Non-Consolidated Financial Results
for the Nine Months Ended January 31, 2022
[Japanese GAAP]
March 7, 2022
Company name: Asukanet Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 2438
URL: https://www.asukanet.co.jp
Representative: Yuji Matsuo, Representative Director & President
Contact: Kenya Kono, Senior Managing Director & CFO
Phone: +81-82-850-1200
Scheduled date of filing quarterly securities report: March 14, 2022
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Not scheduled(Amounts of less than one million yen are rounded down.)
1. Non-Consolidated Financial Results for the Nine Months Ended January 31, 2022
(May 1, 2021 to January 31, 2022)(1) Non-Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Nine months ended
January 31, 2022
January 31, 2021

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen

%

4,688
4,189

11.9
(15.5)

369
140

162.6
(78.3)

374
191

95.7
(70.6)

262
126

107.5
(72.5)

Basic earnings
per share

Diluted earnings per
share

Nine months ended
Yen
Yen
January 31, 2022
15.55
January 31, 2021
7.50
(Note) Diluted earnings per share is not presented as there were no potential shares.
(2) Non-Consolidated Financial Position
Total assets

Net assets

Million yen

6,611
As of January 31, 2022
6,465
As of April 30, 2021
(Reference) Equity: As of January 31, 2022: ¥5,948 million
As of April 30, 2021: ¥5,825 million

Equity ratio

Million yen

%

5,948
5,825

90.0
90.1

2. Dividends
1stquarter-end

2ndquarter-end

Yen

Yen

Annual dividends
3rdYear-endquarter-end

Fiscal year ended April 30, 2021
0.00
Fiscal year ending April 30, 2022
0.00
Fiscal year ending April 30, 2022
(Forecast)(Note) Revision to the forecast for dividends announced most recently: No

Total

Yen

Yen

Yen

-

7.00

7.00

7.00

7.00

3. Non-Consolidated Financial Results Forecast for the Fiscal Year Ending April 30, 2022
(May 1, 2021 to April 30, 2022)(% indicates changes from the previous corresponding period.)
Basic earnings
Net sales
Operating income
Ordinary income
Profitper share%

Million yen%

Yen

Full year
6,326
9.6
441
59.0
445
34.8
(Note) Revision to the financial results forecast announced most recently: Yes

Million yen% Million yen% Million yen

312

38.7

18.57

* Notes:(1) Accounting policies adopted specially for the preparation of quarterly financial statements: Yes(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
January 31, 2022: 17,464,000 shares
April 30, 2021: 17,464,000 shares2) Total number of treasury shares at the end of the period:
January 31, 2022: 657,657 shares
April 30, 2021: 615,057 shares
3) Average number of shares during the period:
Nine months ended January 31, 2022: 16,852,977 shares
Nine months ended January 31, 2021: 16,844,885 shares* These quarterly financial results are outside the scope of quarterly review procedures by a certified public
accountant or an audit corporation.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently
available to the Company and certain assumptions that the Company believes are reasonable, and actual results
may differ significantly from these forecasts due to a wide range of factors.

4. Overview of Business Results(1) Overview of Business Results during first three quarters
During the first 3 quarters of this consolidated fiscal year, a trend towards subsiding coronavirus infections was seen as a resultof progress in vaccination and other factors, and the government relaxed its restrictions on activities. However beginning from
December 2021, the arrival of the highly infectious Omicron strain started a new wave of growing infections. A new quasi-state of
emergency has been declared, and the future remains very uncertain.
Asukanet operates three business areas, each with different positioning and characteristics. They are (1) the funeral business,
which adds digital processing and remote output services for photos of the deceased to a funeral business that is largely unaffectedby economic trends, (2) the photo book business, which provides ideas for new photo output methods that allow users to create
complete photo collections beginning from just a single book, and (3) the aerial display business, which is utilizing unique, recentlydeveloped technologies aiming to create a new market and achieve dreams.
In January 2022, we invested in a venture fund which invests primarily in the key areas of XR and 3D.
Beginning from the fiscal year beginning May 1, 2021, the memorial design business was renamed the funeral business, thepersonal publishing business was renamed the photo book business, and the aerial imaging business was renamed the aerial display
business.
Following is an overview of the business results for each segment. The result figures for each segment include internal inter-segment
sales.
(Funeral business)
In this business, although funerals continue to be reduced in size as a result of the coronavirus pandemic, there was an increasein the holding of funerals themselves compared to the same period in the previous year. Under these conditions, we experienced
success with sales activities utilizing our strengths, such as stable image processing technologies and focus restoration tool, andthere was steady growth in new contracts for processing photos of the deceased. We also focused on expanding sales of our“tsunagoo” DX service for the funeral industry. As a result, there was a steady recovery in income from our primary business ofprocessing photos of the deceased, as well as a recovery in hardware sales and sales of frames, paper, and other supplies.
In terms of profit and loss, despite the increase of personnel cost and advertising expenses for participating exhibitions, there
was an increase in sales due to higher occupancy rate of operation center. These factors resulted in higher profits compared withthe same period in the previous fiscal year.
As a result, 3Q sales were 2,018,409 thousand yen (110.6% year-on-year), and 3Q segment income was 517,234 thousandyen (117.7% year-on-year).
(Photo book business)
This business operates AsukaBook for the professional photography market in Japan, and MyBook for the general Japanese
consumer market. We are also engaged in OEM supply of photo albums and photo prints based on photos that were taken withsmartphones.
In the professional photographers market, although our primary product of wedding photo albums continues to be severely
affected by wedding ceremony delays, miniaturization and other effects from the coronavirus pandemic, weddings withcoronavirus measures were held, primarily in rural areas, and the market recovered better than expected. Therefore, there wassteady growth in sales of photo albums for studios, and sales were higher than the same period in the previous fiscal year. In
addition, in order to adapt to the pandemic environment, we endeavored to revitalize the market by expanding our online
seminars, online and video streaming, and by enhancement of software and holding events such as “life-size photo contests”.
The general consumer market continues to face difficult conditions of lower chance and needs of photo book resulting fromthe effects of voluntary restrictions on activities such as traveling and events due to the coronavirus pandemic. The same trends
can be seen in “My Book” and OEM supply as well. Despite the difficult conditions, we worked to stimulate demand throughvarious campaigns, effective advertising, use of SNS, and other means. We also conducted promotions of seasonal products suchas calendars and graduation albums.
As a result, although sales for the general consumer market were difficult, we were able to steadily grow sales in theprofessional photographer market thanks to a faster recovery in the wedding market and strong sales of photo albums for studios.

