UNOFFICIAL TRANSLATION
The formal official document is in Japanese.

Summary of Consolidated Financial Results
for the Fiscal Year ended September 30, 2020 (Japanese Accounting Standards)
November 4, 2020
Listed Company Name: MTI Ltd.
Listing Exchanges: Tokyo Stock Exchange
Securities Code:9438
URL: https://www.mti.co.jp
Representative:
Toshihiro Maeta, President and Chief Executive Officer
Contact:
Hiroshi Matsumoto, Senior managing Director
Phone: +81-3-5333-6323
Scheduled date of annual meeting of shareholders: December 19, 2020
Scheduled date to submit the Securities Report (Yuka Shoken Houkokusho): December 21, 2020
Scheduled date of dividend payment: December 21, 2020
Supplementary documents for financial results: Yes
Financial results briefing: Yes (for securities analysts and institutional investors)(Figures less than one millions of yen are omitted)

1. Consolidated financial results for the year ended September 30, 2020
(October 1, 2019 – September 30, 2020)(1) Consolidated operating results(Percentages represent year-on-year changes)
Net sales

Operating income

Millions of yen

For the year ended September 30, 2020
For the year ended September 30, 2019
(Note) Comprehensive income:% Millions of yen

Profit attributable toowners of parent

Ordinary income% Millions of yen% Millions of yen

26,082 (3.8)
2,507 (15.3)
2,082 (33.5)
27,112 (6.8)
2,959 (8.0)
3,134
0.6
Year ended September 30, 2020: 121 million yen, (92.5%)
Year months ended September 30, 2019: 1,611 million yen, 10.0%
Net income
Net income
Return on
Return on Assets
per shareper share/diluted
EquityNet income％％

For the year ended September 30, 2020
9.28
9.27
2.6
7.2
For the year ended September 30, 2019
27.59
27.56
8.0
12.2
(Reference) Equity in earnings (losses) of affiliates: Year ended September 30 2020: (431) millions of yen
Year ended September 30 2019: 112 millions of yen

9.6
10.9

Yen

％

%

506 (66.4)
1,508 (7.4)

Yen(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Year ended September 30, 2020
Year ended September 30, 2019
(Reference) Shareholders’ equity:

Equity ratio

Millions of yen

30,54721,51027,47921,794
Year ended September 30, 2020: 19,166 millions of yen
Year ended September 30, 2019: 19,866 millions of yen

Net assets per share
%

Yen

62.7
72.3

350.83363.53(3) Consolidated cash flows
Net cash providedby (used in)operating activities

Net cash providedby (used in)investing activities

Net cash providedby(used in)financing
activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

3,292
4,007

(4,807)(3,613)

2,449
1,532

13,354
12,421For the year ended September 30, 2020
For the year ended September 30, 2019

Cash and cash
equivalent

2. Dividends
Dividend per share
End offirstquarter

For the year ended September 30, 2019
For the year ended September 30, 2020
For the year ending September 30, 2021
(forecast)End ofsecondperiodEnd ofthird
quarter

Yen

Yen

Yen

Yen

Yen

–
–

8.00
8.00

–
–

8.00
8.00

16.00
16.00

–

8.00

–

8.00

16.00

Year end

AnnualAmount ofDividends on
Dividend ratio
dividends paid
equity(Consolidated)(Total)(Consolidated)

875
876

%

%

58.0
172.5
51.4
〜67.2

4.6
4.5

3. Forecast for consolidated financial results for the fiscal year ending September 30, 2021
(October 1, 2020 – September 30, 2021)
Net sales

Operating income

Millions of yen%

12,750〜13,250
25,500〜26,500

(1.5)
〜2.3
(2.2)
〜1.6

For the first half
Full year(Percentages represent year-on-year changes)
Profit attributable to
Net income
Ordinary income
owners of parent
per share

Millions of yen

%

1,000
(30.9)〜1,200 〜(17.1)
2,100(16.2)〜2,500 〜(0.3)

