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.

Consolidated Financial Results for the Fiscal Year Ended April 30, 2024 (Japanese GAAP)
Company name:
Stock code
Representative
Contact:

June 14, 2024
Stock exchange listing: TokyoFreeBit Co., Ltd.
3843
URL https://freebit.com/
Title:
President, CEO and CTO
Director and General Manager ofTitle:
Group Corporate Planning Division

Name: Atsuki Ishida
Name: Ikuko WadaTEL 03-5459-0522

Scheduled date tocommence dividend
payments:

Scheduled date of ordinary
July 25, 2024
general meeting of shareholders

July 11, 2024

Scheduled date of filing ofJuly 26, 2024
annual securities report
Preparation of supplementarymaterial on financial results: Yes
Holding of financial results meeting:(Video Delivery Only)
Yes(Amounts are rounded down to the nearest million yen)
1.Consolidated Financial Results for the Fiscal Year Ended April 30, 1.2024 (May 1, 2023 - April 30, 2024)(1) Consolidated Operating Results(Percentages indicate year-on-year changes.)
Profit attributable to owners
Net sales
Operating income
Ordinary incomeof parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Fiscal year ended
53,037
5,887
5,756
3,566
April 30, 2024
Fiscal year ended
46,771
8.6
4,007
26.6
3,707
28.8
1,792
116.5
April 30, 2023
Fiscal year
(N.B.)
Fiscal year
MillionMillions
ended April
2,604(65.9%)
Comprehensive
ended April
4,709
(-%)
s of yenof yen30, 2023
income30, 2024
Net income per share
Fiscal year endedApril 30, 2024
Fiscal year endedApril 30, 2023

Diluted net income
per share

Ordinary income tototal assets ratio

Return on equity

Operating income to
net sales

Yen

Yen

%

%

%

178.58176.74

35.9

15.5

11.1

95.07

94.31

23.7

10.4

8.6

Fiscal year
Fiscal year
(Reference) Equity in earnings
Millions
Millions
ended April2
ended April△1of affiliatesof yenof yen30, 2024
30, 2023(N.B.) Gigaprize Corporation and its subsidiaries changed their fiscal year-end from March 31 to April 30 in the fiscal year underreview. As a result, the year under review is the transitional period for the change in the fiscal year-end. Accordingly, the yearon-year change is not presented.
(2) Consolidated Financial Position
Total assets
Net assets
Millions of yen
Millions of yen
Fiscal year ended
38,183
15,196
April 30, 2024
Fiscal year ended
35,926
11,032
April 30, 2023
Fiscal year
Fiscal year
Reference: Shareholders'Millions
ended April
11,628
ended April
equityof yen30, 2024
30, 2023- 1 -Equity ratio

8,242

%

Net assets per share
Yen

30.5

582.2622.9

412.94

Millionsof yen(3) Consolidated Cash FlowsNet cash provided by
Cash flows from investing Cash flows from financing Cash and cash equivalents
operating activities
activities
activities
at end of year
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Fiscal year ended
4,225
18,722△1,085△2,720April 30, 2024
Fiscal year ended
3,322
18,305△644△2,110April 30, 2023
2. Dividends
Dividends per share

Fiscal year ended April 30,
2023
Fiscal year ended April 30,
2024
Fiscal Year Ending April
30, 2025 (Forecast)Year-end

Total dividends(Annual)

Total

Ratio of
Dividend
dividends to net
payout ratio
assets(consolidated)(consolidated)

End of 1Q

End of 2Q

Third Quarter

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

-

0.00

-

8.00

8.00

159

8.4

2.1

-

0.00

-

27.00

27.00

539

15.1

5.4

-

-

-

-

-

-

(N.B.) Currently, the dividend forecast for the fiscal year ending April 30, 2025 has not been determined.
3.Forecast of Consolidated Financial Results for the Fiscal Year Ending April 30, 2024 (May 1, 2024 to April 30, 2025)(Percentages indicate year-on-year changes.)
Profit attributable to Net income per
Net sales
Operating income
Ordinary income
owners of parent
shareMillions
Millions
Millions
Millions
%
%
%
%
Yen
of yenof yenof yenof yenFull year
54,000
5,700
5,500
3,000
150.24(N.B.) Since we manage our operations on an annual basis, we have omitted the presentation of consolidated earnings forecasts for thesecond quarter (cumulative). For details, see Attachment page 7 (4) Future Outlook of Business Results and Others.
For the fiscal year ended April 30, 2024, consolidated subsidiary GIGAPRIZE Co., Ltd. and its subsidiaries changed theirfiscal year-end from March 31 to April 30. As a result, the year ended April 31, 2024 is the transitional period for the change inthe fiscal year-end, and therefore, the year-on-year change is not presented.
※ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in the scope of
consolidation): None
(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements① Changes in accounting policies due to revision of accounting standards: None
② Changes in accounting policies other than the above ①: None
③ Changes in accounting estimates: None
④ Restatement of revisions: None
(3) Number of shares outstanding (common stock)① Number of shares outstanding at the end of
the period (including treasury stock)

Fiscal year ended
23,414,000shares
April 30, 2024

Fiscal year ended
23,414,000shares
April 30, 2023

② Number of treasury stock at the end of theperiodFiscal year endedApril 30, 2024

Fiscal year endedApril 30, 2023

③ Average number of shares during the period

Fiscal year ended
19,968,319shares
April 30, 2024

3,441,941shares

3,453,741sharesFiscal year ended
18,849,604shares
April 30, 2023

(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended April 30, 2024 (May 1, 2023 - April 30, 2024)(1) Non-Consolidated Operating Results(Percentages indicate year-on-year changes.)
Net sales
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Fiscal year ended
9,194
818
51.3
823
60.7
794
454.1
△ 1.0
April 30, 2024
Fiscal year ended
9,285
6.0
541
512
143
△4.3
△36.9
△43.6
April 30, 2023

