NOTE：This document was prepared by machine translation, and no manual modification has been made to the translated
contents. This document is to be used only as a reference, and in cases any differences occur between English version and theoriginal Japanese version, the Japanese version shall prevail.
The consolidated financial statements in this document are unaudited.

Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending
April 30, 2024 (Japanese GAAP)
Listed company
nameCode No.
Representative

December 8, 2023
Listing: Tokyo Stock
Exchange

FreeBit Co., Ltd.
3843
(Title)URL https://freebit.com/
President, CEO and CTO
Name: Atsuki Ishida
Director and General Manager ofContact(Title)Group Corporate Planning
Name: Ikuko Wada
Division
Date of Quarterly Report
Start Date ofDecember 11, 2023
ReleaseDividend Payout:
Supplementary documents available
for quarterly financial results: Yes
Quarterly financial results(Video streaming only)
briefing: Yes

TEL 03-5459-0522(all amounts rounded down to the nearest million yen)
Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending April 30, 2023 (from May 1,
2023 to October 31, 2023)(1) Consolidated Operating Results (Cumulative)(percentages shown represent year-on-year % change)
Net income
Net sales
Operating income
Ordinary income
attributable toowners of the parent
Millions ofMillions ofMillions ofMillions of
Six months ended
%
%
%
%
yen
yen
yen
yen
October 31, 2023
27,073
3,071
3,014
1,980
October 31, 2022
22,581
5.7
1,962
-4.5
1,805
-9.7
843 -24.7(Note)
Comprehensive
incomeMillions
2,485(-%)
of yenFY2024/04 2Q

FY2023/04 2Q

Net income per share

Net income per share(Diluted)

Yen
99.22
44.87

Yen
98.21
44.55

Six months ended
October 31, 2023
October 31, 2022

Millions
1,234(-15.6%)of yen(Note) Consolidated subsidiary GIGAPRIZE Co., Ltd. and its subsidiaries have changed the date of theirfiscal year-end from March 31 to April 30. As the second quarter of the current fiscal year is atransitional period for changing the date of their fiscal year-end, percentages representing year-onyear change has been omitted.
(2) Consolidated Financial Position
Total assets
As of
October 31, 2023
April 30,2023

Millions of yen
35,89535,926

Shareholders’Equity
Ratio
Millions of yen%
13,10927.8
11,032
22.9
Net Assets- 1 -(Reference)
Shareholders'equity:October 31, 2023

Millions
9,961
of yenApril 30,2023

Millions
8,242
of yen2. Dividends
Dividend per shar

FY2023/04
FY2024/04
FY2024/04 (forecast)End of 1Q
Yen-

End of 2Q
Yen
0.00
0.00

End of 3Q
Yen-

End of Term
Yen
8.00

-

27.00

Total
Yen
8.00
27.00

(Note) Revisions during this quarter of dividends forecast for fiscal year: Yes.
For revisions to the dividend forecast, please refer to the “Notice of Upward Revisions to the Fullyear Financial Results for the Fiscal Year Ending April 2024 and Revisions (Dividend Increase)”announced today (December 8, 2023).

- 2 -3.Forecast of Consolidated Financial Results for the Year Ending April 30,2024 (May 1, 2023 to April 30,
2024)(percentages shown represent year-on-year % change)
Profit
Net income per
Net sales
Operating income Ordinary income attributable toshareowners of parent
Millions
Millions
Millions
Millions
%
%
%
%
Yen
of yenof yenof yenof yenFY2024/04
53,000
13.3
5,500
37.2
5,200
40.3
3,000
67.4
150.27(Note) Revisions during this quarter of previously disclosed consolidated business results projection for
FY2024: Yes
For revisions to the consolidated financial results forecast, please refer to the “Notice of Upward
Revisions to the Full-year Financial Results Forecast for the Fiscal Year Ending April 2024 andRevisions (Dividend Increase)” announced today (December 8, 2023).
※ Notes(1) Transfers in significant subsidiaries during the quarter (changes in specified subsidiaries resulting
in transfers in the scope of consolidation): None
(2) Special accounting treatments used in preparation of the quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, restatements① Changes resulting from revisions to accounting standards, etc.: None
② Changes other than those specified above: None
③ Changes in accounting estimates: None
④ Restatement of revisions: None
(4) Number of outstanding shares (common shares)① Outstanding shares at period
end(including treasury stock)

