Consolidated Financial Results for the Year Ended April 30, 2023
[Japanese GAAP]
June 9, 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
Scheduled date ofcommencement ofdividend payment

Scheduled date of ordinary
July 27, 2023
general meeting of shareholders

TEL 03-5459-0522
2023年７月13日

Scheduled date of filing ofJuly 28, 2023
annual securities report
Preparation of supplementarymaterial on financial results: Yes
Holding of financial results meeting:(Video streaming only)
Yes(Amounts are rounded down to the nearest million yen)
１． Consolidated Financial Results for the Fiscal Year Ending April 2023 (from May 1, 2022 to April 30, 2023)(1) Consolidated Operating Results(Percentages indicate year-on-year changes.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
FY2022/04
46,771
8.6
4,007
26.6
3,707
28.8
1,792
116.5
FY2022/4
43,075
3,165
2,878
827
(NOTE)
Millions
MillionComprehensive
FY2022/04
2,604
65.9％）FY2022/4
1,570(-%)
of yens of yenincomeNet income per share

Diluted net income
per share

Return on equity

Return on assets

Operating margin

Yen
Yen
%
%
%
FY2022/04
95.07
94.31
23.7
10.4
8.6
FY2022/4
41.86
41.65
10.6
8.2
7.3
(Reference) Equity in earnings
MillionMillionFY2022/04
FY2022/4△1△0
of affiliatess of yens of yen(NOTE)The "Accounting Standard for Recognition of Revenue" (ASBJ Statement No. 29, March 31, 2020) and other standards havebeen applied from the beginning of the previous fiscal year. The figures for the fiscal year ended April 2022 are based on the
figures after the adoption of the accounting standard and do not show the year-on-year change.
(2) Consolidated Financial Position
Total assets
Net Assets
Millions of yen
Millions of yen
FY2022/04
35,926
11,032
FY2022/4
35,05011,039Reference: Shareholders'MillionFY2022/04
8,242
FY2022/4
equitys of yen(3) Consolidated Cash FlowsNet cash provided byoperating activities
Millions of yen
FY2022/04
3,322
FY2022/4
2,333

Self-capitalization ratio
%
22.9
19.6
Million
6,881
s of yen

Net assets per shareYen
412.94366.01

Cash Flows from
Cash Flows from financing Cash and cash equivalents
investment activities
activities
at end of year
Millions of yen
Millions of yen
Millions of yen
18,305△644△2,110510
17,741△2,731

2. Dividends- 1 -Annual dividends
End of second End of the third
quarterquarter

End of First
Quarter

FY2022/4
FY2023/4
Fiscal year ended April
2024

Term end

Total dividend
Dividend
Dividend on
amountpayout ratio
equity(Total)(Consolidated) (Consolidated)
Millions of
Yen
%
%
yen
7.50
141
17.9
1.9
8.00
159
8.4
2.1

Total

Yen

Yen

Yen

Yen

-

0.00
0.00

-

7.50
8.00

-

-

-

-

-

(NOTE) At present, the dividend forecast for the fiscal year ending April 2024 is undecided.

- 2 -

-

3. Forecast of Consolidated Financial Results for the Year Ending April 2024 (May 1, 2023 to April 30, 2024)(Percentages indicate year-on-year changes.)
Net income
Net income per
Net sales
Operating income
Ordinary income attributable to owners
shareof the parent
Millions
Millions
Millions
Millions
%
%
%
%
Yen
of yenof yenof yenof yen
通期50,000
6.9
5,000
24.8
4,500
21.4
2,500
39.5
132.63(NOTE) Since we manage our operations on an annual basis, we have omitted the presentation of consolidated earnings forecasts forthe second quarter (cumulative). For more information, please refer to "(4) Future Outlook" of P.5"1. Business Results, etc.
※ Notes(1) Transfers in significant subsidiaries during the period (changes in specified subsidiaries resulting in transfers in the scope of
consolidation): None
New-(Company name),Excluded-(Company name)(2) Changes in accounting policies and changes or restatement of accounting estimates① Changes in accounting policies due to revisions to accounting standards, etc.: Yes② Changes in accounting policies other than①: None
③ Changes in accounting estimates: None
④ Restatement of revisions: None
(NOTE) For further information, please refer to "(5) Notes to Consolidated Financial Statements (Changes in Accounting
Policies)" of P13"3. Consolidated Financial Statements and Major Notes."(3) Number of shares outstanding (common shares)① Number of shares outstanding at the end of
the period (including treasury stock)

FY2023/04② Number of treasury stock at the end of theperiodFY2023/4③ Average number of shares outstanding

FY2023/04

Sh
23,414,000ar FY2022/4
es
Sh
3,453,741ar FY2022/4
es
Sh
18,849,604ar FY2022/4
es