Millions ofyen%Millions of yen

1,000 (23.7)〜1,200 〜(8.4)
2,100
0.8
〜2,500 〜20.0

%

Yen

650
(47.8)〜850 〜(31.8)
1,300
156.4
〜1,700 〜235.3

11.90〜15.5623.80〜31.12* Notes(1) Important changes of subsidiaries during the term (changes in specified subsidiaries resulting in change in scope of
consolidation): Not applicable
New: –
Exception: –(2) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies due to the modification in accounting methods:(ii) Changes in accounting policies other than (i):(iii) Changes in accounting estimates:(iv) Restatement:

Not applicableNot applicableNot applicableNot applicable(3) Number of outstanding shares (common shares)(i) Number of outstanding shares at the end of period (including treasury shares):9/20: 61,144,600 shares
9/19: 61,139,000 shares(ii) Number of treasury shares at the end of period
9/20: 6,511,616 shares
9/19: 6,489,239 shares(iii) Average number of shares during the period
9/20: 54,641,936 shares
9/19: 54,668,861 shares(Reference) Summary of financial results
1. Nonconsolidated financial results for the year ended September 30, 2020
(From October 1, 2019 - September 30, 2020)(Percentages are shown as year-on-year changes)(1) Nonconsolidated operating results
Net sales

Operating income

Ordinary income

Net income

Millions of yen％

Millions of yen％

Millions of yen％

Millions of yen％

20,858

(4.4)

3,057

0.6

3,461

24.4

1,010

-

21,810(12.3)

3,039(11.7)

2,782(20.6)

11(99.1)For the year ended
September 30, 2020
For the year ended
September 30, 2019

Net income pershare
For the year ended
September 30, 2020
For the year ended
September 30, 2019

Fully diluted net
income per share
Yen

Yen

18.43

18.42

0.21

0.21

(2) Nonconsolidated financial position
Total assets

Equity ratio

Net assets per share

Millions of yen％

Yen

24,81016,61566.1

299.23

21,541

16,75176.8

301.7816,401 millions of yen

As of September 30, 2019:

For the year ended
September 30, 2020
For the year ended
September 30, 2019
(Reference) Shareholders’ equity
As of September 30, 2020:

Net assets

Millions of yen

16,539 millions of yen* Status of review

Financial results is out of audit.

* Cautionary statement with respect to forward-looking statements

The forward-looking statements included in this material are based on the Company’s judgments, assumptions, and convictions based on information
available to the Company at the time of publication of this document and may differ materially from actual results for a range of factors, including
conditions of Japanese and overseas economies, changes in the situation of operations in Japan and overseas, and uncertainties and potential risks
inherent in forward-looking statements. The risks and uncertainties include unforeseeable effects of future events. For the assumptions underlying theforecasts and other notice on the use of earnings forecasts, please refer to “(4) Future outlook” on page 4 in the accompanying material.
The Company will hold a briefing on earnings chiefly for securities analysts and institutional investors on Thursday, November 5, 2020. A video of thebriefing and a document to be used at the briefing will be posted on the Company’s website as soon as the briefing ends.

Accompanying materials – Contents
1.

Overview of operating results.....……………….…………………………..……………….

2(1)

Overview of operating results for the current fiscal year…………………….……….

2(2)

Overview of financial position for the current fiscal year…………………………..…

4(3)

Overview of cash flow for the current fiscal year….…………………………..………

4(4)

Future outlook………………………………………………………………………...

4

2.

Basic policy for the selection of accounting standard…………….…………………………

6

3.

Consolidated financial statements and important notes………….…………………………

7(1)

Consolidated balance sheet…………………………………………………………...

7(2)

Consolidated statement of income and comprehensive income……………………...

9(3)

Consolidated statement of changes in shareholders’ equity………………………….

11

(4)

Consolidated statement of cash flows………………………………………………...