- 2 -Net income per share
Fiscal year endedApril 30, 2024
Fiscal year endedApril 30, 2023

Diluted net income per
share

Yen

Yen

39.80

39.39

7.61

7.55

(2) Non-Consolidated Financial Position
Total assets
Millions of yen
Fiscal year ended
25,066
April 30, 2024
Fiscal year ended
26,068
April 30, 2023
Fiscal year
Reference: Shareholders'
ended April
8,163
equity30, 2024

Net assets
Millions of yen

Millions of yen%

Net assets per share
Yen

8,259

32.6

408.72

7,439

28.3

369.61

Fiscal year
ended April
30, 2023

Equity ratio

7,377

Millions of yen<Reasons for differences in non-consolidated results from the results of the previous fiscal year>
In the fiscal year under review, operating income increased due to an increase in the use of mobile services, despite a decrease insales of fixed network services. As a result, there was a difference in the actual values of ordinary income and net income between
the previous fiscal year and the current fiscal year.
※ The financial results are outside the scope of audits by a certified public accountant or an auditing firm.
※ Explanation of the proper use of financial forecasts and other special notes(Notes on forward-looking statements)
The earnings forecasts and other forward-looking statements herein are based on information currently available to theCompany and on certain assumptions deemed to be reasonable, and do not constitute guarantees by the Company of future
performance. Actual results may differ significantly from these forecasts due to various factors. For assumptions used as the basis
for the earnings forecasts and cautionary statements regarding the use of the earnings forecasts, please refer to page 7 (4) Future
Outlook of Business Results and Others.
(Method of obtaining supplementary material on financial results and details of financial results briefing session)･ Supplementary materials will be disclosed on TDnet on the same day and will also be posted on our website.
･ The content of the financial results briefing will be posted on our website with the recorded videos.

- 3 -○ Table of Contents
1. Overview of Operating Results………………………………………………………………………………………………
(1) Overview of Operating Results for the Fiscal Year under Review………………………………………………………
(2) Overview of Financial Position for the Fiscal Year under Review………………………………………………………
(3) Overview of cash flows for the fiscal year under review…………………………………………………………………
(4) Future Outlook ……………………………………………………………………………………………………………
2. Basic Approach to Selection of Accounting Standards………………………………………………………………………
3. Consolidated Financial Statements and Major Notes…………………………………………………………………………
(1) Consolidated Balance Sheets……………………………………………………………………………………………
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…………………………
Consolidated Statements of Income…………………………………………………………………………………
Consolidated Statements of Comprehensive Income…………………………………………………………………
(3) Consolidated Statements of Changes in Net Assets………………………………………………………………………
(4) Consolidated Statements of Cash Flows …………………………………………………………………………………
(5) Notes to Consolidated Financial Statements………………………………………………………………………………
(Notes on Going Concern Assumptions) ………………………………………………………………………………
(Change in scope of consolidation or equity method application)………………………………………………………
(Changes in Presentation) ………………………………………………………………………………………………
(Segment Information) …………………………………………………………………………………………………
(Per Share Information) …………………………………………………………………………………………………
(Significant Subsequent Events) ………………………………………………………………………………………

- 4 -

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1. Overview of Operating Results(1) Overview of Operating Results for the Fiscal Year under Review
Forward-looking statements in the text are based on judgments as of the end of the current fiscal year.
The consolidated subsidiary GIGAPRIZE Co., Ltd. ("GIGAPRIZE") and its subsidiaries changed their fiscal year-end fromMarch 31 to April 30, the same as our consolidated fiscal year-end. As a result, this consolidated subsidiary's financial results forthe fiscal year under review were irregular, with the 13-month period from April 1, 2023 to April 30, 2024 as the consolidated
accounting period.
For details of the change in the fiscal year-end, [3. Consolidated Financial Statements and Major Notes (5) Notes toConsolidated Financial Statements (Changes in scope of consolidation or application of the equity method)].
The official names and explanations of the names used in the summary of operating results are as follows.
Name of use

Official name

Explanation
Abbreviation for the fifth-generation mobile communications system. One of the next-generation
telecommunications standards
Concept of a next-generation distributed Internet that enables users to exchange data, content, etc.
directly with each other without going through a giant platform
A generic term for systems providing software to users across networks, data centers and servergroups where such data is accumulated and operated.

5G

5th Generation

web3

web3

Cloud

Cloud Computing

MVNO

Mobile Virtual Network Operator

Mobile virtual network operators

IoT

Internet of Things

A system that enables automatic identification and automated control without human intervention
by having a communication function to communicate with each other.

MVNE

Mobile Virtual Network Enabler

MVNO support providers

metaverse

Metaverse

Virtual space used over the Internet

AI

Artificial Intelligence

Techniques that use computers to study or conduct human intellectual behavior

TONE CareTONE CareTONE CoinTONE Coin

LLM

Large Language Models(Large-Scale Language Model)

DX

Digital Transformation

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

1st Party Data

1st Party Data

Data collected in-house by companies without going through third parties

NFT

Non-Fungible Token

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

One of the demonstration projects by TONE Laboratory
Online service that enables quick and remote health consultations, such as consultations on healthconcerns and overuse of children's smartphones
One of the demonstration projects by TONE Laboratory
A point system based on the ceiling compensation of a mobile blockchain in which unique points[TONE Coin] are accumulated simply by automatically launching the program while thesmartphone is charging
Language model constructed with large amounts of data and deep learning technology
Language models are modeled using the probability of the appearance of sentences and words,
and are used in natural language processing such as text creation.