Sh
23,414,000ares
Sh
4,613,969ar
es
Sh
19,775,876ar
es(Reference) Summary of Non-consolidated Financial Results
Non-consolidated results for the year ended April 30, 2023 (from May 1, 2022 to April 30, 2023)(1) Non-Consolidated Results of Operations(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%
FY2022/04
9,285
6.0
541
512
143
△4.3
△36.9
△43.6
FY2022/4
8,756
565
811
254
-

Net income per share

Diluted net income per
share

Yen
Yen
FY2022/04
7.61
7.55
FY2022/4
12.86
12.80
(NOTE) The "Accounting Standard for Recognition of Revenue" (ASBJ Statement No. 29, March 31, 2020) and other standards havebeen applied from the beginning of the previous fiscal year. The figures for the fiscal year ended April 2022 are based on the
figures after the adoption of the accounting standard, and the rate of change from the previous fiscal year is not shown.
(2) Non-Consolidated Financial Position
Total assets
Net Assets
Millions of yen
Millions of yen
FY2023/04
26,0687,439
FY2022/4
21,315
5,915
Reference: Shareholders'MillionFY2022/04
7,377
FY2022/4
equitys of yenSelf-capitalization ratio
%
28.3
27.6
Million
5,888
s of yen

Net assets per shareYen
369.61
313.21<Reasons for differences in non-consolidated results from the results of the previous fiscal year>
Due to a decrease in non-operating income as a result of a decrease in dividends from subsidiaries in the fiscal year under review,
there is a difference in actual ordinary income between the previous fiscal year and the fiscal year under review.
※ The financial results are outside the scope of audits by a certified public accountant or an auditing firm.

- 3 -※ 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 theCompany 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 "(4) Future
Outlook" of P.5"1. Business Results for the assumptions upon which the forecasts are based and for notes regarding the use of theforecasts.
(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.

- 4 -○Accompanying Materials – Contents
１． 1.Overview of Operating Results and Financial
Position ･････････････････････････････････････････････････････････････････････････････(1) Overview of Operating Results for the Fiscal Year under
Review ･････････････････････････････････････････････････････････････････(2) Summary of Financial Position for the Fiscal Year under
Review ･････････････････････････････････････････････････････････････････(3) Overview of Cash Flows for the Fiscal Year under
Review ･･････････････････････････････････････････････････････････････････････(4)
Forecast ･･････････････････････････････････････････････････････････････････････････････････････････････････････････････
2. Basic Approach to Selection of AccountingStandards ･･････････････････････････････････････････････････････････････････････････････
3. Consolidated Financial Statements And Supplementary
Notes ････････････････････････････････････････････････････････････････････････(1) Consolidated Balance
Sheets ･･････････････････････････････････････････････････････････････････････････････････････････････(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income ･･･････････････････････････････････････････
Consolidated Statements ofIncome ････････････････････････････････････････････････････････････････････････････････････
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) ･･････････････････････････････････････････････････････････････････････････････････(Changes in Accounting
Policies) ･･･････････････････････････････････････････････････････････････････････････････････････(Additional
Information) ･･････････････････････････････････････････････････････････････････････････････････････････････(Segment
Information) ････････････････････････････････････････････････････････････････････････････････････････････････(Per ShareInformation) ･･･････････････････････････････････････････････････････････････････････････････････････････････(Significant Subsequent
Events) ･････････････････････････････････････････････････････････････････････････････････････
････

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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.
In the overview of operating results, the official names and explanations of the names used 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

MVNO

Mobile Virtual Network Operator

Virtual mobile operator

MVNE

Mobile Virtual Network Enabler

MVNO support provider

Cloud

Cloud Computing

A generic term for a data center or server group in which a system for providing software, etc. tousers over a network and data is stored and operated

DX

Digital Transformation

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

web３

Web3(Web 3.0)

Concept of the next-generation distributed Internet, which enables users to exchange data andcontent directly with each other without going through a huge platform former

AI

Artificial Intelligence

Techniques that use computers to study or conduct human intellectual behavior

Metaverse

Metaverse

Virtual space that is used over the Internet

NFT

Non-Fungible Token

Technology that can clarify whether digital content is real, who is the producer, and who is theownerReportable segments for the fiscal year under review are as follows.
Reportable Segment

