response to electronic money during the shift topaperless and cashless
Shiharai-Hisho, which carries out payments via bank-account-linked smartphones, is newly
connected to Mizuho Bank in February 2024 and has completed connections with major city banks, andaccordingly increased convenience. In addition to payments for electric power companies, the number ofpayments for local taxation and public utility charges that can be made using Shiharai-Hisho is also
increasing, especially in areas where there are many partner banks. Aside from that, we are deploying
seamless linkage of Shiharai-Hisho with our cloud services as described in B below, which are Bus Mori!,
ALTAIR triple star, and ekaiin.com, as well as preparing to offer embedded electronic money, as we expect
a trend of the inclusion of electronic money in our own services in the future. We will work on evolving
them into services that link with the cloud services of transportation operations.

B.

Actively promoting IT projects for transportation operators
Launched in August 2016, the smartphone electronic ticketing application Bus Mori! has expanded
the types of electronic ticket to include single-trip tickets, coupon tickets, commuter passes, unlimited ride
passes, and discount passes, and now handles 646 routes of bus and rail. Taking the COVID-19 pandemic
opportunity, the use of smartphone commuter passes and smartphone coupon tickets, which can bepurchased non-face-to-face, is continuously expanding. ALTAIR triple star, the cloud service for transportbusiness operators, which we have been developing since 2017, is an all-in-one total cloud service that can
automate a series of operations, from inventory and timetable management for rides and events, ticket
reservation, purchase, issuance, and authentication, to sales information aggregation and settlement
processing. The use of ALTAIR triple star has been expanding as a MaaS platform in regions throughout
Japan and as an effective tool for promoting DX in transport-related companies. June 2024 saw the launchof “Surutto QRtto,” a server-type QR ticket service that can be used on major private railways in the Kansai
region. In the case of MaaS, which is used jointly by multiple operators and the use of it is expanding, ourextensive knowledge and experience in the labor-intensive settlement operations is a major advantage.

C.

Current status of WELLNET’s key products, Multi Payment Services and Money Transfer Services
Multi Payment Services and Money Transfer Services for non-face-to-face payment are expected tohave the potential for continued growth. Various operators have been adopting the Company’s payment
services for over 30 years, and the Company aims to continue to enhance payment functions that contributeto increase in convenience for both operators and consumers. The Company promotes the development of
payments and more services, and we have a significant advantage because of our payment infrastructure.
In September 2022, the smartphone barcode payment service stanp was adopted by Family Mart. The
number of customers using stanp is steadily increasing as it improves convenience by allowing customers
to make payments in real time by just directly scanning a barcode shown on their smartphone at the store
cash registers. Going forward, the Company will actively promote sales activities to have the service
adopted at convenience stores other than Family Mart as well.

4

D.

Activities contributing to local communities
We recognize that our business of “IT utilization and DX” itself supports the shift to an
environmentally friendly business model, and that business expansion itself contributes to global
environmental conservation.
As part of our social contribution, we are providing support to many students through our WELLNET
Scholarship, established to help financially struggling students at colleges of technology in Hokkaido.
Approximately ¥98 million in scholarships was paid to a total of 902 students until the fiscal year 2023,
directly contributing to zero students dropping out due to economic difficulties. We will continue these
activities moving forward.
In addition, with the aim of contributing to the promotion of local sports, the Company is participatingin the “Scrum Sapporo” initiative promoted by the Hokkaido All Olympians, and speed skater Masaya
Yamada, who is expected to compete in the Olympics, has been active as an employee of the Company
since April 2023. In November 2023, he won gold medals in the men’s 1000m and 1500m races at the“ISU World Cup Speed Skating 2023/2024 #1” held at Meiji Tokachi Oval in Obihiro City, Hokkaido,
achieving the feat of being the first Japanese to do so. Also, his younger brother, Kazuya Yamada, who
won bronze medals in the men’s 1000m and 1500m races at the “ISU World Cup Speed Skating 2023/2024#3” held in Stavanger, Norway in December 2023, became an employee of the Company in April 2024.
We are supporting both brothers’ endeavors to participate in the Olympics and win medals. We intend toactively utilize ekaiin.com to support athletes and also boost the promotion of sports through theCompany’s IT services.
Our new Sapporo head office, which was completed in 2021, received the platinum rank of WELL
Certification in September 2022 for the office design that considers the health and working environmentof our employees. The WELL Certification is an advanced initiative that began in 2014 in the U.S. toevaluate and certify spaces including buildings and offices from the standpoint of human health.
Furthermore, in August 2023, our Sapporo head office won the “36th Nikkei New Office Awards,” asystem that awards creativity in office design. These initiative represents an investment in our employees
as human capital, and we also believe that it will lead to increased corporate value in the form of increased
productivity and workstyle reforms.

