Non-Consolidated Financial Results
for the Six Months Ended October 31, 2021
[Japanese GAAP]
December 10, 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: December 14, 2021
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Scheduled (for institutional investors and analysts)(Amounts of less than one million yen are rounded down.)
1. Non-Consolidated Financial Results for the Six Months Ended October 31, 2021
(May 1, 2021 to October 31, 2021)(1) Non-Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Six months ended
October 31, 2021
October 31, 2020

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen

%

2,930
2,584

13.4
(17.8)

113
(56)

-

117
(7)

-

80
(10)

-

Basic earnings
per share

Diluted earnings per
share

Six months ended
Yen
Yen
October 31, 2021
4.76
October 31, 2020
(0.62)(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

6,481
As of October 31, 2021
6,465
As of April 30, 2021
(Reference) Equity: As of October 31, 2021: ¥5,803 million
As of April 30, 2021: ¥5,825 million

Equity ratio

Million yen

%

5,803
5,825

89.5
90.1

2. Dividends
1stquarter-end

2ndquarter-end

Yen

Yen

Annual dividends
3rdYear-endquarter-end

Fiscal year ended April 30, 2021
0.00
Fiscal year ending April 30, 2022
0.00
Fiscal year ending April 30, 2022
(Forecast)(Note) Revision to the forecast for dividends announced most recently: No

Total

Yen

Yen

Yen

-

7.00

7.00

-

7.00

7.00

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
8.6
285
2.7
285 (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):
October 31, 2021: 17,464,000 shares
April 30, 2021: 17,464,000 shares2) Total number of treasury shares at the end of the period:
October 31, 2021: 600,957 shares
April 30, 2021: 615,057 shares
3) Average number of shares during the period:
Six months ended October 31, 2021: 16,852,391 shares
Six months ended October 31, 2020: 16,842,856 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 first two quarters
During the first two consolidated quarters of this fiscal year, as the economy of Japan continued to suffer theeffects of the coronavirus pandemic due to staying home and operation time saving, states of emergency were
declared and quasi-emergency measures were enacted. Although there are expectations for a recovery in personal
consumption due to progress in vaccinations and cancellation of state of emergency are made, the future remains
uncertain.
Asukanet operates three business areas, each with different positioning and characteristics. They are (1) the
funeral 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
new market 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.
Under these conditions, we have reinforced our internal sales functions and otherwise improved our sales system.
The number of new contracts has grown steadily as a result of functional improvements to and expansion of the“tsunagoo” DX service for the funeral industry, as well as other improvements such as strengthening photoprocessing quality using focus correction tools. As a result, there was a recovery in our primary business areas –processing photos of the deceased, and videos and other funeral production services. This also led to an increasein sales of frames and supplies. Consequently, sales were higher than the same period in the previous year.
In terms of profit and loss, despite the increase of advertising expenses and depreciation expenses, there wasan increase in sales. These factors resulted in higher profits compared with the same period in the previous fiscal
year.
As a result, 2Q sales were 1,279,355 thousand yen (111.1% year-on-year), and 2Q segment income was299,775 thousand yen (119.7% year-on-year).
(Photo book business）
This business operates AsukaBook for the professional photography market in Japan, and MyBook for thegeneral Japanese consumer market. We are also engaged in OEM supply of photo albums and photo prints basedon photos that were taken with smartphones.
In the professional photographers market, although our primary product of wedding photo albums continues tobe severely affected by wedding ceremony delays and other effects from the coronavirus pandemic, weddings oflimited size were held, primarily in rural areas, and the market recovered better than expected. In addition, there
was steady growth in sales of photo albums for studios, and sales were higher than the same period in the previous
fiscal year. In addition, in order to adapt to the pandemic environment, we endeavored to revitalize the market by
expanding our online seminars, online sales discussions, and video streaming, and by holding events such as lifesize photo contests and maternity photo contests.
The general consumer market continues to face difficult conditions of lower chance and needs of photo bookresulting from the effects of voluntary restrictions on activities such as traveling and events due to the coronavirus
pandemic. The same trends can be seen in OEM supply as well. As a result, sales were down from the same

