V. Financial Information
1. Approach for Preparing Financial Statements
Artner prepares its financial statements in accordance with the Regulation on Terminology, Forms, and Preparation Methods ofFinancial Statements (Ministry of Finance Order No. 59 of 1963).

2. Audit Certification
Artner had its financial statements for the fiscal year (from February 1, 2023 to January 31, 2024) audited by KPMG AZSA LLC
in accordance with Article 193-2, paragraph (1) of the Financial Instruments and Exchange Act.

3. Consolidated Financial Statements
Since it has no subsidiary, Artner does not prepare consolidated financial statements.

4. Special Efforts to Ensure the Appropriateness of Financial Statements
Artner makes special efforts to ensure the appropriateness of its financial statements. More specifically, we have joined the
Financial Accounting Standards Foundation to keep ourselves updated in order to maintain a correct understanding ofaccounting standards and other rules, thereby preparing to take the right actions when any changes are made to these standards
and rules.

- 43 -

1【Non-consolidated Financial Statements, etc. 】(1)【Non-consolidated financial statements】(i)【Non-consolidated balance sheets】(Thousands of yen)
As of January 31, 2023
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Work in process
Raw materials and supplies
Prepaid expenses
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Total property, plant and equipment
Intangible assets
SoftwareTelephone subscription right
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term prepaid expenses
Deferred tax assets
Leasehold and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets- 44 -

As of January 31, 2024

3,975,881
1,129,522
4,099
3,689
30,788365
23,610(6,700)5,161,256

4,277,610
1,240,516
5,357
3,455
45,848573
34,292(7,400)5,600,255

109,981(72,934)
37,046
1,172(1,172)051,188(33,494)
17,69325,68580,42492,265(59,506)
32,758－－－48,178(36,818)
11,36025,68569,80325,715
1,654
27,37023,324
1,654
24,97910,0991,250
563
296,162
94,8761,185
404,137
511,932
5,673,188

1,570
1,200
671
319,608
94,786
1,211
419,048
513,831
6,114,087

(Thousands of yen)
As of January 31, 2023
Liabilities
Current liabilities
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Unearned revenue
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Provision for retirement benefits
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Legal capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets- 45 -

As of January 31, 2024

279,675
82,074
179,813
221,798
17,70037
165,195
7,290
953,585

272,523
95,003
343,469
210,039
20,245－
188,499
21,491
1,151,271

671,645
671,645
1,625,230

691,661
691,661
1,842,933

238,284

238,284

168,323
168,323

168,323
168,323

10,46010,46040,0003,585,798
3,636,258(739)
4,042,126

40,0003,814,139
3,864,599(869)
4,270,337

5,832

815

5,832
4,047,958
5,673,188815
4,271,153
6,114,087

(ii)【Non-consolidated statements of income】(Thousands of yen)
Fiscal year ended
January 31, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission income
Sales income of training materials
Rental income from land and buildings
Dividend income of insurance
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Cancellation penalty
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit- 46 -

Fiscal year ended
January 31, 2024

9,242,360
6,168,503
3,073,856
1,879,747
1,194,108

10,110,524
6,571,185
3,539,339
2,016,489
1,522,849

1
284
574
593
408
6,870
594
1,130
10,457

1
179
574
518
302
7,297
783
1,263
10,920

130
1,330
49
1,511
1,203,054

98
1,020
35
1,153
1,532,616

－
－

7,938
7,938

0
0
1,203,054
348,034(40,127)
307,906
895,148

13,197
13,197
1,527,357
496,775(21,235)
475,540
1,051,817

[Cost of Sales Statement]

ClassificationNote
number

FY2023 (Fiscal year ended January 31,
2023)

FY204 (Fiscal year ended January 31,
2024)

Amount (thousands of yen)

Ratio (%)

Amount (thousands of yen)

