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 Six Months Ended July 31, 2020
(Based on Japanese GAAP)
September 14, 2020
Company name:Enigmo Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

3665
URL http://http://www.enigmo.co.jp/
Representative Director, CEO
Shokei SUDA

Inquiries:

Executive Officer,
Chief Director of Corporate Operation

Yoichi KANEDA

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

September 14, 2020
–Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:Yes
No03-6894-3665(Amounts less than one million yen are rounded down)
1. Non-consolidated financial results for the six months ended July 31, 2020 (from February 1, 2020 to July 31, 2020)(1) Non-consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Net sales
Six months ended July 31, 2020
Six months ended July 31, 2019

Millions of yen
2,964
2,695

Operating profit% Millions of yen
10.0
1,127
17.7
1,133

Earnings per share

Profit% Millions of yen
1.1
783
18.7
774

%
1.1
19.0

Diluted earnings per share

Yen
18.82
18.60

Six months ended July 31, 2020
Six months ended July 31, 2019

Ordinary profit% Millions of yen
(0.5)
1,126
20.7
1,114

Yen––(2) Non-consolidated financial position
Total assets
As of July 31, 2020
As of January 31, 2020

Net assets

Millions of yen9,621
8,835

Equity ratio

Millions of yen
7,862
7,371%
81.7
83.4

2. Cash dividends
Annual dividends per share

Year ended January 31, 2020
Year ending January 31, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
7.00

Yen
7.00

–

0.00

0.00

Year ending January 31, 2021 (Forecast)

1Total3. Notes(1) Application of special accounting methods for preparing quarterly non-consolidated financial statements: No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
No
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of July 31, 2020

42,642,000 shares As of January 31, 2020

42,642,000 shares

Number of treasury shares at the end of the period
As of July 31, 2020

1,000,040 shares As of January 31, 2020

1,000,040 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended July 31, 2020

41,641,960 shares Six months ended July 31, 2019

241,641,960 shares

Quarterly non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of January 31, 2020

As of July 31, 2020

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade8,186,097
292,670

8,987,695
259,130

Supplies
Advance payments - trade–129,714

5,539
128,648

Prepaid expenses
Accounts receivable - other

31,127
7,516

42,890837

Other753

45

8,647,879

9,424,788

Property, plant and equipment
Buildings

45,66344,756

Tools, furniture and fixtures

16,236

31,180Total property, plant and equipment

61,89975,936

SoftwareOther

11,711
18

9,127
18

Total intangible assets

11,7309,145Investments and other assets
Investment securities

575

4,287

Shares of subsidiaries and associates
Leasehold and guarantee deposits

104
63,826

104
63,835Long-term prepaid expenses
Deferred tax assets

12,48736,9808,919
34,742

Total current assets
Non-current assets

Intangible assets

Total investments and other assets

113,972

111,888

187,603

196,971

8,835,482

9,621,760

Current liabilities
Accounts payable - other188,562

205,449

Accrued expenses
Income taxes payable

1,383
415,164

2,877
364,794

Accrued consumption taxes
Deposits received

90,312
712,680

51,071
1,071,480

Provision for point card certificates
Other

29,194
10,51832,197
15,258

Total non-current assets
Total assets
Liabilities

Total current liabilities

1,447,815

1,743,129

Non-current liabilities
Asset retirement obligations

15,753

15,837

Total non-current liabilities

15,753

15,837

1,463,569

1,758,967

Total liabilities3

(Thousands of yen)
As of January 31, 2020

As of July 31, 2020

Net assets
Shareholders' equity
Share capital

381,903381,903

Capital surplus
Legal capital surplus

321,103

321,103

Other capital surplus

70,371

70,371

Total capital surpluses

391,474

391,474

Other retained earnings
Retained earnings brought forward

7,014,241

7,506,348

Total retained earnings

Retained earnings

7,014,241

7,506,348

Treasury shares(415,429)(415,429)

Total shareholders' equity

7,372,189

7,864,296

Deferred gains or losses on hedges(276)(1,836)

Total valuation and translation adjustments(276)(1,836)–332

7,371,913

7,862,792

8,835,482

9,621,760

Valuation and translation adjustments

Share acquisition rights
Total net assets
Total liabilities and net assets

4Non-consolidated statements of income (cumulative)(Thousands of yen)Six months ended

Six months endedJuly 31, 2019

July 31, 2020

Net sales
Cost of sales

2,695,218
480,240

2,964,629
544,942

Gross profit

2,214,977

2,419,686

Selling, general and administrative expenses

1,081,887

1,292,576

Operating profit

1,133,090

1,127,109

87
–

59
28

Non-operating income
Interest income
A lecture and a manuscript fee income
Other

10

Total non-operating income

89

87

Foreign exchange losses
Share issuance cost

2,275
–

39
180

Going public expenses
Miscellaneous loss

16,497
208––

Non-operating expenses

Total non-operating expenses

18,981219

1,114,198

1,126,977

Reversal of allowance for doubtful accounts
Gain on sales of non-current assets

4,046
36–
–

Gain on reversal of share acquisition rights
Gain on sales of investment securities

297
––
3,077

4,381

3,077

Profit before income taxes

1,118,579

1,130,055

Income taxes - current
Income taxes - deferred

251,346
92,292

343,527
2,926

Total income taxes

343,638

346,454

Profit774,940

783,600

Ordinary profit
Extraordinary income

Total extraordinary income5Non-consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

July 31, 2019

July 31, 2020

1,118,579

1,130,055

Depreciation
Increase (decrease) in allowance for doubtful accounts

7,242(4,407)

9,702–

Increase (decrease) in provision for point card certificatesInterest and dividend income(22,760)(87)

3,003(59)Foreign exchange losses (gains)
Decrease (increase) in trade receivables(1)
38,510(293)
33,540Decrease (increase) in inventories
Increase (decrease) in accounts payable - other–(9,479)(5,539)16,887

Increase (decrease) in deposits received
Other, net(210,041)(87,564)

358,799(38,993)

Subtotal

829,988

1,507,101

Interest and dividends received
Income taxes paid

87(579,452)

59(390,532)

Net cash provided by (used in) operating activities

250,623

1,116,628(2,299)(21,155)–(5,008)(4,000)(9)

10–(7,297)(25,164)

(49)
––
332

–

(291,493)

Net cash provided by (used in) financing activities(49)(291,160)

Effect of exchange rate change on cash and cash equivalents(186)

1,295Net increase (decrease) in cash and cash equivalents

243,090

801,598

Cash and cash equivalents at beginning of period

6,456,014

8,186,097

Cash and cash equivalents at end of period

6,699,104

8,987,695

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of investment securities
Payments of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury shares
Proceeds from issuance of share acquisition rights
Dividends paid

6