October 31, 2019

Consolidated Financial Results(Japanese Accounting Standards)
for the 2nd Quarter of FY 2019
UNITED, Inc.
Tokyo Stock Exchange2497
http://united.jp/Tomonori Hayakawa, CEO
Takahiro Fukushima, General Manager, Corporate Administration Division
Tel. +81-3-6821-0000
Scheduled date for filing of quarterly securities report:
October 31, 2019
Scheduled date of commencement of dividend payment:
December 10, 2019
Supplementary documents for quarterly results:
YES
Quarterly results briefing:
YES(For securities analysts and institutional investors)
Company name:
Stock exchange listing:Stock code:
URL:
Representative:
Contact:(Amounts of less than one million yen are rounded down)
1.Consolidated Financial Results for the 2nd Quarter of FY 2019 (April 1, 2019 - September 30, 2019)(Percentages show year-on-year changes)(1) Consolidated Results of Operations (Accounting Total)
Net sales

Operating income

Profit attributable toowners of parent

Ordinary income

Mil.¥
Mil.¥
％％％
△40.1
2,628
△78.5
2,578
△78.9
173.3
12,219―12,206―△5,948million yen ( － %) for the 2nd Quarter of FY 201935,039million yen ( － %) for the 2nd Quarter of FY 2018
Diluted earnings
Earnings
per shareper shareYenYen
56.33
56.33
351.06349.13

Mil.¥
11,30518,858

2nd Quarter of FY 2019
2nd Quarter of FY 2018
(Note) Comprehensive income :2nd Quarter of FY 2019
2nd Quarter of FY 2018

Mil.¥
1,273
8,080

(2) Consolidated Financial Position
Total assets
Mil.¥
2nd Quarter of FY 2019
43,347(As of September 30,2019)
Fiscal Year 201857,230(As of March 31,2019)(Reference) Capital : September 30, 2019 : 32,039 million yen

Net assets

Equity ratio
Mil.¥

％

32,241

73.9

40,10069.7

March 31, 2019 : 39,867 million yen

2.Dividend Per Share
Record date

End of 1st End of 2nd End of 3rdquarter
quarterquarter
Yen
Yen
Yen
―
24.00
――
11.00

End ofperiod
Yen
37.00

Annualdividend
Yen
61.00

Fiscal Year 2018
Fiscal Year 2019
Fiscal Year 2019―――
(expected)(Note) Revisions of the forecasts of consolidated results since the latest announcement : None

3.Consolidated Earnings Forecast for Fiscal Year Ending March 2020 (April 1,2019 to March 31,2020)
The consolidated earnings forecast for this period has not been included due to difficulties conducting reasonablecalculations of the earnings forecast.

％△84.2―*Notes(1) Changes of important subsidiaries during the period(Changes of specific subsidiaries in accordance with changes in the scope of consolidation) : Yes
Newly consolidated subsidiaries : None
Subsidiaries excluded from consolidation : COINAGE, Inc.
(2) Application of particular accounts procedures to the preparation of quarterly consolidated financial statement:None(3) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies caused by revision of accounting standard:(ii) Changes in accounting policies other than (i):(iii) Changes in accounting estimates:(iv) Restatement:

None
None
None
None

(4) Number of shares outstanding (common stock):(i) Number of shares outstanding at end of period (including treasury stock)
As of September 30, 2019:23,671,845 shares
As of March 31, 2019:23,671,845 shares(ii) Number of treasury stock at end of period
As of September 30, 2019:
1,323,045 shares
As of March 31, 2019:
622,995 shares(iii) Average number of shares outstanding during the term
2nd Quarter of FY 2019:
22,599,159 shares
2nd Quarter of FY 2018:
23,017,322 shares*Status of a quarterly review- These Consolidated Financial Results are not subject to quarterly review procedures based on the Financial Instruments and Exchange Act.

*Explanations and other special notes concerning the appropriate use of business performance forecasts- The forward-looking statements such as result forecasts included in this document are based on the information available tothe Company at the time of the announcement and on certain assumptions considered reasonable, and the Company makes norepresentations as to their achievability. Actual results may differ materially from the forecast depending on a range of factors.
- We will hold a quarterly results briefing for institutional investors and analysts on November 1, 2019.
For material that are distributed in this briefing, it will be posted on our website.

