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 First Quarter of the Fiscal Year Ending April 30, 2024
(Japanese GAAP)
September 8, 2023
Listed company
nameCode No.
Representative
Contact

FreeBit Co., Ltd.
3843
Title:
Title:

Listing: Tokyo Stock Exchange

URL https://freebit.com/
President, CEO and CTO
Director and General Manager ofGroup Corporate Planning Division

Name: Atsuki Ishida
Name: Ikuko Wada

Date of Quarterly Report
September 11, 2023
Release:Supplementary documents available
pertaining to quarterly financial results: Yes
Quarterly results briefing: Yes(Video streaming Only)

TEL 03-5459-0522

Start Date of Dividend
Payout:(all amounts rounded down to the nearest million yen)
Consolidated Financial Results for the First Quarter of the Fiscal Year Ending April 30, 2024 (May 1, 2023 to July 31, 2023)(1) Consolidated Operating Results (Cumulative)(percentages shown represent year-on-year % change)
Net sales
Three months ended

July 31, 2023
July 31, 2022

Millions ofyen
14,04011,142(Note) Comprehensive income July 31, 2023

Operating income%
4.4

Millions of
yen
1,664
864

1,181Millions of yen

Net income per share

Ordinary income
%

-16.2

Millions of
yen
1,623
773

%
-23.9

Net income attributableto owners of the parent
Millions of
%
yen
863
305
-45.7

(-%) ,July 31, 2022 482Millions of yen (-34.6%)

Net income per share(Diluted)Three months ended
Yen
Yen
July 31, 2023
43.26
42.80
July 31, 2022
16.26
16.14
(Note) Consolidated subsidiary GIGAPRIZE Co., Ltd. and its subsidiaries have changed the date of their fiscal year-end from March
31 to April 30. As the first quarter of the current fiscal year is a transitional period for changing the date of their fiscal year-end,
percentages representing year-on-year change has been omitted.

(2) Consolidated Financial Position
Total assets
As ofJuly 31, 2023
April 30, 2023

Millions of yen
35,10235,926

Net assets
Millions of yen
11,892
11,032

Shareholders’Equity
Ratio
%
25.4
22.9

(Reference) Shareholders' equity: July 31, 2023：8,907 Millions of yen ; April 30, 2023 : 8,242 Millions of yen
2. Dividends
Dividend per share
End of 1Q
FY2023/04
FY2024/04

End of 2Q
Yen
-

Yen
0.00

- 1 -

End of 3Q
Yen-

End of Term
Yen
8.00

Total
Yen
8.00

Dividend per share
End of 1Q

End of 2Q

End of 3Q

End of Term

Total

FY2024/04(Forecast)(NOTE) Revisions during this quarter of dividends forecast for fiscal year: None
At present, the dividend forecast for the fiscal year ending April 2024 is undecided.
Forecast of Consolidated Financial Results for the Fiscal Year Ending April 30, 2024 (May 1, 2023 to April 30, 2024)(percentages shown represent year-on-year % change)
Net sales

FY2024/04

Millionsof yen50,000%
6.9

Profit attributable toowners of parent
Millions%%of yen
21.4
2,500
39.5

Operating income

Ordinary income

Millionsof yen5,000

Millionsof yen
4,500

%
24.8

Net income per
share
Yen
125.25(Note) Revisions during this quarter of previously disclosed consolidated business results projection for FY2024: None
Since we manage our operations on an annual basis, we have omitted the presentation of consolidated earnings forecasts for thesecond quarter (cumulative).
For more information, please refer to "(3) Consolidated Results Forecasts and Other Forward-looking Information" of P.8"
Qualitative Information on Quarterly Financial Results”, etc.
※ Notes(1) Transfers in significant subsidiaries during the period (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 policy, changes in accounting estimates, restatements① Changes resulting from revisions to accounting standard, 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(inc. treasury)

Q1 FY2024/04

23,414,000shares

FY2024/04

23,414,000shares②Treasury shares at period end

Q1 FY2024/04

3,453,741shares

FY2024/04

3,453,741shares③Average number of shares during the period

Q1 FY2024/04

19,960,259shares

Q1 FY2023/04

18,800,031shares※ Quarterly financial results are not subject to quarterly review by independent auditors.
※ 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 constitute guarantees 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 andOther Forward-looking Information" of P.8" Qualitative Information on Quarterly Financial Results” for the assumptions upon which
the forecasts are based and for notes regarding the use of the forecasts.
(Method of obtaining supplementary material on financial results and details of quarterly 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.

