UNOFFICIAL TRANSLATION
The formal official document is in Japanese

Summary of Consolidated Financial Results
for the Fiscal Year ended September 30, 2022 (Japanese Accounting Standards)
November 9, 2022
Listed Company Name: MTI Ltd.
Listing Exchanges: Tokyo Stock Exchange
Securities Code:9438
URL: https://ir.mti.co.jp/eng/
Representative:
Toshihiro Maeta, President and Chief Executive Officer
Contact:
Hiroshi Matsumoto, Senior managing Director
Phone: +81-3-5333-6323
Scheduled date of annual meeting of shareholders: December 24, 2022
Scheduled date to submit the Securities Report (Yuka Shoken Houkokusho): December 26, 2022
Scheduled date of dividend payment: December 26, 2022
Supplementary documents for financial results: Yes
Financial results briefing: Yes (for securities analysts and institutional investors)(Figures less than one millions of yen are omitted)

1. Consolidated financial results for the year ended September 30, 2022
(October 1, 2021 – September 30, 2022)(1) Consolidated operating results(Percentages represent year-on-year changes)
Net sales

Operating income

Millions of yen

For the year ended September 30, 2022
For the year ended September 30, 2021
(Note) Comprehensive income:% Millions of yen

Profit attributable toowners of parent

Ordinary income% Millions of yen% Millions of yen%

26,4792.9870 (54.9)
485 (64.5)(930)–
25,743 (1.3)
1,929 (23.0)
1,370 (34.2)(1,164)–
Year ended September 30, 2022: (1,137) million yen, (–%)
Year months ended September 30, 2021: (1,399) million yen, (–%)
Net income
Net income
Return on
Return on Assets Net income
per shareper share/diluted
Equity％％For the year ended September 30, 2022
(16.99)–(5.9)
1.6
For the year ended September 30, 2021
(21.28)–(6.4)
4.4(Reference) Equity in earnings (losses) of affiliates: Year ended September 30 2022: (457) millions of yen
Year ended September 30 2021: (569) millions of yen

3.3
7.5

Yen

％

Yen

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Year ended September 30, 2022
Year ended September 30, 2021
(Reference) Shareholders’ equity:

Equity ratio

Millions of yen

29,265
17,87731,90821,243
Year ended September 30, 2022: 14,065 millions of yen
Year ended September 30, 2021: 17,426 millions of yen

Net assets per share
%

Yen

48.1
54.6

256.61
318.29(3) Consolidated cash flows
Net cash providedby (used in)operating activities

Net cash providedby (used in)investing activities

Net cash provided by(used in) financing
activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen(1,393)3,516(2,460)(1,996)343
649

12,097
15,540For the year ended September 30, 2022
For the year ended September 30, 2021

Cash and cash
equivalent

2. Dividends
Dividend per share
End offirstquarter

For the year ended September 30, 2021
For the year ended September 30, 2022
For the year ending September 30, 2023
(forecast)End ofsecondperiodEnd ofthird
quarter

Yen

Yen

Yen

Yen

Yen

–
–

8.00
8.00

–
–

8.00
8.00

16.00
16.00

–

8.00

–

8.00

16.00

Year end

AnnualDividends on
Amount ofDividend ratio
equitydividends paid
(Consolidated)(Consolidated)(Total)

878
880

%

%

–
–

4.8
5.6

–

3.

Forecast for consolidated financial results for the fiscal year ending September 30, 2023
(October 1, 2022 – September 30, 2023)
Net sales

For the first half
Full year(Percentages represent year-on-year changes)
Profit attributable to
Net income
Ordinary income
owners of parent
per share

Operating income

Millions of yen%

Millions of yen%

12,70026,000

(2.1)
(1.8)

200
800

(66.6)(8.1)

Millions ofyen%Millions of yen%

Yen

0 (100.0)400 (17.7)

(740)
(600)

–
–

(13.55)(10.99)* Notes(1) Important changes of subsidiaries during the term (changes in specified subsidiaries resulting in change in scope of
consolidation): Not applicable
New: –
Exception: –(2) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies due to the modification in accounting methods:(ii) Changes in accounting policies other than (i):(iii) Changes in accounting estimates:(iv) Restatement:

