Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

May 9, 2024

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024
(Under Japanese GAAP)
Company name: Japan Communications Inc.
Listing:
Tokyo Stock Exchange: Prime Market
Securities code:
9424
URL:
URL http://www.j-com.co.jp/
Representative:
Naohisa Fukuda, Representative Director-President
Inquiries:
Mitsuru Kodaira, Executive Officer and CFO
Telephone:+81-3-5776-1700
Scheduled date of ordinary general meeting of shareholders:June 26, 2024
Scheduled date to commence dividend payments:–
Scheduled date to file annual securities report:
June 27, 2024
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors, analysts and thepress)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31,
2024)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net revenue

Operating profit

Fiscal year ended

Millions of yen

March 31, 2024

7,400

21.8

1,139

53.7

March 31, 2023

6,074

31.1

740

165.1

Note: Comprehensive income%

Millions of yen%

Millions of yen

Fiscal year ended

Diluted earnings
per share

Yen

%

1,183

51.6

780

161.1

For the fiscal year ended March 31, 2024:
For the fiscal year ended March 31, 2023:

Basic earnings
per share

Profit attributable toowners of parent

Ordinary profit¥1,304 million¥649 million

Return on equity

Yen

Millions of yen

%

1,365

97.7

690

134.8

[101.0%][154.9%]Ratio of ordinary
Ratio of operating
profit to total assets profit to net revenue

%

%

%

March 31, 2024

8.27

8.27

65.5

31.8

15.4

March 31, 2023

4.19

4.15

67.2

31.3

12.2

Reference:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2024:¥18 million
For the fiscal year ended March 31, 2023:¥15 million(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

March 31, 2024

4,409

2,979

62.8

16.78

March 31, 2023

3,040

1,534

46.1

8.50

Reference:

EquityAs of March 31, 2024:
As of March 31, 2023:¥2,768 million¥1,402 million

1

%

Yen

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Fiscal year ended

Millions of yen

Millions of yen

March 31, 2024

1,071

(213)

75

2,518

March 31, 2023

851

(200)

(1)

1,580

Millions of yen

Millions of yen

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen
Fiscal year ended

March 31, 2023
Fiscal year ended

March 31, 2024

Yen

Fiscalyear-end

Yen

Yen

Total

Total cash
dividends(Total)Yen Millions of yen

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)
%

%

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

Fiscal year ending

March 31, 2025–

(Forecast)

3. Overview and management policy for the fiscal year ending March 31, 2025
To achieve the mission of carrying bit in safety and security, the Company provides mobile telecommunications
service and provides telecommunications and authentication infrastructure whose identification and authenticity
are secured by FPoS, the Company’s patented technology. In the mobile telecommunications service, theCompany agreed with NTT DOCOMO, INC. (DOCOMO) about the interconnection with DOCOMO’s voice and
SMS network in February 2024 and the Company plans to provide new service based on the interconnection in
May 2026. Herewith, the Company will be able to develop new business as Neo-Carrier and the Company
assumes to provide 10 million mobile telecommunications lines in 2034. In the FPoS business, its technicalsecureness and institutional reliability owing to accreditation under the Electronic Signatures Act have been so
evaluated that it is expected to grow in geometric progression and the Company assumes to provide 100 million
electronic certificates in 2034. The Company assumes that the above two service will bring us domestic net
revenue of 240 billion yen and profit after tax of 36 billion yen in 2034.
First, the Company will proceed to prepare for the interconnection with DOCOMO’s voice and SMS network forthe launch of new service in May 2026 and will make efforts to expand customer base through actions to increaseawareness at the same time, and the Company will continue to make efforts to establish evaluation of FPoS andto expand cases using FPoS.