E.

Performance forecast and shareholder returns
With regard to the financial results forecast for the fiscal year ending June 30, 2025, the Company
has made the following forecasts enlisting expectations that forecast of financial results will increase
compared to results of the fiscal year ended June 30, 2024, primarily given that performance of high valueadded provision of services has been favorable due to the recovery trend from the downturn caused by the
COVID-19 pandemic.
* Only sales figures have been revised from the medium-term management plan, and the reasons forthis are as stated above.
(Million yen)
Net sales

Ordinary profit

Profit12,000

1,500

1,000

The year-end dividend for the fiscal year ended June 30, 2024 has been determined to be ¥22.15
based on the basic policy for sharing profits with shareholders (dividend payout ratio of 50% or more). In
addition, the Company forecasts a year-end dividend of ¥26.46 for the fiscal year ending June 30, 2025.
* The financial results forecast and dividends forecast above are based on certain assumptions judged to bereasonable based on information available to the Company at the time of the announcement of thisdocument. Actual business performance and dividends may differ from the forecasts due to various factors
5that may arise in the future. This forecast is based on the expectation that the movement of people,
especially in Japan, will recover to a certain degree, and will be greatly affected by the degree of recovery.

3. Basic Principle on the Selection of Accounting Standards
The Company’s policy, for the time being, is to prepare the financial statements in accordance with J-GAAP, inconsideration of the comparability of financial statements over time as well as between companies.
With respect to the adoption of IFRS, the Company will make decision as appropriate, in view of thecircumstances both in Japan and abroad.

6

4. Financial Statements and Significant Notes(1) Balance Sheet(Thousands of yen)
As of June 30, 2023
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade, and contract assets
MerchandiseWork in process
Supplies
Prepaid expenses
Deposits paid
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Trademark right
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Investments in capital
Guarantee deposits
Prepaid pension costs
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

7

As of June 30, 2024

14,070,800
604,434
3,532
1,313
898
44,5133,449,042
581,691
18,756,227

16,657,168
809,182
2,202–
600
77,875
3,641,155
558,398
21,746,583

2,267,266(171,257)
2,096,009
47,515(8,313)39,201
870
(661)
208
592,007(457,827)
134,180
1,602,943
15,803
3,888,345

2,272,497(256,611)
2,015,886
47,515(16,229)
31,285870(869)
0604,371(463,697)
140,673
1,602,943–
3,790,788

671
443,296245
444,212474
340,128226
340,829

52,307
131,850
68,691
1,455,915
4,354
89,0881,413
1,803,621
6,136,180
24,892,407

152,819
23,55356,050948,732
1,067
79,5351,414
1,263,173
5,394,791
27,141,374

(Thousands of yen)
As of June 30, 2023
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Contract liabilities
Deposits received
Receiving agency deposits
Provision for bonuses
Provision for point card certificates
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for share awards
Asset retirement obligations
Long-term accounts payable - other
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Share acquisition rights
Total net assets
Total liabilities and net assets

8

As of June 30, 2024

440,937
75,000191,215
34,540223,285935
3,584,744
10,441,061
20,697
16
93,143
15,105,577

483,478
125,000
249,700
44,158241,344715
4,250,235
11,427,285
24,963
1
70,957
16,917,841