Main services
・Business support services for ISP

５G Infrastructure Support Business

５G Lifestyle Support BusinessCorporate and creator 5G DX support
business

・Business support (MVNE) services for MVNO
・Cloud services for corporate customers
・Mobile communications-related services for individuals・Internet connection-related services for individuals・Internet access services for apartment complexes
・Management service for company housing
・Internet marketing-related services
・Ad-Tech Services① Management policies and strategie
Based on our corporate philosophy of "spreading our Being The NET Frontier! (Internet and contributing to society," ourgroup provides Internet-related services mainly to corporations and individuals, with our strengths in accumulating
technological capabilities such as developing core Internet-related technologies and operating large-scale systems.
We are promoting corporate management with a view to the 10-year plan from 2021 to 2030. In line with this plan, we are
currently developing our business with an eye to the execution of the three-year medium-term management plan "SiLKVISION 2024," which ends in the fiscal year ending April 2024.
Under this SiLK VISION 2024, we aim to expand our business through technologies that grow exponentially as Platform
Maker for 5G/web3 age. While contributing to the realization of a sustainable society, we are concentrating our management
resources on the mobile revolution, lifestyle revolution, and production revolution domains, which we consider to be growthdomains worldwide. In this way, we are striving to achieve net sales of ¥50 billion and operating income of ¥5 billion for the
fiscal year ending April 2024.
In addition, with respect to PMI with Full Speed Co., Ltd. ("Full Speed"), which became our wholly owned subsidiary on
November 1, 2022 (the integration process after the conversion to a wholly owned subsidiary), we are currently working toredesign our full speed business model, optimize human resources, and efficiently consolidate back-office functions, while
promoting further DX and enhanced data-linkage of the entire Group.
And as we announced on March 31, 2023 in the "Notice of Capital and Business Alliance with Alps Alpine Co., Ltd.
Disposal of Treasury Stock through Third-Party Allotment, and Change of Major Shareholder", we will build a morecollaborative structure with the company as a partner to address 5G/web3/AI technologies.

- 6 -In LIVING TOWN Minato Mirai, a community town that proposes new lifestyles and lifestyles in 5G/web3 era, which weare developing, we have already begun technical collaboration in 5G Homestyle field, including the launch of verticallyintegrated joint demonstration tests utilizing 5G Communication Device Evaluation Kit for public and local 5G provided by
Alps Alpine Co., Ltd.
② Business environment
In the business environment surrounding our group, despite signs of a gradual pick-up against the backdrop of relaxationof restrictions on socioeconomic activities due to a new type of coronavirus infectious disease, the outlook remains uncertain
due to various concerns about the global situation, such as soaring natural resource and energy prices and rising prices, aswell as the continued impact 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 need for Internet services due to the normalization of telework and the expansion of cloud usage, rich contentssuch as online videos and games at home, and increased use of SNS, the number of users of Internet services via mobile line
networks has also increased, and the issues facing us are improving the quality and speed of communications and responding
to cyber-security, mainly due to the increase in communication traffic.
On the other hand, in the market for Internet services for apartment buildings, internet facilities are being standardized for
new properties, and existing properties are also expected to remain firm as demand for switching to high-speed, stableinternet lines is rising in line with the diversifying needs and lifestyles of tenants.
In the Internet marketing market, despite a recovery trend from stagnant demand for services attributable to the expansionof the new type of coronavirus infectious disease, conditions remained severe due to changes in the service provisionenvironment with an awareness of personal information protection, the emergence of new service fields, and intensifiedcompetition accompanying an increase in the number of business entrants.
③ Our group's achievements
Results by 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 online-format conferences and classes associated with 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 and thedeployment of these plans under subbrands continue to affect the growth of proprietary MVNO service providers, but thegrowth of the mobile market as a whole continues and is expected to expand in the future.
Against this backdrop, MVNE's support business for MVNO expanded and the cost control of the support business for
ISP was successful.
As a result, the segment recorded sales of 9,489,228,000 yen (up 5.1% year on year) and segment profit of 1,378,392,000
yen (up 21.6% 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 steadily
expanding as the introduction of high-speed broadband environments aimed at improving the asset value of buildings andoccupancy rates has progressed, and the use of telework, online classes, video content viewing, and other services has beenrecognized as standard. As a result, the market size of these services is expected to steadily expand in the future.
Furthermore, as part of our efforts to realize "Smart Town" (a town where the convenience of urban infrastructures isenhanced through the use of digital technologies), on April 29, 2023, we pre-opened LIVING TOWN Minato Mirai, acommunity town that proposes new lifestyles and lifestyles in 5G/web3 era using advanced technologies.
In 5G Lifestyle (mobile communications services for individuals and Internet-related services), we provide smartphonedevices with an eye to the arrival of 5G/web3/ metaverse era in Tone Mobile, a smartphone service that utilizes the
proprietary technologies offered by our group. We are also working to resolve a variety of social issues, such as TONE
Family, a watch-and-watch service for families equipped with TONE Anshin AI that monitors families in AI, as a uniqueservice using smartphones. In TONE Care, a next-generation on-line health consulting service with a view to solving thesocial issue of Internet dependency, which is worldwide in danger, we have begun providing specialist counseling on"overuse smartphones.” In order to increase the number of subscribers to NTT DOCOMO, INC.'s store network, we
implemented a marketing strategy centered on performance-based advertising and invested resources in field marketing with- 7 -the aim of strengthening sales promotions at each stores.