5,981,094

96.9
3.1

6,341,944

I. Labor cost
II. Expenses

190,557

Total manufacturing cost for theperiodBeginning inventory of work inprocess
Total

6,171,652

Ratio (%)
96.5
3.5

230,499
100.0

6,572,443

950

4,099

6,172,602

6,576,543

4,099

5,357

6,168,503

6,571,185

100.0

*2

Ending inventory of work inprocess
Cost of sales for the period

FY2023 (Fiscal year ended January 31, 2023)

1. Cost accounting method
Job costing based on actual costs*2 Details are as shown below:
Travel and transportation
JPY 81,585 thousand
Rent
JPY 19,138 thousand

FY2024 (Fiscal year ended January 31, 2024)

1. Cost accounting method
Job costing based on actual costs*2 Details are as shown below:
Travel and transportation
JPY 86,294 thousand
Rent
JPY 17,417 thousand- 47 -

(iii)Non-consolidated statements of changes in equity

Fiscal year ended January 31, 2023
(Thousands of yen)
Shareholders' equity
Capital surplus
SharecapitalBalance at beginning of
periodRetained earnings

238,284

168,323

Other retained earnings

Legalretainedearnings

Legal capital Total capitalsurplussurplus168,323

Generalreserve

10,46040,000Retainedearnings brought
forward

Total retained
earnings

3,120,984

3,171,444

Dividends of surplus(430,334)(430,334)

Profit895,148895,148

Changes during period

Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

－

－

－

－

－

464,813464,813238,284

168,323

168,323

10,46040,0003,585,798

3,636,258

Shareholders' equity

Valuation and translation adjustments

Treasury Total shareholders' Valuation difference on
available-for-sale securities
equitysharesBalance at beginning of
period(739)

3,577,312

4,933

Total valuation andTotal net assets

translation adjustments
adjustments

4,933

3,582,246

Changes during period
Dividends of surplus(430,334)(430,334)

Profit895,148895,148

Net changes in items
other than shareholders'equity

898

898

898

Total changes during period－

464,813898

898

465,711

Balance at end of period(739)

4,042,126

5,832

5,832

4,047,958- 48 -

Fiscal year ended January 31, 2024
(Thousands of yen)
Shareholders' equity
Capital surplus
SharecapitalBalance at beginning of
periodRetained earnings

Legal capitalsurplusTotal
capitalsurplus168,323

168,323

238,284

Legalretainedearnings
10,460

Other retained earnings
General Retained earnings
reservebrought forward
40,000Total retained
earnings

3,585,798

3,636,258

Dividends of surplus(823,476)(823,476)

Profit

1,051,817(1,051,817)

Changes during period

Acquisition of Treasury
SharesNet changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

－

－

－

－

－

228,341

228,341

238,284

168,323

168,323

10,46040,0003,814,139

3,864,599

Shareholders' equity

Balance at beginning of period

Valuation and translation adjustments

TreasurysharesTotalshareholders'equityValuation difference on
available-for-sale securities

Total valuation andtranslation adjustments(739)

4,042,126

5,832

5,832

Total net
assets
4,047,958

Changes during period
Dividends of surplus(823,476)(823,476)

Profit

1,051,817

1,051,817

(129)

(129)

Acquisition of Treasury
SharesNet changes in items otherthan shareholders' equity(129)

Total changes during period(129)

Balance at end of period(869)(5,016)(5,016)(5,016)228,211(5,016)(5,016)

223,195

4,270,337

815

815

4,271,153- 49 -

(iv)【Non-consolidated statements of cash flows】(Thousands of yen)
Fiscal year ended
January 31, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Interest and dividend income
Interest expenses
Loss on retirement of non-current assets
Loss (gain) on sale of investment securities
Decrease (increase) in accounts receivable - other
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Proceeds from sale of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 50 -

Fiscal year ended
January 31, 2024

1,203,054
25,922700
23,745
92,111
(285)
130
0
－
970
(118,368)(3,20018,531
24,1394,945
1,272,396
285(130)(399,953)
872,598