2Q FY2024/04

23,414,000Shares FY2023/04

23,414,000Shares② Treasury shares at period end

2Q FY2024/04

3,441,941Shares FY2023/04

3,453,741Shares③ Average shares outstanding during
the period (quarterly cumulative)

2Q FY2024/04

19,964,620Shares 2Q FY2023/04

18,803,743Shares※ Quarterly financial results are outside the scope of quarterly reviews by a certified public accountant
or an auditing firm.
※ Explanations and other special notes concerning the appropriate use of business performance forecasts(Notes on forward-looking statements)
The earnings forecasts and other forward-looking statements herein are based on information currently
available to the Company and on certain assumptions deemed to be reasonable, and do not constituteguarantees by the Company of future performance. Actual results may differ materially from the forecast
depending on a range of factors. Please refer to "(3) Consolidated Results Forecasts and Other Forwardlooking Information" of P.11" Qualitative Information on Quarterly Financial Results” for theassumptions upon which the forecasts are based and for notes regarding the use of the forecasts.
(Method of obtaining or viewing supplementary material on quarterly financial results and a summary
explanation of quarterly financial results)･ Supplementary materials for quarterly financial results will be disclosed on TDnet on the same day andwill also be posted on our website.
･ A summary explanation of the quarterly financial results will be posted on our website promptly withthe recorded videos.

- 3 -○Appendix – Table of Contents
1. Qualitative Information on Quarterly Financial Results ………………………………………………………

5(1) Operating Results …………………………………………………………………………………………………

5(2) Financial Position ………………………………………………………………………………………………

11(3) Consolidated Results Forecasts and Other Forward-looking Information ……………………………

11

2. Quarterly Consolidated Financial Statements and Major Notes ………………………………………………

12(1) Quarterly Consolidated Balance Sheets ………………………………………………………………………… 12(2) Quarterly Consolidated Statement of Income and Comprehensive Income ………………………………… 14
Quarterly Consolidated Statements of Income
Second quarter consolidated cumulative accounting period …………………………………………

14

Quarterly Consolidated Statements of Comprehensive Income
Second quarter consolidated cumulative accounting period …………………………………………

15(3) Quarterly Consolidated Statements of Cash Flows …………………………………………………………… 16(4) Notes to Quarterly Consolidated Financial Statements ……………………………………………………

18(Notes regarding the going concern assumptions) …………………………………………………………… 18(Notes regarding changes impacting shareholders’equity) ………………………………………………

18(Changes in the scope of consolidation or the scope of application of the equity method) ……

18(Segment Information) ………………………………………………………………………………………………

18

- 4 -

1. Qualitative Information on Quarterly Financial Results(1) Operating Results
Forward-looking statements in the text are based on judgments as of the end of the current quarter.
The consolidated subsidiary GIGAPRIZE Co., Ltd. ("GIGAPRIZE") and its subsidiaries has changed thedate of their fiscal year-end from March 31 to April 30, which is the same as our consolidated fiscal
year-end. As a result, the consolidated subsidiary in the current fiscal year has an irregularsettlement of accounts for the 13-month period from April 1, 2023 to April 30, 2024. In the second
quarter of the fiscal year under review, the seven-month period from April 1, 2023 to October 31, 2023
has been incorporated into the consolidated settlement.
For more information on the change in the fiscal year-end, see “2.Quarterly Consolidated Financial
Statements and Major Notes (4) Notes to Quarterly Consolidated Financial Statements (Changes in thescope of consolidation or the scope of application of the equity method)” of p.18.
The official names and explanations of the names used in “Explanation of Operating Results” are as
follows.
Name in use

