Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

February 8, 2024

Consolidated Financial Results
for the Nine Months Ended December 31, 2023
(Under Japanese GAAP)
Japan Communications Inc.
Company name:
Listing:
Tokyo Stock Exchange: Prime Market
Securities code:
9424
URL:
https://www.j-com.co.jp/
Representative:
Naohisa Fukuda, Representative Director-President
Inquiries:
Mitsuru Kodaira, Executive Officer, and CFO
Telephone:+81-3-5776-1700
Scheduled date to file quarterly securities report:
February 9, 2024
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for institutional investors, analysts andthe press)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended December 31, 2023 (from April 1, 2023 to
December 31, 2023)(1) Consolidated operating results (cumulative)
Net revenue
Nine months ended(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen%

December 31, 2023

5,387

24.7

810

49.4

839

47.8

1,062

107.8

December 31, 2022

4,321

27.6

542

171.5

568

176.3

511

135.0

Note: Comprehensive income

For the nine months ended December 31, 2023:
For the nine months ended December 31, 2022:[119.7%][139.2%]

Diluted earnings
per share

Basic earnings
per share
Nine months ended¥1,019 million¥464 million

Yen

Yen

December 31, 2023

6.44

6.43

December 31, 2022

3.10

3.07

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

December 31, 2023

4,181

2,682

59.2

14.99

March 31, 2023

3,040

1,534

46.1

8.50

Reference:

EquityAs of December 31, 2023:
As of March 31, 2023:¥2,473 million¥1,402 million

1

%

Yen

2. Cash dividends
Annual dividends per shareFirst quarter-end
Yen

Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

Second quarter-end

Third quarter-end

Yen

Yen

–

0.00

–

–

0.00

–

Fiscal year-end

Fiscal year ending
March 31, 2024
(Forecast)

Total

Yen

Yen

0.00

0.00

0.00

0.00

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Overview and management policy for the fiscal year ending March 31, 2024
Since its founding in 1996, the Company has propounded and implemented the MVNO business model, an
innovative form of telecommunications business, having developed its business with the mission of transferring(communicating) data safely, securely, and conveniently. Specifically, the Company is engaged in threebusinesses: mobile communications business (SIM business), communications business through local mobile
networks (local 4G/5G), and digital ID (FPoS: Fintech Platform over SIM) business for use on smartphones.
The Company plans to ensure a stable revenue base with continuous evolution in the SIM business and to invest
the revenue in the local 4G/5G business and FPoS business in order to develop them into pillars of future earnings.
In the local 4G/5G business, the Company aims to build advanced showcases in the U.S. and leverage thisexperience to expand in Japan.
In the FPoS business, the Company has acquired a certification under the Digital Signature Act for “my Digital
Certificate” (issued by my FinTech Inc., a subsidiary of the Company) based on its patented FPoS technology,
and develops the “my Digital Certificate” to be actually utilized as a safe, secure, and convenient digital ID thatcan be used on smartphones.
Considering the factors described above, one of the Company’s management priorities is to grow the scale of its
business to a market capitalization of 500 billion yen in three to five years from the launch of the commercial
service of FPoS.

2

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

165,009,239 shares

As of March 31, 2023

165,009,239 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2023

15,004 shares

As of March 31, 2023

15,004 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Nine months ended December 31, 2023

164,994,235 shares

Nine months ended December 31, 2022

164,622,831 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.