2

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: Yes(iv) Restatement: None
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024

165,009,239 shares

As of March 31, 2023

165,009,239 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2024

15,004 shares

As of March 31, 2023

15,004 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2024

164,994,235 sharesFiscal year ended March 31, 2023

164,714,410 shares

3

[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 toMarch 31, 2024)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net revenue

Operating profit

Ordinary profit

ProfitFiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2024

7,247

24.7

1,294

54.6

1,257

50.6

1,398

95.0

March 31, 2023

5,811

28.9

837

137.7

835

141.7

717

126.8

Basic earnings
per share

Diluted earnings
per share

Fiscal year ended

Yen

Yen

March 31, 2024

8.47

8.47

March 31, 2023

4.35

4.31

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

March 31, 2024

4,382

2,901

63.5

16.87

March 31, 2023

3,203

1,462

42.7

8.28

Reference:

EquityAs of March 31, 2024:
As of March 31, 2023:%

Yen¥2,784 million¥1,366 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
A financial results meeting will be held on Friday, May 10, 2024 for institutional investors, analysts and thepress. The Company plans to post a video of this financial results meeting on its website promptly after the
meeting is held.

4

1. Operating results and financial position(1) Operating results for the year ended March 31, 2024(i) Mobile Communications Service
Upon a ruling by the Minister of Internal Affairs and Communications in June 2020, since the Company
launched the “Nihon Tsushin SIM” which provides flat-rate voice plans equivalent to that of major mobile
phone operators in July 2020, the Company has continued to achieve growth both in the number ofsubscribed lines and quarterly revenue.
The Company is planning to make a difference from other MVNOs in improvement of convenience tostrengthen the product competitiveness of “Nihon Tsushin SIM.” In April 2022, the Company started
supporting eSIM, which is embedded in devices such as smartphones (announced on April 6, 2022). Before
March 2023, the Company introduced an identification method using electronic certificates stored in
Individual Number Card in identification under the Mobile Phone Improper Use Prevention Act. In May
2023, the Company started to support the MNP one-stop system (Note).
The Company has enhanced the merchantability of “Nihon Tsushin SIM” from April 2023 to March 2024
by increasing data amount and expanding voice option service, etc., while keeping basic monthly fees
unchanged. As a result, the “Nihon Tsushin SIM” lineup in May 2024 includes the “Reasonable Simple 290
Plan (1 GB; 290 yen per month)” for low data usage, the “Reasonable Minna-no Plan (10 GB + “all-youcan-calls” for calls no longer than 5 minutes (or 70 minutes of free voice calls); 1,390 yen per month)” foraverage data usage, and the “Reasonable 30-GB Plan (30 GB + “all-you-can-calls” for calls no longer than
5 minutes (or 70 minutes of free voice calls); 2,178 yen per month)” for slightly high data usage, and thatenables customers to choose the most reasonable mobile communication billing plan for themselves.
In addition, the voice service of the “Nihon Tsushin SIM” is not provided in prefix method, which has been
adopted by many of MVNOs, and the Company provides services of comparable call quality as major
mobile phone operators, though the price of the service is the lowest in Japanese mobile telecommunicationsindustry.
As the above products being evaluated, revenue from “Nihon Tsushin SIM” has been growing steadily forboth individual and corporate subscribers. In addition, the number of customers for voice services underpartner brands has also been increasing steadily, and as a result, the mobile telecommunication service hascontinued to see growth both in the MVNO Business and the Enabler Business.
In addition, though the Company achieved the interconnection with DOCOMO’s data network following
the ruling by the Minister of Internal Affairs and Communications in 2007, the Company has not been able
to achieve interconnection with voice network because of problems of restrictions regarding mobile phone
numbers or other reasons. However, responding to the policy of allocating mobile phone numbers to
MVNOs presented by the Information and Communications Council of the Ministry of Internal Affairs andCommunications in December 2021, the Company had requested DOCOMO for an interconnection with
their voice network in June 2022 and agreed with them about the interconnection in February 2024.
Though the Company have had interconnection with DOCOMO’s data Network since 2008, data network
is a very small part of the mobile network. Therefore, by realizing an interconnection with DOCOMO’s
voice network (and SMS network) in the future, the Company will finally achieve an interconnection withmobile network in the original meaning.
As a result, The Company will secure a stable business foundation and aim to be a “Neo-Carrier” who canprovide comparable services as major mobile phone operators without owning mobile base stations. As newservices that the Company will provide as Neo-Career, international roaming by direct contract with foreign
mobile network carrier, flexible price plans such as billing for arriving calls, automation of APN settings,
Wi-Fi authentication using a SIM, telecommunication service that covers both of inside of local area andoutside of local area where the connection is based on MNO cellular base station contract by just one phone
number, and so on are considered.
In order to launch new service on May 24, 2026 based on the interconnection with DOCOMO’s voice
network (and SMS network), the Company will proceed to receive allocation of mobile phone number from
the Ministry of Internal Affairs and Communications, to construct the Company’s voice network (and SMS
network), and to develop the Company’s original SIM as speedily as possible.