1,725,000
77,221
13,432
119,007
25,222
1,959,883
17,065,461

1,600,000
83,61015,941
119,007
26,042
1,844,600
18,762,442

667,782

667,7823,509,216
3,509,216

3,509,216
3,509,216

22,01022,0103,160,000
1,082,331
4,264,341(703,349)
7,737,990

3,160,000
1,584,471
4,766,481(671,118)
8,272,361

7,791
7,791
81,164
7,826,946
24,892,407

4,185
4,185
102,385
8,378,932
27,141,374

(2) Statement of Income

Fiscal year ended
June 30, 2023
(from July 1, 2022
to June 30, 2023)
9,424,198
7,572,518
1,851,679
912,346939,332

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Interest on securities
Dividend income
Gain on forfeiture of unclaimed dividends
Rental income
Subsidy income
Business cooperation fee
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share acquisition rights issuance costs
Loss on investments in investment partnerships
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on reversal of share acquisition rights
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit9(Thousands of yen)
Fiscal year ended
June 30, 2024
(from July 1, 2023
to June 30, 2024)
10,132,265
7,992,238
2,140,026
917,659
1,222,366

43
504
20
1,164
925
2,467
1,800
995
7,920

56
–
105
437
600
2,351
1,800
968
6,318

4,902
2,712
2,570
900
328
11,414
935,838

3,535
–
–
1,197
–
4,733
1,223,951

1,281
88,39989,680208–
208

63,891
63,891
961,627
316,718
9,405
326,123
635,504––
1,224,160
376,241
11,128387,369
836,790

(Schedule of cost of sales)
Schedule of cost of sales
Fiscal year ended June 30, 2023
(from July 1, 2022 to June 30, 2023)
Note
no.

Type
I.

Composition(%)

Amount (Thousand yen)

Fiscal year ended June 30, 2024
(from July 1, 2023 to June 30, 2024)
Composition(%)

Amount (Thousand yen)

Cost of merchandise sold1. Beginning merchandise
2. Cost of purchased
merchandise
Total

2,925

3,532

28,73628,043

3. Ending merchandise

3,532

31,661

31,57628,1290.4

II. Labor cost

497,129

III. Expenses

29,373

0.4

6.5

549,7966.8

6,960,968

91.1

7,266,653

90.1

155,737

2.0

223,357

2.8

7,641,965

100.0

8,069,180

100

IV. Subcontract expenses
Total

2,202

Transfer to other account

68,59878,254

Beginning work-in-process

465

1,313

Ending work-in-process
Cost of sales

1,313

–

7,572,518

7,992,238(Notes) *1. Cost of sales is calculated based on the job-order cost system.
*2. Details of the expenses are as follows.
(Thousand yen)
Item

Fiscal year ended June 30, 2023

Fiscal year ended June 30, 2024

Receiving agency fees

6,081,345

6,387,325

Invoice postage fees

202,053

225,000

Depreciation

336,086

270,453

Other

341,484

383,873

6,960,968

7,266,653

Total*3. Details of the transfer to other account are as follows.
(Thousand yen)
Item

Fiscal year ended June 30, 2023

SoftwareResearch and development
expenses
Total

10

Fiscal year ended June 30, 2024

50,59055,861

18,00722,39368,59878,254

(3) Statement of Changes in Equity
Fiscal year ended June 30, 2023 (from July 1, 2022 to June 30, 2023)(Thousands of yen)
Shareholders’ equity
Capital surplus
Share capital

Retained earnings
Other retained earnings
Retainedearnings brought
forward

Total retained
earnings

724,6113,906,621

Dividends of surplus(266,378)(266,378)

Profit635,504

635,504(11,405)(11,405)

Balance at beginning of
period667,782

Legal capitalsurplus

Total capitalsurplus

Legal retained
earnings

3,509,216

3,509,216

22,010Generalreserve
3,160,000

Changes during period

Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period

–

–

–

–

–

357,719357,719

667,7823,509,216

3,509,216

22,0103,160,000

1,082,331

4,264,341

Shareholders’ equity
TreasurysharesBalance at beginning of
period(729,679)

Total
shareholders’equity7,353,940

Valuation and translation
adjustments
Valuation
Total valuationdifference onand translation
available-foradjustments
sale securities
1,307