13

―1―

1. Overview of operating results(1) Overview of operating results for the current fiscal year
In the Group’s business environment during the current fiscal year, subscriptions from smartphone-based paying
subscribers remained sluggish, mainly reflecting the requirement for large mobile phone carriers to separate
communication charges and mobile device prices and the reduced business hours of mobile phone retailers acrossJapan in an effort to prevent the spread of the novel coronavirus (COVID-19). Meanwhile, demand for digitalcontent increased as part of the stay-at-home order issued to prevent the spread of COVID-19 infection. Sales inthe business of providing original comics to digital comic distributors steadily increased thanks to the stay-at-homeorder.
Net sales stood at ¥26,082 million (down 3.8% year on year) as a result of a fall in the total number of paying
subscribers from the same period in the previous year to 4.59 million (down 0.20 million from September 30, 2019),
including the number of paying subscribers to smartphones of 3.76 million (down 0.16 million from September 30,2019), as of September 30, 2020, despite the effect of receiving the transfer of businesses such as the musico musicstreaming website and sales growth in the distribution of original comics.
Gross profit decreased 5.0% year on year, to ¥18,951 million, mainly due to a fall in net sales.
Operating income came to ¥2,507 million (down 15.3% year on year) chiefly due to the decrease in gross profit,
which more than offset the effect of receiving the transfer of businesses such as the musico music streaming website,and substantial reduction of advertising expenses from the same period of the previous fiscal year in particular
thanks to the sluggish subscription by smartphone-based paying subscribers.
Ordinary income decreased significantly by 33.5% year on year, to ¥2,082 million, reflecting a fall in operating
income and ¥431 million as a share of loss of entities accounted for using the equity method (as a result primarilyof one-time amortization of goodwill due to impairment of Authlete, Inc., an equity-method affiliate), compared to¥112 million as a share of profit of entities accounted for using the equity method in the previous fiscal year.
Profit attributable to owners of parent decreased sharply by 66.4% year on year, to ¥506 million, chiefly due toa fall in ordinary income and an extraordinary loss of ¥1,678 million largely owing to an impairment loss, despite
the posting of an extraordinary income of ¥809 million mainly resulting from gain on sales of investment securities
and gain on step acquisitions of Crowd Cast, Ltd. as a consolidated subsidiary.
The impact of the COVID-19 pandemic on the consolidated financial results for the period under review was
negligible.
Consolidated operating results(Period from October 1, 2019 to September 30, 2020)
Fiscal year ended
September 30, 2020

Fiscal year ended
September 30, 2019

ChangeAmountPercentage

Millions of yen

Millions of yen

Millions of yen%

26,082

27,112(1,030)

(3.8)

7,130

7,157

(26)

(0.4)

Gross profit

18,951

19,955(1,003)

(5.0)

SG&A

16,444

16,996

(551)

(3.2)

Operating income

2,507

2,959

(451)

(15.3)

Ordinary income
Profit attributable to
Owners of parent

2,082

3,134

(1,051)(33.5)

506

1,508(1,001)(66.4)Net sales
Cost of sales―2―Breakdown of SG&A
(Period from October 1, 2019 to September 30, 2020)
Fiscal year ended
September 30, 2020

ChangeFiscal year ended
September 30, 2019

AmountPercentage

Millions of yen

Millions of yen

Millions of yen%

16,444

16,996

(551)

(3.2)

Advertising expenses

1,174

2,404

(1,230)(51.2)

Personnel expenses

6,395

6,147

+248

+4.0

Commission fee

3,343

3,400

(57)

(1.7)

Subcontract expenses

1,426

1,067

+358

+33.6

Depreciation

1,620

1,326

+293

+22.1

Other

2,483

2,648

(165)

(6.2)

Total

(Reference)
Business unit performance(Period from October 1, 2019 to September 30, 2020)
First year ended
September 30, 2020

ChangeFiscal year ended
September 30, 2019

AmountChange ratio

Millions of yen

Millions of yen

Millions of yen%

26,082

27,112(1,030)(3.8)