5Note:The MNP one-stop system allows customers who wish to switch to another carrier without changing
their mobile number (this is called “MNP”) to complete the MNP procedure simply by applying on
the website of the carrier to which they are switching, without having to obtain an MNP reservation
number from the carrier to which they subscribed.

(ii) Communications Business through Local Mobile Networks (Local 4G/5G Business)
In the local 4G/5G business, the Company aims to build advanced showcases in the U.S. and leverage thisexperience to expand in Japan. The U.S. subsidiary of the Company operates a business that provides SIMs
used for connections with local mobile networks in the U.S. market.
As announced in December 2023, the Company’s U.S. subsidiary, JCI US Inc. (hereinafter referred to as“JCIUS”), entered into a contract with the State of Utah in the U.S. to implement a statewide Citizens
Broadband Radio Service (CBRS) (local 4G/5G) for an educational and telehealth network. It means that
JCIUS entered into a contract with the State of Utah through the University of Utah and the Utah Education
and Telehealth Network (hereinafter referred to as “UETN”) to provide the Company’s Secure LTE Network
Gateway Platform (NGP) services in its first major commercial implementation. The local 4G/5G networks
envisioned in this contract will replace and expand the service requirements of Wi-Fi and provide secure(private/closed) networks for the University of Utah and for the current and future users of high-speed
broadband services implemented by UETN. JCIUS will provide all necessary SIMs and/or other Hardware
Security Modules (HSM) to enhance connectivity to networks for the people of the State of Utah.
Through the U.S. subsidiary, the Company is accumulating technologies and expertise on thecommunications business through local mobile networks (local 4G/5G business), and by utilizing thesetechnologies and expertise, the Company provides SIMs that can connect to local mobile networks set up
by partner and customer companies. The Company will continue to accumulate knowledge in Japan and the
U.S., and will utilize this knowledge to develop case examples in the local 4G/5G business.
(iii) Providing Telecommunications and Authentication Infrastructure Using FPoS
As digital transformation (DX) underway in many areas of society and the economy, the importance ofdigital IDs is recognized again, and the Company is pushing forward with a business that will establish andprovide digital IDs that can be used on smartphones using FPoS, the Company’s patented technology. FPoS
guarantees the identity (confirmation of the person’s identity) and authenticity (confirmation that theperson’s intent is not falsified) of a customer by examining the combination of a public key contained in anelectronic certificate issued to the customer’s smartphone (iPhone and Android) by an electronic
certification authority accredited under the Electronic Signatures Act and a private key generated in thecustomer’s smartphone.
This is a mechanism similar to the solid identification by an Individual Number Card, and FPoS uses asmartphone instead of an Individual Number Card. Currently, the digital IDs having such high-level security
are nothing but an Individual Number Card and FPoS. While an Individual Number Card is restricted its
purpose of use and required to be carried with, FPoS is not restricted its purpose of use and it can be usedby smartphone, having a high security equal to an Individual Number Card.
When a customer uses a service through application(s) on a smartphone, there is a problem that the customer
could be impersonated and the customer’s data (including personal information) could be falsified, however,if that service is secured by FPoS, the customer could not be impersonated and the data could not be falsified,because FPoS has a security equal to an Individual Number Card. And there is also a problem that thecustomer cannot manage the operators who can access to the customer’s data (including personal
information), however, if that service is secured by FPoS, the customer can confirm and manage theoperators who can access to the customer’s data (including personal information) easily, because FPoS has
a function of “Dynamic Opt-in” to display the list of the recipients of the customer’s personal informationand to allow the customer to authorize or revoke the provision of the personal information.
In order to demonstrate the above potential of FPoS, the Company is cooperating with Mebuku Ground Inc.,a private-public partnership company made up of Maebashi City, private-sector business enterprises anduniversities. Since October 2022, Mebuku Ground Inc. has been operating “Mebuku App” which issues“Mebuku ID,” a digital ID using FPoS technology.