- 8 -As a result, the segment recorded sales of 23,261,191,000 yen (up 7.0% year on year) and segment profit of
2,039,485,000 yen (up 41.1% year on year).
(3) Corporate and creator 5G DX support businessIn the Internet marketing and ad technology services offered by Full Speed, despite a gradual recovery from the sluggish
demand for advertising due to the impact of the new coronavirus infectious disease, the market conditions have not returned
to prior to the Corona crisis. In this environment, we worked to promote Internet marketing-related DX by leveraging ouraccumulated Internet marketing expertise.
We are also moving forward with initiatives for new businesses for medium-term growth. We have strengthened our
support for the expansion of creator economies (economic zones in which creators make monetization through their own
skills) through StandAlone, a platform for creators 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 for creators.
As a result, the segment recorded sales of 23,261,191,000 yen (up 9.5% year on year) and segment profit of
2,039,485,000 yen (up 0.1% year on year).
As a result of the above, net sales were 46,771,516,000 yen (up 8.6% year on year), operating income was 4,007,556,000
yen (up 26.6% year on year), ordinary income was 3,707,329,000 yen (up 28.8% year on year), and profit attributable toowners of parent was 1,792,049,000 yen (up 116.5% year on year).
Net Sales and Segment Income (Loss) by Segment(Thousands of yen)Classification

Net sales

Segment profit (loss) (△)

５G Infrastructure Support Business

9,489,228

1,378,392

５G Lifestyle Support Business

23,261,191

2,039,485

Corporate and creator 5G DX support business

16,849,059

604,414-△16,540△2,827,962

1,803

46,771,516

4,007,556

Other
Adjusted amount
合計

Comparison of Business Results for the Current Fiscal
Year and the Previous Fiscal Year
April 2022 (A)(May 1, 2021-April 30,
2022)（単位：千円）Fiscal year ended April 2023
(B)
Difference (B(May 1, 2022-April 30,
A)
2023)

Changeonprevious
fiscaly e a r(%)

Net sales

43,075,732

46,771,516

3,695,783

8.6

Gross profit

12,409,538

13,327,292

917,753

7.4

Selling and general administrative expenses

9,244,323

9,319,736

75,4130.8

Operating income

3,165,215

4,007,556

842,340

26.6

Ordinary income

2,878,922

3,707,329

828,406

28.8

827,851

1,792,049

964,198

116.5

Net income attributable to owners of theparent(2) Overview of Financial Position for the Fiscal Year under Review(Assets)
Total assets at the end of the fiscal year under review increased 876,334,000 yen from the end of the previous fiscal year to
35,926,487,000 yen.

- 9 -This was mainly due to increases of 564,513,000 yen in cash and deposits, 330,920,000 yen in accounts receivable-trade,
259,472 thousand yen in lease receivables and investment assets, 216,107 thousand yen in merchandise and finished goods,
and 320,167 thousand yen in deferred tax assets, despite a decrease of 462,951,000 yen in advance payment included in othercurrent assets and 315,184,000 yen in lease assets (tangible).

