Non-Consolidated Financial Results
for the Nine Months Ended January 31, 2023
[Japanese GAAP]
March 6, 2023
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 14, 2023
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, 2023
(May 1, 2022 to January 31, 2023)(1) Non-Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Nine months ended
January 31, 2023
January 31, 2022

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

5,200
4,688

10.9
11.9

483
369

30.8
162.6

497
374

32.9
95.7349262

33.2
107.5

Basic earnings
per share

Diluted earnings pershare

Nine months ended
Yen
Yen
January 31, 2023
20.93
January 31, 2022
15.55
(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

6,846
As of January 31, 2023
6,896
As of April 30, 2022
(Reference) Equity: As of January 31, 2023: ¥6,069 million
As of April 30, 2022: ¥6,020 million

Equity ratio

Million yen%

6,069
6,020

88.6
87.3

2. Dividends
1stquarter-end

2ndquarter-end

Yen

Yen

Annual dividends
3rdYear-end
quarter-end

Fiscal year ended April 30, 2022
0.00
Fiscal year ending April 30, 2023
0.00
Fiscal year ending April 30, 2023
(Forecast)(Note) Revision to the forecast for dividends announced most recently: No

Total

Yen

Yen

Yen-7.00

7.00

8.00

8.00

3. Non-Consolidated Financial Results Forecast for the Fiscal Year Ending April 30, 2023
(May 1, 2022 to April 30, 2023)(% indicates changes from the previous corresponding period.)
Basic earnings
Net sales
Operating income
Ordinary income
Profitper share%

Million yen%

Yen

Full year
7,000
10.6640
45.567048.0(Note) Revision to the financial results forecast announced most recently: Yes

