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, 2022
(Based on Japanese GAAP)
September 14, 2022
Company name:Enigmo Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

3665
URL https://enigmo.co.jp/
Representative Director, CEO

Inquiries:

Executive Officer,
Chief Director of Corporate OperationShokei SUDA
Yoichi KANEDA

TEL

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

September 14, 2022–

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, 2022 (from February 1, 2022 to July 31, 2022)(1) Non-consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Net sales
Six months ended July 31, 2022
Six months ended July 31, 2021

Millions of yen
3,215
3,583

Operating profit% Millions of yen
–607
20.9
1,369

Earnings per share

Profit% Millions of yen–
431
22.3
932

%
–
19.0

Diluted earnings per share

Yen
10.43
22.40

Six months ended July 31, 2022
Six months ended July 31, 2021

Ordinary profit% Millions of yen
–
618
21.5
1,377

Yen
–
22.38

(2) Non-consolidated financial position
Total assets
As of July 31, 2022
As of January 31, 2022

Net assets

Millions of yen
13,77913,676Equity ratio

Millions of yen
10,506
10,858

%
75.9
79.1

2. Cash dividends
Annual dividends per share

Year ended January 31, 2022
Year ending January 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
10.00

Yen
10.00

–––

Year ending January 31, 2023 (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
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

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, 2022

42,642,000 shares As of January 31, 2022

42,642,000 shares

Number of treasury shares at the end of the period
As of July 31, 2022

1,677,740 shares As of January 31, 2022

1,000,040 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended July 31, 2022

41,332,564 shares Six months ended July 31, 2021

241,641,960 shares

Quarterly non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of January 31, 2022

As of July 31, 2022

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

12,844,859
320,402

11,818,847
232,042

MerchandiseSupplies8,060
4,533

7,493
2,911

Advance payments to suppliers
Prepaid expenses

32,52542,40960,021
169,656

Accounts receivable - otherDeposits paid

58,232–

81,883376,271

Other

1,873

537

13,312,897

12,749,666

Property, plant and equipment
Buildings

27,88927,799Tools, furniture and fixtures

18,62017,707

Total property, plant and equipment

46,50945,506

SoftwareOther

11,71118

12,90318

Total intangible assets

11,73012,921

Investments and other assets
Investment securities

Total current assets
Non-current assets

Intangible assets

222,764

619,117

Shares of subsidiaries and associates
Leasehold and guarantee deposits

104
32,336285,896
38,627Long-term prepaid expenses
Deferred tax assets

3,327
46,431

2,305
25,100Total investments and other assets

304,964

971,045

Total non-current assets

363,2031,029,474

13,676,101

13,779,140

Current liabilities
Accounts payable - other

247,234

564,142

Accrued expenses
Income taxes payable

4,297
429,404

3,870
185,788

64,2352,008,973

14,4862,426,288

Provision for point card certificates
Provision for bonuses

44,151–

5,003
30,070Other

11,59335,5532,809,889

3,265,204

Asset retirement obligations

7,228

7,267

Total non-current liabilities

7,228

7,267

2,817,118

3,272,471

Total assets
Liabilities

Accrued consumption taxes
Deposits received

Total current liabilities
Non-current liabilities

Total liabilities3

(Thousands of yen)
As of January 31, 2022

As of July 31, 2022

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 surplus

391,474

391,474

Other retained earnings
Retained earnings brought forward

10,460,495

10,465,195

Total retained earnings

10,460,495

10,465,195(415,429)(789,983)

10,818,443

10,448,589

Valuation difference on available-for-sale securities

20

12,058

Total valuation and translation adjustments

20

12,058Retained earnings

Treasury shares
Total shareholders' equity
Valuation and translation adjustments

Share acquisition rights
Total net assets
Total liabilities and net assets

440,51946,021

10,858,982

10,506,669

13,676,101

13,779,140

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

Six months ended

July 31, 2021

July 31, 2022

Net sales
Cost of sales

3,583,765
687,301

3,215,669
645,842

Gross profit

2,896,463

2,569,826

Selling, general and administrative expenses

1,526,877

1,962,163

Operating profit

1,369,586

607,662Interest income
Foreign exchange gains

50
6,877

58
9,257

Gain on investments in investment partnerships
Subsidy income–1,4202,679
3,118455

95

8,803

15,209Commission expenses
Miscellaneous losses

–
621

749
4,053

Total non-operating expenses

621

4,802

1,377,768

618,070

Gain on sale of non-current assets–

24

Total extraordinary income–

24

Loss on sale of non-current assets
Loss on retirement of non-current assets

55
32,507––

Total extraordinary losses

32,562–

Profit before income taxes

1,345,205

618,094

Income taxes - current
Income taxes - deferred

393,137
19,371

170,814
16,017

Total income taxes

412,508

186,831

Profit932,696431,262

Non-operating income

OtherTotal non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

5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, 2021

July 31, 2022

1,345,205

618,094

15,287
1,667

6,929(10,883)

Increase (decrease) in provision for bonuses
Interest and dividend income–(50)

30,070(58)

Loss (gain) on investments in investment partnerships
Foreign exchange losses (gains)–(332)(2,679)(1,264)

Loss on retirement of property, plant and equipment
Decrease (increase) in trade receivables

32,50786,614–88,359Decrease (increase) in inventories
Increase (decrease) in accounts payable - other(2,960)
33,2882,189
316,908

Increase (decrease) in deposits received
Decrease (increase) in deposits paid

(35,550)–

417,315(376,271)

Increase (decrease) in Contract liabilities
Other, net–
(268,102)(8,667)(242,066)

Subtotal

1,207,574

837,974

Interest and dividends received
Income taxes paid

50(634,633)

58(404,341)

Net cash provided by (used in) operating activities

572,991

433,692(24,995)(3,692)

Payments for retirement of property, plant and equipment
Purchase of intangible assets(2,528)(5,000)–(3,425)

Payments for asset retirement obligations
Purchase of investment securities(13,800)(12,990)–(662,113)

Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits–
31,484(6,351)60

Depreciation
Increase (decrease) in provision for point card certificates

Cash flows from investing activities
Purchase of property, plant and equipment

Other, net

118

24(27,711)(675,496)––(374,554)
5,502

Dividends paid

(416,419)(416,419)

Net cash provided by (used in) financing activities(416,419)(785,471)

332

1,264

Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury shares
Proceeds from issuance of share acquisition rights

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

129,192(1,026,011)

Cash and cash equivalents at beginning of period

11,807,725

12,844,859

Cash and cash equivalents at end of period

11,936,918

11,818,847

6