- 10 -

(Liabilities)
Total liabilities at the end of the fiscal year under review increased 883,189,000 yen from the end of the previous fiscal year
to 24,894,134,000 yen.
This was mainly due to an increase in current portion of long-term loans payable of 542,018,000 yen and long-term loans
payable of 1,072,022,000 yen, despite a decrease in bonds payable of ¥300,000,000 and lease obligations (non-current) of
487,548,000 yen.
(Net assets)
The following is an explanation of total net assets for the current fiscal year. Retained earnings increased by 1,651,049,000
yen. Treasury stock decreased by 1,092,193,000 yen due to the disposal of treasury stock by third-party allotment to Alps
Alpine Electronics, Inc. Ltd. and a decrease of 1,405,264,000 yen in capital surplus and 1,392,733,000 yen in noncontrollinginterest due to FullSpeed Corp. becoming a wholly owned subsidiary of the Company, resulting in a decrease of 6,854,000 yen
from the previous fiscal year-end to 11,032,352,000 yen. As a result, the equity ratio was 22.9%.
(3) Overview of cash flows for the fiscal year under review
The balance of cash and cash equivalents (hereinafter referred to as "cash") at the end of the fiscal year under review was
18,305,769,000 yen, an increase of 564,513,000 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 3,322,201,000 yen(from 2,333,843,000 yen in the previous fiscal
year). This was mainly due to income before income taxes and minority interests of 3,442,606,000 yen and depreciation andamortization of 890,517,000 yen, despite income taxes paid of 1,304,354,000 yen.
(Cash flows from investing activities)
Net cash used in investing activities was 644,624,000 yen (compared with 510,690,000 yen in the previous fiscal year). Thiswas mainly due to the purchase of property, plant and equipment of 558,484,000 yen and the purchase of intangible assets of
110,614,000 yen.
(Cash flows from financing avtivities)
Net cash used in financing activities was 2,110,714,000 yen (a decrease of 2,731,200,000 yen in the previous fiscal year).
This was mainly due to repayments of long-term loans payable of 4,185,960,000 yen and purchase of shares of subsidiaries not
resulting in change in scope of consolidation of 3,932,017,000 yen, despite proceeds from long-term loans payable of
5,800,000,000 yen.
(4)Future Outlook
We have positioned SiLK VISION 2024, our medium-term management plan that began in the fiscal year ending April
2022, as the first of our 10-year plan. As a Platform Maker in 5G/web3 age, we aim to expand our business throughtechnologies that grow exponentially in Exponential Technology era. While contributing to the realization of a sustainable
society, we will concentrate our management resources on the mobile revolution, lifestyle revolution, and production
revolution domains, which we consider to be growth domains worldwide. In this way, we will strive to achieve net sales of
50,000,000,000 yen and operating income of 5,000,000,000 yen for the fiscal year ending April 2024.
In the fiscal year ending April 2024, we plan to invest management resources in strategic investments and DX and new
business fields aimed at growing our businesses in three revolutionary domains. We also plan to conduct business operations ina balanced manner with a view to the final year of SiLK VISION 2024.
As a result of the above, the forecasts for the fiscal year ending April 2024 were for net sales of 50,000,000,000 yen,operating income of 5,000,000,000 yen, ordinary income of 4,500,000,000 yen, and profit attributable to owners of parent of
2,500,000,000 yen.
※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.

- 11 -

3. Consolidated Financial Statements and Major Notes(1)Consolidated Balance Sheet(Thousands of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal YearAs of April 30, 2022
As of April 30, 2023
AssetsCurrent 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
Other
Allowance for doubtful accounts
Total current assets
Fixed Assets
Property, plant, and equipment
Buildings and structures, net
Land
Lease assets, net
Other, net
Net property, plant and equipment
Intangible fixed assets
Goodwill
SoftwareDevelopment cost of software in progress
Other
Total intangible assets
Investments and other assets
Increase in loss on valuation of nvestment
securities
Long-term loans receivable
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Investments and other assets
Total fixed assets
資産合計- 12 -

17,741,256
32,405
7,861,788
37,610135,452
122,591
165,240
1,342,516
461,290
587,189
1,416,616△83,961
29,819,998

18,305,769
65,912
8,192,709
29,446394,925
338,698
251,623
1,248,072
468,303
680,089
731,764△66,882
30,640,431

626,959
296,105
1,416,469
143,1442,482,678

582,223
296,105
1,101,285
496,2112,475,825

74,587
277,590
93,28917,152
462,620

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

1,143,316

949,050

1,501,384
544,072
529,375
301,819△1,735,113
2,284,855
5,230,154
35,050,152

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

(Thousands of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal YearAs of April 30, 2022
As of April 30, 2023
Liabilities
Current liabilities
Negotiable instruments payable and accounts
payableShort-term Debt
Current portion of bonds payable
Current portion of long-term debt
Lease obligations
Accounts payable-other
Income tax payable
Contractual liabilities
Accrued bonuses
Other provisions
Other
Total current liabilities
Long-term liabilities
Corporate bondLong-term Debt
Lease obligations
Reserve for retirement benefits for directors
Obligations for retirement pay
OtherTotal long-term liabilities
Total liabilities
Net assets
Shareholders' equity
Common stock
Capital Surplus
利益剰余金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- 13 -

342,066

256,361

300,000
200,000
3,950,944
820,320
5,846,296
725,668
327,104
191,756
77,2201,020,988
13,802,366

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

300,000
8,012,260
1,560,982
57,487
48,413
229,435
10,208,578
24,010,945

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

4,514,185
3,050,292
3,635,697△4,343,431
6,856,743

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

27,985△3,72824,25650,755780
4,106,671
11,039,207
35,050,152

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

(2)Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Profit and Loss Statement)(Thousands of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(May 1, 2021
(May 1, 2022
To April 30, 2022)
To April 30, 2023)
Net sales
Cost of goods sold
Gross profit
Selling and general administrative expenses
Operating income
Non-operating income
Interest and dividend income
Commission received
Profit on currency exchange
Penalty income
Other
Total non-operating income
Non-operating expenses
Interest expense
Equity in losses of affiliates
Commissions paid
Litigation charge
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on liquidation of affiliates
Reversal of provision for loss on indemnification ofdamages
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on disposal of fixed assets
Write-down of investment securities
Loss on disposal of business
Office relocation expenses
Cost of disposal of telecommunications facilities
Total extraordinary loss
Income before income taxes and minority interests
Income taxes
The Deferred Corporation Tax, etc.
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent- 14 -