Million yen%

Million yen%

Million yen

470

41.2

28.16

* 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):
January 31, 2023: 17,464,000 shares
April 30, 2022: 17,464,000 shares2) Total number of treasury shares at the end of the period:
January 31, 2023: 842,257 shares
April 30, 2022: 657,657 shares
3) Average number of shares during the period:
Nine months ended January 31, 2023: 16,688,269 shares
Nine months ended January 31, 2022: 16,852,977 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 the Fiscal Year
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 funeral business that is largely unaffectedby 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.
In December 2012, we concluded a capital and business partnership with REXIT Co., Ltd., a start-up company operating DX
services for the wedding market.
Following is an overview of the business results for each segment. The result figures for each segment include internal intersegment sales.
(Funeral business)
In this business, although funerals continue to be reduced in size as a result of the coronavirus pandemic, there was a recovery
in the holding of funerals themselves. Revenue from our primary business area – processing photos of the deceased – resulted
in greater growth. In addition to the steady acquisition of new contracts through our sales activities, this was a result of theincreasing number of funerals held nationwide. As a result, there was a steady increase in sales of supplies such as paper andframes. At the same time, in order to increase the number of new contracts in our “tsunagoo” DX service for the funeral industry,
we worked to improve function, while also reinforcing our sales operations via online seminars and other means.
In terms of income, personnel expenses were higher as a result of actively increasing personnel, primarily in the Image
Processing Division which was previously inadequately staffed. In addition, there was an increase in recruitment costs,
transportation costs, and other expenses. However there was a large contribution from the increase in sales, resulting in an
increase in segment income.
As a result, sales during the cumulative first three quarters were 2,343,744 thousand yen (116.1% year-on-year), and segment
income was 575,896 thousand yen (111.3% year-on-year).
(Photo book business)
This business operates AsukaBook for the professional photography market, and MyBook for the general 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, although our primary product of wedding photo albums continues to be severely
affected by the coronavirus pandemic, weddings incorporating measures to prevent coronavirus infections were held, and themarket trended towards recovery. Therefore, there was steady growth in sales of photo albums for studios, and sales were higherthan the plan. In addition to the “8th Life-Size Photo Awards” to commemorate the 20th anniversary of our AsukaBook brandof photo albums for professional photographers, we also held the “Pet Life-Size Photo Awards” and “Album Design Awards”.
The general domestic consumer market continues to face difficult conditions of reduced opportunities and demand for photoalbums resulting from the effects of voluntary restrictions on activities such as overseas traveling and events, as well as wearingmasks, due to the coronavirus pandemic. However, a recovery can be seen in “My Book” despite the difficult conditions. We
conducted variety of promotions and campaigns, and also released “My Book New Year Greeting” as a new service, andpromoted products such as seasonal calendars graduation albums.
As a result, although conditions in the general consumer market were difficult, we were able to steadily grow sales as a resultof strong sales in the professional photographers market.
In terms of income, although there were increases in costs due to higher material costs and rising prices of utilities, segment
income increased as a result of efficient operation of our production system and a recovery in the operating rate.
As a result, sales were 2,733,237 thousand yen (107.2% year-on-year), and segment income was 583,290 thousand yen(119.5% 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 centered on our agents
overseas. In Japan and overseas, we expanded our record of successful installations at locations including Shuri Castle
Information Center and a hospital facility in Turkey though some large signage orders in the Middle East were not received due
to problems with the installation environment. We are providing maximum possible support for high-potential verification testing
projects in applications such as shop payment terminals, however a certain amount of time will be required. Sales activities arein the process of returning to normal everywhere except for the China market. In January of this year, we exhibited jointly with
our North American agent at CES2023, one of the largest IT exhibitions in the world. The near futuristic feel and entertainment
possibilities of aerial displays using ASKA3D plates were highly rated by the visitors.
In production and development areas, we are working to stabilize production and increase sizes through outside productionof both glass and plastic plates, and we have achieved results. At our technical development center, we are focusing ourdevelopment themes on production of medium-sized glass plates, and are working to resolve production issues such as improving
the accuracy of small-sized plates and establishing technologies for connecting plates together. Although we have not yet reachedthe mass production trial stage, we are planning to sell prototype products to our agents during this fiscal year.
In terms of sales, due to sales of the dies necessary for sale and manufacture of glass ASKA3D plates used primarily forsignage purposes, sales were higher than the same period of the previous fiscal year.
In terms of profit and loss, although there was an increase in advertising expenses due to the larger number of exhibitions andan increase in travel expenses due to sales activities, segment loss was smaller than the same period in the previous fiscal year
as a result of controlling R&D costs by focusing R&D on key areas.
As a result, sales were 128,579 thousand yen (106.3% year-on-year), and segment loss was 224,894 thousand yen (compared
to a loss of 238,835 thousand yen in the same period of the previous fiscal year).
As results of the above, sales were 5,200,977 thousand yen (110.9% compared to the same period of the previous fiscal year),ordinary income was 497,398 thousand yen (132.9% compared to the same period of the previous fiscal year) and net income was349,232 thousand yen (133.2% compared to the same period of the previous fiscal year) due to higher profit from funeral businessand photobook business.

(2) Overview of the Financial Status(Assets)
Current assets at the end of this third quarter decreased by 49,872 thousand yen from the end of the previous fiscal year to reach
6,846,362 thousand yen. Despite an increase in account receivables of 129,472 thousand yen and products in progress of 154,708
thousand yen, this decrease was primarily due to a decrease in cash and savings of 347,585 thousand yen.
(Liabilities)
Liabilities at the end of this third quarter decreased by 98,129 thousand yen from the end of the previous fiscal year to reach
777,319 thousand yen. This was primarily due to a decrease in income taxes payable of 43,800 thousand yen and in bonus allowanceof 60,320 thousand yen.
(Net assets)
Net assets at the end of this third quarter increased by 48,257 thousand yen from the end of the previous fiscal year to reach
6,069,043 thousand yen. Despite a decrease in dividend payment of 117,644 thousand yen and an increase in treasury stock of189,465 thousand yen, this was primarily due to an increase in net income of 349,232 thousand yen.