Reportable segments for the fiscal year under review are as follows.
Reportable Segment

Main services

5G Infrastructure Support Program･ Business support services for ISPs
･ Business support (MVNE) services for MVNOs･ Cloud services for corporate customers

5G Lifestyle Support Business･ Mobile communications-related services for individuals･ Internet connection-related services for individuals･ Internet connection-related services for condominiums･ Management service for company housing

Corporate and Creator 5G DX Support
Program･ Internet marketing-related services･ Ad-Tech Services① Management policies and strategies
Our grouping is [Being The NET Frontier! Based on our corporate philosophy of (spreading the Internet and contributing
to society)], we provide Internet-related services primarily to corporations and individuals by leveraging our accumulated
technological capabilities, such as the development of Internet-related core technologies and the operation of large-scale- 5 -systems.
We are promoting corporate management based on a 10-year plan covering the period from 2021 to 2030. We have beendeveloping our business to achieve net sales of ¥50 billion and operating income of ¥5 billion under the three-year mediumterm management plan [SiLK VISION 2024], which is the final year of the consolidated fiscal year under review. As aresult, our business in each reportable segment progressed steadily, with net sales exceeding ¥53 billion and operating
income of ¥5.8 billion.
Going forward, while continuing to contribute to the realization of a sustainable society, we will continue to invest ourmanagement resources focusing on the mobile revolution, lifestyle revolution, and production revolution domains, which we
consider to be growth domains worldwide. In this way, we will aim to expand our business through "exponentially growing
technologies" as [5G/web3 era Platform Maker].
② Business environment
In the business environment surrounding our group, despite signs of a gradual pick-up in socioeconomic activities, such as
the expansion of personal consumption and the increase in overseas travelers, against the backdrop of the relaxation ofaction restrictions associated with a new type of coronavirus infectious disease, the outlook remains uncertain due to thecontinued impact of soaring resources and energy prices caused by various concerns about the global situation, as well as theimpact of interest rate and exchange rate fluctuations.
In this environment, in the information and telecommunications market in which our group operates, in addition to theincreasing needs for Internet services due to the normalization of telework and the expansion of cloud usage, the increasinguse of online videos and games at home and the increased use of SNS, the number of users of Internet services via mobile
line networks is also increasing. We expect the importance of stable operation of highly reliable networks and systems, suchas the improvement of communication quality and speed mainly due to the increase in communication traffic and the
response to cyber security, will increase.
In the Internet services market for apartment homes, in addition to the standardization of Internet facilities for newly built
properties, the introduction of security-related facilities such as auto-locks and security cameras is progressing, and demand
for safe and secure housing via communication lines is expected to be firm. Existing properties are also undergoingrenovations tailored to the diversifying needs and lifestyles of tenants, as well as the introduction of Internet facilities, which
are in high demand, as a means of increasing asset value by emphasizing the comfort of properties.
In the Internet marketing market, expansion continues due to rapid digitization and advances in mobile technologies. In
particular, social media advertising and influencer marketing are driving growth. Competition is intensifying as video
content and e-commerce consolidate, approaches and new service areas emerge that emphasize optimization of the customer
experience, and the number of business entrants is increasing, and the need for differentiation is increasing.
③ Our group's performance
Results by reportable segment are as follows.
(1) 5G Infrastructure Support Program
In 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 content, including games, and SNS, along with changes in working styles and lifestyles,
and the generalization of online-format conferences and learning accompanying the spread of telework and home learning.
As a result, network costs remain high as the volume of line usage increases.
In the mobile network, the provision of inexpensive plans by major mobile telecommunications carriers and thedeployment of these plans under subbrands continue to affect the growth of proprietary MVNO service providers. However,
the growth of the mobile market as a whole is expected to continue and will continue to expand, as the use of these services
for IoT and inbound tourists is expected to increase.
Under these circumstances, in the 5G Infrastructure Support Business Segment, net sales were ¥9,932,193,000 (anincrease of 4.7% year on year) and segment income was ¥1,506,187,000 (an increase of 9.3% year on year) as a result of thesteady expansion of the business scale of the MVNO support business as an MVNE.
(2) 5G Lifestyle Support BusinessAs explained in [5G Infrastructure Support Business], in the fixed-line network services market, network costs are rising,but in the 5G Homestyle (Internet services for condominiums), high-speed broadband environments aimed at improving theasset value of buildings and occupancy rates are becoming standardized, and the use of telework, online learning, video
content viewing, etc. has been recognized as a standard. As a result, the market size of 5G Homestyle (Internet services forcondominiums) is expected to grow steadily in the future. In light of this business environment, we expanded the scope of- 6 -our services to include faster Internet access services and Internet access services for multi-purpose facilities, services for
detached rental housing, and security-related services such as security cameras.
In addition, GIGAPRIZE, which provides this 5G Homestyle (Internet service for collective housing), in collaboration
with Secual Co., Ltd. and Adinte Co., Ltd., developed high-value-added rental housing with solutions services such as highspeed Internet access services and cloud-based security cameras, and worked with Daito Trust Construction Co., Ltd. tobuild residential environments in line with the needs of the times, and supported efforts to solve problems of local
governments by leveraging network technologies, such as the introduction of next-generation street lights with highprecision human flow analysis functions [Secual Smart Pole] in [Meiji Park].
Then, at Community Town [LIVINGTOWN Minatomirai], which proposes new lifestyles and lifestyles in the 5G/web 3
era utilizing advanced technologies, we will construct Local5G SA climate through technological collaboration with ourgroup, Alps Alpine Electronics, Inc. and NEC Networks & System Integration Co., Ltd. to verify experiences that canexperience smart homes and smart towns in the areas of housing, work, and mobility through facilities and IoT equipment
installed in each area and within model houses [LIVE! Start LIVINGTOWN].
In addition, GIGAPRIZE has begun a business alliance with Terra Charge Co., Ltd., which operates the EV Charging
Infrastructure Business [Terra Charge]. Through the provision of EV charging infrastructure to managing companies andowners, we will contribute to supporting the improvement of property value and improving the convenience and satisfactionof tenants who own EV.
In 5G Lifestyle (mobile communications services for individuals and Internet-related services), we provide services withan eye to the arrival of the 5G/web3/metaverse era in smartphone services [Tone Mobile] utilizing the proprietary
technologies provided by our group. We are also working to solve a variety of social problems. As a unique service, we aredeveloping [TONE Family], a monitoring service for families equipped with [TONE Anshin AI], which monitors families
using AI, and providing specialized consultation on "overuse of smartphones" at [TONE Care], a next-generation online
health consultation service with a view to solving the social problem of internet dependence that is worried worldwide.
In addition, we have begun allocating the unique points [TONE Coin] accumulated through the operation of the Mobile
Layer 1 Blockchain [TONE Chain] provided to participants of the user-collaborative demonstration project [TONE Labo] tousage fees for [Tone Mobile].
Furthermore, we launched a [TONE IN] strategy to expand the technologies and services we have cultivated through[Tone Mobile] to other fields, including IoT. As a first step, we have expanded the target devices that [Tone Mobile] can use,
and it is now possible to use [Tone Mobile] simply by installing dedicated SIMs on more than 94 Android/iPhone devices
that are handled by DoCoMo.
In addition, we have developed [freebit Edge LLM], a [Edge-type LLM-generated AI-system] that operates on
smartphones. By linking with [TONE Family] in the future, we plan to develop a service where AI determines the risk ofusing SNS for children (※).
※ AI determines risk
Judgments based on [freebit Edge LLM] are based on AI's own calculations, and are not guarantees of the degree ofrisk, accuracy of such judgments, or results. The AI judgment results may include biases or harshness based on learningdata.
Against this backdrop, the 5G Lifestyle Support Business Segment posted net sales of ¥26,612,422,000 (up 14.4% year onyear) and segment income of ¥3,319,271,000 (up 62.8% year on year), mainly as a result of steady growth in the number ofunits offered for 5G Homestyle (Internet services for collective housing).
(3) Corporate and Creator 5G DX Support Program
In the Internet marketing and ad technology services offered by Full Speed Co., Ltd. ([Full Speed]), economic activity
began to normalize as action restrictions eased along with the transition to five-type infectious diseases of the newcoronavirus. Demand for advertising also increased. Against this backdrop, we have leveraged the Internet marketing knowhow we have cultivated to date to promote DX in our Internet marketing-related business. In our digital marketing support
tool [Beyocon], which utilizes the 1s t Party Data, we have begun to respond to the conversion data importing function forMicrosoft Advertising, thereby improving convenience.
We are also moving forward with new business initiatives for medium-term growth. We have strengthened our provision
of NFT issuance support services for creators and expanded creator economies (economic zones in which creators makemonetization through their own skills) through a platform [StandAlone] for creators that allows creators to disseminate
information themselves without going through major platforms and maximize their value.
Under these circumstances, in the Corporate and Creator 5G DX Support Business Segment, net sales were
19,278,245,000 yen (up 14.4% year on year) and segment income was 1,104,452,000 yen (up 82.7% year on year) as a result- 7 -of strong customer acquisition for affiliate services.
As a result of the above, net sales were 53,037,592,000 yen (up 13.4% year on year), operating income was 5,887,702,000
yen (up 46.9% year on year), ordinary income was 5,756,351,000 yen (up 55.3% year on year), and profit attributable toowners of parent was 3,566,009,000 yen (up 99.0% year on year).
(Reference 1)
Net sales for the 12-month period excluding the impact of the change in the fiscal year-end from the previous fiscal year
(Thousands of yen)
(Reference) Fiscal
Fiscal year ended April
Segment Name
year ended April
ChangeChange (%)
30, 2023
2024
5G Infrastructure Support Program