6

The greatest strength of “Mebuku ID” is its high security by FPoS, but in addition, its greatest differentiating
factor is its ability to securely and reliably link personal information held by multiple business operators
through its high security. The everyday activities of people span across multiple domains, such as
government-operated public domains, medical and educational institutions, and other quasi-public domains,and besides those, the various private domains. If personal information can be securely and reliably linked
across all these domains, it will be possible to provide services that are individually optimized for each user
and to visualize various social issues by presenting data that can generate new value, thereby providing
clues toward solutions. In addition, since “Mebuku ID” implements a “Dynamic Opt-in” function, data
sharing can be implemented based on the consent of users.
The “Mebuku ID” is not only far more secure than other IDs, but is also highly regarded by many local
governments, companies, and organizations for its ability to link data across business operators, and for its
Dynamic Opt-in function that provides information of which business operators or service are eligible tolink the data.
Furthermore, “Mebuku Pay,” Maebashi City’s electronic local currency, was launched in December 2023
through “Mebuku ID” and “Mebuku App” (announced by Maebashi City and Mebuku Ground Inc. in
September 2023). “Mebuku Pay” was designed and developed with the highest priority placed on givingback to the local community by ensuring that payment data remains in the community and is utilized locally.
The Company believes that “Mebuku ID” and “Mebuku Pay” can be an effective means to solve social
issues, as they enable communities to reap the benefits of social and economic digitalization.
In addition, benefit money for nurturing and non-taxable family unit in Maebashi City is paid in “Mebuku
Pay.” This is achieved because of the high-level security of “Mebuku ID” and ability to link personal
information safely and surely owing to a consent of the person by a function of “Dynamic Opt-in.”
In March 2024, “Mebuku ID” and data cooperation infrastructure was started to be used actively in Ohmura
City, Nagasaki prefecture, following Maebashi City, Gunma prefecture and Ebetsu City, Hokkaido
prefecture. In this project, Mebuku Ground Inc. issues “Mebuku ID” and CONNECT Kabushiki Kaisha, aprivate-public partnership company, whose head office is in Ohmura City, Nagasaki prefecture operates a
happy cycle community, such as “Omusubi,” the portal apps of Ohmura City and “Yudepi,” a digital local
currency.
The Company will support the activity local horizontal activity by Mebuku Ground Inc. continuously.
As a result of the above, the Group’s consolidated net revenue for the current fiscal year was 7,400 million yen,
an increase of 1,326 million yen (up 21.8%) compared to the previous fiscal year (hereinafter referred to as the“previous year”). This was because of the growth of the flat-rate or semi-flat-rate voice services centered on“Nihon Tsushin SIM” in the MVNO Business (up 23.9% from the previous year) and the growth of the voiceservices of partner brands in the Enabler Business (up 19.7% from the previous year).
Cost of revenue was 4,138 million yen, an increase of 683 million yen (up 19.8%) compared to the previous
year. This was mainly due to an increase in mobile network procurement costs associated with the growth of“Nihon Tsushin SIM.” The increase in cost of revenue can be contained because the mobile networks of bothdata and voice communications procured by the Company from DOCOMO have been set not to exceed theamount of the appropriate costs under efficient management plus appropriate profit.
As a result, gross profit was 3,262 million yen (2,619 million yen for the previous year), selling, general andadministrative expenses was 2,123 million yen (1,878 million yen for the previous year), and operating profit
was 1,139 million yen (740 million yen for the previous year).
During the three months ended June 30,2023, a final judgment was rendered in a lawsuit between the Company
and Quanta Computer Inc. In conjunction with the finalization of the judgment, the Company recorded
extraordinary income of 363 million yen, resulting in profit attributable to owners of parent of 1,365 million
yen (690 million yen for the previous year).

