Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended June 30, 2022
(Based on Japanese GAAP)
August 4, 2022
Company name:Computer Institute of Japan, Ltd.

Stock exchange listing: Tokyo
Stock code:
4826
Representative:
Inquiries:

URL

https://www.cij.co.jp/President and Chief Executive Officer
Executive Officer Management Planning

Dept. Manager
Scheduled date of ordinary general meeting of shareholders:

Akihiko Sakamoto
Takashi Morita

TEL045-222-0555

September 15, 2022

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

September 15, 2022
August 30, 2022

Preparation of supplementary material on financial results:
Holding of financial results meeting:

YesYes(for analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2022 (from July 1, 2021 to June 30, 2022)(1) Consolidated operating results
Net salesYear ended June 30, 2022
Year ended June 30, 2021

Millions of yen
21,467
20,392

Earnings per share

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
5.3
1,570
13.2
1,598
14.5
971
5.4(1.4)
1,386(11.0)
1,396(9.0)
921(12.4)
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
7.2
9.7
7.3
–
7.1
8.8
6.8

Diluted earnings pershare

Yen
49.16
46.43

Year ended June 30, 2022
Year ended June 30, 2021
(2) Consolidated financial position

Total assets
As of June 30, 2022
As of June 30, 2021

Net assets

Equity ratio

Millions of yen
16,680
16,251Millions of yen
13,74013,104

Cash flows fromoperating activities
Millions of yen
1,578
701

Cash flows frominvesting activities
Millions of yen(1,946)85

Net assets per share%
82.4
80.6

Yen
694.93664.51(3) Consolidated cash flows

Year ended June 30, 2022
Year ended June 30, 2021

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
(708)
6,050
(142)
7,132

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended June 30, 2021
Year ended June 30, 2022
Year ending June 30, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%––––––

23.00
25.00

23.00
25.00

377
494

41.350.9

3.0
3.7–––

25.00

25.00

149.4

3. Forecast of consolidated financial results for the year ending June 30, 2023 (from July 1, 2022 to June 30, 2023)

Net sales

Full year

Millions of yen
22,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
2.5
1,500(4.5)
1,500(6.1)
1,000
3.0
50.57

4. Notes(1) Changes in significant subsidiaries during the year ended June 30, 2022(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022

22,266,096 shares As of June 30, 2021

22,266,096 shares

Number of treasury shares at the end of the period
As of June 30, 2022

2,493,188 shares As of June 30, 2021

2,546,196 shares

19,758,729 shares Year ended June 30, 2021

19,850,169 shares

Average number of shares during the period
Year ended June 30, 20222

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of June 30, 2021

As of June 30, 2022

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade7,132,053
3,762,447

6,450,841
3,104,220

Contract assets
Securities–
1,900,030

419,835
2,112,923

Merchandise and finished goods
Work in process

1,400
25,404

1,656
6,636

Raw materials and supplies
Other

3,934
258,613

6,342
228,679

13,083,883

12,331,136

311,861(196,045)

494,495(123,362)

115,816

371,132

38,57678,224

223,459
5,000

196,012(154,438)

237,573(157,242)

41,57380,330274,191

679,922

Software
Goodwill

442,036
45,747462,355
451,976

Other

21,12021,120Total intangible assets

508,905

935,451

1,439,790250,291

1,664,609
228,570

Other
Allowance for doubtful accounts

695,369(766)

841,106(794)

Total investments and other assets

2,384,685

2,733,492

3,167,782

4,348,866

16,251,666

16,680,002

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Deferred tax assets

Total non-current assets
Total assets3

(Thousands of yen)
As of June 30, 2021

As of June 30, 2022

Liabilities
Current liabilities
Accounts payable - trade707,913756,505

Short-term borrowings
Accounts payable - other

560,000
558,568

280,015476,325

Income taxes payable
Contract liabilities

271,643–

263,163
93,310

Provision for bonuses
Provision for loss on orders received

433,419424

440,958–

Other

556,637

558,796

3,088,606

2,869,075

Retirement benefit liability
Other

52,671
6,245

42,822
27,234

Total non-current liabilities

58,91670,057

3,147,522

2,939,133

Shareholders' equity
Share capital

2,270,228

2,270,228

Capital surplus
Retained earnings

2,463,693
9,543,037

2,486,241
10,136,358

Treasury shares(1,241,655)(1,200,049)

Total shareholders' equity

13,035,303

13,692,778

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

68,840–42,516
5,574

Total accumulated other comprehensive income

68,84048,091

13,104,143

13,740,869

16,251,666

16,680,002

Total current liabilities
Non-current liabilities

Total liabilities
Net assets

Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
June 30, 2021

Fiscal year ended
June 30, 2022

Net sales
Cost of sales

20,392,280
16,443,916

21,467,114
17,070,489

Gross profit

3,948,363

4,396,625

293,544760,177
44,766
180,732
206,973
64,219
121,725
209,357
18,299661,947

277,266
857,32164,969207,742
130,783
68,506135,990242,731
89,053751,9932,561,742

2,826,359

1,386,621

1,570,266

14,431
11,614
–
–
8,077
5,948

11,12418,898
11,559
7,501
–
8,780

40,071

57,864

1,015
1,992
19,908
–
7,559

1,669
–
16,393
9,074
2,848

Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries and allowances
Provision for bonuses
Welfare expenses
Commission expenses
Recruitment expenses
Depreciation
Rent expenses
Amortization of goodwill
OtherTotal selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income from buildings
Insurance claim income
Surrender value of insurance policies
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Commission for purchase of treasury shares
Amortization of long-term prepaid expenses
Foreign exchange losses
OtherTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on liquidation of investment securities

