Consolidated Financial Statements for the Six Months Ended June 30, 2022 (IFRS)
These financial statements have been prepared for reference only.

August 10, 2022
Link and Motivation Inc.
Stock exchange listing: Tokyo, Prime Market
Code number: 2170
http://www.lmi.ne.jp/english
Representative: Ozasa Yoshihisa, Chairman and Representative Director
Contact: Yokoyama Hiroaki, Corporate Officer andManager of System Design Office
Phone: +81-3-6853-8111
Filing of Quarterly Report (Shihanki Hokokusho) (scheduled):
August 10, 2022
Start of distribution of dividends (scheduled):
September 22, 2022
Supplementary documents for quarterly results:
No
Quarterly results briefing:No(Amounts are rounded down to the nearest million.)

1. Consolidated Results for the Six Months Ended June 30, 2022
(January 1, 2022 – June 30, 2022)(1) Revenues and Income

Revenues(¥ million)
Six months ended
June 30, 2022
Six months ended
June 30, 2021

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

16,766

2.2

1,969

31.0

1,879

32.5

1,000

10.5

16,399

—

1,503

—

1,418

—

905

109.6

Net income
attributable toowners of theparent(¥ million)

Change(%)

Comprehensive
income(¥ million)

Change(%)

Basic earnings
per share (¥)

Dilutedearnings per
share (¥)

Six months ended
June 30, 2022
907
8.8
977
3.7
8.14
8.14
Six months ended
June 30, 2021
834
124.0
942
—
7.95
7.95
Note: As of the fiscal year ended December 31, 2021, the domestic temp staff business of Link Agent Inc. (formerly Link Staffing Inc.)
has been classified as discontinued operations. As a result, profits from discontinued operations are presented separately fromcontinuing operations in the condensed consolidated statements of operations. Accordingly, revenues, operating income andincome before taxes present the amounts for continuing operations. Because amounts for the six months ended June 30, 2021
have been restated in the same manner for presentation, rates of increase or decrease from the same period of the previous fiscal
year are not presented for these items.

(2) Financial Position
Total assets(¥ million)
As of June 30, 2022
As of December 31, 2021

28,71030,062

Total equity(¥ million)
9,229
8,648

2. Dividends
1st Qtr.
1.80
1.90

2nd Qtr.
1.80
1.90

Equity attributableto owners of theparent(¥ million)
7,982
7,493

Ratio of equity
attributable to ownersof the parent to total
assets (%)
27.8
24.9

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

Total
7.40

1.90

7.60

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

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

Notes(1) Changes in Significant Subsidiaries during the Period (Changes in Specified Subsidiaries Due to Change in Scopeof Consolidation): No(2) Changes in Accounting Policies and Changes in Accounting Estimates(a) Changes in accounting policies required by IFRS: No(b) Changes in accounting policies other than (a) above: No(c) Changes in accounting estimates: No(3) Number of Shares Issued and Outstanding (Common Stock)(a) Number of shares at the end of the period (including treasury stock)Six months ended June 30, 2022: 113,068,000; Year ended December 31, 2021: 113,068,000(b) Number of treasury shares at the end of the period:
Six months ended June 30, 2022: 1,506,443; Year ended December 31, 2021: 1,506,443(c) Average number of shares outstanding (cumulative with earlier quarters):
Six months ended June 30, 2022: 111,561,557; Six months ended June 30, 2021: 104,922,204* These Financial Statements Are Not Subject to Review by a Certified Public Accountant or Auditing Firm
* Explanation of the Proper Use of Performance Forecasts and Other Special Instructions
Consolidated forecasts and other statements regarding the future contained in this document are based on information
currently available to the Company and certain reasonable assumptions. Actual performance may differ substantially
due to numerous factors.

