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.
November 9, 2022

Consolidated Financial Results
for the Six Months Ended September 30, 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/

November 11, 2022
December 2, 2022
Yes
Yes(All amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Six Months Ended September 30, 2022
(from April 1, 2022 to September 30, 2022)(1) Consolidated Operating Results(% of change from previous year)

Net sales
September 30, 2022
September 30, 2021

Operating income

Net income attributableto owners of the parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

20,382
19,6683.60.8133(45)

-133
15

778.1
604.4

20
126(83.9)
191.0

Note: Comprehensive income: 2nd Quarter of FY2022 (As of September 30, 2022)
2nd Quarter of FY2021 (As of September 30, 2021)

Net income pershare
September 30, 2022
September 30, 2021

(67) millions of yen (-%)
529 millions of yen (-%)

Diluted net
income per share

YenYen

0.67
4.94

-

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

September 30, 2022
March 31, 2022

Shareholders’equity ratio

Net assets

Net assets
per share

Millions of yen

Millions of yen%

Yen

23,74825,30615,305
15,76964.4
62.3

507.25522.65

Reference: Shareholders’ equity: As of September 30, 2022
As of March 31, 2022

15,305 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

-

14.00

26.00

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

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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

Net Income attributableto owners of the parent

Ordinary income

per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

50,000

17.2

2,100

31.6

2,100

18.7

1,410

0.6

46.73

Full year

Note: Revisions to the most recently announced forecast: None

* 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 September 30, 2022

31,293,120 shares

As of March 31, 2022

31,293,120 shares

2) Number of treasury stocks:
As of September 30, 2022

1,119,849 shares

As of March 31, 2022

1,121,429 shares

3) Number of average shares during the period:
Six months ended September 30, 2022

30,172,769 shares

Six months ended September 30, 2021

25,560,851 shares

Note: The number of treasury shares at the end of the period includes the 472,100 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 September 30, 2022

AssetsCurrent assets
Cash and deposits

9,785,552

7,826,217

Notes and accounts receivable - trade, and contract assets

5,843,976

5,015,602

926,504

1,124,272

MerchandiseWork in process

171,045482,815

Other

1,146,271

1,297,306

Total current assets

17,873,350

15,746,214

1,948,252

1,871,495

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

433,541

397,413

Software1,402,455

1,218,877

Software in progress
Other

1,087,907

1,348,932

9,767

68,056

Total intangible assets

2,933,672

3,033,278

Investments and other assets
255,713317,041

Other

Deferred tax assets

2,295,681

2,780,901

Total investments and other assets

2,551,395

3,097,942

7,433,320

8,002,716

25,306,670

23,748,930

Accounts payable - trade

3,559,157

3,320,920

Current portion of long-term borrowings

Total non-current assets
Total assets
Liabilities
Current liabilities

1,332,000

2,002,000

Income taxes payable

307,727

149,015

Provision for bonuses

172,795

170,579

Provision for loss on order received

17,21165,044Other

2,568,636

2,395,269

Total current liabilities

7,957,527

8,102,828

1,336,000－Net defined benefit liabilities

8,441

15,826

Provision for directors’ share-based remuneration

31,616

31,616

Provision for employees’ share-based remuneration

150,660

184,370

Other

53,095

109,046

1,579,813

340,858

9,537,341

8,443,687

Non-current liabilities
Long-term borrowings

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

As of September 30, 2022

Net assets
Shareholders' equity
Share capital

2,648,075

2,648,075

Capital surplus

5,659,036

5,659,036

Retained earnings

8,019,596

7,641,491

Treasury shares(614,562)(613,062)

15,712,145

15,335,540

Valuation difference on available-for-sale securities

41,509(46,184)

Foreign currency translation adjustment

15,674

15,887Total accumulated other comprehensive income

57,183(30,297)

15,769,329

15,305,243

25,306,670

23,748,930

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)Six months ended
September 30, 2021
19,668,573

Six months ended
September 30, 2022
20,382,773

Cost of sales

15,764,815

16,291,287

Gross profit

3,903,757

4,091,485Selling, general and administrative expenses

3,949,380

3,957,910(45,623)

