Non-Consolidated Financial Results
for the Three Months Ended July 31, 2022
[Japanese GAAP]
September 6, 2022
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, 2022
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, 2022
(May 1, 2022 to July 31, 2022)(1) Non-Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Three months ended
July 31, 2022
July 31, 2021

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

1,543
1,466

5.2
16.4

5242

24.3-5642

32.0-

382835.6-Basic earnings
per share

Diluted earnings pershare

Three months ended
YenYenJuly 31, 2022
2.30
July 31, 2021
1.69(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
Million yen

6,564
As of July 31, 2022
6,896
As of April 30, 2022
(Reference) Equity: As of July 31, 2022: ¥5,843 million
As of April 30, 2022: ¥6,020 million

Net assets

Equity ratio

Million yen%5,843
6,020

89.0
87.3

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

1stquarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended April 30, 2022

-

0.00

-

7.00

7.00

Fiscal year ending April 30, 2023

-

8.00

8.00

Fiscal year ending April 30, 2023
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, 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% Million yen% Million yen%

Full year
6,890
8.8
450
2.34908.2(Note) Revision to the financial results forecast announced most recently: No

Million yen%

Yen

348

4.6

20.68

* 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, 2022: 17,464,000 shares
April 30, 2022: 17,464,000 shares2) Total number of treasury shares at the end of the period:
July 31, 2022: 752,657 shares
April 30, 2022: 657,657 shares
3) Average number of shares during the period:
Three months ended July 31, 2022: 16,784,101 shares
Three months ended July 31, 2021: 16,848,943 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 for this Consolidated First Quarter
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.
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 an increasein the holding of funerals themselves. In addition, we gained contracts with new funeral companies, resulting in a recovery in
our primary business areas – processing photos of the deceased, and videos and other funeral production services. This also led
to an increase in sales of tools and equipment for funeral photo production.
We have strengthened the functions of our “tsunagoo” service, which was released in the funeral market as part of our “funeraltech” services utilizing IT technologies. These improvements include links with services aimed at resolving problems involving
inheritance, real estate, and other matters facing the bereaved. We exhibited at the Funeral Business Fair exhibition in June, withpromotions centered on the advantages of “tsunagoo”.
In terms of income, based on the excessive workload on operators in the Image Processing Division during the previous fiscal
year, we engaged in active staff recruitment. We also increased R&D expenses aimed at further improving our focus restoration
technology and increased advertising expenses including expenses for participation in exhibitions. As a result, there was a slightdecrease in segment income.
As a result, Q1 sales were 674,069 thousand yen (107.5% year-on-year), and Q1 segment income was 133,016 thousand yen(98.0% 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 withsmartphones.
In the professional photographers market, our primary business of wedding photo albums saw difficult sales due to the effectsof the coronavirus pandemic. However, we can also see a trend toward recovery. There were strong sales of studio photography
for family photos and photos of children. Sales were also higher compared with the same period in the previous fiscal year.
Other programs that we carried out included the release of new products, exhibiting at the PHOTO NEXT exhibition, and holding
three types of photo awards including pet photo awards.
In the general consumer market, business was affected by voluntary restrictions on activities such as traveling and events dueto the coronavirus pandemic, and also by a reduction in opportunities for taking photos resulting from the constant mask wearing.
Difficult conditions are continuing for both our company’s MyBook brand and OEM, and sales were down from the same quarterof the previous fiscal year.
In terms of income, although we were affected by the soaring prices of raw materials, the operating rate recovered at ourfactory as a result of growing sales, and the resulting increase in gross profit was a large factor driving an increase in segment
income.
As a result, Q1 sales were 847,232 thousand yen (106.0% year-on-year), and Q1 segment income was 149,430 thousand yen(122.1% 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. We exhibited at CONTACTLESS TECH JAPAN in June and proposed specific applications together with collaboratingcompanies. We have already obtained a significant amount of results from installation and verification testing for applications
such as ticket selling machines and elevator operation panels. However there have been large effects from restrictions on ourbusiness activities resulting from the COVID-19 pandemic. Our China agent has been virtually unable to operate as a result of
the country’s Zero COVID policy, and projects at other overseas agents have been extended or delayed. As a result, we faced adifficult struggle for sales, particularly in overseas markets, and the results were down from the same quarter in the previous
fiscal year.
In the areas of production and development, we are working to stabilize production, improve supply and cost reduction forboth glass and plastic plates. The prospects for production of outsourced large-size glass ASKA3D plates have become visible
to some extent. For plastic ASKA3D plates as well, we are developing plates that are a size larger than the existing plates. At
our technical development center, progress was also made in bonding technologies for glass ASKA3D plates of medium andsmaller sizes.
In terms of profit and loss, despite higher advertising expenses, segment loss was on the same level as the same quarter in theprevious fiscal year due to our success in controlling R&D expenses and patent-related expenses.
As a result, Q1 sales were 23,223 thousand yen (58.6% year-on-year), and Q1 segment loss was 76,542 thousand yen(compared to a loss of 76,727 thousand yen in the same quarter of the previous fiscal year).
As results of the above, sales were 1,543,046 thousand yen (105.2% compared to the same quarter of the previous fiscal year).
In terms of profits, there was an increase in company-wide expenses resulting from the establishment of a Marketing Promotion
Division intended to reinforce our cross-business marketing functions. However despite these higher expenses, higher segment
income in the photo book business was the primary factor behind ordinary income of 56,586 thousand yen (132.0% year-on-year)
and net income of 38,538 thousand yen (135.6% year-on-year).