3

1. Qualitative Information on Results for the Nine Months Ended December 31, 2023
(1) Explanation on operating results
Since its founding in 1996, the Company has propounded and implemented the MVNO business model, an
innovative form of telecommunications business, having developed its business with the mission of transferring(communicating) data safely, securely, and conveniently. Specifically, the Company is engaged in threebusinesses: mobile communications business (SIM business), communications business through local mobile
networks (local 4G/5G), and digital ID (FPoS: Fintech Platform over SIM) business for use on smartphones.
The Company plans to ensure a stable revenue base with continuous evolution in the SIM business and to invest
the revenue in the local 4G/5G business and FPoS business in order to develop them into pillars of future
earnings.
(i) Mobile Communications Business (SIM business)
Upon a ruling by the Minister of Internal Affairs and Communications in June 2020, since the Company
launched the “Nihon Tsushin SIM” which provides flat-rate voice plans equivalent to that of major mobile
phone operators in July 2020, the Company has continued to achieve growth both in the number ofsubscribed lines and quarterly revenue.
The Company has continued to improve the product specifications of “Nihon Tsushin SIM” to strengthen
its product competitiveness. In April 2022, the Company started supporting eSIM, which is embedded indevices such as smartphones, in advance of other MVNOs (announced on April 6, 2022). In addition, by
March 2023, the Company had introduced an identification method using electronic certificates stored in“My Number Card” in identification under the Act on Identification, etc. by Mobile Voice Communications
Carriers of their Subscribers, etc. and for Prevention of Improper Use of Mobile Voice Communications
Services.
In April 2023, the Company increased the basic data limit for data communications of “Reasonable Minnano Plan,” which is a flagship plan of “Nihon Tsushin SIM,” from 6 GB to 10 GB, while keeping basic
monthly fees unchanged. In May 2023, the Company became the first in the MVNO industry to support the
MNP one-stop system (Note).
In addition, in November 2023, the Company upgraded the 20-GB plan of “Nihon Tsushin SIM” to a 30GB plan by increasing the basic data limit for data communications to 30 GB, while keeping basic monthly
fees unchanged, and adding the option of “all-you-can-calls” for calls no longer than 5 minutes to theprevious option of 70 minutes of free voice calls.
As a result, the “Nihon Tsushin SIM” lineup includes the “Reasonable Simple 290 Plan (1 GB; 290 yen permonth)” for low data usage, the “Reasonable Minna-no Plan (10 GB + “all-you-can-calls” for calls nolonger than 5 minutes (or 70 minutes of free voice calls); 1,390 yen per month)” for average data usage, andthe “Reasonable 30-GB Plan (30 GB + “all-you-can-calls” for calls no longer than 5 minutes (or 70 minutesof free voice calls); 2,178 yen per month)” for slightly high data usage, and that enables customers to choose
the most reasonable mobile communication billing plan for themselves.
As the above products being evaluated, revenue from “Nihon Tsushin SIM” has been growing steadily forboth individual and corporate subscribers. In addition, the number of subscribers for voice communication
services under partner brands has also been increasing steadily, and as a result, the SIM business has
continued to see growth both in the MVNO Business and the Enabler Business.
Note:

The MNP one-stop system allows customers who wish to switch to another carrier without changing
their mobile number (this is called “MNP”) to complete the MNP procedure simply by applying on
the website of the carrier to which they are switching, without having to obtain an MNP reservation
number from the carrier to which they subscribed.

(ii) Local 4G/5G Business through Local Mobile Networks
In the local 4G/5G business, the Company aims to build advanced showcases in the U.S. and leverage thisexperience to expand in Japan. The U.S. subsidiary of the Company operates a business that provides SIMs
used for connections with local mobile networks in the U.S. market.