Official name

Explanation

5G

5th Generation

Abbreviation for 5th Generation Mobile Communications System,
which is one of the next generation communications standards

web3

Web3(Web 3.0)

Concept of the next-generation distributed Internet, whichenables users to exchange data and content directly with eachother without going through a huge platform

MVNO

Mobile Virtual Network Operator

Virtual mobile operator

Cloud

Cloud Computing

IoTInternet of Things

MVNE

Mobile Virtual Network Enabler

MVNO support provider

Metaverse

Metaverse

Virtual space that is used over the Internet

AI

Artificial Intelligence

Techniques that use computers to study or conduct human
intellectual behavior

TONE CareTONE Care

One of TONE Laboratory's demonstration test projects
An online service promptly provides customers various healthconsultations remotely, such as consultations on health concerns
and counseling on the overuse of children's smartphones

DX

Digital Transformation

Reforming products, services, business models, etc. by utilizing
data and digital technologies

NFT

Non-Fungible Token

Technology that can clarify whether digital content is real, whois the producer, and who is the owner

A generic term for a data center or server group, providing
software, etc. to users over a network and data is stored andoperated
A system that allows goods to communicate with each other by
equipping them with a communication function, thereby enabling
automatic recognition and automatic control without humanintervention.

Our group is promoting corporate management with a view to the 10-year plan from 2021 to 2030. In
line with this, we have promoted management to achieve net sales of 50 billion yen and operating
income of 5 billion yen in the three-year medium-term management plan “SiLK VISION 2024” that ends
in the fiscal year ending April 2024.
As a result, business progress in each reportable segment was favorable, and the consolidated
earnings forecast for the fiscal year ending April 2024 was also expected to be higher than expected
due to the results for the second quarter of the fiscal year under review exceeding the initial
forecast.
Going forward, we will continue to focus our management resources on the mobile revolution,
lifestyle revolution, and production revolution domains, which we consider to be growth domains
worldwide, while contributing to the realization of a sustainable society. In this way, we will aim
to expand our business through technologies that grow exponentially as “5G/web3 era Platform- 5 -Maker”.
The business operations of each reportable segment are as follows.
<5G Infrastructure Support Business>
In addition to support services for entry into the MVNO business and business support services for
ISP, we are promoting support services for various business corporations to introduce cloud and IoT,
etc. We will also build next-generation networks and data centers to respond to 5G era. As well as
strengthen our service provision by leveraging our cloud infrastructure and deploy services thatutilize 5G, and eSIM (embedded SIM), and expand services that combine these and other businessresources.

