Note: This document has been translated from 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.

May 10, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
(Under Japanese GAAP)
Japan Communications Inc.
Company name:
Listing:
Tokyo Stock Exchange: Prime Market
Securities code:
9424
URL:
URL http://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 of ordinary general meeting of shareholders:June 28, 2023
Scheduled date to commence dividend payments:–
Scheduled date to file annual securities report:
June 29, 2023
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors, analysts and thepress)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31,
2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net revenue

Operating profit

Profit attributable toowners of parent

Ordinary profit

Fiscal year ended

Millions of yen

March 31, 2023

6,074

31.1

740

165.1

780

161.1

March 31, 2022

4,634

32.5

279

–

298

–

Note: Comprehensive income%

Millions of yen%

Millions of yen

For the fiscal year ended March 31, 2023:
For the fiscal year ended March 31, 2022:

Basic earnings
per share
Fiscal year ended

Diluted earnings
per shareYen%¥649 million¥254 million

Return on equity

Yen

Millions of yen

%

690

134.8

294

–

[154.9%][–%]Ratio of ordinary
Ratio of operating
profit to total assets profit to net revenue

%

%

%

March 31, 2023

4.19

4.15

67.2

31.3

12.2

March 31, 2022

1.79

1.77

64.2

15.7

6.0

Reference:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2023:¥15 million
For the fiscal year ended March 31, 2022:¥5 million(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

March 31, 2023

3,040

1,534

46.1

8.50

March 31, 2022

1,944

785

33.6

3.97

Reference:

EquityAs of March 31, 2023:
As of March 31, 2022:¥1,402 million¥652 million

1

%

Yen

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Fiscal year ended

Millions of yen

Millions of yen

March 31, 2023

851

(200)

(1)

1,580

March 31, 2022

21

(271)

150

928

Millions of yen

Millions of yen

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen
Fiscal year ended

March 31, 2022
Fiscal year ended

March 31, 2023

Yen

Fiscalyear-end

Yen

Yen

Total

Total cash
dividends(Total)Yen Millions of yen

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)
%

%

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

Fiscal year ending

March 31, 2024–

(Forecast)

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 build a stable income stream by continuing the evolution of the SIM business, as well as
to develop the local 4G/5G business and FPoS business to become the pillar of future earnings by investing in
the two businesses.
In the local 4G/5G business, the Company aims to build advanced showcases in the U.S. and leverage theexperience to expand in Japan.
In the FPoS business, the Company has acquired certification under the Digital Signature Act for “my Digital
Certificate” (the issuing entity is my FinTech Inc., a subsidiary of the Company.) based on its patented FPoS
technology, and are working on its actual use as a digital ID that can be used safely, securely, and conveniently
on smartphones.
With the surrounding situation above described, the management of the Company perceives a market
capitalization of 500 billion yen as the growth business scale in three to five years from the launch ofcommercial service of FPoS (launched on October 21, 2022).

2

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) 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: Yes(iv) Restatement: None
(3) Number of issued shares (common shares)(i)

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

165,009,239 shares

As of March 31, 2022

164,258,239 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2023

15,004 shares

As of March 31, 2022

15,004 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2023

164,714,410 sharesFiscal year ended March 31, 2022

164,243,235 shares

3

[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net revenue
Fiscal year ended

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2023

5,811

28.9

837

137.7

835

141.7

717

126.8

March 31, 2022

4,510

33.8

352

–

345

–

316

–

Basic earnings
per share

Diluted earnings
per share

Fiscal year ended

Yen

Yen

March 31, 2023

4.35

4.31

March 31, 2022

1.92

1.90

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

March 31, 2023

3,203

1,462

42.7

8.28

March 31, 2022

2,118

645

27.3

3.51

Reference:

EquityAs of March 31, 2023:
As of March 31, 2022:%

Yen¥1,366 million¥577 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
A financial results meeting will be held on Thursday, May 11, 2023 for institutional investors, analysts and thepress. The Company plans to post a video of this financial results meeting on its website promptly after the
meeting is held.