Content business

20,191

21,102

(910)

(4.3)

Healthcare business

3,500

3,576

(76)

(2.1)

Other businessElimination of
consolidation

2,390

2,433

(42)

(1.8)

-

-

-

-

Net sales(Period from October 1, 2019 to September 30, 2020)
First year ended
September 30, 2020

Fiscal year ended
September 30, 2019

ChangeAmountAmountMillions of yen

Millions of yen

Millions of yen

%

2,507

2,959

(451)

(15.3)

Content business

6,964

6,620

+343

+5.2

Healthcare business(1,864)(1,516)(347)-

Other business

(595)

(480)

(114)

-

Cost department
Elimination of
consolidation(1,813)(1,623)

(190)

-

(184)

(41)

(143)

-

Operating income(Note) The Group’s quarterly results under review have been compiled as those of a single segment of the content distribution business.
For reference, the Group has decided to disclose operating results by business unit to ensure that realities are understood moreclearly with respect to the Group’s net sales and profit, starting for the current fiscal year. Specifically, net sales and profit are
shown for the three business units (content business, healthcare business and other businesses) classified according to thedifference in the services provided. Furthermore the group will change to three segment divisions consisted of content business,healthcare business and other business.

―3―(2) Overview of financial position for the current fiscal year
As of the end of the fiscal year under review, total assets increased ¥3,067 million from September 30, 2019, to¥30,547 million.
Current assets increased ¥1,274 million, mainly reflecting an increase in cash and deposits. Non-current assets
increased ¥1,793 million, chiefly due to rises in goodwill and customer-related assets resulting from the acceptedtransfer of businesses, such as the musico music streaming website, which more than offset a decrease in software.
Current liabilities increased ¥451 million, primarily reflecting an increase in current portion of long-termborrowings and accounts payable-other a decrease in accounts payable-trade. Non-current liabilities climbed¥2,900 million, chiefly due to a rise in long-term borrowings.
Net assets decreased ¥283 million, attributable to a rise in non-controlling interests and ¥506 million posted as
profit attributable to owners of parent, which offset cash dividends paid and a decrease in valuation difference on
available-for-sale securities.
(3) Overview of cash flow position for the current fiscal year
As of the end of the fiscal year under review, cash and cash equivalents amounted to ¥13,354 million, an increaseof ¥932 million from September 30, 2019. Cash flow by activity and principal factors in the fiscal year underreview were as follows.
Net cash provided by operating activities was ¥3,292 million (inflow of ¥4,007 million in the previous fiscal
year). This is mainly a reflection of profit before income taxes and depreciation, which more than offset income
taxes paid.
Net cash used in investing activities stood at ¥4,807 million (outflow of ¥3,613 million in the previous fiscal
year). Principal factors included payments for acquisition of businesses and the acquisition of intangible assets(mainly purchase of software).
Net cash provided by financing activities came to ¥2,449 million (inflow of ¥1,532 million in the previous
fiscal year). Principal factors included proceeds from long-term borrowings, which more than offset dividends
paid.
(Reference) Cash flows indicators
Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended
September 30,
September 30,
September 30,
September 30,
September 30,
2016
2017
2018
2019
2020
Equity ratio (%)
Equity ratio based on market
value (%)
Ratio of cash flows to interestbearing liabilities (%)
Interest coverage ratio (times)

68.8

71.2

75.2

72.3

62.7

137.3

154.0

143.9

140.4

158.2

-

-

-

1.7

101.2

2,223.9

5,646.4

25,971.6

8,912.8

804.9

Equity ratio: Shareholders’ equity / Total assets Equity ratio
Based on market value: Market capitalization / Total assets Ratio of cash flows to interest-bearing liabilities: Interest-bearing liabilities/ Net cash provided by operating activities.
Interest coverage ratio: Net cash provided by operating activities Interest payments.
Notes: 1. These indicators are calculated based on consolidated financial results.
2. Cash flows refers to net cash provided by operating activities in the consolidated statements of cash flows.
3. Interest-bearing liabilities refer to all liabilities in the consolidated balance sheet for which interest is paid. Interest payment
refers to the interest payment amount in the consolidated cash flows statement.