- 6 -<5G Lifestyle Support Business>
In addition to providing mobile communications services using smartphones and other devices
targeting individuals and Internet-related services via fixed-line lines, we are promoting theprovision of 5G Homestyle (Internet Services for Collective Housing). In 5G Homestyle, we are also
focusing on establishing new services other than Internet services targeting housing complex.
We will develop and provide services with an eye to future changes in lifestyles in 5G/web3 era
using “TONE” devices, which are our proprietary smartphones using Maker's Maker platforms. In
addition to being limited to existing businesses, we will also develop and expand new services infields such as 5G Workstyle and 5G Healthstyle,5G Lifestyle,5G Carlifestyle, while “TONE” isresponsible for the positioning of our group's technologies as Showroom.
<Corporate and Creator 5G DX Support Business>
As we expand services with an awareness of 5G marketing and expanding influencer marketing, we arepromoting Internet marketing and ad technology-related businesses with a view to web3. In addition,
we are developing Bizmodel Maker, which is a system that enables Creator Maker, a platform thatenables creators and influencers, including YouTuber, to spread their own works, and companies thatstart new businesses to provide services via their own platforms.
In the second quarter of the fiscal year under review, while there are concerns about a temporary
slowdown in the growth pace due to the impact of the slowdown in overseas economies and high prices,solid growth is expected in the domestic IT market environment. However, while 5G and web3 are
expected to penetrate, their spread is still in the development stage. In addition, in our group, we
consider it highly likely that all business areas will be affected by the emergence of disruptive
technologies and changes in the market environment.
In this environment, we have positioned the current fiscal year as “Transformation Term” again.
We will respond to rapid technological and other changes and reexamine our business, organizational,
and human resources strategies. We will also implement strategic investing that effectively utilizes
the Group's management resources. In this way, we will strive to establish our position as Platform
Maker of the “5G/web3 age” at the earliest possible time.
The operating results of each reportable segment are as follows.
① 5G Infrastructure Support BusinessIn the fixed-line network, the use of many services via the Internet continues to increase due
to an increase in online video viewing at home and the use of rich contents and SNS, including
games, along with changes in working styles and lifestyles, and the generalization of onlineformat conferences and classes, such as the spread of telework and home-based learning. As aresult, network costs remain on a high trend.
In the mobile network business, the provision of inexpensive plans by major mobile
telecommunications carriers and the deployment of these plans under subbrands continue to affect
the growth of proprietary MVNO service providers, but the growth of the mobile market as a wholecontinues and is expected to expand in the future, including the expected increase in the use of
these plans for IoT and inbound tourists.
Against this backdrop, in the 5G Infrastructure Support Business segment, MVNE’s support
business for MVNO expanded, net sales were 4,924,334 thousand yen (up 4.1% year on year) andsegment income was 906,637 thousand yen (up 23.6% year on year).
② 5G Lifestyle Support BusinessAs explained in “5G Infrastructure Support Business”, network costs are rising in the fixedline network services market, but the market for 5G Homestyle (Internet Services for Collective
Housing), one of the Group's main services, is steadily expanding as the high-speed broadband
environment aimed at improving the asset value of buildings and occupancy rates is being
standardized, and the use of telework, online classes, video content viewing, and other services
has been recognized as standard. As a result, the market size of these services is expected tosteadily expand in the future. In light of this business environment, we have begun providing- 7 -faster Internet connection services and Internet connection services to multi-purpose facilities,
as well as services for detached rental housing. In addition, as part of our efforts to realize“Smart Town” (a town where the convenience of urban infrastructures is enhanced through the useof digital technologies), we will propose new lifestyles and lifestyles in 5G/web3 era utilizing
various advanced technologies in community town “LIVING TOWN Minato Mirai”.

- 8 -In 5G Lifestyle (mobile communications services for individuals and Internet-related services),
we provide smartphone devices with an eye to the arrival of 5G/web3/ metaverse era in smartphoneservices “Tone Mobile” that utilize the proprietary technologies offered by our group. We arealso working to resolve a variety of social issues, such as the development of a watch-and-watch
service “TONE Family” for families equipped with “TONE Anshin AI” that monitors families in AI
as a unique service using smartphones. As well as providing specialist counseling on “overusesmartphones” in “TONE Care”, a next-generation on-line health consulting service with a view tosolving the social issue of Internet dependency, which is a danger worldwide. In order to increase
the number of subscribers to “Tone Mobile”, we implemented marketing measures centered on
performance-based advertising in view of cost-effectiveness.
Against this backdrop, in the 5G Lifestyle Support Business segment, the number of units offered
as services in 5G Homestyle (Internet Services for Collective Housing) remained steady. As aresult, net sales were 13,654,665 thousand yen (up 22.4% year on year) and segment income was
1,746,247 thousand yen (up 78.2% year on year).
As GIGAPRIZE and its subsidiaries responsible for 5G Homestyle changed the fiscal year-end in
the current fiscal year, in the second quarter of the fiscal year under review, the seven-month
period from April 1, 2023 to October 31, 2023 has been incorporated into the consolidated fiscal
year-end. Furthermore, even in a comparison of the second quarter of the fiscal year under review
over the same six-month period as the previous second quarter, both net sales and segment income
increased due to the smooth performance of the business itself.
③ Corporate and Creator 5G DX Support BusinessIn the Internet marketing and ad technology services offered by Full Speed Co., Ltd. (FullSpeed), economic activity began to normalize due to the relaxation of behavioral restrictions
along with the transition to a new type of coronavirus infectious disease, and demand foradvertising also increased. In this environment, we worked to promote DX in our Internet
marketing-related business by leveraging our accumulated Internet marketing expertise. We are also
moving forward with initiatives for new businesses for medium-term growth. We have strengthened
our efforts to expand creator economies (economic zones in which creators monetize through theirown skills) via platform “StandAlone”, allowing creators to disseminate information themselves
without going through major platforms, and maximize the value of this information. We have also
strengthened our provision of NFT issuance support services for creators and improve operational
efficiency and control costs by implementing PMI after making Full Speed a wholly owned
subsidiary.
Against this backdrop, in the Corporate and Creator 5G DX Support Business segment, as a resultof favorable customer acquisition for affiliate services, net sales were 9,799,019 thousand yen(up 21.3% year on year) and segment income was 428,812 thousand yen (up 67.8% year on year).
As a result of the above, net sales were 27,073,021 thousand yen (up 19.9% year on year),
operating income was 3,071,664 thousand yen (up 56.5% year on year), ordinary income was 3,014,188
thousand yen (up 67.0% year on year), and profit attributable to owners of parent was 1,980,899
thousand yen (up 134.8% year on year).
(Reference 1)
Net sales comparison with the six-month period excluding the impact of the previous second quarter
cumulative period and the change in the fiscal year-end(Thousands of yen)
FY2023/04
Second quarter(Reference)
FY2024/04
Second quarter