In terms of profit and loss, we had a large increase in segment income by succeeding in controlling general expense, such asdelivery expense and rent, and in increasing operating rate of our own factory.
As a result, 3Q sales were 2,549,709 thousand yen (112.1% year-on-year), and 3Q segment income was 488,081 thousandyen (172.9% year-on-year).
(Aerial display business)
This business is aiming to create a market through new image and video expressions utilizing aerial imaging technologies.
We are developing, manufacturing, and selling both glass and plastic “ASKA3D plates” that utilize our original technologies toproject images in mid-air.
In the area of marketing, we are carrying out sales centered on our Marketing Division in Japan, and centered on our agents
overseas. In Japan, we have been steadily extending our record, including successful sales of products to manufacturers,
introduction by local governments, and demonstration tests at convenience stores and apartment buildings. Overseas, recovery
from the pandemic has been slower than initially expected, and although some restrictions on business activities remain, we
exhibited jointly with a North America dealer at the CES2022 IT exhibition, and provided support for product development andorder acquisition to meet the needs of each area where have dealers, specifically North America, the Middle East, and China.
In the areas of production and development, we are working to stabilize production and improve yield for both glass andplastic plates. In particular for glass plates, we accelerated cost reduction and production of larger-size plates with new
production equipment by outsourcing. At the technical development center, we are challenging ourselves to achieve internal
production of glass plates, and have expanded both floor space and the number of production machines. We are working forstable production of the basic small plates, and are also creating prototypes of large plates that are composed of multiple small
plates connected together.
In terms of sales, we achieved higher in sales due to the increase in overseas sales of glass ASKA3D plates.
In terms of profit and loss, segment loss increased due to the higher advertising expense by participating exhibitions, higher
R&D expenses and depreciation at a technical development center resulted in higher expenses during this quarter and higher
segment losses.
As a result, 3Q sales were 120,935 thousand yen (135.1% year-on-year), and 3Q segment loss was 238,835 thousand yen(compared to a loss of 190,836 thousand yen in the period of same quarters of the previous fiscal year).
As results of the above, sales were 4,688,999 thousand yen (111.9% compared to the same quarters of the previous fiscal year).
In terms of income, increase in segment income in the photo book business resulted ordinary income was 374,338 thousand yen(195.7% compared to the same quarters of the previous fiscal year) and net income was 262,120 thousand yen (207.5% comparedto the same quarters of the previous fiscal year).
(2) Overview of the Financial Status
Assets at the end of this third quarter increased by 146,138 thousand yen from the end of the previous fiscal year to reach
6,611,488 thousand yen. Despite a decrease in the cash and savings of 105,733 thousand yen, this was primarily due to an increaseof 88,092 thousand yen as an account receivables, an increase of 93,218 thousand yen as merchandise and products and an increaseof 50,815 thousand yen as investment securities.
Liabilities at the end of this third quarter increased by 23,718 thousand yen from the end of the previous fiscal year to reach
663,469 thousand yen. This was primarily due to an increase in corporate tax payable of 76,600 thousand yen, despite a decreaseof a provision for bonuses of 68,910 thousand yen.
Net assets at the end of this third quarter increased by 122,419 thousand yen from the end of the previous fiscal year to reach
5,948,018 thousand yen. This was primarily due to an increase of 262,120 thousand ye as a net income, despite a decrease of
117,942 thousand yen as a result of dividend payments.