ApplicableNot applicableNot applicableNot applicable(3) Number of outstanding shares (common shares)(i) Number of outstanding shares at the end of period (including treasury shares):9/22: 61,263,000 shares
9/21: 61,248,200 shares(ii) Number of treasury shares at the end of period
9/22: 6,450,273 shares
9/21: 6,496,273 shares(iii) Average number of shares during the period
9/22: 54,781,561 shares
9/21: 54,699,877 shares(Reference) Summary of financial results
1. Nonconsolidated financial results for the year ended September 30, 2022
(From October 1, 2021 - September 30, 2022)(Percentages are shown as year-on-year changes)(1) Nonconsolidated operating results
Net sales
For the year ended
September 30, 2022
For the year ended
September 30, 2021

Operating income

Ordinary income

Net income

Millions of yen％

Millions of yen％

Millions of yen％

Millions of yen％

21,445

3.6

2,879

18.0

1,289

(43.6)(3,524)–

20,699

(0.8)

2,440

(20.2)

2,287(33.9)

4,970

392.1

Net income pershare
For the year ended
September 30, 2022
For the year ended
September 30, 2021

Fully diluted net
income per share
Yen

Yen

(64.10)

–

90.56

90.26

(2) Nonconsolidated financial position
Total assets
Millions of yen

For the year ended
25,048September 30, 2022
For the year ended
30,344September 30, 2021
(Reference) Shareholders’ equity
As of September 30, 2022: 14,932 millions of yen

Net assets

Equity ratio

Net assets per share

Millions of yen％

Yen

15,04359.6

271.4520,87968.3

377.02As of September 30, 2021: 20,717 millions of yen* Status of review
Financial results is out of audit.
* Cautionary statement with respect to forward-looking statements
The forward-looking statements included in this material are based on the Company’s judgments, assumptions, and convictions basedon information available to the Company at the time of publication of this document and may differ materially from actual results for arange of factors, including conditions of Japanese and overseas economies, changes in the situation of operations in Japan and overseas,
and uncertainties and potential risks inherent in forward-looking statements. The risks and uncertainties include unforeseeable effects offuture events.For the assumptions underlying the forecasts and other notice on the use of earnings forecasts, please refer to “(4) Future
outlook” on page 4 in the accompanying material.
While the Company planned to hold an online briefing on earnings chiefly for securities analysts and institutional investors on Thursday,
November 10, 2022, for original Japanese.

Accompanying materials – Contents
1.

Overview of operating results.....……………….…………………………..……………….

2(1)

Overview of operating results for the current fiscal year…………………….……….

2(2)

Overview of financial position for the current fiscal year…………………………..…

3(3)

Overview of cash flow for the current fiscal year….…………………………..………

3(4)

Future outlook………………………………………………………………………...

4

2.

Basic policy for the selection of accounting standard…………….…………………………

4

3.

Consolidated financial statements and important notes………….…………………………

5(1)

Consolidated balance sheet…………………………………………………………...

5(2)

Consolidated statement of income and comprehensive income……………………...

7(3)

Consolidated statement of changes in shareholders’ equity………………………….

9(4)

Consolidated statement of cash flows………………………………………………...

11

1

1. Overview of operating results(1) Overview of operating results for the current fiscal year
In the Group's business environment during the current fiscal year, the Japanese economy is severely affected by
the prolonged COVID-19 pandemic, although the impact on the Group's consolidated financial results was minor.
In the content business, the Group increased the number of new subscribers to the “AdGuard” security-relatedapp, which was in high demand, although the acquisition of new subscribers through mobile phone stores remained
weak. It also increased monthly distribution of original comics to digital comic distributors.
In the healthcare business, the Group facilitated collaboration with its partner, Medipal Holdings Corporation,
in a bid to spur more pharmacies to introduce the cloud drug record service, given that the appetite for the
introduction of this service was growing, and to promote sales of child bearing-related solutions, such as thematernal health record book app, to local governments.
As a result, net sales stood at ¥26,479 million yen (down 2.9% year on year).
Gross profit declined to ¥18,691 million (down 0.3% year on year) although a slight increase in net sales. Thisis because the other business, where the rate of cost of sales was high, accounted for a larger percentage of total
net sales due to a rise in sales in the business and low-profit projects increased in this business.
Operating income and ordinary income came to ¥870 million (down 54.9% year on year) and ¥485 million (down
64.5% year on year), respectively. This reflected an increase in selling, general and administration expenses
primarily due to rises in personnel expenses, subcontracting expenses and depreciation as a result of efforts madeto strengthen the Group’s product development capability, particularly in the school digital transformation businessthat Motivation Works Inc., a subsidiary, is actively working to develop, although there were reductions in rents
linked to a shift to the teleworking system.
Loss attributable to owners of parent came to ¥930 million (compared to a loss of ¥1,164 million in the previousyear). This mainly reflected a decrease in ordinary income and an increase in impairment loss (extraordinary losses),despite a significant decrease in income taxes-current.
Consolidated operating results(Period from October 1, 2021 to September 30, 2022)
Fiscal year ended
September 30, 2022