1,527,357
24,717700
23,30420,016(181)
98
13,197(7,938)(207)(110,993)(1,025)(11,759)(8,116(5,343)
1,463,826
181(98)(337,660)
1,126,248(7,042)(7,099)(10,154)(2,398)(12,922)
(54)

238

144

－
(26)
(24,085)

9,231
23(5,975)－(426,831)(426,831)
421,6813,554,199
3,975,881(129)(818,414)(818,544)
301,729
3,975,881
4,277,610

[Notes](Significant Accounting Policies)
1. Basis and method for valuation of securities
Available-for-sale securities
Securities other than shares that do not have a market value
Fair value method (with the entire amount of valuation differences inserted directly into net assets, and the cost of sales calculatedusing the moving average method)
2. Basis and method for valuation of inventories(1)
Work in process
Job costing method (with the amount shown on balance sheet written down as profitability declines)(2)
Supplies
Job costing method (with the amount shown on balance sheet written down as profitability declines)
3. Depreciation method for non-current assets(1)
Property, plant and equipment
Declining balance method (note: straight-line method for buildings (excluding facilities attached to the buildings) acquired on orafter April 1, 1998, and for facilities attached to buildings and for structures acquired on or after April 1, 2016)
Service life of the assets is mostly as shown below:
Buildings:
8 - 26 years
Tools, furniture and fixtures:
4 - 15 years(2)
Intangible assets
Straight-line method is applied to software for internal use. The calculation is based on usable life within the Company (5 years).
4.
Recognition criteria for provisions(1)
Allowance for doubtful accounts
To make allowances for the non-payment of receivables, the historical default rate is used for general receivables; and receivables
designated as potentially irrecoverable is determined by reviewing actual collectability on an individual claim basis to record theestimated amount that is deemed irrecoverable.
(2)
Provision for bonuses
To make allowances for the payment of bonuses to employees, the amount that should be paid in the fiscal year under review isrecorded, out of the estimated payment in the following fiscal year.
(3)
Provision for retirement benefits
To make allowances for the payment of retirement benefits to employees, this is recorded based on the estimate for retirement
benefit liabilities as of the end of the fiscal year under review.
(i) Method for attributing estimated retirement benefit payments to the period
When calculating retirement benefit liabilities, the method for attributing estimated benefit payments to the periodthat lasts until the end of the fiscal year under review is as per the benefit formula basis.
Method for processing actuarial gains and losses as expenses
Actuarial gains and losses are treated as expenses in the fiscal year following the fiscal year in which they arise. The
amount is proportionally divided using the straight-line method over a certain number of years (five years) that iswithin the average number of employees’ remaining service years at the time the differences emerge each fiscal year.
5.
Recognition criteria for revenue and expenses(ア) Engineer dispatching services
Artner assigns its engineers to client companies based on staffing agreements to offer services over the terms of the agreements. We
judge that our obligation is fulfilled with the passing of engineers’ hours of operation, and thus we recognize revenue based onengineers’ records of operation during the term.
(イ) Contracting
Artner receives contracts from client companies for design and development, along with other relevant work. We ensure that(ii)

completed work is delivered or operations are performed according to our instructions pursuant to each agreement with a client. We
recognize revenue upon completion of the client’s inspection or of operations performed, as we judge that our obligation is fulfilledthen.
6.
Cash included in the statement of cash flows
The cash included in the statement of cash flows consists of cash on hand, savings available for withdrawal at any time, andshort¬term investments that can easily be converted into cash, have only a limited risk of price fluctuations, and are redeemedwithin three months from the date of acquisition.

- 51 -

1.