9,489,228

9,932,193

442,965

4.7

5G Lifestyle Support Business

23,261,191

24,880,991

1,619,800

7.0

Corporate and Creator 5G DX Support
Program

16,849,059

19,278,245

2,429,185

14.4

Adjustments△2,827,962△2,785,268

42,694-

46,771,516

51,306,161

4,534,645

9.7

Total

(N.B.) For the fiscal year ended April 30, 2024, these figures are unaudited reference values calculated for purposes of comparing
net sales.
(Reference 2)
Operating income (excluding strategic investments (temporary investments)) compared over 12 months excluding the impactof the change in fiscal year-end from the previous fiscal year
(Thousands of yen)
(Reference)(Reference)
Segment Name
Fiscal year ended April
Fiscal year ended
ChangeChange (%)
30, 2023
April 30, 2024
5G Infrastructure Support Program

1,679,079

1,807,419

128,339

7.6

5G Lifestyle Support Business

2,809,209

3,446,054

636,84422.7

Corporate and Creator 5G DX Support
Program

818,069

1,240,524

422,454

51.6

Others△16,540△20,753△4,213-

1,803△21,455△23,258-

5,291,622

6,451,787

1,160,164

21.9

Adjustments
Total(N.B.) These figures are unaudited reference values calculated for the purpose of comparing operating income for the fiscal years
ended April 30, 2023 and 2024.
Net Sales and Segment Income (Loss) by Segment(Thousands of yen)

Category

Net sales

Segment income (△)

5G Infrastructure Support Program

9,932,193

1,506,187

5G Lifestyle Support Business

26,612,422

3,319,271

Corporate and Creator 5G DX Support Program

19,278,245

1,104,452-△20,753△2,785,268△21,455

53,037,592

5,887,702

OthersAdjustments
Total

- 8 -

Comparison of Business Results for the Current Fiscal
Year and the Previous Fiscal Year
Fiscal year ended April 30, Fiscal year ended April 30,
2023 (A)2024 (B)(From May 1, 2022 to(From May 1, 2023 toApril 30, 2023)
April 30, 2024)(Thousands of yen)
Difference(B-A)