(4) Future outlook
The Company will focus on raising sales in the (new) healthcare business. In the content business, it will work tomaintain the total number of paying subscribers as much as possible by promoting paid subscription to the ad―4―blocker, AdGuard, and grow the original comic distribution business along with the outlook that the total numberof paying subscribers will continue to decrease.
The (new) healthcare business, in which the Company is engaged with a medium-term perspective, has strong
growth potential in the long term and may move toward a stock type business with the provision of long-term
support according to customers’ life stages. Accordingly, the Company is committed to implementing a variety ofmeasures to achieve sales growth.
In particular, the appetite for introducing a cloud drug record service has been growing for some time due tothe Revision of the Medical Fee System. Because these factors contribute to continued sales growth of the (new)healthcare business, the Company plans to actively promote sales in cooperation with its partner, Medipal
Holdings Corporation.
The Company is providing online medical examinations and online medication advice, for which demand has
been rising amid the COVID-19 pandemic, currently free of charge. By shifting these to paid services andencouraging their use, the Company will make the services contribute to medium-term profit growth.
Based on the above, the Company has prepared full-year forecasts for the fiscal year ending September 30,
2021, which include net sales of ¥25,500 ~ ¥26,500 million (down 2.2% ~ up 2.1% year on year), operating
income of ¥2,100 ~ ¥2,500 million (down 16.2% ~ down 0.3%), ordinary income of ¥2,100 ~ ¥2,500 million (up0.8% ~ up 20.0%), and profit attributable to owners of parent of ¥1,300 ~ ¥1,700 million (up 156.4% ~ up 235.3%).
Trends in the COVID-19 pandemic may affect the sales expansion of the cloud drug record service currently
expected, for instance, by causing changes in the business environment of the Group’s customers. Changes in thebusiness environment of the Group may affect the growth in the number of paying subscribers to the ad blocker,
AdGuard, and the expansion of the original comic distribution business. The financial forecasts for the first half
and full-year financial forecasts for the next fiscal year are indicated in a range, taking into account fluctuations
caused by the external environment. The forecasts in this release are based on information available to theCompany at the time of preparing this report, which may vary significantly from the actual results due to a numberof uncertain factors.
While the impact of the COVID-19 pandemic on the Company’s consolidated performance is expected to be
negligible, the Company will promptly release any information requiring disclosure.

Earnings forecast for the six months of the fiscal year ending September 30, 2021
(Period from October 1, 2020 to March 30, 2021)
Consolidated
Net sales(Millions of yen)
12,750 ~ 13,250

YoY(%)(1.5) ~ 2.3

Operating income

1,000 ~1 ,200

(30.9) ~ (17.1)

Ordinary income

1,000 ~ 1,200(23.7) ~ (8.4)

Profit attributable toowners of parent

650 ~ 850

(47.8) ~ (31.8)

Earnings forecast for the fiscal year ending September 30, 2021
(Period from October 1, 2020 to September 30, 2021)
Consolidated(Millions of yen)

YoY(%)Net sales

25,500 ~ 26,500(2.2) ~ 1.6

Operating income

2,100 ~ 2,500(16.2) ~ (0.3)

Ordinary income

2,100 ~ 2,500

0.8 ~ 20.0

Profit attributable toowners of parent

1,300 ~ 1,700

156.4 ~ 235.3―5―

2. Basic policy for the selection of accounting standards
The Group intends to compile its consolidated financial statements based on the Japanese accounting standard forthe time being, considering the possibility of comparing the terms of financial statements and performances
between companies.
It will adopt the International Financial Reporting Standards (IFRS), factoring in the situations in Japan andabroad.