(Regarding Non-consolidated Balance Sheet)
Artner has entered into overdraft agreements with its six banks in order to ensure efficient financing for working capital.
The table below shows the balances of borrowings available for withdrawal according to the agreements.
FY2023 (As of January 31, 2023)
FY2024 (As of January 31, 2024)

Overdraft limit
Outstanding borrowing

JPY 1,450,000 thousand－

JPY 1,450,000 thousand－

1,450,000

1,450,000

Balance(Regarding Non-consolidated Statement of Income)*1 Selling expenses accounted for approximately 7% in FY2023, and 7% in FY2024, and general and administrative expenses
93% in FY2023, and 93% in FY2024.
The table below shows the main item of selling, general and administrative expenses, and the amounts thereof.
FY2023(Fiscal year ended January 31, 2023)

FY2024(Fiscal year ended January 31, 2024)

JPY668,997thousand
75,885
168,516
23,79928,826
175,562
25,626

JPY 670,160 thousand
103,230
172,051
27,48918,476
220,184
24,383700

700

Salaries and allowances
Travel and transportation
Rent
Provision for bonuses
Retirement benefit expenses
Commission paid
Depreciation
Provision of allowance for doubtful accounts- 52 -

(Regarding Non-consolidated Statement of Changes in Equity)
FY2023 (Fiscal year ended January 31, 2023)
1. Matters concerning the type and total number of shares issued, and the type and total number of treasury shares
Number of shares at
beginning of FY2023(shares)

Increase in shares during Decrease in shares during Number of shares at end
FY2023 (shares)
FY2023 (shares)of FY2023(shares)

Shares issued
Common shares

10,627,920－－

10,627,920

Total

10,627,920－－

10,627,920

Common shares

2,376

－

－

2,376

Total

2,376

－

－

2,376

Treasury shares

2. Matters concerning dividends(1) Dividends paid
Total amount ofdividends(thousands ofyen)
Ordinary General Meeting of Common
217,823
Shareholders on April 21, 2022
sharesResolution

Board of Directors Meeting on
September 8, 2022

Type ofsharesCommonsharesDividend pershare (yen)Record date

Effective date

20.50

January 31,
2022

April 22, 2022

20.00

July 31,2022

October 7, 2022

212,510(2) Dividends with a record date in the fiscal year under review and an effective date in the following fiscal year
amount of Source of funds Dividend perType of Total
dividends
Resolution
Record date
Effective dateshares (thousands of yen) for dividends
share (yen)Ordinary General Meeting of Common
Shareholders on April 27, 2023 shares

425,021

Retainedearnings

40.00

January 31, 2023

April 28, 2023

FY2024 (February 1, 2023 to January 31, 2024)
1. Matters concerning the type and total number of shares issued, and the type and total number of treasury shares
Number of shares at
Increase in shares during Decrease in shares during Number of shares at end
beginning of FY2024
FY2024 (shares)
FY2024 (shares)of FY2024 (shares)(shares)
Shares issued
Common shares

10,627,920－－

10,627,920

Total

10,627,920－－

10,627,920

Common shares

2,376

93

－

2,469

Total

2,376

93

－

2,469

Treasury shares

2. Matters concerning dividends(1) Dividends paid
Total amount ofdividends(thousands ofyen)
Ordinary General Meeting of Common
425,021
Shareholders on April 27, 2023 shares
Board of Directors Meeting on Common
398,454
September 8, 2023
sharesResolution

Type ofsharesDividend pershare (yen)Record date

40.00

January 31,
2023

April 28, 2023

37.50

July 31,2023

October 6, 2023

- 53 -

Effective date(2) Dividends with a record date in the fiscal year under review and an effective date in the following fiscal year
Resolution

Type of shares

Ordinary General
Meeting of
Shareholders on
April 25, 2024

Common shares

Total amount ofdividends(thousands of yen)

Source of funds
for dividends

Dividend pershare (yen)398,454 Retained earnings

Record date

37.50 January 31, 2024

Effective date

April 26, 2024

(Regarding Non-consolidated Statement of Cash Flows)*1 Relationship between cash and cash equivalents at the end of the period and the amount for the account title shown in thebalance sheet
FY2023(Fiscal year ended January 31, 2023)