43,075,732
30,666,193
12,409,538
9,244,323
3,165,215

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

293
5,485
13,72015,54635,046

742
3,307
5,742
11,015
11,15031,959103,669
118
194,201
23,349321,3392,878,922

113,717
1,922
137,070
39,20740,267332,186
3,707,329

18,3992,491--

21,31520,89021,31597,052
13,318105,499
312
12,311
228,494
2,671,319
1,151,195△151,337
999,858
1,671,461
843,609827,851

36,8981,357
212,452
35,330286,038
3,442,606
1,187,318△325,461
861,856
2,580,749
788,699
1,792,049

Consolidated Statements of Comprehensive Income（単位：千円）Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(May 1, 2021
(May 1, 2022
To April 30, 2022)
To April 30, 2023)
Net income
Other comprehensive income
Unrealized gain on available-for-sale securities
Foreign Currency Translation Adjustments
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive profit attributable to owners of theparentComprehensive income attributable to noncontrollinginterests- 15 -

1,671,461

2,580,749△91,489△9,617△101,107
1,570,354

26,242△2,34723,8942,604,644

730,851

1,815,519

839,502789,124

(3)Consolidated Statement of Changes in Net Assets
Previous fiscal year (May 1, 2021, to April 30, 2022)(Thousands of yen)
Shareholders' equity
Common stock
Opening balance

利益剰余金

Capital Surplus

4,514,185

3,121,858

Cumulative effect of changes
in accounting policies
Balance at the beginning of theperiod reflecting changes inaccounting policies

Treasury stock

2,811,389

Total owners' equity△1,854,484

143,399

4,514,185

3,121,858

2,954,789

8,592,948
143,399△1,854,484

8,736,348

Change during the year
Dividend of surplus
Net income attributable toowners of the parent△146,942△146,942

827,851

827,851△2,497,445

Purchase of treasury stock
Change in treasury shares ofparent arising fromtransactions with noncontrolling interests△65,354

Restricted stock awards△6,211△2,497,445△65,354

8,498

2,286

Net change in items otherthan shareholders' equity-△71,566

680,908△2,488,947△1,879,604

4,514,185

3,050,292

3,635,697△4,343,431

6,856,743

Total changes in current termEnding Balance

Accumulated other comprehensive income
Total other
Unrealized gain
Foreign Currency accumulated
on available-forTranslation
comprehensive
sale securities
Adjustments
incomeOpening balance

119,463

1,792

121,256

NonStock purchase Stock acquisition controlling
Total net assets
warrants
rightshareholders’equity-780

3,433,766

Cumulative effect of changes
in accounting policies
Balance at the beginning of theperiod reflecting changes inaccounting policies

12,148,751
143,399

119,463

1,792

121,256-780

3,433,766

12,292,151

Change during the year
△146,942

Dividend of surplus
Net income attributable toowners of the parent

827,851

Purchase of treasury stock△2,497,445

Change in treasury shares ofparent arising fromtransactions with noncontrolling interests△65,354

Restricted stock awards

2,286

Net change in items otherthan shareholders' equity△91,478△5,521△96,999

50,755-672,905

626,660

Total changes in current term

△91,478△5,521△96,999

50,755-672,905△1,252,944

27,985△3,72824,25650,755780

4,106,671

11,039,207

当期末残高- 16 -

Current fiscal year (from May 1, 2022 to April 30, 2023)(Thousands of yen)
Shareholders' equity
Common stock
Opening balance

利益剰余金

Capital Surplus

4,514,185

3,050,292

3,635,697

Treasury stock

Total owners' equity△4,343,431

6,856,743

Change during the year
Dividend of surplus△141,000△141,000

Net income attributable toowners of the parent

1,792,049

1,792,049△74△74

1,073,158

1,470,600

Purchase of treasury stock
Disposal of treasury stock

397,441

Change in treasury shares ofparent arising fromtransactions with noncontrolling interests△1,800,406△1,800,406△2,299Restricted stock awards

19,10916,809Net change in items otherthan shareholders' equity-△1,405,264

1,651,049

1,092,193

1,337,9784,514,185

1,645,027

5,286,747△3,251,237

8,194,722

Total changes in current term
当期末残高

Accumulated other comprehensive income
Total other
Unrealized gain
Foreign Currency accumulated
on available-forTranslation
comprehensive
sale securities
Adjustments
incomeOpening balance