―6―

3．Consolidated financial statements and important notes(1) Consolidated balance sheet（Unit: thousands of yen）
Previous fiscal year
(As of September 30, 2019)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Advance payments-trade
Prepaid expenses
Accounts receivable-other
Income taxes receivable
Other
Allowance for doubtful accounts

Current fiscal year
(As of September 30, 2020)

12,421,560
4,667,149
274,835
367,654
109,900
17,326658,274(47,613)

13,354,028
4,840,902
466,495
453,713271,568
51,914
341,334(36,222)

18,469,087

19,743,732

403,989(296,938)

397,543(308,891)

107,051

88,652

416
(215)

1,201
(451)

200

750

511,776(360,777)

507,795(403,441)

Tools, furniture and fixtures, net

150,998

104,354

Total property, plant and equipment

258,250

193,757

1,870,772
153,609－37,736

1,281,608
692,054
1,755,000
35,4372,062,119

3,764,099

4,977,219
511,987
1,133,820

4,536,380
493,882
1,766,869

Other
Allowance for doubtful accounts

92,734(25,824)

74,487(25,824)

Total investments and other assets

6,689,936

6,845,793

9,010,306

10,803,650

27,479,393

30,547,383

Total current assets
Non-current assets
Property, plant and equipment
Facilities attached to buildings
Accumulated depreciation
Facilities attached to buildings, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation

Intangible assets
Software
Goodwill
Customer-related assets
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Deferred tax assets

Total non-current assets
Total assets―7―

（Unit: thousands of yen）
Previous fiscal year
(As of September 30, 2019)

Current fiscal year
(As of September 30, 2020)

1,308,159
2,000
14,2801,150,276
459,581730,600
160,913
143,377
16,110329,766

1,101,925

Total current liabilities

4,315,064

4,766,705

Non-current liabilities
Long-term loans payable
Net defined benefit liability
Negative goodwill
Other

52,1001,306,642
4,069
7,188

2,881,570
1,381,767
6,756

Total non-current liabilities

Liabilities
Current liabilities
Accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Provision for point usage
Provision for directors’ bonuses
Other－451,780
1,333,898
492,594
701,022
109,550
110,690
23,302441,940

1,370,000

4,270,094

Total liabilities

5,685,065

9,036,799

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

5,135,680
6,706,846
10,989,009(3,233,136)

5,138,116
6,551,222
10,707,058(3,283,663)

19,598,399

19,112,733

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

Total shareholders’ equity

271,565(8,332)
5,335

19,897(11,666)
46,010Total accumulated other comprehensive income

268,568

54,241

Subscription rights to shares
Non-controlling interests

343,187
1,584,173

345,2991,998,309

Total net assets

21,794,328

21,510,583

27,479,393

30,547,383

Total liabilities and net assets―8―(2) Consolidated statement of income and consolidated comprehensive income
Consolidated statement of income
Previous fiscal year
(from October 1, 2018
to September 30, 2019)27,112,593
7,157,326
19,955,267（Unit: thousands of yen）
Current fiscal year
(from October 1, 2019
to September 30, 2020)
26,082,051
7,130,326
18,951,725

Selling, general and administrative expenses

16,996,073

16,444,519

Operating income

2,959,193

2,507,205

204
59,673
9,117
112,509－
22,911

215
10,1304,069－
138
27,014204,416

41,569449－
8,763
20,1194,094
431,156
14,66016,00429,332465,915

3,134,277

2,082,859－
267,143
18,69035,422

272,326
428,437
67,032
41,665321,256

809,461－
157,91228,564
517,083664
1,416,842
166,935
93,956

Loss on valuation of shares of subsidiaries and associates
Loss on sales of shares of subsidiaries and associates
Amortization of goodwill
Loss on sale of businesses

11,108102,986
74,569
2,388

－
－
－
－

Total extraordinary losses

894,613

1,678,399

Income before income taxes

2,560,921

1,213,921

Income taxes-current
Income taxes-deferred

1,042,909
64,801

1,074,548(196,627)