4

1. Operating results and financial position(1) Operating results for the year ended March 31, 2023
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 oftransferring (communicating) data safely, securely, and conveniently. Specifically, the Company is engaged inthree businesses: 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 build a stable income stream by continuing the evolution of the SIM business, as wellas to develop the local 4G/5G business and FPoS business to become the pillar of future earnings by investingin the two businesses.
(i) Mobile Communications Business (SIM business)
In the MVNO business model that the Company has created, the Company has continued its efforts toensure a fair competitive environment and has evolved them through repeated deregulation. In particular,a June 2020 ruling by the Minister of Internal Affairs and Communications, which determined that thewholesale telecommunications service charge for the voice call service provided by NTT DOCOMO,
INC. to the Company shall not exceed the amount of the appropriate cost under efficient management plus
appropriate profit, has been made significant contribution to the Company’s earnings continuously. In July
2020, the Company launched the “Nihon Tsushin SIM,” which provides flat-rate voice plans equivalent tothat of major mobile phone operators, and the Company has been profitable for two consecutive periods
since the prior fiscal year, with growth in both subscribed line and quarterly revenue.
In order to keep the “Nihon Tsushin SIM” competitive, the Company has improved their productspecifications timely, and in April 2022, the Company started supporting eSIM, which is embedded indevices such as smartphones, in advance of other MVNO operators (announced on April 6, 2022). An
eSIM is a SIM on which subscriber identity information (profiles) necessary for using telecommunication
services can be remotely written in eSIM-embedded devices such as smartphones so that customers canchange mobile service operators without replacing SIM cards, as was the case before. This will enable
customers to use multiple lines of different mobile operators and/or use separate phone numbers, such as
for private and business purposes, on the same smartphone.
In addition, by March of 2023, the Company has started an identification by the electronic certificatesstored in “My Number Card” as an identification under the Act on Identification, etc. by Mobile VoiceCommunications Carriers of their Subscribers, etc. and for Prevention of Improper Use of Mobile VoiceCommunications Services. In this approach, an identification will be completed upon customer’s reading
their “My Number Card” with their smartphone and they can start using the service on the day of
application, in case of that they choose eSIM. This will improve customer’s convenience and willcontribute to prevent improper use of mobile phones by strict identification.
Revenue of “Nihon Tsushin SIM” are growing steadily for both individual and corporate subscribers, andwith the increase in MNP port in from major mobile phone operators and major MVNOs. In addition, thenumber of subscribers for voice communication services under partner brands is also increasing steadily,
and as a result, the SIM business have seen growth both in the MVNO Business and Enabler Business.
In June 2022, the Company has requested NTT DOCOMO, INC. for an interconnection of voicecommunication networks (announced June 10, 2022). This request, which the Company had been
considering for long time, was made as the Information and Communications Council of the Ministry ofInternal Affairs and Communications presented a policy of allocating mobile numbers (090, etc.) to
MVNOs in December 2021. The Company will secure a stable business foundation by procuring bothdata and voice communication networks through interconnection and aim to become a “Neo Carrier” whocan provide comparable services as mobile operators without owning mobile base stations.