4

As announced in December 2023, the Company’s U.S. subsidiary, JCI US Inc. (hereinafter referred to as“JCIUS”), entered into a contract with the State of Utah in the U.S. to implement a statewide Citizens
Broadband Radio Service (CBRS) (local 4G/5G) for an educational and telehealth network. It means that
JCIUS entered into a contract with the State of Utah through the University of Utah and the Utah Education
and Telehealth Network (hereinafter referred to as “UETN”) to provide the Company’s Secure LTE Network
Gateway Platform (NGP) services in its first major commercial implementation in the country. The local
4G/5G networks envisioned in this contract will replace and expand the service requirements of Wi-Fi andprovide secure (private/closed) networks for the University of Utah and for the current and future users ofhigh-speed broadband services implemented by UETN. JCIUS will provide all necessary SIMs and/or other
Hardware Security Modules (HSM) to enhance connectivity to networks for the people of the State of Utah.
Through the U.S. subsidiary, the Company is accumulating technologies and expertise on thecommunications (local 4G/5G) business with local mobile networks, and by utilizing these technologies
and expertise, the Company provides SIMs that can connect to local mobile networks set up by partner andcustomer companies. The Company will continue to accumulate knowledge in Japan and the U.S., and will
utilize this knowledge to develop case examples in the local 4G/5G business.
(iii) Digital ID (FPoS) Business for Use on Smartphones
As digital transformation (DX) underway in many areas of society and the economy, the importance ofdigital IDs is recognized again, and the Company is pushing forward with a business that will establish andprovide digital IDs that can be used on smartphones using FPoS, the Company’s patented technology. FPoS
guarantees the identity (confirmation of the person’s identity) and authenticity (confirmation that theperson’s intent is not falsified) of a customer by examining the combination of a public key contained in anelectronic certificate issued to the customer’s smartphone (iPhone and Android) by an electronic
certification authority accredited under the Digital Signature Act and a private key generated in thecustomer’s smartphone.
Currently, services of various providers are available through apps on smartphones. However, it is widely
recognized that the customer’s data (including personal information) when using applications i) may be
impersonated or falsified with, and ii) cannot be managed by the customer because it is shared with a third
party other than the service provider. Therefore, a method that can ensure the security and privacy of datacontaining personal information without compromising customer convenience is strongly required.
As for i), in the Internet world, it is easier to impersonate or falsify than in real world. Because we cannot
confirm the counterpart is who we think he or she is, and we cannot confirm the information that arrived
from the counterpart is in fact sent by him or her. As a result, intentions or transactions over the Internet
cannot always be reliable.
FPoS ensures the security of customer data (including personal information) through a mechanism that
grants access only when a public key contained in an electronic certificate correctly combines with a private
key generated in a smartphone. For example, when using a mobile phone, an IC chip known as SIM is
required instead of an ID and password or one-time password. This is because mobile phone operators haveestablished a technical safeguard using SIM, IC chip, to identify subscribers instead of passwords, which
can be hacked. FPoS is based on the same concept and serves as a robust technical safeguard to protect
access to customer’s data (including personal information), as does access to mobile communication
networks.
FPoS is a mechanism that can guarantee the identity and authenticity of communications over the Internet.
Making intentions and transactions over the Internet more trustworthy by an implementation of FPoS, would
be a means to solve problems in a wide range of sectors, including not only banking (Internet banking), butalso healthcare, administration, education, and transportation, etc.
As for ii), currently, when a smartphone application is downloaded and used, the terms of use, etc. aredisplayed, and if users do not agree to them, they cannot use the application (and are deemed to have agreed
to them if they do use the application) (Opt-in method). Users are considered to have initiative in Opt-in
method, but in reality, not many users will carefully read, understand, and agree to the terms of use before
using the app. Therefore, the Company added “Dynamic Opt-in” function to FPoS to compensate for theimperfections of the Opt-in method. This is a function that displays a list of the recipients of the customers’
personal information on their smartphone and allows the customers to authorize or revoke the provision of
their personal information, allowing them to manage their own personal information.