7

Financial results by business are as follows:(Millions of yen)
Year-on-year change(%)

Net revenue

For the year ended
March 31, 2023

For the year ended
March 31, 2024

MVNO Business

3,063

3,797

733

23.9

Enabler Business

3,011

3,603

592

19.7

Total

6,074

7,400

1,326

21.8

Year-on-year change

Revenue of 118 million yen (122 million yen for the previous year) from overseas operations in the segment
information is included in the Enabler Business.
(2) Financial position of the year ended March 31, 2024
AssetsCurrent assets at the end of the current fiscal year were 3,552 million yen, an increase of 1,240 million yen
compared to the end of the previous year. This was mainly due to increases of 937 million yen in cash anddeposits, 148 million yen in accounts receivable-trade, and 111 million yen in accounts receivable-other. Noncurrent assets were 856 million yen, an increase of 128 million yen compared to the end of the previous year.
This was mainly due to increases of 86 million yen in property, plant and equipment, and 52 million yen in
intangible assets.
As a result, total assets amounted to 4,409 million yen, an increase of 1,369 million yen compared to the end of
the previous year.
Liabilities
Current liabilities at the end of the current fiscal year were 1,302 million yen, a decrease of 123 million yen
compared to the end of the previous year. This was mainly due to a decrease of 287 million yen in valuation
reserve for inventory purchase commitments while there were increases of 43 million yen in accounts payableother, 81 million yen in income taxes payable, and 274 million yen in deposits received. Non-current liabilities
were 127 million yen, an increase of 47 million yen compared to the end of the previous year. This was mainly
due to an increase of 36 million yen in lease liabilities.
As a result, liabilities amounted to 1,429 million yen, a decrease of 76 million yen compared to the end of theprevious year.
Net assets
Net assets at the end of the current fiscal year were 2,979 million yen, an increase of 1,445 million yen comparedto the end of the previous year. This was mainly due to recording of 1,365 million yen in profit attributable toowners of parent.
As a result, the equity ratio was 62.8% (46.1% at the end of the previous year).
(3) Status of cash flows for the year ended March 31, 2024
Cash and cash equivalents at the end of the current fiscal year were 2,518 million yen, an increase of 937 million
yen compared to the end of the previous year.
The status of cash flows and their factors at the end of the current fiscal year are as follows.
Cash flows from operating activities
Net cash provided by operating activities totaled 1,071 million yen (an inflow of 851 million yen in the previousyear). This was mainly due to recording of 1,547 million yen in profit before income taxes and 175 million yen
in depreciation, while there were recording in reversal of provision for valuation reserve for inventory purchasecommitments of 287 million yen, an increase in trade receivables of 145 million yen, and a decrease in trade
payables of 274 million yen.

8

Cash flows from investing activities
Net cash used in investing activities totaled 213 million yen (an outflow of 200 million yen in the previous year).
This was mainly due to payments for purchase of property, plant and equipment of 95 million yen, and purchaseof intangible assets of 121 million yen.
Cash flows from financing activities
Net cash provided by financing activities totaled 75 million yen (an outflow of 1 million yen in the previousyear). This was mainly due to 93 million yen of proceeds from share issuance to non-controlling shareholders.
(4) Outlook for the fiscal year ending March 31, 2025 and beyond
To achieve the mission of carrying bit in safety and security, the Company provides mobile telecommunications
service and provides telecommunications and authentication infrastructure whose identification and authenticity
are secured by FPoS, the Company’s patented technology. In the mobile telecommunications service, theCompany agreed with NTT DOCOMO, INC. (DOCOMO) about the interconnection with DOCOMO’s voiceand SMS network in February 2024 and the Company plans to provide new service based on the interconnectionin May 2026. Herewith, the Company will be able to develop new business as Neo-Carrier and the Company
assumes to provide 10 million mobile telecommunications lines in 2034. In the FPoS business, its technicalsecureness and institutional reliability owing to accreditation under the Electronic Signatures Act have been so
evaluated that it is expected to grow in geometric progression and the Company assumes to provide 100 million
electronic certificates in 2034. The Company assumes that the above two service will bring us domestic net
revenue of 240 billion yen and profit after tax of 36 billion yen in 2034.
First, the Company will proceed to prepare for the interconnection with DOCOMO’s voice and SMS network
for the launch of new service in May 2026 and will make efforts to expand customer base through actions toincrease awareness at the same time, and the Company will continue to make efforts to establish evaluation of
FPoS and to expand cases using FPoS.