UNTIED Consolidated Financial Statements(1) UNITED Consolidated Balance Sheets
for the 2nd Quarter of FY 2019
Items of an account

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Operational investment securities
Inventories
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Provision for point card certificates
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Bonds payable
Deferred tax liability
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets(Unit : Thousands of Yen)FY2018(As of March 31, 2019)

2nd Quarter of FY2019(As of September 30, 2019)

AmountAmount8,822,421
1,781,226
39,190,609
70,644
1,344,506(5,383)
51,204,024

6,725,806
1,881,006
28,853,061
119,663490,710(5,530)38,064,717

544,967

500,649

4,125,545
432,269
4,557,814
923,305
6,026,088
57,230,112

3,598,024
330,961
3,928,986
853,357
5,282,993
43,347,711

1,414,107
100,000
187,468－
3,946,314
30,251
917,577
6,595,718

1,321,284
100,000
177,468
50,000674,205
23,483774,855
3,121,297

334,758－
10,198,960
10,533,718
17,129,436

239,919
200,000
7,544,608
7,984,527
11,105,825

2,923,019
2,385,813
10,954,274(892,077)
15,371,029

2,923,019
2,343,346
11,374,553(1,884,315)
14,756,603

24,501,737(5,216)24,496,520
180,165
52,95940,100,675
57,230,112

17,293,115(10,685)
17,282,430
202,852
32,241,885
43,347,711

(2) UNITED Consolidated Statements of Income
for the 2nd Quarter of FY 2019
for the 2nd Quarter of FY 2019

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
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 reversal of share acquisition rights
Gain on liquidation of subsidiaries and affiliates
Gain on sale of businesses
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on valuation of investment securities
Office transfer expenses
Office relocation expenses
Burden charge paymen
Other
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

2nd Quarter of FY2018(April 1,2018
to September 30,2018)
Amount(Unit : Thousands of Yen)
2nd Quarter of FY2019(April 1,2019
to September 30,2019)
Amount18,858,411
4,531,568
14,326,842
2,106,903
12,219,938

11,305,205
6,071,101
5,234,104
2,606,024
2,628,080

162
3,770
3,932

206
5,589
5,795

798
3,167
2,236
10,905
17,107
12,206,764

2,638
25,564
12,632
14,34655,181
2,578,694

7,768
42,194－49,963－－
10,00010,00055,000－174,463
142,908－－
1,757
374,129
11,882,597
3,898,900(42,178)
3,856,721
8,025,875(54,613)8,080,489

10,544
99,166
19,655－
7,067
48,284
8,840
193,559
2,395,134
628,943
500,648
1,129,591
1,265,542(7,542)
1,273,085

(3) UNITED Consolidated Statements of Comprehensive Income
for the 2nd Quarter of FY 2019
for the 2nd Quarter of FY 2019

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

2nd Quarter of FY2018(April 1,2018
to September 30,2018)
Amount(Unit : Thousands of Yen)
2nd Quarter of FY2019(April 1,2019
to September 30,2019)
Amount8,025,875

1,265,542

27,038,810(25,281)
27,013,529
35,039,404(7,208,621)(5,468)(7,214,090)(5,948,547)

35,081,197(41,792)(5,941,005)(7,542)

(4)UNITED Consolidated Statements of Cash Flowsfor the 2nd Quarter of FY 2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Share-based compensation expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for point card certificatesInterest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity method
Loss (gain) on valuation of investment securities
Impairment loss
Loss on retirement of non-current assetsDecrease (increase) in trade receivables
Decrease (increase) in investment securities for sale
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Payments for sales of shares of subsidiaries resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term loans payable
Proceeds from issuance of bonds
Proceeds from issuance of subscription rights to share
Purchase of treasury shares
Cash dividends paid
Payments from changes in ownership interests in subsidiaries that do not result in change in scope ofconsolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

2nd Quarter of FY2018(April 1,2018
to September 30,2018)
Amount(Unit:Thousands of Yen)
2nd Quarter of FY2019(April 1,2019
to September 30,2019)
Amount11,882,597
72,333144,032
34,865
275
564
(162)
798
3,167
174,463－
55,000(155,296)(559,915)(5,942)
132,418
176,609
11,955,809
162
(798)
(400,427)
11,554,746

2,395,134
115,375
527,520
17,850147(6,767)(206)
2,638
25,564
19,65599,166
10,544(99,779)(42,478)
707,081
49,403(61,483)3,759,368
206(3,136)(3,711,621)
44,817(35,539)(163,314)(21,671)(56,973)－(104,488)(381,987)(25,235)(74,519)－－(309,292)
31,704(377,342)(2,100)－45,368－(45,407)(104,839)
250,000－(992,237)(849,714)(570,055)(63,699)(572,195)
9,667
10,610,231
5,576,508
16,186,739(1,760,490)(3,599)(2,096,614)
8,822,421
6,725,806