Fiscal year ended
September 30, 2021

ChangeAmountPercentage

Millions of yen

Millions of yen

Millions of yen%

26,47925,743

+736

+2.9

7,787

7,001

+786

+11.2

Gross profit

18,691

18,741

△50

(0.3)

SG&A

17,82016,811+1,008+6.0

Operating income

870

1,929

(1,059)(54.9)

Ordinary income
Profit attributable to
Owners of parent

485

1,370

(884)

(64.5)(930)(1,164)+233-

Net sales
Cost of sales

Breakdown of SG&A
(Period from October 1, 2021 to September 30, 2022)
Fiscal year ended
September 30, 2022

Fiscal year ended
September 30, 2021

ChangeAmountPercentage

Millions of yen

Millions of yen

Millions of yen%

17,82016,811+1,008+6.0

Advertising expenses

1,580

1,517

+62

+4.1

Personnel expenses

7,718

7,099

+619

+8.7

Commission fee

3,094

3,157

(63)

(2.0)

Subcontract expenses

2,136

1,804

+332

+18.4

Depreciation

1,352

1,132

+219

+19.4

Other

1,937

2,100

(162)

(7.7)

Total

2

Operating results by segment are as follows.
① Content business
The content business includes B2C monthly billing services (excluding the “Luna-Luna” healthcare service forwomen and the “CARADA medica” health Q&A service in cooperation with healthcare professionals) and theB2B original comic distribution business that offers original comic content to comic distributors.
This segment served 3.20 million of paying subscribers. The figure was 320 thousand smaller than at the endof September 2021. Following mobile carriers’ termination of the feature phone service, the net decrease
temporarily in the number of paying subscribers expanded. Excluding this factor, however, a net decline in thenumber of paying subscribers was becoming moderate in the content business, reflecting continuing growth in
the number of paying subscribers to the “AdGuard” security-related app.
Net sales stood at ¥18,518 million (down 1.8% year on year), with year-on-year decline in paying subscribers
mostly offset by an extra ¥717 million in net sales because net sales corresponding to lapsed points were treatedas non-taxable transactions following adjustment of the handling of consumption tax on lapsed points inmonthly content services that award points. Operating income rose to ¥6,200 million yen (up 4.4% year on year)
due largely to the effect of the above increase in net sales.
② Healthcare business
The healthcare business includes B2C monthly billing services under the “Luna-Luna” and “CARADA medica”
brands and B2B and B2B2C healthcare services for medical institutions and local governments, such as thecloud drug record service and the maternal health record book app.
This segment served 590 thousand of paying subscribers. The figure was 50 thousand smaller than at the endof September 2021. On the other hand, the number of pharmacies that offer the cloud drug record service came
to 1,264 at the end of September 2022 (up 499 from the end of September 2021), with record take up in themost recent fourth quarter, as the result of great efforts focused on increasing the number of pharmacies whose
motivation to introduce such service is growing.
Net sales came to ¥4,030 million (up 6.3% year on year) due to growth in initial introduction sales based on
an increase in the number of pharmacies introducing the cloud drug record service, despite year-on-year decline
in paying subscribers. Operating loss was stood at ¥1,108 million (loss of ¥1,267 million in the previous fiscal
year) due to the continued burden of upfront investment spending.
③ Other business
Other business includes the B2B-type AI business operated by Automagi Inc., a consolidated subsidiary, theCompany’s DX support business for large companies and solution business, and the school DX business
operated by Motivation Works Inc., a consolidated subsidiary.
In this segment, net sales came to ¥5,262 million (up 21.0% year on year), reflecting a rise in sales in thedigital transformation support business for major companies and schools DX business. The operating loss cameto ¥1,667 million (loss of ¥105 million in the previous fiscal year) chiefly due to a rise in the cost of sales, which
resulted from an increase in low-profit projects in the DX support business for major companies, higher
personnel expenses due to an increase in the number of personnel for strengthening the school DX businessstructure, and increases in subcontract expenses for strengthening development capability and depreciation.
(2) Overview of financial position for the current fiscal year
As of the end of the fiscal year under review, total assets decreased ¥2,643 million from the end of September
2021, to ¥29,265 million.
Current assets decreased ¥2,484 million mainly due to a fall in cash and deposits. Non-current assets fell ¥158
million mainly due to a decline in investment securities, despite an increase in software.
Current liabilities decreased ¥269 million, primarily reflecting a decline in income taxes payable, more thanoffsetting an increase in contract liabilities linked to the application of the Accounting Standard for Revenue
Recognition, etc. Non-current liabilities gained ¥992 million mainly due to a decline in long-term loans payable.
Net assets decreased ¥3,365 million due to the payment of dividends and the effects of the application of the
Accounting Standard for Revenue Recognition, etc., despite the posting of ¥930 million as loss attributable toowners of parent.
(3) Overview of cash flow position for the current fiscal year
As of the end of the fiscal year under review, cash and cash equivalents amounted to ¥12,097 million, a decreaseof ¥3,442 million from September 30, 2021. Cash flow by activity and principal factors in the fiscal year underreview were as follows.
Net cash used in operating activities was ¥1,393 million (inflow of ¥3,516 million for the previous fiscal
3