2. Basic concept regarding the selection of accounting standards
The Group prepares its consolidated financial statements in accordance with Japanese GAAP, in light of thecomparability of periods of consolidated financial statements and between companies, as well as the burden of
preparing consolidated financial statements under International Financial Reporting Standards (IFRS). The
Company’s policy is to take an appropriate response with respect to the timing of the adoption of IFRS, taking into
consideration various conditions in Japan and overseas.

9

3. Consolidated Financial Statements(1) Consolidated Balance Sheet(Thousands of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Supplies
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Patent right
Trademark right
Software
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Leasehold and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets

10

As of March 31, 2024

1,580,619
576,323
75,46265
103
83,011△3,1382,312,448

2,518,019
724,584
69,063
68
111,888
132,634△3,2753,552,984

106,085△84,942
21,142
7,027△5,596
1,430
876,556△773,909
102,647
285,882△266,737
19,144－
144,365

87,186△75,030
12,156
11,021△7,181
3,840
828,696△672,218
156,478
342,537△288,421
54,1154,460
231,051

4,727
3,229
264,297
9,752
282,007－
3,308
290,865
40,599334,773

128,570
133,884
39,228
301,683
728,056
3,040,504

149,841
106,910
34,193290,946856,771
4,409,755

(Thousands of yen)
As of March 31, 2023
Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - other
Income taxes payable
Unearned revenue
Deposits received
Valuation Reserve For Inventory PurchaseCommitments
Other
Total current liabilities
Non-current liabilities
Long-term accounts payable - other
Long-term unearned revenue
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

11

As of March 31, 2024

630,125
78,842
109,651
120,872
66,559356,786
122,801
190,655
113,829
341,072

287,979－

132,150
1,426,180

177,347
1,302,492

6,102
56,613
17,212
79,9281,506,108

12,22561,30953,829127,364
1,429,857

535,822
224,109530,319△2,192
1,288,058

545,666
233,952
1,895,653△2,192
2,673,080

114,472

95,854

114,472

95,85496,21835,646
1,534,395
3,040,504

116,272
94,6902,979,898
4,409,755

(2) Consolidated Statement of Income and Consolidated Statements of Comprehensive Income
Consolidated Statement of Income(Thousands of yen)
Fiscal year ended
March 31, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Share of profit of entities accounted forusing equity method
Foreign exchange gains
Recoveries of written off receivables
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Amortization of share issuance costs
Amortization of bond issuance costs
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Compensation for damage income
Reversal of provision for valuation reservefor inventory purchase commitments
Total extraordinary income
Profit before income taxes
Income taxes - current
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

12

Fiscal year ended
March 31, 2024

6,074,613
3,455,323
2,619,289
1,878,386
740,9037,400,748
4,138,372
3,262,376
2,123,302
1,139,073

9

18

15,10818,321

13,556－
13,86342,537

21,7045,990
3,290
49,324

589
376
1,937
67
2,970
780,470

1,794
－
－
3,084
4,879
1,183,519－

75,869－287,979－
780,470
118,941
118,941
661,529△29,146
690,676

363,848
1,547,368
224,089
224,089
1,323,278△42,055
1,365,334

Consolidated Statement of Comprehensive Income(Thousands of yen)
Fiscal year ended
March 31, 2023
ProfitOther comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