5

(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 theexperience to expand in Japan. A U.S. subsidiary of the Company operates a business that provides SIMs
used for connections with local mobile networks in the U.S. market. For connections with local mobile
networks, it is necessary to write a large amount of highly specialized information to SIMs. The Company
provides SIMs that are able to connect to local mobile networks set up by partner and customer companies
by accumulating and utilizing technologies and expertise in relevant fields through the U.S. subsidiary. In
Japan, the Company participated in a local 5G demonstration project during the fiscal year ending March
31, 2021, and this gave us an experience issues requested by main regional hospitals for local 5G. The
Company will continue to accumulate knowledge in Japan and the U.S., and will utilize the knowledge tobuild introduction example of local 4G/5G business.
(iii) Digital ID (FPoS) Business for Use on Smartphones
Under the “Vision for a Digital Garden City Nation” (vision to realize a comfortable life for everyone sothat they enjoy benefits from digitalization, leaving no one behind by solving regional issues throughdigital implementation) which was declared by the Japanese government in 2021, it was announced onJune 17, 2022 that project applications by Maebashi City, Ebetsu City (Hokkaido Prefecture), and Gunma
Prefecture were adopted.
Among the above, in the project of “Maebashi living-tech promotion business” which was applied by
Maebashi City, a business corporation (“Mebuku Ground Inc.”), which was established with the joint
investment by prominent companies and financial institutions in Gunma Prefecture, released the “mebuku
App,” which utilizes digital ID (“mebuku ID”), in October 2022.
The “mebuku ID” allows the user to access both public services (such as administrative procedures) andprivate services on a smartphone, and by March 2023, several application services has launched, such as“Mebu Class Maebashi,” “my Allergy alert,” “Maebashi Monitoring and Information Notification foraged care + Bulletin Board,” “Good Grow Maebashi,” “OYACO plus,” and “Mutual Assistance Point.” inthe “Maebashi living-tech promotion business”
Similarly, by March 2023, Ebetsu City started building and operating the “Ebetsu City Lifelong Health
Platform,” which provides service applications to maintain and improve the health of citizens, and thisplatform also uses the “mebuku ID” as a digital ID.
The “mebuku ID” platform implements FPoS, so the Company will increase the introduction achievementof FPoS by continuing support of “mebuku ID” and work toward starting commercial services.
As a result of the above, the Group’s consolidated net revenue for the current fiscal year were 6,074 million
yen, an increase of 1,440 million yen (up 31.1%) compared to the previous fiscal year (hereinafter referred toas the “previous year”). This was because of the growth of the flat-rate or semi-flat-rate voice services of“Nihon Tsushin SIM” in the MVNO Business (23.1% year-on-year increase) and the growth of the voiceservices of partner brands in the Enabler Business (40.3% year-on-year increase). The Enabler Businessrevenue include revenue for the FPoS business (consignment fees based on the “Vision for Digital Garden
City Nation”).
Cost of revenue was 3,455 million yen, an increase of 673 million yen (24.2%) compared to the previous year.
This was mainly due to an increase in mobile network procurement costs associated with the growth of“Nihon Tsushin SIM.” Nevertheless, increase in cost of revenue compared to increases in net revenue arelargely avoidable because the mobile networks of both data and voice communications procured by theCompany from NTT DOCOMO, INC. have been set to not exceed the amount of the appropriate costs underefficient management plus appropriate profit. The cost of revenue include the cost of revenue for the FPoS
business (the cost of consignment based on the “Vision for a Digital Garden City Nation”) .
As a result, gross profit was 2,619 million yen, an increase of 767 million yen (41.4%) from the previous year.
Operating profit was 740 million yen (279 million yen for the previous year), and profit attributable to ownersof parent was 690 million yen (294 million yen for the previous year).

6

Financial results by business are as follows:(Millions of yen)
Year-on-year change(%)

Net revenue

For the year ended
March 31, 2022

For the year ended
March 31, 2023

MVNO Business

2,488

3,063

575

23.1

Enabler Business

2,146

3,011

865

40.3

Total

4,634

6,074

1,440

31.1

Year-on-year change

Revenue of 122 million yen (123 million yen in the previous year) from overseas operations in the segment
information is included in the Enabler Business.
(2) Financial position of the year ended March 31, 2023
AssetsCurrent assets at the end of the current fiscal year were 2,312 million yen, an increase of 902 million yen
compared to the end of the previous year. This was mainly due to an increase of 651 million yen in cash anddeposits and an increase of 197 million yen in accounts receivable-trade. Non-current assets were 728 million
yen, an increase of 196 million yen compared to the end of the previous year. This was mainly due to anincrease of 76 million yen in intangible assets and an increase of 97 million yen in investments and otherassets.
As a result, total assets amounted to 3,040 million yen, an increase of 1,096 million yen compared to the endof the previous year.
Liabilities
Current liabilities at the end of the current fiscal year were 1,426 million yen, an increase of 320 million yen
compared to the end of the previous year. This was mainly due to increases of 209 million yen in accounts
payable-trade, 47 million yen in income taxes payable, and 38 million yen in deposits received. Non-current
liabilities were 79 million yen, an increase of 26 million yen compared to the end of the previous year. Thiswas mainly due to an increase of 17 million yen in lease liabilities.
As a result, liabilities amounted to 1,506 million yen, an increase of 346 million yen compared to the end of
the previous year.
Net assets
Net assets at the end of the current fiscal year were 1,534 million yen, an increase of 749 million yen
compared to the end of the previous year. This was mainly due to recording of 690 million yen in profit
attributable to owners of parent. Along with decreasing the amounts of capital and capital reserve, on August
10, 2022, the Company implemented an appropriation of surplus. Capital and capital reserve were decreased
by 4,028 million yen and 2,789 million yen, respectively, and the entire decreased amount was transferred toother capital surplus. By transferring the increase in other capital surplus to retained earnings brought forward,
the deficit was covered, and there was no impact on net assets.
As a result, the equity ratio was 46.1% (33.6% at the end of the previous year).
(3) Status of cash flows for the year ended March 31, 2023
Cash and cash equivalents at the end of the current fiscal year were 1,580 million yen, an increase of 651
million yen compared to the end of the previous year.
The status of cash flows and their factors during the current fiscal year are as follows.
Cash flows from operating activities
Net cash provided by operating activities totaled 851 million yen (21 million yen provided in the previousyear). This was mainly due to recording of 780 million yen in profit before income taxes.