(2) Overview of the Financial Status during this Quarter
Assets at the end of this first quarter decreased by 331,483 thousand yen from the end of the previous fiscal year to reach
6,564,752 thousand yen. This was primarily due to a decrease in cash and savings of 365,097 thousand yen.
Liabilities at the end of this first quarter decreased by 154,139 thousand yen from the end of the previous fiscal year to reach
721,310 thousand yen. This was primarily due to a decrease in corporate tax payable of 105,500 thousand yen and a provision forbonuses of 73,220 thousand yen.
Net assets at the end of this first quarter decreased by 177,344 thousand yen to reach 5,843,441 thousand yen. This was primarily
due to a decrease of 117,644 thousand yen in payment of dividends from surplus and 97,799 thousand yen in treasury stockacquisition, and was despite an increase in quarterly profit of 38,538 thousand yen.

(3) Future Outlook
There are no changes to the future outlook for the fiscal year ending April 2023 that were announced on June 10, 2022.

5. Financial Statements for the first quarter of the Fiscal Year
(1) Balance sheet(Units: 1,000s yen)Previous fiscal year
(Ended April 30, 2022)
AssetCurrent 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
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
Officer retirement benefits
OthersFixed 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 adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

End of current Q1(Ended July 31, 2022)

1,999,178
836,041
304,090
169,02284,426
43,589(2,810)3,433,537

1,634,081
786,218
342,176
194,297
86,68944,461(2,817)3,085,107

906,630
522,592
844,060
183,767
2,457,050
208,440

910,728
488,338
844,060
240,4102,483,539
201,815

587,437
209,768
797,206
3,462,698
6,896,235

587,342
206,948794,2903,479,644
6,564,752

182,892
197,458
131,400
161,620
191,216
864,587

168,968
203,133
25,90088,400224,405
710,807

5,351
5,510

5,351
5,150

10,862875,449

10,502
721,310490,300
619,556
5,196,424(298,392)
6,007,889

490,300
619,556
5,117,319(396,191)
5,830,984

12,896

12,457

12,8966,020,785
6,896,235

12,457
5,843,441
6,564,752

(2) Profit and loss statement

Net Sales
Cost of sales(Units: 1,000s yen)First quarter of the previous fiscal First quarter of the current fiscalyearyear(May 1, 2021 – July 31, 2021)(May 1, 2022 – July 31, 2022)
1,466,562
1,543,046
783,629825,993

Gross profit

682,933

717,052

Selling, general, and administrative expenses

640,837

664,725

Operating income

42,09552,327147600
70―106600
600
77
2,749
524

923

4,552

―
147

293
―

Non-operating income
Interest received
Dividends received
Commissions received
Exchange gain
OthersTotal non-operating income
Non-operating expenses
Expense for purchasing treasury stocks
Foreign exchange losses
Total non-operating expenses

147

293

42,871

56,586

708
48

―0756

0

Net income before taxes

42,11456,586

Income taxes

13,686

18,047

Net income

28,42838,538

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

[Segment information]
First quarter of the previous 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 inprofit 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)

First quarter of the current fiscal year (May 1, 2022 – July 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

1,543,046―

1,543,046

―

1,478

(1,478)―847,232

23,223

1,544,524(1,478)1,543,046

149,430(76,542)

205,905(153,578)

52,327

Funeral businessPhoto bookbusiness

Aerialdisplay business

674,069

845,753

23,223―

1,478

674,069
133,016

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.