(3) Future Outlook
Based on the results of the consolidated first 3 quarters of this fiscal year, we have revised the forecast that were announced onJune 11, 2021 in the results forecast for the fiscal year ending April 30, 2022. Please refer to the announcement on March 7, 2022
for your reference.

5．Financial Statements for the First Three Quarters(1) Balance sheet
Previous fiscal year end(ended April 30, 2021)
Asset
Current assets
Cash and deposits
Accounts receivable-trade
Merchandise and products
Work in progress
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings, net
Machinery and equipment, net
Land
Others, net
Total tangible fixed assets
Total intangible fixed assets
Total investments and other assets
Investment securities
OthersTotal investment and others
Total fixed assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-other
Income taxes payable
Provision for bonuses
OthersTotal current liabilities
Fixed liabilities
Provision for retirement benefits
OthersTotal fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Total capital surplus
Total retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets* () means negative figure(Units: 1,000s yen)
Current 3rd quarter end(ended Jan. 31, 2022)

1,815,088
775,996
220,028
99,80086,77077,730(4,218)3,071,195

1,709,355
864,088313,247
146,780
75,25944,522(4,341)
3,148,912

929,317467,896844,060
213,0812,454,356
224,742

917,979
522,983
844,060
183,035
2,468,060
221,741

533,204
181,849
715,054
3,394,153
6,465,349

584,020
188,753
772,773
3,462,575
6,611,488

163,342
146,716
15,400153,650
154,012633,121

160,827
153,258
92,00084,740167,163
657,990

5,351
1,277
6,628
639,750

5,351
127
5,479
663,469

490,300
614,322
4,981,556(265,577)
5,820,602

490,300
619,556
5,125,735(298,392)
5,937,199

4,997

10,8194,997
5,825,599
6,465,349

10,8195,948,018
6,611,488

(2) Profit and loss statement for the first three quarters

Net Sales
Cost of sales(unit:1000s yen)First three quarters of the previous First three quarters of the current
fiscal year
fiscal year
(May 1, 2021 – Jan 31, 2022)(May 1, 2020 – Jan 31, 2021)
4,189,007
4,688,999
2,278,324
2,422,870

Gross profit

1,910,682

2,266,128

Selling, general, and administrative expenses

1,769,998

1,896,687

Operating income

140,684

369,441

Non-operating income
Interest received
Dividends received
Commissions received
Insurance cancellation refund
Subsidy income
Foreign exchange profit
Gain on forfeiture of unclaimed dividends
Others

478
1,275
222
32,60014,630
―
1,099
1,207

429
1,200
239
―
―
1,660
1,007
476

51,513

5,013

―
948

116
―

948

116

Total non-operating income
Non-operating expenses
Expense for acquisition of treasury stock
Foreign exchange losses
Total non-operating expenses
Ordinary income

191,249374,338

Extraordinary income
Income from sales of fixed assets

329―

Total extraordinary income

329―

Extraordinary losses
Loss from sales of fixed assets
Loss from disposal of fixed assets

―
3,047

708
316

3,047

1,024

Net income before taxes

188,530

373,313

Income taxes

62,219111,192

Net income

126,311

262,120

Total extraordinary losses

[Segment information]
Cumulative first three quarters of the previous fiscal year (May 1, 2020 – Jan. 31, 2021)
Information related to the amounts of sales, income, and loss for each reporting segment(Units: 1,000s yen)
Reporting segment
Adjustments

Amountrecorded in
profit and loss
statement

4,189,007―

4,189,007

630

630

(630)

―

2,274,816

89,521

4,189,637(630)

4,189,007

282,227(190,836)

530,911(390,227)

140,684

Funeral businessPhoto bookbusiness

Aerialdisplay business

1,825,298

2,274,816

88,891――

1,825,298
439,520

Total

Sales
Sales to outside
customers
Inter-segment internalsales and transfers
Total
Segment income (loss)* () means negative figure
Cumulative first three quarters of the current fiscal year (May 1, 2021 – Jan. 31, 2022)
Information related to the amounts of sales, income, and loss for each reporting segment(Units: 1,000s yen)
Reporting segment
Adjustments

Amountrecorded in
profit and loss
statement

4,688,999―

4,688,999

54

54

(54)

―

2,549,709

120,935

4,689,053(54)

4,688,999

488,081(238,835)

766,479(397,038)

369,441

Funeral businessPhoto bookbusiness

Aerialdisplay business

2,018,409

2,549,709

120,881――2,018,409
517,234

Total

Sales
Sales to outside
customers
Inter-segment internalsales and transfers
Total
Segment income (loss)* () means negative figure
Beginning from the fiscal year beginning May 1, 2021, the memorial design business was renamed the funeral business, thepersonal publishing business was renamed the photo book business, and the aerial imaging business was renamed the aerial display
business. Names of the businesses changed, however, content and information unchanged as before. Names of reporting segment
for previous year were renamed.

This is the summarized translation of released report for your reference.
Please refer to the original Japanese financial document.