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.
February 13, 2023

Consolidated Financial Results
for the Nine Months Ended December 31, 2022
[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 filing of Quarterly Report:
Scheduled date of payment of dividend:
Preparation of supplementary materials for financial results:
Holding of quarterly financial results meeting:Stock exchange listings: TSE
URL: https://www.lac.co.jp/english/February 14, 2023
YesNone(All amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2022
(from April 1, 2022 to December 31, 2022)(1) Consolidated Operating Results(% of change from previous year)

Net sales

Operating income

Net income attributableto owners of the parent

Ordinary income
Millions of yen%

Millions of yen%487
453
Note: Comprehensive income: 3rd Quarter of FY2022 (As of December 31, 2022) (1,146) millions of yen (-%)

7.5(1.0)(1,050)525

121.7

December 31, 2022
December 31, 2021

Millions of yen%

Millions of yen%

31,16730,612

1.8
1.1

493
365

35.0
(13.1)

3rd Quarter of FY2021 (As of December 31, 2021)

Net income pershare
December 31, 2022
December 31, 2021

779 millions of yen (219.9%)

Diluted net
income per share

YenYen(34.81)
20.56-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

December 31, 2022
March 31, 2022

Shareholders’equity ratio

Net assets

Net assets
per share

Millions of yen

Millions of yen%

Yen

21,48425,306

13,857
15,76964.5
62.3

459.27522.65

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

13,857 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.

2. Dividends
Dividend per share
1st Quarter-End 2nd Quarter-End 3rd Quarter-End Fiscal Year-End
March 31,2022
March 31,2023

TotalYen

Yen

Yen

Yen

Yen-

11.00
12.00

-

13.00

24.00

14.0026.00

March 31,2023 (Forecast)
Note: Revisions to the most recently announced forecast: None- more --2-

3. Forecast for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)(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

43,000

0.8

1,600

0.3

1,600

(9.6)

(300)

-(9.94)

Full year

Note: Revisions to the most recently announced forecast: Yes* Notes(1) Changes of important subsidiaries during the period(Changes of specific subsidiaries in accordance with changes in the scope of consolidation):(2) Adoption of specific accounting treatments to the preparation of consolidated quarterly
financial statements:

None

None

(3) 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(4) Number of shares issued (common shares)
1) Number of shares issued (including treasury stock):
As of December 31, 2022

31,293,120 shares

As of March 31, 2022

31,293,120 shares

2) Number of treasury stocks:
As of December 31, 2022

1,119,749 shares

As of March 31, 2022

1,121,429 shares

3) Number of average shares during the period:
Nine months ended December 31, 2022

30,172,962 shares

Nine months ended December 31, 2021

25,561,068 shares

Note: The number of treasury shares at the end of the period includes the 472,000 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.

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

As of December 31, 2022

Cash and deposits

9,785,552

6,287,010

Notes and accounts receivable - trade, and contract assets

5,843,976

4,801,358

926,504

1,282,873

AssetsCurrent assets

MerchandiseWork in process

171,045609,301

Other

1,146,271

1,518,804

Total current assets

17,873,350

14,499,348

1,948,252

1,800,675

Non-current assets
Property, plant and equipment
Intangible assets
Goodwill

433,541

379,349

Software1,402,455

948,431

Software in progress
Other

1,087,907

86,487

9,767

70,091

Total intangible assets

2,933,672

1,484,358

Investments and other assets
255,713809,486

Other

Deferred tax assets

2,295,681

2,890,683

Total investments and other assets

2,551,395

3,700,170

7,433,320

6,985,204

25,306,670

21,484,552

Accounts payable - trade

3,559,157

3,158,947

Current portion of long-term borrowings

Total non-current assets
Total assets
Liabilities
Current liabilities

1,332,000

1,336,000

Income taxes payable

307,727

77,003

Provision for bonuses

172,795

74,189Provision for loss on order received

17,211

67,771Other

2,568,636

2,579,994

Total current liabilities

7,957,527

7,293,906

1,336,000－Non-current liabilities
Long-term borrowings
Net defined benefit liabilities

8,441

6,409

Provision for directors’ share-based remuneration

31,616

31,616

Provision for employees’ share-based remuneration

150,660

201,993

Other53,095

92,826

1,579,813

332,846

9,537,341

7,626,753

Total non-current liabilities
Total liabilities- more --4-(Thousands of yen)
As of March 31, 2022

As of December 31, 2022

Share capital

2,648,075

2,648,075

Capital surplus

5,659,036

5,659,036

Retained earnings

8,019,596

6,202,999

Treasury shares(614,562)(612,968)

15,712,145

13,897,141

Valuation difference on available-for-sale securities

41,509(62,991)

Foreign currency translation adjustment

15,674

23,649Total accumulated other comprehensive income

57,183(39,342)

15,769,329

13,857,799

25,306,670

21,484,552

Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income

Total net assets
Total liabilities and net assets- more --5-(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
Nine months ended
December 31, 2021
30,612,278

Nine months ended
December 31, 2022
31,167,563

Cost of sales

24,346,323

24,788,602

Gross profit

6,265,955

6,378,961

Selling, general and administrative expenses

5,900,700

5,885,895

365,254

493,065Interest income

401

Dividend income

7,879

1,168
－Commission income

2,157

2,183

Insurance dividend

4,212

4,236

Subsidy income

29,2577,233

Equity in earnings of affiliates

63,465

3,726

Gain on investments in partnership

9,284

6,108

Other

4,825

7,768

121,484

32,425Net sales

Operating income
Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses

9,201

4,525

Commission fees

15,321

13,779Foreign exchange losses

7,026

18,488

Other

1,455

787

Total non-operating expenses

33,00537,580Ordinary income

453,733

487,910Gain on sale of shares of subsidiaries

219,231－

Gain on sales of investment securities

55,915－

Total extraordinary income

275,146－271

66,975－Extraordinary income

Extraordinary losses
Loss on disposal of noncurrent assets
Impairment loss

27,971－

Loss on system development
Office transfer expenses

123

1,820,028－

Total extraordinary losses

28,366

1,887,003

Income (loss) before income taxes

700,514(1,399,093)

Income taxes - current

240,233159,416

Income taxes - deferred(64,529)(508,048)

Total income taxes

175,704(348,631)

Net income (loss)

524,809(1,050,461)

Net income (loss) attributable to non-controlling interests
Net income (loss) attributable to owners of the parent- more -(761)－525,570(1,050,461)

-6-(3) Consolidated Statements of Comprehensive Income(Thousands of yen)
Nine months ended
December 31, 2021
Net income (loss)

524,809

Nine months ended
December 31, 2022
(1,050,461)

255,133(104,501)

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

(471)

7,975

254,661(96,526)

779,471(1,146,987)

780,232(1,146,987)

(761)

－

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable
to non-controlling interests- more### -