Total income taxes

1,107,711

877,921

Profit

1,453,209

336,000

Loss attributable to non-controlling interests(55,003)(170,942)

Profit attributable to owners of parent

1,508,212

506,943

Net sales
Cost of sales
Gross profits

Non-operating income
Interest income
Dividend income
Amortization of negative goodwill
Share of profit of entities accounted for using equity method
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on step acquisitions
Gain on sales of investment securities
Gain on change in equity
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment loss
Loss on retirement of non-current assets
Loss on valuation of investment securities―9―Consolidated statement of comprehensive income
Previous fiscal year
(from October 1, 2018
to September 30, 2019)
1,453,209（Unit: thousands of yen）
Current fiscal year
(from October 1, 2019
to September 30, 2020)
336,000

195,222
36,153(56,977)(291,833)(3,636)
40,674(15,864)

40,468

158,534(214,327)

Comprehensive income

1,611,743

121,673(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

1,650,841

292,616(39,097)(170,942)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income―10―(3) Consolidated statement of changes in equity
Previous fiscal year (from October 1, 2018 to September 30, 2019)(Unit: thousands of yen)
Shareholders’ equity

Balance at beginning of current
periodCapital stock

Capital surplus

5,100,464

5,820,687

35,21535,215Retainedearnings

Treasury stock

Total
shareholders’equity(3,148,848)

17,852,885

10,080,581

Changes of items during period
Issuance of new shares
exercise of subscription rights
to shares

70,431Dividends of surplus(875,005)(875,005)

Profit attributable to ownersof parent

1,508,212

1,508,212

Purchase of treasury shares
Increase(decrease)consolidated subsidiaries
Net changes of items otherthan shareholders’ equity
Change in equity in affiliates
accounted for by equity
method treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period(3)
850,943(3)
850,943

275,220(84,283)

190,936

35,215886,158

908,427(84,287)

1,745,514

5,135,680

6,706,846

10,989,009(3,233,136)

19,598,399

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

88,583(24,956)

Total otherRemeasurements
accumulatedof defined benefit
comprehensive
plansincome62,312125,939

Subscription
rights toshares

Noncontrollinginterests

332,830

496,768

Total net
assets18,808,423

Changes of items during period
Issuance of new shares
exercise of subscription rights
to shares

70,431Dividends of surplus(875,005)

Profit attributable to ownersof parent

1,508,212

Purchase of treasury shares
Increase(decrease)consolidated subsidiaries
Net changes of items otherthan shareholders’ equity
Change in equity in affiliates
accounted for by equity
method treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period(3)
850,943
190,936－
182,981

16,623(56,977)

142,628

10,356

1,087,405

1,240,390

182,981

16,623(56,977)

142,628

10,356

1,087,405

2,985,905

271,565(8,332)

5,335

268,568

343,187

1,584,173

21,794,328―11―

Current fiscal year (from October 1, 2019 to September 30, 2020)(Unit: thousands of yen)
Shareholders’ equity

Balance at beginning of current
periodCapital stock

Capital surplus

5,135,680

6,706,846

2,436

2,436

Retainedearnings

Treasury stock

Total
shareholders’equity(3,233,136)

19,598,399

10,989,009

Changes of items during period
Issuance of new shares
exercise of subscription rights
to shares

4,872

Dividends of surplus(876,893)(876,893)

Profit attributable to ownersof parent

506,943506,943－

Purchase of treasury shares
Increase(decrease)consolidated subsidiaries
Net changes of items otherthan shareholders’ equity
Net changes of items otherthan shareholders’ equity
Change in equity in affiliates
accounted for by equity
method treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period(158,059)(158,059)
87,99987,999(50,527)(50,527)

2,436(155,623)(281,950)(50,527)(485,665)

5,138,116

6,551,222

10,707,058(3,283,663)

19,112,733

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

271,565(8,332)