Year-onyearchange(%)

Net sales

46,771,516

53,037,592

6,266,075

13.4

Gross profit on sales

13,327,292

15,386,361

2,059,069

15.5

Selling, general and administrative expenses

9,319,736

9,498,658

178,922

1.9

Operating income

4,007,556

5,887,702

1,880,146

46.9

Ordinary income

3,707,329

5,756,351

2,049,022

55.3

Profit attributable to owners of parent

1,792,049

3,566,009

1,773,959

99.0(2) Overview of Financial Position for the Fiscal Year under Review
AssetsTotal assets at the end of the fiscal year under review increased 2,257,102,000 yen from the end of the previous fiscal year to38,183,589,000 yen.
This was mainly due to increases of 416,603,000 yen in cash and deposits, 531,377,000 yen in lease receivables andinvestment assets, 734,690 thousand yen in raw materials and supplies, 912,805 thousand yen in leased assets and 234,875
thousand yen in deferred tax assets, despite decreases of 255,244,000 yen in merchandise and finished goods and leased assets(tangible) of 285,904,000 yen.
Liabilities
Total liabilities at the end of the fiscal year under review decreased 1,907,371,000 yen from the end of the previous fiscal
year to 22,986,762,000 yen.
This was mainly due to decreases of 300 million yen in current portion of bonds, 663,280,000 yen in accounts payable-other,
1,454,898 thousand yen in long-term loans payable and 364,683 thousand yen in lease obligations (non-current), despite anincrease of 455,821,000 yen in current portion of long-term loans payable and 423,582,000 yen in income taxes payable.
(Net assets)
Total net assets at the end of the fiscal year under review increased by 4,164,474,000 yen from the end of the previous fiscal
year to 15,196,827,000 yen, mainly due to an increase in retained earnings. As a result, the equity ratio was 30.5%.
(3) Overview of cash flows for the fiscal year under review
The balance of cash and cash equivalents (hereinafter, "funds") at the end of the fiscal year under review was
18,722,373,000 yen, an increase of 416,603,000 yen from the end of the previous fiscal year.
The status of each cash flow for the current consolidated fiscal year and its factors are as follows.
(Cash Flows from Operating Activities)
Net cash provided by operating activities increased by ¥4,225,973,000 (from ¥3,322,201,000 in the previous fiscal year).
This was mainly due to income before income taxes and minority interests of ¥5,877,587,000, despite a decrease in accounts
payable-other of ¥653,947,000 and income taxes paid of ¥1,223,299,000.
(Cash Flows from Investing Activities)
Net cash used in investing activities was ¥1,085,370,000 (a decrease of ¥644,624,000 in the previous fiscal year). This was
mainly due to the purchase of property, plant and equipment of ¥1,116,678,000.
(Cash Flows from Financing Activities)
Net cash used in financing activities was ¥2,720,485,000 (a decrease of ¥2,110,714,000 in the previous fiscal year). This was
mainly due to ¥4,799,077,000 for repayment of long-term loans payable, ¥300 million for redemption of bonds, ¥390,804,000
for purchase of shares of subsidiaries not resulting in change in scope of consolidation, and ¥802,942 thousand for repaymentof lease obligations, despite ¥3.8 billion in proceeds from long-term loans payable.

- 9 -(4) Future Outlook
The Medium-Term Management Plan [SiLK VISION 2024], which was the first of the 10-year plan from 2021 to 2030,
progressed smoothly, and the set-up for business expansion as [a platform manufacturer in the 5G/web3 era] has been
completed.
Under the second medium-term management plan [SiLK VISION 2027], in addition to continuing to grow existing
businesses, we will expand our strategic portfolio through M&A and business alliances. In addition, we have positioned the
5G/web3 business as a "social implementation" stage, and intend to expand the [TONE IN] strategy of expanding thetechnologies and services cultivated through [Tone Mobile] into other fields, including IoT, and to build services based on theconceptual designs of [Medical DX] and [Trusted Web Concept] in the medical and healthcare fields. And by leveraging ournext-generation telecommunications (5G), including IoT, and our blockchain and advanced technologies, we will makeconcerted efforts to resolve various social issues in the 5G/web3 era.
Going forward, while contributing to the realization of a sustainable society, we will continue to concentrate ourmanagement resources in the mobile revolution, lifestyle revolution, and production revolution domains, which we consider tobe global growth domains. As [a platform manufacturer in the 5G/web3 era], we will aim to expand our business by utilizing"exponentially growing technologies."
For the fiscal year ending April 30, 2025, the first year of the next medium-term management plan [SiLK VISION 2027], we
will promote initiatives to implement the above strategies while continuing to expand earnings.
As a result of the above, for the fiscal year ending April 30, 2025, we forecast consolidated net sales of ¥54 billion, operating
income of ¥5.7 billion, ordinary income of ¥5.5 billion, and net income attributable to owners of the parent of ¥3 billion.
※ The above forecasts are based on information available as of the date when this document was released. Actual results may
differ from the forecasts due to various factors in the future.

2. Basic Approach to Selection of Accounting Standards
Taking into consideration the comparability of consolidated financial statements between periods and between companies, ourpolicy for the time being is to prepare consolidated financial statements in accordance with Japanese GAAP.