7Cash flows from investing activities
Net cash used by investing activities was 200 million yen (271 million yen used in the previous year). Thiswas mainly due to 39 million yen for the purchase of property, plant and equipment, 110 million yen for thepurchase of intangible fixed assets, and 50 million yen for the purchase of investment securities.
Cash flows from financing activities
Net cash used by financing activities was 1 million yen (150 million yen provided in the previous year).
(4) Outlook for the fiscal year ending March 31, 2023 and beyond
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 oftransferring (communicating) data safely, securely, and conveniently. Specifically, the Company is engaged inthree businesses: 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 build a stable income stream by continuing the evolution of the SIM business, as wellas to develop the local 4G/5G business and FPoS business to become the pillar of future earnings by investingin the two businesses.
In the local 4G/5G business, the Company aims to build advanced showcases in the U.S. and leverage theexperience to expand in Japan.
In the FPoS business, the Company has acquired certification under the Digital Signature Act for “my Digital
Certificate” (the issuing entity is my FinTech Inc., a subsidiary of the Company.) based on its patented FPoS
technology, and are working on its actual use as a digital ID that can be used safely, securely, andconveniently on smartphones.
With the surrounding situation above described, the management of the Company perceives a market
capitalization of 500 billion yen as the growth business scale in three to five years from the launch ofcommercial service of FPoS (launched on October 21, 2022).

2. Basic concept regarding the selection of accounting standards
The Group prepares its consolidated financial statements in accordance with Japanese GAAP, in light of thecomparability of periods of consolidated financial statements and between companies, as well as the burden of
preparing consolidated financial statements under International Financial Reporting Standards (IFRS). The
Company’s policy is to take an appropriate response with respect to the timing of the adoption of IFRS, taking
into consideration various conditions in Japan and overseas.

8

3. Consolidated Financial Statements(1) Consolidated Balance Sheet(Thousands of yen)
As of March 31, 2022
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
Deferred assets
Share issuance costs
Bond issuance costs
Total deferred assets
Total assets

9

As of March 31, 2023

928,688378,641
47,55271
576
57,440△2,692
1,410,277

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

84,111△83,292
818
7,027△4,881
2,145
795,689△766,969
28,719263,727△263,727－
90,093
121,777

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

3,834
2,097
73,999125,984
205,916

4,727
3,229
264,297
9,752
282,00763,281
140,335456
204,073
531,767

128,570
133,884
39,228
301,683
728,056

376
1,937
2,313
1,944,359－－－
3,040,504

(Thousands of yen)
As of March 31, 2022
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 March 31, 2023

421,105
85,27062,055
117,785
27,918630,125
78,842
109,651
120,872
66,559263,951

287,979

127,992
1,106,078

132,150
1,426,180

2,149
50,920－53,0701,159,149

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

4,528,440
2,977,376△6,977,888△2,192525,737

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

126,815

114,472

126,815

114,472

67,86464,792785,210
1,944,359

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

(2) Consolidated Statement of Income and Consolidated Statements of Comprehensive Income
Consolidated Statement of Income(Thousands of yen)
Fiscal year ended
March 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Share of profit of entities accounted forusing equity method
Foreign exchange gains
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
Gain on sale of non-current assets
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