Total otherRemeasurements
accumulatedof defined benefit
comprehensive
plansincome5,335

268,568

Subscription
rights toshares

Noncontrollinginterests

343,187

1,584,173

Total net
assets21,794,328

Changes of items during period
Issuance of new shares
exercise of subscription rights
to shares

4,872

Dividends of surplus(876,893)

Profit attributable to ownersof parent

506,943－

Purchase of treasury shares
Increase(decrease)consolidated subsidiaries
Net changes of items otherthan shareholders’ equity
Change in equity in affiliates
accounted for by equity
method treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period(158,059)
87,999(50,527)(251,668)(3,333)40,674(214,327)

2,112

414,135

201,920(251,668)(3,333)40,674(214,327)

2,112

414,135(283,745)

19,897(11,666)

46,01054,241

345,2991,998,309

21,510,583―12―

（4）Consolidated statement of cash flows（Unit: thousands of yen）
Current fiscal year
(from October 1, 2019
to September 30, 2020)

Previous fiscal year
(from October 1, 2018
to September 30, 2019)
Cash flows from operating activities
Income before income taxes
Depreciation
Impairment loss
Loss (gain) on transfer of business
Amortization of goodwill
Amortization of negative goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for point usage
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Commission fee

2,560,921
1,406,827
157,9122,388
170,066(9,117)
4,351
1,600
115,835(59,877)
449
8,121
－

1,213,921
1,703,477
1,416,842－
302,346(4,069)(11,391)(32,686)
124,694(10,346)
4,094－(272,326)(112,509)

431,156(18,690)
28,564－
517,083(67,032)
166,935
664
93,956(428,437)

Loss (gain) on step acquisitions
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on change in equity
Loss on retirement of non-current assets
Loss (gain) on sales of non-current assets
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss on valuation of shares of subsidiaries and associates
Loss (gain) on sales of shares of subsidiaries and associates
Gain on reversal of subscription rights to shares
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in advance payments
Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable-other
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Other, net(267,143)
11,108102,986(35,422)574,898(12,416)(16,897)(406,759)(161,665)(206,142)
183,759
33,563(51,555)
491,325

Subtotal

4,423,024

4,440,291

Interest and dividend income received
Interest expenses paid
Income taxes (paid) refund

59,877(449)(475,145)

10,346(4,094)(1,153,905)

Net cash provided by (used in) operating activities

4,007,306

3,292,637(27,993)
1,305
13,994(288,592)
29

―13―

－
－
(41,665)(173,686)(179,547)(85,894)

（Unit: thousands of yen）
Current fiscal year
(from October 1, 2019
to September 30, 2020)

Previous fiscal year
(from October 1, 2018
to September 30, 2019)
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Payments for transfer of business
Proceeds from collection of lease and guarantee deposits
Other, net(101,437)
202(1,454,126)(950,638)
384,023(1,082,409)(66,854)2,450(1,618,390)(54,379)
918,824(725,092)(96,957)(36,882)(118,541)－(172,596)
4,199(24,940)(3,242,593)
17,770(1,870)(3,613,220)(4,807,018)－
2,000(3,620)70,00056,564(3)(2,000)－(263,030)
3,500,000
3,796－

2,283,000

410,000(875,005)(876,893)－(222,600)(100,000)

Net cash provided by (used in) financing activities－
1,532,934

2,449,272

Effect of exchange rate change on cash and cash equivalents(9,683)(2,423)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of short-term borrowings
Increase in short-term loans payable
Repayments of long-term loans payable
Proceeds from long-term loans payable
Proceeds from issuance of common shares
Purchase of treasury shares
Proceeds from share issuance to non-controllingshareholders
Cash dividends paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Purchase of treasury shares of subsidiaries

Net increase (decrease) in cash and cash equivalents

1,917,336

932,467

Cash and cash equivalents at beginning of period

10,504,223

12,421,560

Cash and cash equivalents at end of period

12,421,560

13,354,028―14―