1,307

Share
acquisitionrights55,555

Total net
assets7,410,803

Changes during period
Dividends of surplus(266,378)(266,378)

Profit635,504

635,504

14,924

14,924

Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
period26,32926,329Balance at end of period(703,349)

6,484

6,484

25,60832,092

384,049

6,484

6,484

25,608416,1427,737,990

7,791

7,791

81,164

7,826,946

11

Fiscal year ended June 30, 2024 (from July 1, 2023 to June 30, 2024)(Thousands of yen)
Shareholders’ equity
Capital surplus
Share capital

Retained earnings
Other retained earnings
Retainedearnings brought
forward

Total retained
earnings

1,082,331

4,264,341

Dividends of surplus(317,847)(317,847)

Profit836,790

836,790(16,803)(16,803)

Balance at beginning of
period667,782

Legal capitalsurplus

Total capitalsurplus

Legal retained
earnings

3,509,216

3,509,216

22,010Generalreserve
3,160,000

Changes during period

Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period

–

–

–

–

–

502,140

502,140

667,7823,509,216

3,509,216

22,0103,160,000

1,584,471

4,766,481

Shareholders’ equity
TreasurysharesBalance at beginning of
period(703,349)

Total
shareholders’equity7,737,990

Valuation and translation
adjustments
Valuation
Total valuationdifference onand translation
available-foradjustments
sale securities
7,791

7,791

Share
acquisitionrights81,164

Total net
assets7,826,946

Changes during period
Dividends of surplus(317,847)(317,847)

Profit836,790

836,790

15,427

15,427

Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
period32,23032,230

Balance at end of period(671,118)(3,605)(3,605)

21,221

17,615534,371(3,605)(3,605)

21,221

551,986

8,272,361

4,185

4,185

102,385

8,378,932

12

(4) Statement of Cash Flows

Fiscal year ended
June 30, 2023
(from July 1, 2022
to June 30, 2023)
Cash flows from operating activities
Profit before income taxes
Depreciation
Gain on reversal of share acquisition rights
Interest and dividend income
Interest expenses
Loss (gain) on valuation of investment securities
Loss (gain) on investments in investment partnerships
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in deposits paid
Increase (decrease) in deposits received
Increase (decrease) in receiving agency deposits
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from withdrawal of time deposits
Proceeds from sale of property, plant and equipment
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from redemption of investment securities
Purchase of investment securities
Proceeds from share of profits on investments in capital
Proceeds from refund of leasehold deposits
Payments of leasehold and guarantee deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Dividends paid
Proceeds from issuance of share acquisition rights
Repayments of long-term borrowings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

13(Thousands of yen)
Fiscal year ended
June 30, 2024
(from July 1, 2023
to June 30, 2024)

961,627404,680(1,281)(567)
4,902
63,891
900(66,569)(1,961)8,817(811,312)
727,310
270,489(196,203)
1,364,723
8,063(4,871)(253,790)
1,114,125

1,224,160
314,549
(27)
(161)
3,535
1,197
–
(204,747)
2,941
42,541(192,113)
665,491986,223
182,805
3,026,397
161(2,618)(379,238)
2,644,701

80,021
251,561(103,895)(119,327)
200,000(40,000)
6,000
36,947(42,915)
268,392––(17,948)(60,958)–(101,388)
7,000
510,320(3,137)
333,887(266,387)
5,400(100,000)(360,987)
1,021,530
13,049,269
14,070,800(317,221)–(75,000)(392,221)2,586,368
14,070,800
16,657,168