(3) Future Outlook
Please refer to the announcement regarding the “revision of our Future Outlook”, released today.

5. Financial Statements for the Fiscal Year
(1) Balance sheet(Units: 1,000s yen)Previous fiscal year
(Ended April 30, 2022)
Asset
Current assets
Cash and deposits
Accounts receivable-trade
Merchandise and products
Work in progress
Raw materials and supplies
OthersAllowance for doubtful accounts

Current 3rd quarter(Ended Jan. 31, 2023)

1,999,178
836,041
304,090
169,02284,426
43,589(2,810)1,651,592
965,513458,799
197,173
82,83645,954(3,594)

3,433,537

3,398,274

Fixed assets
Tangible fixed assets
Building (net)
Machinery and equipment (net)Land
Others (net)906,630
522,592
844,060
183,767

885,102457,051
844,060
188,709

Total tangible fixed assets

2,457,050

2,374,924

Intangible fixed assets
Investments and other assets
Investment securities
Others

208,440

225,435

587,437
209,768

634,317
213,410797,206

847,728

3,462,698

3,448,088

6,896,235

6,846,362

Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-other
Income taxes payable
Provision for bonuses
Others

182,892
197,458
131,400
161,620
191,216

195,146
159,51387,600101,300
223,975

Total current liabilities

864,587

767,535

5,351
5,510

5,351
4,432

Total current assets

Total investments and other assets
Total fixed assets
Total assets

Fixed liabilities
Provision for retirement benefits
OthersTotal fixed liabilities

10,862

9,784

875,449

777,319490,300
619,556
5,196,424(298,392)

490,300
624,486
5,428,012(487,857)

6,007,889

6,054,941

Valuation difference on available-for-sale securities

12,896

14,101

Total valuation and translation adjustments

12,896

14,1016,020,785

6,069,043

6,896,235

6,846,362

Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Total retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments

Total net assets
Total liabilities and net assets

(2) Profit and loss statement for three quarters

Net Sales
Cost of goods sales(Unit:1000s yen)First three quarters of the previous First three quarters of the current
fiscal year
fiscal year
(May 1, 2021 – Jan. 31, 2022)(May 1, 2022 – Jan. 31, 2023)
4,688,999
5,200,977
2,422,870
2,731,498

Gross profit

2,266,128

2,469,478

Selling, general, and administrative expenses

1,896,687

1,986,413

369,441

483,065

429
1,200
239
―
1,660
1,007
476

1,8891,275
250
5,727
849
742
4,186

5,013

14,920Acquisition cost for treasury stocks

116

587

Total non-operating expenses

116

587

374,338

497,398708
316―0Operating income
Non-operating income
Interest received
Dividends received
Commissions received
Subsidy income
Exchange gain
Gain on forfeiture of unclaimed dividends
OthersTotal non-operating income
Non-operating expenses

Ordinary income
Extraordinary losses
Loss on sales of fixed assets
Loss on retirement of fixed assets
Total extraordinary losses

1,024

0373,313

497,398

Income taxes

111,192148,165

Net income

262,120

349,232

Net income before taxes

[Segment information]
Cumulative first three quarters of the current fiscal year (May 1, 2021 – Jan. 31, 2022)
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

4,688,999―

4,688,9995454(54)―2,549,709

120,935

4,689,053(54)

4,688,999

488,081(238,835)

766,479(397,038)

369,441

Funeral businessPhoto bookbusiness

Aerialdisplay business

2,018,409

2,549,709

120,881――2,018,409
517,234

Total

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

Cumulative first three quarters of the current fiscal year (May 1, 2022 – Jan. 31, 2023)
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

5,200,977―

5,200,977

―

4,584

(4,584)―

2,733,237

128,579

5,205,561(4,584)5,200,977

583,290(224,894)

934,291(451,226)

483,065

Funeral businessPhoto bookbusiness

Aerialdisplay business

2,343,744

2,728,653

128,579―

4,584

2,343,744
575,896

Total

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

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