Non-Consolidated Financial Results
for the Three Months Ended July 31, 2021
[Japanese GAAP]
September 6, 2021
Company name: Asukanet Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 2438
URL: https://www.asukanet.co.jp
Representative: Yuji Matsuo, Representative Director & President
Contact: Kenya Kono, Senior Managing Director & CFO
Phone: +81-82-850-1200
Scheduled date of filing quarterly securities report: September 14, 2021
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Not availableSchedule of quarterly financial results briefing session: Not scheduled(Amounts of less than one million yen are rounded down.)
1. Non-Consolidated Financial Results for the Three Months Ended July 31, 2021
(May 1, 2021 to July 31, 2021)(1) Non-Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Three months ended
July 31, 2021
July 31, 2020

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

1,466
1,259

16.4
(18.3)

42(40)-420(99.6)

28(1)-Basic earnings
per share

Diluted earnings pershare

Three months ended
Yen
Yen
July 31, 2021
1.69
July 31, 2020
(0.08)(Note) The change from the previous corresponding period in ordinary income for the three months ended July 31,2021 is not presented as it exceeds 1,000%.
(2) Non-Consolidated Financial Position
Total assets

Net assets

Million yen

6,387
As of July 31, 2021
6,465
As of April 30, 2021
(Reference) Equity: As of July 31, 2021: ¥5,737 million
As of April 30, 2021: ¥5,825 million

Equity ratio

Million yen%

5,7375,825

89.8
90.1

2. Dividends
Annual dividends
2nd
3rdquarter-end
quarter-end

1stquarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended April 30, 2021

-

0.00

-

7.00

7.00

Fiscal year ending April 30, 2022

-

7.00

7.00

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

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

Full year
6,270
8.62852.7285 (13.9)(Note) Revision to the financial results forecast announced most recently: No

Million yen%

Yen

200(11.3)

11.87* Notes:(1) Accounting policies adopted specially for the preparation of quarterly financial statements: Yes(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
July 31, 2021: 17,464,000 shares
April 30, 2021: 17,464,000 shares2) Total number of treasury shares at the end of the period:
July 31, 2021: 615,057 shares
April 30, 2021: 615,057 shares
3) Average number of shares during the period:
Three months ended July 31, 2021: 16,848,943 shares
Three months ended July 31, 2020: 16,840,943 shares* These quarterly financial results are outside the scope of quarterly review procedures by a certified public
accountant or an audit corporation.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently
available to the Company and certain assumptions that the Company believes are reasonable, and actual results
may differ significantly from these forecasts due to a wide range of factors.