(5) Notes to Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Additional information)(Employee Stock Ownership Plan)
In July 2010, we introduced the Employee Stock Ownership Plan (J-ESOP; hereafter, “the program”) withthe aim of providing employees with benefits, raising their motivation to boost the share price with higher
earnings, and sharing profits with shareholders and employees.
(1) Overview of the program
The program grants retiring employees shares in the Company based on the Share Granting Rules
established in advance by the Company.
The Company gives employees points based on their contributions to earnings and their years of service
and grants them shares in the Company equivalent to their cumulative points when they retire. These sharesare acquired, including the future portion, based on an amount entrusted in advance, and managed separately
as assets in trust.
With the introduction of the program, employees’ motivation to work and their interest in share prices
rise, and it is also expected to help attract talented employees.
(2) We have applied the “Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees, etc., through Trusts” (PITF No. 30, March 26, 2015), but accounting treatment is based on
the method previously adopted.
(3) Matters related to Company shares held by the trusti) The book value in the trust was ¥88,703 thousand at the end of the previous fiscal year and ¥88,240
thousand at the end of the current fiscal year. The Company shares held by the trust are posted astreasury shares under shareholders’ equity.
ii) The number of outstanding shares was 191,600 shares at the end of the previous fiscal year and
190,600 shares at the end of the current fiscal year. The average number of shares during the fiscal
year was 191,600 shares in the previous fiscal year and 190,750 shares in the current fiscal year. The
number of shares at the end of the fiscal year and the average number of shares during the fiscal year
are not included in the treasury shares excluded when calculating per share information.
(Notes to balance sheet)*1 Amounts of receivables and contract assets arising from contracts with customers from among accounts
receivable - trade, and contract assets are as follows.
(Thousand yen)Accounts receivable - trade
Contract assets, net

As of June 30, 2023

As of June 30, 2024

561,663
42,771

635,823
173,359*2 Receiving agency deposits
Receiving agency deposits are deposits related to money collection business, and an equivalent amount isincluded in the deposits.

14

(Notes to statement of income)*1 Approximate ratio of expenses included in selling expenses was 7% in the previous fiscal year, and 6% in thefiscal year under review. Approximate ratio of expenses included in general and administrative expenses was
93% in the previous fiscal year, and 94% in the fiscal year under review. The major components and amounts ofselling, general and administrative expenses are as follows.
(Thousand yen)
Fiscal year ended June 30, 2023
Fiscal year ended June 30, 2024
(from July 1, 2022
(from July 1, 2023
to June 30, 2023)
to June 30, 2024)
Advertising expenses
12,00812,539Directors’ compensations
59,23662,365
Salaries, allowances and bonuses
256,573
273,073
Rent expenses
58,99049,123
Depreciation
68,59344,096
Commission fees
94,679106,401*2 Total research and development expenses included in general and administrative expenses(Thousand yen)
Fiscal year ended June 30, 2024
(from July 1, 2023 to June 30, 2024)
22,393Fiscal year ended June 30, 2023
(from July 1, 2022 to June 30, 2023)
19,892*3 Impairment losses

Fiscal year ended June 30, 2023 (from July 1, 2022 to June 30, 2023)
There is no relevant information.
Fiscal year ended June 30, 2024 (from July 1, 2023 to June 30, 2024)
There is no relevant information.
(Notes to statement of changes in equity)
Fiscal year ended June 30, 2023 (from July 1, 2022 to June 30, 2023)
1. Class and total number of issued shares and class and total number of treasury shares
Number of shares at
beginning of period

Increase during
period(Shares)Number of shares at
end of period

Decrease during
periodIssued shares
Common shares
Total

19,400,000––

19,400,000

19,400,000––

19,400,000

739,585–

22,510717,075

739,585–

22,510717,075

Treasury shares
Common shares(Notes 1, 2)
Total(Notes)1. The decrease in treasury shares of common shares by 22,510 shares of common shares is due to the decreaseof 22,510 shares due to the granting of stock compensation with restrictions on transfers.

15

2. Following the introduction of the Employee Stock Ownership Plan (J-ESOP), Custody Bank of Japan, Ltd.
(Trust Account E) purchased 1,000 shares of the Company on October 25, 2010. The number of treasury
shares stated herein includes 191,600 shares at beginning of period and 191,600 shares at end of period in
the Company held by the Trust Account E as of June 30, 2023.