133,575

Non-operating income
Interest income

254

Dividend income

7,879

613
－Commission income

1,429

1,451

Subsidy income

19,1333,728

Equity in earnings of affiliates
Gain on investments in partnership

35,854

8,865

9,284

6,108

Other

7,325

10,078

Total non-operating income

81,16230,844
3,378

Net sales

Operating income (loss)

Non-operating expenses
Interest expenses

6,678

Commission fees

10,2109,071

Foreign exchange losses

1,978

17,719

Other

1,455

645

Total non-operating expenses

20,32230,814

15,216

133,605

Gain on sale of shares of subsidiaries

219,231－

Total extraordinary income

219,231－

Loss on disposal of noncurrent assets
Office transfer expenses

271
123

66,975－

Total extraordinary losses

394

66,975

Income before income taxes

234,053

66,629

Income taxes - current
Income taxes - deferred

95,017
13,18669,008(22,664)

Total income taxes

108,203

46,343

Net income

125,850

20,286(476)－

126,326

20,286

Ordinary income
Extraordinary income

Extraordinary losses

Net income (loss) attributable to non-controlling interests
Net income attributable to owners of the parent- more --6-Consolidated Statements of Comprehensive Income(Thousands of yen)

Net income

Six months ended
September 30, 2021
125,850Six months ended
September 30, 2022
20,286

408,785(87,694)

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment(4,663)

213

Total other comprehensive income

404,122(87,480)

529,972(67,194)

530,448(67,194)(476)－Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable
to non-controlling interests- more --7-(3) Consolidated Statements of Cash Flow(Thousands of yen)
Period ended
September 30, 2021

Period ended
September 30, 2022

Income before income taxes

234,053

66,629Depreciation

476,717462,174

Amortization of goodwill
Increase (decrease) in provision for bonuses

36,128
10,78036,128(2,215)

Increase (decrease) in provision for loss on order received

15,59447,833

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(1,671)

7,384

29,40435,305(8,134)(613)(35,854)(8,865)

6,678

3,378

294

(3,207)(9,284)(6,108)－66,975－

Cash flows from operating activities

Foreign exchange losses (gains)
Loss(gain) on investments in investment partnerships
Office transfer expenses
Loss on disposal of noncurrent assets
Loss (gain) on sales of investments in subsidiaries
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets

123
271(219,231)
2,217,846(849,257)
256,799

828,435(509,110)(110,335)

Increase (decrease) in notes and accounts payable-trade(63,400)(238,237)

Increase (decrease) in accrued consumption taxes(360,675)(309,998)

Increase (decrease) in other current liabilities(173,784)

96,672Other, net

14,693(22,591)

Subtotal

1,578,091

439,635

22,15552,068Interest paid

(8,175)(4,341)

Office transfer expenses paid

(69,807)－Income taxes paid

(427,017)(255,583)

Net cash provided by (used in) operating activities

1,095,246

231,778

Interest and dividends received- more --8-(Thousands of yen)
Period ended
September 30, 2021

Period ended
September 30, 2022

Purchase of property, plant and equipment(474,951)(145,421)

Purchases of software(141,133)(348,565)－(612,121)

Cash flows from investing activities

Purchase of investment securities
Proceeds from sales of investments in securities
Proceeds from sale of shares of subsidiaries resulting inchange in scope of consolidation
Proceeds from share of profits on investments in capital

5,959

－

242,974－

13,68016,080

Collection of loans receivable

20,000－

(904)

(30)

Proceeds from refund of leasehold and guarantee deposits

100,09472

Net cash provided by (used in) investing activities(234,281)(1,089,986)

Payments of leasehold and guarantee deposits

Cash flows from financing activities(21,171)(12,820)(1,032,000)(666,000)

Payments for commission fees－(28,000)

Proceeds from sales of treasury shares

－

(96)

(337,577)(397,543)

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(1,390,749)(1,104,459)(4,193)

3,332(533,977)(1,959,334)

Cash and cash equivalents at beginning of period

6,367,346

9,785,552

Cash and cash equivalents at end of period

5,833,368

7,826,217

Repayments of lease obligations
Repayments of long-term borrowings

Cash dividends paid

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