4. Overview of Business Results(1) Overview of Business Results during this Quarter
During the first consolidated quarter of this fiscal year, as the economy of Japan continued to suffer the effects ofthe coronavirus pandemic, states of emergency were declared and quasi-emergency measures were enacted.
Economic activity has stalled as a result of requests to close businesses, people avoiding going out, and other factors.
Although there are expectations for a recovery in personal consumption as progress in vaccinations is made, thefuture remains uncertain.
Asukanet operates three business areas, each with different positioning and characteristics. They are (1) thefuneral business, which adds digital processing and remote output services for photos of the deceased to a funeralbusiness that is largely unaffected by economic trends, (2) the photo book business, which provides ideas for new
photo output methods that allow users to create complete photo collections beginning from just a single book, and(3) the aerial display business, which is utilizing unique, recently-developed technologies aiming to create a newmarket and achieve dreams.
Beginning from the fiscal year beginning May 1, 2021, the memorial design business was renamed the funeralbusiness, the personal publishing business was renamed the photo book business, and the aerial imaging business
was renamed the aerial display business.
Following is an overview of the business results for each segment. The result figures for each segment include
internal inter-segment sales.
(Funeral business）
In this business, although funerals continue to be reduced in size as a result of the coronavirus pandemic, there
was an increase in the holding of funerals themselves compared to the same period in the previous year. As a result,
there was a recovery in our primary business areas – processing photos of the deceased, and videos and other funeralproduction services. This also led to an increase in sales of frames and supplies. Consequently, sales were higher than
the same period in the previous year. For the “tsunagoo” service which is one type of our “funeral tech” that hasbrought extensive use of IT technologies to the funeral market, we released the “tsunagoo AFTER” function thatmakes it possible to smoothly report the successful completion of a funeral. This function was exhibited at theFuneral Business Fair exhibition that was held in June. We also created a website that introduces the booth contents
and the exhibited products and services for persons who were unable to attend the exhibition.
In terms of profit and loss, despite the increase of advertising expenses and depreciation expenses, there was anincrease in sales. These factors resulted in higher profits compared with the same period in the previous fiscal year.
As a result, 1Q sales were 627,305 thousand yen (114.5% year-on-year), and 1Q segment income was 135,758
thousand yen (132.5% year-on-year).
(Photo book business）
This business operates AsukaBook for the professional photography market in Japan, and MyBook for the general
Japanese consumer market. We are also engaged in OEM supply of photo albums and photo prints based on photos
that were taken with smartphones.
In the professional photographers market, our primary business of wedding photo albums saw difficult sales due tothe many delayed weddings and other effects of the coronavirus pandemic. However, we can also see the trend ofrecovery and there were strong sales of studio photography. Then, sales were higher compared with the same period
in the previous fiscal year. Efforts in this business included releasing new products, exhibiting at the PHOTO
NEXT exhibition, and conducting online seminars.
The general consumer market continues to face difficult conditions resulting from the effects of voluntary
restrictions on activities such as traveling and events due to the coronavirus pandemic. The same trends can be seenin OEM supply as well. As a result, sales were down from the same period in the previous year.
In terms of profit and loss, we succeeded in increasing operating rate that accompanied the higher in sales, despitethe higher advertising expenses, travel and transportation expenses, and there was a large increase in segment income.
As a result, 1Q sales were 799,634 thousand yen (116.9% year-on-year), and 1Q segment income was 122,378
thousand yen (248.3% year-on-year).
（Aerial display business）
This business is aiming to create a market through new image and video expressions utilizing aerial imaging
technologies. We are developing, manufacturing, and selling both glass and plastic “ASKA3D plates” that utilize ouroriginal technologies to project images in mid-air.
In the area of marketing, we are carrying out sales centered on our Marketing Division in Japan, and centered on
our agents overseas. In addition to providing support for participating in exhibitions in China, we also achieved
results in terms of the numbers of installed products and verification testing. Although marketing activities aresubject to some restrictions due to the coronavirus pandemic, we are carrying out sales of glass ASKA3D plates for
signage applications, and of plastic ASKA3D plates for use in products that enable non-contact operation.
In terms of production and development, for both glass and plastic plates, we are continuing to work for stabilizing
production, expanding supply, and reducing costs through outside production. In addition to conducting repeatedtrials at our technical development center aimed at developing and establishing production technologies for glass
ASKA3D plates, we are also expanding the space and introducing new production equipment as we challenge
ourselves to produce large-size plates.
In terms of sales, we achieved higher in sales due to the increase in sales of glass ASKA3D plates.
In terms of profit and loss, segment loss increased due to the higher R&D expenses for improvements to ASKA3D
plates and the establishment of a technical development center resulted in higher advance expenses during thisquarter.
As a result, 1Q sales were 39,622 thousand yen (141.3% year-on-year), and 1Q segment loss was 76,727 thousandyen (compared to a loss of 52,602 thousand yen in the period of same quarter of the previous fiscal year).
As results of the above, sales were 1,466,562 thousand yen (116.4% compared to the same quarter of the previousfiscal year). In terms of income, despite the higher R&D expenses for the establishment of a technical development
center in the aerial display business, increase in segment income in the funeral business and photo book businessresulted ordinary income was 42,871 thousand yen (549 thousand yen in profit during the same quarter of the previousfiscal year) and net income was 28,428 thousand yen (1,376 thousand yen in loss during the same quarter of theprevious fiscal year).