2. Matters related to stock acquisition rights

Type

Submitting
company

Class ofshares for the
Schedule of stock
purpose of
acquisition rights
stockacquisitionrights
1st series stockacquisition rights
in the form of–stock options as
stock-based
compensation
2nd series stockacquisition rights
in the form of–stock options as
stock-based
compensation
3rd series stockacquisition rights
in the form of–stock options as
stock-based
compensation
4th series stockacquisition rights
in the form of–stock options as
stock-based
compensation
1st series stockacquisition rights
in the form of–
qualified stock
options
5th series stockacquisition rights
in the form of–stock options as
stock-based
compensation
6th series stockacquisition rights
in the form of–stock options as
stock-based
compensation
3rd series stockacquisition rights
in the form of–
performancebased stock
options
Total–

Number of shares for the purpose of stock acquisition rights
Number ofshares at
beginning of
periodIncreaseduring period

Decreaseduring period

Number ofshares at endof period

Balance at theend of period(Thousand
yen)

–

–

–

–

6,946

–

–

–

–

6,075

–

–

–

–

5,795

–

–

–

–

3,666

–

–

–

–

22,447

–

–

–

–

4,410

–

–

–

–

5,386

–

–

–

–

26,435––––

81,16416

3. Dividends(1) Cash dividends paid
(Resolution)

Class ofsharesTotal cash
dividends(Thousand yen)

Dividend per share(Yen)

Record date

Effective dateAugust 12, 2022
Board of Directors
meeting

Commonshares266,378

14.13

June 30, 2022

September 22,
2022(Note)

Total amount of dividend includes dividend paid to Custody Bank of Japan, Ltd. (Trust Account E) basedon the Employee Stock Ownership Plan (J-ESOP) scheme.

(2) Dividends for which the record date falls in the fiscal year under review, but the effective date falls in thefollowing fiscal year
(Resolution)

Class ofsharesTotal cash
dividends(Thousand yen)

Source ofdividend

Dividend
per share(Yen)

Record date

Effective
date

August 14, 2023
Board of Directors
meeting

Commonshares317,847

Retainedearnings

16.84

June 30,
2023

September
22, 2023(Note)

Total amount of dividend includes dividend paid to Custody Bank of Japan, Ltd. (Trust Account E) basedon the Employee Stock Ownership Plan (J-ESOP) scheme.

Fiscal year ended June 30, 2024 (from July 1, 2023 to June 30, 2024)
1. Class and total number of issued shares and class and total number of treasury shares
Number of shares at
beginning of period

Increase during
period(Shares)Number of shares at
end of period

Decrease during
periodIssued shares
Common shares
Total

19,400,000––

19,400,000

19,400,000––

19,400,000

717,075–

28,159688,916

717,075–

28,159688,916

Treasury shares
Common shares(Notes 1, 2)
Total(Notes)1. The decrease in treasury shares of common shares by 28,159 shares of common shares is due to the decreaseof 27,159 shares owing to the granting of stock compensation with restrictions on transfers and the decreaseof 1,000 shares owing to the granting of shares under the Japan Stock Ownership Plan (J-ESOP).
2. Following the introduction of the Employee Stock Ownership Plan (J-ESOP), Custody Bank of Japan, Ltd.
(Trust Account E) purchased 1,000 shares of the Company on October 25, 2010. The number of treasury
shares stated herein includes 191,600 shares at beginning of period and 190,600 shares at end of period in
the Company held by the Trust Account E as of June 30, 2024.

17

2. Matters related to stock acquisition rights

Type

Submitting
company

Class ofshares for the
Schedule of stock
purpose of
acquisition rights
stockacquisitionrights
1st series stockacquisition rights
in the form of–stock options as
stock-based
compensation
2nd series stockacquisition rights
in the form of–stock options as
stock-based
compensation
3rd series stockacquisition rights
in the form of–stock options as
stock-based
compensation
4th series stockacquisition rights
in the form of–stock options as
stock-based
compensation
1st series stockacquisition rights
in the form of–
qualified stock
options
5th series stockacquisition rights
in the form of–stock options as
stock-based
compensation
6th series stockacquisition rights
in the form of–stock options as
stock-based
compensation
3rd series stockacquisition rights
in the form of–
performancebased stock
options
Total–

Number of shares for the purpose of stock acquisition rights
Number ofshares at
beginning of
periodIncreaseduring period