5

In order to demonstrate the above potential of FPoS, the Company is cooperating with Mebuku Ground Inc.,a private-public partnership company made up of Maebashi City, private-sector business enterprises anduniversities. Since October 2022, Mebuku Ground Inc. has been operating “mebuku App” which issues“mebuku ID,” a digital ID using FPoS technology.
The greatest strength of “mebuku ID” is its high security, but in addition, its greatest differentiating factor
is its ability to securely and reliably link personal information held by multiple business operators throughits high security. The everyday activities of people span across multiple domains, such as governmentoperated public domains, medical and educational institutions and other quasi-public domains, and besides
those, the various private domains. If personal information can be securely and reliably linked across allthese domains, it will be possible to provide services that are individually optimized for each user and tovisualize various social issues by presenting data that can generate new value, thereby providing clues
toward solutions. In addition, since “mebuku ID” implements a “Dynamic Opt-in” function, such data
linkage can be implemented based on the substantial consent of users.
The “mebuku ID” is not only far more secure than other IDs, but is also highly regarded by many local
governments, companies, and organizations for its ability to link data across business operators, and for its
Dynamic Opt-in function that provides information of which business operators or service are eligible tolink the data.
Furthermore, “mebuku Pay,” Maebashi City’s electronic local currency, was launched in December 2023
through “mebuku ID” and “mebuku App” (announced by Maebashi City and Mebuku Ground Inc. in
September 2023). “mebuku Pay” was designed and developed with the highest priority placed on givingback to the local community by ensuring that payment data remains in the community and is utilized locally.
The Company believes that “mebuku ID” and “mebuku Pay” can be an effective means to solve social
issues, as they enable communities to reap the benefits of social and economic digitalization.
The Company is working toward its mission of transferring (communicating) data safely, securely, andconveniently. FPoS is a technology and operation that fulfills a core role in this mission.
As a result of the above, the Group’s consolidated net revenue for the nine months ended December 31, 2023
was 5,387 million yen, an increase of 1,065 million yen (up 24.7%) compared to the nine months ended
December 31, 2022 (hereinafter referred to as the “same period of the previous year”). This was because of thegrowth of the flat-rate or semi-flat-rate voice services centered on “Nihon Tsushin SIM” in the MVNO Business(up 20.1% from the same period of the previous year) and the growth of the voice services of partner brands inthe Enabler Business (up 29.7% from the same period of the previous year).
Cost of revenue was 2,998 million yen, an increase of 610 million yen (up 25.6%) compared to the same periodof the previous year. This was mainly due to an increase in mobile network procurement costs associated withthe growth of “Nihon Tsushin SIM.” The increase in cost of revenue can be contained because the mobile
networks of both data and voice communications procured by the Company from NTT DOCOMO have been
set not to exceed the amount of the appropriate costs under efficient management plus appropriate profit.
As a result, gross profit was 2,389 million yen (1,933 million yen in the same period of the previous year),selling, general and administrative expenses was 1,578 million yen (1,390 million yen in the same period of theprevious year), and operating profit was 810 million yen (542 million yen in the same period of the previousyear).
During the three months ended June 30, 2023, a final judgment was rendered in a lawsuit between the Company
and Quanta Computer Inc. In conjunction with the finalization of the judgment, the Company recorded
extraordinary income of 363 million yen, resulting in profit attributable to owners of parent of 1,062 million
yen (511 million yen in the same period of the previous year).

6

Financial results by business are as follows:(Millions of yen)
Net revenue

For nine months
ended December 31,
2022

For nine months
ended December 31,
2023

Year-on-year change

Year-on-year change(%)

MVNO Business

2,258

2,711

453

20.1

Enabler Business

2,063

2,676

612

29.7

Total

4,321

5,387

1,065

24.7

Revenue of 80 million yen (97 million yen in the same period of the previous year) from overseas operations inthe segment information is included in the Enabler Business.
(2) Explanation on financial position(i) Assets, liabilities, and net assets
AssetsCurrent assets at the end of the current third quarter were 3,310 million yen, an increase of 997 million yen
compared to the end of the previous year. This was mainly due to an increase of 783 million yen in cash anddeposits and an increase of 115 million yen in accounts receivable - other. Non-current assets were 871 million
yen, an increase of 143 million yen compared to the end of the previous year. This was mainly due to increasesof 90 million yen in property, plant and equipment and 59 million yen in intangible assets.
As a result, total assets amounted to 4,181 million yen, an increase of 1,140 million yen compared to the end of
the previous year.
Liabilities
Current liabilities at the end of the current third quarter were 1,368 million yen, a decrease of 57 million yen
compared to the end of the previous year. This was mainly due to a decrease of 287 million yen in valuation
reserve for inventory purchase commitments while there were increases of 114 million yen in accounts payable- other, 24 million yen in income taxes payable, and 94 million yen in deposits received. Non-current liabilities
were 129 million yen, an increase of 49 million yen compared to the end of the previous year. This was mainly
due to an increase of 40 million yen in lease liabilities.
As a result, liabilities amounted to 1,498 million yen, a decrease of 7 million yen compared to the end of theprevious year.
Net assets
Net assets at the end of the current third quarter were 2,682 million yen, an increase of 1,148 million yen
compared to the end of the previous year. This was mainly due to recording 1,062 million yen in profit
attributable to owners of parent.
As a result, the equity ratio was 59.2% (46.1% at the end of the previous year).
(ii) Status of cash flows
Cash and cash equivalents at the end of the nine months ended December 31, 2023 were 2,364 million yen, an
increase of 783 million yen compared to the end of the previous year.
The status of cash flows and their factors during the nine months ended December 31, 2023 are as follows.
Cash flows from operating activities
Net cash provided by operating activities totaled 851 million yen (an inflow of 534 million yen in the same
period of the previous year). This was mainly due to the recording of a reversal of valuation reserve for inventory
purchase commitments of 287 million yen, an increase in trade receivables of 27 million yen, an increase ininventories of 26 million yen and a decrease in unearned revenue of 14 million yen, despite recording profit
before income taxes of 1,203 million yen.