(2) Overview of the Financial Status during this Quarter
Assets at the end of this first quarter decreased by 77,419 thousand yen from the end of the previous fiscal year toreach 6,387,930 thousand yen. This was primarily due to a decrease in cash and savings of 174,204 thousand yen and adecrease in accounts receivable-trade of 62,595 thousand yen despite of increase in machine and equipment of 107,860yen.
Liabilities at the end of this first quarter decreased by 10,402 thousand yen from the end of the previous fiscal year toreach 650,152 thousand yen.
Net assets at the end of this first quarter decreased by 87,821 thousand yen to reach 5,737,777 thousand yen. Thiswas primarily due to a decrease of 117,942 thousand yen in payment of dividends from surplus despite of increase inquarterly profit of 28,428 thousand yen.
(3) Future Outlook
No change of the future outlook for fiscal year ending in April 2022 announced on June 11 2021

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

Current 1st quarter(ended July 31, 2021)

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

1,640,884
713,400
229,146
128,592
79,99466,601(4,002)2,854,617

929,317467,896844,060
213,0812,454,356
224,742923,841
575,757
844,060
216,753
2,560,413
227,788533,204
181,849
715,054
3,394,153
6,465,349

559,846
185,263745,110
3,533,312
6,387,930

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

155,638
197,472
20,90080,970188,926
643,907

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

5,351
893
6,245
650,152

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

490,300
614,322
4,892,042(265,577)
5,731,087

4,997

6,690

4,997
5,825,599
6,465,349

6,690
5,737,777
6,387,930

(2) Profit and loss statement for 1st quarter

Net Sales
Cost of sales
Gross profit(unit:1000s yen)First quarter of the previous fiscal First quarter of the current fiscal
yearyear(May 1, 2020 – July 31, 2020)(May 1, 2021 – July 31, 2021)
1,259,398
1,466,562
708,912783,629
550,486

682,933

Selling, general, and administrative expenses

590,489

640,837

Operating income (loss)(40,003)

42,095Non-operating income
Interest received
Dividends received
Commissions receivedInsurance cancellation refund
Others309
675
69
32,600
7,635

147
600
70―
106

Total non-operating income

41,289

923

736

147

Non-operating expenses
Foreign exchange losses

736

147

Ordinary income

Total non-operating expenses

549

42,871

Extraordinary income
Income from sales of fixed assets

329―

Total extraordinary income

329

―

―
―

708
48

―

756

Extraordinary loss
Loss from sales of fixed assets
Loss from retirement of fixed assets
Total extraordinary income
Net income before taxes

879

42,114

Income taxes

2,256

13,686

Net income (loss)(1,376)28,428

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

Amountrecorded in
profit and loss
statement

1,259,398―

1,259,398

630

630

(630)

―

684,302

28,032

1,260,028(630)

1,259,398

49,276(52,602)

99,120(139,124)(40,003)

Funeral businessPhoto bookbusiness

Aerialdisplay business

547,693684,30227,402――547,693
102,446

Total

SalesSales to outside
customers
Inter-segment internalsales and transfers
Total
Segment income (loss)

Cumulative first quarter of the current fiscal year (May 1, 2021 – July 31, 2021)
Information related to the amounts of sales, income, and loss for each reporting segment(Units: 1,000s yen)
Reporting segment
Adjustments

Amountrecorded in
profit and loss
statement

1,466,562―

1,466,562―――

39,622

1,466,562―

1,466,562(76,727)

181,409(139,314)

42,095

Funeral businessPhoto bookbusiness

Aerialdisplay business

627,305

799,634

39,622―――627,305

799,634

135,758

122,378

Total

Sales
Sales to outside
customers
Inter-segment internalsales and transfers
Total
Segment income (loss)

Beginning from the fiscal year beginning May 1, 2021, the memorial design business was renamed the funeral business, thepersonal publishing business was renamed the photo book business, and the aerial imaging business was renamed the aerial
display business.

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