period in the previous year. Under these conditions, we conducted innovative campaigns and efficient promotions.
In terms of profit and loss, we succeeded in controlling general expense and in increasing operating rate that
accompanied the higher in gross profit, and there was a large increase in segment income.
As a result, 2Q sales were 1,594,424 thousand yen (115.6% year-on-year), and 2Q segment income was247,799 thousand yen (308.7% 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
our original 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 centeredon our agents overseas. Overseas, we are in the process of restarting our business activities, and are providing
support for exhibitions in China, the Middle East, and the United States. We are also developing products to meetthe needs of each area and supporting activities for acquiring orders. Although marketing activities are subject tosome 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 the areas of production and development, we are working to stabilize production and improve yield throughthe use of outsourcing for both glass and plastic plates. In particular for glass plates, we accelerated our programfor reducing costs by installing new equipment. In addition to conducting repeated trials at our technicaldevelopment center aimed at developing and establishing production technologies for glass ASKA3D plates, weare 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. We recognizethat acquiring orders in significant quantities remains an issue.
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 expenses during thisquarter.
As a result, 1Q sales were 57,123 thousand yen (105.3% year-on-year), and 2Q segment loss was 170,851
thousand yen (compared to a loss of 123,145 thousand yen in the period of same quarters of the previous fiscal
year).
As results of the above, sales were 2,930,849 thousand yen (113.4% compared to the same quarters of theprevious fiscal year). In terms of income, increase in segment income in the photo book business resulted ordinary
income was 117,196 thousand yen (7,313 thousand yen in loss during the same quarters of the previous fiscal
year) and net income was 80,148 thousand yen (10,459 thousand yen in loss during the same quarters of theprevious fiscal year).

(2) Overview of the Financial Status
1. Assets, liabilities, and net assets(Assets)
Current assets at the end of this second quarter increased by 15,955 thousand yen from the end of the previous
fiscal year to reach 6,481,305 thousand yen. This increase was primarily due to the increase of goods andproducts of 42,598 thousand yen and in tangible fixed assets of 109,656 thousand yen due largely to expansionof production equipment, despite an decrease in cash and savings of 140,833 thousand yen.
(Liabilities)
Liabilities at the end of this second quarter increased by 38,138 thousand yen from the end of the previous
fiscal year to reach 677,888 thousand yen. This was primarily due to an increase in income taxes payable of34,500 thousand yen.
(Net assets)
Net assets at the end of this second quarter decreased by 22,182 thousand yen from the end of the previous
fiscal year to reach 5,803,416 thousand yen. This was primarily due to a decrease of 117,942 thousand yen as aresult of dividend payments, despite an increase in net profit of 80,148 thousand yen.
2. Overview of cash flows in this fiscal year
The balance of cash and cash equivalents (hereafter referred to as “cash”) at the end of this quarter end
increased by 259,166 thousand yen from the end of the previous fiscal year to reach 1,669,255 thousand yen.
(Cash flows from operating activities）
Net cash gained as a result of operating activities during the consolidated first 2 quarters was 320,279 thousandyen (compared to an expenditure of 73,462 thousand yen in the same period of the previous fiscal year). Thiswas primarily due to a gain of net profit of 116,439 thousand yen, depreciation of 228,718 thousand yen andreturn of paid corporate tax of 37,387 thousand yen.
(Cash flows from investing activities）
Net cash gained as a result of investing activities during the consolidated first 2 quarters was 55,771 thousandyen (compared to an expenditure of 104,674 thousand yen in the same period of the previous fiscal year). Despite
payment of 270,345 thousand yen for acquisition of tangible fixed assets, this was primarily due to an incomeof 405,000 thousand yen from deposit refund from banks.
(Cash flows from financing activities）
Net cash expended as a result of financing activities during the consolidated first 2 quarters was 118,306
thousand yen (compared to an expenditure of 169,375 thousand yen in the same period of the previous fiscal
year). This was primarily due to payment of dividends.
(3) Future Outlook
Based on the results of the consolidated first 2 quarters of this fiscal year and the future outlook, we have notrevised the forecast that were announced on June 11, 2021 in the results forecast for the fiscal year ending April
30, 2022.

5. Financial Statements for the First Two Quarters(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, net
Land
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 2nd quarter(ended Oct. 31, 2021)

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

1,674,255
768,250
262,627
134,753
76,97334,549(4,114)
2,947,293

929,317467,896844,060
213,0812,454,356
224,742932,225
577,552
844,060
198,134
2,551,973
228,729533,204
181,849
715,054
3,394,153
6,465,349

562,769
190,539753,3083,534,011
6,481,305

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

157,396
157,068
49,900161,740
145,921672,026

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

5,351
510
5,862
677,888

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

490,300
619,556
4,943,762(259,489)
5,794,130

4,997

9,286

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

9,286
5,803,416
6,481,305

(2) Profit and loss statement for the first two quarters

Net Sales
Cost of sales(unit:1000s yen)First two quarters of the previous First two quarters of the current
fiscal year
fiscal year
(May 1, 2020 – Oct 31, 2020)(May 1, 2021 – Oct 31, 2021)
2,584,234
2,930,849
1,462,724
1,559,284