27,985△3,72824,256

Stock purchase Stock acquisition
warrants
right

50,755780

Non-controllingshareholders'
Total net assets
equity4,106,671

11,039,207

Change during the year
Dividend of surplus△141,000

Net income attributable toowners of the 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 change in items otherthan shareholders' equity

26,242△2,772

23,46924,430-△1,392,733△1,344,833

Total changes in current term

26,242△2,772

23,46924,430-△1,392,733△6,854Ending Balance

54,227△6,50047,72675,185780

2,713,938

11,032,352- 17 -

(4)Consolidated Cash Flow Statement(Thousands of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(May 1, 2021
(May 1, 2022
To April 30, 2022)
To April 30, 2023)
Net cash provided by operating activities
Income before income taxes and minority interests
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts(△: decrease)
Interest and dividend income
Interest paid and interest on corporate bonds
Foreign exchange gains (losses) (gains on △)Equity in earnings (△) of affiliates
Unrealized gains (losses) on available-for-salesecurities. (Gain on △)Decrease (increase) in notes and accounts receivabletrade (increase in △)Decrease (increase) in inventories (increase in △)Increase (decrease) in accounts receivable-other(increased by △)Decrease (△ increased) in other current assets
Increase (decrease) in accounts payable-other(decrease in △)Decrease (△) in other current liabilities
Other
SubtotalInterest 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
Collection of fixed leasehold deposits
Other
Cash Flows from investment activities
Cash Flows from financing activities
Net increase (decrease) in short-term borrowings (△)
Proceeds from long-term debt
Repayment of long-term debt
Redemption of bonds
Proceeds from sale of treasury stock
Purchase of treasury stock
Dividends paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Net repayment of lease obligations
Other
Cash Flows from financing activities
Translation adjustments on cash and Cash Equivalents
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS
The beginning balances of cash and Cash Equivalents
The ending balances of cash and Cash Equivalents.

- 18 -

2,671,319
1,022,136
97,05240,1833,442,606
890,51736,89837,437△60,882△16,843△293
103,669△18,276
118△742
113,717
83
1,922

119,883

234,101△1,225,141△364,427△111,543△208,045

1,257,696△42,911△950,118

430,911

112,827

98,889183,347
396,358
3,638,337
289△102,202△1,461,646
259,065
2,333,843△84,869
64,2094,633,458
744△114,072△1,304,354
106,425
3,322,201△125,646△135,773
45,751
726,359
510,690△558,484△110,614
59,615△35,140△644,624△100,000
6,000,000△3,421,117△1,400,000△2,497,445△146,360

5,800,000△4,185,960△200,000
1,470,600△74△140,878△148,689△3,932,017△937,278△80,309△2,731,200
8,360△870,005△52,378△2,110,714△2,350121,694564,513

17,619,562
17,741,256

17,741,256
18,305,769

(5)Notes fo consolidated financial statements(Notes on the Going Concern Assumption)
Not applicable.
(Changes in accounting policies)(Application of Implementation Guidance on Accounting Standard for Calculation of Market Value)
The "Implementation Guidance on Accounting Standard for Calculation of Market Value" (ASBJ Guidance No. 31, June17, 2021; hereinafter referred to as the "Guidance on Accounting Standard for Market Value Calculation") was applied fromthe beginning of the consolidated fiscal year under review, and the new accounting policy stipulated by the Implementation
Guidance on Accounting Standard for Market Value Calculation shall be applied in accordance with the transitional
treatment stipulated in Article 27-2 of the Guidance on Accounting Standard for Market Value Calculation in the future.
There is no impact on the consolidated financial statements.
(Additional Information)(Restricted Stock Awards)
Full Speed Co., Ltd., a consolidated subsidiary of the Company, has introduced a restricted stock compensation system forthe directors (excluding outside directors) of Full Speed Co., Ltd. by a resolution of an extraordinary general meeting ofshareholders held on January 19, 2023. The purpose of this system is to further strengthen our efforts to enhance thecorporate value of the Group and to further promote the sharing of value with our shareholders.
On February 15, 2023, we disposed of 10,100 shares of our treasury stock (¥9507000) as an allocation of restricted stock
awards pursuant to the resolution of our Board of Directors on January 19, 2023.
(Segment Information)[Segment Information]
１． The outline of any Reporting Segment
The reportable segments of the Group are the constituent units of the Group for which separate financial
information is available and which are subject to periodic review by the Board of Directors for the purpose of
deciding the allocation of management resources and evaluating business performance.
Our group develops comprehensive domestic and overseas strategies for the services we handle and conducts
business activities. Accordingly, our group consists of segments based on services. We have three reportablesegments: 5G Infrastructure Support Business, 5G Lifestyle Support Business, and the Corporate and Creator 5G DX
Support Business.
5G Infrastructure Support Business provides business support services for ISP, business support (MVNE) services
for MVNO, 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. The Corporate and Creator 5G DX Support
Buprovides Internet marketing-related services and ad technology-related services.
In addition, from the current consolidated fiscal year, some services that had been classified as "5G lifestylesupport business" have been reclassified as "Corporate and creator 5G DX support business" in view of the actual
status of services due to the increase in their quantitative importance. Segment information for the previous fiscal
year is prepared and disclosed based on the classification for the current fiscal year.
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 (May 1, 2021, to April 30, 2022)（単位：千円）Reportable Segments
５G Lifestyle
Infrastructure
Support Business Support BusinessCorporate andcreator 5G DX
support business