30,47629,986

1,396,216

1,598,144

293
6,724

17,228–Total extraordinary income

7,017

17,228Extraordinary losses
Office relocation expenses
Impairment losses
Merger expenses––
26,260180,205
24,248–

Total extraordinary losses

26,260204,454

Profit before income taxes

1,376,973

1,410,918

Income taxes - current
Income taxes - deferred

466,218(11,052)

443,927(4,294)

Total income taxes

455,166

439,633

Profit921,807971,285

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5171

–

921,635

971,285

Consolidated statements of comprehensive income(Thousands of yen)Profit
Other comprehensive income

Fiscal year ended

Fiscal year ended

June 30, 2021

June 30, 2022
921,807971,285

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

56,222–(26,323)
5,574

Total other comprehensive income

56,222(20,749)

978,029

950,536

977,858

950,536

171–

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended June 30, 2021(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,270,228

Retained earnings

2,680,761

Treasury shares

9,323,531(1,580,178)

Total shareholders'equity
12,694,343

Changes during period
Dividends of surplus(334,247)(334,247)

Profit attributable to ownersof parent

921,635

921,635

Purchase of treasury shares
Cancellation of treasury
shares(585,000)

Transfer of loss on disposalof treasury shares

367,882

Purchase of shares of
consolidated subsidiaries(246,477)(246,477)

585,000–(367,882)

–49

49

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period–(217,068)

219,505

338,522

340,960

2,270,228

2,463,693

9,543,037(1,241,655)

13,035,303

Accumulated othercomprehensive income
Valuation difference
on available-for-salesecurities
Balance at beginning of period

12,617

Non-controllinginterests

Total net assets

1,805

12,708,765

Changes during period
Dividends of surplus(334,247)

Profit attributable to ownersof parent

921,635

Purchase of treasury shares(246,477)

Cancellation of treasury
shares–Transfer of loss on disposalof treasury shares–

Purchase of shares of
consolidated subsidiaries

49

Net changes in items otherthan shareholders' equity

56,222(1,805)54,417

Total changes during period

56,222(1,805)395,377

Balance at end of period

68,840–13,104,143

7

Fiscal year ended June 30, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,270,228

Retained earnings

2,463,693

9,543,037

Treasury shares(1,241,655)

Total shareholders'equity
13,035,303

Changes during period
Dividends of surplus(377,964)(377,964)

Profit attributable to ownersof parent

971,285

971,285

Purchase of treasury shares
Disposal of treasury shares

22,548(1,210)(1,210)42,81665,364

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period–

22,548593,32141,605

657,474

2,270,228

2,486,241

10,136,358(1,200,049)

13,692,778

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference
on available-for-salesecurities

Foreign currencytranslation adjustment

Total accumulated
other comprehensive
income68,840–68,840Total net assets

13,104,143

Changes during period
Dividends of surplus(377,964)

Profit attributable to ownersof parent

971,285

Purchase of treasury shares(1,210)

Disposal of treasury shares

65,364

Net changes in items otherthan shareholders' equity(26,323)

5,574(20,749)(20,749)

Total changes during period(26,323)

5,574(20,749)

636,725

Balance at end of period

42,516

5,574

48,091

13,740,869

8Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended

Fiscal year ended

June 30, 2021

June 30, 2022

Cash flows from operating activities
Profit before income taxes

1,376,973

1,410,918

Depreciation
Office relocation expenses

142,206–

172,015
180,205

Impairment losses
Amortization of goodwill–
18,29924,24889,053

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses(6,769)
5,363

28
4,396

Increase (decrease) in retirement benefit liability
Loss (gain) on sale of investment securities

3,669(293)(25,353)(17,228)

Interest and dividend income
Interest expenses(26,045)
1,015(30,023)
1,669

Decrease (increase) in trade receivables
Decrease (increase) in notes and accounts receivable-trade(433,602)–

and contract assets
Decrease (increase) in inventories–

392,915

125,928

16,178

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other

7,116
117,546

14,594(203,063)

Other, net(107,181)

170,625

Subtotal

1,224,227

2,201,180

25,67430,499(1,131)(546,934)(1,598)(471,703)

Interest and dividends received
Interest paid
Income taxes paid
Payments of office relocation expenses–(180,205)

701,836

1,578,172

Payments into time deposits
Proceeds from withdrawal of time deposits(855,051)
925,096(800,000)
800,000

Purchase of securities
Proceeds from redemption of securities(800,000)
1,014,000(1,500,000)
1,100,000

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(104,887)–(256,462)
137,337

Purchase of intangible assets
Purchase of investment securities(113,733)(95)(150,086)(300,000)

496–

62,618120,000–(1,247,604)

Net cash provided by (used in) operating activities
Cash flows from investing activities

Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Other, net

19,36887,422

Net cash provided by (used in) investing activities

85,194(1,946,774)

9

(Thousands of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

June 30, 2021

June 30, 2022
440,000(299,997)

Repayments of long-term borrowings
Purchase of treasury shares–(248,469)(30,000)(1,210)

Dividends paid
Dividends paid to non-controlling interests(332,404)(122)(376,861)–(1,805)–Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents–

38(142,802)(708,030)–(4,578)Net increase (decrease) in cash and cash equivalents

644,228(1,081,212)

Cash and cash equivalents at beginning of period

6,487,825

7,132,053

Cash and cash equivalents at end of period

7,132,053

6,050,841

10