Newly Listed Company Introduction Report (Issued by The Stock Research Center)

L is B (145A TSE Growth)

April 11, 2024

Providing business chat services for field workers to companies in industries such as
construction, retail distribution and transportation
This report is an English translation of part of the report issued on March 29, 2024.
For inquiries concerning the report, please contract info@stock-r.org【145A L is B Sector：Information & Communication】
Fiscal YearNet sales

YoY

OperatingprofitYoY

Ordinary
profitYoYProfitYoY

EPSBPSDPS(mn yen)(%)(mn yen)(%)(mn yen)(%)(mn yen)

(%)

(yen)

(yen)

(yen)

Dec.2022970

26.0-263-

-265-

-316-

-76.2

142.0

0.0

Dec.2023

1,279

31.9

38-

32-

46-

11.1

153.1

0.0

1,664

30.1

152

4.0x

132

4.1x

106

2.3x

22.3

-

0.0

Dec.2024

fNote: Non-consolidated basis.Figures for the fiscal year ending December 2024 is the company's forecasts.
It conducted 1:100 stock split on December 8, 2023.Per share indicies are adjusted retroactively.

Offering DX to Solve Issues Faced by Companies Engaged in Field
OperationsL is B provides digital services in the form of SaaS to solve issues in industries such as
construction, retail distribution and transportation through digital transformation (DX). Theservices are mainly aimed at people who work on their feet without a desk and do notnormally use a PC.
L is B’s main service is “direct,” a business chat for field workers. It also provides services
that operate with “direct.” The company receives payment for these services in the form ofmonthly usage fees (stock sales). It also provides consulting and develops original
solutions to meet the demands of "direct" users seeking to improve operational efficiency.

Business Chat “direct” for Field Workers
To facilitate smooth business communications and reporting, chat services need to beeasy to use for everyone. In particular, since the IT literacy level of field workers varies,“direct” has been developed with the aim of creating a user interface that can be operated
intuitively by anyone who can operate a smartphone.
Its customers are mainly major construction companies and local governments.
Customers from the construction industry account for approximately 60%, with 16 of thetop 20 companies in the industry by net sales adopting the system. The service is also
used by slightly under 1,400 local governments, including individual departments.
Since releasing “direct” in October 2014, L is B has successively released various solutions
and applications that work together with the service.
In July 2022, the company launched its DX consulting services and is also engaged indesigning and developing original solutions for individual companies related to its
consulting and "direct" services.

Newly Listed Company Introduction Report

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The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

Newly Listed Company Introduction Report (Issued by The Stock Research Center)

L is B (145A TSE Growth)

April 11, 2024

Financial Statements

Statement of income

Fiscal Year

Dec. 2021(mn yen)Dec.2022(%)(mn yen)Dec.2023(%)(mn yen)(%)

Net sales

770

100.0

970

100.0

1,279

100.0

Cost of sales

31340.6

401

41.3

459

35.9

Gross profit

457

59.4

568

58.6

819

64.0

Selling, general and administrative expenses

770

100.0

832

85.8

781

61.1

Operating profit

-312-

-263-

38

3.00-

0-

0-

Non-operating income
Non-operating expenses

0-

1-

6-

Ordinary profit

-313-

-265

-

32

2.5

Profit before income taxes

-329-

-310-

32

2.5

Net profit

-335-

-316

-

46

3.6

Balance sheet

Fiscal Year

Dec. 2021(mn yen)Current assets
Cash and deposits
Accounts receivable-trade
Inventories
Non-current assetsProperty, plant and equipment
Intangible assets
Investments and other assets
Total assets
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Non-current liabilities
Long-term borrowings
Net assets
Owners' equity

Statement of cash flows

Fiscal Year

Cash flows from operating activities
DepreciationDec.2022(%)(mn yen)Dec.2023(%)(mn yen)

(%)

1,298

98.7

99

7.7

1,234

93.5

1,080

82.1

1,088

85.1

1,009

76.4

197

15.0

154

12.0

204

15.5

00.00-10.1171.3

24

1.9

85

6.4

0

0.0

0

0.0

4

0.3

-

-

7

0.5

40

3.0

17

1.3

16

1.3

40

3.0

1,315

100.0

1,279

100.0

1,320

100.0

95

7.2

193

15.1

200

15.2

14

1.1

56

4.4

90.7

-

-

30

2.3

30

2.3

11

0.8

17

1.3

110.8

312

23.7

495

38.7

483

36.6

312

23.7

495

38.7

483

36.6

906

68.9

590

46.1

636

48.2

906

68.9

590

46.1

636

48.2

Dec. 2021

Dec.2022

Dec.2023(mn yen)(mn yen)(mn yen)

-470

-157

-12

206

Cash flows from investing activities-20-53-49

Cash flows from financing activities

1,225

218

-17

Dividends paid
Net increase in cash and cash equivalents
Cash and cash equivalents---734

8-78

1,080

1,088

1,009

Note:Non-consolidated
Source: Prepared by Stock Research Center based on the notifiable prospectus.

Newly Listed Company Introduction Report

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The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

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