year). Principal factors included the payment of income taxes, which more than offset depreciation andamortization and impairment loss.
Net cash used in investing activities stood at ¥2,460 million (outflow of ¥1,996 million in the previous fiscal
year). Principal factors included the acquisition of intangible assets (mainly purchase of software).
Net cash provided by financing activities came to ¥343 million (inflow of ¥649 million in the previous fiscal
year). Principal factors included proceeds from long-term borrowings, which more than offset dividends paid.
(4) Future outlook
The Company will work hard to expand sales and cut losses of its healthcare business, which is expected to play a
key role in increasing revenue and earnings in the future. In the content business, it will make every effort toincrease the number of paying subscribers by expanding sales of the “AdGuard” security-related app and striving
to bolster the original comic distribution business.
In the other business, the Group will focus on expanding the school DX business that Motivation Works Inc., asubsidiary of the Company, is actively working to develop. Given the high level of business inquiries about“BLEND”, the cloud-based school affairs support system provided by Motivation Works, upfront investment tostrengthen the business structure by increasing personnel and using subcontractors to deal with growing use of thesystem, as well as to develop new versions of “BLEND” that will contribute to introduction costs is likely continue
for the time being; however, this upfront investment will lead to further sales growth.
The Company takes medium- and long-term perspectives in its engagement in the healthcare business, which hasstrong potential for future growth and compared with B2C transactions, may move toward a more stable stock-typebusiness through the establishment of long-term business relationships with customers. Therefore, the Company iscommitted to implementing a variety of measures to achieve sales growth.
Among others, the cloud drug record service will help the healthcare business attain continuous sales growth,since the appetite for introducing the service has been growing among pharmacies. The Company will acceleratesales tie-ups with companies that provide IT solutions to pharmacies to make sure that more stores will introduce
the service, while simultaneously strengthening collaboration with its partner, Medipal Holdings Corporation.
It will also enhance childcare-related services with a focus on local governments that have introduced the“Boshimo”, a maternal health record book app, and will advance digital cooperation among local governments,
hospitals, and residents, thereby advancing its “Boshimo” childcare DX platform strategy to enable the healthcare
business to make a contribution to profit in the medium term.
Earnings forecast for the six months of the fiscal year ending September 30, 2023
(Period from October 1, 2022 to March 30, 2023)
Consolidated(Millions of yen)

YoY(%)Net sales

12,700(2.1)

Operating income

200(66.6)

