Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In theevent of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
May 12, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
[Japanese GAAP]
Company name:
LAC Co., Ltd.
Securities code:
3857
Representative:
Itsuro Nishimoto, President and Representative Director
Contact:
Takayuki Morozumi, Executive Officer
Scheduled date of Ordinary General Meeting of Shareholders:
Scheduled date of payment of dividend:
Scheduled date of filing of Japanese annual securities report:
Preparation of supplementary materials for financial results:
Holding of quarterly financial results meeting:Stock exchange listings: TSE
URL: https://www.lac.co.jp/english/

June 21, 2023
June 22, 2023
June 21, 2023
YesYes(All amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
(from April 1, 2022 to December 31, 2023)(1) Consolidated Operating Results(% of change from previous year)

Net sales

March 31, 2023
March 31, 2022

Operating income

Net income attributableto owners of the parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

44,01842,660

3.2
(2.4)

1,775
1,595

11.3
(24.7)

1,813
1,769

2.5
(21.1)

(147)
1,401

359.8

Note: Comprehensive income: Fiscal Year Ended (As of March 31, 2023)
Fiscal Year Ended (As of March 31, 2022)

Net income pershare
March 31, 2023
March 31, 2022

(184) millions of yen (-%)
1,435 millions of yen (346.5%)

Diluted net
income per share

Returnon equity

Returnon assets

Operatingincome margin

Yen

Yen%%%(4.88)
53.60-(1.0)
10.2

7.6
7.1

4.0
3.7

Reference: Equity in earnings (losses) of affiliates: Fiscal Year Ended (As of March 31, 2023)
Fiscal Year Ended (As of March 31, 2022)

44 millions of yen
123 millions of yen

Note: The Company has introduced a stock benefit trust and an employee stock ownership plan. The Company’s shares remaining in these trusts arerecorded as treasury shares under shareholders’ equity and, when calculating earnings per share, these shares are deducted from the average
number of shares outstanding during the period.

(2) Consolidated Financial Position
Total assets

March 31, 2023
March 31, 2022

Shareholders’equity ratio

Net assets

Net assets
per share

Millions of yen

Millions of yen%

Yen

22,57225,306

14,82015,76965.7
62.3

491.17522.65

Reference: Shareholders’ equity: As of March 31, 2023
As of March 31, 2022

14,820 millions of yen
15,769 millions of yen

Note: The Company’s shares remaining in the stock benefit trust and employee stock ownership plan, which are recorded as treasury shares undershareholders’ equity, are, when calculating earnings per share, deducted from the number of shares outstanding at the end of the period.

(3) Cash Flow
Operating activities

March 31, 2023
March 31, 2022

Investing activities

Financing activities

Cash and cash
equivalents at end of year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

136
2,956

(1,634)(105)(2,147)
562

6,144
9,785

- more --2-

2. Dividends
Dividend per share
1Q
March 31,2022
March 31,2023
March 31,2024 (Forecast)

2Q

FiscalYear-End

3Q

Amounts ofdividend(total)

Total

Dividend
ratio

Dividend
on equity

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

―
―
―

11.00
12.00
12.00

―
―
―

13.00
14.00
14.00

24.00
26.00
26.00

684
796

44.8
―
62.8

4.9
5.1

Note: The total amount of dividends includes the dividends paid (11 millions of yen in the fiscal year ended March 31, 2022; 12 millions of yen in thefiscal year ended March 31, 2023) on the Company’s treasury shares held by the Custody Bank of Japan, Ltd. (Trust Account E) as assets in trustof the stock benefit trust and employee stock ownership plan.

3. Forecast for the Fiscal Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)(Percentages represent year-on-year changes)

Net sales

Operating income

Net income
per share

Net Income attributableto owners of the parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

46,500

5.6

1,900

7.0

1,900

4.8

1,250

－41.43Full year* Notes(1) Changes of important subsidiaries during the period(Changes of specific subsidiaries in accordance with changes in the scope of consolidation):

None(2) Changes in accounting policies and accounting estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards:

Yes2) Changes in accounting policies other than 1) above:None3) Changes in accounting estimates:

None4) Restatements:

None(3) Number of shares issued (common shares)
1) Number of shares issued (including treasury stock):
As of March 31, 2023

31,293,120 shares

As of March 31, 2022

31,293,120 shares

2) Number of treasury stocks:
As of March 31, 2023

1,119,399 sharesAs of March 31, 2022

1,121,429 shares

3) Number of average shares during the period:
Fiscal year ended March 31, 2023

30,173,064 sharesFiscal year ended March 31, 2022

26,142,193 shares

Note: The number of treasury shares at the end of the period includes the 471,600 shares held by Custody Bank of Japan, Ltd. (Trust Account E) asassets in trust of the stock benefit trust and employee stock ownership plan.