Decreaseduring period

Number ofshares at endof period

Balance at theend of period(Thousand
yen)

–

–

–

–

6,946

–

–

–

–

6,075

–

–

–

–

5,795

–

–

–

–

3,666

–

–

–

–

22,447

–

–

–

–

4,410

–

–

–

–

5,386

–

–

–

–

47,657––––102,38518

3. Dividends(1) Cash dividends paid
(Resolution)

Class ofsharesTotal cash
dividends(Thousand yen)

Dividend per share(Yen)

Record date

Effective dateAugust 14, 2023
Board of Directors
meeting

Commonshares317,847

16.84

June 30, 2023

September 22,
2023(Note)

Total amount of dividend includes dividend paid to Custody Bank of Japan, Ltd. (Trust Account E) basedon the Employee Stock Ownership Plan (J-ESOP) scheme.

(2) Dividends for which the record date falls in the fiscal year under review, but the effective date falls in thefollowing fiscal year
(Resolution)

Class ofsharesTotal cash
dividends(Thousand yen)

Source ofdividend

Dividend
per share(Yen)

Record date

Effective
date

August 14, 2024
Board of Directors
meeting

Commonshares418,672

Retainedearnings

22.15

June 30,2024

September
26, 2024(Note)

Total amount of dividend includes dividend paid to Custody Bank of Japan, Ltd. (Trust Account E) basedon the Employee Stock Ownership Plan (J-ESOP) scheme.

(Notes to statement of cash flows)*Relationship between “Cash and cash equivalents at end of period” and account items listed in the Balance Sheet
Fiscal year ended June 30, 2023
(from July 1, 2022 toJune 30, 2023)
14,070,800
14,070,800(Thousand yen)
Fiscal year ended June 30, 2024
(from July 1, 2023 toJune 30, 2024)
16,657,168
16,657,168

Cash and deposits
Cash and cash equivalents(Note)Cash and cash equivalents include ¥10,441,061 thousand and ¥11,427,285 thousand for the fiscal years

ended June 30, 2023 and 2024, corresponding to receiving agency deposits.
(Notes on segment information, etc.)[Segment information]
Fiscal year ended June 30, 2023 (from July 1, 2022 to June 30, 2023)
Description is omitted because the Company operates in a single segment of payment and authentication business.
Fiscal year ended June 30, 2024 (from July 1, 2023 to June 30, 2024)
Description is omitted because the Company operates in a single segment of payment and authentication business.
[Related information]
Fiscal year ended June 30, 2023 (from July 1, 2022 to June 30, 2023)
1. Information by product and service
Description is omitted because the Company operates in a single segment of payment and authentication business.

19

2. Information by region(1) Net sales
Description is omitted because net sales to external customers in Japan account for more than 90% of total net
sales stated in the Statement of Income.
(2) Property, plant and equipment
Description is omitted because the amount of property, plant and equipment located in Japan exceeds 90% of theproperty, plant and equipment on the Balance Sheet.
3. Information by major customer
Customer name

Net sales

Amazon Japan G.K.

2,397,340(Thousand yen)
Related segment
Payment andauthentication

Fiscal year ended June 30, 2024 (from July 1, 2023 to June 30, 2024)
1. Information by product and service
Description is omitted because the Company operates in a single segment of payment and authentication business.
2. Information by region(1) Net sales
Description is omitted because net sales to external customers in Japan account for more than 90% of total net
sales stated in the Statement of Income.
(2) Property, plant and equipment
Description is omitted because the amount of property, plant and equipment located in Japan exceeds 90% of theproperty, plant and equipment on the Balance Sheet.
3. Information by major customer
Customer name

Net sales

Amazon Japan G.K.

2,173,489

DEGICA Co., Ltd.

1,261,106(Thousand yen)
Related segment
Payment andauthentication
Payment andauthentication[Information on impairment of non-current assets by reported segment]
Fiscal year ended June 30, 2023 (from July 1, 2022 to June 30, 2023)
Segment information is omitted because the Company operates in the single segment of payment andauthentication business, and it is immaterial in terms of disclosure information.
Fiscal year ended June 30, 2024 (from July 1, 2023 to June 30, 2024)
Segment information is omitted because the Company operates in the single segment of payment andauthentication business, and it is immaterial in terms of disclosure information.