Contents of Attachments
1. Overview of Results of Operations and Other Information ..................................................................................... 2(1) Overview of Results of Operations for the Six Months Ended June 30, 2022 ................................................. 2(2) Overview of Financial Position for the Six Months Ended June 30, 2022 ....................................................... 7(3) Overview of Cash Flow for the Six Months Ended June 30, 2022.................................................................... 7(4) Forecast ................................................................................................................................................................. 7
2. Condensed Consolidated Financial Statements and Main Notes ............................................................................ 9(1) Condensed Consolidated Statements of Financial Position ............................................................................. 9(2) Condensed Consolidated Statements of Operations and Comprehensive Income ........................................11(3) Condensed Consolidated Statements of Changes in Equity ............................................................................15(4) Condensed Consolidated Statements of Cash Flow ..........................................................................................16(5) Notes to Condensed Consolidated Financial Statements ................................................................................17
Significant Accounting Policies .....................................................................................................................17
Notes Regarding Significant Accounting Estimates and Judgements ......................................................17
Notes Regarding Assumption of Going Concern .......................................................................................17
Significant Subsequent Events .....................................................................................................................17

1

1. Overview of Results of Operations and Other Information
Forward-looking statements in the following text are based on judgments as of June 30, 2022, the last day of theconsolidated accounting period under review. Because the Link and Motivation Group (the “Group”) transferred the domestic
temp staff business operated by its subsidiary Link Agent Inc. (formerly Link Staffing Inc.) to iDA K.K. as of January 1, 2022,
these operations are classified as discontinued. Therefore, the amount from continuing operations is shown for revenues, grossprofit and operating income, and the total from continuing and discontinued operations is shown for net income attributable toowners of the parent. In addition, for comparisons with the same period of the previous year, figures for the same period of theprevious year have been restated according to the classification after the transfer.
(1) Overview of Results of Operations for the Six Months Ended June 30, 2022
The Group supports the transformation of numerous companies and individuals using “Motivation Engineering,” whichis the Group’s core technology, backed by psychology, behavioral economics, social systems theory and other disciplines,
under its corporate philosophy: “Through Motivation Engineering, we provide opportunities to transform organizations andindividuals and create a more meaningful society.” The outlook for the Japanese economy was impossible to predict during
the six months ended June 30, 2022 (the “first half of 2022”) due to assumptions of an economic slowdown caused by
Russia’s attack on Ukraine among other factors, in addition to the unclear timing of the end of the COVID-19 pandemic.
Particularly under these economic conditions, the Group perceives the importance for companies to secure and develop
human resources capable of dealing with change—specifically, the rising needs for improving employee engagement(mutual understanding, empathy and commitment between companies and employees) due to changes in work style and forenhancing the skills of employees due to Digital Transformation (“DX”).
In this economic environment, the Group’s revenues for the first half of 2022 were ¥16,766 million (a 2.2% increase
compared with the same period of the previous year), gross profit was ¥8,472 million (a 6.2% increase), operating income
was ¥1,969 million (a 31.0% increase) and net income attributable to owners of the parent was ¥907 million (an 8.8 %increase).
The segment and business classifications of the Group are as shown below, and an overview of the first half of 2022
by segment and business follows.
As of the first quarter of 2022, business classifications and business names have changed. Figures for the same periodof the previous year have been restated for purposes of comparison.
Link and
Motivation Group

Organizational
Development Division

Consulting &Cloud Business
Link and Motivation Inc.

Individual
Development Division

Matching Division

Career School Business

ALT Placement Business

Link Academy Inc.

Link Interac Inc.

Link Global Solution Inc.

Link Japan Careers Inc.

Link Event Produce Inc.

IR Support Business

Cram School Business

Personnel Placement
Business

Link Corporate
Communications Inc.

Motivation Academia Inc.

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

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

Organizational Development Division
The Organizational Development Division defines companies that use employee motivation as the engine of corporate
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 engagement with a company’s
stakeholders (employees, job applicants, customers, shareholders) using “Motivation Engineering,” which is the coretechnology of the Group.
In this segment, segment revenues for the first half of 2022 were ¥6,160 million (a 15.7% increase), and segment
income was ¥4,223 million (a 12.7% increase). An overview of operating results by business for the first half of 2022 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 half of 2022 were ¥5,376 million (a 17.5% increase) and gross profit was¥3,839 million (an 11.3% increase). Results by product in the Consulting & Cloud business were as follows.
Table 1. Revenues by ProductProduct (¥ million)[Gross profit in brackets]
Consulting & Cloud BusinessSix months ended
June 30, 2021
4,576
[3,450]
3,219
1,356