- 2 -○ Appendix Table of Contents････････････････････････････････････････････････

4(1) Operating Results ････････････････････････････････････････････････････････････････････････････

4(2) Financial Position ････････････････････････････････････････････････････････････････････････････

8(3) Consolidated Results Forecasts and Other Forward-looking Information ･････････････････････････････････

8･･････････････････････････････････････････

9(1) Quarterly Consolidated Balance Sheets ･･･････････････････････････････････････････････････････････

9(2) Quarterly Consolidated Statements of Income and Comprehensive Income ･････････････････････････････････

11

1. Qualitative Information on Quarterly Financial Results

2. Quarterly Consolidated Financial Statements and Major Notes

Quarterly Consolidated Statements of Income
First quarter consolidated cumulative accounting period ････････････････････････････････････････････

11

Quarterly Consolidated Statements of Comprehensive Income
First quarter consolidated cumulative accounting period ････････････････････････････････････････････(3) Notes to Quarterly Consolidated Financial Statements

1213(Notes regarding the going concern assumption) ････････････････････････････････････････････････････

13(Notes regarding changes impacting shareholders’ equity ) ･･･････････････････････････････････････････

13(Changes in the scope of consolidation or application of the equity method) ･･････････････････････････････

13(Segment Information) ････････････････････････････････････････････････････････････････････････

13

- 3 -

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 quarterly period.
GIGAPRIZE CORPORATION (GIGAPRIZE) and its subsidiaries changed their fiscal year-end from March 31 to April 30,
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 months from April 1, 2023, to April 30, 2024. In the first quarter of the fiscal year underreview, the four months from April 1, 2023, to July 31, 2023, have been included in the consolidated settlement.
For more information on the change in fiscal year-end, see “2.Quarterly Consolidated Financial Statements and Major Notes(3) Notes to Quarterly Consolidated Financial Statements (Changes in the scope of consolidation or the scope of application of
the equity method)” of p.13.
The official names and explanations of the names used in “Explanation of Operating Results” are as follows.
Name in use

Official name

Explanation
Abbreviation for 5th Generation Mobile Communications System, which is oneof the next generation communications standards
Concept of the next-generation distributed Internet, which enables users to
exchange data and content directly with each other without going through a huge
platform former

5G

5th Generation

web3

Web3(Web 3.0)

MVNO

Mobile Virtual Network 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 CareDX

Digital Transformation

NFT

Non-Fungible Token

Virtual mobile operator
A generic term for a data center or server group in which a system for providing
software, etc. to users over a network and data is stored and operated
A system that allows goods to communicate with each other by equipping themwith a communication function, thereby enabling automatic recognition andautomatic control without human intervention.

One of TONE Laboratory's demonstration test projects
An online service that allows customers to promptly provide various healthconsultations remotely, such as consultations on health concerns and counselingon the overuse of children's smartphones
Reforming products, services, business models, etc. by utilizing data and digitaltechnologies
Technology that can clarify whether digital content is real, who is the producer,
and who is the owner

Our group promotes corporate management with a view to the 10-year plan from 2021 to 2030. In line with this, we are
currently promoting management to achieve net sales of 50 billion yen and operating income of 5 billion yen in the threeyear medium-term management plan “SiLK VISION 2024” that ends in the current consolidated fiscal year.
In addition, with an eye to the Next Medium-Term Management Plan “SiLK VISION 2027”, we will invest ourmanagement resources in 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 Exponential Technology "exponentially growing technologies" as “5G/web3 era Platform
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 ISPs, we promotesupport services for various business corporations to introduce cloud and IoT, etc. We will also build next-generation
networks and data centers to respond to the 5G era. We will strengthen service provision that leverages our cloudinfrastructure and deploy services that utilize 5G, and eSIM (embedded SIM), as well as expand services that combine theseand other business resources.
<5G Lifestyle Support Business>
In addition to providing mobile communications services using smartphones and other devices targeting individuals andInternet-related services via fixed lines, we are promoting the provision of 5G Homestyle (Internet Services for Collective- 4 -Housing). In 5G Homestyle, we are also focusing on establishing new services other than Internet services for apartmentbuildings.

