Non-Consolidated Financial Results
for the Nine Months Ended January 31, 2021
[Japanese GAAP]
March 8, 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: March 12, 2021
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Not available
Schedule 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 Nine Months Ended January 31, 2021
(May 1, 2020 to January 31, 2021)(1) Non-Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Nine months ended
January 31, 2021
January 31, 2020

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

4,189
4,954

(15.5)
5.9

140649(78.3)(7.1)

191651(70.6)
(7.2)

126
460

(72.5)(4.1)

Basic earnings
per share

Diluted earnings pershare

Nine months ended
Yen
Yen
January 31, 2021
7.50
January 31, 2020
27.32
(Note) Diluted earnings per share is not presented as there were no potential shares.
(2) Non-Consolidated Financial Position
Total assets

Net assets

Million yen

6,225
As of January 31, 2021
6,607
As of April 30, 2020
(Reference) Equity: As of January 31, 2021: ¥5,726 million
As of April 30, 2020: ¥5,750 million

Equity ratio

Million yen%

5,726
5,750

92.0
87.0

2. Dividends
1stquarter-end

2ndquarter-end

Yen

Yen

Annual dividends
3rdYear-end
quarter-end

Fiscal year ended April 30, 2020
0.00
Fiscal year ending April 30, 2021
0.00
Fiscal year ending April 30, 2021
(Forecast)(Note) Revision to the forecast for dividends announced most recently: No

Total

Yen

Yen

Yen-10.00

10.00

7.00

7.00

3. Non-Consolidated Financial Results Forecast for the Fiscal Year Ending April 30, 2021
(May 1, 2020 to April 30, 2021)(% 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
5,775(12.2)
200(71.8)
250(64.8)(Note) Revision to the financial results forecast announced most recently: NoMillion yen%

Yen

164 (67.2)

9.76* 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: No
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):
January 31, 2021: 17,464,000 shares
April 30, 2020: 17,464,000 shares2) Total number of treasury shares at the end of the period:
January 31, 2021: 615,057 shares
April 30, 2020: 623,057 shares
3) Average number of shares during the period:
Nine months ended January 31, 2021: 16,844,885 shares
Nine months ended January 31, 2020: 16,840,987 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 for these Three Quarters of Fiscal Year
During the first 3 quarters of this fiscal year, the economy of Japan continued to face harsh conditions
including deteriorating corporate profits and stagnating personal consumption as a result of the slowdown ineconomic activity caused by the global coronavirus pandemic. Although the initial state of emergency was later
terminated and there was a gradual resumption of economic activity, a new state of emergency was declared inJanuary 2021 and the future remains extremely uncertain.
Asukanet operates three business areas, each with different positioning and characteristics. They are (1) the memorial design
service business, which adds digital processing and remote output services for photos of the deceased to a funeral business thatis largely unaffected by economic trends, (2) the personal publishing 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 imaging
business, which is utilizing unique, recently-developed technologies aiming to create a new market and achieve dreams.
In January 2021, we released the web childbirth announcement service “e-tayori” which connects“congratulations” and “thank you”.
Following is an overview of the business results for each segment. The results figures for each segment include internal intersegment sales.
(1) Memorial design service businessIn this business, the coronavirus pandemic is continuing to limit the size of funerals, and although income
from processing photos of the deceased has recovered, sales of videos and other funeral production services
continue to face difficult conditions. In this economic environment, customers are putting off replacing
equipment, and equipment sales face a difficult struggle. Segment income was down from the same period in
the previous fiscal year.
We have added the new “inori” remembrance service that is unrestricted by time and place as part of our“tsunagoo” service that connects the bereaved and mourners. “Tsunagoo” is one type of our “funeral tech” thathas brought extensive use of IT technologies to the funeral market. We are continuing to improve thefunctions of “inori” and are focusing on expanding sales. Market penetration is continuing steadily, with morethan 50,000 uses of our death announcement service that utilizes “tsunagoo”. We are also utilizing “tsunagoo”
as an opportunity to acquire new contracts for processing photos of the deceased.
In terms of income, despite a reduction in advertising expenses, travel and transportation expenses, the decline in sales,
coupled with an increase in personnel costs for image processing operators as well as one-time cost for relocation of Kanto
Operation Center due to reduction of fixed expense, resulted in a decline in segment income.
As a result, sales were 1,825,298 thousand yen (95.3% year-on-year), and segment income was 439,520 thousand yen(87.9% year-on-year).
(2) Personal publishing service businessThis 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 takenwith smartphones.
In the professional photographers market, in addition to our own marketing activities, we also conducted
online seminars and updated our ordering tools and other services. However our primary business of wedding
photo albums saw difficult sales due to the many delayed weddings and other effects of the coronavirus
pandemic. However there were strong sales of products for architectural photography and studio photography.
In the general consumer market, we conducted the “MyBook” 20th anniversary campaign, as well as
effective advertising and use of SNS. We also conducted promotions for seasonal products such as calendars
and graduation albums. As a result, sales of photo albums intended to record the growth of children wererelatively strong. However sales of photo albums intended to commemorate travel and events struggled dueto the effects of the coronavirus pandemic. In OEM supply as well, sales were down as a result of fewer