* This financial report is outside the scope of the audit by certified public accountants or auditing firms.
* Explanation of the proper use of forecast and other notes
The forward-looking statements such as result forecasts included in this document are based on the information available
to the Company at the time of the announcement and on certain assumptions considered reasonable, and the Company makes
no representations as to their achievability. Accordingly, the Company cannot make promises to achieve such forecasts. Actual
business and other results may differ substantially due to various factors.

-3-4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
As of March 31, 2022

As of March 31, 2023

Cash and deposits

9,785,552

6,144,725

Accounts receivable

5,843,976

6,723,341

926,504

1,247,095

AssetsCurrent assets

MerchandiseWork in process

171,045

194,679

Other

1,146,271

1,621,653

Total current assets

17,873,350

15,931,494

Property, plant and equipment
Buildings

1,709,196

1,719,935

Accumulated depreciation(974,703)(1,077,570)

Buildings, net

734,493642,364

Non-current assets

Structures

45,73345,733

Accumulated depreciation(31,281)(32,845)

Structures, net

14,451

12,887

Tools, furniture and fixture

3,335,873

3,422,820

Accumulated depreciation(2,204,116)(2,457,285)

Tools, furniture and fixture, net

1,131,757

965,535

64,91864,918Land
Leased assets

4,986

18,889

Accumulated depreciation(2,354)(5,638)

Leased assets, net

2,631

13,250Construction in progress－1,3091,948,252

1,700,264

Goodwill

433,541

361,284

Software1,402,455

1,022,962

Software in progress
Leased assets

1,087,907

9,011

1,936

58,884

7,831

7,533

2,933,672

1,459,678

Investment securities

1,021,730

1,701,121

Leasehold and guarantee deposits

1,155,720

1,157,510

Deferred tax assets

255,713445,370

Other

126,526

185,211

Allowance for doubtful accounts(8,296)(8,296)2,551,395

3,480,918

7,433,320

6,640,861

25,306,670

22,572,356

Total property, plant and equipment
Intangible assets

Other
Total intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

-4-(Thousands of yen)
As of March 31, 2022

As of March 31, 2023

Accounts payable - trade

3,559,157

3,303,118

Current portion of long-term borrowings

1,332,000

1,336,000

Liabilities
Current liabilities

Lease obligations

25,70240,945

Income taxes payable

307,727

190,628

Contract Liabilities

1,183,630

937,476

Provision for bonuses

172,795

164,877

Provision for loss on order received

17,211

87,690Other

1,359,304

1,349,397

Total current liabilities

7,957,527

7,410,134

Non-current liabilities
Long-term borrowings
Lease obligations

1,336,000－53,095

83,997

Net defined benefit liabilities

8,441

7,267

Provision for directors’ share-based remuneration

31,616

31,616

Provision for employees’ share-based remuneration

150,660

219,055

Total non-current liabilities

1,579,813

341,936

9,537,341

7,752,070

Share capital

2,648,075

2,648,075

Capital surplus

5,659,036

5,659,036

Retained earnings

8,019,596

7,106,213

Treasury shares(614,562)(612,633)

15,712,145

14,800,691

Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

41,5092,188

Foreign currency translation adjustment15,674

17,406

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

57,183

19,594

15,769,329

14,820,286

25,306,670

22,572,356

-5-(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
Period ended
March 31, 2022
42,660,125

Period ended
March 31, 2023
44,018,530

Cost of sales

33,204,780

34,407,795

Gross profit

9,455,345

9,610,735

Selling, general and administrative expenses

7,860,178

7,835,733

Operating income1,595,166

1,775,002

Interest income

1,481

Dividend income

7,879

3,994
－Net sales

Non-operating income

Commission income

2,889

2,915

Subsidy income

62,086

15,425Equity in earnings of affiliates

123,483

44,501

Insurance dividend

4,212

4,236

Gain on investments in partnership

29,741

6,826

Other

5,212

8,699

236,987

86,600Total non-operating income
Non-operating expenses
Interest expenses

11,462

5,633

Commission fees

19,86818,148Foreign exchange losses

12,136

Stock issuance cost

17,66922,696－Other

1,455

1,725

Total non-operating expenses

62,592

48,204

1,769,561

1,813,397

Gain on sales of investment securities

224,145－

Gain on sale of shares of subsidiaries

219,231－

Total extraordinary income

443,376－317

68,082－

Ordinary income
Extraordinary income

Extraordinary losses
Loss on disposal of noncurrent assets
Impairment loss
Loss on system development

