Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Non-Consolidated Financial Results
for the Year Ended April 30, 2018
(Based on Japanese GAAP)
June 8, 2018
Company name:

HEROZ, Inc.

Stock exchange listing: Tokyo
Stock code:
4382
Representative:
Inquiries:

URL

https://www.heroz.co.jp

Representative Director and CEO
Director and CFO

Takahiro Hayashi
Daisuke Asahara

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

July 27, 2018
July 30, 2018

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:–Yes

Holding of financial results meeting:

Yes

TEL

03(6435)2495(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Non-consolidated financial results for the year ended April 30, 2018 (from May 1, 2017 to April 30, 2018)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended April 30, 2018Year ended April 30, 2017

Millions of yen
1,155
877

Operating profit% Millions of yen
31.6
354(24.1)
88

Diluted earnings pershare
Yen
Yen
82.08
73.14
29.44
28.51

Earnings per share
Year ended April 30, 2018Year ended April 30, 2017

Ordinary profit

%
298.6
–

Millions of yen
338
94

Profit%258.9–

Millions of yen
247
94%
162.7
–

Ordinary profit/total Operating profit/net
assetssales%%%
31.3
32.1
30.7
103.6
22.8
10.1

Profit/equity(2) Non-consolidated financial position
Total assets
As of April 30, 2018
As of April 30, 2017

Net assets

Equity ratio

Millions of yen
1,748
363

Millions of yen
1,504
74

Cash flows fromoperating activities
Millions of yen
373
111

Cash flows frominvesting activities
Millions of yen(36)2

Net assets per share%
86.1
20.6

Yen
451.3825.79(3) Non-consolidated cash flows

Year ended April 30, 2018Year ended April 30, 2017

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
1,013
1,555
(171)
204

2. Cash dividendsAnnual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended April 30, 2017
Year ended April 30, 2018Year ending April 30, 2019
(Forecast)

Dividend payout Ratio of dividends
Total cashratio
to net assets
dividends (Total) (Non-consolidated)(Non-consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

–
–

0.00
0.00

–
–

0.00
0.00

0.00
0.00

––––––

–

0.00

–

0.00

0.00

1–

3. Forecast of non-consolidated financial results for the year ending April 30, 2019 (from May 1, 2018 to April 30, 2019)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
1,300

Operating profit% Millions of yen
12.6
400

Ordinary profit% Millions of yen
12.9
400

Profit% Millions of yen
18.1
280

Earnings per share%
13.3

Yen
83.38

4. Notes(1) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
NoChanges in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(2) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of April 30, 2018

3,333,839 shares As of April 30, 2017

3,200,000 shares

10 shares As of April 30, 2017

300,000 shares

3,010,005 shares Year ended April 30, 2017

3,195,068 shares

Number of treasury shares at the end of the period
As of April 30, 2018
Average number of shares during the period
Year ended April 30, 20182Non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of April 30, 2017

As of April 30, 2018

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade204,767
129,995

1,555,078
102,266Work in process
Prepaid expenses

–
6,708

6,356
8,560

Deferred tax assets
Other–
561

11,611
1,023

Total current assets

342,033

1,684,896

1,745
2,370

1,434
2,940

–

25,874

4,115

30,250Software593

233

Total intangible assets

593

233

204
–

46
8,406

Other

16,86724,300Total investments and other assets

17,07232,752

21,781

63,237363,814

1,748,133

Non-current assets
Property, plant and equipment
Buildings, netTools, furniture and fixtures, net
Construction in progress
Total property, plant and equipment
Intangible assets

Investments and other assets
Long-term prepaid expenses
Deferred tax assets

Total non-current assets
Total assets3

(Thousands of yen)
As of April 30, 2017

As of April 30, 2018

Liabilities
Current liabilities
Accounts payable - trade53,62021,890

Short-term loans payable
Accounts payable - other

10,00014,153–
20,715

Accrued expenses
Income taxes payable

15,458290

15,787
125,524

Advances received
Deposits received

6,801
32,437

12,633
9,705

Provision for bonuses
Other–
6,256

6,414
30,630Total current liabilities

139,018

243,301

150,000–

150,000–

289,018

243,301

61,350205,990

Capital surplus
Legal capital surplus–

144,640

Other capital surplus

61,350829,036

Total capital surpluses

61,350973,676

78,095

325,167

Non-current liabilities
Convertible bond-type bonds with share acquisition rights
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock

Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Total net assets
Total liabilities and net assets

478,095

325,167(126,000)(4)