- 5 -In addition, we will develop and provide services with an eye to the future changes in lifestyles in the 5G/web3 era using“TONE”, our proprietary smartphone using Maker's Maker platforms. In addition to existing businesses, we will also
develop and expand new services in fields such as 5G Workstyle and 5G Healthstyle,5G Lifestyle, and 5G Carlifestyle,while “TONE” is responsible for the positioning of our group's technologies as Showroom.
<Corporate and Creator 5G DX Support Business>
We are expanding our 5G marketing-conscious services and influencer marketing. In addition to promoting Internet
marketing and ad technology-related businesses with a view to web3, we are developing Bizmodel Maker that is amechanism that allows companies that start Creator Maker and new businesses, which are platforms that allow YouTubers
and other creators and influencers to spread their works, to provide services via their platforms.
In the first quarter of the fiscal year under review, despite concerns about a temporary slowdown in the pace of growth
due to the slowdown in overseas economies and the impact of high prices, firm growth is expected in the domestic IT market
environment. However, while 5G and web3 are expected to penetrate, their spread is still in the process of being spread. 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 consolidated 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 effective strategic investing that effectively utilizes the Group's management resources. In
this way, we will strive to establish our position as Platform Maker of “5G/web3 era” 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 content and SNS, including games, along with changes in working styles andlifestyles, and the generalization of online-format conferences and classes, such as the spread of telework and home-basedlearning. As a result, network costs remain on a high trend.
In the mobile network business, the provision of inexpensive plans by major mobile telecommunications carriers andthe 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 whole continues and is expected to expand in the future, including the expected
increase in use for IoT.
Against this backdrop, MVNE's support business for MVNO expanded and remained firm in our group.
As a result, the segment recorded sales of 2,427,530 thousand yen (up 4.3% year on year) and the segment profit of
438,45 thousand yen (up 11.5% year on year).
② 5G Lifestyle Support BusinessAs explained in “5G Infrastructure Support Business”, network costs are rising in the fixed-line network services
market, but the market for 5G Homestyle (Internet Services for Collective Housing), one of the Group's main services, is
expected to steadily expand in the future as the high-speed broadband environment aimed at improving the asset value ofbuildings and occupancy rates is being standardized, and the use of telework, online classes, video content viewing, andother services has been recognized as standard. As a result, the market size of these services is expected to steadily expandin the future. To respond to the growing demand for high-speed communications, we have also begun offering ISP
services for faster apartment buildings. In addition, as part of our efforts to realize “Smart Town” (a town where theconvenience of urban infrastructures is enhanced through the use of digital technologies), we will propose new lifestyles
and lifestyles in the 5G/web3 era utilizing various advanced technologies in community towns “LIVING TOWN Minato
Mirai”.

- 6 -In 5G Lifestyle (mobile communications services for individuals and Internet-related services), we provide smartphonedevices with an eye to the arrival of the 5G/web3/ metaverse era in smartphone services “Tone Mobile” utilizing the
proprietary technologies offered by our group. We are also working to resolve a variety of social issues, such as thedevelopment of a watch-and-watch service for families equipped with “TONE Anshin AI” that monitors families in AI asa unique service using smartphones. We are also providing specialist counseling on the "overuse of smartphones" in thenext-generation online health consulting service “TONE Care” to solve the social issue of Internet dependency, which isworldwide in danger. In order to increase the number of subscribers to “Tone Mobile”, we implemented marketingmeasures mainly in performance-based advertising given cost-effectiveness.
As GIGAPRIZE and its subsidiaries responsible for 5G Homestyle changed their fiscal year-end in the current fiscal
year, in the first quarter of the fiscal year under review, the four months from April 1, 2023, to July 31, 2023, have been
included in the consolidated financial results.
As a result, the segment recorded sales of 7,600,326 thousand yen (up 38.8% year on year) and the segment profit of
1,034,418 thousand yen (up 174.4% year on year).
In addition, even a comparison of the first quarter under review estimated over the same three-month period as the firstquarter of the previous fiscal year, both net sales and segment income increased from the previous fiscal year due to thesmooth performance of the business itself.
③ Corporate and Creator 5G DX Support BusinessIn the Internet marketing and ad technology services offered by Full Speed Inc. (Full Speed), economic activity began
to normalize due to the relaxation of action restrictions along with the transition to a new type of coronavirus infectious
disease, and demand for advertising was also on a gradual recovery trend. In this environment, we worked to promote DX
for 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 make monetization through their own skills) through a platform forcreators “StandAlone” that allows 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 forcreators. We also worked to improve operational efficiency and control costs by implementing PMI after making Full
Speed a wholly-owned subsidiary.
As a result, the segment recorded sales of 4,668,227 thousand yen (up 15.6% year on year) and the segment profit of
197,427 thousand yen (up 104.7% year on year).
In addition, as a result of incorporating the four months from April 1, 2023, to July 31, 2023, of GIGAPRIZE and its
subsidiaries into the consolidated results for the first quarter of the fiscal year under review, net sales were 14,040,063
thousand yen, operating income was 1,664,687 thousand yen, ordinary income was 1,623,744 thousand yen, and profit
attributable to owners of the parent was 863,491 thousand yen.
(Reference 1)
Comparison of net sales between the first quarter of the previous fiscal year and the first quarter of this fiscal year, excluding
the impact of change of fiscal year-end(Thousands of yen)
(Reference)
FY2023/04
Segment
FY2024/04
ChangeChange (%)
First quarter
First quarter
5G Infrastructure Support Business