FY2024(Fiscal year ended January 31, 2023)

Cash and deposit account

JPY3,975,881thousand

JPY 4,277,610thousand

Cash and cash equivalents

3,975,881

4,277,610(Regarding Lease Transactions)
Notes on this matter have been omitted because they are of little importance.
Regarding Financial Instruments)
1.
Matters concerning financial instruments(1)
Policy on financial instruments
Artner limits its fund management to short-term deposits or any equivalents, and it has the policy that it raises funds mostly byborrowing from banks.
(2)
Description of financial instruments, risks involved therein, and risk management framework
Accounts receivable are exposed to clients’ credit risk. We mitigate this risk in line with our credit management policy.
(3)
Supplementary explanations about matters concerning the fair values of financial instruments
Variable factors are taken into account when the fair value of a financial instrument is calculated. Hence, the value may fluctuate
when different prerequisites are used.
2.

Matters concerning the fair values of financial instruments
Notes on cash, deposits, and accounts receivable have been omitted because they are in cash, and because their fair value
approximates carrying amounts as they are paid/made in a short term.
Note: Planned redemption amounts after the closing date for monetary claims
FY2023 (As of January 31, 2023)
Within 1 year
(thousands of yen)

Cash and deposits Accounts receivable - trade

3,975,707
1,129,522

Total

5,105,230

More than 1 year, More than 5 years, More than 10
within 5 years
within 10 years years (thousands of(thousands of yen) (thousands of yen)

yen)

－

－

－

－
－

－
－

－
－

FY2024 (As of January 31, 2024)

Within 1 year
(thousands of yen)

Cash and deposits Accounts receivable - trade3.

4,277,451
1,240,516

More than 1 year, More than 5 years, More than 10
within 5 years
within 10 years years (thousands of(thousands of yen) (thousands of yen)

－

－

yen)

－

－
－
－
5,517,967
－
－
－
Total
Matters concerning the breakdown of financial instruments by each fair value level Notes on the matters have been omitted
because they are of little importance.

- 54 -

(Regarding Investment Securities)
1. Available-for-sale securities
FY2023 (As of January 31, 2023)
Type
Securities recorded on balance
sheet at amount that exceeds Stockacquisition cost

Amount recorded on balance
sheet (thousands of yen)

Difference(thousands of yen)

10,099

1,697

8,401

10,099

1,697

8,401

－

－

－

－

－

－

10,099

1,697

8,401

Amount recorded on balance
sheet (thousands of yen)

Acquisition cost(thousands of yen)

Subtotal

Securities recorded on balance Stock
sheet at amount that does notexceed acquisition cost

Acquisition cost(thousands of yen)

Subtotal

Total
FY2024 (As of January 31, 2024)
Type
Securities recorded on balance
sheet at amount thatStockexceeds acquisition cost
Securities recorded on balance Stock
sheet at amount that does notexceed acquisition cost

Subtotal

Subtotal

Total

Difference (thousands of
yen)

1,570

395

1,175

1,570

395

1,175

－

－

－

－

－

－

1,570

395

1,175

2. Available-for-sale securities soldFY2023 (As of January 31, 2023)
Not applicable.
FY2024 (As of January 31, 2024)
Type
Stock

Total gain on sale (thousands
Total loss on sale (thousandsof yen)of yen)Sold at (thousands of yen)
9,332

- 55 -

7,938－

(Regarding Derivatives)
Not applicable, as Artner does not trade derivatives.
(Regarding Retirement Benefits)
1.
Summary of the retirement benefit plan used
Artner uses the defined benefit retirement lump sum payment plan and the define contribution pension plan to pay
retirement benefits to its employees.
2.
Defined benefit plan
(1) Reconciliation of the beginning and ending balances of retirement benefit liabilities
FY2023 (Fiscal year ended
January 31, 2023)