74,795

1,504,831

74,795

1,504,831

363,814

1,748,133

Non-consolidated statements of income(Thousands of yen)
Fiscal year ended

Fiscal year endedApril 30, 2017

April 30, 2018

Net sales
Cost of sales

877,623
685,637

1,155,023
646,095

Gross profit

191,986

508,927

Selling, general and administrative expenses

103,131

154,737

Operating profit

88,854354,189

Interest income
dividends on investment

3
3,040

4
1,577

Subsidy income
Other

2,500
328

–
207

Total non-operating income

5,872

1,789

374

32–
–

4,816
12,462Non-operating income

Non-operating expenses
Interest expenses
Share issuance cost
Going public expenses

374

17,311

Ordinary profit

Total non-operating expenses

94,352

338,667

Profit before income taxes

94,352

338,667290

111,612

Income taxes - currentIncome taxes - deferred
Total income taxes
Profit5–(20,017)290

91,595

94,062

247,072

Non-consolidated statements of changes in equity
Fiscal year ended April 30, 2017
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings

Capital stock Legal capital Other capital Total capitalsurplussurplussurplus

Balance at beginning of current
period61,35061,350–61,350

Other
retainedearnings
Retainedearnings
brought
forwardTotal
retainedearnings(15,966)(15,966)

94,062

94,062

Total
shareholders'equityTreasuryshares–106,733(126,000)(126,000)

Changes of items during period
ProfitPurchase of treasury shares
Capital reduction

94,062(61,350)

61,350–––(61,350)

61,350–94,062

94,062(126,000)(31,937)

61,350–61,35061,35078,09578,095(126,000)

74,795

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

Total net
assetsBalance at beginning of current
period106,733

Changes of items during period
ProfitPurchase of treasury shares

94,062(126,000)

Capital reduction–

Net changes of items other thanshareholders' equity–

Total changes of items during period(31,937)

Balance at end of current period

74,795

6

Fiscal year ended April 30, 2018
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings

Capital stock Legal capital Other capital Total capitalsurplussurplussurplus

Balance at beginning of current
period61,350–144,640

144,640

61,35061,350

Other
retainedearnings
Retainedearnings
brought
forward78,095

Total
retainedearnings

78,095

Treasuryshares(126,000)

Total
shareholders'equity

74,795

Changes of items during period
Issuance of new shares

144,640

Profit289,281
247,072

Disposal of treasury shares

767,686

767,686

247,072

247,072
125,995

893,681

Net changes of items other thanshareholders' equity
Total changes of items during period

144,640

144,640

767,686

912,326

247,072

247,072

125,995

1,430,035

Balance at end of current period

205,990

144,640

829,036

973,676

325,167

325,167(4)

1,504,831

Total net
assetsBalance at beginning of current
period74,795

Changes of items during period
Issuance of new shares

289,281

Profit247,072

Disposal of treasury shares893,681

Net changes of items other thanshareholders' equity–

Total changes of items during period

1,430,035

Balance at end of current period

1,504,831

7

Non-consolidated statements of cash flows(Thousands of yen)
Fiscal year ended

Fiscal year endedApril 30, 2017

April 30, 2018

Cash flows from operating activities
Profit before income taxes

94,352

338,667

Depreciation
Amortization of lease deposits

4,144
724

2,530
524

Interest income
Subsidy income(3)(2,500)(4)–

dividends on investment
Interest expenses(3,040)
374(1,577)32

Going public expenses
Share issuance cost––

12,462
4,816

Increase (decrease) in provision for bonuses
Decrease (increase) in notes and accounts receivable - trade(798)
30,8296,414
27,728Decrease (increase) in inventories
Decrease (increase) in prepaid expenses–(1,615)(6,356)(1,851)

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts payable - other(31,628)(4,902)(31,730)(658)

Increase (decrease) in accrued expenses
Increase (decrease) in deposits received(3,924)22,934328(22,731)

Increase (decrease) in advances received
Other, net

3,361(8,952)

5,831
38,607

Subtotal

99,356

373,036

Interest income received
Proceeds from subsidy income

32,5004–

Proceeds from dividends on investment
Interest expenses paid

2,858(374)

952
(32)

Income taxes (paid) refund

6,907

(290)

111,250

373,669

Purchase of property, plant and equipment
Purchase of intangible assets(1,023)(120)(28,306)(193)

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits

(300)
3,971

(7,957)–

Net cash provided by (used in) investing activities

2,527(36,456)

Net cash provided by (used in) operating activities
Cash flows from investing activities

Cash flows from financing activities
Increase in short-term loans payable

10,000–(100,000)(5,000)(10,000)–

50,000316,604

Proceeds from issuance of common shares
Purchase of treasury shares–(126,000)

189,306–

Proceeds from disposal of treasury shares
Other, net––

527,085(9,898)(171,000)

1,013,097

Net increase (decrease) in cash and cash equivalents(57,221)1,350,310

Cash and cash equivalents at beginning of period

261,989

204,767

Cash and cash equivalents at end of period

204,767

1,555,078

Decrease in short-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of convertible bond type bonds with
subscription rights to shares

Net cash provided by (used in) financing activities

8