2,328,232

2,427,533

99,301

4.3

5G Lifestyle Support Business

5,477,492

5,868,896

391,404

7.1

Corporate and Creator 5G DX Support
Business

4,039,096

4,668,227

629,130

15.6

Adjusted amount△702,676△656,024

46,652-

11,142,144

12,308,633

1,166,488

10.5

Total

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

- 7 -(Reference 2)
Comparison of operating income (excluding strategic investments (temporary investments)) between the first quarter of theprevious fiscal year and the first quarter of this fiscal year, excluding the impact of fiscal year-end change(Thousands of yen)
(Reference)(Reference)
Segment
FY2023/04
FY2024/04
ChangeChange (%)
First quarter
First quarter
5G Infrastructure Support Business

453,487

512,989

59,501

13.1

5G Lifestyle Support Business

527,397

761,964

234,566

44.5

Corporate and Creator 5G DX Support
Business

127,429

210,260

82,830

65.0

Other

-3,966-5,381-1,414-

Adjusted amount

1,963

-228

-2,191-

1,106,310

1,479,603

373,292

33.7

Total

(Note) These figures are unaudited reference figures calculated for the purpose of comparing operating income for the first quarterof the fiscal year ending April 2023 and the first quarter of the fiscal year ending April 2024.
Net Sales and Segment Income (Loss) by Segment(Thousands of yen)Classification

Segment profit
Or (loss)

Net sales

5G Infrastructure Support Business

2,427,533

438,451

5G Lifestyle Support Business

7,600,326

1,034,418

Corporate and Creator 5G DX Support Business

4,668,227

197,427--5,381-656,024-228

14,040,063

1,664,687

Other
Adjusted amountTotal(2) Financial Position
Total assets at the end of the first quarter of the fiscal year under review were 35,102,907 thousand yen decreased by
823,579 thousand yen from the end of the previous fiscal year. This was mainly due to a decrease in cash and deposits of
1,471,445 thousand yen, despite an increase in notes receivable, accounts receivable and contract assets of 192,728 thousand
yen, accounts receivable-other included in other current assets of 349,709 thousand yen, and lease receivables (tangible)
included in other current assets of 209,176 thousand yen.
Liabilities were 23,210,268 thousand yen, a decrease of 1,683,865 thousand yen from the end of the previous fiscal year.
This was mainly due to decreases in accounts payable-other by 357,229 thousand yen, income taxes payable by 280,343
thousand yen, long-term loans payable by 799,085 thousand yen, and lease obligations (non-current) by 143,447 thousand yen.
Net assets increased 860,285 thousand yen from the end of the previous fiscal year to 11,892,638 thousand yen due to anincrease in retained earnings, etc., and as a result, the equity ratio was 25.4%.
(3) Consolidated Results Forecasts and Other Forward-looking Information
There is no change in the full-year forecast for the fiscal year ending April 2024 from the figure announced on June 9, 2023,
as the results for the first quarter of the fiscal year under review have generally remained in line with forecasts.

- 8 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets
Previous 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 and accounts
payableShort-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- 9 -(Thousands of yen)
1st Quarter
Current Fiscal YearAs of July 31, 2023

18,305,769

16,834,324

8,395,261

8,587,989

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

288,071
221,305
1,433,119
2,438,279△66,577
29,736,513

2,475,825

2,571,489

37,149171,899
180,221389,271

31,807
181,817214,196
427,821949,050

952,019

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

1,496,914
480,894
1,172,212-1,734,957
2,367,083
5,366,394
35,102,907

256,361

259,163

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

500,000
4,394,588
5,578,971
428,015
203,6122,237,712
13,602,062

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

8,285,197
929,986
60,52760,679271,816
9,608,206
23,210,268

Previous 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-sale securities
Foreign Currency Translation Adjustments
Total other accumulated comprehensive income
Stock purchase warrants
Stock acquisition rightNon-controlling shareholders' equity
Total net assets
Total liabilities and net assets- 10 -(Thousands of yen)
1st Quarter
Current Fiscal YearAs of July 31, 2023