- 10 -

3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Thousands of yen)Previous consolidated fiscal year Current consolidated fiscal year
As of April 30, 2023
(April 30, 2024)
Assets section
Current assets
Cash and deposits
Notes receivable
Accounts receivable
Contract assets
Lease receivables and investment assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Prepaid expenses
Accounts receivable
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net
Land
Rental assets, net
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible fixed assets
Goodwill
Software
Software in progress
OthersTotal intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Guarantee deposits
OthersAllowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets- 11 -

18,305,769
173,106
8,192,709
29,446394,925
338,698
251,623
1,248,072
468,303572,895
731,764△66,882
30,640,431

18,722,373
132,810
8,349,738
23,525926,30283,453
195,266
1,982,762
573,202471,028
410,840△53,727
31,817,576

435,582
177,670
265,780
1,101,285
333,535
161,971
2,475,825

341,196
162,135
1,178,585
815,380
402,144
138,0813,037,524

37,149171,899
162,227
17,994389,271

2,406
248,223
312,661
21,841
585,132

949,050
1,496,914
864,239
480,969
365,133△1,735,348
2,420,958
5,286,055
35,926,487

989,025
1,496,914
1,099,115
482,037
407,869△1,731,604
2,743,356
6,366,013
38,183,589

(Thousands of yen)Previous consolidated fiscal year Current consolidated fiscal year
As of April 30, 2023
(April 30, 2024)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of bonds
Current portion of long-term debt
Lease obligations
Accounts payable-other
Income taxes payable
Contractual liabilities
Accrued bonuses
Other reserves
OthersTotal current liabilities
Long-term liabilities
Long-term debt
Lease obligations
Provision for directors' retirement benefits
Net defined benefit liability
OthersTotal long-term liabilities
Total liabilities
Net assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Total accumulated other comprehensive income
Stock purchase warrants
Stock acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 12 -

256,361
300,000
300,000
4,492,962
741,035
5,936,200
708,358
579,468
150,092
48,455851,012
14,363,947

352,019300,000
4,948,783
557,414
5,272,919
1,131,940
461,862259,526
102,098
763,303
14,149,868

9,084,282
1,073,433
60,52757,300254,643
10,530,186
24,894,134

7,629,384
708,750
60,527
66,206
372,025
8,836,893
22,986,762

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

4,514,185
1,496,844
8,693,075△3,240,129
11,463,975

54,227△6,50047,72675,185780
2,713,938
11,032,352
35,926,487

174,924△10,015
164,909
133,359780
3,433,802
15,196,827
38,183,589

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)Previous consolidated fiscal year Current consolidated fiscal year
(From May 1, 2022
(From May 1, 2023
to April 30, 2023)
to April 30, 2024)
Net sales
Cost of sales
Gross profit on sales
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Equity in earnings of affiliates
Foreign exchange gain
Gain on sales of investment securities
Penalty income
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Commissions paid
Loss on devaluation of investment securities
Litigation expenses
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of property, plant and equipment
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Gain on transfer of business
Reversal of provision for loss on indemnification ofdamages
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on sales and retirement of non-current assets
Loss on devaluation of investment securities
Loss on valuation of investments in subsidiaries andaffiliates
Cost of disposal of telecommunications facilities
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes-deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Profit attributable to owners of parent- 13 -

46,771,516
33,444,223
13,327,292
9,319,736
4,007,556

53,037,592
37,651,230
15,386,361
9,498,658
5,887,702

742
5,742
11,015
14,45831,9591,459
2,223
21,79913,63422,031
24,04385,191

113,717
1,922
137,070
21,64939,207
18,618332,186
3,707,329

99,39718,02153,044
26,465
19,613
216,5425,756,351-

6,440
172,799
86,462
4,000

21,315-21,315

269,70236,8981,357
212,452

141,123
3,127
-

-

4,216

35,330286,038
3,442,606
1,187,318△325,461
861,856
2,580,749
788,699
1,792,049

148,466
5,877,587
1,570,185△285,323
1,284,861
4,592,726
1,026,716
3,566,009

Consolidated Statements of Comprehensive Income(Thousands of yen)Previous consolidated fiscal year Current consolidated fiscal year
(From May 1,(From May 1,
2022 to April 30, 2023)
2023 to April 30, 2024)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrollinginterests- 14 -

2,580,749

4,592,726

26,242△2,34723,8942,604,644

120,696△3,514
117,182
4,709,909

1,815,519

3,683,192

789,124

1,026,716

(3) Consolidated Statements of Changes in Net Assets
Previous fiscal year (from May 1, 2022 to April 30, 2023)(Thousands of yen)
Shareholders' equity
Common stock
Balance at the beginning of theperiodCapital surplus

4,514,185

Retained earnings

3,050,292

3,635,697

Total shareholders'equityTreasury stock△4,343,431

6,856,743

Changes during the period
Dividends from surplus△141,000△141,000

Profit attributable to ownersof parent

1,792,049

1,792,049

Purchase of treasury stock
Disposal of treasury stock

397,441

Change in treasury shares ofparent arising fromtransactions with noncontrolling interests

△74

△74

1,073,158

1,470,600△1,800,406△1,800,406△2,299Restricted stock awards

19,10916,809Net changes of items otherthan shareholders' equity
Total changes during the period-△1,405,264

1,651,049

1,092,193

1,337,978

Balance at the end of the period

4,514,185

1,645,027

5,286,747△3,251,237

8,194,722

Accumulated other comprehensive income
Total
Valuation
Foreign currency accumulateddifference ontranslation
otheravailable-for-saleadjustments
comprehensive
securities
incomeBalance at the beginning of theperiod27,985△3,72824,256

Stock purchase Stock acquisition Non-controlling
Total net assets
warrantsrightsinterests

50,755780

4,106,671

11,039,207

Changes during the period
Dividends from surplus△141,000

Profit attributable to ownersof parent

1,792,049

Purchase of treasury stock△74

Disposal of treasury stock

1,470,600

Change in treasury shares ofparent arising fromtransactions with noncontrolling interests△1,800,406