5G Infrastructure Support Business

4,732,570

4,924,334

191,764

4.1

5G Lifestyle Support Business

11,156,960

11,923,235

766,275

6.9

8,075,885

9,799,019

1,723,133

21.3

Segment

Corporate and Creator
Support Business

5G

DX

- 9 -

ChangeChange (%)

Adjusted amountTotal-1,383,499-1,304,998

78,500-22,581,915

25,341,590

2,759,675

12.2(Note) For the second quarter of the fiscal year ending April 2024, these figures are unaudited reference
values calculated for purposes of comparing net sales.

- 10 -

(Reference 2)
Operating income (excluding strategic investments (temporary investments)) comparison over the sixmonth period excluding the impact of the previous second quarter cumulative period and the change inthe fiscal year end(Thousands of yen)
(Reference)
FY2023/04
Second quarter(Reference)
FY2024/04
Second quarter

866,204

1,038,566

172,36219.9

1,253,324

1,619,519

366,19429.2

326,211453,096

126,884

38.9

Other

-7,791-10,553-2,761-

Adjusted amount

1,102

519

-582

-52.8

2,439,051

3,101,148

662,09627.1

Segment
5G Infrastructure Support Business
5G Lifestyle Support BusinessCorporate and Creator
Support Business

5G

DX

Total

ChangeChange (%)(Note) Both the second quarter of the fiscal year ending April 2023 and the second quarter of the fiscal
year ending April 2024 are unaudited reference values calculated for purposes of comparing operating
income.
Net Sales and Segment Income (Loss) by Segment (Thousands of yen)Classification

Segment profit
Or (loss)