20

[Information on amortization and unamortized balance of goodwill by reported segment]
Fiscal year ended June 30, 2023 (from July 1, 2022 to June 30, 2023)
There is no relevant information.
Fiscal year ended June 30, 2024 (from July 1, 2023 to June 30, 2024)
There is no relevant information.
[Information on gain on bargain purchase by reported segment]
Fiscal year ended June 30, 2023 (from July 1, 2022 to June 30, 2023)
There is no relevant information.
Fiscal year ended June 30, 2024 (from July 1, 2023 to June 30, 2024)
There is no relevant information.
(Per share information)(Yen)
Fiscal year ended June 30, 2023
(from July 1, 2022 to June 30, 2023)

Fiscal year ended June 30, 2024
(from July 1, 2023 to June 30, 2024)

Net assets per share410.38437.87

Basic earnings per share

33.68

44.29

Diluted earnings per share

33.44

43.95

(Notes)

1. With respect to the number of treasury shares of common shares for the purpose of calculating net
assets per share, as well as the average number of treasury shares of common shares during the period
for the purpose of calculating basic earnings per share, the number of treasury shares does not include
the number of shares of the Company held by Custody Bank of Japan, Ltd. (Trust Account E).
2. The basis of calculation of basic earnings per share and diluted earnings per share is as follows:
Fiscal year ended June 30, 2023
(from July 1, 2022 to June 30, 2023)

Fiscal year ended June 30, 2024
(from July 1, 2023 to June 30, 2024)

Basic earnings per share
Profit (Thousand yen)

635,504

836,790––

635,504

836,790

18,866,323

18,891,592––

Increase in number of shares of common shares

139,031

149,981(Stock acquisition rights included in the above)(139,031)(149,981)

Overview of residual shares not included in
calculation of diluted earnings per share due tolack of dilutive effect

One class of stock acquisitionrights (59,700 shares of commonshares)

One class of stock acquisitionrights (59,700 shares of commonshares)Amount not attributable to commonshareholders (Thousand yen)
Profit available to common shares (Thousandyen)
Average number of shares of common shares
during the period (Shares)
Diluted earnings per share
Adjustment to profit (Thousand yen)21

(Significant subsequent events)(Purchase of treasury shares)
The Company resolved at the meeting of the Board of Directors held on August 14, 2024 on matters relating
to the purchase of its treasury shares in accordance with the provisions of Article 156, Paragraph 3 of theCompanies Act, as applied mutatis mutandis pursuant to the provisions of Article 165, Paragraph 3 of the said
Act, as follows.
1. Reason for the purchase of treasury shares

The Company shall purchase treasury shares to provide
further return of profits to shareholders. Furthermore, theconditions for the exercising of rights for the 3rd series
stock acquisition rights in the form of performance-based
stock options are expected to be achieved and theshortfall in the treasury shares held will be replenished
not by a new share issuance but rather by this purchase oftreasury shares.

2. Details of matters concerning the purchase(1) Type of shares to be purchased(2) Total number of shares that can be purchased(3) Total amount of the purchase price of the shares(4) Purchase period(5) Method of purchase

Common shares of the Company
Up to 500,000 shares
Up to ¥300 million
From August 15, 2024 to September 30, 2024
Market purchase at the Tokyo Stock Exchange

225. Others(1) Changes to Directors• Resigning Director (Audit and Supervisory Committee Member)
Sachio Higashihara
Director (Audit and Supervisory
Committee Member)(current position)• Candidates for new election as Director
Name
Sachio Higashihara
Director
Yoji Chujo
Yumi Tyrrel Yamamoto

New position

Director
Director (Audit and Supervisory
Committee Member)• Scheduled date of resignation or assuming office
September 25, 2024
(2) Others
There is no relevant information.

23

Current position
Director (Audit and Supervisory
Committee Member)
Advisor–