Restricted stock awards

16,809Net changes of items otherthan shareholders' equity

26,242△2,772

23,46924,430-△1,392,733△1,344,833

Total changes during the period

26,242△2,772

23,46924,430-△1,392,733△6,854

Balance at the end of the period

54,227△6,50047,72675,185780

2,713,938

11,032,352- 15 -

Current fiscal year (From May 1, 2023 to April 30, 2024)(Thousands of yen)
Shareholders' equity
Common stock
Balance at the beginning of theperiodCapital surplus

4,514,185

Retained earnings

1,645,027

5,286,747

Total shareholders'equityTreasury stock△3,251,237

8,194,722

Changes during the period
Dividends from surplus△159,682△159,682

Profit attributable to ownersof parent

3,566,009

3,566,009

Change in treasury shares ofparent arising fromtransactions with noncontrolling interests△151,053

Restricted stock awards△151,053

2,870

11,108

13,978Net changes of items otherthan shareholders' equity
Total changes during the period-△148,182

3,406,327

11,1083,269,253

Balance at the end of the period

4,514,185

1,496,844

8,693,075△3,240,129

11,463,975

Accumulated other comprehensive income
Total
Valuation
Foreign currency accumulateddifference ontranslation
otheravailable-for-saleadjustments
comprehensive
securities
incomeBalance at the beginning of theperiod54,227△6,50047,726

Stock purchase Stock acquisition Non-controlling
Total net assets
warrantsrightsinterests

75,185780

2,713,938

11,032,352

Changes during the period
Dividends from surplus△159,682

Profit attributable to ownersof parent

3,566,009

Change in treasury shares ofparent arising fromtransactions with noncontrolling interests△151,053

Restricted stock awards

13,978Net changes of items otherthan shareholders' equity

120,696△3,514

117,182

58,174-

719,864

895,221

Total changes during the period

120,696△3,514

117,182

58,174-

719,864

4,164,474

Balance at the end of the period

174,924△10,015

164,909

133,359780

3,433,802

15,196,827- 16 -

(4) Consolidated Statements of Cash Flows(Thousands of yen)Previous consolidated fiscal year Current consolidated fiscal year
(From May 1,(From May 1,
2022 to April 30, 2023)
2023 to April 30, 2024)
Net cash provided by operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts(△: decrease)
Interest and dividend income
Interest expense and interest on bonds
Foreign exchange gains (losses) (gains on △)Equity in earnings (△) of affiliates
Unrealized gains (losses) on available-for-salesecurities. (Gain on △)Loss (Gain) on Sales of Investment Securities. (△)
Loss (gain) on sales of shares of subsidiaries andassociates (gain on △)Decrease (increase) in notes and accounts receivable trade (increase in △)Decrease (increase) in inventories (increase in △)Increase (decrease) in other receivables (△ increased)
Decrease (△ increased) in other current assets
Increase (decrease) in accounts payable - other(decrease in △)Decrease (△) in other current liabilities
Increase (decrease) in other long-term liabilities (△:decrease)
OthersSubtotalInterest and dividend income received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of investment securities
Proceeds from sales of shares of subsidiaries andassociates
OthersCash flows from investing activities
Cash flows from financing activities
Proceeds from long-term debt
Repayments of long-term debt
Payments for redemption of bonds
Proceeds from sales of treasury stock
Purchase of treasury stock
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Cash dividends paid
Repayments of lease obligations
OthersCash flows from financing activities
Effect of exchange rate changes on cash and cash

- 17 -

3,442,606
890,51736,89837,437

5,877,587
753,606
141,123
13,743△16,843△16,898△742
113,71783
1,922△1,45999,397△217△2,223

234,101

53,044-△186,434-△86,462△364,427△116,732△208,045△42,911430,911△423,088
72,646△315,885

98,889△653,947△84,869

59,486

31,727

124,889

32,481
4,633,458
744△114,072△1,304,354
106,425
3,322,201

62,886
5,455,061
2,500△100,118△1,223,299
91,8304,225,973△558,484△110,614
17,788△1,116,678△303,417
240,143-

112,500

6,687△644,624△17,917△1,085,370

5,800,000△4,185,960△200,000
1,470,600△74

3,800,000△4,799,077△300,000-△3,932,017△390,804△140,878△870,005△52,378△2,110,714△2,350△159,156△802,942△68,504△2,720,485△3,513equivalents
Net increase (decrease) in cash and cash equivalents (△)
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

564,513
17,741,256
18,305,769- 18 -

416,603
18,305,769
18,722,373

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Change in scope of consolidation or equity method application)
Changes in the fiscal year, etc. of consolidated subsidiaries
During the fiscal year under review, consolidated subsidiaries GIGAPRIZE CORPORATION, GIGATECCORPORATION, SOFT BORANCE CORPORATION, and LTM CORPORATION changed their fiscal year-end fromMarch 31 to April 30, and are the same as the consolidated fiscal year-end.
As a result of this change in the fiscal year-end, the fiscal year under review for this consolidated subsidiary is 13 months,
and the impact of the change in the fiscal year-end is adjusted through the consolidated statement of income.
The consolidated subsidiaries recorded net sales of ¥1,731,430,000, operating income of ¥398,106,000, and ordinary
income and income before income taxes and minority interests of ¥395,372,000 for the period from April 1, 2023 to April
30, 2023.
(Changes in Presentation Method)
Consolidated Balance Sheets
In the past, the presentation of leased assets was included in [Buildings and structures], [Land], and [Others](¥146,641,000, ¥118,434,000 and ¥704,000, respectively, for the previous fiscal year, respectively). However, due to thecompletion of a complex of LTM Co., Ltd. [LIVINGTOWN Minatomirai] and the completion of a condominium in Nerima
Ward, Tokyo, a consolidated subsidiary, it was determined that the aggregate presentation of assets used in tenant
management services and real estate leasing services would be an appropriate presentation of the consolidated balance sheet
for the fiscal year under review.[Rental assets] are presented as 1,178,585,000 yen for the current fiscal year.
Segment Information
1. Overview of reportable segments
The reportable segments of the Group are the constituent units of the Group for which separate financial information isavailable and which are subject to periodic review by the Board of Directors for the purpose of deciding the allocation ofmanagement resources and evaluating business performance.
Our group develops comprehensive domestic and overseas strategies for the services we handle and conducts businessactivities. Accordingly, our group consists of segments based on services. We have three reportable segments: [5GInfrastructure Support Business], [5G Lifestyle Support Business] and [Corporate and Creator 5G DX Support Business].
[5G Infrastructure Support Business] provides business support services for ISPs, business support (MVNE) services
for MVNOs, and cloud services for corporations. [5G Lifestyle Support Business] provides mobile communicationsrelated services for individuals, Internet connection-related services for individuals, Internet connection services for
multifamily homes, and company housing management agency services. [Corporate and Creator 5G DX Support
Business] provides Internet marketing related services and ad technology related services.
2. Calculation method for net sales, income or loss, assets and other items by reportable segment
The method of accounting for reportable business segments is in accordance with the accounting policies used toprepare the consolidated financial statements.
Income (loss) of reportable segments is based on operating income.
Inter-segment profits or transfers are based on prevailing market prices.