Ordinary income

0(100.0)

Profit attributable toowners of parent

(740)

-

Earnings forecast for the fiscal year ending September 30, 2023
(Period from October 1, 2022 to September 30, 2023)
Consolidated(Millions of yen)

YoY(%)Net sales

26,000(1.8)

Operating income

800

(8.1)

Ordinary income

400(17.7)

Profit attributable toowners of parent

(600)

-

2. Basic policy for the selection of accounting standards
The Group intends to compile its consolidated financial statements based on the Japanese accounting standard
for the time being, considering the possibility of comparing the terms of financial statements and performances
between companies.
It will adopt the International Financial Reporting Standards (IFRS), factoring in the situations in Japan andabroad.
3．Consolidated financial statements and important notes4(1) Consolidated balance sheet（Unit: thousands of yen）
Previous fiscal year
(As of September 30, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Notes and accounts receivable - trade, and contract
assetsAdvance payments-trade
Prepaid expenses
Accounts receivable-other
Income taxes receivable
Other
Allowance for doubtful accounts
Total current assets

Current fiscal year
(As of September 30, 2022)

15,540,084
4,501,674

12,097,658－

4,294,825

281,543

230,049

460,171
93,63860,276358,622(33,173)434,784
71,031
485,089
1,199,240(34,097)

21,262,838

18,778,582

338,130(256,359)

308,888(242,130)

81,771

66,758

277
(255)

277
(277)

－

Non-current assets
Property, plant and equipment
Facilities attached to buildings
Accumulated depreciation
Facilities attached to buildings, net
VehiclesAccumulated depreciation
Vehicles, net

220567,859(446,650)

601,076(474,773)

Tools, furniture and fixtures, net

121,208

126,302

Total property, plant and equipment

203,001

193,060

Software
Goodwill
Customer-related assets
Other

1,791,596
556,4211,333,800
30,0092,058,982
655,709912,600
163,473

Total intangible assets

3,711,827

3,790,765

4,511,728
318,761
1,803,442
108,143(10,904)

3,675,499
337,475
2,394,793
106,411(10,904)

Tools, furniture, and fixtures
Accumulated depreciation

Intangible assets

Investments and other assets
Investment securities
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

6,731,170

6,503,275

10,646,000

10,487,102

31,908,839

29,265,684

（Unit: thousands of yen）
Previous fiscal year
(As of September 30, 2021)

Current fiscal year
(As of September 30, 2022)

1,147,543
451,780
1,230,095
493,342
2,156,218
461,410

1,068,638
751,780
1,221,218
501,487
19,23623,161－
115,396
23,447
576,648

2,356,643

6,655,884

6,386,353

Long-term loans payable
Net defined benefit liability
Other

2,429,790
1,572,854
6,935

3,178,010
1,816,159
7,432

Total non-current liabilities

4,009,579

5,001,601

10,665,464

11,387,955

5,197,909
6,660,831
8,665,046(3,281,839)

5,218,512
6,768,841
5,224,287(3,257,237)

17,241,947

13,954,404

Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

165,205
5,908
13,87975,55489,490(53,931)

Total accumulated other comprehensive income

Liabilities
Current liabilities
Accounts payable-trade
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Contract liabilities
Provision for point card certificates
Provision for directors’ bonuses
Other
Total current liabilities－
30,609413,577

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income

184,993

111,114

Subscription rights to shares
Non-controlling interests

161,887
3,654,545

110,774
3,701,436

Total net assets

21,243,375

17,877,729

31,908,839

29,265,684

Total liabilities and net assets

6

(2) Consolidated statement of income and consolidated comprehensive income
Consolidated statement of income
Previous fiscal year
(from October 1, 2020
to September 30, 2021)
25,743,006
7,001,132
18,741,873（Unit: thousands of yen）
Current fiscal year
(from October 1, 2021
to September 30, 2022)
26,479,310
7,787,727
18,691,583

Selling, general and administrative expenses

16,811,994

17,820,953

Operating income

1,929,879

870,629

234

135
7,012
102,308
13,542

Net sales
Cost of sales
Gross profits

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Subsidy income
Cancellation of treasury share acquisition rights gains
Gain on share exchange－
32,394
28,63821,424
12,102