Consulting
Cloud

Six months ended
June 30, 2022
5,376
[3,839]
3,708
1,667

YoY change
(%)
17.5
11.3
15.2
22.9

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

June

2022

September

December

March

June

747

743

772

738

745

768

206,485

218,928

235,859

240,545

256,155

284,692

Since its founding in 2000, Link and Motivation has not only diagnosed the engagement status of companies andemployees 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 Company
migrated the organization diagnosis service it has offered since its founding to the cloud and started providing the3Motivation Cloud service in July 2016. The service is currently ranked number one in share of sales by vendor in theemployee engagement market for 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.
The Group has forecast ¥320,000 thousand in fee revenues from the Motivation Cloud series for the month ofDecember 2022 (a year-on-year increase of 33.0%). During the first half of 2022, the business continued to promote theintroduction of this product at major companies, and monthly fee revenue for June 2022 was ¥284,692 thousand, making
steady progress toward the forecast.
This business will continue to ramp up new customer development, mainly at major companies. It expects to further
increase monthly fee revenue with the July 2022 launch of a new service, which is a cloud-based version of an existing
human resource development service. Implementation of these growth strategies will accelerate the rollout of the Cloud
series and drive the employee engagement market.
IR Support Business
The IR Support business provides one-stop support for corporate branding through various media and events centeredon the field of investor relations for the “creation of Motivation Companies” at corporations. In addition to printed media
such as integrated reports for shareholders and investors, web-based media such as investor relations (IR) sites, and visualmedia such as videos that explain products and webcasts of shareholders’ meetings, the business creates physical andvirtual forums for shareholders’ meetings and other events.
In this business, revenues for the first half of 2022 were ¥916 million (a 3.5% increase) and gross profit was ¥444
million (a 16.3% increase). This business has only one product.
In the first half of 2022, due to growth in production of integrated reports, which have a high profit margin, revenues
increased and gross profit increased substantially compared with the same period of the previous year.
In addition, attention to non-financial capital has risen in recent years, with increasing needs for its disclosure,particularly for human capital. This business will take advantage of this trend to generate synergies with the Consulting &Cloud business by disclosing the results of its diagnosis and transformation initiatives, with a focus on human capital.
Individual Development Division
The Individual Development Division supports the creation of “i-Companies,” which it defines as individuals who
independently and autonomously develop their own careers and lives. Specifically, it applies “Motivation Engineering,”
which is the core technology of the Group, to businesses in areas including career schools and cram schools, to provide
one-stop services to customers from elementary school students to working adults. These services range from helping to
set goals to understanding individual issues and formulating and implementing study plans.
In this segment, segment revenues for the first half of 2022 were ¥3,666 million (a 2.5% decrease) and segment
income was ¥1,504 million (a 6.1% increase). An overview of operating results by business for the first half of 2022 is asfollows.
Career School Business
The Career School business provides one-stop services for individual career advancement, targeting mainly university
students and working adults, under the five service brands of “Aviva” personal computer schools, “Daiei” qualification
schools, and “Rosetta Stone Learning Center,” “Rosetta Stone Premium Club” and “Hummingbird” foreign language
schools. Previously, the business mainly conducted classroom lectures, but currently provides support of continuing
learning by offering both in-school and online services.
In this business, revenues for the first half of 2022 were ¥3,359 million (a 3.5% decrease) and gross profit was ¥1,376
million (a 6.1% increase). Results by product in the Career School business were as follows.
Table 3. Revenues by ProductProduct (¥ million)[Gross profit in brackets]
Career School BusinessIT
Qualifications

Six months ended
June 30, 2021

Six months ended
June 30, 2022

YoY change
(%)

3,481
[1,297]
1,938
1,231

3,359
[1,376]
1,921
1,179

(3.5)
6.1
(0.9)
(4.3)