7

Cash flows from investing activities
Net cash used in investing activities totaled 147 million yen (an outflow of 166 million yen in the same periodof the previous year). This was mainly due to payments for purchase of property, plant and equipment of 74
million yen and purchase of intangible assets of 77 million yen.
Cash flows from financing activities
Net cash provided by financing activities totaled 78 million yen (there were no cash flows from financing
activities in the same period of the previous year). This was mainly due to 93 million yen of proceeds fromshare issuance to non-controlling shareholders.
(3) Explanation on future forecast information such as consolidated business forecast
Since its founding in 1996, the Company has propounded and implemented the MVNO business model, an
innovative form of telecommunications business, having developed its business with the mission of transferring(communicating) data safely, securely, and conveniently. Specifically, the Company is engaged in threebusinesses: mobile communications business (SIM business), communications business through local mobile
networks (local 4G/5G), and digital ID (FPoS: Fintech Platform over SIM) business for use on smartphones.
The Company plans to ensure a stable revenue base with continuous evolution in the SIM business and to invest
the revenue in the local 4G/5G business and FPoS business in order to develop them into pillars of future
earnings. In the local 4G/5G business, the Company aims to build advanced showcases in the U.S. and leverage
this experience to expand in Japan. In the FPoS business, the Company has acquired a certification under the
Digital Signature Act for “my Digital Certificate” (issued by my FinTech Inc., a subsidiary of the Company)
based on its patented FPoS technology, and develops the “my Digital Certificate” to be actually utilized as asafe, secure, and convenient digital ID that can be used on smartphones.
Considering the factors described above, one of the Company’s management priorities is to grow the scale ofits business to a market capitalization of 500 billion yen in three to five years from the launch of the commercial
service of FPoS (on October 21, 2022).

8

Quarterly consolidated financial statements
Quarterly consolidated balance sheets(Thousands of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Supplies
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Patent right
Trademark right
Software
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Leasehold and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets

9

As of December 31, 2023

1,580,619
576,323
75,46265
103
83,011△3,1382,312,448

2,364,511
605,226
67,56965
115,305
162,165△4,6583,310,184

106,085△84,942
21,142
7,027△5,596
1,430
876,556△773,909
102,647
285,882△266,737
19,144－
144,365

107,821△86,768
21,053
11,021△6,7294,292
971,577△823,618
147,958
342,537△281,840
60,697
1,056
235,058

4,727
3,229
264,297
9,752
282,007

6,350
3,419
306,269
25,828341,867

128,570
133,884
39,228
301,683
728,056
3,040,504

145,047
110,937
38,309294,293871,219
4,181,403

(Thousands of yen)
As of March 31, 2023
Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - other
Income taxes payable
Unearned revenue
Deposits received
Valuation Reserve For Inventory PurchaseCommitments
Other
Total current liabilities
Non-current liabilities
Long-term accounts payable - other
Long-term unearned revenue
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