Fiscal year ended
March 31, 2023

4,634,379
2,782,108
1,852,270
1,572,745
279,525

6,074,613
3,455,323
2,619,289
1,878,386
740,903

215

9

5,834

15,10817,263
5,728
29,043

13,556
13,86342,537

52
1,055
2,114
6,407
9,630
298,938

589
376
1,937
67
2,970
780,470100
100
299,038
30,42930,429268,608△25,505
294,114－－780,470
118,941
118,941
661,529△29,146
690,676

Consolidated Statement of Comprehensive Income(Thousands of yen)
Fiscal year ended
March 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

12

Fiscal year ended
March 31, 2023

268,608

661,529△13,972△13,972
254,636△12,342△12,342649,186

280,142

678,333△25,505△29,146

(3) Consolidated Statement of Changes in Equity
Previous fiscal year (From April 1, 2021 to March 31, 2022)(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

4,528,440

2,868,630

Retained earnings△7,272,002

Treasury shares△2,192

Total shareholders'equity122,876

Changes during period
Profit (loss)
attributable to owners ofparentChange in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other than shareholders'equityTotal changes during period
Balance at end of period

294,114294,114108,746

108,746－

108,746

294,114－402,860

4,528,440

2,977,376△6,977,888△2,192525,737

Accumulated other comprehensive income

Balance at beginning of
periodForeign currencytranslation
adjustment

Total accumulated
other comprehensive
income140,788

140,788

Share acquisitionrights38,690Non-controllinginterests

38,994

Total net assets

341,349

Changes during period
Profit (loss)
attributable to owners ofparentChange in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other than shareholders'equity294,114108,746△13,972△13,972

29,17425,79840,999Total changes during period△13,972△13,972

29,17425,798443,860

Balance at end of period

126,815

126,815

67,86464,792785,21013

Current fiscal year (From April 1, 2022 to March 31, 2023)(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

Retained earnings△6,977,888

Treasury shares△2,192

Total shareholders'equity4,528,440

2,977,376

525,737

35,82235,822

71,645△4,028,440

4,028,440－

Changes during period
restricted stock
Transfer from sharecapital to other capitalsurplus
Deficit disposition△6,817,531

Profit (loss)
attributable to owners ofparentNet changes in items
other than shareholders'equityTotal changes during period
Balance at end of period

6,817,531－

690,676

690,676△3,992,618△2,753,267

7,508,207－

762,321535,822

224,109530,319△2,192

1,288,058

Accumulated other comprehensive income

Balance at beginning of
periodForeign currencytranslation
adjustment

Total accumulated
other comprehensive
income126,815

126,815

Share acquisitionrights67,864Non-controllinginterests

64,792

Total net assets

785,210

Changes during period
restricted stock

71,645

Transfer from sharecapital to other capitalsurplus－

Deficit disposition－

Profit (loss)
attributable to owners ofparentNet changes in items
other than shareholders'equity690,676△12,342△12,342

28,353△29,146△13,135

Total changes during period△12,342△12,342

28,353△29,146

749,185

Balance at end of period

114,472

114,472

96,21835,646

1,534,395

14

(4) Consolidated Statement of Cash Flows(Thousands of yen)
Fiscal year ended
March 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)
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 refund (paid)
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
Repayments of long-term borrowings
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

Fiscal year ended
March 31, 2023

299,038
22,562△215
52780,470
75,904△9589△5,834△15,108△16,733△36,426
25,527△355,377△15,077△192,551△30,947
207,955△524

475△39,243

611

22,815

1,837

2,366

3

108,433
26,441215△52△4,631

78,856
893,0099△369△41,306

21,973

851,341△97,421△171,698－△2,303△39,932△110,238△50,000△3,747

－

3,065

△336

－

△271,759△200,851△9,600－－△1,160160,050－

150,450△1,160

2,557

2,601

△96,778

651,931

1,025,466

928,688928,688

1,580,619