4

English conversation

311

258

(17.0)In the first half of 2022, the impact of the continuing COVID-19 pandemic throughout the period on services forindividuals was significant, and revenues decreased compared with the same period of the previous year. On the other
hand, revenue from DX support for individuals at companies, which has a high profit margin, grew a substantial 68.0%
compared with the same period of the previous year. In addition, the business achieved more efficient management
through promotion of online courses and other measures, and gross profit increased compared with the same period of theprevious year.
Going forward, the business will continue helping to generate results for students by providing value in virtual space
without depending solely on business bases and achieve greater growth in the DX market, which is expected to further
expand, by utilizing the IT skill support know-how and customer assets cultivated by the Organizational Development
Division and the Matching Division.
Cram School Business
Unlike typical cram schools, the Cram School business operates under the business concept of producing numerous“i-Companies” in addition to improving the academic ability of its students. Its services consist of operating “Motivation
Academia” cram schools for junior high and high school students to provide a place where students can not only prepare
for school entrance exams but also develop skills to play a role in society. The business also operates “SS-1,” anindividualized instruction school for students preparing for junior high school entrance exams. The Cram School business
utilizes its assets in programming education and English conversation education to provide a place for students fromelementary school straight through to high school to develop skills that will be of use in society. Like the Career School
business, it now offers both in-school and online services in response to Japan’s state of emergency and new lifestyles.
In this business, revenues for the first half of 2022 were ¥307 million (a 9.2% increase) and gross profit was ¥128
million (a 5.6% increase). This business has only one product.
Both revenues and gross profit increased in the first half of 2022 due to recovery in the number of enrollees.
In addition to continuing to provide stable services to increase the number of new enrollees through further
improvements to the quality of its online classes and one-on-one meetings, this business aims to achieve one-stop services
unattainable by conventional cram schools, ranging from elementary to high school students.
Matching Division
The Matching Division provides 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) of foreign languages and to other businesses. It createsmatches with a high retention rate by going beyond the skill requirements of companies and local governments formatching with the characteristics of each individual based on the Group’s proprietary data.
In this segment, segment revenues for the first half of 2022 were ¥7,487 million (a 3.5% decrease) and segment
income was ¥3,224 million (a 0.7% increase). An overview of operating results by business for the first half of 2022 is asfollows.
ALT Placement Business
The ALT Placement business dispatches non-Japanese assistant language teachers (ALTs) of foreign languages toelementary, junior high and high schools throughout Japan and provides English-language instruction services on contract.
In this business, where barriers to entry are extremely high due to the importance placed on relationships of trust withcustomers and a company’s track record, the Group has established the predominant number-one share among privatecompanies. The business is also capturing needs for employment of foreigners through its business that provides one-stop
foreigner recruiting, training and labor support to companies seeking to hire them.
In this business, revenues for the first half of 2022 were ¥6,192 million (a 7.2% decrease) and gross profit was ¥1,951
million (a 9.0% decrease). This business has only one product.
In the first half of 2022, due to price adjustments by the business as a result of the expansion of social insurance
coverage that will take effect in October 2022, some local governments withdrew their bids because the price exceeded
their budgets. As a result, both revenues and gross profit decreased compared with the same period of the previous year.