Net sales

5G Infrastructure Support Business

4,924,334

906,637

5G Lifestyle Support Business

13,654,665

1,746,247

Corporate and Creator 5G DX Support Business

9,799,019

428,812--10,553-1,304,998

519

27,073,021

3,071,664

Other
Adjusted amountTotal(2) Financial Position

Total assets at the end of the second quarter of the fiscal year under review were 35,895,720
thousand yen, a decrease of 30,766 thousand yen from the end of the previous fiscal year. This was
mainly due to a decrease in cash and deposits of 1,025,088 thousand yen, despite an increase in raw
materials and supplies of 407,815 thousand yen and property, plant and equipment of 679,576 thousand
yen.
Total liabilities were 22,786,071 thousand yen, a decrease of 2,108,063 thousand yen from the end of
the previous fiscal year. This was mainly due to decreases in accounts payable-other and long-termloans payable of 484,608 thousand yen and 1,330,787 thousand yen and lease obligations (non-current)of 175,257 thousand yen.
Total net assets increased 2,077,296 thousand yen from the end of the previous fiscal year to
13,109,649 thousand yen due to an increase in retained earnings and other factors. As a result, theequity ratio was 27.8%.
(3) Consolidated Results Forecasts and Other Forward-looking Information
In light of recent performance trends, we have revised the full-year consolidated earnings forecast
for the fiscal year ending April 2024, which was announced on June 9, 2023. For more information,please refer to the “Notice of Upward Revisions to the Full-year Financial Results for the Fiscal
Year Ending April 2024 and Revisions (Dividend Increases)” announced today (December 8, 2023).

- 11 -

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets
Previous Consolidated
Fiscal YearAs of April 30, 2023
AssetsCurrent Assets
Cash and deposits
Negotiable instruments receivable,accounts receivable, and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed Assets
Property, plant, and equipment
Intangible fixed assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Increase in loss on valuation of
investment securities
Long-term loans receivable
Guarantee deposits
Other
Allowance for doubtful accounts
Investments and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Negotiable instruments payable andaccounts payable
Short-term Debt
Current portion of long-term debt
Accounts payable-other
Income tax payable
Allowance
Other
Total current liabilities
Long-term liabilities
Long-term Debt
Lease obligations
Reserve for retirement benefits for
directors
Obligations for retirement pay
OtherTotal long-term liabilities
Total liabilities- 12 -(Thousands of yen)
Second quarter of thecurrent fiscal year
As of October 31, 2023

18,305,769

17,280,681

8,395,261

8,673,385

338,698
251,623
1,248,072
2,167,888-66,882
30,640,431

215,000
187,986
1,655,887
1,987,065-63,301
29,936,706

2,475,825

3,155,401

37,149171,899
180,221389,271

27,777
180,239
257,713465,730

949,050

886,096

1,496,914
480,969
1,229,373-1,735,348
2,420,958
5,286,055
35,926,487

1,496,914
480,948
1,208,955-1,735,032
2,337,881
5,959,013
35,895,720

256,361

216,036

300,000
4,492,962
5,936,200
708,358
198,548
2,471,517
14,363,947

300,000
4,459,636
5,451,591
810,855
245,125
2,211,943
13,695,188

9,084,282
1,073,433

7,753,495
898,176

60,52760,52757,300254,643
10,530,186
24,894,134

62,593
316,090
9,090,882
22,786,071

Previous Consolidated
Fiscal YearAs of April 30, 2023
Net assets
Shareholders' equity
Common stock
Capital Surplus
Retained earnings
Treasury stock
Total owners' equity
Accumulated other comprehensive income
Unrealized gain on available-for-salesecurities
Foreign Currency Translation Adjustments
Total other accumulated comprehensive
incomeStock purchase warrants
Stock acquisition rightNon-controlling shareholders' equity
Total net assets
Total liabilities and net assets- 13 -(Thousands of yen)
Second quarter of thecurrent fiscal year
As of October 31, 2023

4,514,185
1,645,027
5,286,747-3,251,237
8,194,722

4,514,185
1,556,130
7,107,964-3,240,129
9,938,150

54,22738,523-6,500-14,794

47,72623,72875,185780
2,713,938
11,032,352
35,926,487

105,174780
3,041,814
13,109,649
35,895,720

(2) Quarterly Consolidated Statement of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Second quarter consolidated cumulative accounting period)(Thousands of yen)

Net sales
Cost of goods sold
Gross profit
Selling and general administrative expenses
Operating income
Non-operating income
Interest and dividend income
Equity in earnings of affiliates
Profit on currency exchange
Gain on valuation of investment securities
Penalty income
Other
Total non-operating income
Non-operating expenses
Interest expense
Equity in losses of affiliates
Commissions paid
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of shares of subsidiaries andassociates
Reversal of provision for loss on
indemnification of damages
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Write-down of investment securities
Total extraordinary loss
Quarterly income before income taxes andminority interests
Income taxes
The Deferred Corporation Tax, etc.
Total income taxes
Quarterly net income
Quarterly net income attributable to noncontrolling interests
Quarterly income attributable to owners of theparentPrevious second quarter
consolidated cumulative
period(May 1, 2022-October 31,
2022)
22,581,915
16,019,336
6,562,578
4,600,241
1,962,337- 14 -