FY2024 (Fiscal year ended
January 31, 2024)

JPY653,266 thousand

JPY 529,360 thousand

Service expenses
Interest expenses
Actuarial gains and losses incurred

69,6655,467(186,550)

51,7489,142(18,718)

Retirement benefit payments(12,489)(22,878)

Balance of retirement benefit liabilities at end of period

529,360

548,654

Balance of retirement benefit liabilities at beginning of period(2) Reconciliation of the ending balance of retirement benefit liabilities and the provision for retirement benefits recorded on
the balance sheet
FY2023 (As of January 31,
2023)
Retirement benefit liabilities in non-savings-type plan
Retirement benefit liabilities unfunded

FY2024 (As of January 31,
2024)

JPY529,360 thousand
529,360

JPY 548,654 thousand
548,654

Unrecognized actuarial gains and losses

142,284

143,007

Net liabilities and assets recorded on balance sheet

671,645

691,661

Provision for retirement benefits

671,645

691,661

Net liabilities and assets recorded on balance sheet

671,645

691,661

FY2023(As of January 31, 2023)

FY2024(As of January 31, 2024)(3) Itemized retirement benefit expenses

Service expenses
Interest expenses
Actuarial gains and losses processed as expenses

JPY 69,665 thousand
5,467
29,468

JPY 51,748 thousand
9,142(17,995)

104,600

42,894Retirement benefit expenses for defined benefit plan(4) Matters concerning the basis for actuarial calculations
Basis for key actuarial calculations
FY2023(As of January 31, 2023)
1.7%

Discount rate

FY2024(As of January 31, 2024)
1.7%

To project the rates of increase in salary, we use pay raise indexes by age calculated with September 1 of the fiscal year being
the base date.

- 56 -

3. Defined contribution plan
Artner’s required contributions to the defined contribution plan were JPY 60,975 thousand for the previous fiscal year and
JPY 64,319 thousand for the fiscal year under review.
(Regarding Stock Options)Not applicable.
(Regarding Tax Effect Accounting)1.

Breakdown of deferred tax assets and deferred tax liabilities by main cause
FY2023(As of January 31, 2023)

Deferred tax assets
Enterprise tax payable

FY2024(As of January 31, 2024)

JPY 13,287 thousand

JPY 16,825 thousand

12,84850,516205,389
2,048
4,642

14,51757,642
211,510
2,262
4,642

9,999

12,566

298,731319,967(2,569)(359)

Total deferred tax liabilities(2,569)(359)

Net deferred tax assets

296,162

319,608

Accrued expenses
Provision for bonuses
Provision for retirement benefits
Allowance for doubtful accounts
Impairment loss
Other
Total deferred tax assets
Deferred tax liabilities
Valuation difference on available-for-sale securities

2.

Statutory effective tax rate and main causes of the difference from the income tax burden rate after the application of tax
effectFY2023(As of January 31, 2023)

Statutory effective tax rate

FY2023(As of January 31, 2024)

30.6％(Adjustments)
Items that are permanently excluded from deductible
expenses such as entertainment expenses
Inhabitant tax on per capita basis

0.1

Tax credit through taxation as an incentive to hire
human resources and for other purposes

(5.0)

0.2

Other

(0.3)
25.6

Income tax burden rate after the application of tax
effect accounting(Equity in Earnings)
Not applicable.
(Regarding Business Combination)
Not applicable.
(Regarding Asset Retirement Obligations)
Notes on this matter have been omitted because they are of little importance.

- 57 -

Notes have been omitted
because the difference
between the statutory
effective tax rate and theincome tax burden rate after
the application of tax effectaccounting is five-hundredths
or less of the statutory
effective tax rate.

(Regarding Investment and Rental Property)
Notes on this matter have been omitted because the total amount of investment and rental property is of little importance.
(Regarding Revenue Recognition)
1.