5On the other hand, there was a steady increase in the number of schools using “Teachers Cloud,” a cloud-based
service launched in June 2021 to improve the efficiency of teachers’ preparation for English classes, their English ability
and their teaching skills. As of June 30, 2022, 5,368 schools were using the product, closing in on the year-end target of
5,600 public elementary, junior high or high schools in Japan, and the business plans to provide it to 14,000 schools, orabout 45% of all public elementary, junior high or high schools in Japan, by 2024. The Group will continue to broaden
the infrastructure for Teachers Cloud in classrooms and use it in its sales activities to expand the market share of the ALT
Placement business.
Personnel Placement Business
The Personnel Placement business provides the human resources an organization needs to grow in the form of areferral service for human resources. Mainly, it conducts new graduate recruiting and referrals that connect university
students looking for employment with company orientation meetings and interviews, and mid-career referrals that matchworking adults looking to change jobs with companies.
In this business, revenues for the first half of 2022 were ¥1,306 million (an 18.1% increase) and gross profit was¥1,285 million (a 19.0% increase).
During the first half of 2022, OpenWork Inc., which has a particularly high growth rate, continued to steadily
accumulate registered users and data on employee online reviews and evaluation scores despite the COVID-19 pandemic.
Amid the increasing activity in the market for people changing jobs, revenues from OpenWork’s direct hiring service
have grown substantially, increasing about 80% compared with the previous year.
By continuing to utilize the customer base of the Organizational Development Division, to add to its stockpile ofresumes of job seekers, and to improve its matching rate, this business will ramp up “engagement matching” that achieves
true mutual understanding and affinity between organizations and individuals.
Venture Incubation
In addition to its divisions, the Group conducts venture incubation. In venture incubation, the Group provides its
know-how in organizational and personnel consulting in addition to funding, as well as support for growing venturecompanies on an organizational level with the aim of listing their stock. The two main criteria for selection of investees
are (1) sympathy with creating a “Motivation Company” and (2) aim to list stock. Gains on sales and other results
generated from venture incubation are recorded in other components of equity on the condensed consolidated statementsof financial position, or under other income or other expenses on the condensed consolidated statements of operations.

6(2) Overview of Financial Position for the Six Months Ended June 30, 2022
Total assets as of June 30, 2022 were ¥28,710 million, a decrease of ¥1,352 million from the end of the previous year.
This was mainly due to factors including decreases of ¥733 million in right-of-use assets and ¥748 million in other noncurrent financial assets associated with the transfer of the domestic temp staff business and the relocation of the Tokyo
integrated office.
Total liabilities as of June 30, 2022 were ¥19,480 million, a decrease of ¥1,933 million from the end of the previous
year. This was mainly due to factors including decreases of ¥831 million in interest-bearing and other financial liabilitiesand ¥546 million in lease liabilities.
Total equity as of June 30, 2022 was ¥9,229 million, an increase of ¥581 million from the end of the previous year.
This was mainly due to factors including a ¥471 million increase in retained earnings associated with posting net income
attributable to owners of the parent and other reasons, partially offset by the payment of dividends from surplus.
(3) Overview of Cash Flow for the Six Months Ended June 30, 2022
Cash and cash equivalents (“cash”) as of June 30, 2022 were ¥4,817 million, a decrease of ¥100 million during theperiod.
Cash flow during the six months ended June 30, 2022 was as follows.
Cash Flow from Operating Activities
Net cash provided by operating activities was ¥1,359 million, a decrease of ¥803 million compared with the same
period of the previous year. The principal factor increasing cash was a ¥460 million increase in income before income
taxes compared with the same period of the previous year, while the principal factors decreasing cash included a ¥726
million decrease in depreciation and amortization and a ¥436 million decrease in income tax refund compared with thesame period of the previous year.
Cash Flow from Investing Activities
Net cash provided by investing activities was ¥402 million (in the same period of the previous year, net cash used ininvesting activities was ¥169 million). Principal factors decreasing cash included a ¥512 million decrease in proceedsfrom sale of investment securities compared with the same period of the previous year, while the principal factors
increasing cash included ¥441 million in proceeds from business transfer and an increase of ¥777 million in proceedsfrom refund of security deposits and guarantees compared with the same period of the previous year.
Cash Flow from Financing Activities
Net cash used in financing activities was ¥1,860 million, a decrease of ¥337 million compared with the same periodof the previous year. The principal factors decreasing cash included an ¥800 million net decrease in short-term financial
liabilities and a ¥434 million increase in repayment of long-term financial liabilities compared with the same period of theprevious year, while the principal factors increasing cash included an increase of ¥994 million in proceeds from long-term
financial liabilities and a decrease of ¥370 million in repayment of lease liabilities compared with the same period of theprevious year.
(4) Forecast
Due to the growth of the Consulting & Cloud business, which has a high profit margin, and the Personnel Placementbusiness, in addition to the impact of structural reforms that included the transfer of the domestic temp staff business andoffice relocations, the Group substantially increased operating income in the first half of 2022 compared with the same
period of the previous year and has evolved into a robust management structure. For the fiscal year ending December 31,
2022, the Company has forecast ¥4,000 million in operating income (an increase of 93.6% year on year), which will be arecord high. Despite a decrease in revenues in some businesses, the Group is making steady progress in transforming intoa highly profitable enterprise centered on growth businesses, consisting of the Consulting & Cloud business in the
Organizational Development Division and the Personnel Placement business in the Matching Division.
Over the medium term, the Group’s policy will be to grow businesses that have synergies with the Organizational
Development Division in particular. In June 2021, a policy to strengthen disclosure of information on human capital was
set forth in Japan’s Corporate Governance Code, and in July 2022, a policy was announced under Japan’s “New7