Second quarter of thecurrent fiscal year
(May 1, 2023-October 31,
2023)
27,073,021
19,280,739
7,792,281
4,720,616
3,071,664

291
13,731
10,127
9,317
9,686
43,154813
2,090
16,665
14,3958,569
42,53560,785
1,809
96,86540,871
200,331
1,805,160

54,123
16,34729,539100,0113,014,188-

172,799-

86,462

21,315-21,315259,262781
53,47554,257

2,023
2,023

1,772,218

3,271,427

541,399-1,991
539,407
1,232,811

727,833
34,566762,3992,509,027

389,079

528,128

843,7311,980,899

Quarterly Consolidated Statements of Comprehensive Income(Second quarter consolidated cumulative accounting period)(Thousands of yen)

Quarterly net income
Other comprehensive income
Unrealized gain on available-for-salesecurities
Foreign Currency Translation Adjustments
Total other comprehensive income
Quarterly comprehensive income(Comprehensive income attributable to)
Quarterly comprehensive income attributableto owners of the parent
Quarterly comprehensive income attributable
to noncontrolling interests

Previous second quarter
consolidated cumulative
period(May 1, 2022-October 31,
2022)
1,232,811- 15 -

Second quarter of thecurrent fiscal year
(May 1, 2023-October 31,
2023)
2,509,027-1,832-15,704

3,370
1,538
1,234,349-8,293-23,997
2,485,029

844,845

1,956,901

389,503528,128

(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)Previous second quarter
consolidated cumulative
period(May 1, 2022-October 31,
2022)
Net cash provided by operating activities
Quarterly income before income taxes andminority interests
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for
doubtful accounts (-)
Interest and dividend income
Interest paid and interest on corporate
bonds
Foreign exchange gains (losses) (gains on -)Equity in earnings (-) of affiliates
Gain (loss) on sales of marketablesecurities. (Gain on -)Gain (loss) on sales of shares ofsubsidiaries and associates (gain on -)Increase (decrease) in notes and accounts
receivable (- increased)
Increase (decrease) in inventories (increased)
Increase (decrease) in other current assets(- increased)
Increase (decrease) in accounts payableother (a decrease in -)Increase (decrease) in other current
liabilities (-)
OtherSubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by operating activities
Cash Flows from investment activities
Purchases of property, plant and equipment
Purchases of intangible assets
Proceeds from sale of investment securities
Proceeds from sale of shares of subsidiaries
and associates
Payments for asset retirement obligations
Other
Cash Flows from investment activities
Cash Flows from financing activities
Net increase (decrease) in short-termborrowings (-)
Proceeds from long-term debt
Repayment of long-term debt
Redemption of bonds
Payments from changes in ownership interestsin subsidiaries that do not result in change
in scope of consolidation
Dividends paid
Net repayment of lease obligations
Other- 16 -

Second quarter of thecurrent fiscal year
(May 1, 2023-October 31,
2023)

1,772,218

3,271,427

454,631
20,079367,791
9,371-9,225-3,898-291-813

60,78554,123-7,6771,809-217-2,090--171,027--86,462

168,075-284,401-314,872-220,480

742,924

111,366-883,800-392,271-561,943-137,946

95,7801,538,491
292-63,855-647,132
105,071
932,867

115,260
2,629,730
602-54,376-745,370
91,8291,922,415-194,544-50,187
1,500-841,301-138,595
182,027-

112,500-34,979
10,996-267,214

732-684,635

3,617,570-

400,000-1,942,489-100,000

800,000-2,164,113--2,659,377-217,201-140,730-447,969-61,792-158,828-446,637-67,794Cash Flows from financing activities
Translation adjustments on cash and Cash
Equivalents
Increase (decrease) in cash and cash
equivalents (-)
The beginning balances of cash and Cash
Equivalents
The quarter-end balances of cash and Cash
Equivalents.