Gross profit

1,121,509

1,371,564

Selling, general, and administrative expenses

1,178,063

1,258,030

Operating income (loss)(56,554)

113,533

Non-operating income
Interest received
Dividends received
Commissions received
Insurance cancellation refund
Subsidy income
Foreign exchange profit
Gain on forfeiture of unclaimed dividends
Others341
675
148
32,60014,615
―
―
1,582

291
600
155
―
―
1,208
1,007
400

49,962

3,662

722

―

Total non-operating income
Non-operating expenses
Foreign exchange losses
Total non-operating expenses

722―(7,313)

117,196

Extraordinary income
Income from sales of fixed assets

329―

Total extraordinary income

329―

Extraordinary losses
Loss from sales of fixed assets
Loss from disposal of fixed assets

―
2,313

708
48

Total extraordinary losses

2,313

756

Net income (loss) before taxes(9,298)116,439

Income taxes

1,160

36,291(10,459)

80,148

Ordinary income (loss)

Net income (loss)

(3) Cash flow statement for the first two quarters(unit:1000s yen)First two quarters of the previous First two quarters of the current
fiscal year
fiscal year
(May 1, 2020 – Oct. 31, 2020)(May 1, 2021 – Oct. 31, 2021)
Cash flows resulting from operating activities
Net income before taxes
Depreciation expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for officer retirement
benefit
Increase (decrease) in provision for retirement benefit
Interest and dividends received
Foreign exchange losses (gains)
Insurance cancellation refund
Subsidy income
Gain on sales of fixed assets
Loss on sales of fixed assets
Loss on disposal of fixed assets
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventory assets
Increase (decrease) in accounts payable-trade
Increase (decrease) in accrued consumption taxes
Others(9,298)
188,750
1,073(1,000)116,439
228,718
(102)
8,090

(100,000)―(339)(1,016)681(32,600)(14,615)
(329)
―
2,313

―
(891)
(1,422)
―
―
―
708
48

70,328

7,746(30,861)(21,774)(42,640)(20,261)(67,755)(5,946)(7,851)
4,012

Subtotal(11,590)281,794

Interest and dividends received
Subsidy received
Income taxes paid (return)

1,341
9,060
(72,273)

1,098―
37,387

Cash flows due to operating activities(73,462)

320,279

Cash flows due to investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant, and equipment
Income from sales of tangible assets
Purchase of intangible fixed assets
Purchase of investment securities
Income from sales of insurance
Payments of loans(405,000)
405,000(165,908)420(42,007)―108,887―(5,000)405,000(270,345)
667(41,328)(27,492)―(882)―(6,065)147(4,994)(104,674)

55,771(168,554)(820)(118,306)―(169,375)(118,306)

Income from reception of loans
OthersCash flows due to investing activities
Cash flows due to financing activities
Cash dividends paid
OthersCash flows due to financing activities
Effect of exchange rate on cash and cash equivalents

(681)

1,422

Net increase (decrease) in cash and cash equivalents(348,192)

259,166

Balance of cash and cash equivalents at beginning of year

1,555,817

1,410,088

Balance of cash and cash equivalents at end of quarter

1,207,624

1,669,255

[Segment information]
Cumulative first two quarters of the previous fiscal year (May 1, 2020 – Oct. 31, 2020)
Information related to the amounts of sales, income, and loss for each reporting segment(Units: 1,000s yen)
Reporting segment
Funeralbusiness

Photo bookbusiness

Aerialdisplaybusiness

Adjustments

Amountrecorded in
profit and loss
statement

Total

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

1,151,737

1,378,878

53,6182,584,234―

2,584,234

―

―

630

630

(630)

―

1,151,737

1,378,878

54,2482,584,864(630)

2,584,234

250,342

80,272(123,145)

207,469(264,023)(56,554)

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

Photo bookbusiness

Aerialdisplaybusiness

Adjustments

Amountrecorded in
profit and loss
statement

Total

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

1,279,355

1,594,424

57,0692,930,849―

2,930,849

―

―

54

54

(54)

―

1,279,355

1,594,424

57,1232,930,903(54)

2,930,849

299,775

247,799(170,851)

376,723(263,189)

113,533

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. Names of the businesses changed, however, content and information
unchanged as before. Names of reporting segment for previous year were renamed.

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