Other

17,473－－24,780Total non-operating income

112,267

147,777

6,793
569,11471,5505,491
457,088

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Cancellation of treasury share acquisition rights losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of non-current assets
Gain on sales of investment securities

23,981－
69,871

671,438

532,451

1,370,708

485,955

3,030
3,184

Gain on sale of shares of subsidiaries and associates
Gain on change in equity
Gain on reversal of share acquisition rights－
80,08254,810－－12,41776,48154,027

Total extraordinary income

141,107

142,925

8,223
65,492

119
27,816428,318

897,949

－
11

3,240

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss on sale of investment securities
Loss on valuation of investment securities
Loss on step acquisitions
Retirement benefit expenses－
23,702

Total extraordinary losses

525,748

933,826

Profit (loss) before income taxes

986,066(304,944)

2,538,565(22,880)

718,258
40,756

Income taxes - current
Income taxes-deferred

－
4,700
－

Total income taxes

2,515,685

759,015

Loss(1,529,619)(1,063,960)(365,396)(133,485)(1,164,222)(930,474)

Loss attributable to non-controlling interests
Loss attributable to owners of parent

7

Consolidated statement of comprehensive income
Previous fiscal year
(from October 1, 2020
to September 30, 2021)(1,529,619)（Unit: thousands of yen）
Current fiscal year
(from October 1, 2021
to September 30, 2022)(1,063,960)

102,593
16,843(32,130)(89,830)
82,773(67,810)42,8361,597

130,143(73,270)

Comprehensive income(1,399,475)(1,137,230)(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests(1,033,469)(1,004,354)(366,006)(132,876)

Loss
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income8(3) Consolidated statement of changes in equity
Previous fiscal year (from October 1, 2020 to September 30, 2021)(Unit: thousands of yen)
Shareholders’ equity

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

Capital stock

Capital surplus

5,138,116

6,551,222

Retainedearnings

Treasury stock

Total
shareholders’equity10,707,058(3,283,663)

19,112,733－

5,138,116

6,551,222

59,79359,793

10,707,058(3,283,663)

19,112,733

Changes during period
Issuance of new shares exercise ofsubscription rights to shares
Dividends of surplus
Loss attributable to owners ofparentIncrease (decrease) consolidated
subsidiaries
Change in equity in affiliates
accounted for by equity method
treasury stock

119,586(877,789)(877,789)(1,164,222)(1,164,222)

67,757

Cancellation of treasury shares

67,757(17,941)(16,117)(16,117)

17,941－

Net changes of items other thanshareholders’ equity
Total changes of items during period
Balance at end of current period

59,793

109,608(2,042,011)

1,823(1,870,786)

5,197,909

6,660,831

8,665,046(3,281,839)

17,241,947

Accumulated other comprehensive income

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

19,897(11,666)

Subscription
rights toshares

Noncontrollinginterests

Total net
assets345,2991,998,309

21,510,583

Total otherRemeasurements
accumulatedof definedcomprehensive
benefit plansincome46,01054,241－
19,897(11,666)

46,01054,241

345,2991,998,309

21,510,583

Changes during period
Issuance of new shares exercise ofsubscription rights to shares

119,586

Dividends of surplus(877,789)

Loss attributable to owners ofparentIncrease (decrease) consolidated
subsidiaries
Change in equity in affiliates
accounted for by equity method
treasury stock(1,164,222)
67,757(16,117)Cancellation of treasury shares－

Net changes of items other thanshareholders’ equity

145,308

17,574(32,130)

130,752(183,411)

1,656,236

Total changes of items during period

145,308

17,574(32,130)

130,752(183,411)

1,656,236(267,208)

Balance at end of current period

165,205

5,908

13,879184,993

161,887

3,654,545

21,243,375

9

1,603,577

Current fiscal year (from October 1, 2021 to September 30, 2022)(Unit: thousands of yen)
Shareholders’ equity

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

Capital stock

Capital surplus

5,197,909

6,660,831

Retainedearnings

Treasury stock

Total
shareholders’equity(3,281,839)

17,241,947

8,665,046(1,630,684)

5,197,909

6,660,831

20,603

20,603(1,630,684)

7,034,361(3,281,839)