opportunities to take photographs due to voluntary restrictions on travel and events.
In terms of income, we succeeded in reducing advertising expenses, travel and transportation expenses, delivery expense
and also restructured our production workplace personnel. However there were large effects from the declining operating ratethat accompanied the drop in sales, and there was a large decrease in segment income.
As a result, sales were 2,274,816 thousand yen (76.8% year-on-year), and segment income was 282,227 thousand yen(39.6% year-on-year).
(3) Aerial imaging businessThis business was launched in March 2011, 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” thatutilize our original technologies to project images in mid-air.
For glass ASKA3D plates, we are working to expand our supply system, and addressed issues in the process.
Based on a still limited supply capacity, we engaged in sales primarily for signage applications. We now havea target for resolving these issues and will expand our supply capacity through outside production in order toachieve stable production of large-size plates. At the same time, the technical development center that weestablished in order to shift mass-production technologies for glass ASKA3D plates in-house has carried out
repeated production of prototype products and is aiming first to establish a production system for low-costand small-size plates. It will then develop production technologies for large-size plates.
For plastic ASKA3D plates, in the environment of the coronavirus pandemic, much attention is being given to the use of
aerial imaging for touchless operations. We received numerous inquiries and proceeded with sample sales to use the plates
incorporated into products.
In the area of marketing, in addition to our sales through our own marketing activities in the Japan
market, we are also conducting sales through agents in three locations in overseas markets. We have seen
growing numbers of product installations and verification tests, as well as cases of commercialization bybusiness partners. We are continuing to work to obtain medium-lot size mass production orders. We are also
preparing to exhibit at the domestic exhibition Retailtech Japan.
In terms of sales, sales were higher than the same period in the previous fiscal year due to higher sales of plastic plates.
In terms of profit and loss, despite the reduction of advertizing expense and travel and transportation expense, the higher
R&D expenses required for the establishment of a technical development center resulted in a larger segment loss than the sameperiod in the previous fiscal year.
As a result, sales were 89,521 thousand yen (113.2% year-on-year), and segment loss was 190,836 thousand yen (comparedto a loss of 176,127 thousand yen in the same quarter of the previous year).
As a result of the above, sales were 4,189,007 thousand yen (84.5% year-on-year). In terms of income, primarily as a result thelarge decline in segment income in the personal publishing business, ordinary income was 191,249 thousand yen (29.4% yearon-year) and net income was 126,311 thousand yen (27.5% year-on-year).
(2) Overview of the Financial Status
Assets at the end of this third quarter decreased by 382,263 thousand yen from the end of the previous fiscal year to reach
6,225,425 thousand yen. Despite an increase in tangible fixed assets of 53,104 thousand yen due largely to expansion ofproduction equipment, this decrease was primarily due to the cash and savings of 506,809 thousand yen.
Liabilities at the end of this third quarter decreased by 358,405 thousand yen from the end of the previous fiscal year toreach 498,897 thousand yen. This was primarily due to a decrease in the provision for officer retirement benefits of 100,000
thousand yen, a decrease in income taxes payable of 87,100 thousand yen and a provision for bonuses of 74,600 thousand yen.
Net assets at the end of this third quarter decreased by 23,857 thousand yen from the end of the previous fiscal year to reach
5,726,528 thousand yen. This was primarily due to an increase of 126,311 thousand ye as a net income, decrease of 168,409
thousand yen as a result of dividend payments.