- 19 -

3. Information on net sales, income (loss), assets and other items by reportable segment
Previous fiscal year (from May 1, 2022 to April 30, 2023)(Thousands ofyen)
Reportable Segments
5G Infrastructure
5G LifestyleSupport Program Support BusinessCorporate andCreator 5G DX
Support Program

Others(N.B.) 1

Total

Net sales
Sales to external customers

7,156,127

23,117,078

16,498,310-

46,771,516

Intersegment sales or transfers

2,333,101

144,113350,748-

2,827,962

Total

9,489,228

23,261,191

16,849,059-

49,599,479

Segment income (△)

1,378,392

2,039,485

604,414△16,540

4,005,752

Segment assets

3,484,706

10,813,505

3,742,398

425,660

18,466,270(Thousands ofyen)
Amount recordedin consolidated
financialstatements(N.B.) 3

Adjustments(N.B.) 2
Net sales
Sales to external customers-

46,771,516

Intersegment sales or transfers△2,827,962

-

Total

△2,827,962

46,771,516

Segment income (△)

1,803

4,007,556

17,460,216

35,926,487

Segment assets(N.B.) 1. [Others] is a business segment that is not included in the reportable segments and includes the startup investment
development business.
2. Adjustments are as follows.
(1) Adjustments to segment income (△) of ¥1,803,000 include reclassifications of allowance for doubtful accounts.
(2) Adjustments to segment assets of ¥17,460,216,000 include cash and deposits of ¥18,305,769,000 and △ of
consolidation adjustments of ¥845,553,000.
3. Segment income (△) is reconciled to operating income in the consolidated financial statements.

- 20 -

Current fiscal year (From May 1, 2023 to April 30, 2024)(Thousands ofyen)
Reportable Segments
5G Infrastructure
5G LifestyleSupport Program Support BusinessCorporate andCreator 5G DX
Support Program

Others(N.B.) 1

Total

Net sales
Sales to external customers

7,732,335

26,489,538

18,815,717-

53,037,592

Intersegment sales or transfers

2,199,858

122,883

462,527-

2,785,268

Total

9,932,193

26,612,422

19,278,245-

55,822,860

Segment income (△)

1,506,187

3,319,271

1,104,452△20,753

5,909,158

Segment assets

4,238,523

11,767,674

3,965,921

346,721

20,318,840(Thousands ofyen)
Amount recordedin consolidated
financialstatements(N.B.) 3

Adjustments(N.B.) 2
Net sales
Sales to external customers-

53,037,592

Intersegment sales or transfers△2,785,268

-

Total

△2,785,268

53,037,592

Segment income (△)△21,455

5,887,702

17,864,749

38,183,589

Segment assets(N.B.) 1. [Others] is a business segment that is not included in the reportable segments and includes the startup investment
development business.
2. Adjustments are as follows.
(1) Adjustments to segment income (△) of ¥21,455,000 include eliminations of intersegment transactions, etc.
(2) Adjustments to segment assets of ¥17,864,749,000 include cash and deposits of ¥18,722,373,000 and △ of
consolidation adjustments of ¥857,624,000.
3. Segment income (△) is reconciled to operating income in the consolidated financial statements.

- 21 -

(Per Share Information)
Previous consolidated fiscal year
(From May 1, 2022 to April 30, 2023)

Current consolidated fiscal year
(From May 1, 2023 to April 30, 2024)

Net assets per share

412.94 Yen

582.26 Yen

Net income per share

95.07 Yen

178.58 Yen

Diluted net income per share

94.31 Yen

176.74 Yen(N.B.) The basis for calculating net income per share and diluted net income per share is as follows.
Previous consolidated fiscal year
(From May 1, 2022 to April 30, 2023)

Current consolidated fiscal year
(From May 1, 2023 to April 30, 2024)

Net income per share
Profit attributable to owners of parent(thousand yen)

1,792,049

3,566,009--

Profit attributable to owners of parent related
to common stock (thousand yen)

1,792,049

3,566,009

Average number of shares of common stock
outstanding during the period (shares)

18,849,604

19,968,319

151,991

207,983

Amount not attributable to commonshareholders (thousand yen)

Diluted net income per share
Increase in common stock (shares)(Stock acquisition rights (shares))
Subsequent grants of restricted stock awards(shares)
Summary of dilutive shares not included in thecalculation of diluted net income per sharebecause they have no dilutive effect-(Significant subsequent events)
Not applicable.

- 22 -(2,841)(20,283)(149,150)(187,700)-