-1,334,789-2,254,575

10,926-8,292-658,209-1,025,088

17,741,256

18,305,769

17,083,046

17,280,681(4) Notes to Quarterly Consolidated Financial Statements(Notes regarding the going concern assumption)
Not applicable.
(Notes regarding changes impacting shareholders’ equity)
Not applicable.
(Changes in the scope of consolidation or application of the equity method)
Changes in matters concerning the fiscal year, etc. of consolidated subsidiaries
In the current fiscal year, consolidated subsidiaries GIGAPRIZE Co., Ltd., GIGATEC Co., Ltd., Soft
Volatile Co., Ltd. and LTM Co., Ltd. have changed the date of their fiscal year-end from March 31 toApril 30, and are the same as the date of their consolidated fiscal year-end.
As a result of the change in the fiscal year-end, the fiscal year of this consolidated subsidiaryin the second quarter under review is seven months. The impact of the change in the fiscal year-end
is adjusted through the consolidated statement of income.
The consolidated subsidiaries had net sales of 1,731,430 thousand yen, operating income of 398,106
thousand yen, and ordinary income and income before income taxes and minority interests of 395,372
thousand yen for the period from April 1, 2023 to April 30, 2023.
(Segment Information)
Ⅰ Previous second quarter (May 1, 2022-October 31, 2022)
Information on net sales and income (loss) by reportable segment(Thousands ofyen)
Reportable Segments
Other(Note) 1

5G
Infrastructure
SupportBusiness

5G LifestyleSupportBusiness

Corporate andCreator 5G DX
SupportBusiness

Sales to customers

3,554,487

11,088,355

7,939,072-

22,581,915

Intersegment sales

1,178,082

68,604

136,812-

1,383,499

4,732,570

11,156,960

8,075,885-

23,965,415

733,471

979,947

255,608-7,791

1,961,235

Total

Net sales

Total
Segment income (or loss)(Thousands of yen)Amount recordedin quarterly
Adjusted amountconsolidated(Note) 2
statement ofincome (NOTE)3
Net sales
Sales to customers-

22,581,915- 17 -

Intersegment sales
Total
Segment income (or loss)-1,383,499--1,383,499

22,581,915

1,102

1,962,337(Note) 1. “Others” is a business segment that is not included in the reportable segments, and includes
the startup investment development business.
2. Adjustments to segment income (or loss) 1,102 thousand yen include reclassifications of allowancefor doubtful accounts.
3. Segment income (or loss) is reconciled to operating income in the quarterly consolidated
statements of income.

- 18 -

Ⅱ Second quarter of the current fiscal year (May 1, 2023-October 31, 2023)
Information on net sales and income (loss) by reportable segment(Thousands ofyen)
Reportable Segments
Other(Note) 1

5G
Infrastructure
SupportBusiness

5G LifestyleSupportBusiness

Corporate andCreator 5G DX
SupportBusiness

Sales to customers

3,814,488

13,598,546

9,659,985-

27,073,021

Intersegment sales

1,109,846

56,118139,033-

1,304,998

4,924,334

13,654,665

9,799,019-

28,378,019

906,637

1,746,247

428,812-10,553

3,071,144

Total

Net sales

Total
Segment income (or loss)(Thousands of yen)Amount recordedin quarterly
Adjusted amountconsolidated(Note) 2
statement ofincome (NOTE)3
Net sales
Sales to customers-

27,073,021

Intersegment sales-1,304,998--1,304,998

27,073,021

519

3,071,664

Total
Segment income (or loss)(Note) 1. “Others” is a business segment that is not included in the reportable segments, and includes
the startup investment development business.
2. Adjustments to segment income (-) 519 thousand yen include reclassifications of allowance for
doubtful accounts.
3. Segment income (-) is reconciled to operating income in the quarterly consolidated statements ofincome.

- 19 -