27,971－

1,854,462

Loss on valuation of investment securities

151,033

27,917

Loss on valuation of shares of subsidiaries and associates

1,456

Loss on sales of investments in subsidiaries

2,589

5,519
－

Loss on valuation of golf club membership

9,300

－

Office transfer expenses

123－

Total extraordinary losses

192,791

1,955,981

Income (loss) before income taxes

2,020,146(142,584)

Income taxes - current

591,272

177,384

Income taxes - deferred

28,394(172,720)

Total income taxes

619,667

4,663

Net income (loss)

1,400,479(147,247)

(761)

－

1,401,240(147,247)

Net income (loss) attributable to non-controlling interests
Net income (loss) attributable to owners of the parent

-6-(3) Consolidated Statements of Comprehensive Income(Thousands of yen)
Period ended
March 31, 2022
Net income (loss)

1,400,479

Period ended
March 31, 2023
(147,247)

29,295(39,321)

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

5,874

1,731

Total other comprehensive income

35,170(37,589)

1,435,649(184,836)

1,436,410(184,836)

(761)

－

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- more --7-(4) Consolidated Statement of Cash Flow
(Thousands of yen)
Period ended
March 31, 2022

Period ended
March 31, 2023

Cash flows from operating activities
Profit before income taxes

2,020,146(142,584)

Depreciation

950,193

918,841

Impairment loss

27,971－Amortization of goodwill

72,25672,256

Increase (decrease) in provision for bonuses

19,951(7,917)

Increase (decrease) in Provision for loss on order received

3,938

70,479

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for employees’ share-based
remuneration
Interest and dividend income
Share of loss (profit) of entities accounted
for using equity method
Interest expenses

2,446(1,173)(1,687)70,460(9,360)(3,994)(123,483)(44,501)

11,462

5,633

(402)
(29,741)
123
151,033
1,456(3,295)(6,826)－
27,917
5,519

Loss(gain) on sale of investment securities(224,145)－

Loss (gain) on sales of investments in subsidiaries(216,642)－

Loss associated with system development－

1,854,462

Loss on disposal of noncurrent assets

317

68,082

Decrease (increase) in trade receivables

979,718(878,982)

Decrease (increase) in inventories

452,180(343,841)

Decrease (increase) in other current assets

265,522(339,933)

Increase (decrease) in notes and accounts payable–trade(215,255)(256,039)

Increase (decrease) in accrued consumption taxes(66,827)(180,020)

Increase (decrease) in other current liabilities(317,737)(217,305)

Foreign exchange losses (gains)
Loss(gain) on investments in investment partnerships
Office transfer expenses
Loss (gain) on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates

Other, net

20,350(46,773)

3,773,787

620,463Interest and dividends received

23,38255,449Interest paid

(14,294)(7,754)

Office transfer expenses paid

(69,807)－

Income taxes paid

(756,554)(531,478)

Net cash provided by (used in) operating activities

2,956,512

136,679

Subtotal- more --8-(Thousands of yen)
Period ended
March 31, 2022

Period ended
March 31, 2023

Cash flows from investing activities
Purchase of property, plant and equipment(596,429)(260,083)(500)－Purchases of software(341,999)(602,990)

Purchase of investment securities(60,000)

Proceeds from sales of investments in securities

671,784(791,070)
－

9,700

－

Purchase of intangible assets

Proceeds from withdrawal of investment securities
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of shares of subsidiaries and associates

243,560－(200,000)－

Proceeds from share of profits on investments in capital

36,440

Collection of loans receivable

20,00021,440－

Payments of leasehold and guarantee deposits(2,903)(1,567)

Proceeds from refund of leasehold and guarantee deposits

114,475

72

Net cash provided by (used in) investing activities(105,872)(1,634,200)(34,240)(22,902)

Cash flows from financing activities
Repayments of lease obligations(8,385)－

Repayments of long-term borrowings(2,068,000)(1,332,000)

Proceeds from issuance of shares

3,296,150

－

25－

－

(28,000)

(53)

(136)

Net increase (decrease) in Short-term loans payable

Proceeds from sales of treasury stock
Payments for Commission fees
Purchase of treasury shares
Cash dividends paid

(622,902)(764,927)

Net cash provided by (used in) financing activities

562,592(2,147,966)

4,972

4,660

Net increase (decrease) in cash and cash equivalents

3,418,206(3,640,827)

Cash and cash equivalents at beginning of period

6,367,346

9,785,552

Cash and cash equivalents at end of period

9,785,552

6,144,725

Effect of exchange rate change on cash and cash equivalents###