(3) Future OutlookNo change of the future outlook for fiscal year ending in April 2021 announced on Dec. 8 2020

5. Financial Statements for the First Three Quarters(1) Balance sheet(Units: 1,000s yen)Previous fiscal year
(ended April 30, 2020)
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
Provision for officer retirement benefit
OthersTotal current liabilities
Fixed liabilities
Provision for retirement benefits
OthersTotal fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustmentsValuation difference on available-for-salesecurities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

Current 3rd quarter(ended Jan. 31, 2021)

1,960,817
798,034
190,796
49,083
98,23829,155(4,351)
3,121,774

1,454,007
830,535
186,391
106,756
88,53861,239(6,088)2,721,380

905,868
448,625
844,060
236,969
2,435,524
221,573

940,978
510,345844,060
193,2442,488,629
244,364

523,634
305,182
828,816
3,485,914
6,607,688

533,474
237,577
771,051
3,504,045
6,225,425

167,630
162,859
87,100150,900
100,000
181,380
849,870

137,947
139,642―
76,300―138,243
492,134

6,009
1,423
7,432
857,303

5,613
1,149
6,763
498,897490,300
606,585
4,924,463(269,031)
5,752,316

490,300
606,585
4,890,102(265,577)
5,721,410(1,930)5,118(1,930)5,750,385
6,607,688

5,118
5,726,528
6,225,425

(2) Profit and loss statement

Net Sales
Cost of sales(unit:1000s yen)First three quarters of the previous First three quarters of the current
fiscal yearfiscal year
(May 1, 2019 – Jan. 31, 2020)(May 1, 2020 – Jan. 31, 2021)
4,954,648
4,189,007
2,413,601
2,278,324

Gross profit

2,541,046

1,910,682

Selling, general, and administrative expenses

1,891,619

1,769,998

649,426

140,684

770
950
287
―
―
1,224

478
1,275
222
32,60014,630
2,306

3,232

51,513

1,340
87

948
―

Operating income
Non-operating income
Interest received
Dividends received
Commissions received
Insurance cancellation refund
Subsidy income
Exclusion of unpaid dividend
OthersNon-operating expenses
Foreign exchange losses
OthersTotal non-operating expenses

1,427

948

651,231

191,249

Extraordinary income
Income from sales of fixed assets―

329

Ordinary income

Total extraordinary income―

329

Extraordinary losses
Loss from disposed fixed assets

145

3,047

Total extraordinary losses

145

3,047

Net income before taxes

651,086

188,530

Income taxes

191,052

62,219Net income

460,034

126,311(Additional information)(Accounting estimate of the effects of the coronavirus pandemic)
The coronavirus pandemic is having an effect on our business, including reduced funeral sizes and a decline
in orders for wedding photo albums.
In the “(Additional information) (Accounting estimate of the effects of the coronavirus pandemic)” in thefinancial results report from the consolidated first two quarters, we assumed that a gradual return to normal in
the memorial design business would begin in the third quarter, and that a gradual return to normal in the
personal publishing business would begin in the fourth quarter. We have reviewed these assumptions and theyremain unchanged at the end of the consolidated first three quarters of this fiscal year.
This change in assumptions has been applied to the accounting estimate; however there is no change to the estimate
conclusions from those latest announcements.

[Segment information]
Cumulative first three quarters of the previous fiscal year (May 1, 2019 – Jan. 31, 2020)
Information related to the amounts of sales, income, and loss for each reporting segment(Units: 1,000s yen)
Reporting segment
Memorial design
service business

Personal
Aerialpublishingimaging businessservice business

Adjustments

Amountrecorded in
profit and loss
statement

Total

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

1,915,859

2,962,001

76,787

4,954,648―

4,954,648

―

―

2,310

2,310(2,310)―

1,915,859

2,962,001

79,097

4,956,958(2,310)4,954,648

500,126

712,735(176,127)

1,036,734(387,307)

649,426

Cumulative first three quarters of the current fiscal year (May 1, 2020 – Jan. 31, 2021)
Information related to the amounts of sales, income, and loss for each reporting segment(Units: 1,000s yen)
Reporting segment
Memorial design
service business

Personal
Aerialpublishingimaging businessservice business

Adjustments

Amountrecorded in
profit and loss
statement

Total

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

1,825,298

2,274,816

88,891

4,189,007―

4,189,007

―

―

630

630

(630)

―

1,825,298

2,274,816

89,521

4,189,637(630)

4,189,007

439,520282,227(190,836)

530,911(390,227)

140,684

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