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

4,514,185
1,605,421
5,990,557-3,251,237
8,858,926

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

60,177-11,305
48,872
91,082780
2,892,977
11,892,638
35,102,907

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
First quarter consolidated cumulative accounting period(Thousands of yen)
1st Quarter
Previous Fiscal Year
(3months to July 31, 2022)
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
Commissions paid
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Reversal of provision for loss on indemnification ofdamages
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Write-down of investment securities
Total extraordinary loss
Quarterly income before income taxes and minority
interests
Income taxes
The Deferred Corporation Tax, etc.
Total income taxes
Quarterly net income
Quarterly net income attributable to non-controllinginterests
Quarterly profit attributable to owners of the parent- 11 -

1st Quarter
Current Fiscal Year
(3months to July 31, 2023)

11,142,144
7,902,399
3,239,744
2,375,117
864,627

14,040,063
9,915,733
4,124,329
2,459,641
1,664,687

108
502
13,412
3,932
5,427
5,324
28,709

472
2,078
7,550
7,562
3,067
20,73130,711
78,661
10,597
119,970
773,365

29,741
15,89516,037
61,674
1,623,744

21,315-21,315-781
50,27451,056

2,023
2,023

743,625

1,621,720

233,366
38,769272,135
471,489

385,981
55,287441,269
1,180,451

165,841

316,959

305,648

863,491

Quarterly Consolidated Statements of Comprehensive Income
First quarter consolidated cumulative accounting period(Thousands of yen)
1st Quarter
Previous Fiscal Year
(3months to July 31, 2022)
Quarterly net income
Other comprehensive income
Unrealized gain on available-for-sale securities
Foreign Currency Translation Adjustments
Total other comprehensive income
Quarterly comprehensive income(Comprehensive income attributable to)
Quarterly comprehensive income attributable toowners of the parent
Quarterly comprehensive income attributable tononcontrolling interests- 12 -

1st Quarter
Current Fiscal Year
(3months to July 31, 2023)

471,489

1,180,451

6,490
4,090
10,581
482,070

5,950-4,8041,145
1,181,596

315,684864,637

166,386

316,959(3) Notes to Quarterly Consolidated Financial Statements(Notes regarding the going concern assumption)
Not applicable.
(Notes regarding change 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
During the fiscal year under review, GIGAPRIZE, GIGATEC, Soft Volatile, and LTM changed their fiscal year-end fromMarch 31 to April 30, and are the same as the consolidated fiscal year-end.
As a result of the change in the fiscal year-end, the consolidated subsidiary's fiscal year under review was four months forthe first quarter under review, and the impact of the change in the fiscal year-end is adjusted through the consolidated
statement of income.
The consolidated subsidiary recorded 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 thausand yen for the period from
April 1, 2023, to April 30, 2023.
(Segment Information)
Ⅰ Previous first quarter (May 1, 2022, to July 31, 2022)
Information on net sales and income (loss) by reportable segment(Thousands of yen)
Reportable Segments
5G
Infrastructure
SupportBusiness

5G lifestyleSupport BusinessCorporate andcreator 5G DX
Support Business

1,734,656

5,449,947

3,957,541-

11,142,144

593,576

27,54481,555-

702,676

2,328,232

5,477,492

4,039,096-

11,844,821

393,178

377,00296,450-3,966

862,664

Other(Note) 1

Total

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

11,142,144-702,676--702,676

11,142,144

1,963

864,627(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 -1,963 thousand yen include reclassifications of allowance for doubtful accounts.
3. Segment income (or loss) is reconciled to operating income in the quarterly consolidated statements of income.

- 13 -

Ⅱ Current First Quarter (May 1, 2023-July 31, 2023)
Information on net sales and income (loss) by reportable segment(Thousands of yen)
Reportable Segments
5G
Infrastructure
SupportBusiness

5G lifestyleSupport BusinessCorporate andcreator 5G DX
Support Business

1,868,099

7,572,473

4,599,489-

14,040,063

559,433

27,852

68,737-656,024

2,427,533

7,600,326

4,668,227-

14,696,087

438,451

1,034,418

197,427-5,381

1,664,916

Other(Note) 1

Total

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

14,040,063-656,024--656,024

14,040,063-228

1,664,687(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 -228 thousand yen include reclassifications of allowance for doubtful accounts.
3. Segment income (or loss) is reconciled to operating income in the quarterly consolidated statements of income.

- 14 -