Disaggregation of revenue generated from contracts with clients

FY2023(Fiscal year ended January 31, 2023)
Engineer dispatching services

FY2024(Fiscal year ended January 31, 2024)

JPY 8,413,395 thousand

JPY 9,116,361 thousand

Contracting

794,627

943,575

Other

34,33750,587

9,242,360

10,110,524－－

9,242,360

10,110,524

Revenue generated from contracts with clients
Other revenue
Net sales to external clients2.

Basic information for understanding revenue generated from contracts with clients
Basic information for understanding revenue is as stated in “(Significant Accounting Policies) 5. Recognition criteria forrevenue and expenses.”

3.

Information for understanding the revenue amounts in the fiscal year under review and subsequent fiscal years
Balance of receivables arisen from contracts with clients
FY2023

Receivables arisen from contracts with clients
Accounts receivable - trade (beginning balance)
Accounts receivable - trade (ending balance)

JPY 1,011,154 thousand
1,129,522

FY2024
JPY1,129,522 thousand
1,240,516(Segment Data)[Segment data]
Since we have only one reportable segment, notes on this matter have been omitted.
[Related information]
FY2023 (Fiscal year ended January 31, 2023)
1.

Information by product and service
Since our business is in a single segment, notes on this matter have been omitted.

2.

Information by region(1)

Net sales
Not applicable because we have no sales to external clients outside Japan.

(2)

3.

Property, plant and equipment
Not applicable because none of our property, plant and equipment are located outside Japan.
Information by major customer

Client name / Company name
Honda Motor Co., Ltd.

(Unit: thousands of yen)
Net sales
1,051,753

Note: Since our business is in a single segment, names of related segments have been omitted.
FY2024 (Fiscal year ended January 31, 2024)
1.
Information by product and service
Since our business is in a single segment, notes on this matter have been omitted.

- 58 -

2.

Information by region(1) Net sales
Not applicable because we have no sales to external clients outside Japan.
(2) Property, plant and equipment
Not applicable because none of our property, plant and equipment are located outside Japan.
3.

Information by major customer(Unit: thousands of yen)
Client name / Company name
Honda Motor Co., Ltd.

Net sales
1,292,593

Honda R&D Co., Ltd.

1,026,843

Note: Since our business is in a single segment, names of related segments have been omitted.
[Information about impairment loss on non-current assets in each reportable segment]
Not applicable.
[Information about amortization and unamortized balance of goodwill in each reportable segment]
Not applicable.
[Information about gain on bargain purchase in each reportable segment]
Not applicable.
[Information about related parties]
Not applicable.
(Per Share Information)
FY2023

FY2024(Fiscal year ended January 31, 2023)
Net assets per share

JPY 380.96
JPY 84.24

Earnings per share(Fiscal year ended January 31, 2024)
JPY 401.97
JPY 98.99

Notes: 1. Diluted earnings per share are not shown because we have no dilutive shares.
2. The table below shows the bases for calculations of earnings per share.
FY2023

Y2024(Fiscal year ended January 31, 2023)
Profit (thousands of yen)Amounts not attributable to common shareholders(thousands of yen)
Profit pertaining to common shares (thousands ofyen)
Average number of common shares outstanding
during the period(Material Post-Balance Sheet Events)
Not applicable.