Others

合計(NOTE)1

Net sales
Sales to customers

6,497,906

21,607,028

14,970,797-

43,075,732

Intersegment sales

2,534,870

127,607417,111-3,079,588

Total

9,032,776

21,734,636

15,387,909-

46,155,321

Segment profit (loss) (△)

1,133,878

1,445,911

603,794△15,2223,168,361

Segment assets

3,222,307

10,906,520

3,605,377

440,856

18,175,061（単位：千円）Consolidated
Financial
Adjusted amountStatements(NOTE)2
Amount recorded(NOTE)3
Net sales
Sales to customers-

43,075,732

Intersegment sales△3,079,588

-

Total

△3,079,588

43,075,732△3,145

3,165,215

16,875,091

35,050,152

Segment profit (loss) (△)
Segment assets(NOTE) 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 (△) ¥3145000 include reclassifications of allowance for doubtful accounts.
(2)Adjustments to segment assets of ¥16875091000 include cash and deposits of ¥17741256000 and △ of consolidation
adjustments of ¥866165000.
3. Segment income (△) is reconciled to operating income in the consolidated financial statements.

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Current fiscal year (from May 1, 2022 to April 30, 2023)（単位：千円）Reportable Segments
５G Infrastructure ５G LifestyleSupport Business Support BusinessCorporate andcreator 5G DX
support business

Others(NOTE)1

合計

Net sales
Sales to customers

7,156,127

23,117,078

16,498,310-

46,771,516

Intersegment sales

2,333,101

144,113350,748-

2,827,962

Total

9,489,228

23,261,191

16,849,059-

49,599,479

Segment profit (loss) (△)

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（単位：千円）Consolidated
Financial
Adjusted amountStatements(NOTE)2
Amount recorded(NOTE)3
Net sales
Sales to customers-

46,771,516

Intersegment sales△2,827,962

-

Total

△2,827,962

46,771,516

1,803

4,007,556

17,460,216

35,926,487

Segment profit (loss) (△)
Segment assets(NOTE) 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 ¥1803000 include reclassifications of allowance for doubtful accounts.
(2)Adjustments to segment assets of ¥17460216000 include cash and deposits of ¥18305769000 and △ of consolidation
adjustments of ¥845553000.
3. Segment income (△) is reconciled to operating income in the consolidated financial statements.

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(Per Share Information)
Previous Consolidated Fiscal Year
(May 1, 2022-April 30, 2023)
To April 30, 2022)

Current Consolidated Fiscal Year
(May 1, 2022
To April 30, 2022)

Net assets per share

366.01 Yen

412.94 Yen

Net income per share

41.86 Yen

95.07 Yen

Diluted net income per share

41.65 Yen

94.31 Yen(NOTE)The basis for calculating net income per share and diluted net income per share is as follows.
Previous Consolidated Fiscal Year
(May 1, 2021
To April 30, 2022)

Current Consolidated Fiscal Year
(May 1, 2022
To April 30, 2023)

Net income per share
Net income attributable to owners of theparent827,851

1,792,049--

827,851

1,792,049

19,775,876

18,849,604

101,477

152,059(Thousands of yen)Amount not attributable to commonshareholders
Profit attributable to owners ofparent related to common stock (thousandyen)
Average number of shares of common stockduring the period (shares)

Diluted net income per share
Increase in common stock (shares)(Stock acquisition rights (shares))
Subsequent grants of restricted stock awards(shares)
Explanation of residual stock not included in
calculation of diluted net income per share due
to lack of dilutive potential(-)（2,908）（101,477）（149,150）

Stock options under the treasury stockacquisition method resolved at the Boardof Directors meeting on February 18,
2015 (number of shares: 78,000)(Significant subsequent events)
Not applicable.

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