10

As of December 31, 2023

630,125
78,842
109,651
120,872
66,559625,016
193,839
133,931108,670
161,419

287,979－

132,150
1,426,180

146,086
1,368,964

6,102
56,613
17,212
79,9281,506,108

12,52358,92258,036
129,482
1,498,446

535,822
224,109530,319△2,192
1,288,058

535,822238,874
1,592,971△2,1922,365,476

114,472

107,932

114,472

107,932

96,21835,646
1,534,395
3,040,504

109,046
100,5022,682,957
4,181,403

Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
Quarterly consolidated statements of income(Thousands of yen)
Nine months ended
December 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Foreign exchange gains
Share of profit of entities accounted forusing equity method
Recoveries of written off receivables
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Amortization of share issuance costs
Amortization of bond issuance costs
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Compensation for damage income
Reversal of provision for valuation reservefor inventory purchase commitments
Total extraordinary income
Profit before income taxes
Income taxes - current
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

11

Nine months ended
December 31, 2023

4,321,916
2,388,282
1,933,634
1,390,847
542,787

5,387,895
2,998,806
2,389,088
1,578,217
810,871

4
13,3667
9,430

12,28913,526－2,234
27,894

5,990
2,569
31,524

318
376
1,585
49
2,330
568,351

1,245
－
－
1,376
2,622
839,773－※１ 75,869－※２ 287,979－
568,351
91,471
91,471
476,879△34,587
511,467

363,848
1,203,622
177,213
177,213
1,026,408△36,243
1,062,652

(Thousands of yen)
3rd quarter ended
December 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Share of profit of entities accounted forusing equity method
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Amortization of share issuance costs
Amortization of bond issuance costs
Foreign exchange losses
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

12

3rd quarter ended
December 31, 2023

1,558,967
811,158
747,809498,863
248,945

1,884,369
1,038,167
846,202568,006
278,195

4,717

3,596

483
5,201

888
4,484

31
63
528
20,245－
20,869233,277
233,277
37,82237,822
195,454△14,888
210,343574－－
12,173
1,167
13,915
268,765
268,765
49,202
49,202
219,563△23,548
243,111

Quarterly consolidated statements of comprehensive income(Thousands of yen)
Nine months ended
December 31, 2022
ProfitOther comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

13

Nine months ended
December 31, 2023

476,879

1,026,408△12,763△12,763
464,116△6,540△6,5401,019,868

498,704

1,056,112△34,587△36,243(Thousands of yen)
3rd quarter ended
December 31, 2022
ProfitOther comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

14

3rd quarter ended
December 31, 2023

195,454219,563

16,887
16,887
212,342

11,232
11,232
230,795

227,231254,344△14,888△23,548

Quarterly consolidated statement of cash flows(Thousands of yen)
Nine months ended
December 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted
for using equity method
Foreign exchange losses (gains)
Reversal of provision for valuation reservefor inventory purchase commitments
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in accounts receivable other
Increase (decrease) in unearned revenue
Increase (decrease) in Long-term unearned
revenue
Increase/decrease in consumption taxes
payable/consumption taxes refund receivable
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Compensation for damage income
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold andguarantee deposits
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Payments for retirement by purchase of shareacquisition rights
Repayments of lease liabilities
Proceeds from share issuance to noncontrolling shareholders
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodCash and cash equivalents at end of period

15

Nine months ended
December 31, 2023

568,351
45,369△4318

1,203,622
106,339△7
1,245△12,289△13,526△15,180△9,257－△287,979△96,451△7,182
89,405△27,780△26,745△4,861△63,409△115,202△11,235△14,160

2,023△5,847△4,058△630

80,276575,9334△99△41,305－

138,765
943,9747△1,245△167,027
75,869534,532

851,578△30,158△85,479△50,000△3,690△74,884△77,156△2,950
△151

3,038

7,528

－

10

△166,290△147,603－△8,529－△6,565－93,332－

78,236

2,482

1,679

370,725

783,891928,688

1,580,619

1,299,413

2,364,511