Capitalism” measures making it mandatory for listed companies to visualize their non-financial information from fiscal
2023. Consequently, attention to human capital management and disclosure of human capital information are on the rise,
and the Group considers this an advantageous trend, particularly for the Consulting & Cloud business in the
Organizational Development Division. The Group will continue to provide one-stop solutions for diagnosis andtransformation, mainly for major companies with strong needs for human capital management, as it rolls out cloud-based
services using the data and know-how it has accumulated through consulting. By doing so, the Group aims for accelerated
growth in fiscal 2023 and beyond.

8

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

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

9

As of
December 31, 2021

As ofJune 30, 2022

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

4,817
4,190
252
16
712
9,989

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

594
3,415
9,410
2,398
1,996
822
82
18,72028,710(Millions of yen, rounded down to the nearest million)

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

10

As of
December 31, 2021

As ofJune 30, 2022

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

1,835
1,660
5,966
983
835
143
1,786
13,211

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

2,079
3,478
325
255
129
6,268
19,480

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

1,380
3,879
(320)
4,877
(1,835)
7,982
1,247
9,229
28,710(2) Condensed Consolidated Statements of Operations and Comprehensive Income
Condensed Consolidated Statements of Operations
Six Months Ended June 30(Millions of yen, rounded down to the nearest million)

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

Six months ended
June 30, 2021

Six months ended
June 30, 2022

16,399
8,422
7,977
6,367
29
135
1,503
1
86
1,418
505
913

16,766
8,293
8,472
6,427
129
204
1,969
8
99
1,879
786
1,092

(8)
905

(92)
1,000

834
70
905

907
92
1,000
(Yen)

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

11

8.03
(0.08)
7.95

8.97(0.83)
8.14

8.03(0.08)
7.95

8.97(0.83)
8.14

Three Months Ended June 30(Millions of yen, rounded down to the nearest million)

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

Three months ended
June 30, 2021

Three months ended
June 30, 2022

8,452
4,293
4,159
3,215
10
74
879
0
30
850
212
637

8,818
4,365
4,452
3,227
113
169
1,169
6
19
1,156
515
640

(13)
624

(2)
638

588
35
624

589
48
638
(Yen)

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

12

5.74
(0.13)
5.61

5.31(0.02)
5.29

5.74(0.13)
5.61

5.31(0.02)
5.29

Condensed Consolidated Statements of Comprehensive Income
Six Months Ended June 30(Millions of yen, rounded down to the nearest million)

Six months ended
June, 2021

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

Six months ended
June, 2022

905

1,000

32
32

(16)
(16)

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

4
4
37
942

(7)
(7)
(23)
977

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

871
70
942

884
92
977

13

Condensed Consolidated Statements of Comprehensive Income
Three Months Ended June 30(Millions of yen, rounded down to the nearest million)

Three months ended
June 30, 2021

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

Three months ended
June 30, 2022

624

638

48
48

26
26

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

0
0
48
673

(4)
(4)
21
659

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

637
35
673

611
48
659

14

(3) Condensed Consolidated Statements of Changes in Equity
Six Months Ended June 30, 2021
(Millions of yen, rounded down to the nearest million)

Equity attributable to owners of the parent

January 1, 2021
Net income
Other comprehensive
incomeTotal comprehensive
incomeChange in ownershipinterest in subsidiaries
Dividends fromsurplusTransfer from othercomponents ofequity to retained
earnings
Total transactions withthe owners
June 30, 2021