- 59 -(Fiscal year ended January 31, 2024)

895,148

1,051,817－－

895,148

1,051,817

10,625,544

10,625,474

(v) Supplementary schedule[Statement of property, plant and equipment]

Asset TypeBalance at
beginning of
period(thousands ofyen)

Accumulated
Increase during Decrease during Balance at end of depreciation/
periodperiodperiodamortization at(thousands of(thousands of(thousands ofend of period
yen)
yen)
yen)
(thousands ofyen)

Amortization inperiod(thousands ofyen)

Balance at endof period(thousands ofyen)

Property, plant and equipment
109,981348

18,06392,26559,506

4,085

32,758Structures

1,172

－

1,172

－

－

－

－

Tools, furniture and fixtures

51,188

2,305

5,314

48,17836,818

4,609

11,360Land

25,685－－25,685－－25,685

188,026

2,653

24,550166,129

96,325

8,694

69,803

127,241

13,632

7,873

133,000

109,676

16,02323,324

Telephone subscription right

1,654

－

－

1,654

－

－

1,654

Total intangible assets

128,895

13,632

7,873

134,655

109,676

16,023

24,979Buildings

Total property, plant andequipment
Intangible assets
Software[Statement of bonds]
Not applicable.
[Statement of borrowings]
Not applicable.
[Statement of provisions]Classification
Allowance for doubtful accounts
Provision for bonuses

Balance at
Decrease during
Decrease during Balance at end of
Increase during
beginning of
period (spending
period (thousands
period (thousands
period (other)for purpose)
period (thousandsof yen)of yen)(thousands of yen) (thousands of yen)of yen)
6,700

7,400

－

6,700

7,400

165,195

188,499

165,195－

188,499

Note: “Decrease during period (other)” under allowance for doubtful accounts is the amount updated using the loan loss ratio forgeneral receivables.
[Statement of asset retirement obligations]Not applicable.

- 60 -

(2) Details of Main Assets and Liabilities(i)
Assets(a) Cash and deposits
Classification

Amount (thousands of yen)

Cash

159

Deposits
Current deposits

4,164,898

Ordinary deposits

50,018Special deposits

2,535Time deposits

60,000Subtotal

4,277,451

Total

4,277,610(b) Accounts receivable
Breakdown by client
ClientAmount (thousands of yen)

Honda Motor Co., Ltd.

225,454

Honda R&D Co., Ltd.

158,878

Nikon Corporation

74,378Lasertec Corporation

54,512

Terumo Corporation

40,659Other

686,631Total

1,240,516

Accounts receivable accrued, collected, or outstanding
Accrued during
Balance at
beginning of period period (thousandsof yen)(thousands of yen)

Collected during
period (thousandsof yen)Balance at end of
period (thousandsof yen)Collection rate (%)

Overdue (days)(A) ＋ (D)
2

(C)
(A)
1,129,522(B)

11,121,530(C)

11,010,536(D)

1,240,516

× 100(A) ＋ (B)

(B)
365

89.9

38.9

Note: The accrued amount includes consumption tax.
(c) Work in process
Item

Amount (thousands of yen)Contracting business

5,357
Total

5,357

- 61 -

(d) Raw materials and supplies
Item

Amount (thousands of yen)

Printed matter

2,974

Quo cards

480

Revenue stamps

1
3,455

Total
(e)

Deferred tax assets
Deferred tax assets totaled JPY 319,608 thousand. Details thereof are stated in “1. Financial Statements and Other Documents
Financial Statements Notes (Regarding Tax Effect Accounting).”(ii)

Liabilities(a) Income taxes payable
Classification

Amount (thousands of yen)

Income taxes payable

343,469

Total

343,469(b) Provision for retirement benefits
Classification

Amount (thousands of yen)

Retirement benefit liabilities

548,654

Unrecognized actuarial gains and losses

143,007Total(3)

143,007

Other
Quarterly financial information for the fiscal year under review(Cumulative)

Q1

Q2

Q3

Full year

Net sales (thousands of yen)

2,493,648

5,006,636

7,553,937

10,110,524

Profit before income taxes(thousands of yen)

479,100

890,768

1,184,001

1,527,357

Profit (thousands of yen)

333,186

617,721820,498

1,051,817

Earnings per share (yen)

31.36

58.14

77.22

98.99

(Accounting period)
Earnings per share (yen)

Q1

Q2
31.36

Q3
26.78

- 62 -

Q4
19.08

21.77