15,611,263

Changes during period
Issuance of new shares exercise ofsubscription rights to shares
Dividends of surplus
Loss attributable to owners ofparentIncrease (decrease) consolidated
subsidiaries
Change in equity in affiliates
accounted for by equity method
treasury stock

41,207(879,599)(879,599)(930,474)(930,474)

112,008

112,008－

Cancellation of treasury shares(24,601)

24,601－

Net changes of items other thanshareholders’ equity
Total changes of items during period
Balance at end of current period

20,603108,010(1,810,074)

24,601(1,656,858)

5,218,512

6,768,841

5,224,287(3,257,237)

13,954,404

Accumulated other comprehensive income

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

165,205

5,908

Subscription
rights toshares

Noncontrollinginterests

Total net
assets161,887

3,654,545

21,243,375

Total otherRemeasurements
accumulatedof definedcomprehensive
benefit plansincome13,879184,993(1,630,684)
165,205

5,908

13,879184,993

161,887

3,654,545

19,612,690

Changes during period
Issuance of new shares exercise ofsubscription rights to shares

41,207

Dividends of surplus(879,599)

Loss attributable to owners ofparentIncrease (decrease) consolidated
subsidiaries
Change in equity in affiliates
accounted for by equity method
treasury stock(930,474)
112,008－

Cancellation of treasury shares－

Net changes of items other thanshareholders’ equity(89,650)

83,582(67,810)(73,879)(51,113)46,890(78,102)

Total changes of items during period(89,650)

83,582(67,810)(73,879)(51,113)46,890(1,734,960)

Balance at end of current period

75,55489,490(53,931)

111,114110,774

3,701,436

17,877,729

10

（4）Consolidated statement of cash flows
Previous fiscal year
(from October 1, 2020
to September 30, 2021)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for point usage

986,066
1,238,825
428,318
215,632(17,968)
4,705（Unit: thousands of yen）
Current fiscal year
(from October 1, 2021
to September 30, 2022)(304,944)
1,493,718
897,949
247,076923

153,130
(234)
6,793

－
149,703(7,147)
5,491

569,114457,088－(80,082)

4,700(76,481)

Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Gain on reversal of share acquisition rights
Decrease (increase) in trade receivables

5,193
65,492(3,184)
11(54,810)
343,745

119
27,816(9,176)－(54,027)
362,410Decrease (increase) in advance payments to suppliers
Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable-other
Increase (decrease) in trade payables
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued expenses

184,974(6,343)
177,933
40,719(113,766)(1,902)51,601
14,917
23,740(117,663)(13,164)(3,260)

Increase (decrease) in accrued consumption taxes
Other, net

351,860
159,647(442,813)(944,069)

Subtotal

4,653,873

1,764,509

Interest and dividends received
Interest paid
Income taxes refund (paid)

234(6,793)(1,130,434)

6,089(5,491)(3,158,660)

Net cash provided by (used in) operating activities

3,516,879(1,393,553)

Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on step acquisitions
Loss (gain) on change in equity

11

（Unit: thousands of yen）
Current fiscal year
(from October 1, 2021
to September 30, 2022)

Previous fiscal year
(from October 1, 2020
to September 30, 2021)
Cash flows from investing activities
Purchase of property, plant and equipment（134,086)
220(1,641,958)
4,250(83,303)
17,353(274,144)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries and associates
Payments for transfer of business
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Proceeds from refund of leasehold and guarantee
deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from share issuance to non-controllingshareholders
Cash dividends paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Purchase of treasury share acquisition rights(84,236)－(2,114,326)－－
16,196(80,000)－(237,515)－(29,000)－

14,014

232,6612,512(37,266)(28,244)(1,996,273)(2,460,600)

4,000,000(4,000,000)－(451,780)

204
(204)
1,500,000(476,435)

70,30239,874

2,115,000

285,000(877,789)(879,599)－(85,400)(181,550)

Purchase of treasury shares of subsidiaries(25,000)－(39,900)

Net cash provided by (used in) financing activities

649,182

343,539

Effect of exchange rate change on cash and cash equivalents

16,267

68,187

Net increase (decrease) in cash and cash equivalents

2,186,056(3,442,426)

Cash and cash equivalents at beginning of period

13,354,028

15,540,084

Cash and cash equivalents at end of period

15,540,084

12,097,658

12