Total equity
attributableto owners of
the parent

Noncontrollinginterests

Total
equity

3,760
834

1,157
70

4,917
905

37

37

—

37

834

37

871

70

942

—

—

—

(268)

16

(251)

—

—

(377)

—

(377)

—

(377)

—

—

—

186

(186)

—

—

—

—
1,380

(268)
1,587

—
(1,733)

(190)
4,632

(186)
(1,881)

(646)
3,985

16
1,244

(629)
5,230

Share
capitalCapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

1,380
—

1,855
—

(1,733)
—

3,989
834

(1,731)
—

—

—

—

—

—

—

—

—

(268)

—

Six Months Ended June 30, 2022
(Millions of yen, rounded down to the nearest million)

Equity attributable to owners of the parent

January 1, 2022
Net income
Other comprehensive
incomeTotal comprehensive
incomeDividends fromsurplus
Share-based paymenttransactions
Transfer from othercomponents ofequity to retained
earnings
Total transactions withthe owners
June 30, 2022

Total equity
attributableto owners of
the parent

Noncontrollinginterests

Total
equity

7,493
907

1,154
92

8,648
1,000

(23)

(23)

—

(23)

907

(23)

884

92

977

—

(423)

—

(423)

—

(423)

—

—

—

28

28

—

28

—

—

—

(12)

12

—

—

—

—
1,380

—
3,879

—
(320)

(436)
4,877

41
(1,835)

(395)
7,982

—
1,247

(395)
9,229

Share
capitalCapitalsurplusTreasurysharesRetainedearnings

Other
componentsof equity

1,380
—

3,879
—

(320)
—

4,406
907

(1,853)
—

—

—

—

—

—

—

—

—

—

—

15

(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 (loss) before tax from discontinued operations
Depreciation and amortization
Loss on impairment(Profit) loss from business transfer
Loss (gain) on sales of fixed assets
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 operating activities
Cash flow from investing activities
Payments for acquisition of property, plant and equipment
Proceeds from sale 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 fulfillment of 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
Payments for acquisition of interests in subsidiaries from
non-controlling interests
Payments of cash dividends
Repayment of lease liabilities
Net cash used in financing activities
Cash and cash equivalents translation adjustment
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the quarter
Cash and cash equivalents at end of the quarter16

Six months
ended
June 30, 2021

Six months
ended
June 30, 2022

1,418
(19)
1,586
115
—
(0)
85
(359)
(49)
(377)
(126)
2,272
0
(92)
439
(457)
2,162

1,879
20
859
148
(50)
—
90
(337)
(52)
(291)
(135)
2,131
5
(97)
2
(683)
1,359

(134)
0
(396)
—
—
513
(155)
135
(137)
3
(169)

(50)
—
(516)
441
(79)
1
(22)
913
(279)
(5)
402

—
406
(996)

(800)
1,400
(1,431)

(251)
(378)
(976)
(2,197)
4
(200)
6,449
6,249

—
(422)
(605)
(1,860)
(1)
(100)
4,917
4,817

(5) Notes to Condensed Consolidated Financial Statements(Significant Accounting Policies)
The significant accounting policies applied in these condensed consolidated financial statements are the same as those
applied in the consolidated financial statements for the previous fiscal year.
Income taxes expense for the six months ended June 30, 2022 was calculated using the estimated average annual
effective tax rate.
(Notes Regarding Significant Accounting Estimates and Judgements)
In preparing the condensed consolidated financial statements, management makes judgments, estimates andassumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income andexpenses. The results of accounting estimates may differ from actual results.
The estimates and their underlying assumptions are reviewed on an ongoing basis. The effects of a review ofaccounting estimates are recognized in the accounting period in which the estimates are reviewed as well as in future
periods.
Estimates and estimate-related judgments that have a significant impact on these condensed consolidated financial
statements are the same as those in the condensed consolidated financial statements for the same period of the previous
fiscal year.
In the six months ended June 30, 2022, there was no change to the “Accounting Estimates Related to the COVID-19
Pandemic” presented in the Securities Report for the previous fiscal year.

(Notes Regarding Assumption of Going Concern)
None applicable(Significant Subsequent Events)
None applicable17