13

Fiscal year ended
March 31, 2024

661,529

1,323,278△12,342△12,342649,186△18,618△18,618
1,304,660

678,333

1,346,715△29,146△42,055

(3) Consolidated Statement of Changes in Equity
Previous fiscal year (From April 1, 2022 to March 31, 2023)(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

Retained earnings△6,977,888

Treasury shares△2,192

Total shareholders'equity4,528,440

2,977,376

525,737

35,82235,822

71,645△4,028,440

4,028,440－

Changes during period
restricted stock
Transfer from sharecapital to other capitalsurplus
Deficit disposition△6,817,531

Profit (loss)
attributable to owners ofparentNet changes in items
other than shareholders'equityTotal changes during period
Balance at end of period

6,817,531－

690,676

690,676△3,992,618△2,753,267

7,508,207－

762,321535,822

224,109530,319△2,192

1,288,058

Accumulated other comprehensive income

Balance at beginning of
periodForeign currencytranslation
adjustment

Total accumulated
other comprehensive
income126,815

126,815

Share acquisitionrights67,864Non-controllinginterests

64,792

Total net assets

785,210

Changes during period
restricted stock

71,645

Transfer from sharecapital to other capitalsurplus－

Deficit disposition－

Profit (loss)
attributable to owners ofparentNet changes in items
other than shareholders'equity690,676△12,342△12,342

28,353△29,146△13,135

Total changes during period△12,342△12,342

28,353△29,146

749,185

Balance at end of period

114,472

114,472

96,21835,646

1,534,395

14

Current fiscal year (From April 1, 2023 to March 31, 2024)(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

535,822

224,109

9,843

9,843

Retained earnings
530,319

Treasury shares△2,192

Total shareholders'equity1,288,058

Changes during period
restricted stock
Profit (loss)
attributable to owners ofparentNet changes in items
other than shareholders'equityTotal changes during period
Balance at end of period

19,6871,365,334

1,365,334

9,843

9,843

1,365,334－

1,385,021

545,666

233,952

1,895,653△2,192

2,673,080

Share acquisitionrightsNon-controllinginterests

Total net assets

Accumulated other comprehensive income

Balance at beginning of
periodForeign currencytranslation
adjustment

Total accumulated
other comprehensive
income114,472

114,472

96,21835,646

1,534,395

Changes during period
restricted stock
Profit (loss)
attributable to owners ofparentNet changes in items
other than shareholders'equityTotal changes during period
Balance at end of period

19,6871,365,334△18,618△18,618

20,05459,04460,480△18,618△18,618

20,05459,044

1,445,502

95,854

95,854116,272

94,6902,979,898

15

(4) Consolidated Statement of Cash Flows(Thousands of yen)
Fiscal year ended
March 31, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted
for using equity method
Foreign exchange losses (gains)
Reversal of provision for valuation reservefor inventory purchase commitments
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in accounts receivable other
Increase (decrease) in unearned revenue
Increase (decrease) in Long-term unearned
revenue
Increase/decrease in consumption taxes
payable/consumption taxes refund receivable
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Compensation for damage income
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold andguarantee deposits
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Payments for retirement by purchase of shareacquisition rights
Repayments of lease liabilities
Proceeds from share issuance to noncontrolling shareholders
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodCash and cash equivalents at end of period

16

Fiscal year ended
March 31, 2024

780,470
75,904△9589

1,547,368
175,684△18
1,794△15,108△18,321△15,077△23,581－△287,979△192,551△30,947
207,955△145,683
5,975△274,427

475△111,784

611△11,3831,837△7,411

3

28,54578,856
893,0099△369△41,306－

286,014
1,164,791
18△1,794△167,030
75,869851,341

1,071,855△39,932△110,238△50,000△3,747△95,487△121,070△2,950△1,311

3,065

7,528

－

10

△200,851△213,280－△8,529△1,160△9,790－93,332△1,16075,012

2,601

3,813

651,931

937,400

928,688

1,580,619

1,580,619

2,518,019